Orange City Council
June 25, 2024

2. SUMMARY
The Fire Department is seeking approval for a blanket purchase order with Allstar Fire Equipment in the amount of $149,000 for the purchase of fire suppression turnout safety gear and equipment for Fiscal Year 2024-2025 through a cooperative purchasing agreement.

3. RECOMMENDED ACTION
Approve the purchase of fire suppression turnout safety gear and equipment from Allstar Fire Equipment in the amount of $149,000 for Fiscal Year 2024-2025.

4. FISCAL IMPACT
The total expenditure for this purchase is $149,000 and will be funded through:

Fire Facility Fees (560) Safety Equipment and Uniforms $95,000 General Fund (100) Safety Equipment and Uniforms $50,000 EMT Transport (125) Safety Equipment and Uniforms $ 4,000

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

6. DISCUSSION AND BACKGROUND
The Fire Department purchases the majority of its daily-use safety gear and equipment from a select group of three vendors, Allstar Fire Equipment (Allstar), LN Curtis & Sons, and LineGear Fire & Rescue Equipment based on each vendor’s product availability, manufacturing, distribution, and expertise.

These vendors are among the leaders in the fire supply industry, and in most cases, are the only authorized distributors for the equipment that Orange City Fire has selected to use on a routine basis.

Each of these vendors provides competitive pricing based on cooperative purchasing agreements.

Firefighter safety gear and equipment is ordered based on operational needs and national safety City of Orange Page 1 of 2 Printed on 6/20/2024
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Item #: 3.16. 6/25/2024 File #: 24-0384
Firefighter safety gear and equipment is ordered based on operational needs and national safety standards. Equipment must adhere to safety and life expectancy standards, providing the highest possible level of protection to Fire Department personnel. Safety equipment is often custom made to order based on individual sizing and department specifications. When safety equipment is exposed to hazardous chemicals or other fluids, it must be either properly decontaminated after use or potentially replaced. To maintain departmental specifications and safety standards, direct distribution vendors are necessary for Fire Department operations.

Fire Department employees are required to wear turnout safety gear while conducting operations in atmospheres that are immediately dangerous to life and health. The Fire Department must purchase turnout safety gear and equipment from a select group of vendors due to product availability, manufacturing, distribution, and expertise. Allstar provides the current and approved specifications for firefighter turnouts, helmets, self-contained breathing apparatus (SCBA) parts, firefighting gloves, wildland brush jackets, and wildland firefighting boots. Allstar is the Lion Group, Inc. factory authorized vendor for turnouts in the Southern California Region, as well as the only direct distributor for Scott Health and Safety, which manufactures the Fire Department’s current SCBA. Current replacement parts for SCBA are ordered directly through Allstar which is also the only direct distributor for Phenix Helmets, the Fire Department’s current structure fire helmet specification, and Elkhart Brass who manufacturers firefighting nozzles and hose couplings.

7. ATTACHMENTS
· 2024 Sourcewell Cooperative Agreement Contract 010424-LIO City of Orange Page 2 of 2 Printed on 6/20/2024
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010424-LIO
Rev. 3/2022 1
Solicitation Number: RFP #010424

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and LION First Responder PPE, Inc., 7200 Poe Avenue, Suite 400, Dayton, OH 45414 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Firefighting Personal Protective Equipment with Related Equipment Cleaning from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

EXPIRATION DATE AND EXTENSION. This Contract expires March 27, 2028, unless it is cancelled sooner pursuant to Article 22. This Contract allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier. Sourcewell retains the right to consider additional extensions beyond seven years as required under exceptional circumstances.

B. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES













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A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase. 












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A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
x Identify the applicable Sourcewell contract number;













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x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized 












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subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE













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A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:

x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted 












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price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.













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D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.













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b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.

2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.













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14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract. 












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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms 












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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000

5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.

Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is 












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primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS













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Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.

The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.

A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-

1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.

B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions. 












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C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).

Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.

F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared 












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ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.

G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).

H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.

I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.

K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.

L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in 












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guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.

N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.

O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.

P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.

R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.

Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.

S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216. 












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T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.

22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell LION First Responder PPE, Inc.

By: __________________________ By: __________________________ Jeremy Schwartz Mark T. Smith
Title: Chief Procurement Officer Title: President LION Americas Date: ________________________ Date: ________________________ 












 






  







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Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

Line
Item Category or Type Offered * Comments
7 Protective Clothing Yes
No
Turnouts and RescueWear. StationWear and Uniforms included in a seperate RFP. * 77 Helmets and related accessories Yes
No
Helmets and helmet accessories. *
78 Other related equipment and
accessories
Yes
No
Personal Protective Equipment that is demonstrated in the LION documentation included with this RFP. *
79 Firefighting apparel and station-wear Yes
No
StationWear and Uniforms included in a separate RFP. *
80 Extractors, laundry machines,
mechanical dryers, drying and
storing racks
Yes
No
LION does not offer these products.
*
81 Cleaning and decontamination
service and maintenance
Yes
No
LION TotalCare
82 Firefighting PPE cleaning supplies Yes
No
LION TotalCare
83 Cleaning equipment for other
firefighting equipment and tools
Yes
No
LION does not offer these products.
84 Services Related to the equipment
described above
Yes
No
LION TotalCare
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, of Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

Documents
Ensure your submission document(s) conforms to the following:

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - LION Discount Off List and List Price Documents.zip - Tuesday January 02, 2024 14:43:44 Financial Strength and Stability - Corporate Trade References 2023.pdf - Tuesday January 02, 2024 14:40:52 Marketing Plan/Samples - LION Capabilities and Core Beliefs.zip - Wednesday January 03, 2024 10:53:51 WMBE/MBE/SBE or Related Certificates - LION Certifications.zip - Tuesday January 02, 2024 14:49:28 Warranty Information - UserGuide_Warranty.pdf - Wednesday January 03, 2024 12:21:49 Standard Transaction Document Samples (optional)
Requested Exceptions - RFP010424 EXCEPTION.pdf - Tuesday January 02, 2024 15:02:14 Upload Additional Document - LION Additional Documentation.zip - Wednesday January 03, 2024 12:43:55 Bid Number: RFP 010424 Vendor Name: LION First Responder PPE 












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344
Agenda Item
City Council
Item #: 3.17. 6/25/2024 File #: 24-0379
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
A Resolution of the City Council of the City of Orange amending the Master Schedule of Fees and Charges to adjust Ground Ambulance Transportation Rates. Resolution No. 11556.

2. SUMMARY
The City's Emergency Ground Ambulance Transportation rates have historically aligned with those approved by the Orange County Board of Supervisors. The Orange County Health Care Agency has implemented the annual adjustment, effective July 1, using an approved methodology. Staff recommends City Council adopt the new rates for the City of Orange effective July 1, 2024.

3. RECOMMENDED ACTION
Adopt Resolution No. 11556. A Resolution of the City Council of the City of Orange amending the Master Schedule of Fees and Charges to adjust Emergency Medical Services and Ground Ambulance Transportation Rates.

4. FISCAL IMPACT
The ground ambulance transportation rate changes will result in an approximate increase of $550,000 in additional revenue to the Emergency Transport Program Fund (125).

5. STRATEGIC PLAN GOALS
Goal 2: Be a Fiscally Healthy Community
b: Analyze future fiscal needs and potential revenue opportunities.

6. DISCUSSION AND BACKGROUND
On December 20, 2022, the Orange County Board of Supervisors (BOS) passed Resolution No. 22- 163 which increased ground ambulance fees January 1, 2023, and adopted methodology for future rate changes effective July 1 of each year.

As with other Emergency Medical Services (EMS) providers within the county, the Orange Fire Department’s operating costs continue to rise, and we repeatedly experience a shortfall in reimbursements for emergency ground transportation. The Fire Department recommends updating our transport fees to offset rising operational costs and remain consistent with those of other City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™345
Item #: 3.17. 6/25/2024 File #: 24-0379
ambulance transportation providers throughout Orange County.

Type of Charge Basis for Charge Current Effective
07/01/24
Emergency Basic Life
Support (BLS) Base
Rate1
Applicable for urgent or Code 3
response at the request of a public
safety employee.
$1,876.24 $2,238.88
Emergency Advanced
Life Support (ALS)
Base Rate1
Applicable for urgent or Code 3
response at the request of a public
safety employee.
$1,876.24 $2,712.19
Mileage Per patient mile or fraction thereof. $ 19.51 $ 23.28 Standby time Per 30 minutes after the first 30
minutes.
$ 132.10 $ 157.63
1 Oxygen & medical supplies included in base rates
Based upon the revenue from emergency transports performed in Fiscal Year 2024-2023 and increased call volume since then, the proposed ground ambulance transportation rate changes should result in an increase of approximately $550,000 in additional yearly revenue to the Emergency Transport Program Fund (125), when adjusting for our payor mix.

7. ATTACHMENTS
· Resolution No. 11556
· Orange County EMS Policy/Procedures #714.00
City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™346
Agenda Item
City Council
Item #: 3.17. 6/25/2024 File #: 24-0379
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
A Resolution of the City Council of the City of Orange amending the Master Schedule of Fees and Charges to adjust Ground Ambulance Transportation Rates. Resolution No. 11556.

2. SUMMARY
The City's Emergency Ground Ambulance Transportation rates have historically aligned with those approved by the Orange County Board of Supervisors. The Orange County Health Care Agency has implemented the annual adjustment, effective July 1, using an approved methodology. Staff recommends City Council adopt the new rates for the City of Orange effective July 1, 2024.

3. RECOMMENDED ACTION
Adopt Resolution No. 11556. A Resolution of the City Council of the City of Orange amending the Master Schedule of Fees and Charges to adjust Emergency Medical Services and Ground Ambulance Transportation Rates.

4. FISCAL IMPACT
The ground ambulance transportation rate changes will result in an approximate increase of $550,000 in additional revenue to the Emergency Transport Program Fund (125).

5. STRATEGIC PLAN GOALS
Goal 2: Be a Fiscally Healthy Community
b: Analyze future fiscal needs and potential revenue opportunities.

6. DISCUSSION AND BACKGROUND
On December 20, 2022, the Orange County Board of Supervisors (BOS) passed Resolution No. 22- 163 which increased ground ambulance fees January 1, 2023, and adopted methodology for future rate changes effective July 1 of each year.

As with other Emergency Medical Services (EMS) providers within the county, the Orange Fire Department’s operating costs continue to rise, and we repeatedly experience a shortfall in reimbursements for emergency ground transportation. The Fire Department recommends updating our transport fees to offset rising operational costs and remain consistent with those of other City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™347
Item #: 3.17. 6/25/2024 File #: 24-0379
ambulance transportation providers throughout Orange County.

Type of Charge Basis for Charge Current Effective
07/01/24
Emergency Basic Life
Support (BLS) Base
Rate1
Applicable for urgent or Code 3
response at the request of a public
safety employee.
$1,876.24 $2,238.88
Emergency Advanced
Life Support (ALS)
Base Rate1
Applicable for urgent or Code 3
response at the request of a public
safety employee.
$1,876.24 $2,712.19
Mileage Per patient mile or fraction thereof. $ 19.51 $ 23.28 Standby time Per 30 minutes after the first 30
minutes.
$ 132.10 $ 157.63
1 Oxygen & medical supplies included in base rates
Based upon the revenue from emergency transports performed in Fiscal Year 2024-2023 and increased call volume since then, the proposed ground ambulance transportation rate changes should result in an increase of approximately $550,000 in additional yearly revenue to the Emergency Transport Program Fund (125), when adjusting for our payor mix.

7. ATTACHMENTS
· Resolution No. 11556
· Orange County EMS Policy/Procedures #714.00
City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™348
RESOLUTION NO. 11556

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF ORANGE AMENDING

THE MASTER SCHEDULE OF FEES AND

CHARGES TO ADJUST EMERGENCY

MEDICAL SERVICES AND GROUND
AMBULANCE TRANSPORTATION RATES.

WHEREAS, pursuant to Chapter 3.10 of the Orange Municipal Code, the City Council has established and maintained a Master Schedule of Fees and Charges, consisting of fees and charges for services provided by the City to persons using such services; and WHEREAS, in accordance with Chapter 3.10 of the Orange Municipal Code, the Master Schedule of Fees and Charges has been periodically amended and revised from time to time by the City Council; the last time being July 1, 2022 when Resolution No. 11400 was adopted by the City Council; and
WHEREAS, the City Council hereby finds and determines that the Master Schedule of Fees and Charges should be amended, in part, in order to reflect the true cost of services provided by the City in connection with emergency medical services and ground ambulance transportation services and to conform to the same rate structure adopted by the Orange County Health Care Agency.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

1. The Master Schedule of Fees and Charges is hereby amended and Attachment “A” to this Resolution is hereby adopted, modifying the Master Schedule of Fees and Charges to provide for the inclusion of the various of fees for emergency ground ambulance transportation services chargeable by the City of Orange, as more particularly described in Attachment “A”.

2. The City Council finds that the fees set forth in Attachment “A” do not exceed the reasonable cost of services provided by the City in connection with the provision of emergency ground ambulance transportation services.

3. The fees listed in Attachment “A” shall be effective July 1, 2024.

4. If the fees set forth in this Resolution or the application thereof to any person or circumstance is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect any other fee, charge, or rate, or application thereof, which can be implemented without the invalid fee, charge, or rate, or application thereof, and to this end the fees, charges and rates of this Resolution are declared to be severable.
349
2 ADOPTED this ____ day of ____________________, 2024
Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:

Mike 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 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 , 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
350
ATTACHMENT “A”
[Behind this sheet.]
351
Attachment A
AMEND THE FOLLOWING:

TYPE OF CHARGE BASIS FOR CHARGE EFFECTIVE
07/01/24

EMERGENCY BASIC

LIFE SUPPORT (BLS)

BASE RATE

APPLICABLE FOR URGENT OR
CODE 3 RESPONSE AT THE

REQUEST OF A PUBLIC SAFETY
EMPLOYEE.
$2,238.88

EMERGENCY

ADVANCED LIFE

SUPPORT (ALS) BASE
RATE

APPLICABLE FOR URGENT OR
CODE 3 RESPONSE AT THE

REQUEST OF A PUBLIC SAFETY
EMPLOYEE.
$2,712.19

MILEAGE PER PATIENT MILE OR FRACTION
THEREOF.
$ 23.28
STANDBY TIME PER 30 MINUTES AFTER THE
FIRST 30 MINUTES.
$ 157.63
352
353
Agenda Item
City Council
Item #: 3.18. 6/25/2024 File #: 24-0101
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/Director of City Clerk Services

1. SUBJECT
City of Orange Conflict of Interest Code amendment. Resolution No 11558.

2. SUMMARY
Adoption of Resolution No. 11558 satisfies the State mandated biennial update to the City’s Conflict of Interest Code and amends the previous Code adopted by Resolution No. 11415.

3. RECOMMENDED ACTION
Adopt Resolution No. 11558. A Resolution of the City Council of the City of Orange adopting an amended Conflict of Interest Code pursuant to the Political Reform Act of 1974.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
This action does not correlate to any of the adopted strategic plan goals, however Section 87306 of the California Government Code requires biennial review of the City’s Conflict of Interest Code.

6. DISCUSSION AND BACKGROUND
Pursuant to the Political Reform Act, the City conducted a thorough review of its Conflict of Interest Code and determined that amendments are necessary. At it’s March 12, 2024 meeting, the City Council directed staff to file the Local Agency Biennial Review Notice and, if necessary, prepare a resolution amending the Code for City Council approval.

Since the last update, new position titles have been created or eliminated and some existing positions have had title changes. Exhibit A to Resolution No. 11558 reflects the updates to the list of designated positions and their assigned disclosure requirements. The attached legislative (redlined) version highlights the proposed amendments to the Code.

7. ATTACHMENTS
· Resolution No. 11558 with Exhibit A
City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™354
Item #: 3.18. 6/25/2024 File #: 24-0101
· Legislative version of Exhibit A
· Notice of Intention to amend the City’s Conflict of Interest Code City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™355
Agenda Item
City Council
Item #: 3.18. 6/25/2024 File #: 24-0101
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/Director of City Clerk Services

1. SUBJECT
City of Orange Conflict of Interest Code amendment. Resolution No 11558.

2. SUMMARY
Adoption of Resolution No. 11558 satisfies the State mandated biennial update to the City’s Conflict of Interest Code and amends the previous Code adopted by Resolution No. 11415.

3. RECOMMENDED ACTION
Adopt Resolution No. 11558. A Resolution of the City Council of the City of Orange adopting an amended Conflict of Interest Code pursuant to the Political Reform Act of 1974.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
This action does not correlate to any of the adopted strategic plan goals, however Section 87306 of the California Government Code requires biennial review of the City’s Conflict of Interest Code.

6. DISCUSSION AND BACKGROUND
Pursuant to the Political Reform Act, the City conducted a thorough review of its Conflict of Interest Code and determined that amendments are necessary. At it’s March 12, 2024 meeting, the City Council directed staff to file the Local Agency Biennial Review Notice and, if necessary, prepare a resolution amending the Code for City Council approval.

