Orange City Council
June 25, 2024

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 certifu 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 )
crTY oF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certifr 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
vote, to wit:
2024 was duly passed and adopted by the following
AYES:

NOES:

ABSENT:

ABSTAIN
COT]NCILMEMBERS:

COL|NCILMEMBERS:

COI.INCILMEMBERS:

COUNCILMEMBERS:
459
Resolution No. PC 14-24

Pamela Coleman, City Clerk, City of Orange
460
Agenda Item
Planning Commission
Item #: 4.1. 5/6/2024 File #: 24-0287
TO: Chair and Members of the Planning Commission
THRU: Anna Pehoushek, Assistant Community Development Director FROM: Arlen Beck, Associate Planner

1. SUBJECT
Accessory Dwelling Unit Ordinance Update (Continued from April 15, 2024).

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

3. RECOMMENDED ACTION
Adopt Planning Commission Resolution No. PC 14-24 entitled:

A Resolution of the Planning Commission of the City of Orange recommending that the City Council adopt an ordinance 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.

4. AUTHORIZING GUIDELINES
Orange Municipal Code (OMC) Section 17.08.020 authorizes the Planning Commission to review and make advisory recommendations to the City Council on Zoning Ordinance Amendments.

5. PROJECT BACKGROUND
The City of Orange has regulated accessory dwelling units (ADUs), previously known as “granny flats” or “second units” for thirty years. The law has evolved in order to increase the number of ADUs available in the housing market. The City has made numerous changes to its ADU ordinance over the years, summarized below:

In May 2003, in response to changes in state law, the City Council adopted Ordinance No. 8-03 to allow ministerial approval of an ADU of a minimum of 450 sq. ft. and a maximum of 640 sq. ft. in residential zoning districts provided that the lot was occupied by only a single-family residence.

In 2016, state ADU law was again amended to streamline the ADU approval process. The following year, in February 2017 the City Council adopted Ordinance No. 02-17 to again meet the requirements of state law. Key OMC updates at that time included: providing for efficiency units, adding restrictions pertaining to fire safety, adding water connection fee restrictions, clarifying OMC City of Orange Page 1 of 4 Printed on 5/2/2024
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provisions pertaining to setbacks and separation requirements, and adding more parking exemptions.

On April 13, 2021, the City Council adopted Ordinance No. 03-21, further amending and making clarifying changes to the OMC related to ADUs, to comply with updates to state law. Key OMC updates at that time included: allowing both an ADU and a Junior Accessory Dwelling Unit (JADU), allowing garage conversions, allowing ADUs in existing buildings, and allowing up to 1,000 sq. ft.

ADUs.

On January 1, 2023, new laws became effective which required updates to the City’s Municipal Code.

Additionally, in the process of reviewing the City’s Housing Element, the State of California Department of Housing and Community Development (HCD) provided comments on the City’s ADU ordinance.

The 2023 state laws primarily changed the following:
· Allow for additional height for some ADUs
· Allow for ADU construction in front yard setbacks
HCD’s comments on the City’s ADU ordinance include the following:
· OMC Section 17.29.040.A.3.a. requires existing regulations pertaining to the sink, cooking appliance and refrigeration facilities to be removed.
· OMC Section 17.29.110 A. cannot restrict number of bedrooms. · OMC Section 17.29.110 B. may not apply local design guidelines like a common living area requirement to units created.

6. PROJECT DESCRIPTION
The proposed ordinance brings the OMC into compliance with state law, while retaining those regulations allowed by the law. It also makes further clarifications consistent with state law to provide protections for neighborhood character and quality of life in Orange.

Current State law Compared with Proposed Ordinance
The following chart shows the mandatory provisions of the 2023 state law.

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 four-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 tall if located within a half-mile of a major transit stop or high quality transit corridor as defined by state law, 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 tall is allowed on lots with an existing or proposed Multifamily, multi-story residence. City of Orange Page 2 of 4 Printed on 5/2/2024 powered by Legistar™462
Item #: 4.1. 5/6/2024 File #: 24-0287
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 four-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 tall if located within a half-mile of a major transit stop or high quality transit corridor as defined by state law, 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 tall is allowed on lots with an existing or proposed Multifamily, multi-story residence.

Implementation of HCD Required Amendments
The proposed ordinance also amends the City’s existing ordinance to implement HCD’s comment pertaining to removal of references to sinks, cooking appliances, refrigeration facilities, number of bedrooms, and common living area.

In addition to amendments required by state law and the guidance from HCD, the deed restriction requirement for ADUs has been removed because the prohibition of the separate sale of an ADU from the primary unit is contained in state law. A deed restriction for JADUs is still in place restricting the maximum size, and separate sale of the JADU from the primary unit, as specified in state law.

Clarifications
Finally, the draft ADU ordinance also clarifies allowable requirements pertaining to certain historic structures, reiterating current state law. For example, 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. The City may also apply, and has only applied, objective design and development standards to ADUs and JADUs. For purposes of further clarification, the proposed ordinance lists certain objective design standards explicitly from other provisions of the Municipal Code. A redlined copy of the proposed Ordinance is provided in Attachment 2.

7. ANALYSIS AND STATEMENT OF THE ISSUES
Issue 1: Preemption by State law
Local ordinance deviations are highly limited by state law. The changes made by this update to the ADU ordinance will implement changes required by state law and guidance from HCD. However, the ADU ordinance will continue to regulate ADU size, setback, height, and objective design review criteria, as allowed under the law.

Issue 2: ADUs Allowed in the Front Yard Setback Area
A front yard setback requirement cannot preclude an ADU of 800 square feet or less from being built.

However, in historic districts, ADUs will not be allowed in front yard setbacks if it would cause adverse impacts on any real property that is listed in the California Register of Historical Resources.

Issue 3: ADU Height
As stated in the project description, state law now allows any attached ADU of 800 square feet or less to have a height of up 25 feet or the same height as the underlying zoning designation, whichever is less, and no taller than two stories. Additionally, detached ADUs within one-half mile of a major transit stop or transit corridor as defined by state law may now be up to 18 feet tall or 20 feet City of Orange Page 3 of 4 Printed on 5/2/2024
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major transit stop or transit corridor as defined by state law may now be up to 18 feet tall or 20 feet tall if needing to match the roof pitch of the principal residence. A major transit stop includes rail stations or bus routes with 15 minute or less bus stop intervals. Attachment 5 depicts areas qualifying for the additional detached ADU height.

8. PUBLIC NOTICE
On April 4, 2024, the City published notice of the Planning Commission public hearing in the Orange City News newspaper. Notification was also posted at City Hall and on the City website on that same date.

9. 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.

10. ADVISORY BOARD ACTION
No advisory board action was necessary for this ordinance. Staff recommends that the Planning Commission adopt Resolution No. PC 14-24.

11. ATTACHMENTS · Attachment 1 Planning Commission Resolution No. PC 14-24 with proposed ADU Ordinance (Clean Copy)
· Attachment 2 Proposed ADU Ordinance - Redlined Copy
· Attachment 3 Government Code Section 66310 - 66339
· Attachment 4 City Council Ordinance No. 03-21 - Existing ADU Ordinance · Attachment 5 Major Transit Stop Half Mile Buffer Map
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City of Orange
Planning Commission
May 06, 2024

MINUTES - FINAL
The Planning Commission of the City of Orange, California convened on May 6, 2024, at 7:00 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

1. OPENING/CALL TO ORDER
Chair Vazquez called the meeting to order at 5:37 p.m.

1.1 PLEDGE OF ALLEGIANCE
Commissioner McCormack led the flag salute.

1.2 ROLL CALL

Present: Martinez, Vejar, Maldonado, Tucker, McCormack, and Vazquez

Absent: Simpson

2. PUBLIC COMMENTS
None.

3. CONSENT CALENDAR

3.1. Approval of meeting minutes of the City of Orange Planning Commission Regular Meeting held on April 15, 2024.

ACTION: Approved minutes as presented.

Approval of the Consent Calendar
A motion was made by Vice Chair Martinez, seconded by Commissioner Tucker, to approve the Consent Calendar as presented. The motion carried by the following vote:

Ayes: Martinez, Vejar, Maldonado, Tucker, McCormack, and Vazquez Noes: None

Absent: Simpson

4. OLD BUSINESS

4.1. Accessory Dwelling Unit Ordinance Update (Continued from April 15, 2024).

Chair Vazquez opened the public hearing at 5:55 p.m.; there being no speakers, Chair Vazquez closed the public hearing.

A motion was made by Commissioner Maldonado, seconded by Commissioner Martinez, to adopt Planning Commission Resolution No. PC 14-24.

465
Planning Commission Minutes - Final May 6, 2024
Resolution No. PC 14-24. A Resolution of the Planning Commission of the City of Orange recommending that the City Council adopt an ordinance 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.

Ayes: Martinez, Vejar, Maldonado, and Tucker
Noes: McCormack, and Vazquez

Absent: Simpson

4.2. Public Hearing to consider an ordinance amending Chapter 17.44 of the Orange Municipal Code providing a mechanism for the transfer of development rights, and finding of CEQA exemption. (Continued from April 15, 2024).

Chair Vazquez opened the public hearing at 6:13 p.m.

Public Speakers:

The following spoke in opposition of the project: Chuck Kroukowski, Randy Murrietta, and Steven Borden.

Chair Vazquez closed the public hearing at 6:21 p.m.

A motion was made by Commissioner Maldonado, seconded by Commissioner McCormack, to adopt Planning Commission Resolution No. 11-24.

Resolution No. PC 11-24. A Resolution of the Planning Commission recommending that the City Council approve an ordinance of the City Council of the City of Orange amending Chapter 17.44 of the Orange Municipal Code adding a new Section

17.44.210 to establish a mechanism for the transfer of development rights for purposes creating opportunities for housing, open space, and trails including an editorial correction referencing transfer credits in section 17.44.210.E.2 and a recommendation that the City Council consider including properties with a Resource Area General Plan designation and Sand and Gravel zoning also be identified in the Ordinance as "Sending Areas".

Ayes: Martinez, Vejar, Maldonado, Tucker, McCormack, and Vazquez Noes: None

Absent: Simpson

5. ADJOURNMENT
There being no further business, the meeting was adjourned at 6:41 p.m.

The next Regular Planning Commission meeting will be held on May 20, 2024 at 5:30 p.m., in the Council Chamber, 300 E. Chapman Avenue, Orange California 92866. /s/Anna Pehoushek_______________________
Anna Pehoushek, FAICP
Assistant Community Development Director

466
ORDINANCE NO. 03- 21

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

OR NGE MUNICIPAL CODE TO ADD

DEFINITIONS, REVISE PROCEDURES FOR
REVIEW, . AND ; ESTABLISH STANDARDS FOR

PROCESSING APPLICATIONS FOR ACCESSORY

DWELLING UNITS
WHEREAS, on January 1, 2020, AB 68, AB 881, SB 13, AB 587, AB 670 and AB 671 became eff.ective, addressing barriers to the development of accessory dwelling units and junior accessory dwelling units that may occur under existing local ordinances and establishing certain minimum standards for approving such dwelling units; and WI3EREAS, tlie City,desires to revise the Orange Municipal Co ie to comply with state law.

NOW, THEREFORE, THE CITY COUNCIL OF TI3E CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

This ordinance is statutorily exempt under the California Environmental Quality Act CEQA") pursuant to Publ.ic 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 65852. 2 and 65852. 22 of the Government Code. Additionally, this ordinance is categorically exempt pursuant to Sections 15303 ( New Construction or Conversion of Small Structures) and 15305 ( Minor Alterations in Land Use/ Limitations).

Similarly, the ministerial approval of accessory dwelling units and junior accessory dwelling units is not a" project" for CEQA purposes, arid environmental review is not required.

SECTION II:

Oran.ge. Municipal Code Section 17. 04. 020, " A" Definitions, is hereby amended to revise the following definitions in their entirety:

ACCESSORY DWELLING . UNIT ( ADU)— An attached or detached permanent residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An ADU shall be accessory to the primary residence. It shall include permanent provisions for living, sleeping, eating, cooking and sanitation on the same parcel as the single- family or multifamily dwelling is or will be situated and shall include a common living area. The kitchen and common living area shall be of sufficient size to accommodate at least one person per bedroom. An ADU has the attributes of a private residence and not a boaxding house or dormitory, e.g. shall not have microwaves, sinks and/ or refrigerators in each bedroom; shall not have exterior access to each 467
bedroom; shall not advertise individual rooms. An accessory dwelling unit also includes the following:
1) An efficiency unit, as provided under Health and Safety Code Section 17958. 1; and 2) A manufactured home, as provided under Health and Safety Code Section 18007.

ACCESSORY STRUCTURE— A structure that is accessory and incidental to a dwelling located on the same lot.

ACCESSORY STRUCTURE, HABITABLE - An accessory structure constructed in accordance with the Uniform Building Code criteria for habitable space, which may include a bathroom or similar plumbing facilities, does not include a kitchen as defined by this code, and is located on a parcel developed with one or more existing dwelling units. Habitable accessory structures shall be functionally related to the principal residence. A habitable accessory structure is not a junior accessory dwelling unit or accessory dwelling unit and shall not have a separate utility meter or address.

SECTION III:

Orange Municipal Code Section 17. 04. 020, " A" Definitions, is hereby amended to add the following definitions:

ACCESSORY— Existing in a minor way. Subordinate and incidental both in size and in intensity of use to the primary use and structure.

ACCESSORY DWELLING iJNIT, JUNIOR ( JADU) — A unit that is no more than 500 square feet in size and contained entirely within a single- family residence. A JADU shall have independent cooking facilities, and may include separate sanitation facilities ( toilet and bathing facilities), or may share sanitation facilities with the existing structure.

ACCESSORY DWELLING UNIT PASSAGEWAY — A pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.

SECTION IV:

Orange Municipal Code Section 17. 04. 020, " A" Definitions, is hereby amended to delete the following definition:

ACCESSORY SECOND HOUSING UNIT.

SECTION V:

Orange Municipal Code Section 17. 04. 021, " B" Definitions, is hereby amended to revise the following definitions in their entirety:

BEDROOM— Any habitable room in a dwelling unit other than a bathroom, kitchen, dining room or living room with the following features: an interior door that can be closed or an opening 468
into the room in which an interior door or double door can be easily installed; a window; and a closet or room for a wardrobe in addition to a bed. In general, a bedroom may not contain a door directly to the outside, facilities for a sink, refrigerator or microwave, e.g., a wet bar, a kitchenette, or infrastructure that can be easily converted to a wet bar or kitchenette, e.g., GFCI outlets.

SECTION VI:

Orange Municipal Code Section 17. 04. 026, " G" Definitions, is hereby amended to delete the following definition:

GRANNY" HOUSING
SECTION VII:

Orange Municipal Code Section 17. 04. 035, " P" Definitions, is hereby amended to add the following definitions:

PRIMARY RESIDENCE or PRIMARY DWELLING— A residence located on a lot zoned for a residential dwelling( s) and consisting of at least 50% greater floor space than any other dwelling on the lot. A primary residence has direct utility connections, is typieally the first residence constructed on a lot, and is the largest unit when an accessory dwelling unit is constructed concurrently. Multi- family structures are a conglomerate of two or more dwelling units that together form the primary residence. Accessory Dwelling Units are not primary residences.

PRINCIPAL BUILDING,- RESIDENTIAL- An existing or proposed legal single- family, duplex, or multiple- family dwelling unit, as contrasted with an accessory structure. An attached garage shall not be considered part ofthe residential principal building except as specifically stated in this title.

SECTION VIII:

Orange Municipal Code Section 17. 10. 060. C," Site Plan Review— When Site Plan Review is Required," is hereby amended in its entirety to read as follows:

C. When Site Plan Review is Required. Site plan review shall apply to any new use of previously vacant land, new construction, or rehabilitation or expansion of existing structures in all zones. Exception: Site plan review shall not be required for construction of a new single- family residence, ADU or JADU unit that otherwise complies with Government Code section 65852. 2, or rehabilitation of an existing single- family residential structure in zoning districts permitting such use. Expansion of an existing single- family residence is also exempt from site plan review. 469
SECTION IX:

Orange Municipal Code 17. 13. 030 - Permitted Uses, Table 17. 13. 030, is hereby amended in pertinent part to read as follows:

Zonin RES COMM MIXED USE IND AG/OS PI OVERLAY SAND
I : ' .

Housing—Includes all structures permitted as living quarters whether they be for short or long-term occupancy. Includes all uses identified in California Building Code definitions that are preceded with main entry words e terms that include one of the following: Dwelling, Unit, House, Housing, Congregate, Residence, Multifamily, Dormitory, Home( s), Hotel, Motel, Residential Care Facility, Residential Facility or, Lodging.

Y
Accessory
Dwelling A* A* A* A* A* A* - A* A* A* A* A* - A* A* A* A* A* A Unit
Accessory
Dwelling A* A* A* A* A* A* - A* A* A* A* A* - A* A* A* A* A* A ' Unit, Junior
470
SECTION X:

Orange Municipal Code Section 17. 13. 040. A, " Special Use Regulations — Accessory Dwelling Unit," is hereby revised to delete Sections 17. 13. 040.A.1 through 17. 13. 040.A.15 in their entirety, and to revise Section 17. 13. 040.A in its.entirety to read as follows:

A. Accessory Dwelling Unit, Including Junior Accessory Dwelling Unit. Accessory Dwelling Units and Junior Accessory Dwelling Units shall comply with Chapter 17. 29.

SECTION XI:

Orange Municipal Code Table 17. 14. 120, " Required Distances Between Buildings," is hereby revised in its entirety to read as follows:

Table 17. 14. 120

REQUIRED DISTANCES BETWEEN STRUCTURES
Minimum Required Distance Between Structures on the Same Lot Principal Structures ( a), ( b)
Acces§ory Structures
b)
Number of Front/ Any Other All Other Minimum Distance
Structures Building Wall Configurations Between Structures One N/A N/A 6 feet
Two to Four 15 feet 8 feet 6 feet
25 feet from view allowing windows in one
structure to facing windows in any adjacent
Five or More structure. 15 feet minimum between solid facing 6 feet walls; or when windows are located on only one
facing wall:

NOTES:
a) For obliquely aligned buildings, the required distance between two principal structures may be decreased by up to five feet if the distance at the opposite corner is increased by an equal or greater distance.
b) Excludes patio covers, eaves, canopies; and breezeways.

SECTION XII:

Orange Municipal Code Section 17. 14. 130, " Minimum Floor Area in R- 3 and R-4 Districts," is hereby revised in its entirety to read as follows:

The minimum floor area for primary residences shall be as follows:

A. Studio Units. 550 square feet.
471
B. , Bachelor and One Bedroom Units. 600 square feet.

C. Units Having More Than One Bedroom. 600 square feet plus 150 square feet for each additional bedroom.

SECTION XIII:

Orange Municipal Code Section 17. 14. 160. B, " Accessory Structures, Garages, and Accessory Dwelling Units— Principal Structure Required," is hereby revised in its entirety to read as follows:

B. Principal Structure Required. Accessory structures or garages shall only be permitted on a lot developed with an existing legal single- family dwelling unit, duplex dwelling unit, or multiple-family dwelling units under the same ownership. ADUs and JADUs shall only be permitted as authorized in Chapter 17. 29. For purposes ofthis section the term accessory structure shall mean either habitable or non- habitable accessory structures.

SECTION XIV:

Orange Munieipal Code Section 17. 14. 160. C, " Accessory Structures, Garages, and Accessory Dwelling Units — Attached Accessory Structures, Garages, or Accessory Dwelling Units," is hereby revised in its entirety to read as follows:

C. Attached Accessory Structures, Garages, or Accessory Dwelling Units. Where a garage, accessory structure, or ADU is attached to and made a part of the principal structure, at least fifty percent ( 50%) of the length of one of the walls of the accessory structure; garage, or ADU shall be an integral part of the principal structure, and the garage or accessory structure shall comply in all respects with the requirements ofthis title applicable to a principal structure. ADUs shall comply with•requirements of Chapter 17.29.

SECTION XV:

Orange Municipal Code Section 17. 14. 160. D, " Accessory Structures, Garages, and Accessory Dwelling Units — Detached Accessory Structure, Garages, or Accessory Dwelling Units," is hereby revised in its entirety to read as follows:

D. Detached Accessory Structure, Garages, or Accessory Dwelling Units. Where a garage, accessory structure, or ADU is detached from the principal structure, the setback requirements outlined in Table 17. 14. 160. D shall apply. Setback requirements in Table

17. 14. 160. D shall not apply to that portion of an ADU converted from an existing permitted dwelling unit area or, that portion of an ADU converted from an existing permitted accessory structure, or to ADUs qualifying for a lesser setback pursuant to Chapter 17. 29. 472
SECTION XVI:

Orange Municipal Code Table 17. 14. 160.A is hereby renumbered as Table 17. 14. 160.D, Setback Requirements," and is amended in its entirety to read as follows:

Table 17. 14. 160. D

SETBACK REQUIREMENTS
Detached Accessory Structures, Garages, and Accessory Dwelling Units Greater than 800 Square Feet
Minimum
Minimum
Minimum Minimum
Street Side
Minimum
Distance from
Front Yard Interior Side
Yard Setback
Rear Yard
Zone Principal •
Setback Yard Setback
of Corner or
Setback
Structure
feet) ( a) ( in feet)
Reverse
feet) ( a)
in feet) Corner Lot
in feet) ( a)
Rl-6 through Rl-R . 6 20 0 ( c,d, e, 10 0 ( b,c,d,e,
R2 through R2- 8 6 20 0 ( c,d, e, 10 0 ( b, c,d,e;
R-3 and R-4 6 20 0 ( c,d, e, 10 0 ( b, c,d,e, fl
NOTES:
a) In all cases, detached garages and carports which open onto an abutting street shall be set back a minimum oftwenty( 20) feet from the property line. b) The accessory structure may abut the rear lot line only if it is not intended for habitation interior is unfinished, such as a
garage, workshop, storage shed, etc.) and the accessory structure and permitted extensions of the primary structure do not cover more than forty percent( 40%) ofthe required rear yard area. Also, a minimum five-foot rear yard setback is required for a corner or reverse corner lot.
c) No eave, projection or overhang shall extend over a property line. d) Precautionary measures shall be taken to ensure runoff is deflected away from side and rear property lines.
e) Building height shall not exceed ten feet for that portion of the accessory structure or ADU that occurs within the side or rear setback areas, as defined for principal structures.

Any accessory structure intended for habitation ( having a finished interior, insulated ceiling and/ or walls, and which can be temperature controlled, such as a guest room, recreation room, office, etc.) or ADU greater than 800 square feet shall conform to the . setback requirements for a principal building, unless otherwise authorized by Chapter

17. 29, or as required by state law.

SECTION XVII:

Orange Municipal Code Section 17. 14. 160. E, " Accessory Structures, Garages, and Accessory Dwelling Units — Square Footage Limitation," is hereby revised in its entirety to read as follows:
473
E. Square Footage Limitation. The total aggregate square footage of all attached or detached accessory structures on a lot shall not exceed fifty percent ( 50%) of the square footage of the principal structure, provided that one ADU of 800 or fewer square feet shall be allowed in the event the aggregate is exceeded.

1. Habitable accessory structures greater than 450 gross aggregate square feet are allowed subject to the approval of a conditional use permit by the Zoning Administrator in accordance with Section 17. 10. 030.E. 1. d.

2. Attached and detached garages shall not be considered as living area square footage of the principal structure.

SECTIOla1 XVIII:

Orange Municipal Code Section 17. 14. 160. F, " Accessory Structures, Garages, and Accessory Dwelling Units— Interior Plumbing," is hereby revised in its entirety to read as follows:

F. Interiar Plumbing. Interior sanitation facilities are required for all ADUs. Interior plumbing facilities are permitted in all other accessory structures as follows:

1. Any non-habitable accessory structure, such as a workshop or garage, may contain a utility sink, washer and dryer, and/ or water heater or other accessory plumbing facilities deemed similar by the Community Development Director. In the case of residential garages, such facilities are allowed provided that the garage remains available for parking.

2. A conditional use permit is required for plumbing facilities in habitable accessory structures of any size on lots less than 20,000 square feet.

3. No conditional use permit is required for plumbing facilities in habitable accessory structures of less than 450 gross square feet on lots larger than 20,000 square feet.

4. A conditional use permit is required for plumbing facilities in habitable accessory structures of 450 gross square feet or greater on lots larger than 20, 000 square feet.

SECTIOlV XIX:

Orange Municipal Code Table 17. 14. 160.B is hereby renumbered as Table 17. 14. 160.F, Plumbing in Accessory Structures," and is amended in its entirety to read as follows:
474
Table 17. 14. 160. F

PLUMBING IN ACCESSORY STRUCTURES
Lot Size Lot Size
20, 000 > 20, 000
sq. ft. sq: ft.

Nori-liabitable of any size with washing machine, water heater, utility sink, or other facilities deemed similar by the Community Development P P Director
Habitable, less than 450 gross aggregate square feet with plumbing CUP P facilities
Habitable, more than 450 gross aggregate square feet with or without

CUP CUP
plumbing facilities
Accessory Dwelling LTnit Per Chapter 17. 29
P - Permitted
CUP - Conditional Use Permit( Zoning Administrator)
SECTION XX:

Orange Municipal Code Chapter 17. 29, " Accessory Dwelling Units and Junior Accessory Dwelling Units," is hereby added to read as follows:

Chapter 17. 29— ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS

17. 29. 010 - Purpose and Intent.

The purpose of this chapter is to comply with state law pertaining to Accessory Dwelling Units ( ADU) and Junior Accessory Dwelling Units ( JADU) and further the implementation of the General Plan.

17. 29. 020 - Permitted Uses.

A. Table 17. 13. 030 indicates all zones where ADUs and JADUs may be permitted subject to the regulations in this chapter.

B. ADUs are limited to properties zoned to allow single- family or multifamily dwellings when the property includes a proposed or existing primary residence in the form of a single- family or multifamily dwelling. Properties zoned to allow residential uses exclusively as an accessory use, or as a use that is not permanent long-term housing, shall not be eligible for an ADU or JADU unless the property is exclusively developed with a primary, legal-nonconforming, long-term, permanent residential use.
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C. JADUs are limited to properties zoned to allow single- family dwellings when the property includes a proposed or existing primary residence in the form of a single-family dwelling.

D. ADUs and JADUs shall be an accessory use only, as defined herein.

E. ADUs may be located in an accessory structure: JADUs shall be located in a portion of a proposed or existing primary residence in the form of a single- family dwelling.

17. 29. 030— Applications for ADUs or JADUs
A. Application Form Required. A completed Community Development Department Accessory Dwelling Unit Application (ADU Application) provided by the Planning Division of the Community Development Department is required for an ADU or JADU.

B. Application Fee. A fee commensurate to the fee schedule cost for Administrative Design Review shall be charged for review and ministerial approval of a completed application.

C. Contents of Applications. The completed ADU Application shall include the application and all required application materials specified in the application packet.

D. Acceptance of Applications. A Community Development Department ADU Application shall be accepted and deemed complete upon receipt by the City of all information and submittal materials required in the application submittal checklist, including review fees.

E. Ministerial Approval of Applications. An ADU Application shall be considered without discretionary review or a hearing and approved ministerially if it meets the requirements of this chapter.

F. Processing Time. The City shall act on the ADU Application to create an ADU or a JADU within 60 days from the date an application is deemed complete.

1. If the ADU Application is submitted with a permit application to create a new single- family dwelling on the lot, the City may delay acting on the ADU Application until the City permits the new single- family dwelling, but the ADU Application shall be considered without discretionary review or hearing.

2. Ifthe applicant requests a processing delay, the 60- day time period shall be tolled for the period of the delay.

G. Building Permit Required. Subsequent to an approved ADU Application, a building perrnit application shall be submitted with required plans for plan check and shall be processed subject to requirements and timelines equal to plan checks with commensurate floor area and building type.
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17. 29. 040— Location and Number of ADUs and JADUs Permitted.

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 ofthe following apply:
a. No expansion ofthe single-family dwelling or garage footprint shall occur to facilitate JADU construction.
b. The JADU shall comply with the requirements ofGovernment Code Section 65852.22, Health and Safety Code Section 17958. 1, and the California Building Code including:
1) Prior to occupancy, the JADU shall have a recorded deed restriction, satisfactory to the City, that prohibits the sale of the JADU separate- from the sale o£ the single-family residence and shall include a statement that the deed restriction may be enforced against future purchasers and shall run with the land.
2) The JADU shall be restricted to the size and attributes shown on.plans.approved with the building permit.
3) JADU occupancy shall be limited to no more than two
persons consistent with California Health and Safety Code Section 17958. 1. 4) 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.
5) 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 kitchen sink, cooking appliance and refrigeration facilities, each having a clear working space of not less than 30 inches in front. b. 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. 477
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.

B. Allowable Location and Number ofADUs.

1. Pursuant to the regulations ofthis chapter, ADUs shall be either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses; or an accessory structure, or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling.

2. One ADU is permitted on a lot with a proposed or existing single-family dwelling.

3. Attached ADUs are allowed within the proposed or existing living area of a single- family dwelling, or within existing non- habitable space attached to a single- family dwelling, including attached garages. New construction ADUs attached to an existing singlefamily dwelling are allowed as follows:
a. One attached ADU is permitted per lot, where no detached ADU exists. An existing JADU may be converted to an attached ADU permitted by this subsection if no attached or detached ADU exists.
b. In addition to meeting all requirements ofthis chapter, the following shall apply:
1) Expansions of existing non-habitable accessory structures attached to the primary single- family dwelling or expansions of existing living area for the creation of an ADU, including attached garages, shall not exceed the following:
i. That square footage needed to bring the total square footage of the ADU up to 850 square feet for a one bedroom unit or 1000 square feet for a two or more bedroom unit, when zoning district setbacks are maintained. ii. 800 square feet where setbacks less than zoning
district standards but not less than four- feet can be maintained. iii. No more than 150 square feet beyond the same
physical dimensions of the converted space, only if needed to accommodate ingress and egress, which may occur in side or rear setbacks ifacceptable for fire and safety. 2) The ADU shall have exterior access separate from the main entrance ofthe proposed or existing single-family dwelling.

4. Detached, new construction or repurposed existing accessory structure conversion ADUs on a lot with a proposed or existing single-family dwelling are allowed as follows:
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a. One detached, new construction, or repurposed existing accessory structure conversion ADU is permitted per lot with a proposed or existing single- family dwelling where no attached ADU exists.
b. In addition to meeting all requirements of this chapter, distances between buildings shall be provided pursuant to Table 17. 14. 120, unless legal nonconformity of a repurposed building exists pursuant to Chapter 17. 38.

5. ADUs within portions of existing multifamily dwelling structures are allowed as follows:
a. A minimum of one ADU and a maximum of up to 25 percent of the number of existing multifamily dwelling units are permitted within existing multifamily dwelling structures. The ADUs must be within the portions the existing multifamily dwelling structure that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings.
b. In addition to meeting all requirements ofthis chapter, the.following shall apply:
1) All calculations resulting in fractional units shall be rounded down to the nearest whole number.
2) An ADU greater than 800 square feet shall not exceed fifty percent( 50%) of the square footage ofthe largest multifamily dwelling unit. 3) Addition of another principal dwelling unit to a lot is not permitted as long as an ADU is present.

6. Detached ADUs on lots with an existing multifamily dwelling are allowed as follows:
a. Not more than two detached ADUs are permitted.
b. In addition to meeting all requirements ofthis chapter, the following shall apply:
1) Distances between buildings shall be provided pursuant to Table 17. 14. 120
2) Addition of another principal dwelling unit to a lot is not permitted as long as an ADU is present.
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17. 29. 050— JADU and ADU Maximum Size.

A. Junior Accessory Dwelling Units.

1. A JADU may not be smaller than the minimum efficiency unit size established in Health and Safety Code Section 17958. 1, currently set at 150 square feet.

2. A JADU may not exceed 500 square feet.

B. Accessory Dwelling Units.

1. No ADU with fewer than two bedrooms may exceed 850 square feet except for ADUs constructed within the living area of an existing single-family dwelling or existing floor area of a detached accessory structure.

2. No ADU with two or more bedrooms may exceed 1, 000 square feet, except for ADUs constructed within the living area of an existing single- family dwelling or existing floor area of a detached accessory structure.

3. When an ADU is constructed solely through the conyersion of an existing building or structure or in the same location and to the same dimensions as an existing structure, it shall be limited in size to the existing square footage of the building or structure converted or replaced, except that the existing building or structure may be expanded up to 150 sq. ft. for the purposes of ingress and egress to the ADU only.

17. 29. 060— Ratio ofADU to Primary Dwelling Size.

A. Single- Family Dwellings. The total floor area of either an attached or detached ADU shall not exceed fifty percent( 50%) ofthe existing primary single- family dwelling, provided that an ADU of at least 800 square feet is permitted.

B. Multi-Family Dwellings. An ADU greater than 800 square feet shall not exceed fifty percent( 50%) ofthe square footage ofthe largest existing multifamily dwelling unit, provided that an ADU of at least 800 square feet is permitted.

17. 29. 070— ADUs and JADUs in Density Calculations.

A. ADUs and JADUs shall not be considered to exceed the allowable density for the lot upon which they are located.

B. Although ADUs and JADUs are not considered as exceeding allowable density for the lot, the square footage of all the structures on a lot, including existing ADUs and JADUs, and both habitable and non-habitable accessory structures are to be included in calculations toward maximum floor area ratio or lot coverage for additions to the primary dwelling unit, including JADUs, and for the construction of any subsequent accessory structures. 480
1729. 080— ADU Setbacks. .

A. Any Size ADU Within Existing Building Area. No setback shall be required for an existing living area or accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an ADU or to a portion of an ADU.

Portions of the ADU constructed outside of the existing structure shall comply with the setbacks ofthe zoning district.

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.

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

C. ADUs greater than 800 Square Feet.

1. Side and rear setbacks of no more than four feet shall be required for any ADU in excess of 800 square feet.

2. Front setbacks shall be pursuant to the setback for the zoning district.

D. Fire and Safety Setbacks. Setbacks in all instances shall be sufficient for fire and safety, as determined by City fire and safety personnel.

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.

B. The City may impose standards including, but not limited to, design, development, and historic district design standards on ADUs. ADUs in a historic district shall adhere to the Historic Preservation Design Standards for that district.

C. For all new construction ADUs, roof forms and pitch shall match the principal residence.

D. Any garage door( s) shall be removed from a garage or other accessory structure that is converted to an ADU or JADU, and the opening shall be treated and finished to match the building.
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E. Exception. An ADU or JADU that complies with the requirements of Government Code section 65852. 2( e) shall not be subject to design and development standards unless otherwise provided herein.

17. 29. 100 - Lot Size.

There shall be no minimum lot size in order to construct an ADU or JADU.

17. 29: 110 - Number of Bedrooms.

To ensure the accessory status of ADUs, to provide for reasonable livability, and to accommodate differing bedroom counts to fulfill diverse living needs in the community, the number of bedrooms in an ADU or JADU sliall be proportionate to the square feet of living area for the ADU or JADU as follows:

A. ADUs or JADUs 150 to 500 square feet shall be limited to one bedroom.

B. ADUs 501 to 1, 000 square feet shall be limited to two bedrooms.

C. ADUs created from repurposed accessory structures having more than 1, 000 square feet may have one additional bedroom for each 500 square foot increment of living area.

17. 29. 120 - Rental, Occupancy, and Conveyance.

A. An ADU may be rented separate from the primary residence, but may not be sold or otherwise conveyed separate from the primary residence.

B., Owner occupancy is not required for an ADU or primary residence until after January 1, 2025, at which time owner occupancy shall be required for new ADUs ifthe applicable provision of state law is not extended.

C. Owner- occupancy is required for a single- family dwelling with a JADU. The owner may reside in either the remaining portion of the single- family dwelling or in the JADU. Owneroccupancy shall not be required ifthe owner is another governmental agency, land trust, or housing organization.

D. ADU and JADU rentals shall be for a term longer than 30 days and shall not be eligible as a short term rental.
482

17. 29. 130— Parking.

A. No additional parking shall be required in association with the creation of a JADU.

However, any required parking for the primary residence that is eliminated for the creation of a JADU shall be replaced on- site in conformance with all requirements of Chapter 17. 14:

B. Except as specified in Section 17. 29. 130. D, an ADU requires one additional parking space per ADU or per bedroom, whichever is less.

1. Required parking spaces may be provided as tandem parking on a driveway only ifthe required parking space is not within the setback established for the zoning district.

2. Required parking spaces may also be provided in a tandem configuration within a carport or garage meeting the setback requirements ofthe zoning district.

3. Each parking space must maintain 20 feet deep by 10 feet wide interior clear dimensions.

4. In the event that required ADU parking is unable to be provided pursuant to subsections 1 or 2 above, and the parking area meeting the dimensions of subsection 3 can be accommodated on- site within required setbacks, an alternate parking location shall be determined by the Community Development Director.

C. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off street parking spaces are not required to be replaced. Only those portions of garage, carport, or covered parking structure necessary to accommodate the ADU are authorized for demolition. Any remaining area with interior dimensions of at least 18 feet long by 9 feet wide shall remain as parking when required for the primary residence.

D. No parking is required for an ADU in any of the following instances:

1.. The ADU is located within one-half mile walking distance of public transit . as defined by the Department of Housing and Community Development.

2. The ADU is located within an architecturally and historically significant historic district.

3. The ADU is part of the proposed or existing primary residence or an accessory structure.

4. In the event on-street parking permits are required but not offered to the occupant of the ADU.

5. When there is a permanently reserved parking space or parking facility specifically for a car share vehicle located within one block of the accessory dwelling unit. 483

17. 29. 140 - Open Space.

Open space requirements of Sections 17. 14. 110 and 17. 19. 090 are not applicable for the construction of an ADU up to 800 square feet but shall apply for an ADU greater than 800 square feet.

17. 29. 150— ADU and JADU Height.

ADUs and JADUs nay not exceed the greater of 16 feet in height or the height of existing space being converted.