Since the last update, new position titles have been created or eliminated and some existing positions have had title changes. Exhibit A to Resolution No. 11558 reflects the updates to the list of designated positions and their assigned disclosure requirements. The attached legislative (redlined) version highlights the proposed amendments to the Code.

7. ATTACHMENTS
· Resolution No. 11558 with Exhibit A
City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™356
Item #: 3.18. 6/25/2024 File #: 24-0101
· Legislative version of Exhibit A
· Notice of Intention to amend the City’s Conflict of Interest Code City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™357
RESOLUTION NO. 11558

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE ADOPTING AN AMENDED

CONFLICT OF INTEREST CODE PURSUANT TO
THE POLITICAL REFORM ACT OF 1974
WHEREAS, the Political Reform Act (Government Code Section 81000 et seq.) requires the City to adopt and promulgate a conflict of interest code; and WHEREAS, the City Council adopted a Conflict of Interest Code, which was amended by Resolution No. 11415 on October 11, 2022; and
WHEREAS, the Political Reform Act, in Government Code Section 87306, requires the City to review its Conflict of Interest Code biennially to determine whether amendments are required; and
WHEREAS, on March 12, 2024, the City Council directed staff to review the City’s Conflict of Interest Code; and
WHEREAS, the City has determined that due to changes in City employee positions and titles, the City's Conflict of Interest Code requires revision; and WHEREAS, on July 23, 2024, the City Council received and filed the 2024 Local Agency Biennial Notice and directed staff to promulgate the necessary amendments to the City’s Conflict of Interest Code.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

SECTION 1. The City Council adopts by reference the model conflict of interest code promulgated by the Fair Political Practices Commission as set forth in Section 18730 of the Title 2 of the California Code of Regulations, which, together with the City’s List of Designated Positions and Disclosure Categories, collectively constitute the City of Orange Conflict of Interest Code. A copy of said Code is attached hereto as Exhibit A and shall be on file with the City Clerk and available to the public for inspection and copying during regular business hours.

SECTION 2. The amended Conflict of Interest Code shall become effective at the time of the adoption and approval of this Resolution.

SECTION 3. Any prior Resolution adopting a Conflict of Interest Code for the City of Orange, including Resolution No. 11415, is hereby rescinded upon the effective date of this Resolution.
358
2 ADOPTED this ____ day of ____________________, 2024
Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:

Mike 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 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 , 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
Attachment: Exhibit A
359

CONFLICT OF INTEREST CODE OF THE

CITY OF ORANGE
The Political Reform Act (Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure categories, shall constitute the conflict of interest code of the City of Orange (“City”).

All officials and designated positions required to submit a statement of economic interests shall file their statements with the City Clerk as the City’s Filing Officer. The City Clerk shall make and retain a copy of all statements filed by officials listed in Government Code Section 87200, and forward the originals of such statements to the Fair Political Practices Commission. The City Clerk shall retain the originals of the statements filed by all other officials and designated positions and will make all retained statements available for public inspection and reproduction during regular business hours (Gov. Code § 81008). 360

APPENDIX

DESIGNATION OF POSITIONS AND

ESTABLISHMENT OF DISCLOSURE CATEGORIES
PART A

DESIGNATED POSITIONS
The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all other City Officials who manage public investments as defined by 2 California Code of Regulations § 18700.3(b), are NOT subject to the City’s Code, but must file disclosure statements under Government Code Section 87200 et seq. [Regs. § 18730(b)(3)]

OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
It has been determined that the positions listed below are other City Officials who manage public investments.1 These positions are listed here for informational purposes only.

Administrative Services Director
Assistant City Manager
Assistant Finance Director
Finance Director
1 Individuals holding one of the above listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by §87200.
361

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
City Attorney
Assistant City Attorney I 1, 2, 3, 4
Assistant City Attorney II 1, 2, 3, 4
Risk Manager 1, 2, 3, 4
Senior Assistant City Attorney 1, 2, 3, 4
City Clerk
City Clerk 1, 2, 3, 4
Director of City Clerk Services 1, 2, 3, 4
Deputy City Clerk 1, 2, 3, 4
City Manager
Assistant City Manager 1, 2, 3, 4
Assistant to the City Manager 1, 2, 3, 4
Deputy City Manager 1, 2, 3, 4
Economic Development Manager 1, 2, 3, 4
Emergency Manager 1, 2, 3, 4
Senior Economic Development Project Manager 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Senior Assistant to the City Manager 1, 2, 3, 4
Public Information Officer
Community Development
Administrative Analyst I & II 1, 2, 3, 4
Assistant Community Development Director 1, 2, 3, 4
Building Inspection Supervisor 1, 2, 3, 4
Building and Safety Manager 1, 2, 3, 4
Code Compliance Officer 1, 2, 3, 4
Code Compliance Supervisor 1, 2, 3, 4
Combo Building Inspector 1, 2, 3, 4
Community Development Director 1, 2, 3, 4
Environmental Compliance Specialist 2, 3, 4
IT Project Manager 2, 3, 4
Planning Manager 1, 2, 3, 4
Principal Planner 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Senior Code Compliance Officer 1, 2, 3, 4
Senior Combo Building Inspector 1, 2, 3, 4
Senior Housing Manager 1, 2, 3, 4
Senior Plan Check Engineer 1, 2, 3, 4
Senior Planner 1, 2, 3, 4
Community Services
Administrative Analyst II 1, 2, 3, 4
Administrative Manager 1, 2, 3, 4
Assistant Director 1, 2, 3, 4
Community Services Director 1, 2, 3, 4
Parks and Facilities Manager 1, 2, 3, 4
Recreation Services Manager 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
362

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
Finance
Accounting Manager 1, 2, 3, 4
Assistant Finance Director 1, 2, 3, 4
Budget Manager 1, 2, 3, 4
Finance Director 1, 2, 3, 4
Finance Manager 1, 2, 3, 4
Purchasing Officer 1, 2, 3, 4
Senior Buyer 1, 2, 3, 4
Fire
Battalion Chief 1, 2, 3, 4
Deputy Chief 1, 2, 3, 4
EMS Manager 1, 2, 3, 4
Fire Chief 1, 2, 3, 4
Staff Captain 1, 2, 3, 4
Information Technology
Manager 1, 2, 3, 4
IT Project Manager 1, 2, 3, 4
Library
Assistant Library Services Director 1, 2, 3, 4
Library Manager I & II 1, 2, 3, 4
Library Services Director 1, 2, 3, 4
Library Tech/Support Services Manager 1, 2, 3, 4
Senior Library Manager 1, 2, 3, 4
Human Resources
Assistant Human Resources Director 1, 2, 3, 4
Human Resources Director 1, 2, 3, 4
Human Resources Manager 1, 2, 3, 4
Senior Human Resources Analyst 1, 2, 3, 4
Police
Administrative Analyst I & II 1, 2, 3, 4
Captain 1, 2, 3, 4
Lieutenant 1, 2, 3, 4
Police Chief 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Public Works
Administrative Manager 1, 2, 3, 4
Assistant Field Services Manager 1, 2, 3, 4
Assistant Public Works Director 1, 2, 3, 4
Assistant Water Manager 1, 2, 3, 4
City Traffic Engineer 1, 2, 3, 4
Construction Inspection Supervisor 3, 4
Construction Inspector I & II 3, 4
Contract Administrator 1, 2, 3, 4
Deputy Public Works Director 1, 2, 3, 4
Environmental Program Manager 1, 2, 3, 4
Environmental Scientist 2, 3, 4
Equipment Maintenance Superintendent 2, 3, 4
363

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
Field Services Manager 1, 2, 3, 4
Principal Civil Engineer 3, 4
Public Works Director 1, 2, 3, 4
Public Works Administrator 1, 2, 3, 4
Senior Civil Engineer 3, 4
Traffic Operations Superintendent 1, 2, 3, 4
Water Manager 1, 2, 3, 4
Orange City Public Facilities Financing Authority
Member 1, 2, 3, 4
Members of Boards, Commissions, and Committees
Audit Advisory Committee 1, 2, 3, 4
Community Development Block Grant Program Committee 1, 2, 3, 4 Design Review Committee 1, 2, 3, 4
Investment Advisory Committee 1, 2, 3, 4
Orange Public Library Board of Trustees1 1, 2, 3, 4
Park Planning & Community Events Commission 1, 2, 3, 4
Santiago Creek Commission 1, 2, 3, 4
Traffic Commission 1, 2, 3, 4
1All interests in real property as set forth in Category 1, but only investments, sources of income and business positions which may provide services or materials of the type utilized by the library.

Consultants and New Positions2
2Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the Code subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements.

The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. The disclosure requirements for new positions shall be categorized by the City Manager based on the duties of the position.
1, 2, 3, 4
364
PART B

DISCLOSURE CATEGORIES
Disclosure categories pertain to investments, real property, business positions and sources of income, including loans, gifts, and travel payments from sources located in or doing business within the jurisdiction of the City of Orange (City).

Category 1
Interests in real property within the boundaries of the City or within two miles of the boundaries of the Cityin which the designated employee, spouse and dependent children have an aggregate interest of $1,000 or more in value. It includes interests in real property held by a business entity or trust in which the employee, spouse and dependent children have an aggregate interest of 10% or more.

Category 2
Investments held by the designated employee, spouse and dependent children, with an aggregate value of more than $1,000, in business entities having real property in the City or doing business, planning to do business, or having done business in the City within the past two years. It includes investments held by a business entity or trust in which the filer, spouse and dependent children have an aggregate interest of 10% or greater.

Category 3
Income (including loans) aggregating $250 or more if the source is located within or doing business within the City. It includes gifts aggregating $50 or more whether or not the source (donor) is in the City. It includes sources of income to the designated employee, to the designated employee's community property interest in the income of a spouse, and to the employee's pro rata share of any income of a trust in which the employee, spouse or dependent children have individually or collectively an aggregate interest of 10% or greater.

Category 4
Employment and management positions in business entities. 365

CONFLICT OF INTEREST CODE OF THE

CITY OF ORANGE
The Political Reform Act (Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix, designating positions and establishing disclosure categories, shall constitute the conflict of interest code of the City of Orange (“City”).

All officials and designated positions required to submit a statement of economic interests shall file their statements with the City Clerk as the City’s Filing Officer. The City Clerk shall make and retain a copy of all statements filed by officials listed in Government Code Section 87200, and forward the originals of such statements to the Fair Political Practices Commission. The City Clerk shall retain the originals of the statements filed by all other officials and designated positions and will make all retained statements available for public inspection and reproduction during regular business hours (Gov. Code § 81008). 366

APPENDIX

DESIGNATION OF POSITIONS AND

ESTABLISHMENT OF DISCLOSURE CATEGORIES
PART A

DESIGNATED POSITIONS
The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all other City Officials who manage public investments as defined by 2 California Code of Regulations § 18700.3(b), are NOT subject to the City’s Code, but must file disclosure statements under Government Code Section 87200 et seq. [Regs. § 18730(b)(3)]

OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
It has been determined that the positions listed below are other City Officials who manage public investments.1 These positions are listed here for informational purposes only.

Administrative Services Director
Assistant City Manager
Assistant Finance Director
Finance Director
1 Individuals holding one of the above listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by §87200.
367

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
City Attorney
Assistant City Attorney I 1, 2, 3, 4
Assistant City Attorney II 1, 2, 3, 4
Risk Manager 1, 2, 3, 4
Senior Assistant City Attorney 1, 2, 3, 4
City Clerk
City Clerk 1, 2, 3, 4
Director of City Clerk Services 1, 2, 3, 4
Deputy City Clerk 1, 2, 3, 4
City Manager
Assistant City Manager 1, 2, 3, 4
Assistant to the City ManagerAssistant to the City Manager 1, 2, 3, 4 1, 2, 3, 4 Deputy City Manager 1, 2, 3, 4
Economic Development Manager 1, 2, 3, 4
Emergency Manager 1, 2, 3, 4
Internal Audit Manager 1, 2, 3, 4
Senior Economic Development Project Manager 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Senior Assistant to the City Manager 1, 2, 3, 4
Public Information Officer
Community Development
Administrative Analyst I & II 1, 2, 3, 4
Assistant Community Development Director 1, 2, 3, 4
Building Inspection Supervisor 1, 2, 3, 4
Building and Safety Manager 1, 2, 3, 4
Code Compliance Officer 1, 2, 3, 4
Code Compliance Supervisor 1, 2, 3, 4
Combo Building Inspector 1, 2, 3, 4
Community Development Director 1, 2, 3, 4
Environmental Compliance Specialist 2, 3, 4
IT Project Manager 2, 3, 4
Planning Manager 1, 2, 3, 4
Principal Planner 1, 2, 3, 4
Public Affairs and Information Manager 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Senior Code Compliance Officer 1, 2, 3, 4
Senior Combo Building Inspector 1, 2, 3, 4
Senior Housing Manager 1, 2, 3, 4
Senior Plan Check Engineer 1, 2, 3, 4
Senior Planner 1, 2, 3, 4
Community Services
Administrative Analyst II 1, 2, 3, 4
Administrative Manager 1, 2, 3, 4
Assistant Director 1, 2, 3, 4
Community Services Director 1, 2, 3, 4
368

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
Parks and Facilities Manager 1, 2, 3, 4
Recreation Services Manager 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Finance
Accounting Manager 1, 2, 3, 4
Assistant Finance Director 1, 2, 3, 4
Budget Manager 1, 2, 3, 4
Buyer 1, 2, 3, 4
Finance Coordinator – Business License 1, 2, 3, 4
Finance Director 1, 2, 3, 4
Finance Manager 1, 2, 3, 4
Investment/Revenue Officer 1, 2, 3, 4
Lead Business License Inspector 1, 2, 3, 4
Purchasing Officer 1, 2, 3, 4
Senior Buyer 1, 2, 3, 4
Fire
Battalion Chief 1, 2, 3, 4
Deputy Chief 1, 2, 3, 4
EMS Manager 1, 2, 3, 4
Fire Chief 1, 2, 3, 4
Staff Captain 1, 2, 3, 4
Information Technology
Manager 1, 2, 3, 4
IT Project Manager 1, 2, 3, 4
1, 2, 3, 4
Library
Assistant Library Services Director 1, 2, 3, 4
Library Manager I & II 1, 2, 3, 4
Library Services Director 1, 2, 3, 4
Library Tech/Support Services Manager 1, 2, 3, 4
Senior Library Manager 1, 2, 3, 4
Human Resources
Assistant Human Resources Director 1, 2, 3, 4
Human Resources Director 1, 2, 3, 4
Human Resources Manager 1, 2, 3, 4
Senior Human Resources Analyst 1, 2, 3, 4
Police
Administrative Analyst I & II 1, 2, 3, 4
Captain 1, 2, 3, 4
Emergency Manager 1, 2, 3, 4
Lieutenant 1, 2, 3, 4
Police Chief 1, 2, 3, 4
Senior Administrative Analyst 1, 2, 3, 4
Public Works
Administrative Manager 1, 2, 3, 4
369

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
Assistant Field Services Manager 1, 2, 3, 4
Assistant Public Works Director 1, 2, 3, 4
Assistant Water Manager 1, 2, 3, 4
Building Inspection Supervisor 1, 2, 3, 4
Chief Building Official 1, 2, 3, 4
City Traffic Engineer 1, 2, 3, 4
Combination Building Inspector 1, 2, 3, 4
Construction Inspection Supervisor 3, 4
Construction Inspector I & II 3, 4
Contract Administrator 1, 2, 3, 4
Deputy Public Works Director 1, 2, 3, 4
Environmental Program Manager 1, 2, 3, 4
Environmental Scientist 2, 3, 4
Equipment Maintenance Superintendent 2, 3, 4
Field Services Manager 1, 2, 3, 4
Plan Check Engineer 1, 2, 3, 4
Principal Civil Engineer 3, 4
Public Works Director 1, 2, 3, 4
Public Works Administrator 1, 2, 3, 4
Real Property Agent 1, 2, 3, 4
Senior Civil Engineer 3, 4
Senior Plan Check Engineer 1, 2, 3, 4
Traffic Operations Superintendent 1, 2, 3, 4
Water Manager 1, 2, 3, 4
Orange City Public Facilities Financing Authority
Member 1, 2, 3, 4
Members of Boards, Commissions, and Committees
Audit Advisory CommitteeCommunity Development Block
Grant Program Committee
1, 2, 3, 4 1, 2, 3, 4
Community Development Block Grant Program Committee 1, 2, 3, 4 Design Review Committee 1, 2, 3, 4
Investment and Audit Committee Investment Advisory
Committee
1, 2, 3, 41, 2, 3, 4
Orange Public Library Board of Trustees1 1, 2, 3, 4
Park Planning & Community Events Commission 1, 2, 3, 4
Santiago Creek Commission 1, 2, 3, 4
Traffic Commission 1, 2, 3, 4
1All interests in real property as set forth in Category 1, but only investments, sources of income and business positions which may provide services or materials of the type utilized by the library.

Consultants and New Positions2
2Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the Code subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a 1, 2, 3, 4
370

DESIGNATED POSITIONS DISCLOSURE

CATEGORIES
range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements.

The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. The disclosure requirements for new positions shall be categorized by the City Manager based on the duties of the position.

PART B

DISCLOSURE CATEGORIES
Disclosure categories pertain to investments, real property, business positions and sources of income, including loans, gifts, and travel payments from sources located in or doing business within the jurisdiction of the City of Orange (City).

Category 1
Interests in real property within the boundaries of the City or within two miles of the boundaries of the Cityin which the designated employee, spouse and dependent children have an aggregate interest of $1,000 or more in value. It includes interests in real property held by a business entity or trust in which the employee, spouse and dependent children have an aggregate interest of 10% or more.

Category 2
Investments held by the designated employee, spouse and dependent children, with an aggregate value of more than $1,000, in business entities having real property in the City or doing business, planning to do business, or having done business in the City within the past two years. It includes investments held by a business entity or trust in which the filer, spouse and dependent children have an aggregate interest of 10% or greater.

Category 3
Income (including loans) aggregating $250 or more if the source is located within or doing business within the City. It includes gifts aggregating $50 or more whether or not the source (donor) is in the City. It includes sources of income to the designated employee, to the designated employee's community property interest in the income of a spouse, and to the employee's pro rata share of any income of a trust in which the employee, spouse or dependent children have individually or collectively an aggregate interest of 10% or greater.

Category 4
Employment and management positions in business entities. 371

NOTICE OF INTENTION

TO AMEND THE

CONFLICT OF INTEREST CODE

OF THE CITY OF ORANGE
NOTICE IS HEREBY GIVEN that the City of Orange intends to amend its Conflict of Interest Code (the “Code”) pursuant to Government Code Section 87306.

The Code designates those positions which are subject to the disclosure and disqualification requirements of the City’s Code. The City’s proposed amendment identifies City officials who manage public investments that must file disclosure statements under Government Code Section 87200, adds new positions which must be designated, changes titles of some existing positions, and eliminates positions that have been abolished.

The proposed amended Code will be considered by the City Council on June 25, 2024, at 6:00 p.m. in the Council Chamber, 300 E. Chapman Avenue, Orange.

Any interested person may be present and comment at the public meeting or may submit written comments concerning the proposed amendment. Any comments or inquiries should be directed to the attention of Pamela Coleman, City Clerk, City of Orange, 300 E. Chapman Avenue, Orange, California 92866, (714) 744-5500. Written comments must be submitted no later than June 25, 2024, at 3:00 p.m. Please see the June 25, 2024, City Council agenda for further details.

The proposed amended Code may be reviewed at, and copies obtained from, the office of the City Clerk.
372
Agenda Item
City Council
Item #: 3.19. 6/25/2024 File #: 24-0402
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Annual review and approval of the Statement of Investment Policy for Fiscal Year 2024-25.

Resolution No. 11563.

2. SUMMARY
Staff and Chandler Asset Management, the City’s investment management firm, conducted a review of the City’s Investment Policy and updated it with current trends and laws governing public sector investments. Chandler provided recommendations to further the best interest of the City’s investment strategy.

3. RECOMMENDED ACTION
Adopt Resolution No. 11563. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11469 and approving and adopting a Statement of Investment Policy for Fiscal Year 2024-25.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities.

6. DISCUSSION AND BACKGROUND
The California Government Code Section 53646 requires that the Statement of Investment Policy (SIP) be reviewed and approved by the legislative body on an annual basis. The City’s Investment Policy is one of the most conservative policies in the State and it is proposed that the very conservative features of the policy be maintained.

In prior years, the SIP underwent review and approval by the Investment and Audit Committee prior to City Council approval. However, the committee was dissolved and subsequently reconstituted as two separate committees in March 2024. The newly established Investment Advisory Committee (IAC) remains unfilled. As a result, the SIP has not yet undergone review or approval by the IAC. In collaboration with Chandler Asset Management (Chandler), staff reviewed the City’s Investment Policy to capture changes to the California Government Code (Code). The SIP is up to date with the Code. The following proposed changes are to refine and update descriptions and language in the policy. Staff also reviewed the City’s Policy to ensure the inclusion of the latest best practices from City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™373
Item #: 3.19. 6/25/2024 File #: 24-0402
policy. Staff also reviewed the City’s Policy to ensure the inclusion of the latest best practices from recognized industry groups such as Government Finance Offices Association (GFOA), California Society of Municipal Finance Officers (CSMFO), California Municipal Treasurers Association (CMTA), and the Association of Public Treasurers of the United States and Canada (APTUSC).

Staff and Chandler reviewed the SIP and recommends the following updates:
· Section 2.3 Investment Oversight Committee - recommendation updates language to reflect the established Investment Advisory Committee.
· Section 3.1 Investments Authorized - recommendation refines the description of Federal Agency securities and differentiates between Negotiable Certificates of Deposit and Federally Insured Time Deposits.
· Section 3.2(c) Prohibited Investment Vehicles and Practices - recommendation removes U.S.

Treasury zero coupon bonds from Prohibited Investments. The language prohibiting U.S.

Treasury zero coupon bonds could be unintentionally interpreted as prohibiting United States Treasury Bills, as United States Treasury Bills do not have coupons. · Section 3.3(a.3) Mitigating Risk in the Portfolio - recommendation refines the guideline language to monitor credit risk of the portfolio resulting from credit downgrades of securities.

7. ATTACHMENTS
· Resolution No. 11563
· FY 24-25 Statement of Investment Policy
· FY 23-24 Statement of Investment Policy - Redline
City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™374
Agenda Item
City Council
Item #: 3.19. 6/25/2024 File #: 24-0402
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Annual review and approval of the Statement of Investment Policy for Fiscal Year 2024-25.

Resolution No. 11563.

2. SUMMARY
Staff and Chandler Asset Management, the City’s investment management firm, conducted a review of the City’s Investment Policy and updated it with current trends and laws governing public sector investments. Chandler provided recommendations to further the best interest of the City’s investment strategy.

3. RECOMMENDED ACTION
Adopt Resolution No. 11563. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11469 and approving and adopting a Statement of Investment Policy for Fiscal Year 2024-25.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities.

6. DISCUSSION AND BACKGROUND
The California Government Code Section 53646 requires that the Statement of Investment Policy (SIP) be reviewed and approved by the legislative body on an annual basis. The City’s Investment Policy is one of the most conservative policies in the State and it is proposed that the very conservative features of the policy be maintained.

In prior years, the SIP underwent review and approval by the Investment and Audit Committee prior to City Council approval. However, the committee was dissolved and subsequently reconstituted as two separate committees in March 2024. The newly established Investment Advisory Committee (IAC) remains unfilled. As a result, the SIP has not yet undergone review or approval by the IAC. In collaboration with Chandler Asset Management (Chandler), staff reviewed the City’s Investment Policy to capture changes to the California Government Code (Code). The SIP is up to date with the Code. The following proposed changes are to refine and update descriptions and language in the policy. Staff also reviewed the City’s Policy to ensure the inclusion of the latest best practices from City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™375
Item #: 3.19. 6/25/2024 File #: 24-0402
policy. Staff also reviewed the City’s Policy to ensure the inclusion of the latest best practices from recognized industry groups such as Government Finance Offices Association (GFOA), California Society of Municipal Finance Officers (CSMFO), California Municipal Treasurers Association (CMTA), and the Association of Public Treasurers of the United States and Canada (APTUSC).

Staff and Chandler reviewed the SIP and recommends the following updates:
· Section 2.3 Investment Oversight Committee - recommendation updates language to reflect the established Investment Advisory Committee.
· Section 3.1 Investments Authorized - recommendation refines the description of Federal Agency securities and differentiates between Negotiable Certificates of Deposit and Federally Insured Time Deposits.
· Section 3.2(c) Prohibited Investment Vehicles and Practices - recommendation removes U.S.

Treasury zero coupon bonds from Prohibited Investments. The language prohibiting U.S.

Treasury zero coupon bonds could be unintentionally interpreted as prohibiting United States Treasury Bills, as United States Treasury Bills do not have coupons. · Section 3.3(a.3) Mitigating Risk in the Portfolio - recommendation refines the guideline language to monitor credit risk of the portfolio resulting from credit downgrades of securities.

7. ATTACHMENTS
· Resolution No. 11563
· FY 24-25 Statement of Investment Policy
· FY 23-24 Statement of Investment Policy - Redline
City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™376
RESOLUTION NO. 11563

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE RESCINDING
RESOLUTION NO. 11469 AND APPROVING AND

ADOPTING A STATEMENT OF INVESTMENT
POLICY FOR FISCAL YEAR 2024-25
WHEREAS, California Government Code Sections 53600 et seq. set forth detailed provisions regarding permitted and prohibited investments by cities and accountability therefor; and
WHEREAS, the City Council adopted Resolution No. 11469 on June 27, 2023, adopting the City’s Statement of Investment Policy for Fiscal Year 2023-24 (herein referred to as the “FY 2023-24 SIP”); and
WHEREAS, the FY 2023-24 SIP requires that the City Council annually review its Statement of Investment Policy and adopt annually within 120 days following the end of each fiscal year by a resolution and vote of the City Council at a public meeting; and WHEREAS, the Finance Director has reviewed the proposed Statement of Investment Policy for Fiscal Year 2024-25 (herein referred to as the “FY 2024-25 SIP”) in the form attached to this Resolution, and has recommended that the City Council adopt the FY 2024-25 SIP.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

1. That Resolution No. 11469 is hereby rescinded.

2. That the FY 2024-25 SIP, in the form attached, is the City’s Statement of Investment Policy for Fiscal Year 2024-25 and is duly adopted in accordance with State law and Chapter 2.49 of Title 2 of the Orange Municipal Code.

ADOPTED this ____ day of ____________________, 2024
Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
377
2 APPROVED AS TO FORM:

Mike 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 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 , 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
Attachment: FY 2024-25 SIP
378

Dated: June 25, 2024

CITY OF ORANGE

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2024-25

1.0 INVESTMENT POLICY OVERVIEW

1.1 POLICY
It is the policy of the City of Orange (“City”) to invest public funds in a manner which will provide foremost for the safety of principal while meeting the short- and long-term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

Annually, in accordance with California Government Code (“CGC”) Section 53646, the Treasurer will render to the City Council a Statement of Investment Policy for consideration and approval at a public meeting. Any investment currently held at that time that does not meet the guidelines of this policy, as changed from time to time by the City Council, shall be exempt from the requirements of this policy. However, at the investment’s maturity or liquidation, such funds shall be reinvested only as provided by this policy.

1.2 PURPOSE
This Statement of Investment Policy (“SIP”) is set forth by the City for the following purposes:
a) To establish a clear understanding for the City Council, Investment Committees, City management, responsible employees, citizens, and third parties, of the objectives, policies and guidelines for the investment of the City’s idle and surplus funds. b) To offer guidance to investment staff, brokers and any external investment advisors on the investment of City funds.

1.3 INVESTMENT OBJECTIVES
Within the overriding requirement of compliance with all federal, state and local laws governing the investment of moneys under the control of the Treasurer, and as specified in the CGC Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:
a) Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
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2 b) Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. c) Return on Investments: The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City. The Treasurer’s monthly reports shall include benchmark reporting to define “a market rate of return,” which shall be one of the indices published in a financial journal of wide circulation that are most comparable to the Treasurer’s portfolio. The benchmark shall be used solely as a reference tool. The Treasurer shall not add additional risk to the portfolio in order to attain or exceed the benchmark.

1.4 PRUDENCE
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent investor” standard (CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio. The Treasurer and other investment employees, acting within the intent and scope of the SIP and other written procedures, and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in the immediately following Treasurer’s Report and appropriate action is taken to control adverse developments. When a deviation poses a significant risk to the City’s financial position, the City Council shall be notified immediately.

1.5 ETHICS
Elected officials, City officers and employees and any other individuals involved in the investment operations are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof.

Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City.

2.0 OPERATIONS AND PROCEDURES

2.1 SCOPE
a) This SIP applies to all financial assets of the City. These funds are accounted for in the Annual Comprehensive Financial Report and include: General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.
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3 b) This SIP specifically exempts and does not apply to the following financial assets and investment activities of the City:
(1) The City’s Deferred Compensation Plan is excluded because it is managed by a third party administrator and invested by individual plan participants. (2) Proceeds of City or other debt issues in possession of a trustee or fiscal agent are not considered to be part of the financial assets covered by this policy.

These bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents.

2.2 DELEGATION OF AUTHORITY
a) The City Council’s authority to manage the investment program is derived from CGC Sections 53600 et seq.
b) In accordance with the City of Orange Municipal Code Chapter 2.26, management responsibility for the investment program is hereby delegated to the Treasurer, who shall establish written procedures for the operation of the investment program consistent with this SIP. Under the provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent investor standard. c) The Treasurer may delegate all, or a portion of, their investment authority to a Deputy City Treasurer. Prior to the delegation of the investment authority to a Deputy City Treasurer, the City Treasurer shall notify the City Council and request confirmation of the delegation. Delegation of investment authority will not remove or abridge the Treasurer’s investment responsibility.
d) The City Council may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives and in accordance with this SIP. Such external managers may provide advice and effectuate trades upon specific authorization for each transaction. Such managers must be registered under the Investment Advisors Act of 1940 and must have not fewer than five years’ experience investing in the securities and obligations authorized by the CGC Section 53601, and with assets under management in excess of five hundred million dollars ($500,000,000). The Treasurer shall review Form ADV of any investment advisor prior to engagement by the City Council. This Section does not preclude the Treasurer from retaining portfolio consultants within existing authority.

2.3 INVESTMENT OVERSIGHT COMMITTEE
a) Resolution No. 11522, adopted by the City Council on March 12, 2024, established an Investment Advisory Committee (IAC). The terms and provisions of said Resolution, or as it may be later amended, are incorporated into this SIP by reference as though fully set forth herein. The IAC consists of seven citizen members. 381
4 b) The IAC shall, at least annually and more often if directed by the City Council or agreed by a majority of the IAC, review the City Council’s adopted SIP and report to the City Council its recommendations for any changes, additions or deletions to the SIP. In the absence of the IAC, the Finance Director or their designee will assume responsibility for reviewing the SIP.
c) The IAC shall monitor the implementation of the City Council’s adopted SIP and annually submit a compliance report to the City Council. d) The IAC shall review reports to the City Council from Treasurer or other pertinent sources and prepare responses as required.
e) The IAC shall meet and report quarterly to the City Council summarizing the IOC meetings and the recommendations of the Investment Advisory Committee. Such report shall contain an unedited copy of the Investment Advisory Committee’s recommendations.

2.4 AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS
a) Institutions eligible to transact investment business with the City shall include only the following:
(1) Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers;
(2) Nationally or state-chartered banks;
(3) The Federal Reserve Bank;
(4) Direct issuers of securities eligible for purchase by the City; (5) Institutions licensed by the state as a broker-dealer; and (6) Institutions that are members of a federally regulated securities exchange. b) Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City Treasurer. The Treasurer will maintain a list of financial institutions authorized to provide investment services to the City. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
c) The City Treasurer shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Orange SIP. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.
d) All financial institutions which desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
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5 (1) Audited financial statements for the institution’s three most recent fiscal years;
(2) At least three references from California local agencies whose portfolio size, investment objectives and risk preferences are similar to the City’s; (3) A statement certifying that the institution has reviewed the CGC Sections 53600 et seq. and the City’s SIP, and that all securities offered to the City shall comply fully and in every instance with all provisions of the Code and with this SIP; and,
(4) Completed Broker/Dealer Questionnaire.
e) The Treasurer shall conduct an annual review of the financial condition of qualified institutions. In addition, a current financial statement is required to be on file for each qualified institution.
f) Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC) or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law. g) Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

2.5 COLLATERAL REQUIREMENTS
CGC Sections 53652 and 53667 require depositories to post certain types and levels of collateral for public funds on deposit above the FDIC insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non-negotiable time certificates of deposit).

2.6 SAFEKEEPING AND DELIVERY
a) To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement, and shall be evidenced by safekeeping receipts. b) All security transactions entered into by the City shall be conducted on a standard delivery-versus-payment (DVP) basis, which ensures that securities are deposited with the third party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third party 383
6 custodial agreement as required by CGC Section 53601. Investments in the State Pool or money market mutual funds are undeliverable, and are not subject to delivery or third party safekeeping requirements.
c) On a daily basis, investment trades shall be verified against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement is reconciled with the month end portfolio holdings. On an annual basis, the external auditor confirms investment holdings.