17. 29. 160 - Nonconformities. J
A. The correction of nonconforming zoning conditions shall not be required for the creation of an ADU or JADU. However, all space for occupancy and all newly permitted construction must meet fire and building and safety codes.

B. A single-family residentially designated property with an existing legal or legally non- conforming. accessory dwelling unit shall not be considered a multiple- family property and the existing, subsequently constructed, dwelling unit shall be considered an ADU, regardless of size, location, or configuration.

17. 29. 170 - Fire Sprinklers.

The installation of fire sprinklers shall not be required in an ADU if sprinklers are not required for the primary residence. Construction of an ADU may impose fire sprinkler requirements for the primary residence and ADU.

17. 29. 180— Impact Fees.

No impact fees shall be imposed upon the development of an ADU less than 750 square feet. Impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit.

17. 29. 190— Prohibited Dwelling Units.

A. The following ADUs and JADUs proposed or created after adoption of this ordinance are prohibited:

1. Any ADU or JADU with no primary dwelling existing or proposed on- site.

2. An attached or detached ADU greater than 1, 000 square feet except for an ADU constructed within the floor area of an existing single- family dwelling or existing detached accessory structure.
484

3. An ADU with one or fewer bedrooms and greater than 850 square feet except for an ADU constructed within the floor area of an existing single-family dwelling or existing detached accessory structure.

4. An ADU on property not zoned for single- family residential, duplex residential, multi- family, or mixed use. An exception shall be for properties developed with an existing legal single- family residence, continually used as a residence, as the sole use of the property and the property is legally nonconforming only due to non-residential zoning.

5. A JADU on any property that does not consist of a single-family residence as the primary use.

6. A JADU over 500 square feet.

7. Any ADU or JADU that does not meet the requirements of this chapter.

B. The following are not an ADU or JADU and may not be occupied as a permanent dwelling unit in any residential zoning district nor may permanent utility connections be provided for them:

1. Park trailers as defined in Health and Safety Code Section 18009. 3.

2. Recreational vehicles as defined in Health and Safety Code Section 18010.

3. Trailer coaches as defined in Vehicle Code Section 635.

17. 29. 200 - Deed Restriction Required
Recordation of a deed restriction, approved as to form by the City Attorney, shall be required for any ADU or 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.
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17. 29. 210— General ADU requirements
A. No passageway shall be required in conjunction with construction of an ADU.

B. An ADU shall have an individual numeric address provided on-site in a location visible from the public right- of-way. Numbers shall be assigned by the Department of Public Works.

C. No fencing that separates an ADU from the existing or proposed primary single family dwelling is permitted.

D. The occupants of a JADU or ADU shall be permitted egress over all areas of the property that are not covered with a structure.

E. If ambiguity arises concerning the application of any provisions of this chapter, the Community Development Director shall provide an interpretation in furtherance of state law for the provision of housing.

SECTIOloT XXI:

Orange Municipal Code Table 1.7. 34. 060.A, "Off-Street Parking and Loading— Required Number of Parking Spaces for Residential Uses," is hereby amended in its entirety to read as follows:
able 17. 34. 060.A

REQUIRED NUMBER OF PARHING SPACES FOR RESIDENTIAL USES

US REQUIRED NUMBER OF SPACES
Accessory Dwelling Unit Parking shall be provided as specified in Chapter 17. 29. 2 enclosed garage spaces/ unit up to 4 bedrooms accessed by a 12 foot wide 20 foot long driveway. For 5 or more bedrooms, 1 additional enclosed space. For bedroom additions to homes built prior to the effective date of Ordinance 17- 08, refer to Section

17. 34. 020.A. Enclosed or covered spaces demolished or Single- family Dwelling converted by creation of an ADU shall not require replacement.

For PUDs, units with 3 or more bedrooms shall provide an additional 1. 5 guest parking spaces per dwelling unit. Of this requirement, 1 open parking space may be provided at the residence subject to compliance with Section 17. 16. 060. 486
2 parking spaces per unit, one of which shall be in an enclosed Duplex, Duplex Residential garage. Enclosed or covered spaces demolished or converted by creation of an ADU shall not require replacement.

Development Size- 3 units to 50 units Development Size- 51+ Units If unenclosed if unenclosed
resident parking is resident parking is
provided ( e. g. If enclosed resident provided( e. g. If enclosed resident parking structure, parking is provided: parking structure( s), parking is provided:
surface parking lots, surface parking lots,
carports): carports):

Studio- 1. 3 Studio- 1. 4 Studio- 1. 2 Studio- 1. 4
spaces/ unit spaces/ unit spaces/ unit spaces/ unit
One Bedroom- 1. 8 One Bedroom- 1. 9 One Bedroom- 1. 7 One Bedroom- 1. 9 spaces/ unit spaces/ unit spaces/ unit spaces/ unit
Two Bedroom- 2. 3 Two Bedroom- 2. 3 Two Bedroom- 2. 0 Two Bedroom- 2. 3 spaees/ unit spaces/ unit spaces/ unit spaces/ unit
Multifamily
Three Bedrooms— Three Bedrooms— Three Bedrooms—,- Three Bedrooms— Residential
2• 6 spaces/ unit 2. 6 spaces/ unit 2. 4 spaces/ unit 2. 6 spaces/ unit 3 units or Each additional Each additional Each additional Each additional more) bedroom above bedroom above bedroom above bedroom above three- 0. 4 three- 0. 5 three- 0. 3 three- 0. 5
spaces/ bedroom/ unit spaces/ bedroom/ unit spaces/ bedroom/ unit spaces/ bedroom/ unit Of the above requirements a minimum of one space per unit shall be covered. A minimum of 0.2 spaces per unit shall ( with a minimum of two guest spaces in a multifamily development) be provided as easily accessible and distinguishable guest parking in addition to the required parking for each unit.

For multifamily residential units without driveways that are at least 18 feet in length, a minimum of 0. 3 spaces per unit shall ( with a minimum of two guest spaces in a multifamily residential development) be provided as easily accessible and distinguishable guest parking in addition to the required parking for each unit.

If a space that would otherwise meet the definition of a room or bedroom omits one of four encompassing walls, that room shall not be counted as a bedroom for purposes ofcalculating required number of parking spaces.

Enclosed or covered spaces demolished or converted by creation of an ADU shall not require replacement.

SECTION XXII:

To the extent required to implement the provisions ofthis 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.
487
SECTION XXIII:

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 oftlie 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 in valid or unconstitutional.

SECTION XXIV:

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.

ADOP'TED this 13th day of April, 2021.
vL %`
Mark A. Murphy, Mayor, City of ra ge
EST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 9th day of March, 2021, and thereafter at the regular meeting of said City Council duly held on the 13th day of April, 2021 was duly passed and adopted by the following vote, to wit:

AYES: COUNCILMEMBERS: Murphy, Nichols, Monaco, Barrios, Dumitru, Gutierrez NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Pamela Coleman, City Clerk, City of Orange
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COUNTY
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PARK
ACRES
NORTH

EL MODENA
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OLIVE
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ANAHEIM
ORANGE

SPHERE OF

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ORANGE

SPHERE OF

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5 55
91 57
91 57
22 55
261 241
241
1/2 Mile Buffer of
Bus Stops
Legend
! Bus Stops
1/2 Mile Buffer of Bus Stops
1/2 Mile Buffer of High Frequency Bus Stops
Eichler Tracts
Orange Historic District

0.5 0.25
µ0 0.5 Miles
September 2021
489
686\01\3723710.1
SEC. 20.

Chapter 13 (commencing with Section 66310) is added to Division 1 of Title 7 of the Government Code, to read:

CHAPTER 13. Accessory Dwelling Units
Article 1. General Provisions
66310.

The Legislature finds and declares all of the following:
(a) Accessory dwelling units are a valuable form of housing in California. (b) Accessory dwelling units provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others, at below market prices within existing neighborhoods. (c) Homeowners who create accessory dwelling units benefitfrom added income, and an increased sense of security.
(d) Allowing accessory dwelling units in single-family or multifamily residential zones provides additional rental housing stock in California.
(e) California faces a severe housing crisis.
(f) The state is falling far short of meeting current and future housing demand with serious consequences for the state’s economy, our ability to build green infill consistent with state greenhouse gas reduction goals, and the well-being of our citizens, particularly lower and middle-income earners. (g) Accessory dwelling units offer lower cost housing to meet the needs of existing and future residents within existing neighborhoods, while respecting architectural character. (h) Accessory dwelling units are, therefore, an essential component of California’s housing supply. 66311.

It is the intent of the Legislature that an accessory dwelling unit ordinance adopted by a local agency has the effect of providing for the creation of accessory dwelling units and that provisions in this ordinance relating to matters including unit size, parking, fees, and other requirements, are not so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of homeowners to create accessory dwelling units in zones in which they are authorized by local ordinance. 66312.

Notwithstanding Section 65803, this chapter shall also apply to a charter city. 66313.

For purposes of this chapter:
(a) “Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes the following:
(1) An efficiency unit.
(2) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (b) “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.
(c) “Efficiency unit” has the same meaning as defined in Section 17958.1 of the Health and Safety Code. (d) “Junior accessory dwelling unit” means a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure. (e) “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (f) “Local agency” means a city, county, or city and county, whether general law or chartered. (g) “Nonconforming zoning condition” means a physical improvement on a property that does not conform to current zoning standards.
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(h) “Objective standards” means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.
(i) “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.
(j) “Permitting agency” means any entity that is involved in the review of a permit for an accessory dwelling unit or junior accessory dwelling unit and for which there is no substitute, including, but not limited to, applicable planning departments, building departments, utilities, and special districts. (k) “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(l) “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
(m) “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

Article 2. Accessory Dwelling Unit Approvals
66314.

A local agency may, by ordinance, provide for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use. The ordinance shall do all of the following:
(a) Designate areas within the jurisdiction of the local agency where accessory dwelling units may be permitted. The designation of areas may be based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. A local agency that does not provide water or sewer services shall consult with the local water or sewer service provider regarding the adequacy of water and sewer services before designating an area where accessory dwelling units may be permitted.
(b) (1) Impose objective standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historical Resources. These standards shall not include requirements on minimum lot size. (2) Notwithstanding paragraph (1), a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (c) Provide that accessory dwelling units do not exceed the allowable density for the lot upon which the accessory dwelling unit is located, and that accessory dwelling units are a residential use that is consistent with the existing general plan and zoning designation for the lot. (d) Require the accessory dwelling units to comply with all of the following:
(1) Except as provided in Article 4 (commencing with Section 66340), the accessory dwelling unit may be rented separate from the primary residence, but shall not be sold or otherwise conveyed separate from the primary residence.
(2) The lot is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.
(3) The accessory dwelling unit is either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages. (4) If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling. 491
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(5) The total floor area for a detached accessory dwelling unit shall not exceed 1,200 square feet. (6) No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (7) No setback shall be required for an existing living area or accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit 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.
(8) Local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official or enforcement agency of the local agency makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this paragraph shall be interpreted to prevent a local agency from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this article.
(9) Approval by the local health officer where a private sewage disposalsystem is being used, if required. (10) (A) Parking requirements for accessory dwelling units shall not exceed one parking space per accessory dwelling unit or per bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway.
(B) Offstreet parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions.
(C) This subparagraph shall not apply to an accessory dwelling unit that is described in Section 66322. (11) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, the local agency shall not require that those offstreet parking spaces be replaced. (12) Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling. (e) Require that a demolition permit for a detached garage that is to be replaced with an accessory dwelling unit be reviewed with the application for the accessory dwelling unit and issued at the same time.
(f) An accessory dwelling unit ordinance shall not require, and the applicant shall not be otherwise required, to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unlessthe property islocated within an architecturally and historically significant historic district.
66315.

Section 66314 establishes the maximum standards that a local agency shall use to evaluate a proposed accessory dwelling unit on a lot that includes a proposed or existing single-family dwelling. No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer.
66316.

An existing accessory dwelling unit ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a local agency shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units, except as otherwise 492
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provided in this article. If a local agency has an existing accessory dwelling unit ordinance that fails to meet the requirements of this article, that ordinance shall be null and void and that agency shall thereafter apply the standards established in this article for the approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this article. 66317.
(a) A permit application for an accessory dwelling unit or a junior accessory dwelling unit shall be considered and approved ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits. The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved. A local agency may charge a fee to reimburse it for costs incurred to implement this section, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (b) If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. (c) No local ordinance, policy, or regulation, other than an accessory dwelling unit ordinance consistent with this article shall be the basis for the delay or denial of a building permit or a use permit under this section.
66318.
(a) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of an accessory dwelling unit if these provisions are consistent with the limitations of this article. (b) An accessory dwelling unit ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. 66319.

An accessory dwelling unit that conforms to Section 66314 shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. 66320.
(a) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with Section 66314 receives an application for a permit to create or serve an accessory dwelling unit pursuant to this article, the local agency shall approve or disapprove the application ministerially without discretionary review pursuant to Section 66317. The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit 493
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application to create or serve a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create or serve the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing. Ifthe applicant requests a delay,the 60-day time period shall be tolled for the period of the delay. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved. (b) If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. 66321.
(a) Subject to subdivision (b), a local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. (b) Notwithstanding subdivision (a), a local agency shall not establish by ordinance any ofthe following:
(1) A minimum square footage requirement for either an attached or detached accessory dwelling unit that prohibits an efficiency unit.
(2) A maximum square footage requirement for either an attached or detached accessory dwelling unit that is less than either of the following:
(A) Eight hundred fifty square feet.
(B) One thousand square feet for an accessory dwelling unit that provides more than one bedroom. (3) Any requirement for a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.
(4) Any height limitation that does not allow at least the following, as applicable:
(A) A height of 16 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit.
(B) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unitthatis within one-half of onemile walking distance of amajor transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. A local agency shall also allow an additional two feet in height to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. (C) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling.
(D) A height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower, for an accessory dwelling unit that is attached to a primary dwelling. This subparagraph shall not require a local agency to allow an accessory dwelling unit to exceed two stories. 66322.

Notwithstanding any other law, and whether or not the local agency has adopted an ordinance governing accessory dwelling units in accordance with Section 66314, all of the following shall apply:
(a) A local agency shall not impose any parking standards for an accessory dwelling unit in any of the following instances:
(1) Where the accessory dwelling unit is located within one-half of one mile walking distance of public transit.
(2) Where the accessory dwelling unit is located within an architecturally and historically significant historic district.
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(3) Where the accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure.
(4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(5) When there is a car share vehicle located within one block of the accessory dwelling unit. (6) When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this subdivision. (b) The local agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.
66323.
(a) Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following:
(1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:
(A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. (B) The space has exterior access from the proposed or existing single-family dwelling. (C) The side and rear setbacks are sufficient for fire and safety. (D) The junior accessory dwelling unit complies with the requirements of Article 3 (commencing with Section 66333).
(2) One detached, new construction, accessory dwelling unit that does not exceed four-footside and rear yard setbacks for a lot with a proposed or existing single-family dwelling. The accessory dwelling unit may be combined with a junior accessory dwelling unit described in paragraph (1). A local agency may impose the following conditions on the accessory dwelling unit:
(A) A total floor area limitation of not more than 800 square feet. (B) A height limitation as provided in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable.
(3) (A) Multiple accessory dwelling units within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings.
(B) A local agency shall allow at least one accessory dwelling unit within an existing multifamily dwelling and shall allow up to 25 percent of the existing multifamily dwelling units. (4) (A) Not more than two accessory dwelling units that are located on a lot that has an existing or proposed multifamily dwelling, but are detached from that multifamily dwelling and are subject to a height limitation in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable, and rear yard and side setbacks of no more than four feet. (B) If the existing multifamily dwelling has a rear or side setback of less than four feet, the local agency shall not require any modification of the existing multifamily dwelling as a condition of approving the application to construct an accessory dwelling unit that satisfies the requirements of this paragraph. (b) A local agency shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions.
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(c) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing multifamily dwelling. (d) A local agency shall require that a rental of the accessory dwelling unit created pursuant to this section be for a term longer than 30 days.
(e) A local agency may require, as part of the application for a permit to create an accessory dwelling unit connected to an onsite wastewater treatment system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last 10 years. (f) Notwithstanding Section 66321 and subdivision (a) a local agency that has adopted an ordinance by July 1, 2018, providing for the approval of accessory dwelling units in multifamily dwelling structures shall ministerially consider a permit application to construct an accessory dwelling unit that is described in subdivision (a), and may impose objective standards including, but not limited to, design, development, and historic standards on said accessory dwelling units. These standards shall not include requirements on minimum lot size.
66324.
(a) Fees charged for the construction of accessory dwelling units shall be determined in accordance with Chapter 5 (commencing with Section 66000) and Chapter 7 (commencing with Section 66012). (b) An accessory dwelling unit shall not be considered by a local agency, special district, or water corporation to be a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the accessory dwelling unit was constructed with a new single-family dwelling.
(c) (1) A local agency, special district, or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit.
(2) For purposes of this subdivision, “impact fee” has the same meaning as the term “fee” is defined in subdivision (b) of Section 66000, except that it also includesfeesspecified in Section 66477. “Impact fee” does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.
(d) For an accessory dwelling unit described in paragraph (1) ofsubdivision (a) of Section 66323, a local agency,special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge, unlessthe accessory dwelling unit was constructed with a new singlefamily dwelling, or upon separate conveyance of the accessory dwelling unit pursuant to Section 66342. (e) For an accessory dwelling unit that is not described in paragraph (1) of subdivision (a) of Section 66323, a local agency, special district, or water corporation may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square feet or the number of its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system.

This fee or charge shall not exceed the reasonable cost of providing this service. 66325.
(a) Except as provided in subdivision (b), this article shall supersede a conflicting local ordinance. (b) This article does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit.
66326.
(a) A local agency shall submit a copy of the ordinance adopted pursuant to Section 66314 to the Department of Housing and Community Development within 60 days after adoption. After adoption of 496
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an ordinance, the department may submit written findings to the local agency as to whether the ordinance complies with this article.
(b) (1) If the department finds that the local agency’s ordinance does not comply with this article, the department shall notify the local agency and shall provide the local agency with a reasonable time, no longer than 30 days, to respond to the findings before taking any other action authorized by this article. (2) The local agency shall consider the findings made by the department pursuant to paragraph (1) and shall do one of the following:
(A) Amend the ordinance to comply with this article.
(B) Adopt the ordinance without changes. The local agency shall include findings in its resolution adopting the ordinance that explain the reasons the local agency believes that the ordinance complies with this article despite the findings of the department. (c) (1) If the local agency does not amend its ordinance in response to the department’s findings or does not adopt a resolution with findings explaining the reason the ordinance complies with this article and addressing the department’s findings, the department shall notify the local agency and may notify the Attorney General that the local agency is in violation of state law. (2) Before notifying the Attorney General that the local agency is in violation of state law, the department may consider whether a local agency adopted an ordinance in compliance with this article between January 1, 2017, and January 1, 2020.
66327.

The department may review, adopt, amend, or repeal guidelines to implement uniform standards or criteria that supplement or clarify the terms, references, and standards set forth in this article. The guidelines adopted pursuant to this section are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
66328.