3.0 PERMITTED INVESTMENTS AND RISK MANAGEMENT

3.1 INVESTMENTS AUTHORIZED
The City, as empowered by CGC Sections 53601 et seq. and 16429.1, hereby authorizes the City Treasurer to select investments from among the following:
a) United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (Limits: Maximum maturity at purchase 5 years; no other limits.) b) Federal Agencies or United States Government-Sponsored Enterprise obligations, participations, , or other instruments of, or issued by, a federal agency or a United States government-sponsored enterprise. In every case, any issue purchased must be fully guaranteed as to principal and interest by the full faith and credit of the United States, or the issuing federal agency. (Limits: Maximum maturity at purchase 5 years, no more than 30% of total portfolio in any single agency, the maximum percent of agency callable securities in the portfolio will be 20%, and excluding completely Government National Mortgage Association bonds; i.e., GNMAs.)
c) Shares of beneficial interest issued by diversified management companies that are Money Market Mutual Funds, registered with the Securities and Exchange Commission under the Investment Company Act of 1940 investing in the securities and obligations authorized by CGC Sections 53601(b) and (e) only (i.e., U.S. Government issues only). Such Funds must either carry the highest rating of at least two of the three largest national rating agencies, or such funds must have retained an investment adviser registered with the Securities and Exchange Commission with not less than five year’s experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). (Limits: maximum 90 days Weighted Average Maturity; maximum concentration $15 million, or 20%, of portfolio, whichever is less.)
d) State of California Local Agency Investment Fund (LAIF) is permitted, with the knowledge that the fund may invest in some vehicles allowed by statute but not otherwise authorized by the City Council in this SIP. The Treasurer shall obtain from the State Treasurer, no less than quarterly, reports providing sufficient detail to adequately judge the risk inherent in the LAIF portfolio, and shall inform the City 384
7 Council immediately of any risks noted that may warrant reconsideration of this investment vehicle. (Limits: $75 million per account as of 1/1/2020.) e) Investment in new Government sponsored pools will be subject to due diligence. A thorough investigation of the pool is required prior to investing, and on a continual basis.
f) Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures or agreements.
g) Negotiable Certificates of Deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that: The amount of the NCD insured up to the FDIC limit does not require any credit ratings; any amount above the FDIC limit must be issued by institutions which have short-term obligations rated “A-1” or its equivalent or better, long-term obligations with “A” or its equivalent or better by at least one NRSRO; no more than 30% of the total portfolio may be invested in NCDs; no more than 5% of the total portfolio may be invested in any single issuer; the maximum maturity does not exceed five (5) years. h) Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: The amount per institution is limited to the maximum covered under federal insurance; no more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits; the maximum maturity does not exceed five (5) years.
i) Commercial Paper of prime quality in the highest credit category by a nationally recognized statistical ratings organization (NRSRO) issued by a domestic corporation having assets in excess of $500,000,000 and rated in the category of “A” or better by a NRSRO on its debt other than commercial paper as provided by a national rating agency. (Limits: Maximum maturity of 270 days or less; maximum concentration 25% of portfolio may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000; no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
j) Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. (Limits: Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 30% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
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8 k) Municipal bonds include obligations issued by the State of California and any local agency within the state of California, and registered bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or local agency or by a department, board, agency, or authority of a state or local agency. (Limits:

Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 20% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.) l) Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations limited to mortgage-backed pass-through securities issued by a US government agency or consumer receivable pass-through certificates or bonds. (Limits: Maximum maturity at purchase of 5 years ; the securities are rated in a rating category of “AA” or its equivalent or higher by a NRSRO, The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio; no more than 5% held in any one issuer that is not a US government agency.)
m) Supranational securities, senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank which are eligible for purchase in the United States. (Limits: Maximum remaining maturity of five years or less; Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO ; maximum concentration of 30% of the portfolio with no more than 10% invested in any one issuer.)

3.2 PROHIBITED INVESTMENT VEHICLES AND PRACTICES
The City Treasurer is prohibited from the following:
a) Borrowing for investment purposes (“Leverage”) is prohibited. b) Buying or selling securities “on Margin” is prohibited. c) Investing in any instrument, which is commonly known as a “derivative” instrument (options, futures, swaps, caps, floors, collars, U.S. Treasury strips, interest only bonds, interest-only strips derived from mortgage pools), or any investment that may result in a zero interest accrual, even if held to maturity, is prohibited. d) Under the provisions of CGC Sections 53601.6 and 53631.5, the City shall not invest any funds covered by this SIP in instruments known as Structured Notes (e.g. inverse floaters, leverage floaters, structured CD’s, range notes, equity-linked securities). Any such investments are prohibited.
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9 e) Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
f) State law notwithstanding, any investments not specifically described herein under Subsections 3.1 a) through 3.1 c) are prohibited.
g) The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

3.3 MITIGATING RISK IN THE PORTFOLIO
a) Credit Risk:
(1) The City will diversify its investments in accordance with the limits set forth in Subsection 3.1 of this SIP to diminish the credit risk resulting from concentrations.
(2) The City, on occasion, may sell a security prior to its maturity (recording a gain or loss) in order to improve the risk structure, liquidity and yield of the portfolio in response to market conditions.
(3) If any security owned by the City is downgraded to a level below the requirements of this policy, making it ineligible for additional purchases, the following steps will be taken: Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.
b) Market Risk: While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios have higher volatility of total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes.
(1) Maturities selected shall provide for stability of income and liquidity, and shall not exceed 5 years from the date of purchase. Funds not required for purposes of meeting specific cash flow needs shall be invested in permitted securities so that securities will mature periodically across the maturity spectrum with a maximum of five years.
(2) The City may, on occasion, sell a security prior to its maturity (recording a gain or loss) in order to diminish the portfolio’s exposure to market risk or reinvest into a better opportunity providing more potential earning to the City’s portfolio.

4.0 REPORTING, REVIEW AND AUDITS

4.1 MONTHLY REPORTS
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10 a) The Treasurer shall submit three monthly investment reports to the City Council, and they shall be submitted within 45 days following the end of the quarter. The monthly reports shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments and moneys held by the City, and shall additionally include a description of any of the City’s funds, investments, or programs, that are under the management of contracted parties, including lending programs.
b) The report shall also include performance measures as recommended by the CFA Institute’s Global Investment Performance Standards (GIPS). These shall include a presentation of Total Return using accrual accounting, and a Time-weighted Rate of Return using a monthly valuation and one of the GIPS approved methods of calculation. The report shall also include a presentation of Yield to Maturity. c) The report shall also include the performance of the benchmark described in Subsection

1.3 c) of this SIP as a basis of comparison for the City’s portfolio. d) The report shall also include the following certifications:
(1) All investment actions executed since the last report have been made in full compliance with the SIP.
(2) The City will meet its expenditure obligations for the next six months is required by CGC Sections 53646(b)(2) and (3).

4.2 INTERNAL CONTROLS
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall be in writing and shall address the following points: separation of transaction authority from accounting and record keeping, safekeeping of assets and written confirmation of telephone transactions for investments and wire transfers.

4.3 ANNUAL AUDIT
The Treasurer shall insure that the City’s annual process of independent review by an external auditor will include an appropriate investment review to assure compliance with this policy and acceptable internal controls. The audit shall be presented to the City Council upon its completion.

4.4 SPECIAL AUDITS
The City Council may at any time order an audit of the investment portfolio and/or the Treasurer’s investment practices.

5.0 INVESTMENT POLICY ADOPTION
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11 The SIP shall be reviewed annually by the City Council for consistency with the City’s overall investment objectives regarding preservation of principal, liquidity, return, relevance to current law as well as to current financial and economic trends. Any modifications necessary must be approved separately by the City Council. The SIP shall then be adopted in its entirety, as amended, within 120 days of the fiscal year end by resolution and vote of the City Council at a public meeting.

5.1 INVESTMENT POLICY CERTIFICATION
The 1999-2000 version of this investment policy was certified by the Municipal Treasurer’s Association of the United States and Canada, in June 2000. Recommended changes have been incorporated. In the event of any significant changes in legislation that will require significant changes to the SIP, the City will resubmit the new policy for recertification. 389
12 GLOSSARY
AGENCIES: Federal agency securities
ANNUAL COMPREHENSIVE FINANCIAL REPORT: The official annual report for the City of Orange. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A segment of the securities market with characteristics similar to the subject portfolio. It is used to compare portfolio performance to the performance of the appropriate segment of the market. (e.g. 1-Year T-Bill rate)
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public moneys.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER: Short-term, negotiable unsecured promissory notes of corporations.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
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13 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value; e.g., US Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals; e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporations’ purchases include a variety of adjustable mortgages and second loans. In addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of 391
14 the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, DC, 12 regional banks and about 5,700 commercial banks that are members of the system.

GLOBAL INVESTMENT PERFORMANCE STANDARDS: Created by the CFA Institute, a global association for investment management professionals, and are governed by the GIPS Executive Committee. Global Investment Performance Standards (GIPS) are a set of voluntary standards used by investment managers throughout the world to ensure the full disclosure and fair representation of their investment performance. The goal of the standards is to make it possible for investors to compare one firm’s performance against that of another firm.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage banks, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

LEVERAGE: Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): A pooled investment vehicle for local agencies in California sponsored by the State of California and administered by the State Treasurer.

MARGIN: The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET CYCLE: A market cycle is defined as a period of time which includes a minimum of two consecutive quarters of falling interest rates followed by a minimum of two consecutive quarters of rising interest rates.

MARKET VALUE: The price at which a security is traded and could presumably be purchased or sold.
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15 MATURITY: The date upon which the principal or states value of an investment becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES: Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

MONEY MARKET MUTUAL FUND: A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND: An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO):

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

PORTFOLIO: Collection of securities held by an investor. 393
16 PRIMARY DEALER: group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT INVESTOR STANDARD: Governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to CGC Sections 53600 et seq. are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of the CGC Sections 53600 et seq. and considering individual investments as part to an overall strategy, a trustee is authorized to acquire investments as authorized by law.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sale or compensating use or ad valorem taxes under the laws of this state, which has aggregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SECURITIES & EXCHANGE COMMISSION (SEC) RULE 15C3-1: An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

SUPRANATIONAL: A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit which cannot be sold prior to maturity.
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17 TOTAL RATE OF RETURN: Represents growth (or decline) in the value of a portfolio, including both capital appreciation and income, as a proportion of the starting market value.

TIME-WEIGHTED RATE OF RETURN: A modified measurement of Total rate of Return which eliminates the effect of the timing of funds flows to and/or from a security or portfolio.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years.

TREASURY NOTES: A non-interest bearing discount security issued by the US Treasury to finance the national debt. Most bills are issued to mature in one, two, three, five or ten years.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

YIELD TO MATURITY is the calculated rate of return based upon the present value of the cash flow from each interest payment, plus the present value of the cash flow from the investment’s redemption value at maturity vs. the purchase price.
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Dated: April 26,
2023June 25, 2024

CITY OF ORANGE

STATEMENT OF INVESTMENT POLICY
Fiscal Year 20234-245

1.0 INVESTMENT POLICY OVERVIEW

1.1 POLICY
It is the policy of the City of Orange (“City”) to invest public funds in a manner which will provide foremost for the safety of principal while meeting the short- and long-term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

Annually, in accordance with California Government Code (“CGC”) Section 53646, the Treasurer will render to the City Council a Statement of Investment Policy for consideration and approval at a public meeting. Any investment currently held at that time that does not meet the guidelines of this policy, as changed from time to time by the City Council, shall be exempt from the requirements of this policy. However, at the investment’s maturity or liquidation, such funds shall be reinvested only as provided by this policy.

1.2 PURPOSE
This Statement of Investment Policy (“SIP”) is set forth by the City for the following purposes:
a) To establish a clear understanding for the City Council, Investment Committees, City management, responsible employees, citizens, and third parties, of the objectives, policies and guidelines for the investment of the City’s idle and surplus funds. b) To offer guidance to investment staff, brokers and any external investment advisors on the investment of City funds.

1.3 INVESTMENT OBJECTIVES
Within the overriding requirement of compliance with all federal, state and local laws governing the investment of moneys under the control of the Treasurer, and as specified in the CGC Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:
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2 a) Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
b) Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. c) Return on Investments: The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City. The Treasurer’s monthly reports shall include benchmark reporting to define “a market rate of return,” which shall be one of the indices published in a financial journal of wide circulation that are most comparable to the Treasurer’s portfolio. The benchmark shall be used solely as a reference tool. The Treasurer shall not add additional risk to the portfolio in order to attain or exceed the benchmark.

1.4 PRUDENCE
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent investor” standard (CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio. The Treasurer and other investment employees, acting within the intent and scope of the SIP and other written procedures, and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in the immediately following Treasurer’s Report and appropriate action is taken to control adverse developments. When a deviation poses a significant risk to the City’s financial position, the City Council shall be notified immediately.

1.5 ETHICS
Elected officials, City officers and employees and any other individuals involved in the investment operations are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof.

Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City.

2.0 OPERATIONS AND PROCEDURES

2.1 SCOPE
a) This SIP applies to all financial assets of the City. These funds are accounted for in the Annual Comprehensive Financial Report and include: General Fund, Special Revenue 397
3 Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.
b) This SIP specifically exempts and does not apply to the following financial assets and investment activities of the City:
(1) The City’s Deferred Compensation Plan is excluded because it is managed by a third party administrator and invested by individual plan participants. (2) Proceeds of City or other debt issues in possession of a trustee or fiscal agent are not considered to be part of the financial assets covered by this policy.

These bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents.

2.2 DELEGATION OF AUTHORITY
a) The City Council’s authority to manage the investment program is derived from CGC Sections 53600 et seq.
b) In accordance with the City of Orange Municipal Code Chapter 2.26, management responsibility for the investment program is hereby delegated to the Treasurer, who shall establish written procedures for the operation of the investment program consistent with this SIP. Under the provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent investor standard. c) The Treasurer may delegate all, or a portion of, their investment authority to a Deputy City Treasurer. Prior to the delegation of the investment authority to a Deputy City Treasurer, the City Treasurer shall notify the City Council and request confirmation of the delegation. Delegation of investment authority will not remove or abridge the Treasurer’s investment responsibility.
d) The City Council may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives and in accordance with this SIP. Such external managers may provide advice and effectuate trades upon specific authorization for each transaction. Such managers must be registered under the Investment Advisors Act of 1940 and must have not fewer than five years’ experience investing in the securities and obligations authorized by the CGC Section 53601, and with assets under management in excess of five hundred million dollars ($500,000,000). The Treasurer shall review Form ADV of any investment advisor prior to engagement by the City Council. This Section does not preclude the Treasurer from retaining portfolio consultants within existing authority.

2.3 INVESTMENT OVERSIGHT COMMITTEE
a) Resolution No. 1138711522, adopted by the City Council on April 12, 2022March 12, 2024, established an Investment and AuditAdvisory Committee (IAC). The terms and 398
4 provisions of said Resolution, or as it may be later amended, are incorporated into this SIP by reference as though fully set forth herein. The IAC consists of the Treasurer and four seven citizen members.
b) The IAC shall, at least annually and more often if directed by the City Council or agreed by a majority of the IAC, review the City Council’s adopted SIP and report to the City Council its recommendations for any changes, additions or deletions to the SIP. In the absence of the IAC, the Finance Director or their designee will assume responsibility for reviewing the SIP.
c) The IAC shall monitor the implementation of the City Council’s adopted SIP and annually submit a compliance report to the City Council. d) The IAC shall review reports to the City Council from Treasurer or other pertinent sources and prepare responses as required.
e) The IAC shall meet and report quarterly to the City Council summarizing the IOC meetings and the recommendations of the Investment Advisory Committee. Such report shall contain an unedited copy of the Investment Advisory Committee’s recommendations.

2.4 AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS
a) Institutions eligible to transact investment business with the City shall include only the following:
(1) Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers;
(2) Nationally or state-chartered banks;
(3) The Federal Reserve Bank;
(4) Direct issuers of securities eligible for purchase by the City; (5) Institutions licensed by the state as a broker-dealer; and (6) Institutions that are members of a federally regulated securities exchange. b) Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City Treasurer. The Treasurer will maintain a list of financial institutions authorized to provide investment services to the City. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
c) The City Treasurer shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Orange SIP. Investment accounts with all 399
5 financial institutions shall be standard non-discretionary accounts and may not be margin accounts.
d) All financial institutions which desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
(1) Audited financial statements for the institution’s three most recent fiscal years;
(2) At least three references from California local agencies whose portfolio size, investment objectives and risk preferences are similar to the City’s; (3) A statement certifying that the institution has reviewed the CGC Sections 53600 et seq. and the City’s SIP, and that all securities offered to the City shall comply fully and in every instance with all provisions of the Code and with this SIP; and,
(4) Completed Broker/Dealer Questionnaire.
e) The Treasurer shall conduct an annual review of the financial condition of qualified institutions. In addition, a current financial statement is required to be on file for each qualified institution.
f) Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC) or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law. g) Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

2.5 COLLATERAL REQUIREMENTS
CGC Sections 53652 and 53667 require depositories to post certain types and levels of collateral for public funds on deposit above the FDIC insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non-negotiable time certificates of deposit).

2.6 SAFEKEEPING AND DELIVERY
a) To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement, and shall be evidenced by safekeeping receipts. 400
6 b) All security transactions entered into by the City shall be conducted on a standard delivery-versus-payment (DVP) basis, which ensures that securities are deposited with the third party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third party custodial agreement as required by CGC Section 53601. Investments in the State Pool or money market mutual funds are undeliverable, and are not subject to delivery or third party safekeeping requirements.
c) On a daily basis, investment trades shall be verified against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement is reconciled with the month end portfolio holdings. On an annual basis, the external auditor confirms investment holdings.

3.0 PERMITTED INVESTMENTS AND RISK MANAGEMENT

3.1 INVESTMENTS AUTHORIZED
The City, as empowered by CGC Sections 53601 et seq. and 16429.1, hereby authorizes the City Treasurer to select investments from among the following:
a) United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (Limits: Maximum maturity at purchase 5 years; no other limits.) b) Federal Agencies or United States Government-Sponsored Enterprise obligations, participations, Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, the Federal Home Loan Bank, the Tennessee Valley Authority, the Federal National Mortgage Association, or other instruments of, or issued by, a federal agency or a United States government-sponsored enterprise. In every case, any issue purchased must be fully guaranteed as to principal and interest by the full faith and credit of the United States, or the issuing federal agency. (Limits:

Maximum maturity at purchase 5 years,; maximum concentration 75% of portfolio at time of purchase with no more than 30% of total portfolio in any single agency, the maximum percent of agency callable securities in the portfolio will be 20%, and excluding completely Government National Mortgage Association bonds; i.e., GNMAs.)
c) Shares of beneficial interest issued by diversified management companies that are Money Market Mutual Funds, registered with the Securities and Exchange Commission under the Investment Company Act of 1940 investing in the securities and obligations authorized by CGC Sections 53601(b) and (e) only (i.e., U.S. Government issues only). Such Funds must either carry the highest rating of at least two of the three largest national rating agencies, or such funds must have retained an investment adviser registered with the Securities and Exchange Commission with not less than five year’s experience managing money market mutual funds with assets under management in 401
7 excess of five hundred million dollars ($500,000,000). (Limits: maximum 90 days Weighted Average Maturity; maximum concentration $15 million, or 20%, of portfolio, whichever is less.)
d) State of California Local Agency Investment Fund (LAIF) is permitted, with the knowledge that the fund may invest in some vehicles allowed by statute but not otherwise authorized by the City Council in this SIP. The Treasurer shall obtain from the State Treasurer, no less than quarterly, reports providing sufficient detail to adequately judge the risk inherent in the LAIF portfolio, and shall inform the City Council immediately of any risks noted that may warrant reconsideration of this investment vehicle. (Limits: $75 million per account as of 1/1/2020.) e) Investment in new Government sponsored pools will be subject to due diligence. A thorough investigation of the pool is required prior to investing, and on a continual basis.
f) Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures or agreements.
g) Negotiable Certificates of Deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that: The amount of the NCD insured up to the FDIC limit does not require any credit ratings; any amount above the FDIC limit must be issued by institutions which have short-term obligations rated “A-1” or its equivalent or better, long-term obligations with “A” or its equivalent or better by at least one NRSRO; no more than 30% of the total portfolio may be invested in NCDs; no more than 5% of the total portfolio may be invested in any single issuer; the maximum maturity does not exceed five (5) years. Certificates of Deposit approved by the California AB 2011 are permitted. (Limits: The bill allows investment up to January 1, 2021; a maximum concentration 30% of total portfolio.) g)h) Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: The amount per institution is limited to the maximum covered under federal insurance; no more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits; the maximum maturity does not exceed five (5) years.
h)i)Commercial Paper of prime quality in the highest credit category by a nationally recognized statistical ratings organization (NRSRO) issued by a domestic corporation having assets in excess of $500,000,000 and rated in the category of “A” or better by a NRSRO on its debt other than commercial paper as provided by a national rating agency. (Limits: Maximum maturity of 270 days or less; maximum concentration 25% of portfolio may be invested in Commercial Paper. Under a provision sunsetting on 402
8 January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000; no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
i)j) Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. (Limits: Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 30% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.)
j)k)Municipal bonds include obligations issued by the State of California and any local agency within the state of California, and registered bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or local agency or by a department, board, agency, or authority of a state or local agency. (Limits:

Maximum maturity at purchase 5 years; must be rated in the category of “A” or better by a NRSRO; maximum concentration 20% of portfolio and no more than 5% of the book value of the portfolio funds to a single issuer at time of purchase.) k)l)Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations limited to mortgage-backed pass-through securities issued by a US government agency or consumer receivable pass-through certificates or bonds. (Limits: Maximum maturity at purchase of 5 years ; the securities are rated in a rating category of “AA” or its equivalent or higher by a NRSRO, The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio; no more than 5% held in any one issuer that is not a US government agency.)
l)m) Supranational securities, senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank which are eligible for purchase in the United States. (Limits: Maximum remaining maturity of five years or less; Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO ; maximum concentration of 30% of the portfolio with no more than 10% invested in any one issuer.)

3.2 PROHIBITED INVESTMENT VEHICLES AND PRACTICES
The City Treasurer is prohibited from the following:
a) Borrowing for investment purposes (“Leverage”) is prohibited. 403
9 b) Buying or selling securities “on Margin” is prohibited. c) Investing in any instrument, which is commonly known as a “derivative” instrument (options, futures, swaps, caps, floors, collars, U.S. Treasury zero coupon bonds, U.S.

Treasury strips, interest only bonds, interest-only strips derived from mortgage pools), or any investment that may result in a zero interest accrual, even if held to maturity, is prohibited.
d) Under the provisions of CGC Sections 53601.6 and 53631.5, the City shall not invest any funds covered by this SIP in instruments known as Structured Notes (e.g. inverse floaters, leverage floaters, structured CD’s, range notes, equity-linked securities). Any such investments are prohibited.
e) Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
f) State law notwithstanding, any investments not specifically described herein under Subsections 3.1 a) through 3.1 c) are prohibited.
g) The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

3.3 MITIGATING RISK IN THE PORTFOLIO
a) Credit Risk:
(1) The City will diversify its investments in accordance with the limits set forth in Subsection 3.1 of this SIP to diminish the credit risk resulting from concentrations.
(2) The City, on occasion, may sell a security prior to its maturity (recording a gain or loss) in order to improve the risk structure, liquidity and yield of the portfolio in response to market conditions.
(3) If any security owned by the City is downgraded to a level below the requirements of this policy, making it ineligible for additional purchases, the following steps will be taken: Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.
it shall be the City’s policy to review immediately the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If the highest credit rating of a security is downgraded one notch below the quality required in this investment policy, it will be considered acceptable to retain such downgraded security in the portfolio and its presence in the portfolio will be reported to the City Council and monitored continuously for further information. If the highest credit rating of a security 404
10 is rated two grades below the required minimum rating, it will trigger an automatic sale of such downgraded security.
b) Market Risk: While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios have higher volatility of total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes.
(1) Maturities selected shall provide for stability of income and liquidity, and shall not exceed 5 years from the date of purchase. Funds not required for purposes of meeting specific cash flow needs shall be invested in permitted securities so that securities will mature periodically across the maturity spectrum with a maximum of five years.
(2) The City may, on occasion, sell a security prior to its maturity (recording a gain or loss) in order to diminish the portfolio’s exposure to market risk or reinvest into a better opportunity providing more potential earning to the City’s portfolio.

4.0 REPORTING, REVIEW AND AUDITS

4.1 MONTHLY REPORTS
a) The Treasurer shall submit three monthly investment reports to the City Council, and they shall be submitted within 45 days following the end of the quarter. The monthly reports shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments and moneys held by the City, and shall additionally include a description of any of the City’s funds, investments, or programs, that are under the management of contracted parties, including lending programs.
b) The report shall also include performance measures as recommended by the CFA Institute’s Global Investment Performance Standards (GIPS). These shall include a presentation of Total Return using accrual accounting, and a Time-weighted Rate of Return using a monthly valuation and one of the GIPS approved methods of calculation. The report shall also include a presentation of Yield to Maturity. c) The report shall also include the performance of the benchmark described in Subsection

1.3 c) of this SIP as a basis of comparison for the City’s portfolio. d) The report shall also include the following certifications:
(1) All investment actions executed since the last report have been made in full compliance with the SIP.
(2) The City will meet its expenditure obligations for the next six months is required by CGC Sections 53646(b)(2) and (3).
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11 4.2 INTERNAL CONTROLS
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall be in writing and shall address the following points: separation of transaction authority from accounting and record keeping, safekeeping of assets and written confirmation of telephone transactions for investments and wire transfers.

4.3 ANNUAL AUDIT
The Treasurer shall insure that the City’s annual process of independent review by an external auditor will include an appropriate investment review to assure compliance with this policy and acceptable internal controls. The audit shall be presented to the City Council upon its completion.

4.4 SPECIAL AUDITS
The City Council may at any time order an audit of the investment portfolio and/or the Treasurer’s investment practices.

5.0 INVESTMENT POLICY ADOPTION
The SIP shall be reviewed annually by the City Council for consistency with the City’s overall investment objectives regarding preservation of principal, liquidity, return, relevance to current law as well as to current financial and economic trends. Any modifications necessary must be approved separately by the City Council. The SIP shall then be adopted in its entirety, as amended, within 120 days of the fiscal year end by resolution and vote of the City Council at a public meeting.

5.1 INVESTMENT POLICY CERTIFICATION
The 1999-2000 version of this investment policy was certified by the Municipal Treasurer’s Association of the United States and Canada, in June 2000. Recommended changes have been incorporated. In the event of any significant changes in legislation that will require significant changes to the SIP, the City will resubmit the new policy for recertification. 406
12 GLOSSARY
AGENCIES: Federal agency securities
ANNUAL COMPREHENSIVE FINANCIAL REPORT: The official annual report for the City of Orange. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A segment of the securities market with characteristics similar to the subject portfolio. It is used to compare portfolio performance to the performance of the appropriate segment of the market. (e.g. 1-Year T-Bill rate)
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public moneys.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER: Short-term, negotiable unsecured promissory notes of corporations.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
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13 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value; e.g., US Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals; e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporations’ purchases include a variety of adjustable mortgages and second loans. In addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of 408
14 the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, DC, 12 regional banks and about 5,700 commercial banks that are members of the system.

GLOBAL INVESTMENT PERFORMANCE STANDARDS: Created by the CFA Institute, a global association for investment management professionals, and are governed by the GIPS Executive Committee. Global Investment Performance Standards (GIPS) are a set of voluntary standards used by investment managers throughout the world to ensure the full disclosure and fair representation of their investment performance. The goal of the standards is to make it possible for investors to compare one firm’s performance against that of another firm.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage banks, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

LEVERAGE: Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): A pooled investment vehicle for local agencies in California sponsored by the State of California and administered by the State Treasurer.

MARGIN: The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET CYCLE: A market cycle is defined as a period of time which includes a minimum of two consecutive quarters of falling interest rates followed by a minimum of two consecutive quarters of rising interest rates.

MARKET VALUE: The price at which a security is traded and could presumably be purchased or sold.
409
15 MATURITY: The date upon which the principal or states value of an investment becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES: Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

MONEY MARKET MUTUAL FUND: A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND: An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO):

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid.

PORTFOLIO: Collection of securities held by an investor. 410
16 PRIMARY DEALER: group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT INVESTOR STANDARD: Governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to CGC Sections 53600 et seq. are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of the CGC Sections 53600 et seq. and considering individual investments as part to an overall strategy, a trustee is authorized to acquire investments as authorized by law.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sale or compensating use or ad valorem taxes under the laws of this state, which has aggregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SECURITIES & EXCHANGE COMMISSION (SEC) RULE 15C3-1: An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

SUPRANATIONAL: A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit which cannot be sold prior to maturity.
411
17 TOTAL RATE OF RETURN: Represents growth (or decline) in the value of a portfolio, including both capital appreciation and income, as a proportion of the starting market value.

TIME-WEIGHTED RATE OF RETURN: A modified measurement of Total rate of Return which eliminates the effect of the timing of funds flows to and/or from a security or portfolio.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years.

TREASURY NOTES: A non-interest bearing discount security issued by the US Treasury to finance the national debt. Most bills are issued to mature in one, two, three, five or ten years.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

YIELD TO MATURITY is the calculated rate of return based upon the present value of the cash flow from each interest payment, plus the present value of the cash flow from the investment’s redemption value at maturity vs. the purchase price.
412
Agenda Item
City Council
Item #: 7.1. 6/25/2024 File #: 24-0397

1. SUBJECT
Appointment to the Planning Commission, Design Review Committee, and Traffic Commission.

2. SUMMARY
Due to recent resignations and upcoming expired terms, there are vacancies on the Planning Commission, Design Review Committee, and Traffic Commission. Notice of Vacancies were posted in accordance with Government Code Section 54974.

3. RECOMMENDED ACTION
Confirm Mayor Slater’s recommendation to appoint Isaiah Leslie to the Planning Commission to fill an unexpired term ending on June 30, 2027; Michael Lopez to the Design Review Committee for a four-year term beginning on July 1, 2024, and ending on June 30, 2028; and Sean Chavarria to the Traffic Commission for a four-year term beginning on July 1, 2024 and ending on June 30, 2028.

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Agenda Item
City Council
Item #: 7.1. 6/25/2024 File #: 24-0397

1. SUBJECT
Appointment to the Planning Commission, Design Review Committee, and Traffic Commission.

2. SUMMARY
Due to recent resignations and upcoming expired terms, there are vacancies on the Planning Commission, Design Review Committee, and Traffic Commission. Notice of Vacancies were posted in accordance with Government Code Section 54974.

3. RECOMMENDED ACTION
Confirm Mayor Slater’s recommendation to appoint Isaiah Leslie to the Planning Commission to fill an unexpired term ending on June 30, 2027; Michael Lopez to the Design Review Committee for a four-year term beginning on July 1, 2024, and ending on June 30, 2028; and Sean Chavarria to the Traffic Commission for a four-year term beginning on July 1, 2024 and ending on June 30, 2028.

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Agenda Item
City Council
Item #: 8.1. 6/25/2024 File #: 24-0315
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Presentation of Experience Orange shop local rewards program.

2. SUMMARY
Presentation of Open Rewards mobile application that allows residents to earn rewards when they shop at local Orange businesses.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

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
The Economic Development Strategy that was presented to City Council in October 2023 included a goal to develop a shop local program in partnership with the Orange Chamber of Commerce. Shop local programs highlight the community benefits of residents choosing to shop at local businesses.

These benefits include supporting local investment, jobs, and funding for municipal services such as police, fire, parks, and libraries. The shop local program for the City of Orange is branded as Experience Orange: Shop Local - Support Community.

In March 2024, the City Council approved an agreement with Bludot Technologies, Inc. for their shop local rewards mobile application. Bludot’s Open Rewards shop local app allows members of the community to earn cash-back rewards whenever they shop locally. Residents can choose to link the app to a payment card to earn rewards automatically, or upload photos of receipts. This presentation serves as the formal launch of the Open Rewards app, along with the launch of the Experience Orange branding for the shop local program.

7. ATTACHMENTS
· None.

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Agenda Item
City Council
Item #: 8.1. 6/25/2024 File #: 24-0315
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Presentation of Experience Orange shop local rewards program.

2. SUMMARY
Presentation of Open Rewards mobile application that allows residents to earn rewards when they shop at local Orange businesses.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

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
The Economic Development Strategy that was presented to City Council in October 2023 included a goal to develop a shop local program in partnership with the Orange Chamber of Commerce. Shop local programs highlight the community benefits of residents choosing to shop at local businesses.

These benefits include supporting local investment, jobs, and funding for municipal services such as police, fire, parks, and libraries. The shop local program for the City of Orange is branded as Experience Orange: Shop Local - Support Community.

In March 2024, the City Council approved an agreement with Bludot Technologies, Inc. for their shop local rewards mobile application. Bludot’s Open Rewards shop local app allows members of the community to earn cash-back rewards whenever they shop locally. Residents can choose to link the app to a payment card to earn rewards automatically, or upload photos of receipts. This presentation serves as the formal launch of the Open Rewards app, along with the launch of the Experience Orange branding for the shop local program.

7. ATTACHMENTS
· None.

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Agenda Item
City Council
Item #: 9.1. 6/25/2024 File #: 24-0324
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Public Hearing to consider introduction and First Reading of Ordinance No.16-24 approving a First Amendment to Development Agreement with Chapman Orange Holdings, LLC.

2. SUMMARY
The proposed First Amendment to Development Agreement with Chapman Orange Holdings, LLC would extend entitlements to build a Marriott Hotel at 3000 W. Chapman Avenue for an additional two and a half years.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 16-24. An Ordinance of the City Council of the City of Orange approving a First Amendment to Development Agreement No. 7204 by and between the City of Orange and Chapman Orange Holdings, LLC, a California Limited Liability Company.

3. Authorize the City Manager to execute a non-exclusive license in conformance with the provisions in Section 6.3 of the amended Development Agreement No. 7204.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities. e: Create an environment to attract, retain, and expand economic opportunities.

6. DISCUSSION AND BACKGROUND
In June 2018, the Planning Commission approved a new Marriott dual brand hotel to replace a Motel 6 and Denny’s restaurant at 3000 W. Chapman Avenue. In June 2020, the Planning Commission granted a one-year extension to the entitlements, and in June 2021, the City Council approved a Development Agreement to extend the entitlements for an additional three years.

The original development team was not able to develop the hotel project and so the property owner re-established control of the property development and is requesting a two and a half year extension to the Development Agreement. The two and a half year extension will allow the owner time to enter into an agreement with a new development team to develop the hotel, refine the number of hotel City of Orange Page 1 of 2 Printed on 6/20/2024
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Item #: 9.1. 6/25/2024 File #: 24-0324
into an agreement with a new development team to develop the hotel, refine the number of hotel rooms to match existing market conditions, and determine if ancillary retail facilities are viable. City staff would review any proposed changes for substantial conformance with the approved entitlements. The additional time would also allow the development team flexibility to finance the project in a more favorable interest rate environment.