A local agency shall not issue a certificate of occupancy for an accessory dwelling unit before the local agency issues a certificate of occupancy for the primary dwelling. 66329.

Nothing in this article shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for accessory dwelling units. 66330.

A local agency may count an accessory dwelling unit for purposes of identifying adequate sites for housing, as specified in subdivision (a) of Section 65583.1, subject to authorization by the department and compliance with this division.
66331.

In enforcing building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code for an accessory dwelling unit described in subdivision (a) or (b), a local agency, upon request of an owner of an accessory dwelling unit for a delay in enforcement, shall delay enforcement of a building standard, subject to compliance with Section 17980.12 of the Health and Safety Code:
(a) The accessory dwelling unit was built before January 1, 2020. (b) The accessory dwelling unit was built on or after January 1, 2020, in a local jurisdiction that, at the time the accessory dwelling unit was built, had a noncompliant accessory dwelling unit ordinance, but the ordinance is compliant at the time the request is made. 66332.
(a) Notwithstanding any other law, and except as otherwise provided in subdivision (b), a local agency shall not deny a permit for an unpermitted accessory dwelling unit that was constructed before January 1, 2018, due to either of the following:
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(1) The accessory dwelling unit is in violation of building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code. (2) The accessory dwelling unit does not comply with this article or any local ordinance regulating accessory dwelling units.
(b) Notwithstanding subdivision (a), a local agency may deny a permit for an accessory dwelling unit subject to subdivision (a) if the local agency makes a finding that correcting the violation is necessary to protect the health and safety of the public or occupants of the structure. (c) This section shall not apply to a building that is deemed substandard pursuant to Section 17920.3 of the Health and Safety Code.

Article 3. Junior Accessory Dwelling Units
66333.

Notwithstanding Article 2 (commencing with Section 66314), a local agency may, by ordinance, provide for the creation of junior accessory dwelling units in single-family residential zones. The ordinance may require a permit to be obtained for the creation of a junior accessory dwelling unit, and shall do all of the following:
(a) Limit the number of junior accessory dwelling units to one per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot. (b) Require owner-occupancy in the single family residence in which the junior accessory dwelling unit will be permitted. The owner may reside in either the remaining portion of the structure or the newly created junior accessory dwelling unit. Owner-occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. (c) Require the recordation of a deed restriction, which shall run with the land, shall be filed with the permitting agency, and shall include both of the following:
(1) A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the singlefamily residence, including a statement that the deed restriction may be enforced against future purchasers.
(2) A restriction on the size and attributes of the junior accessory dwelling unit that conforms with this article.
(d) Require a permitted junior accessory dwelling unitto be constructed within the walls ofthe proposed or existing single-family residence. For purposes of this subdivision, enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence. (e) (1) Require a permitted junior accessory dwelling unit to include a separate entrance from the main entrance to the proposed or existing single-family residence. (2) If a permitted junior accessory dwelling unit does not include a separate bathroom, the permitted junior accessory dwelling unitshall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.
(f) Require the permitted junior accessory dwelling unit to include an efficiency kitchen, which shall include all of the following:
(1) A cooking facility with appliances.
(2) A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
66334.
(a) A junior accessory dwelling unit ordinance adopted pursuant to Section 66333 shall not require additional parking as a condition to grant a permit.
(b) This article shall not be interpreted to prohibit the requirement of an inspection, including the imposition of a fee for that inspection, to determine if the junior accessory dwelling unit complies with applicable building standards.
66335.
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(a) (1) An application for a permit pursuant to this article shall, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits, be considered ministerially, without discretionary review or a hearing. (2) The permitting agency shall either approve or deny the application to create or serve a junior accessory dwelling unit within 60 days from the date the local agency receives a completed application if there is an existing single-family dwelling on the lot. (3) If the permit application to create or serve a junior accessory dwelling unit is submitted with a permit application to create or serve a new single-family dwelling on the lot, the permitting agency may delay approving or denying the permit application for the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create or serve the new single-family dwelling, butthe application to create or serve the junior accessory dwelling unitshallstill be considered ministerially without discretionary review or a hearing. (4) If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. (b) If a permitting agency denies an application for a junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. (c) A local agency may charge a fee to reimburse the local agency for costs incurred in connection with the issuance of a permit pursuant to this article.
66336.

A local agency shall not deny an application for a permit to create a junior accessory dwelling unit pursuant to this article due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and that are not affected by the construction of the junior accessory dwelling unit. 66337.
(a) For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. (b) This article shall not be construed to prohibit a city, county, city and county, or other local public entity from adopting an ordinance or regulation relating to fire and life protection requirements within a single-family residence that contains a junior accessory dwelling unit so long as the ordinance or regulation applies uniformly to all single-family residences within the zone regardless of whether the single-family residence includes a junior accessory dwelling unit or not. 66338.
(a) For purposes of providing service for water, sewer, or power, including a connection fee, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. (b) This section shall not be construed to prohibit a local agency from adopting an ordinance or regulation related to a service or a connection fee for water, sewer, or power, that applies to a singlefamily residence that contains a junior accessory dwelling unit, so long as that ordinance or regulation applies uniformly to all single-family residences regardless of whether the single-family residence includes a junior accessory dwelling unit.
66339.

If a local agency has not adopted a local ordinance pursuant to this article, the local agency shall ministerially approve a permit to construct a junior accessory dwelling unit that satisfies the requirements set forth in paragraph (1) ofsubdivision (a) of Section 66323 and the requirements of this article.
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Agenda Item
City Council
Item #: 9.3. 6/25/2024 File #: 24-0386
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Mike Vigliotta, City Attorney

1. SUBJECT
Public Hearing to consider introduction and First Reading of Ordinance No. 18-24 Amending Title 17 of the Orange Municipal Code to add a provision related to director interpretations, city exemption from the Zoning Ordinance, tie votes, and to amend the appeal and time extension provisions.

2. SUMMARY
The City has proposed changes to update Title 17 of the Orange Municipal Code to add and amend certain provisions to streamline and clarify ambiguities contained in the Orange Municipal Code.

Specifically, to add provisions related to director interpretations, city exemption from the Zoning Ordinance, tie votes, and amending the appeal and time extension provisions.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 18.24. An Ordinance of the City Council of the City of Orange Amending Title 17 of the Orange Municipal Code to add provisions related to director interpretations, City exemption from the Zoning Code, tie votes, and amending the Zoning Ordinance’s appeal and time extension provisions.

4. FISCAL IMPACT
None.

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

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

6. DISCUSSION AND BACKGROUND
The Community Development Department has undertaken a review and evaluation of the Zoning Ordinance in order to streamline procedures, clarify ambiguities, and/or address issues that have either not been addressed or are not clearly addressed in the Zoning Ordinance. The proposed Ordinance reflects staff’s edits and the Planning Commission’s recommendation to the City Council.

The following are proposed changes to the Orange Municipal Code (“OMC”):

City of Orange Page 1 of 3 Printed on 6/20/2024
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Item #: 9.3. 6/25/2024 File #: 24-0386
· The addition of Section 17.02.050 to add “Director Interpretations” to the OMC. This provision grants the Community Development Director with authority to make administrative interpretations whenever an ambiguity exists in the Code. Interpretations would be subject to appeal. The Table at Section 17.08.020 is amended accordingly. This provision is broad and allows for the Director to address not just similar uses but also any Zoning Ordinance language interpretations that may be necessary.
· The addition of Section 17.02.060 to add “Exemption” to the OMC. This provision provides that any activities, developments, and/or projects initiated by the City on City-owned property are exempt from the Zoning Ordinance. This provision saves the City time and effort in preparing applications and reports for projects that have been initiated, or directed, by the City (through staff or City Council), which would ultimately result in an additional, unnecessary approval.
· The addition of subsection (c) to Section 17.08.020(b)(3) to the OMC. This subsection addresses “tie votes” and provides explicitly that a tie vote is not merely a “no action,” as provided by rules of parliamentary procedure, but shall mean a “denial” or, importantly, a “recommendation of denial” as some actions require that the Planning Commission formulate some written recommendation to the City Council. For example, amendments to the Zoning Ordinance and Zoning Map require that “the Planning Commission […] render its decision in written form to the City Council and the report shall include: Reasons for the recommendation; the relationship of the proposed amendment to the general plan and applicable specific plans; and environmental determination.” (Section 17.10.020(B)(2). In some cases, a body may want to have “a resolution of no decision” and such instrument is explicitly included as a possible action.
· The appeal sections contained at Section 17.08.050(A) through (C) and (E) and (F) were amended. Non-substantive changes were made, such as changing “chapter” to” title” to be consistent with the remainder of the Zoning Ordinance. Other language was changed in order to be more precise and concise, and to eliminate redundancies. For example, the subsections regarding hearing date and notice as well as appeal authority were combined (eliminating subsection G) and language was added to provide greater clarity regarding the nature of an appeal as a non-adversarial and evaluative process.
· Finally, Section 17.08.050 was amended to change the manner of processing time extensions, and the time extension (number of years) itself. A time extension would be reviewed by the Planning Commission-a more certain process (rather than “the body providing final approval”).

That time extension would be for two years with an administrative determination to be made thereafter, if necessary, by the Community Development Director, for an additional one year.

7. ATTACHMENTS
· Ordinance No. 18-24
City of Orange Page 2 of 3 Printed on 6/20/2024
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Item #: 9.3. 6/25/2024 File #: 24-0386
· Ordinance No. 18-24 (redline)
City of Orange Page 3 of 3 Printed on 6/20/2024
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Agenda Item
City Council
Item #: 9.3. 6/25/2024 File #: 24-0386
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Mike Vigliotta, City Attorney

1. SUBJECT
Public Hearing to consider introduction and First Reading of Ordinance No. 18-24 Amending Title 17 of the Orange Municipal Code to add a provision related to director interpretations, city exemption from the Zoning Ordinance, tie votes, and to amend the appeal and time extension provisions.

2. SUMMARY
The City has proposed changes to update Title 17 of the Orange Municipal Code to add and amend certain provisions to streamline and clarify ambiguities contained in the Orange Municipal Code.

Specifically, to add provisions related to director interpretations, city exemption from the Zoning Ordinance, tie votes, and amending the appeal and time extension provisions.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 18.24. An Ordinance of the City Council of the City of Orange Amending Title 17 of the Orange Municipal Code to add provisions related to director interpretations, City exemption from the Zoning Code, tie votes, and amending the Zoning Ordinance’s appeal and time extension provisions.

4. FISCAL IMPACT
None.

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

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

6. DISCUSSION AND BACKGROUND
The Community Development Department has undertaken a review and evaluation of the Zoning Ordinance in order to streamline procedures, clarify ambiguities, and/or address issues that have either not been addressed or are not clearly addressed in the Zoning Ordinance. The proposed Ordinance reflects staff’s edits and the Planning Commission’s recommendation to the City Council.

The following are proposed changes to the Orange Municipal Code (“OMC”):

City of Orange Page 1 of 3 Printed on 6/20/2024
powered by Legistar™503
Item #: 9.3. 6/25/2024 File #: 24-0386
· The addition of Section 17.02.050 to add “Director Interpretations” to the OMC. This provision grants the Community Development Director with authority to make administrative interpretations whenever an ambiguity exists in the Code. Interpretations would be subject to appeal. The Table at Section 17.08.020 is amended accordingly. This provision is broad and allows for the Director to address not just similar uses but also any Zoning Ordinance language interpretations that may be necessary.
· The addition of Section 17.02.060 to add “Exemption” to the OMC. This provision provides that any activities, developments, and/or projects initiated by the City on City-owned property are exempt from the Zoning Ordinance. This provision saves the City time and effort in preparing applications and reports for projects that have been initiated, or directed, by the City (through staff or City Council), which would ultimately result in an additional, unnecessary approval.
· The addition of subsection (c) to Section 17.08.020(b)(3) to the OMC. This subsection addresses “tie votes” and provides explicitly that a tie vote is not merely a “no action,” as provided by rules of parliamentary procedure, but shall mean a “denial” or, importantly, a “recommendation of denial” as some actions require that the Planning Commission formulate some written recommendation to the City Council. For example, amendments to the Zoning Ordinance and Zoning Map require that “the Planning Commission […] render its decision in written form to the City Council and the report shall include: Reasons for the recommendation; the relationship of the proposed amendment to the general plan and applicable specific plans; and environmental determination.” (Section 17.10.020(B)(2). In some cases, a body may want to have “a resolution of no decision” and such instrument is explicitly included as a possible action.
· The appeal sections contained at Section 17.08.050(A) through (C) and (E) and (F) were amended. Non-substantive changes were made, such as changing “chapter” to” title” to be consistent with the remainder of the Zoning Ordinance. Other language was changed in order to be more precise and concise, and to eliminate redundancies. For example, the subsections regarding hearing date and notice as well as appeal authority were combined (eliminating subsection G) and language was added to provide greater clarity regarding the nature of an appeal as a non-adversarial and evaluative process.
· Finally, Section 17.08.050 was amended to change the manner of processing time extensions, and the time extension (number of years) itself. A time extension would be reviewed by the Planning Commission-a more certain process (rather than “the body providing final approval”).

That time extension would be for two years with an administrative determination to be made thereafter, if necessary, by the Community Development Director, for an additional one year.

7. ATTACHMENTS
· Ordinance No. 18-24
City of Orange Page 2 of 3 Printed on 6/20/2024
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Item #: 9.3. 6/25/2024 File #: 24-0386
· Ordinance No. 18-24 (redline)
City of Orange Page 3 of 3 Printed on 6/20/2024
powered by Legistar™505
ORDINANCE NO. 18-24

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

OF THE ORANGE MUNICIPAL CODE TO ADD

PROVISIONS RELATED TO DIRECTOR

INTEPRETATIONS, CITY EXEMPTION FROM

THE ZONING CODE, TIE VOTES, AND
AMENDING THE ZONING ORDINANCE’S

APPEAL AND TIME EXTENSION PROVISIONS
WHEREAS, staff, among other ongoing efforts, is in the process of reviewing the language contained in the City of Orange’s Title 17 (“Zoning Code”) with respect to general administrative matters; and
WHEREAS, the purpose of staff’s review of language in the Zoning Code is to streamline processes, where possible, clarify ambiguities and/or address issues that have either not been addressed, or are not clearly and fully addressed by the Zoning Code; and WHEREAS, first, staff determined that, while provisions related to interpretations of the Zoning Code is very common among California cities, the Zoning Code’s only interpretation provision, contained in Section 17.13.070 (Land Uses Not Listed), is too narrow, pertaining to determinations related to “uses” only; and
WHEREAS, staff also determined that, while many cities’ municipal codes exempt City projects (specifically, projects undertaken on City-owned property) from Zoning Code requirements in order to avoid additional and unnecessary expense and time, the City did not have such a provision in its Code; and
WHEREAS, in addition, while many cities have addressed tie votes or insufficient votes in their codes, the Zoning Code was silent on this matter requiring staff to apply generally accepted interpretations that should be memorialized, and augmented, in the Zoning Code; and, WHEREAS, staff also reviewed the appeal provision of the Zoning Ordinance, contained at Section 17.08.050 and determined that clarifications and edits are necessary to be consistent with City practices, other city practices, and other provisions of the OMC; and WHEREAS, finally, staff reviewed the time extension provision of the Zoning Ordinance and determined that additional time and flexibility for applicants that do not commence use or construction of a land use entitlement is advisable and warranted in order to provide a more customer-friendly development process; and
WHEREAS, staff has recommended changes to the Zoning Ordinance to address the issues enumerated herein and the City Council wishes to make such staff-initiated changes in hopes of providing additional clarity to the Zoning Code and to provide staff with additional flexibility to increase efficiency in project development; and
506
2 WHEREAS, the Planning Commission, having considered the proposed changes to the OMC at a public hearing held on June 3, 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, having now considered the proposed changes to the OMC at a public hearing held on _____, including review of the staff report, and having received public testimony on the item, desires to adopt the proposed ordinance.

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

SECTION I:

This Ordinance is not a project under the California Environmental Quality Act (“CEQA”) per State CEQA Guidelines Section 15378, because it involves administrative activities of the City that will not result in direct or indirect physical changes in the environment.

SECTION II:

A new Section 17.02.050 shall be added to read as follows:

17.02.050 Director Interpretations.

In addition to any other authority that may be granted to the Community Development Director, the Director shall have the authority to make administrative interpretations whenever it is determined that an ambiguity as to the meaning or applicability of this Title 17 exists. Persons aggrieved by an official administrative interpretation of the Director may appeal the Director administrative interpretation(s) to the Planning Commission, as set forth in Section 17.08.050.

SECTION III:

Table 17.08.020 shall be amended as follows:

Table 17.08.020
Type of Procedure, Permit or Hearing CDD DRC ZA PC CC
Administrative Design Review X(1)
Administrative Adjustment Permit X
Alcohol Production Permit X
Conditional Use Permit A A(1) X(1) X(1) X(1)
Design Review A/X(1) X(1)
Environmental Documentation A X(1) X(1)
General Plan Amendment A A X
Neighborhood Preservation Overlay Applications A/X(1) X(1) Director Administrative Interpretations X
507
3 Type of Procedure, Permit or Hearing CDD DRC ZA PC CC Old Towne Demolition Permit A X(1) X
Reasonable Accommodation X(1)
Site Plan Review—Major A A X
Site Plan Review—Minor X
Sober Living Permit X
Temporary Use (Non-Recurring) Permit A X(1) X(1)
Temporary Use (Recurring) Permit X
Tentative Parcel Map X(1) X(1) X(1)
Tentative Tract Map A A X
Variance A A(1) X(1) X
Zone Change A A X
Zoning Ordinance Amendment A A X
SECTION IV:

A new Section 17.02.060 shall be added to read as follows:

17.02.060 Exemption
Except as otherwise required by law, any activities, developments, and/or projects initiated by the City on City-owned property shall be exempt from the requirements of this Title.

SECTION V:

A new subsection (c) is hereby added to Section 17.08.020(B)(3) to read as follows:
c. In the event of a tie vote, the matter upon which such vote is being cast shall fail, which shall have the effect of a denial or recommendation of denial, as appropriate. Alternatively, the Planning Commission may approve a “resolution of no decision” to the City Council. In the case of an appeal, a tie vote shall constitute a denial of the appeal, which shall have the effect of affirming in whole the determination of the lower body.

SECTION VI:

Section 17.08.050 shall be amended to read as follows:

17.08.050 Appeals.

Right of Appeal. Any action taken by the Community Development Director, Zoning Administrator, or the Design Review Committee in the administration or enforcement of the provisions of this Title may be appealed by any person aggrieved by said action or determination to the Planning Commission. Any decision of the Planning Commission may be appealed to the City Council.
508
4 SECTION VII:

Section 17.08.050 (B) shall be amended to read as follows:

B. Appeal Stays Proceedings. Unless authorized by the Community Development Director, no permits related to the proceeding shall be issued during the pendency of the proceeding.

SECTION VIII:

Section 17.08.050(C) shall be amended to read as follows:

C. Form and Content of Notice of Appeal. The notice of appeal shall be in writing and shall be filed in the Planning Division upon forms provided by the City. An appeal from any action in the administration or enforcement of this chapter shall provide a statement of the facts in sufficient detail to enable the appeal body to understand the nature of the controversy and indicate specifically the alleged error or abuse of discretion to be evaluated by the appeal body.

SECTION IX:

Section 17.08.050 (E) shall be amended to read as follows:

E. Hearing Date and Notice. Upon receipt of an appeal, the Planning Division shall receive the appeal and thereafter set a date for the matter to be heard by the applicable reviewing body and give notice of the date, time and place of the hearing to the applicant and appellant and public notice of the hearing as required in Section 17.08.040.

SECTION X:

Section 17.08.050 (F) shall be amended to read as follows:

F. Authority of Planning Commission and/or City Council. The Planning Commission and/or City Council shall consider the record and such additional information as may be offered and may affirm, reverse or modify, in whole or in part, the action that was appealed.

The Planning Commission and/or City Council may also make or substitute additional decisions or determinations as it finds warranted under the provisions of this Title 17.

SECTION XI:

Section 17.08.060 shall be amended to read as follows:

17.08.060 Time Extensions.

A. Upon a request from an applicant, the Planning Commission may extend the period upon which to commence use or construction of the land use entitlement by a period of up to two years. The Community Development Director may further extend the period upon which to commence use or construction of the land use entitlement by a period of up to one year. The person seeking an extension from the Planning Commission and/or Community Development 509
5 Director must submit a written request to the Community Development Director prior to the expiration date and at a minimum shall explain the extenuating circumstances that have delayed construction or use of the land use entitlement. A request for an extension shall not require a public hearing provided that no conditions or other requirements are added, deleted or modified. Any such changes to the land use entitlement shall be considered an amendment to the land use entitlement and require the same notice and hearing requirements as the underlying land use entitlement.

SECTION XII:

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 XIII:

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
510
6 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
511
ORDINANCE NO. 18-24

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

OF THE ORANGE MUNICIPAL CODE TO ADD

PROVISIONS RELATED TO DIRECTOR

INTEPRETATIONS, CITY EXEMPTION FROM

THE ZONING CODE, TIE VOTES, AND
AMENDING THE ZONING ORDINANCE’S

APPEAL AND TIME EXTENSION PROVISIONS
WHEREAS, staff, among other ongoing efforts, is in the process of reviewing the language contained in the City of Orange’s Title 17 (“Zoning Code”) with respect to general administrative matters; and
WHEREAS, the purpose of staff’s review of language in the Zoning Code is to streamline processes, where possible, clarify ambiguities and/or address issues that have either not been addressed, or are not clearly and fully addressed by the Zoning Code; and WHEREAS, first, staff determined that, while provisions related to interpretations of the Zoning Code is very common among California cities, the Zoning Code’s only interpretation provision, contained in Section 17.13.070 (Land Uses Not Listed), is too narrow, pertaining to determinations related to “uses” only; and
WHEREAS, staff also determined that, while many cities’ municipal codes exempt City projects (specifically, projects undertaken on City-owned property) from Zoning Code requirements in order to avoid additional and unnecessary expense and time, the City did not have such a provision in its Code; and
WHEREAS, in addition, while many cities have addressed tie votes or insufficient votes in their codes, the Zoning Code was silent on this matter requiring staff to apply generally accepted interpretations that should be memorialized, and augmented, in the Zoning Code; and, WHEREAS, staff also reviewed the appeal provision of the Zoning Ordinance, contained at Section 17.08.050 and determined that clarifications and edits are necessary to be consistent with City practices, other city practices, and other provisions of the OMC; and WHEREAS, finally, staff reviewed the time extension provision of the Zoning Ordinance and determined that additional time and flexibility for applicants that do not commence use or construction of a land use entitlement is advisable and warranted in order to provide a more customer-friendly development process; and
WHEREAS, staff has recommended changes to the Zoning Ordinance to address the issues enumerated herein and the City Council wishes to make such staff-initiated changes in hopes of providing additional clarity to the Zoning Code and to provide staff with additional flexibility to increase efficiency in project development.
512
2 WHEREAS, the Planning Commission, having considered the proposed changes to the OMC at a public hearing held on June 3, 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, having now considered the proposed changes to the OMC at a public hearing held on _____, including review of the staff report, and having received public testimony on the item, desires to adopt the proposed ordinance.

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

SECTION I:

This Ordinance is not a project under the California Environmental Quality Act (“CEQA”) per State CEQA Guidelines Section 15378, because it involves administrative activities of the City that will not result in direct or indirect physical changes in the environment.

SECTION II:

A new Section 17.02.050 shall be added to read as follows:

17.02.050 Director Interpretations.

In addition to any other authority that may be granted to the Community Development Director, the Director shall have the authority to make administrative interpretations whenever it is determined that an ambiguity as to the meaning or applicability of this Title 17 exists. Persons aggrieved by an official administrative interpretation of the Director may appeal the Director administrative interpretation(s) to the Planning Commission, as set forth in Section 17.08.050.

SECTION III:

Table 17.08.020 shall be amended as follows:

Table 17.08.020
Type of Procedure, Permit or Hearing CDD DRC ZA PC CC
Administrative Design Review X(1)
Administrative Adjustment Permit X
Alcohol Production Permit X
Conditional Use Permit A A(1) X(1) X(1) X(1)
Design Review A/X(1) X(1)
Environmental Documentation A X(1) X(1)
General Plan Amendment A A X
Neighborhood Preservation Overlay Applications A/X(1) X(1) 513
3 Type of Procedure, Permit or Hearing CDD DRC ZA PC CC Director Administrative Interpretations X
Old Towne Demolition Permit A X(1) X
Reasonable Accommodation X(1)
Site Plan Review—Major A A X
Site Plan Review—Minor X
Sober Living Permit X
Temporary Use (Non-Recurring) Permit A X(1) X(1)
Temporary Use (Recurring) Permit X
Tentative Parcel Map X(1) X(1) X(1)
Tentative Tract Map A A X
Variance A A(1) X(1) X
Zone Change A A X
Zoning Ordinance Amendment A A X
SECTION IV:

A new Section 17.02.060 shall be added to read as follows:

17.02.060 Exemption
Except as otherwise required by law, any activities, developments, and/or projects initiated by the City on City-owned property shall be exempt from the requirements of this Title 17.

SECTION V:

A new subsection (c) is hereby added to Section 17.08.020(B)(3) to read as follows:
c. In the event of a tie vote, the matter upon which such vote is being cast shall fail, which shall have the effect of a denial or recommendation of denial, as appropriate. Alternatively, the Planning Commission may approve a “resolution of no decision” to the City Council. In the case of an appeal, a tie vote shall constitute a denial of the appeal, which shall have the effect of affirming in whole the determination of the lower body.

SECTION VI:

Section 17.08.050 shall be amended to read as follows:

17.08.050 Appeals.

Right of Appeal. Any action taken by the Community Development Director, Zoning Administrator, or the Design Review Committee in the administration or enforcement of the provisions of this chapter Title may be appealed by any person aggrieved by said action or determination, or by an officer, commission or department of the City. Such appeals may be made 514
4 to the Planning Commission. Any decision wherein the of the Planning Commission is authorized to make a final determination may be appealed to the City Council.

SECTION VII:

Section 17.08.050 (B) shall be amended to read as follows:

B. Appeal Stays Proceedings. An appeal stays all proceedings, in furtherance of an action appealed, Unless authorized by the Community Development Director, no permits related to the proceeding shall be issued during the pendency of the proceeding after reviewing the case, recommends to the body deciding the appeal that a stay would, in his or her opinion, cause imminent peril to life and property.

SECTION VIII:

Section 17.08.050(C) shall be amended to read as follows:

C. Form and Content of Notice of Appeal. The notice of appeal shall be in writing and shall be filed in the Planning Division upon forms provided by the City. An appeal from any action in the administration or enforcement of this chapter shall provide a statement of the facts in sufficient detail to enable the appeal body to understand the nature of the controversy and indicate specifically the alleged error or abuse of discretion to be evaluated by the appeal body.

SECTION IX:

Section 17.08.050 (E) shall be amended to read as follows:

E. Hearing Date and Notice. Upon receipt of an appeal, the Planning Division shall receive the appeal and thereafter set a date for a hearing the matter to be heard before the by the applicable reviewing body and give notice of the date, time and place of the hearing to the applicant and appellant and public notice of the hearing as required in Section 17.08.040 at least 10 days prior to the date of the hearing.

SECTION X:

Section 17.08.050 (F) shall be amended to read as follows:

F. Authority of Planning Commission and/or City Council. The Planning Commission and/or City Council shall consider the record and such additional information evidence as may be offered and may affirm, reverse or modify, in whole or in part, the action that was appealed. The Planning Commission and/or City Council may also make or substitute additional decisions or determinations as it finds warranted under the provisions of this Title 17. 515
5 SECTION XI:

Section 17.08.060 shall be amended to read as follows:

17.08.060 Time Extensions.

A. The body granting final approval for a land use entitlement, an extension of which is subject to this section, Upon a request from an applicant, the Planning Commission may extend the period upon which to commence use or construction of the land use entitlement by a period of up to three two years. The Community Development Director may further extend the period upon which to commence use or construction of the land use entitlement by a period of up to one year.

The person seeking such an extension from the Planning Commission and/or Community Development Director must submit a written request to the Community Development Director in a form acceptable to the Community Development Director. The written request should be submitted at least 45 days prior to the expiration date and at a minimum shall explain the extenuating circumstances that have delayed construction or use of the land use entitlement. If a party has received a one year extension since January 1, 2013 and the effective date of the ordinance from which this section derives, that party may apply for an additional two year extension. Any entitlement which would expire after the date of the first reading of the ordinance from which this section derives is eligible for the three year extension upon the effective date of the ordinance from which this section derives. A request for an extension shall not require a public notice hearing provided that no conditions or other requirements are added, deleted or modified.

Any such changes to the land use entitlement shall be considered an amendment to the land use entitlement and require the same notice and hearing requirements as the underlying land use entitlement and any applicable review.

B. Unless further amended by the City Council, the period upon which a land use entitlement may be extended by the body granting final approval shall revert back to one year as of January 1, 2017.

SECTION XII:

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 XIII:

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.
516
6 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
517
Agenda Item
City Council
Item #: 9.4. 6/25/2024 File #: 24-0387
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. 19-24 amending Chapter

17.44 of the Orange Municipal Code providing a mechanism for the transfer of development rights, and finding that the ordinance has already been addressed in the scope of the City of Orange General Plan EIR and is also exempt from CEQA.

2. SUMMARY
The proposed ordinance establishes provisions in the Orange Municipal Code for the transfer of development rights to sites with Urban Mixed Use zoning for purposes of creating open space and increasing housing supply in certain areas to serve the growing residential population in these zones.

Additionally, the ordinance provides a mechanism for the transfer of development rights to Urban Mixed Use sites from private residentially zoned abandoned railroad right-of-way property identified in the City’s General Plan Circulation Element as a future recreational trail.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 19-24. An ordinance of the City Council of the City of Orange amending Chapter 17.44 of the Orange Municipal Code adding a new Section 17.44.210 to establish a mechanism for the transfer of development rights for purposes of creating opportunities for housing, open space, and trails.

3. Find the ordinance is within the scope of the previously approved Final Program Environmental Impact Report (EIR) No. 1815-09 for the Comprehensive General Plan Update which was certified on March 9, 2010, and prepared in accordance with the California Environmental Quality Act (CEQA), and also exempt from CEQA pursuant to, but not limited to, State CEQA Guidelines Section 15308.

4. FISCAL IMPACT
None.

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

Goal 3: Enhance and promote quality of life in the community City of Orange Page 1 of 4 Printed on 6/20/2024
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c: Support and enhance attractive, diverse living environments.

6. DISCUSSION AND BACKGROUND
As a largely built-out community with constrained resources, Orange has limited opportunities to bring forward new parks, trails, and housing to address a long-standing community parkland deficiency, interest in recreational trails, and housing needs identified by the State of California. One of the actions identified in the General Plan Implementation Plan (Implementation Program I-5) as a creative option for pursuing these priorities is the development of a transfer of development rights (TDR) program. The City’s 2021-2029 Housing Element also identifies development of a TDR ordinance as Policy Action Item 2E. More detailed information is provided in Attachment 4 about the relationship between the proposed ordinance, the General Plan, and community needs.

TDR programs offer a mechanism by which the un-used development potential of one property, a “sending site” (as established by General Plan land use designation) can be transferred to a “receiver site” in another location in order to preserve the characteristics of the sending site in exchange for granting additional development potential to the receiver site that would otherwise be allowed under its General Plan land use designation. The future development potential of the sending site is limited in perpetuity by a recorded deed restriction or dedication. There are a number of California cities, and cities across the nation, that have established TDR programs in response to community-specific circumstances and priorities. In the case of Orange, a TDR program is envisioned to accommodate intensified housing development and parkland in areas of the City where land uses are planned to intensify over time, while relieve development pressure and expectations from undeveloped areas of the City that interface with wildlands and the Santiago Creek corridor. These areas often also interface with established neighborhoods and have both a sensitive environmental and development context.

Formalizing a TDR program provides the city with a tool in its policy and program toolkit to incentivize and realize new parks, open space, housing development, and recreational trails. A TDR program enables the City to establish a clear framework for when, where, and how the transferring of development rights should occur, as well as a means for leveraging community benefits.

Property owner participation in the program would be optional and the transferring of rights would be subject to approval by the City Council on a case-by-case basis in conjunction with a development agreement as a means of leveraging other public benefits.

The objectives of the ordinance are to:
· Incentivize residential development that complements commercial and employment hubs in Uptown Orange and along the West Katella corridor.
· Offer a pathway for the ultimate transition of privately held property that is the subject of community interest to becoming permanent public open space or a recreational trail. · Provide a mechanism for the creation of meaningful and useable urban open space in areas of the City where future housing opportunities are concentrated.

Ordinance Framework
The proposed TDR ordinance is structured around the following concepts:
· Properties in areas of the City with the Urban Mixed Use (UMU) Zoning Districts are established “Receiving Areas” for development rights being transferred from “Sending Area” City of Orange Page 2 of 4 Printed on 6/20/2024
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established “Receiving Areas” for development rights being transferred from “Sending Area” parcels.
· Properties established as “Sending Areas” are those that are:
o Zoned UMU.
o Zoned Commercial Recreation or un-zoned that are re-zoned to UMU to achieve General Plan consistency.
o Zoned Recreation Open Space (RO) but are under private ownership, and of interest to the community for transition to long-term public open space. o Linear parcels zoned Single-Family Residential (R-1) between Fairhaven Avenue and Chapman Avenue under private ownership that are associated with the former railroad right-of-way, constrained by the Kinder Morgan pipeline, and envisioned in the Master Plan of Trails as the future Tustin Branch Trail alignment. · UMU properties have dual status as both Sending and Receiving Areas. · The transfer of development rights could achieve a maximum 25% increase in the base density established by the UMU General Plan land use designation (60 dwelling units/acre + 25% = 75 dwelling units/acre).
· For non-Open Space zoned sites, property owners enter into private negotiations with potential buyers to work out a mutually agreed upon sales price with the property rights transferring at a 1 to 1 ratio with the exception of the parcels involved with the Tustin Branch Trail alignment, which would be eligible for a 2 to 1 transfer ratio. · For privately owned RO zoned sites, there is no building intensity identified in either the General Plan or Zoning Ordinance. In order to incentivize the transition of the property to permanent open space, the ordinance would provide a mechanism for the City to grant development rights only for purposes of a TDR to a Receiving Area, and only in exchange for the Sending Area site being dedicated by the property owner as open space.

In these instances, the abutting residential General Plan land use designation would be used as a reference point for a baseline density scenario for purposes of establishing a theoretical development potential. To further incentivize the transfer of development rights, a transfer ratio of 2 to 1 would be available. As with non-RO zoned sites, the seller and buyer would be responsible for arriving at a mutually agreed upon price for the development rights.

A figure depicting Sending and Receiving Areas is provided in Attachment 2 of this report.

Development Agreement and Deed Restriction Required
The proposed ordinance requires execution of a City Council approved Development Agreement for any TDR project. The City Council would have the ability to approve or deny any Development Agreement application for a TDR. A Development Agreement would enable the City to leverage other community benefits in exchange for the TDR. Additionally, in the case of dedicated RO properties the City could, for example, include provisions for the care and maintenance of the open space over City of Orange Page 3 of 4 Printed on 6/20/2024
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time.

The Development Agreement for the TDR would require a deed restriction to be recorded on the “Sending Site” to document the development restriction. The City would maintain a record of the properties involved in these transactions.

Properties Designated Resource Area - Option
As drafted, the proposed ordinance identifies privately owned properties zoned UMU, RO, and R-1 as qualified Sending Areas. However, other undeveloped properties along Santiago Creek that may lend themselves to open space preservation are those zoned Sand and Gravel and designated as Resource Area in the General Plan. As an option, staff is seeking direction from the City Council on whether these properties should also be afforded Sending Area status in the proposed ordinance.

The Planning Commission recommended that the City Council include them.

7. ADVISORY BOARD ACTION
Planning Commission
The Planning Commission conducted a public hearing for the ordinance on May 6, 2024 and recommend approval to the City Council by a 7-0 vote. In its action the Commission recommended that properties zoned Resource Area also be included the ordinance as “Sending Areas.” Meeting minutes are provided as Attachment 5.

8. ENVIRONMENTAL REVIEW
Final Program Environmental Impact Report (EIR) No. 1815-09 for the Comprehensive General Plan Update was certified on March 9, 2010, and prepared in accordance with CEQA. The proposed activity is within the scope of the previously approved General Plan and is adequately described in the previously certified General Plan Program EIR for purposes of CEQA, and is also exempt from CEQA pursuant to, but not limited to, State CEQA Guidelines Section 15308.

ATTACHMENTS
· Attachment 1 Ordinance No. 19-24
· Attachment 2 Sending and Receiving Area Maps
· Attachment 3 Planning Commission Resolution No. PC 11-24 · Attachment 4 Planning Commission Staff Report, May 6, 2024 · Attachment 5 Planning Commission Minutes, May 6, 2024 City of Orange Page 4 of 4 Printed on 6/20/2024
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Agenda Item
City Council
Item #: 9.4. 6/25/2024 File #: 24-0387
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. 19-24 amending Chapter

17.44 of the Orange Municipal Code providing a mechanism for the transfer of development rights, and finding that the ordinance has already been addressed in the scope of the City of Orange General Plan EIR and is also exempt from CEQA.

2. SUMMARY
The proposed ordinance establishes provisions in the Orange Municipal Code for the transfer of development rights to sites with Urban Mixed Use zoning for purposes of creating open space and increasing housing supply in certain areas to serve the growing residential population in these zones.

Additionally, the ordinance provides a mechanism for the transfer of development rights to Urban Mixed Use sites from private residentially zoned abandoned railroad right-of-way property identified in the City’s General Plan Circulation Element as a future recreational trail.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 19-24. An ordinance of the City Council of the City of Orange amending Chapter 17.44 of the Orange Municipal Code adding a new Section 17.44.210 to establish a mechanism for the transfer of development rights for purposes creating opportunities for housing, open space, and trails.