In exchange for the two and a half year extension as a public benefit, the owner has agreed to provide parking spaces for public use for the new park to be constructed adjacent to the hotel site along the Santa Ana River Trail. The six parking spaces would include one ADA accessible space and would allow for public parking at a park that would not otherwise provide that amenity. If approved, the First Amendment to the Development Agreement would start on July 13, 2024, and expire on December 31, 2026 if the entitlements are not utilized.

7. ATTACHMENTS
· Ordinance No. 16-24
· First Amendment to Development Agreement
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Agenda Item
City Council
Item #: 9.1. 6/25/2024 File #: 24-0324
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Public Hearing to consider introduction and First Reading of Ordinance No.16-24 approving a First Amendment to Development Agreement with Chapman Orange Holdings, LLC.

2. SUMMARY
The proposed First Amendment to Development Agreement with Chapman Orange Holdings, LLC would extend entitlements to build a Marriott Hotel at 3000 W. Chapman Avenue for an additional two and a half years.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 16-24. An Ordinance of the City Council of the City of Orange approving a First Amendment to Development Agreement No. 7204 by and between the City of Orange and Chapman Orange Holdings, LLC, a California Limited Liability Company.

3. Authorize the City Manager to execute a non-exclusive license in conformance with the provisions in Section 6.3 of the amended Development Agreement No. 7204.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities. e: Create an environment to attract, retain, and expand economic opportunities.

6. DISCUSSION AND BACKGROUND
In June 2018, the Planning Commission approved a new Marriott dual brand hotel to replace a Motel 6 and Denny’s restaurant at 3000 W. Chapman Avenue. In June 2020, the Planning Commission granted a one-year extension to the entitlements, and in June 2021, the City Council approved a Development Agreement to extend the entitlements for an additional three years.

The original development team was not able to develop the hotel project and so the property owner re-established control of the property development and is requesting a two and a half year extension to the Development Agreement. The two and a half year extension will allow the owner time to enter into an agreement with a new development team to develop the hotel, refine the number of hotel City of Orange Page 1 of 2 Printed on 6/20/2024
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Item #: 9.1. 6/25/2024 File #: 24-0324
into an agreement with a new development team to develop the hotel, refine the number of hotel rooms to match existing market conditions, and determine if ancillary retail facilities are viable. City staff would review any proposed changes for substantial conformance with the approved entitlements. The additional time would also allow the development team flexibility to finance the project in a more favorable interest rate environment.

In exchange for the two and a half year extension as a public benefit, the owner has agreed to provide parking spaces for public use for the new park to be constructed adjacent to the hotel site along the Santa Ana River Trail. The six parking spaces would include one ADA accessible space and would allow for public parking at a park that would not otherwise provide that amenity. If approved, the First Amendment to the Development Agreement would start on July 13, 2024, and expire on December 31, 2026 if the entitlements are not utilized.

7. ATTACHMENTS
· Ordinance No. 16-24
· First Amendment to Development Agreement
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ORDINANCE NO. 16-24

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF ORANGE APPROVING A FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT NO. 7204 BY AND

BETWEEN THE CITY OF ORANGE AND CHAPMAN

ORANGE HOLDINGS, LLC, A CALIFORNIA LIMITED

LIABILITY COMPANY
APPLICANT: CHAPMAN ORANGE HOLDINGS, LLC
WHEREAS, Section 65864 through 65869.5 of the California Government Code authorizes cities to enter into development agreements with any person having a legal or equitable interest in real property for the development of such property; and WHEREAS, the City Council of the City of Orange has adopted Chapter 17.44 of the Orange Municipal Code which establishes procedures for the processing and approval of development agreements.

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

SECTION I:

The City Council finds that a public hearing has been held before this City Council pursuant to the procedures described in Chapter 17.44 of the Orange Municipal Code. At the hearing, the City Council has considered testimony presented by the public and the Planning Commission's recommendation to approve the First Amendment to Development Agreement No. 7204 between the City of Orange and Chapman Orange Holdings, LLC (Development Agreement).

SECTION II:

The City Council hereby finds that the Development Agreement between the City of Orange and Chapman Orange Holdings, LLC:

A. Is consistent with the objectives, policies, general land uses, and programs specified in the General Plan; and
B. Is compatible with the uses authorized in, and the regulations prescribed for, the zoning district in which the real property is and will be located; and is in conformity with and will promote public necessity, public convenience, general welfare, and good land use practices; and
C. Will be beneficial to the health, safety, and general welfare; and 421
2 D. Will not adversely affect the orderly development of property or the preservation of property values; and
E. Will promote and encourage the development of the proposed project by providing a greater degree of requisite certainty.

SECTION III:

The City Council hereby approves the First Amendment to Development Agreement No. 7204 in the form attached hereto and incorporates the Agreement herein by this reference. Within ten (10) days after this Ordinance takes effect, the City Council shall execute the Development Agreement
SECTION IV:

Within ten (10) days after the execution of the Development Agreement by all parties, the City Clerk is directed to record the Development Agreement pursuant to the terms of this Agreement.

SECTION V:

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

SECTION VI:

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 ___________________, 2024.

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

Pamela Coleman, City Clerk, City of Orange
422
3 APPROVED AS TO FORM:

Mike 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 the ___ day of _______________, 2024, and thereafter at the regular meeting of said City Council duly held on the ___ day of _______________, 2024 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
423
EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code §§ 6103 and 27383
Recording requested by and when recorded return to:

City Clerk
City of Orange
300 E. Chapman Avenue
Orange, California 92866
(SPACE ABOVE FOR RECORDER’S USE)

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT
Dated as of ___________________, 2024
By and Between
City of Orange,
a municipal corporation
and
Chapman Orange Holdings,
a California Limited Liability Company
424
1 FIRST AMENDMENT
TO

DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the “First Amendment”) is entered into as of ______________________, 2024 (“Agreement Date”), by and between Chapman Orange Holdings, LLC (“OWNER”), and the CITY OF ORANGE, a municipal corporation, organized and existing under the laws of the State of California (“CITY”), pursuant to the authority of California Government Code Sections 65864 through 65869.5 (“Development Agreement Legislation”) and California Constitution Article XI, Section 7 as implemented through Orange Municipal Code Chapter 17.44.

RECITALS
This First Amendment is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the CITY and OWNER:

A. CITY and DCSG THREE THOUSAND WEST, LLC entered into a Development Agreement effective July 13, 2021 (the “Agreement”).

B. Since July 13, 2021 the rights under this Agreement have transferred to Chapman Orange Holdings, LLC.

C. The Agreement is set to expire on July 13, 2024.

D. CITY and OWNER wish to amend the Agreement to extend the Development Agreement and Planning Entitlements and to add additional public benefits.

E. Pursuant to Government Code section 65867.5 and Orange Municipal Code section

17.44.100, the City Council finds that: (i) this Amendment and any Future Approvals of the Project is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan and any applicable specific plan or redevelopment plans; (ii) this Amendment is compatible with the uses authorized in the district or planning area in which the real property will be located; (iii) this Amendment is in conformity with the public necessity, public convenience, general welfare, and good land use practices; (iv) this Amendment is in the best interest of and not in detriment to the public health, safety and general welfare of the residents in the City and the surrounding region; (v) this Amendment will not adversely affect the orderly development of property in the City; and (vi) this Amendment is being entered into pursuant to and in compliance with the requirements of Government Code section 65867.

NOW THEREFORE, the Parties agree as follows:

1. The entire Agreement is changed to reflect the new OWNER name where applicable. Within the framework of the existing entitlements, Owner may revise the total hotel 425
2 guest rooms for the Project and determine whether retail facilities may be potentially included in the Project. Owner may eliminate or reduce the retail facilities during the Project’s design process.

The current projected hotel guest room count for the Project is approximately 240 rooms, and Owner may further revise the room count during the Project’s design process.

2. Section 6.2.1 is hereby deleted in its entirety.

3. Section 2 of the Agreement is amended to extend the term for two and a half (2.5) years. The Agreement will expire December 31, 2026.

4. Section 6.3 is deleted in its entirety and replaced by:
“Public Parking. CITY and OWNER will enter into a non-exclusive license with the following provisions:

1. OWNER agrees to provide 6 parking spaces for public use for patrons of the park to be constructed adjacent to the hotel. One parking space must be ADA accessible.

2. The parking spaces will be available to park patrons from 9:00 a.m. to 6 p.m. and will be complimentary for the first two hours of use.

3. OWNER will retain the right to enforce reasonable measures to ensure the safety and security of hotel patrons and property, including installation of parking gates.

4. CITY to provide evidence of insurance and agree to defend and indemnify OWNER (and its successors and assigns) for liability, damages, and claims arising from the agreement.

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

6. This First Amendment shall become operative upon the date the ordinance approving this First Amendment becomes effective.
[Remainder of page intentionally left blank; signatures on next page] 426
3 “CITY”
CITY OF ORANGE, a municipal corporation
By:

Thomas C. Kisela, City Manager
ATTEST:

Pamela Coleman, City Clerk
APPROVED AS TO FORM:

Mike Vigliotta, City Attorney
“OWNER”,
Chapman Orange Holdings, LLC
a California limited liability company
By:

Print name:

Title:
√
427

ACKNOWLEDGMENT
State of California
County of Orange
On ______________________ before me, , a Notary Public, personally appeared
, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
(Seal)

ACKNOWLEDGMENT
State of California
County of Orange
On ______________________ before me, , a Notary Public, personally appeared
, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
(Seal)
428
Agenda Item
City Council
Item #: 9.2. 6/25/2024 File #: 24-0372
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 introduction and First Reading of Ordinance No. 20-24 updating Accessory Dwelling Unit provisions of the Orange Municipal Code, and finding of CEQA exemption.

2. SUMMARY
An update to the City’s existing Accessory Dwelling Unit Ordinance in response to changes in state law and guidance from the California Department of Housing and Community Development.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 20-24. An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code updating accessory dwelling unit provisions of the Orange Municipal Code in response to changes in state law and guidance from the Department of Housing and Community Development.

3. Find that the ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and Title 14, California Code of Regulations Section 15282(h).

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments.

6. DISCUSSION AND BACKGROUND
The proposed Ordinance updates the Orange Municipal Code (OMC) to reflect new state law and include California Department of Housing and Community Development (HCD) guidance necessary to ensure that the City’s ordinance is in compliance with state law and completes Housing Policy Action 2J of the Housing Element of the City’s General Plan. Background information about the evolution of Accessory Dwelling Unit (ADU) regulations is contained in the Planning Commission staff report as is an analysis and statement of the issues (Attachment 4).

The proposed ordinance retains those regulations allowed by state law and clarifies content to City of Orange Page 1 of 3 Printed on 6/20/2024
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Item #: 9.2. 6/25/2024 File #: 24-0372
provide available protections for neighborhood character and quality of life.

Changes in State Law
The following chart shows the mandatory provisions contained in recent changes in state law that are reflected in the proposed ordinance.

ADU
Criteria
New Regulation Under State ADU Law as Enacted
Location of
ADUs
ADUs are allowed in front yard setbacks. Front setback requirements cannot be used to prohibit ADU construction where there is no other alternative to allow for construction of an 800 square foot ADU that meets height limits and complies with the 4 foot side and rear yard setback requirements.

Height An attached ADU may be up to 25 feet tall or the maximum height of the primary dwelling allowed under the underlying zoning designation, but not to exceed two stories. A detached ADU may be up to 18 feet if located within a half-mile of a major transit stop or high quality transit corridor as defined by state law (see Attachment 7), or up to 20 feet high if necessary to match the roof pitch of the ADU to that of the primary unit. Detached ADU up to 18 feet on lots with an existing or proposed multi-family, multistory residence.

Implementation of HCD Required Amendments
In addition to the above table, the ADU ordinance update amends city regulations in response to HCD’s feedback on the current code, indicating the need to eliminate limitations and standards pertaining to sinks, cooking appliances, refrigeration facilities, number of bedrooms, and common living area.

The City’s current deed restriction requirement for ADUs has been eliminated because the prohibition of the separate sale of an ADU from the primary unit is contained in state law. A deed restriction for Junior Accessory Dwelling Units (JADUs) is still in place restricting the maximum size, and separate sale of the JADU from the primary unit, as specified in state law.

Reiteration of State Law for Objective Design Standards The ADU ordinance reiterates current state law pertaining to the local government’s ability to apply objective design standards to historic properties. To the extent possible, the ordinance applies design standards to ADUs to prevent adverse impacts on historic resources through reliance on those aspects of the City’s Historic Preservation Design Standards and Secretary of Interior Standards that are objective in nature. The ordinance bolsters objective design and development standards for ADUs and JADUs throughout the rest of the City by clarifying design related development standards.

A redlined copy of the proposed Ordinance is provided in Attachment 2.

7. ADVISORY BOARD ACTION
At the May 6, 2024, Planning Commission meeting, the Planning Commission recommended that the City Council adopt Ordinance No. 20-24 by a vote of 4-2. The minutes from the May 6, 2024, City of Orange Page 2 of 3 Printed on 6/20/2024
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Item #: 9.2. 6/25/2024 File #: 24-0372
City Council adopt Ordinance No. 20-24 by a vote of 4-2. The minutes from the May 6, 2024, Planning Commission meeting are attached (Attachment 5).

8. ENVIRONMENTAL REVIEW
Statutory Exemption: This ordinance is statutorily exempt under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.17 and Title 14, California Code of Regulations Section 15282(h) which exempts adoption of an ordinance regarding second units to implement provisions of Sections 66310, et. seq. of the Government Code.

9. ATTACHMENTS
· Attachment 1 - Ordinance No. 20-24
· Attachment 2 - Ordinance No. 20-24 - Redlined Copy
· Attachment 3 - Planning Commission Resolution No. PC 14-24 · Attachment 4 - Planning Commission Staff Report, May 6, 2024 · Attachment 5 - Planning Commission Meeting Minutes, May 6, 2024 · Attachment 6 - City Council Ordinance No. 03-21 - Existing ADU Ordinance · Attachment 7 - Map of High Frequency Transit Stops with ½ mile buffer · Attachment 8 - Government Code Sections 66310-66339
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Agenda Item
City Council
Item #: 9.2. 6/25/2024 File #: 24-0372
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 introduction and First Reading of Ordinance No. 20-24 updating Accessory Dwelling Unit provisions of the Orange Municipal Code, and finding of CEQA exemption.

2. SUMMARY
An update to the City’s existing Accessory Dwelling Unit Ordinance in response to changes in state law and guidance from the California Department of Housing and Community Development.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 20-24. An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code updating accessory dwelling unit provisions of the Orange Municipal Code in response to changes in state law and guidance from the Department of Housing and Community Development.

3. Find that the ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and Title 14, California Code of Regulations Section 15282(h).

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments.

6. DISCUSSION AND BACKGROUND
The proposed Ordinance updates the Orange Municipal Code (OMC) to reflect new state law and include California Department of Housing and Community Development (HCD) guidance necessary to ensure that the City’s ordinance is in compliance with state law and completes Housing Policy Action 2J of the Housing Element of the City’s General Plan. Background information about the evolution of Accessory Dwelling Unit (ADU) regulations is contained in the Planning Commission staff report as is an analysis and statement of the issues (Attachment 4).

The proposed ordinance retains those regulations allowed by state law and clarifies content to City of Orange Page 1 of 3 Printed on 6/20/2024
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Item #: 9.2. 6/25/2024 File #: 24-0372
provide available protections for neighborhood character and quality of life.

Changes in State Law
The following chart shows the mandatory provisions contained in recent changes in state law that are reflected in the proposed ordinance.

ADU
Criteria
New Regulation Under State ADU Law as Enacted
Location of
ADUs
ADUs are allowed in front yard setbacks. Front setback requirements cannot be used to prohibit ADU construction where there is no other alternative to allow for construction of an 800 square foot ADU that meets height limits and complies with the 4 foot side and rear yard setback requirements.

Height An attached ADU may be up to 25 feet tall or the maximum height of the primary dwelling allowed under the underlying zoning designation, but not to exceed two stories. A detached ADU may be up to 18 feet if located within a half-mile of a major transit stop or high quality transit corridor as defined by state law (see Attachment 7), or up to 20 feet high if necessary to match the roof pitch of the ADU to that of the primary unit. Detached ADU up to 18 feet on lots with an existing or proposed multi-family, multistory residence.

Implementation of HCD Required Amendments
In addition to the above table, the ADU ordinance update amends city regulations in response to HCD’s feedback on the current code, indicating the need to eliminate limitations and standards pertaining to sinks, cooking appliances, refrigeration facilities, number of bedrooms, and common living area.

The City’s current deed restriction requirement for ADUs has been eliminated because the prohibition of the separate sale of an ADU from the primary unit is contained in state law. A deed restriction for Junior Accessory Dwelling Units (JADUs) is still in place restricting the maximum size, and separate sale of the JADU from the primary unit, as specified in state law.