3. Find the ordinance within the scope of the previously approved Final Program Environmental Impact Report (EIR) No. 1815-09 for the Comprehensive General Plan Update was certified on March 9, 2010 prepared in accordance with the California Environmental Quality Act (CEQA) and also exempt from CEQA pursuant to, but not limited to, State CEQA Guidelines Section 15308.

4. FISCAL IMPACT
None.

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

Goal 3: Enhance and promote quality of life in the community City of Orange Page 1 of 4 Printed on 6/20/2024
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c: Support and enhance attractive, diverse living environments.

6. DISCUSSION AND BACKGROUND
As a largely built-out community with constrained resources, Orange has limited opportunities to bring forward new parks, trails, and housing to address a long-standing community parkland deficiency, interest in recreational trails, and housing needs identified by the State of California. One of the actions identified in the General Plan Implementation Plan (Implementation Program I-5) as a creative option for pursuing these priorities is the development of a transfer of development rights (TDR) program. The City’s 2021-2029 Housing Element also identifies development of a TDR ordinance as Policy Action Item 2E. More detailed information is provided in Attachment 4 about the relationship between the proposed ordinance, the General Plan, and community needs.

TDR programs offer a mechanism by which the un-used development potential of one property, a “sending site” (as established by General Plan land use designation) can be transferred to a “receiver site” in another location in order to preserve the characteristics of the sending site in exchange for granting additional development potential to the receiver site that would otherwise be allowed under its General Plan land use designation. The future development potential of the sending site is limited in perpetuity by a recorded deed restriction or dedication. There are a number of California cities, and cities across the nation, that have established TDR programs in response to community-specific circumstances and priorities. In the case of Orange, a TDR program is envisioned to accommodate intensified housing development and parkland in areas of the City where land uses are planned to intensify over time, while relieve development pressure and expectations from undeveloped areas of the City that interface with wildlands and the Santiago Creek corridor. These areas often also interface with established neighborhoods and have both a sensitive environmental and development context.

Formalizing a TDR program provides the city with a tool in its policy and program toolkit to incentivize and realize new parks, open space, housing development, and recreational trails. A TDR program enables the City to establish a clear framework for when, where, and how the transferring of development rights should occur, as well as a means for leveraging community benefits.

Property owner participation in the program would be optional and the transferring of rights would be subject to approval by the City Council on a case-by-case basis in conjunction with a development agreement as a means of leveraging other public benefits.

The objectives of the ordinance are to:
· Incentivize residential development that complements commercial and employment hubs in Uptown Orange and along the West Katella corridor.
· Offer a pathway for the ultimate transition of privately held property that is the subject of community interest to becoming permanent public open space or a recreational trail. · Provide a mechanism for the creation of meaningful and useable urban open space in areas of the City where future housing opportunities are concentrated.

Ordinance Framework
The proposed TDR ordinance is structured around the following concepts:
· Properties in areas of the City with the Urban Mixed Use (UMU) Zoning Districts are established “Receiving Areas” for development rights being transferred from “Sending Area” City of Orange Page 2 of 4 Printed on 6/20/2024
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established “Receiving Areas” for development rights being transferred from “Sending Area” parcels.
· Properties established as “Sending Areas” are those that are:
o Zoned UMU.
o Zoned Commercial Recreation or un-zoned that are re-zoned to UMU to achieve General Plan consistency.
o Zoned Recreation Open Space (RO) but are under private ownership, and of interest to the community for transition to long-term public open space. o Linear parcels zoned Single-Family Residential (R-1) between Fairhaven Avenue and Chapman Avenue under private ownership that are associated with the former railroad right-of-way, constrained by the Kinder Morgan pipeline, and envisioned in the Master Plan of Trails as the future Tustin Branch Trail alignment. · UMU properties have dual status as both Sending and Receiving Areas. · The transfer of development rights could achieve a maximum 25% increase in the base density established by the UMU General Plan land use designation (60 dwelling units/acre + 25% = 75 dwelling units/acre).
· For non-Open Space zoned sites, property owners enter into private negotiations with potential buyers to work out a mutually agreed upon sales price with the property rights transferring at a 1 to 1 ratio with the exception of the parcels involved with the Tustin Branch Trail alignment, which would be eligible for a 2 to 1 transfer ratio. · For privately owned RO zoned sites, there is no building intensity identified in either the General Plan or Zoning Ordinance. In order to incentivize the transition of the property to permanent open space, the ordinance would provide a mechanism for the City to grant development rights only for purposes of a TDR to a Receiving Area, and only in exchange for the Sending Area site being dedicated by the property owner as open space.

In these instances, the abutting residential General Plan land use designation would be used as a reference point for a baseline density scenario for purposes of establishing a theoretical development potential. To further incentivize the transfer of development rights, a transfer ratio of 2 to 1 would be available. As with non-RO zoned sites, the seller and buyer would be responsible for arriving at a mutually agreed upon price for the development rights.

A figure depicting Sending and Receiving Areas is provided in Attachment 2 of this report.

Development Agreement and Deed Restriction Required
The proposed ordinance requires execution of a City Council approved Development Agreement for any TDR project. The City Council would have the ability to approve or deny any Development Agreement application for a TDR. A Development Agreement would enable the City to leverage other community benefits in exchange for the TDR. Additionally, in the case of dedicated RO properties the City could, for example, include provisions for the care and maintenance of the open space over City of Orange Page 3 of 4 Printed on 6/20/2024
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time.

The Development Agreement for the TDR would require a deed restriction to be recorded on the “Sending Site” to document the development restriction. The City would maintain a record of the properties involved in these transactions.

Properties Designated Resource Area - Option
As drafted, the proposed ordinance identifies privately owned properties zoned UMU, RO, and R-1 as qualified Sending Areas. However, other undeveloped properties along Santiago Creek that may lend themselves to open space preservation are those zoned Sand and Gravel and designated as Resource Area in the General Plan. As an option, staff is seeking direction from the City Council on whether these properties should also be afforded Sending Area status in the proposed ordinance.

The Planning Commission recommended that the City Council include them.

7. ADVISORY BOARD ACTION
Planning Commission
The Planning Commission conducted a public hearing for the ordinance on May 6, 2024 and recommend approval to the City Council by a 7-0 vote. In its action the Commission recommended that properties zoned Resource Area also be included the ordinance as “Sending Areas.” Meeting minutes are provided as Attachment 5.

8. ENVIRONMENTAL REVIEW
Final Program Environmental Impact Report (EIR) No. 1815-09 for the Comprehensive General Plan Update was certified on March 9, 2010 and prepared in accordance with CEQA. The proposed activity is within the scope of the previously approved General Plan and is adequately described in the previously certified General Plan Program EIR for purposes of CEQA, and is also exempt from CEQA pursuant to, but not limited to, State CEQA Guidelines Section 15308.

ATTACHMENTS
· Attachment 1 Ordinance No. 19-24
· Attachment 2 Sending and Receiving Area Maps
· Attachment 3 Planning Commission Resolution No. PC 11-24 · Attachment 4 Planning Commission Staff Report, May 6, 2024 · Attachment 5 Planning Commission Minutes, May 6, 2024 City of Orange Page 4 of 4 Printed on 6/20/2024
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ORDINANCE NO. 19-24

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING CHAPTER 17.44 OF

THE ORANGE MUNICIPAL CODE BY ADDING A
NEW SECTION 17.44.210 TO ESTABLISH A MECHANISM FOR THE TRANSFER OF DEVELOPMENT RIGHTS TO CREATE OPPORTUNITIES FOR HOUSING, OPEN SPACE, AND TRAILS WHEREAS, as a largely built-out community with constrained resources, Orange has limited opportunities to bring forward new parks, trails, and housing to address a long-standing community parkland deficiency, interest in recreational trails, and housing needs identified by the State of California; and
WHEREAS, the General Plan Land Use, Circulation and Mobility, Natural Resources, Economic Development, and Housing Elements include goals, policies, and narratives that express the high priority the community places on the protection and creation of open space and trails, and meeting the housing needs of the community and local business employment base; and WHEREAS, Ordinance No.19- 24 provides the city with a mechanism to achieve the goals and policies of the General Plan Land Use, Housing, Natural Resources, Circulation and Mobility, and Economic Development Elements, and to implement General Plan Implementation Program I-5 and Housing Element Policy Action 2E which identify a transfer of development rights ordinance as a means of creating opportunities for housing and open space in portions of the city with Urban Mixed Use zoning; and
WHEREAS, the Planning Commission, having considered the proposed changes to the OMC contained in Ordinance No. 19-24 at a public hearing held on June 3, 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 recommended City Council adoption of Ordinance No. 19-24; and
WHEREAS, the City Council, having now considered the proposed changes to the OMC contained in this Ordinance No. 19-24 at a public hearing held on _____, and having received public testimony on the item, desires to adopt the proposed ordinance.

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

SECTION I:

Final Program Environmental Impact Report (EIR) No. 1815-09 for the Comprehensive General Plan Update was certified on March 9, 2010 and prepared in accordance with the California Environmental Quality Act (CEQA). The proposed activity is within the scope of the previously approved General Plan and is adequately described in the previously certified General Plan 526
2 Program EIR for purposes of CEQA. This Ordinance is also exempt from the California Environmental Quality Act CEQA pursuant to, but not limited to, State CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment) because it establishes a mechanism that relieves development pressure on privately owned property designated for open space and residential development. Therefore, no further CEQA documentation is required.

SECTION II:

Section 17.44.210 is hereby added to Chapter 17.44 of the Orange Municipal Code as follows:

17.44.210 Transfer of Development Rights.

A development agreement entered into pursuant to this Chapter 17.44 of the Zoning Ordinance may include provisions for the Transfer of Development Rights as set forth below.

Transfer of development rights (TDR) allows the owner of property in a Sending Area, as defined, to voluntarily sell and transfer certain rights to develop to the owner of property in a Receiving Area, as defined. The intent of the TDR process is to provide a mechanism to facilitate housing development in certain areas of the community while preserving certain undeveloped property to facilitate the development of parks and recreational trails.

The transfer/elimination of development rights from the Sending Area shall be separately recorded as a deed restriction on the property at issue prohibiting future development based on the same rights that were transferred to the Sending Area property in perpetuity. The TDR to the Receiving Area property will be memorialized in the development agreement.

A. TDR Sending Areas. In accordance with the requirements in this Section, development rights may be severed and sold from properties located in the following TDR Sending Areas:

1. Privately-Owned Open Space Sending Area. To preserve their habitat and other environmental benefits as undeveloped open space, property in this Sending Area that are located fully within the Recreation Open Space, R-O Zoning District, are eligible for TDR as a Sending Area property, except properties reserved as “open space” in conjunction with the approval of a tentative tract map.

2. Former Rail Right-of-Way Sending Area. To preserve land for public trails, the portion of property that were formerly in the rail right-of-way and are either zoned with a residential classification or are un-zoned with a General Plan designation that includes residential use are eligible for TDR as a Sending Area property.

B. TDR Receiving Areas. In accordance with the requirements in this Section, development rights may be used to increase the allowable residential density for properties located fully within the Urban Mixed Use (UMU) zoning district, as contained in the City’s Official Zoning Map, which generally, at the time of the adoption of this Ordinance, includes properties along Katella Avenue, Rampart Street, The City Drive, and Town and Country Drive. 527
3 C. TDR Sending/Receiving Areas In accordance with the requirements in this Section, development rights may be transferred within the Urban Mixed Use Zone areas, which shall be both Sending and Receiving Areas, by properties located fully within the Urban Mixed Use (UMU) zoning district, as contained in the City’s Official Zoning Map, which generally, at the time of the adoption of this Ordinance, includes properties along Katella Avenue, Rampart Street, The City Drive, and Town and Country Drive.

D. TDR Credits. Development rights are expressed as a TDR credit, where one credit is equal to one residential dwelling unit. The use of TDR by an applicant is completely voluntary, and the price of the development rights is individually negotiated on a case-by-case basis between two willing property owners. The City shall maintain a publicly available ledger that records TDR credits certified by the City, development rights severed by Sending Area property owners, and TDR credits retired and used to increase the density of development by Receiving Area property owners.

E TDR Certification. Upon request of a Sending Area property owner and in conjunction with a completed application and payment of a fee that the City Council may adopt or amend, from time to time, by resolution, the Director of Community Development may certify the number of TDR credits which a property in a Sending Area can sever and sell, in accordance with the following:

1. Application for TDR Certification
The application for TDR certification shall include, at a minimum, the following:
a. A copy of the deed to the lot or parcel;
b. A title search completed within the six months prior to the application establishing whether the lot or parcel is subject to a deed restriction, or any other condition, covenant, or restriction that would prohibit or limit development on the lot or parcel; c. A conceptual property plan showing the development capacity of the lot or parcel and demonstrating compliance with setbacks, parking requirements, and all other applicable development standards;
d. The address of the property owner or agent thereof to which the City may send correspondence regarding TDR certification, renewal, expiration, and any intended retirement of development rights pursuant to a development agreement that the City intends to execute; and
e. Any other information deemed necessary by the Community Development Director. 528
4 2. TDR Credits.
a. Residential or Mixed-Use Sending Area Properties. For eligible Sending Area properties located in a residential zoning district or in an Urban Mixed Use (UMU) zoning district, the number of TDR credits shall equal the maximum number of residential dwelling units that the General Plan land use designation or the zoning district classification, whichever is higher, would allow to be constructed after accounting for any restrictions that would prohibit or limit residential development, less the number of residential dwelling units existing on the lot or parcel at the time of the application for TDR certification. The number of TDR credits shall be rounded down to the nearest one-tenth unit. The Community Development Director shall have sole discretion in making the determination as to the number of TDR credits, with appeal rights as set forth in Section 17.08.050. b. Former Right-of-Way. For eligible Sending Area properties located in the former rail right-of-way Sending Area and located in a residential zoning district or unzoned with a General Plan designation that includes residential use, only the portion of the property that was formerly within the rail right-of-way shall be used to determine the number of TDR credits. Each such property shall have a minimum development right of one dwelling unit solely for the purpose of calculating TDR credits that can be severed and sold. The City may certify twice the number of TDR credits if the Sending Area property owner grants a public easement to use the portion of the property that was formerly in the rail right-of-way as a public trail. The Community Development Director shall have sole discretion in making the determination as to the number of TDR credits, with appeal rights as set forth in Section

17.08.050.
c. Recreation Open Space Zoned Sending Properties. For eligible Sending Area properties located in the Recreation Open Space (R-OS) zoning district, the development rights shall be expressed as equivalent dwelling units based on the maximum allowable density under the abutting residential land use district. Should there be more than one abutting residential land use district, the district with the higher density shall serve as the reference. The number of TDR credits shall equal the property area, measured in square feet, after accounting for any restrictions that would restrict or limit development, divided by the theoretical maximum density. The number of TDR credits shall be rounded down to the nearest one-tenth unit. The City may certify twice the number of TDR credits if the Sending Area property owner grants a public easement to use the property for public parks and open space.

3. Determinations. The Community Development Director shall have sole discretion in making the determination as to the number of TDR credits, with appeal rights as set forth in Section 17.08.050.
529
5 4. Expiration of TDR Certification. Any TDR certification issued by the City shall be valid for one calendar year from the date of issuance and may be renewed for up to two one-year periods upon submission of an application for extension and the payment of any fee that the City Council may adopt and amend, from time and time, by resolution, for both application and renewal of the TDR certification. The initial certification and any renewals granted by the City shall be recorded in the TDR Ledger. When a TDR certification has expired, the property owner may reapply for a new certification.

5. Eligibility. Properties eligible for TDR as part of a Sending Area or Receiving Area must have been zoned as an eligible classification on the effective date of this Ordinance, except that properties zoned Commercial Recreation or un-zoned as of the effective date of this Ordinance that are re-zoned or zoned to Urban Mixed Use to achieve General Plan consistency shall be eligible for TDR.

B. Sale of TDR Development Rights

1. Sales. TDR credits may be sold at the discretion of the owner of an eligible Sending Area property, as defined in Section A, only after the TDR credits have been certified by the City in accordance with Section D.

2. Purchases. TDR credits may only be transferred to and retired by the owner of an eligible Receiving Area property, as defined in Section B, pursuant to a development agreement in accordance with Section H.

3. City Sales and Purchases. The requirements of Section F(2) notwithstanding, the City of Orange may purchase and hold TDR credits and may sell TDR credits to owners of eligible Receiving Area properties when, in the sole discretion of the City, the sales and purchases of such TDR credits would improve the market for development rights and further implement the General Plan.
a. Any and all City purchases of TDR credits shall be with the voluntary consent of the Sending Area property owner. The City may use a reverse auction to ensure that it pays the lowest available price for TDR credits.
b. Any and all City sales of TDR credits shall be with the voluntary consent of the Receiving Area property owner. The City may use an auction to ensure that it receives the highest acceptable price for TDR credits.

4. Development Agreement Required for Transfer. TDR development rights may only be transferred in conjunction with the adoption and execution of a development agreement in accordance with Section H and any other applicable provisions of this Municipal Code.

C. Use of TDR Credits
530
6 1. Use of TDR Credits. Pursuant to an executed development agreement, the City may allow each TDR credit purchased from a Sending Area property to be used on an eligible Receiving Area property to construct one residential dwelling unit in excess of the maximum density permitted under the General Plan designation or zoning classification, whichever is greater. Fractional TDR credits may only be used when bundled with other fractional TDR credits to yield one full TDR credit.

2. Maximum Density. The use of TDR credits may increase the density up to 25 percent of the maximum density permitted under the General Plan designation or zoning district classification for the eligible Receiving Area property.

3. Compliance with Development Standards. The use of TDR credits on an eligible Receiving Area property allows only for an increase in the maximum density. All other legal requirements such as development standards, fire, building and other Codes, allowable uses, and other requirements applicable to the zoning district remain in force, including but not limited to, height limitations, setbacks and yard requirements, parking standards, and open space requirements.

4. Density Bonus. The owner of an eligible Receiving Area property may use TDR credits to exceed the maximum allowable density for a property’s General Plan land use designation and also may use the density bonus provision for affordable housing included in Chapter 17.15, Density Bonus. When a property owner intends to use both TDR credits and the affordable housing density bonus, the calculation of the allowable affordable housing density bonus shall be calculated before the application of TDR credits.

D. Development Agreements for Transfer of Development Rights. The application for a development agreement for the TDR, the development agreement, the review and approval process, and recordation, shall comply with the requirements of this Chapter. The following additional requirements shall also apply:

1. The application for a development agreement for the TDR shall include:
a. A title search completed within the six months prior to the application establishing whether the Sending Area property is subject to a deed restriction, or any other condition, covenant, or restriction that would prohibit or limit development on the property;
b. A copy of the TDR certification;
c. An agreement executed by the Sending Area property owner in favor of the City of Orange, in a form acceptable to the City Attorney, to be recorded as a deed restricting future residential development on the Sending Area property from which development rights are being severed; 531
7 d. An agreement executed by the Sending Area property owner in favor of the City of Orange, in a form acceptable to the City Attorney, to be recorded to grant a public easement for a public trail or for a public park and open space, if any of the development rights are derived from the grant of such a public easement, pursuant to Section D(2) or D(3) above;
e. A project description identifying the number of residential dwelling units allowed by the General Plan land use designation and the zoning district classification of the Receiving Area lot(s) or parcel(s) and the resulting density, the number of TDR credits being applied to and retired for the proposed project, and the total number of residential dwelling units in the proposed project and the resulting density; and f. Any other information deemed necessary by the Community Development Director

2. The development agreement shall identify the number and source of all development rights being used by the proposed Receiving Area property and shall indicate that the recording of the development agreement shall act to sever the development rights from the Sending Area property and vest them in the Receiving Area property.

3. In addition to recording the development agreement in accordance with Section 17.44.150, the City Clerk shall record with the County Recorder any related deed restrictions limiting or prohibiting development on the Sending Area property, deeds conveying public easements, and deeds conveying land for public parks and open space, no later than 10 days after the City enters into the development agreement.

4. Recording of the development agreement shall vest the development rights with the Receiving Area property. The provisions of Section 17.44.160 notwithstanding, no amendment or cancellation of the development agreement shall remove the development rights vested in the Receiving or Sending Area property. The only recourse to reallocate the development rights is to commence a new process to sever and sell the development rights and transfer them to an eligible Receiving Area property SECTION III:

If any section, subdivision, paragraph, 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 fac that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION IV:

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.
532
8 APPROVED 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
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                                         
 
 
                        
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            
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                                                                                                           
   
 
 
                
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Agenda Item
City Council
Item #: 10.1. 6/25/2024 File #: 24-0394
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Fiscal Year 2024-25 City of Orange Budget and Five-Year Capital Improvement Program.

2. SUMMARY
Each spring, the City staff presents the City Council with an annual budget that serves as the City’s financial and operational plan for the upcoming fiscal year. This budget document is prepared following two City Council study sessions, two regular meetings, and one special meeting during which various aspects of the proposed budget were considered and Council direction was given.

3. RECOMMENDED ACTION
The following action items are recommended to adopt the Fiscal Year 2024-25 Budget, effective July 1, 2024:

1. Adopt Resolution No. 11565. A Resolution of the City Council of the City of Orange adopting said City’s Budget for Fiscal Year 2024-25 and authorizing transfer of funds within and between appropriations, transfer of funds between funds, and additional appropriations.

2. Adopt Resolution No. 11564. A Resolution of the City Council of the City of Orange adopting the appropriations limit for Fiscal Year 2024-25.

3. Adopt Resolution No. 11566. A Resolution of the City Council of the City of Orange to approve and authorize staff to submit to the Orange County Transportation Authority the Measure M2 Seven-Year Capital Improvement Program for Fiscal Year 2024-25 through 2030-31 to comply with Measure M2 eligibility criteria.

4. Adopt Resolution No. 11560. A Resolution of the City Council of The City of Orange amending Resolution No. 11511 between the City of Orange and The Orange Municipal Employees’ Association.

5. Adopt Resolution No. 11562. A Resolution of the City Council of The City of Orange Rescinding Resolution No. 11533 and amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.

4. FISCAL IMPACT
Adoption of the annual budget establishes the City financial plan for Fiscal Year 2024-25.

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

City of Orange Page 1 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.

6. DISCUSSION AND BACKGROUND
Background:

The City’s budget is a financial plan based on anticipated revenues and expenditures in a fiscal year starting July 1 through June 30. Each year, the City’s budget is prepared, prioritizing public safety and infrastructure projects, City Council Goals, and providing the highest possible service levels to the community. The Fiscal Year 2024-25 (FY25) budget development has been presented and reviewed at five City Council meetings and three Budget Ad Hoc meetings.

The adoption of the FY25 Budget and related documents will ensure the City has established a set of legally adopted appropriations, met all the requirements of the Gann Initiative, and complied with the Measure M and Transportation Congestion Relief Fund (TCRF) funding requirements (Maintenance of Effort) of a Seven-Year Transportation Capital Improvement Plan. And the FY25 budget represents the City’s spending plan for the coming fiscal year, which will begin July 1, 2024 and end June 30, 2025.

In summary, the FY25 Budget, for all funds, includes total revenues of approximately $259.9 million and total expenditures of $281.7 million, including transfers and Redevelopment Agencies. The General Fund total revenues are approximately $148.2 million and expenditures of $156.2 million, including transfers.

Discussion:

Fiscal Year 2023-24 (FY24) General Fund Year-End Estimates Staff presented an operating deficit of approximately $1.1 million during the mid-year review. Since then, staff has updated the year-end estimates for the General Fund and we anticipate closing FY24 with a surplus of approximately $5.1 million. The surplus is from one-time revenue of $3 million from CR&R for road mitigation and a $2.5 million transfer from the Capital Project Fund that was approved last year to balance the FY24 budget. After setting aside required funding to the designated Catastrophic Reserve (16.6%), the General Fund has a projected undesigned fund balance of about $3.7 million. This estimate is based on year-to-date actual and does not include any year-end entries.

Staff will return in the fall with a more comprehensive review of FY24 once the books have been closed.

Fiscal Year 2024-25 (FY25) General Fund Revenues
The FY25 total General Fund operating revenues, not including transfers in, are projected to be approximately $145 million, almost $5 million or 3.6% over the estimated ending revenue for FY24.

Provided in Table 1 is a summary of the major General Fund revenues by source type, comparing the changes from FY24 year-end estimates and FY25 proposed revenues:

Table 1: FY25 General Fund Revenue
Revenue Source FY 23
Actuals
FY 24 Year
End
Estimates
FY 25
Proposed
Budget
Variance
from YE
Estimates
Property Tax 52,059,067 54,269,600 55,710,900 1,441,300 2.7% Sales Tax 50,110,935 50,010,600 51,617,688 1,607,100 3.2% TOT 6,080,399 5,860,000 5,850,000 25,588 0.4%
Franchises 2622044 3114100 3220194 106094 34%
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Item #: 10.1. 6/25/2024 File #: 24-0394
Revenue Source FY 23
Actuals
FY 24 Year
End
Estimates
FY 25
Proposed
Budget
Variance
from YE
Estimates
Property Tax 52,059,067 54,269,600 55,710,900 1,441,300 2.7% Sales Tax 50,110,935 50,010,600 51,617,688 1,607,100 3.2% TOT 6,080,399 5,860,000 5,850,000 25,588 0.4%
Franchises 2,622,044 3,114,100 3,220,194 106,094 3.4%
Licenses and Permits 6,983,399 6,988,100 7,089,937 101,837 1.5% Fines and Forfeitures 2,008,770 2,024,800 3,040,600 1,015,800 50.2% Use of Money Property 2,379,075 5,369,400 3,075,251 (2,294,149)-42.7% Rev from Other Agencies 1,235,990 3,180,500 1,367,632 (1,839,668)-57.8% Fees for Services 6,491,550 6,141,000 6,053,273 (87,727) -1.4% Miscellaneous Revenues 2,779,559 1,406,700 1,123,065 (283,635)-20.2% Interfund Revenues 3,526,228 3,635,600 7,050,201 3,414,601 93.9% Total Operating Revenue 136,277,016 142,000,400 145,198,741 3,207,141 2.3% Transfers In 2,000,000 2,629,162 - (2,629,162)-100.0%
CR&R - 3,000,000 3,000,000 - 0.0%
Total Revenues 138,277,016 147,629,562 148,198,741 577,979 0.4% Provided below is a summary of the assumptions used for the FY25 General Fund revenues:
· Property Tax is the largest source of General Fund revenue and is projected to be $55.7 million. Given its historically stable growth rates, the FY25 projected revenue is just under $1.5 million or 2.7% increase from FY24 year-end estimates. Revenue growth is associated with assessed property values which typically increase each year at a rate no greater than 2%.

Additional growth comes from home sales which trigger property reassessments and Proposition 8 value recaptures.
· Sales Tax is the second largest source of General Fund revenue. In FY25, the City anticipates receiving about $51.7 million, over $1.6 million or 3.2% above the FY24 year-end estimate. In the current economic environment, household spending has remained strong and trends are slightly more favorable than the prior year’s projections. · Transient Occupancy Tax (TOT) is projected to be approximately $5.9 million, remaining flat from the FY24 year-end estimate. Business and leisure travel activity is expected to remain at current levels in FY25. Approximately $600,000 of this revenue is attributable to the Short-term Rental (STR) program which currently has 125 licensed properties. · Licenses and Permits are currently projected to be slightly over $7 million, just over a 1% increase from the FY24 estimate. There are no material changes anticipated for buildingrelated permits and annual fire permits in FY25. However, upon completion of the fee and cost allocation study, staff will return to the City Council for consideration on updating the Master Fee Schedule.
· Fines and Forfeitures are projected to be over $3 million, an increase of $1 million or 50% from FY24 estimates. This increase is mostly attributed to anticipated increased revenue from City of Orange Page 3 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
the augmented parking enforcement program.
· Fees for Service are currently projected to be over $6 million, a slight decrease of about $88,000 or -1% from the FY24 estimate. This is mostly attributed to a slight decrease in development fee-related activity. However, similar to Licenses and Permits, upon completion of the fee and cost allocation study, staff will return to the City Council for consideration on updating the Master Fee Schedule.
· Interfund Revenues are projected to be about $7 million, an increase of $3.4 million or 94% from the FY24 year-end estimate. This process charges other departments their portion of the cost of administrative service departments for services such as information technology, finance, human resources, and other citywide, non-departmental costs. These charges are applied as revenue to the General Fund and used to offset the operating costs. Similar to Licenses and Permits and Fees for Service, upon the completion of the fee and cost allocation study, staff will be returning to the City Council for consideration on updating the Master Fee Schedule.
· Other Revenue Sources, which include Use of Money & Property, Revenue from Other Agencies, and Miscellaneous Revenues are projected to decrease by about $4.4 million, or - 44% as compared to the FY24 estimate. Revenues in these categories include one-time revenues from donations or grants, reimbursements for expenditures, as well as income from investment interest and rental income. Many of these one-time revenues are difficult to project and fluctuate year over year.
· Transfers In, at the May 28th City Council meeting, the City Council authorized the transfer of $3,000,000 one-time funding received from CR&R for road mitigation to the General Fund.

This is a one-time transfer for FY25.

At the May 28th City Council meeting, the City Council directed staff to pursue 12 revenue enhancements of which three are available in FY25 and the remaining nine will require additional research. Staff will return to the City Council with details of these revenue enhancements as they become available. The following revenue enhancements are included in the adopted budget document for FY25:
· Passing on credit card fees to users for $150,000,
· Collecting on business license back tax $51,000, and
· Parking enforcement $1,000,000.

Details on all revenue enhancement are available in Attachment F.

In summary, the General Fund operating revenues, not including transfers, are projected to increase by $3.2 million, or 2.3% over current year-end estimates, bringing the total operating revenue to over $145.2 million. The total FY25 General Fund revenue with transfer in is $148.2 million. Staff will return to the City Council to amend the revenue projections as additional revenues become available.

Fiscal Year 2024-25 (FY25) General Fund Expenditures
The General Fund operating expenditure amounts to $156.2 million. This is an increase of almost City of Orange Page 4 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
The General Fund operating expenditure amounts to $156.2 million. This is an increase of almost $12 million or 8.3% increase in expenditure over the FY24 year-end estimate. The operating expenditure reflects an expenditure reduction of almost $4.1 million approved by the City Council at the June 11th meeting. Details of the reduction are available in Attachment G. The increase is attributed to the elimination of the 4% vacancy savings rate, which was budgeted in previous fiscal years, contractual increases in the labor groups, increased funding allocations, and the rising costs for materials and services.

Table 2: FY25 Estimated General Fund Expenditure
Expenditure Category FY23 Actuals
FY24 Year
End
Estimates
FY25
Proposed
Budget
Variance
from YE
Estimate
Salaries/Benefits 93,878,356 99,743,786 106,776,309 7,032,523 7.1% Contractual Services 14,591,246 16,026,322 14,733,290 (1,293,032) -8.1% Misc Expenditure 548,951 346,187 642,200 296,013 85.5%
Materials/Supplies 2,590,240 2,280,339 2,468,201 187,862 8.2% Capital Outlay 501,255 484,288 28,800 (455,488) -94.1%
Debt Service – Pension
Obligation Bonds
14,665,936 15,507,397 15,544,030 36,633

0.2%
Debt Service – Lease
Revenue Bond
1,715,400 1,713,000 1,714,700 1,700

0.1%
Debt Service – Other 192,856 - - 0.0%
Capital Improvement - - - 0.0%
Allocations 6,900,081 8,128,634 14,293,201 6,164,567 75.8% Total Operating 135,584,321 144,229,953 156,200,731 11,970,778 8.3% Transfers Out 25,850,849 - - - 0.0%
Total Expenditure 161,435,170 144,229,953 156,200,731 11,970,778 8.3% Provided below are the budget assumptions impacting the FY25 General Fund expenditures:
· Salaries and Benefits: Salaries and benefits are projected to be slightly under $107 million, about 7.1% or $7 million more than the FY24 year-end estimate. The increase was reduced from the original projection of about $10.6 million due to the approximately $2.5 million in budget reductions that were approved by the City Council and almost $1 million from budgeting for vacant positions at 75% to align with the recruitment schedule. As noted previously, the increase of $10.6 million is a combination of eliminating the 4% vacancy rate that was previously included in the prior year budget, negotiated salary increases, and regular salary step increases for applicable employees.
· Contractual Services: Expenditures in the Contractual Services category are projected to be almost $14.7 million, about -8.1% or $1.3 million less than the FY24 year-end estimate. This reflects the approved service reductions by the City Council on June 11th. · Miscellaneous Expenditure: Miscellaneous Expenditure is projected to be a little more than $640,000, about 86% or $296,000 more than the FY24 year-end estimate. Most of this increase is due to 2024 General Election costs, estimated to be about $250,000.

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Item #: 10.1. 6/25/2024 File #: 24-0394
· Debt Service: The City’s debt service payments can be split into two categories - the Pension Obligation Bonds and the Lease Revenue Bond. The Pension Obligation Bonds were purchased in 2020 to pay down the City’s Unfunded Accrued Liability (UAL) balance, thus reducing the City’s debt to CalPERs while taking advantage of favorable interest rates. The City’s Lease Revenue Bond was purchased in 2020 to invest in public safety infrastructure.

Combined, the FY25 interest and principal payments for these bonds are scheduled to increase by just over $38,000 or 0.3% increase compared to FY24. · Allocations (Internal Service Funds): Allocations to the City’s Internal Service Funds from the General Fund supports operating costs related to vehicle and computer equipment maintenance, accrued liability, and vehicle replacements. Historically, these internal service funds were underfunded in an effort to decrease impacts to the General Fund at the time of budget adoption, with the intent to supplement any necessary overages by utilizing surplus at the end of the year through transfers. As the City has continued to face budgetary challenges, there has been less surplus realized, leaving these funds underfunded and deferring necessary replacements. For FY25, staff project about $14.3 million for operating costs, between the Equipment Maintenance, Computer Equipment Maintenance, Accrued Liability, and Vehicle Replacement funds to ensure the City is fully supporting these areas. Staff will return to the City Council for consideration with an updated cost allocation plan once the study is complete.

In summary, the General Fund operating expenditures, not including transfers, are projected to increase by almost $12 million, or 8.3% over current year-end estimates, bringing the total operating expenditures to over $156.2 million.

General Fund Balance for FY25
Based on the FY24 year-end estimates, the beginning undesignated fund balance is expected to be $3.7 million. With the proposed expenditures exceeding revenues by almost $8 million and the required increase to the Catastrophic Reserve, the projected ending fund balance is an approximate $6.3 million deficit. The following table highlights the FY25 General Fund budget and undesignated fund balance.

Table 3: Proposed General Fund Balance
FY24 Year End
Estimates FY25 Budget Variance
Revenues 142,000,400 145,207,541 3,207,141
Transfers-in 5,629,162 3,000,000 (2,629,162)
Total Revenues 147,629,562 148,207,541 577,979
Expenditures 144,229,953 156,201,761 11,971,808
Transfers-out - - -
Total Expenditures 144,229,953 156,201,761 11,971,808
Carryover from prior year 1,736,528 - (1,736,528)
Operating Surpulus/(Deficit) 5,136,137 (7,994,220) (13,130,357) Estimated Beginning Undesignated
Fund Balance 11,687 3,712,649 3,700,962
Additional/(Reduction) to catastrophic
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Item #: 10.1. 6/25/2024 File #: 24-0394
FY24 Year End
Estimates FY25 Budget Variance
Revenues 142,000,400 145,207,541 3,207,141
Transfers-in 5,629,162 3,000,000 (2,629,162)
Total Revenues 147,629,562 148,207,541 577,979
Expenditures 144,229,953 156,201,761 11,971,808
Transfers-out - - -
Total Expenditures 144,229,953 156,201,761 11,971,808
Carryover from prior year 1,736,528 - (1,736,528)
Operating Surpulus/(Deficit) 5,136,137 (7,994,220) (13,130,357) Estimated Beginning Undesignated
Fund Balance 11,687 3,712,649 3,700,962
Additional/(Reduction) to catastrophic
reserve 1,435,175 1,987,320 552,145
Projected undesignated ending
fund balance 3,712,649 (6,268,891) (9,981,540)
*The additional $1,987,320 is needed to meet required catastrophic reserve. The Catastrophic reserve balance at June 30, 2025 is projected to be $25,929,492.

Staff will continue to review the City’s budget with the Budget Ad hoc committee in the upcoming year to continue to refine the FY25 budget. As additional reductions and/or amendments are identified, staff will return to the City Council with the recommended actions.

The budget presented is an abbreviated version and focuses only on the General Fund. The attached budget package, Attachment A, contains the essential elements that are included and required for adoption of the FY25 Budget including:
· Budget Resolutions
· Schedule of Changes in Fund Balance
· Statement of Revenues and Expenditures
· FY25 Capital Improvement Projects
· Five-Year Capital Improvement Plan
Conclusion
Following adoption of the FY25 Budget, staff will complete the preparation of the Budget and Capital Improvement Plan documents and present them to the City Council upon publication. Staff will return to the City Council with recommendations on additional revenue enhancements and budget reductions, if needed.

7. ATTACHMENTS
· Attachment A - 1) Resolution No. 11565
· Attachment A - 2) FY25 Schedule of Changes in Fund Balance · Attachment A - 3) Statement of Revenues and Expenditures City of Orange Page 7 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
· Attachment A - 4) FY 25 Capital Improvement Projects
· Attachment A - 5) Five-Year Capital Improvement Plan
· Attachment B - Resolution No. 11564
· Attachment C - Resolution No. 11566
· Attachment D - Resolution No. 11560
· Attachment E - Resolution No. 11562
· Attachment F - FY25 Revenue Enhancements
· Attachment G - FY25 Budget Reductions
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Agenda Item
City Council
Item #: 10.1. 6/25/2024 File #: 24-0394
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Fiscal Year 2024-25 City of Orange Budget and Five-Year Capital Improvement Program.

2. SUMMARY
Each spring, the City staff presents the City Council with an annual budget that serves as the City’s financial and operational plan for the upcoming fiscal year. This budget document is prepared following two City Council study sessions, two regular meetings, and one special meeting during which various aspects of the proposed budget were considered and Council direction was given.