Reiteration of State Law for Objective Design Standards The ADU ordinance reiterates current state law pertaining to the local government’s ability to apply objective design standards to historic properties. To the extent possible, the ordinance applies design standards to ADUs to prevent adverse impacts on historic resources through reliance on those aspects of the City’s Historic Preservation Design Standards and Secretary of Interior Standards that are objective in nature. The ordinance bolsters objective design and development standards for ADUs and JADUs throughout the rest of the City by clarifying design related development standards.

A redlined copy of the proposed Ordinance is provided in Attachment 2.

7. ADVISORY BOARD ACTION
At the May 6, 2024, Planning Commission meeting, the Planning Commission recommended that the City Council adopt Ordinance No. 20-24 by a vote of 4-2. The minutes from the May 6, 2024, City of Orange Page 2 of 3 Printed on 6/20/2024
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Item #: 9.2. 6/25/2024 File #: 24-0372
City Council adopt Ordinance No. 20-24 by a vote of 4-2. The minutes from the May 6, 2024, Planning Commission meeting are attached (Attachment 5).

8. ENVIRONMENTAL REVIEW
Statutory Exemption: This ordinance is statutorily exempt under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.17 and Title 14, California Code of Regulations Section 15282(h) which exempts adoption of an ordinance regarding second units to implement provisions of Sections 66310, et. seq. of the Government Code.

9. ATTACHMENTS
· Attachment 1 - Ordinance No. 20-24
· Attachment 2 - Ordinance No. 20-24 - Redlined Copy
· Attachment 3 - Planning Commission Resolution No. PC 14-24 · Attachment 4 - Planning Commission Staff Report, May 6, 2024 · Attachment 5 - Planning Commission Meeting Minutes, May 6, 2024 · Attachment 6 - City Council Ordinance No. 03-21 - Existing ADU Ordinance · Attachment 7 - Map of High Frequency Transit Stops with ½ mile buffer · Attachment 8 - Government Code Sections 66310-66339
City of Orange Page 3 of 3 Printed on 6/20/2024
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ORDINANCE NO. 20-24

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

THE ORANGE MUNICIPAL CODE UPDATING

ACCESSORY DWELLING UNIT PROVISIONS OF

THE ORANGE MUNICIPAL CODE IN RESPONSE

TO CHANGES IN STATE LAW AND GUIDANCE

FROM THE DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT
WHEREAS, in 2019, the State Legislature enacted new laws related to Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”), formerly known as “second units” or “granny flats, including Assembly Bills (“AB”) 68, 881, 587, 670 and Senate Bill (“SB”) 13; and
WHEREAS, in enacting new laws, the Legislature aimed to address barriers to the development of ADUs and JADUs that may occur under existing local ordinances and establish certain minimum standards for approving such dwelling units, and WHEREAS, on or about April 13, 2021, the City adopted Ordinance No. 03-21 codifying rules and regulations pertaining to ADUs and JADUs in accordance with State law mandates at that time and in efforts to address California’s continuing housing crisis; and WHEREAS, since 2020, the Legislature has made numerous changes to ADU law, as contained in, but not limited to, AB 671, 976, AB 897, 1332, 1033, which have made both substantive and non-substantive changes to the ADU and JADU laws; and WHEREAS, the State Legislature also recently re-codified ADU laws from Government Code Sections 65852.2, et. seq. to Government Code Section 66310, et. seq.; and WHEREAS, staff has reviewed Chapter 17.29 of the Orange Municipal Code (“OMC”), the Chapter enacted to comply with ADU laws, and has proposed numerous changes in order to be consistent with new State laws and Housing and Community Development Department (“HCD”) guidance; and
WHEREAS, the Planning Commission, having considered the proposed changes to the OMC at a public hearing held on May 6, 2024, and having received public testimony on the item, determined the proposed ordinance serves the City’s best interests and furthers the public health, safety and general welfare; and
WHEREAS, the City Council now desires to revise OMC Chapter 17.29 to be consistent with the most recent changes to State law regarding ADUs and JADUs and HCD guidance and to make further clarifications consistent with State law in order to ensure the City’s continued compliance with the letter and spirit of ADU laws.
435
2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

This ordinance is statutorily exempt under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.17 and Title 14, California Code of Regulations Section 15282(h) which exempts adoption of an ordinance regarding second units to implement provisions of Sections 66310, et. seq. of the Government Code SECTION II:

Section 17.29.030(H) is hereby added to read:

H. A deed restriction shall only be required for JADUs, in accordance with Section 17.29.200, and shall not be required for ADUs.

SECTION III:

Subsection A of Section 17.29.040 (Location and Number of ADUs and JADUs Permitted) shall be amended to read as follows:

A. Allowable Location and Number of JADUs.

1. JADUs are allowed only within the livable area of an existing or proposed single-family dwelling, or existing attached garage of a single-family dwelling.

2. One JADU is permitted per lot, if all of the following apply:
a. No expansion of the single-family dwelling or garage footprint shall occur to facilitate JADU construction.
b. The JADU shall comply with the requirements of Government Code Section 66333, Health and Safety Code Section 17958.1, and the California Building Code including:
i. Prior to occupancy, the JADU shall have a recorded deed restriction, satisfactory to the City and be filed with the City, that prohibits the sale of the JADU separate from the sale of the single-family residence except as provided by Government Code Section 66333 and shall include a statement that the deed restriction may be enforced against future purchasers and shall run with the land. ii. The JADU shall be restricted to the size and attributes shown on plans approved with the building permit.
iii. JADU occupancy shall be limited to no more than two persons consistent with California Health and Safety Code Section 17958.1. 436
3 iv. The JADU shall be constructed entirely within the walls of the proposed or existing single family residence and may be located within an attached garage but may not be in any other accessory structure.
v. The JADU shall include exterior access separate from the main entrance to the proposed or existing single-family residence.

3. The JADU shall, at a minimum, include all the following:
a. An efficiency kitchen with a cooking facility and appliances. b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.
c. A separate closet.
d. Light and ventilation conforming to the California Building Code. e. Either a separate bathroom containing a water closet, lavatory, and bathtub or shower or direct access to such facilities in the existing single-family residence.

SECTION IV:

Section 17.29.055 is hereby added to read:

17.29.055 ADUs and Historic Preservation
A. The City may apply design standards on ADUs to prevent adverse impacts on any real property that is listed in the California Register of Historical Resources.

B. ADUs in a historic district, and individually listed historic properties outside of a historic overlay district, are subject only to the applicable design standards for that property or district to the extent permitted by State law and any other appropriate objective design standards contained in this Code.

C. Garage doors on contributing structures in the historic districts and on individually listed historic resources shall be preserved in place but finished so that they are inoperable. Noncontributing garages and accessory structures with non-historic doors, including garage doors, may be replaced with a compatible door style or infilled in the original opening, provided that a historical assessment acceptable to the Community Development Director confirms that the garage or accessory structure is not eligible for listing as a contributing structure.

SECTION V:

Subsection B of Section 17.29.080 (ADU Setbacks) shall be amended to read as follows:

B. ADUs of 800 Square Feet or Less.
437
4 1. Setbacks of no more than four feet from the side and rear lot lines shall be required for an ADU that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure.

2. Front setbacks shall be pursuant to the setback for the zoning district, except that setback requirements will not be applied to prohibit ADU construction where there is no other feasible alternative to allow for construction of an 800 square feet ADU that meets height limits and complies with the four-foot side and rear yard setback requirements.

3. An Administrative Adjustment may not be granted to lessen required setbacks.

SECTION VI:

Section 17.29.090 (ADU and JADU Design Standards) shall be amended to read as follows:

17.29.090 ADU and JADU Design Standards
A. The City may impose standards, including, but not limited to, design and development standards, on ADUs, to the extent permitted by State law.

B. No provisions applied to ADUs, including, but not limited to, design and development standards, shall be so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of a homeowner to create accessory dwelling units in zones in which they are authorized.

C. An ADU or JADU that complies with the requirements of State law shall be subject only to objective design and development standards contained in or referenced by this Code, including, but not limited to, the following:

1. Design elements and detailing shall be continued completely around the structure.

Such design elements shall include window treatments, trim detailing, exterior wall materials, and color palette. Firewalls are not exempt from the required design elements.

2. At least two (2) building materials shall be used on any building frontage (excluding roof and foundation) in addition to glazing and railings. Any one material shall comprise at least 20% of the building frontage.

3. At least two (2) exterior colors shall be used. Elements that count toward this requirement include cladding material, trim/accent colors, and visually significant colors for doors, and similar elements. Primary colors shall be used as accent colors only.

4. Trash receptacles locations shall be identified on project plans and shall demonstrate screening from public view via equivalent-height landscaping or a solid wall or fence.

5. Linear streetscape appearance in the building facade shall be avoided by providing variations in horizontal plane in a minimum of 50% of the building front and street side elevations. Variations shall include indentations, recesses, or projections of two (2) feet 438
5 or greater. Vertical architectural elements (pilasters, columns, piers, other structural elements) shall vertically project a minimum of eight (8) feet in height and project a minimum of eight (8) inches from the building face.

6. Units shall include a minimum three (3) element(s) from the following list to add visual variety and interest to building facades and enhance the connection between public and private realms: eaves, cornices, trellises, overhangs, exposed structural elements such as rafters, recessed windows, columns, bay windows. Other elements may be approved if they provide equivalent visual variety and interest.

7. Trim surrounds shall be provided at all exterior window and door openings. Trim shall be substantial, visible, and at least two (2) inches in depth.

8. Classical window proportions shall be provided such as 2:1, 3:2, or 4:3.

9. No building facade may extend in a continuous plane for more than 20 feet without a window, door, variation in horizontal plane, or vertical architectural element.

10. For all new construction ADUs, roof forms and pitch shall match the principal residence, except that, if the roof pitch cannot match the principal residence, the pitch shall be constructed and maintained consistent with the architectural style of the primary residence.

SECTION VII:

A new Section 17.29.095 (Height Limits) is hereby added to read as follows:

17.29.095 Height Limits
A. 16 feet for detached ADUs.

B. 18 feet for detached ADUs on a lot within one-half mile of a major transit stop or transit corridor as defined by State law. An allowance of two additional feet may be allowed to accommodate a roof pitch that is aligned with the principal residence.

C. 18 feet for detached ADUs on a lot with an existing or proposed multi-family, multi-story residence.

D. 25 feet or the height limit for the underlying zone classification, whichever is lower, for ADUs that will be attached to the principal residence. The ADU shall not exceed two stories in height.

SECTION VIII:

Section 17.29.110 (Number of Bedrooms) is hereby deleted. 439
6 SECTION IX:

Subsection E to Section 17.29.130 is hereby added as follows:

C. The foregoing parking standards are not intended to prohibit ADUs on the same lots that new single- and/or multi-family dwelling units are being proposed, provided that the ADU meets all other specified requirements.

SECTION X:

Section 17.29.150 is hereby deleted.

SECTION XI:

Section 17 .29.200 Deed Restriction Required for JADU.

Recordation of a deed restriction, approved as to form by the City Attorney, shall be required for a JADU and shall:

A. Run with the land.

B. Be filed with the City after recording.

C. Prohibit the sale of the JADU separate from the sale of the primary dwelling.

D. Include a statement that the deed restriction may be enforced against future purchasers.

E. Deed restrictions for JADUs shall restrict the size and attributes as stated in the permit.

SECTION XII:

To the extent required to implement the provisions of this Ordinance, City staff is directed to modify any Administrative Policies in conflict herewith and return to the City Council for any City Council approvals deemed necessary.

SECTION XIII:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
440
7 SECTION XIV:

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 ___________________, 2024.

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

Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:

Mike 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 the ___ day of _____________, 2024, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2024 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
441
1 ORDINANCE NO. 20-24

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

ORANGE MUNICIPAL CODE UPDATING

ACCESSORY DWELLING UNIT PROVISIONS OF

THE ORANGE MUNICIPAL CODE IN RESPONSE TO

CHANGES IN STATE LAW AND GUIDANCE FROM

THE DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT
WHEREAS, in 2019, the State Legislature enacted new laws related to Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”), formerly known as “second units” or “granny flats, including Assembly Bills (“AB”) 68, 881, 587, 670 and Senate Bill (“SB”) 13; and
WHEREAS, in enacting new laws, the Legislature aimed to address barriers to the development of ADUs and JADUs that may occur under existing local ordinances and establish certain minimum standards for approving such dwelling units, and WHEREAS, on or about April 13, 2021, the City adopted Ordinance No. 03-21 codifying rules and regulations pertaining to ADUs and JADUs in accordance with State law mandates at that time and in efforts to address California’s continuing housing crisis; and WHEREAS, since 2020, the Legislature has made numerous changes to ADU law, as contained in, but not limited to, AB 671, 976, AB 897, 1332, 1033, which have made both substantive and non-substantive changes to the ADU and JADU laws; and WHEREAS, the State Legislature also recently re-codified ADU laws from Government Code Sections 65852.2, et. seq. to Government Code Section 66310, et. seq.; and WHEREAS, staff has reviewed Chapter 17.29 of the Orange Municipal Code (“OMC”), the Chapter enacted to comply with ADU laws, and has proposed numerous changes in order to be consistent with new State laws and Housing and Community Development Department (“HCD”) guidance; and
WHEREAS, the Planning Commission, having considered the proposed changes to the OMC at a public hearing held on May 6, 2024, and having received public testimony on the item, determined the proposed ordinance serves the City’s best interests and furthers the public health, safety and general welfare; and
WHEREAS, the City now desires to revise the Orange Municipal Code’s Chapter 17.29 to be consistent with the most recent changes to State law regarding ADUs and JADUs and Housing and Community Development Department (“HCD”) guidance and to make further clarifications consistent 442
2 with State law in order to ensure the City’s continued compliance with the letter and spirit of ADU laws.

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

SECTION I:

Section 17.29.030(H) is hereby added to read:

H. A deed restriction shall only be required for JADUs, in accordance with Section 17.29.200, and shall not be required for ADUs.

SECTION II:

Subsection A of Section 17.29.040 (Location and Number of ADUs and JADUs Permitted) shall be amended to read as follows:

A. Allowable Location and Number of JADUs.

1. JADUs are allowed only within the livable area of an existing or proposed single-family dwelling, or existing attached garage of a single-family dwelling.

2. One JADU is permitted per lot, if all of the following apply:
a. No expansion of the single-family dwelling or garage footprint shall occur to facilitate JADU construction.
b. The JADU shall comply with the requirements of Government Code Section 65822.22 66333, Health and Safety Code Section 17958.1, and the California Building Code including:
i. Prior to occupancy, the JADU shall have a recorded deed restriction, satisfactory to the City and be filed with the City, that prohibits the sale of the JADU separate from the sale of the single-family residence except as provided by Government Code Section 66333 and shall include a statement that the deed restriction may be enforced against future purchasers and shall run with the land. ii. The JADU shall be restricted to the size and attributes shown on plans approved with the building permit.
iii. JADU occupancy shall be limited to no more than two persons consistent with California Health and Safety Code Section 17958.1. 443
3 iv. The JADU shall be constructed entirely within the walls of the proposed or existing single family residence and may be located within an attached garage but may not be in any other accessory structure.
v. The JADU shall include exterior access separate from the main entrance to the proposed or existing single-family residence.

3. The JADU shall, at a minimum, include all the following:
a. An efficiency kitchen with a cooking facility and appliances. This includes a kitchen sink, cooking appliance and refrigeration facilities. b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.
c. A separate closet.
d. Light and ventilation conforming to the California Building Code. e. Either a separate bathroom containing a water closet, lavatory, and bathtub or shower or direct access to such facilities in the existing single-family residence.

SECTION III:

Section 17.29.055 is hereby added to read:

17.29.055 ADUs and Historic Preservation
A. The City may apply design standards on ADUs to prevent adverse impacts on any real property that is listed in the California Register of Historical Resources.

B. ADUs in a historic district, and individually listed historic properties outside of a historic overlay district, are subject only to the applicable design standards for that property or district to the extent permitted by State law and any other appropriate objective design standards contained in this Code.

C. Garage doors on contributing structures in the historic districts and on individually listed historic resources shall be preserved in place but finished so that they are inoperable. Noncontributing garages and accessory structures with non-historic doors, including garage doors, may be replaced with a compatible door style or infilled in the original opening, provided that a historical assessment acceptable to the Community Development Director confirms that the garage or accessory structure is not eligible for listing as a contributing structure.

SECTION IV:
444
4 Subsection B of Section 17.29.080 (ADU Setbacks) shall be amended to read as follows:

B. ADUs of 800 Square Feet or Less.

1. Setbacks of no more than four feet from the side and rear lot lines shall be required for an ADU that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure.

2. Front setbacks shall be pursuant to the setback for the zoning district, except that setback requirements will not be applied to prohibit ADU construction where there is no other feasible alternative to allow for construction of an 800 square feet ADU that meets height limits and complies with the four-foot side and rear yard setback requirements.

3. An Administrative Adjustment may not be granted to lessen required setbacks.

SECTION V:

Section 17.29.090 (ADU and JADU Design Standards) shall be amended to read as follows:

17.29.090 ADU and JADU Design Standards
A. The City may apply design standards on ADUs to prevent adverse impacts on any real property that is listed in the California Register of Historic Resources.

A. The City may impose standards, including, but not limited to, design and development standards, on ADUs, to the extent permitted by State law.

B. No provisions applied to ADUs, including, but not limited to, design and development standards, shall be so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of a homeowner to create accessory dwelling units in zones in which they are authorized.

C. An ADU or JADU that complies with the requirements of State law shall be subject only to objective design and development standards contained in or referenced by this Code, including, but not limited to, the following:

1. Design elements and detailing shall be continued completely around the structure.

Such design elements shall include window treatments, trim detailing, exterior wall materials, and color palette. Firewalls are not exempt from the required design elements.

2. At least two (2) building materials shall be used on any building frontage (excluding roof and foundation) in addition to glazing and railings. Any one material shall comprise at least 20% of the building frontage.

3. At least two (2) exterior colors shall be used. Elements that count toward this requirement include cladding material, trim/accent colors, and visually significant colors for doors, and similar elements. Primary colors shall be used as accent colors only. 445
5 4. Trash receptacles locations shall be identified on project plans and shall demonstrate screening from public view via equivalent-height landscaping or a solid wall or fence.

5. Linear streetscape appearance in the building facade shall be avoided by providing variations in horizontal plane in a minimum of 50% of the building front and street side elevations. Variations shall include indentations, recesses, or projections of two (2) feet or greater. Vertical architectural elements (pilasters, columns, piers, other structural elements) shall vertically project a minimum of eight (8) feet in height and project a minimum of eight (8) inches from the building face.

6. Units shall include a minimum three (3) element(s) from the following list to add visual variety and interest to building facades and enhance the connection between public and private realms: eaves, cornices, trellises, overhangs, exposed structural elements such as rafters, recessed windows, columns, bay windows. Other elements may be approved if they provide equivalent visual variety and interest.

7. Trim surrounds shall be provided at all exterior window and door openings. Trim shall be substantial, visible, and at least two (2) inches in depth.

8. Classical window proportions shall be provided such as 2:1, 3:2, or 4:3.

9. No building facade may extend in a continuous plane for more than 20 feet without a window, door, variation in horizontal plane, or vertical architectural element.

10. For all new construction ADUs, roof forms and pitch shall match the principal residence, except that, if the roof pitch cannot match the principal residence, the pitch shall be constructed and maintained consistent with the architectural style of the primary residence.

SECTION VI:

A new Section 17.29.095 (Height Limits) is hereby added to read as follows:

17.29.095 Height Limits
A. 16 feet for detached ADUs.

B. 18 feet for detached ADUs on a lot within one-half mile of a major transit stop or transit corridor as defined by State law. An allowance of two additional feet may be allowed to accommodate a roof pitch that is aligned with the principal residence.

C. 18 feet for detached ADUs on a lot with an existing or proposed multi-family, multi-story residence.
446
6 D. 25 feet or the height limit for the underlying zone classification, whichever is lower, for ADUs that will be attached to the principal residence. The ADU shall not exceed two stories in height.

SECTION VII:

Section 17.29.110 (Number of Bedrooms) is hereby deleted.

SECTION VIII:

Subsection E to Section 17.29.130 is hereby added as follows:

C. The foregoing parking standards are not intended to prohibit ADUs on the same lots that new single- and/or multi-family dwelling units are being proposed, provided that the ADU meets all other specified requirements.

SECTION IX:

Section 17.29.150 is hereby deleted.

SECTION X:

17.29.200 Deed Restriction Required for JADU.

Recordation of a deed restriction, approved as to form by the City Attorney, shall be required for any ADU or a JADU and shall:

A. Run with the land.

B. Be filed with the City after recording.

C. Prohibit the sale of the ADU or JADU separate from the sale of the primary dwelling.

D. Include a statement that the deed restriction may be enforced against future purchasers.

E. Deed restrictions for JADUs shall restrict the size and attributes as stated in the permit.

SECTION VIX:

To the extent required to implement the provisions of this Ordinance, City staff is directed to modify any Administrative Policies in conflict herewith and return to the City Council for any City Council approvals deemed necessary.
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7 SECTION XIII:

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

SECTION XIV:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause a summary of 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 ___________________, 2024.

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

Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:

Mike 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 the ___ day of _____________, 2024, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2024 was duly passed and adopted by the following vote, to wit:
448
8 AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
449

ACCESSORY DWELLING LTNIT ORDINANCE UPDATE
RESOLUTION NO. PC 14-24

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF ORANGE RECOMMENDING THAT THE
CITY COUNCIL ADOPT ORDINANCE NO. X)(.24

UPDATING ACCESSORY DWELLING UNIT PROVISIONS

OF THE ORANGE MUNICIPAL CODE IN RESPONSE TO

CHANGES IN STATE LAW AND GUIDANCE FROM THE

DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT
APPLICANT: CITY OF ORANGE
WHEREAS, in 2019, the State Legislature enacted new laws related to Accessory Dwelling Units ("ADUs") and Junior Accessory Dwelling Units ("JADUs"), formerly known as "second units" or "granny flats, including Assembly Bills ("AB") 68, 881,587,670 and Senate Bill ("SB") 13; and
WHEREAS, in enacting new laws, the Legislature aimed to address barriers to the development of ADUs and JADUs that may occur under existing local ordinances and establish certain minimum standards for approving such dwelling units, and WHEREAS, on or about April 73, 2021, the City adopted Ordinance No. 03-21 codiffing rules and regulations pertaining to ADUs and JADUs in accordance with State law mandates at that time and in efforts to address California's continuing housing crisis; and WHEREAS, since 2020, the Legislature has made numerous changes to ADU law, as contained in, but not limited to, AB 671, 976, AB 897, 1332, 1033, which have made both substantive and non-substantive changes to the ADU and JADU laws; and WHEREAS, the State Legislature also recently re-codified ADU laws from Government Code Sections 65852.2, et. seq. to Govemment Code Section 66310, et. seq.; and WHEREAS, the City now desires to revise the Orange Municipal Code's Chapter 17.29 to be consistent with the most recent changes to State law regarding ADUs and JADUs, and Housing and Community Development Department ("HCD") guidance, and to make further clarifications consistent with State law in order to ensure the City's continued compliance with the letter and spirit of ADU laws; and
WHEREAS, at the regularly scheduled Planning Commission meeting on April 15, 2024, the Planning Commission moved to continue the item to the next regularly scheduled Planning Commission meeting on May 6,2024; and
WHEREAS, the Planning Commission, having considered the proposed revisions to the OMC at a public hearing held on May 6, 2024, including review of the staff report, and having 450
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received public testimony on the item, has determined the proposed ordinance complies with state law and recommends approval thereof.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council approve the subject ordinance, attached hereto as Attachment A, based on the following:

SECTION 1. FINDINGS
The proposed Ordinance No. XX-24 amends existing provisions of the OMC to achieve compliance with state law.

1. The proposed Ordinance No. XX-24 supports the objectives and policies outlined in the General Plan Housing Element. Specihcally, the Ordinance will assist in providing housing to meet the needs of low-and moderate income households, remove govemmental constraints, promote housing opportunities for all persons, maximize future residential development potential, provide senior housing opportunities, facilitate infill construction and, provide workforce housing. The ordinance also incorporates provisions intended to preserve and protect the quality of life in established neighborhoods.

SECTION 2-ENVIRONMENTAL REVIEW
The proposed ordinance is statutorily exempt under the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080.17 and Title 14, California Code of Regulations Section 15282(h) which exempts adoption of an ordinance regarding second units to implement provisions of Sections 66310 of the Govemment Code.

ADOPTED this 6th day of May 2024.

Yazquez
Planning Commission Chair
I hereby certifr that the foregoing Resolution was adopted by the Planning Commission of the City of Orange at a regular meeting thereof held on the 6th day of May 2024, by the following vote:

AYES: Martinez, Vejar, Maldonado, and Tucker
NOES: McCormack, and Yazquez
ABSENT: Slmpson
Anna Pehoushek, FAICP
Assistant Community Development Director
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EXHIBIT A
RESOLUTION NO. PC 14.24
ZONE CHANGE NO. 1315-24

ADU ORDINANCE UPDATE
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ORDINANCE NO. XX-24

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

ORANGE MUNICIPAL CODE UPDATING

ACCESSORY DWELLING UNIT PROVISIONS OF

THE ORANGE MUNICIPAL CODE IN RESPONSE

TO CHANGES IN STATE LAW AND GUIDANCE

FROM THE DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT
WHEREAS, in 2019, the State Legislature enacted new laws related to Accessory Dwelling Units ("ADUs") and Junior Accessory Dwelling Units ("JADUs"), formerly known as "second units" or "granny flats, including Assembly Bills ("AB") 68, 881,587,670 and Senate Bill ("SB") 13; and
WHEREAS, in enacting new laws, the Legislature aimed to address barriers to the development of ADUs and JADUs that may occur under existing local ordinances and establish certain minimum standards for approving such dwelling units, and WHEREAS, on or about April 13, 2021, the City adopted Ordinance No. 03-21 codiffing rules and regulations pertaining to ADUs and JADUs in accordance with State law mandates at that time and in efforts to address California's continuing housing crisis; and WHEREAS, since 2020, the Legislature has made numerous changes to ADU law, as contained in, but not limited to, AB 677, 976, AB 897, 1332, 1033, which have made both substantive and non-substantive changes to the ADU and JADU laws; and WHEREAS' the State Legislature also recently re-codified ADU laws from Government Code Sections 65852.2, et. seq. to Government Code Section 66310, et. seq.; and WHEREAS, the City now desires to revise the Orange Municipal Code's Chapter 17.29 to be consistent with the most recent changes to State law regarding ADUs and JADUs and Housing and Community Development Department ("HCD") guidance and to make further clarifications consistent with State law in order to ensure the City's continued compliance with the letter and spirit of ADU laws.

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

SECTION I:

Section 17.29.030(H) is hereby added to read:
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H. A deed restriction shall only be required for JADUs, in accordance with Section 17.29.200, and shall not be required for ADUs.

SECTION II:

Subsection A of Section 17 .29.040 (Location and Number of ADUs and JADUs Permitted) shall be amended to read as follows:

A. Allowable Location and Number of JADUs.

1. JADUs are allowed only within the livable area of an existing or proposed singlefamily dwelling, or existing attached garage of a single-family dwelling.

2. One JADU is permitted per lot, if all of the following apply:
a. No expansion of the single-family dwelling or garage footprint shall occur to facilitate JADU construction.
b. The JADU shall comply with the requirements of Govemment Code Section 66333,Health and Safety Code Section 17958.1, and the Califomia Building Code including:
i. Prior to occupancy, the JADU shall have a recorded deed restriction, satisfactory to the City and be filed with the City, that prohibits the sale of the JADU separate from the sale of the single-family residence except as provided by Government Code Section 66333 and shall include a statement that the deed restriction may be enforced against future purchasers and shall run with the land. ii. The JADU shall be restricted to the size and attributes shown on plans approved with the building permit.
iii. JADU occupancy shall be limited to no more than two persons consistent with California Health and Safety Code Section 17958.1. iv. The JADU shall be constructed entirely within the walls of the proposed or existing single family residence and may be located within an attached garage but may not be in any other accessory structure.
v. The JADU shall include exterior access separate from the main entrance to the proposed or existing single-family residence.

3. The JADU shall, at a minimum, include all the following:
a. An efficiency kitchen with a cooking facility and appliances. 454
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b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.
c. A separate closet.
d. Light and ventilation conforming to the Califomia Building Code. e. Either a separate bathroom containing a water closet, lavatory, and bathtub or shower or direct access to such facilities in the existing single-family residence.

SECTION III:

Section 17.29.055 is hereby added to read

17.29.055 ADUs and Historic Preservation
A. The City may apply design standards on ADUs to prevent adverse impacts on any real property that is listed in the California Register of Historical Resources.

B. ADUs in a historic district, and individually listed historic properties outside of a historic overlay district, are subject only to the applicable design standards for that property or district to the extent permitted by State law and any other appropriate objective design standards contained in this Code.

C. Garage doors on contributing structures in the historic districts and on individually listed historic resources shall be preserved in place but finished so that they are inoperable. Noncontributing garages and accessory structures with non-historic doors, including garage doors, may be replaced with a compatible door style or infilled in the original opening, provided that a historical assessment acceptable to the Community Development Director confirms that the garage or accessory structure is not eligible for listing as a contributing structure.

SECTION IV:

Subsection B of Section 17.29.080 (ADU Setbacks) shall be amended to read as follows:

B. ADUs of 800 Square Feet or Less.

1. Setbacks of no more than four feet from the side and rear lot lines shall be required for an ADU that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure.

2. Front setbacks shall be pursuant to the setback for the zoning district, except that setback requirements will not be applied to prohibit ADU construction where there is no 455
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other feasible alternative to allow for construction of an 800 square feet ADU that meets height limits and complies with the four-foot side and rear yard setback requirements.

3. An Administrative Adjustment may not be granted to lessen required setbacks SECTION V:

Section 17.29.090 (ADU and JADU Design Standards) shall be amended to read as follows:

17.29.090 ADU and JADU Design Standards
A. The City may impose standards, including, but not limited to, design and development standards, on ADUs, to the extent permitted by State law.

B. No provisions applied to ADUs, including, but not limited to, design and development standards, shall be so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of a homeowner to create accessory dwelling units in zones in which they are authorized.

C. An ADU or JADU that complies with the requirements of State law shall be subject only to objective design and development standards contained in or referenced by this Code, including, but not limited to, the following:

1. Design elements and detailing shall be continued completely around the structure. Such design elements shall include window treatments, trim detailing, exterior wall materials, and color palette. Firewalls are not exempt from the required design elements.

2. At least two (2) building materials shall be used on any building frontage (excluding roof and foundation) in addition to glazing and railings. Any one material shall comprise at least20%o of the building frontage.

3. At least two (2) exterior colors shall be used. Elements that count toward this requirement include cladding material, trim/accent colors, and visually significant colors for doors, and similar elements. Primary colors shall be used as accent colors only.

4. Trash receptacles locations shall be identified on project plans and shall demonstrate screening from public view via equivalent-height landscaping or a solid wall or fence.

5. Linear streetscape appearance in the building facade shall be avoided by providing variations in horizontal plane in a minimum of 50oh of the building front and street side elevations. Variations shall include indentations, recesses, or projections of two (2) feet or greater. Vertical architectural elements (pilasters, columns, piers, other 456
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structural elements) shall vertically project a minimum of eight (8) feet in height and project a minimum of eight (8) inches from the building face.

6. Units shall include a minimum three (3) element(s) from the following list to add visual variety and interest to building facades and enhance the connection between public and private realms: eaves, cornices, trellises, overhangs, exposed structural elements such as rafters, recessed windows, columns, bay windows. Other elements may be approved if they provide equivalent visual variety and interest.

7. Trim surrounds shall be provided at all exterior window and door openings.

Trim shall be substantial, visible, and at least two (2) inches in depth.

8. Classical window proportions shall be provided such as2:1,3:2, or 4:3.

9. No building facade may extend in a continuous plane for more than 20 feet without a window, door, variation in horizontal plane, or vertical architectural element.

10. For all new construction ADUs, roof forms and pitch shall match the principal residence, except that, if the roof pitch cannot match the principal residence, the pitch shall be constructed and maintained consistent with the architectural style of the primary residence.

SECTION VI:

A new Section 17.29.095 (Height Limits) is hereby added to read as follows:
17 .29.095 Height Limits
A. 16 feet for detached ADUs
B. 18 feet for detached ADUs on a lot within one-half mile of a major transit stop or transit corridor as defined by State law. An allowance of two additional feet may be allowed to accommodate a roof pitch that is aligned with the principal residence.

C. 18 feet for detached ADUs on a lot with an existing or proposed multi-family, multi-story residence.

D. 25 feet or the height limit for the underlying zone classification, whichever is lower, for ADUs that will be attached to the principal residence. The ADU shall not exceed two stories in height.

SECTION VII:
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Section 17.29.110 (Number of Bedrooms) is hereby deleted SECTION VIII:

Subsection E to Section 17 .29.130 is hereby added as follows:

C. The foregoing parking standards are not intended to prohibit ADUs on the same lots that new single- and/or multi-family dwelling units are being proposed, provided that the ADU meets all other specified requirements.

SECTION IX:

Section 17.29.150 is hereby deleted.

SECTION X:

17.29.200 Deed Restriction Required for JADU.

Recordation of a deed restriction, approved as to form by the City Attomey, shall be required for a JADU and shall:

A. Run with the land.

B. Be filed with the City after recording.

C. Prohibit the sale of the A.Dtlor JADU separate from the sale of the primary dwelling.

D. Include a statement that the deed restriction may be enforced against future purchasers.

E. Deed restrictions for JADUs shall restrict the size and attributes as stated in the permit.

SECTION VIX:

To the extent required to implement the provisions of this Ordinance, City staff is directed to modiff any Administrative Policies in conflict herewith and retum to the City Council for any City Council approvals deemed necessary.

SECTION XIII
If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase 458
Resolution No. PC 14-24