3. RECOMMENDED ACTION
The following action items are recommended to adopt the Fiscal Year 2024-25 Budget, effective July 1, 2024:

1. Adopt Resolution No. 11565. A Resolution of the City Council of the City of Orange adopting said City’s Budget for Fiscal Year 2024-25 and authorizing transfer of funds within and between appropriations, transfer of funds between funds, and additional appropriations.

2. Adopt Resolution No. 11564. A Resolution of the City Council of the City of Orange adopting the appropriations limit for Fiscal Year 2024-25.

3. Adopt Resolution No. 11566. A Resolution of the City Council of the City of Orange to approve and authorize staff to submit to the Orange County Transportation Authority the Measure M2 Seven-Year Capital Improvement Program for Fiscal Year 2024-25 through 2030-31 to comply with Measure M2 eligibility criteria.

4. Adopt Resolution No. 11560. A Resolution of the City Council of The City of Orange amending Resolution No. 11511 between the City of Orange and The Orange Municipal Employees’ Association.

5. Adopt Resolution No. 11562. A Resolution of the City Council of The City of Orange Rescinding Resolution No. 11533 and amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.

4. FISCAL IMPACT
Adoption of the annual budget establishes the City financial plan for Fiscal Year 2024-25.

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

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Item #: 10.1. 6/25/2024 File #: 24-0394
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.

6. DISCUSSION AND BACKGROUND
Background:

The City’s budget is a financial plan based on anticipated revenues and expenditures in a fiscal year starting July 1 through June 30. Each year, the City’s budget is prepared, prioritizing public safety and infrastructure projects, City Council Goals, and providing the highest possible service levels to the community. The Fiscal Year 2024-25 (FY25) budget development has been presented and reviewed at five City Council meetings and three Budget Ad Hoc meetings.

The adoption of the FY25 Budget and related documents will ensure the City has established a set of legally adopted appropriations, met all the requirements of the Gann Initiative, and complied with the Measure M and Transportation Congestion Relief Fund (TCRF) funding requirements (Maintenance of Effort) of a Seven-Year Transportation Capital Improvement Plan. And the FY25 budget represents the City’s spending plan for the coming fiscal year, which will begin July 1, 2024 and end June 30, 2025.

In summary, the FY25 Budget, for all funds, includes total revenues of approximately $259.9 million and total expenditures of $281.7 million, including transfers and Redevelopment Agencies. The General Fund total revenues are approximately $148.2 million and expenditures of $156.2 million, including transfers.

Discussion:

Fiscal Year 2023-24 (FY24) General Fund Year-End Estimates Staff presented an operating deficit of approximately $1.1 million during the mid-year review. Since then, staff has updated the year-end estimates for the General Fund and we anticipate closing FY24 with a surplus of approximately $5.1 million. The surplus is from one-time revenue of $3 million from CR&R for road mitigation and a $2.5 million transfer from the Capital Project Fund that was approved last year to balance the FY24 budget. After setting aside required funding to the designated Catastrophic Reserve (16.6%), the General Fund has a projected undesigned fund balance of about $3.7 million. This estimate is based on year-to-date actual and does not include any year-end entries.

Staff will return in the fall with a more comprehensive review of FY24 once the books have been closed.

Fiscal Year 2024-25 (FY25) General Fund Revenues
The FY25 total General Fund operating revenues, not including transfers in, are projected to be approximately $145 million, almost $5 million or 3.6% over the estimated ending revenue for FY24.

Provided in Table 1 is a summary of the major General Fund revenues by source type, comparing the changes from FY24 year-end estimates and FY25 proposed revenues:

Table 1: FY25 General Fund Revenue
Revenue Source FY 23
Actuals
FY 24 Year
End
Estimates
FY 25
Proposed
Budget
Variance
from YE
Estimates
Property Tax 52,059,067 54,269,600 55,710,900 1,441,300 2.7% Sales Tax 50,110,935 50,010,600 51,617,688 1,607,100 3.2% TOT 6,080,399 5,860,000 5,850,000 25,588 0.4%
Franchises 2622044 3114100 3220194 106094 34%
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Item #: 10.1. 6/25/2024 File #: 24-0394
Revenue Source FY 23
Actuals
FY 24 Year
End
Estimates
FY 25
Proposed
Budget
Variance
from YE
Estimates
Property Tax 52,059,067 54,269,600 55,710,900 1,441,300 2.7% Sales Tax 50,110,935 50,010,600 51,617,688 1,607,100 3.2% TOT 6,080,399 5,860,000 5,850,000 25,588 0.4%
Franchises 2,622,044 3,114,100 3,220,194 106,094 3.4%
Licenses and Permits 6,983,399 6,988,100 7,089,937 101,837 1.5% Fines and Forfeitures 2,008,770 2,024,800 3,040,600 1,015,800 50.2% Use of Money Property 2,379,075 5,369,400 3,075,251 (2,294,149)-42.7% Rev from Other Agencies 1,235,990 3,180,500 1,367,632 (1,839,668)-57.8% Fees for Services 6,491,550 6,141,000 6,053,273 (87,727) -1.4% Miscellaneous Revenues 2,779,559 1,406,700 1,123,065 (283,635)-20.2% Interfund Revenues 3,526,228 3,635,600 7,050,201 3,414,601 93.9% Total Operating Revenue 136,277,016 142,000,400 145,198,741 3,207,141 2.3% Transfers In 2,000,000 2,629,162 - (2,629,162)-100.0%
CR&R - 3,000,000 3,000,000 - 0.0%
Total Revenues 138,277,016 147,629,562 148,198,741 577,979 0.4% Provided below is a summary of the assumptions used for the FY25 General Fund revenues:
· Property Tax is the largest source of General Fund revenue and is projected to be $55.7 million. Given its historically stable growth rates, the FY25 projected revenue is just under $1.5 million or 2.7% increase from FY24 year-end estimates. Revenue growth is associated with assessed property values which typically increase each year at a rate no greater than 2%.

Additional growth comes from home sales which trigger property reassessments and Proposition 8 value recaptures.
· Sales Tax is the second largest source of General Fund revenue. In FY25, the City anticipates receiving about $51.7 million, over $1.6 million or 3.2% above the FY24 year-end estimate. In the current economic environment, household spending has remained strong and trends are slightly more favorable than the prior year’s projections. · Transient Occupancy Tax (TOT) is projected to be approximately $5.9 million, remaining flat from the FY24 year-end estimate. Business and leisure travel activity is expected to remain at current levels in FY25. Approximately $600,000 of this revenue is attributable to the Short-term Rental (STR) program which currently has 125 licensed properties. · Licenses and Permits are currently projected to be slightly over $7 million, just over a 1% increase from the FY24 estimate. There are no material changes anticipated for buildingrelated permits and annual fire permits in FY25. However, upon completion of the fee and cost allocation study, staff will return to the City Council for consideration on updating the Master Fee Schedule.
· Fines and Forfeitures are projected to be over $3 million, an increase of $1 million or 50% from FY24 estimates. This increase is mostly attributed to anticipated increased revenue from City of Orange Page 3 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
the augmented parking enforcement program.
· Fees for Service are currently projected to be over $6 million, a slight decrease of about $88,000 or -1% from the FY24 estimate. This is mostly attributed to a slight decrease in development fee-related activity. However, similar to Licenses and Permits, upon completion of the fee and cost allocation study, staff will return to the City Council for consideration on updating the Master Fee Schedule.
· Interfund Revenues are projected to be about $7 million, an increase of $3.4 million or 94% from the FY24 year-end estimate. This process charges other departments their portion of the cost of administrative service departments for services such as information technology, finance, human resources, and other citywide, non-departmental costs. These charges are applied as revenue to the General Fund and used to offset the operating costs. Similar to Licenses and Permits and Fees for Service, upon the completion of the fee and cost allocation study, staff will be returning to the City Council for consideration on updating the Master Fee Schedule.
· Other Revenue Sources, which include Use of Money & Property, Revenue from Other Agencies, and Miscellaneous Revenues are projected to decrease by about $4.4 million, or - 44% as compared to the FY24 estimate. Revenues in these categories include one-time revenues from donations or grants, reimbursements for expenditures, as well as income from investment interest and rental income. Many of these one-time revenues are difficult to project and fluctuate year over year.
· Transfers In, at the May 28th City Council meeting, the City Council authorized the transfer of $3,000,000 one-time funding received from CR&R for road mitigation to the General Fund.

This is a one-time transfer for FY25.

At the May 28th City Council meeting, the City Council directed staff to pursue 12 revenue enhancements of which three are available in FY25 and the remaining nine will require additional research. Staff will return to the City Council with details of these revenue enhancements as they become available. The following revenue enhancements are included in the adopted budget document for FY25:
· Passing on credit card fees to users for $150,000,
· Collecting on business license back tax $51,000, and
· Parking enforcement $1,000,000.

Details on all revenue enhancement are available in Attachment F.

In summary, the General Fund operating revenues, not including transfers, are projected to increase by $3.2 million, or 2.3% over current year-end estimates, bringing the total operating revenue to over $145.2 million. The total FY25 General Fund revenue with transfer in is $148.2 million. Staff will return to the City Council to amend the revenue projections as additional revenues become available.

Fiscal Year 2024-25 (FY25) General Fund Expenditures
The General Fund operating expenditure amounts to $156.2 million. This is an increase of almost City of Orange Page 4 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
The General Fund operating expenditure amounts to $156.2 million. This is an increase of almost $12 million or 8.3% increase in expenditure over the FY24 year-end estimate. The operating expenditure reflects an expenditure reduction of almost $4.1 million approved by the City Council at the June 11th meeting. Details of the reduction are available in Attachment G. The increase is attributed to the elimination of the 4% vacancy savings rate, which was budgeted in previous fiscal years, contractual increases in the labor groups, increased funding allocations, and the rising costs for materials and services.

Table 2: FY25 Estimated General Fund Expenditure
Expenditure Category FY23 Actuals
FY24 Year
End
Estimates
FY25
Proposed
Budget
Variance
from YE
Estimate
Salaries/Benefits 93,878,356 99,743,786 106,776,309 7,032,523 7.1% Contractual Services 14,591,246 16,026,322 14,733,290 (1,293,032) -8.1% Misc Expenditure 548,951 346,187 642,200 296,013 85.5%
Materials/Supplies 2,590,240 2,280,339 2,468,201 187,862 8.2% Capital Outlay 501,255 484,288 28,800 (455,488) -94.1%
Debt Service – Pension
Obligation Bonds
14,665,936 15,507,397 15,544,030 36,633

0.2%
Debt Service – Lease
Revenue Bond
1,715,400 1,713,000 1,714,700 1,700

0.1%
Debt Service – Other 192,856 - - 0.0%
Capital Improvement - - - 0.0%
Allocations 6,900,081 8,128,634 14,293,201 6,164,567 75.8% Total Operating 135,584,321 144,229,953 156,200,731 11,970,778 8.3% Transfers Out 25,850,849 - - - 0.0%
Total Expenditure 161,435,170 144,229,953 156,200,731 11,970,778 8.3% Provided below are the budget assumptions impacting the FY25 General Fund expenditures:
· Salaries and Benefits: Salaries and benefits are projected to be slightly under $107 million, about 7.1% or $7 million more than the FY24 year-end estimate. The increase was reduced from the original projection of about $10.6 million due to the approximately $2.5 million in budget reductions that were approved by the City Council and almost $1 million from budgeting for vacant positions at 75% to align with the recruitment schedule. As noted previously, the increase of $10.6 million is a combination of eliminating the 4% vacancy rate that was previously included in the prior year budget, negotiated salary increases, and regular salary step increases for applicable employees.
· Contractual Services: Expenditures in the Contractual Services category are projected to be almost $14.7 million, about -8.1% or $1.3 million less than the FY24 year-end estimate. This reflects the approved service reductions by the City Council on June 11th. · Miscellaneous Expenditure: Miscellaneous Expenditure is projected to be a little more than $640,000, about 86% or $296,000 more than the FY24 year-end estimate. Most of this increase is due to 2024 General Election costs, estimated to be about $250,000.

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Item #: 10.1. 6/25/2024 File #: 24-0394
· Debt Service: The City’s debt service payments can be split into two categories - the Pension Obligation Bonds and the Lease Revenue Bond. The Pension Obligation Bonds were purchased in 2020 to pay down the City’s Unfunded Accrued Liability (UAL) balance, thus reducing the City’s debt to CalPERs while taking advantage of favorable interest rates. The City’s Lease Revenue Bond was purchased in 2020 to invest in public safety infrastructure.

Combined, the FY25 interest and principal payments for these bonds are scheduled to increase by just over $38,000 or 0.3% increase compared to FY24. · Allocations (Internal Service Funds): Allocations to the City’s Internal Service Funds from the General Fund supports operating costs related to vehicle and computer equipment maintenance, accrued liability, and vehicle replacements. Historically, these internal service funds were underfunded in an effort to decrease impacts to the General Fund at the time of budget adoption, with the intent to supplement any necessary overages by utilizing surplus at the end of the year through transfers. As the City has continued to face budgetary challenges, there has been less surplus realized, leaving these funds underfunded and deferring necessary replacements. For FY25, staff project about $14.3 million for operating costs, between the Equipment Maintenance, Computer Equipment Maintenance, Accrued Liability, and Vehicle Replacement funds to ensure the City is fully supporting these areas. Staff will return to the City Council for consideration with an updated cost allocation plan once the study is complete.

In summary, the General Fund operating expenditures, not including transfers, are projected to increase by almost $12 million, or 8.3% over current year-end estimates, bringing the total operating expenditures to over $156.2 million.

General Fund Balance for FY25
Based on the FY24 year-end estimates, the beginning undesignated fund balance is expected to be $3.7 million. With the proposed expenditures exceeding revenues by almost $8 million and the required increase to the Catastrophic Reserve, the projected ending fund balance is an approximate $6.3 million deficit. The following table highlights the FY25 General Fund budget and undesignated fund balance.

Table 3: Proposed General Fund Balance
FY24 Year End
Estimates FY25 Budget Variance
Revenues 142,000,400 145,207,541 3,207,141
Transfers-in 5,629,162 3,000,000 (2,629,162)
Total Revenues 147,629,562 148,207,541 577,979
Expenditures 144,229,953 156,201,761 11,971,808
Transfers-out - - -
Total Expenditures 144,229,953 156,201,761 11,971,808
Carryover from prior year 1,736,528 - (1,736,528)
Operating Surpulus/(Deficit) 5,136,137 (7,994,220) (13,130,357) Estimated Beginning Undesignated
Fund Balance 11,687 3,712,649 3,700,962
Additional/(Reduction) to catastrophic
City of Orange Page 6 of 8 Printed on 6/20/2024
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Item #: 10.1. 6/25/2024 File #: 24-0394
FY24 Year End
Estimates FY25 Budget Variance
Revenues 142,000,400 145,207,541 3,207,141
Transfers-in 5,629,162 3,000,000 (2,629,162)
Total Revenues 147,629,562 148,207,541 577,979
Expenditures 144,229,953 156,201,761 11,971,808
Transfers-out - - -
Total Expenditures 144,229,953 156,201,761 11,971,808
Carryover from prior year 1,736,528 - (1,736,528)
Operating Surpulus/(Deficit) 5,136,137 (7,994,220) (13,130,357) Estimated Beginning Undesignated
Fund Balance 11,687 3,712,649 3,700,962
Additional/(Reduction) to catastrophic
reserve 1,435,175 1,987,320 552,145
Projected undesignated ending
fund balance 3,712,649 (6,268,891) (9,981,540)
*The additional $1,987,320 is needed to meet required catastrophic reserve. The Catastrophic reserve balance at June 30, 2025 is projected to be $25,929,492.

Staff will continue to review the City’s budget with the Budget Ad hoc committee in the upcoming year to continue to refine the FY25 budget. As additional reductions and/or amendments are identified, staff will return to the City Council with the recommended actions.

The budget presented is an abbreviated version and focuses only on the General Fund. The attached budget package, Attachment A, contains the essential elements that are included and required for adoption of the FY25 Budget including:
· Budget Resolutions
· Schedule of Changes in Fund Balance
· Statement of Revenues and Expenditures
· FY25 Capital Improvement Projects
· Five-Year Capital Improvement Plan
Conclusion
Following adoption of the FY25 Budget, staff will complete the preparation of the Budget and Capital Improvement Plan documents and present them to the City Council upon publication. Staff will return to the City Council with recommendations on additional revenue enhancements and budget reductions, if needed.

7. ATTACHMENTS
· Attachment A - 1) Resolution No. 11565
· Attachment A - 2) FY25 Schedule of Changes in Fund Balance · Attachment A - 3) Statement of Revenues and Expenditures City of Orange Page 7 of 8 Printed on 6/20/2024
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· Attachment A - 4) FY 25 Capital Improvement Projects
· Attachment A - 5) Five-Year Capital Improvement Plan
· Attachment B - Resolution No. 11564
· Attachment C - Resolution No. 11566
· Attachment D - Resolution No. 11560
· Attachment E - Resolution No. 11562
· Attachment F - FY25 Revenue Enhancements
· Attachment G - FY25 Budget Reductions
City of Orange Page 8 of 8 Printed on 6/20/2024
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RESOLUTION NO. 11565

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE ADOPTING SAID
CITY’S BUDGET FOR THE FISCAL YEAR 2024-
25 AND AUTHORIZING TRANSFER OF FUNDS

WITHIN AND BETWEEN APPROPRIATIONS,

TRANSFER OF FUNDS BETWEEN FUNDS, AND
ADDITIONAL APPROPRIATIONS.

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

SECTION I. Adoption of Budget
The City of Orange budget for the Fiscal Year 2024-25, as amended by the City Council and on file in the office of the City Clerk, is hereby adopted as the budget for the City of Orange for the Fiscal Year 2024-25. Appropriations for the Annuel Budget are set forth in the Schedule of Operating Expenditures by Fund. Appropriations existing as of June 30, 2024, for CIP projects will be carried over to the 2024-25 fiscal year except for those projects which are completed, as determined by the City Manager, before the end of the 2023-24 fiscal year.

SECTION II. Transfer of Funds Within and Between Appropriations A. Transfer of Funds within an operating appropriation – Department Heads may transfer funds between non-salary object group classifications or programs within their operating departmental appropriation with the approval of the Finance Director. The City Manager’s approval is required to transfer funds to or from salary accounts within a departmental appropriation.

B. All other transfers between appropriations, including departmental budgets, capital projects, debt service or pass throughs, must be approved by the affirmative vote of four members of the City Council.

SECTION III. Transfers of Funds Between Funds
Transfer of funds between funds, as outlined in the Schedule of Transfers in the Budget document, shall be made as expenditures or revenues warrant such transfers. Other transfers may be approved by the affirmative vote of four members of the City Council.

SECTION IV. Additional Appropriations
Excepting donations of $5,000 or less per donor within a fiscal year, only the City Council, by the affirmative vote of four members, may amend the budget to add, change, or delete appropriations. Donations less than $5,000 per donor within a fiscal year shall be appropriated by the City Manager in accordance with the wishes of the donor.

Attachment A - Resolution No. 11565 FY25 Budget562
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 A - Resolution No. 11565 FY25 Budget563
Available
Fund Balance Fund Balance
Fund No Funds 7/1/2024 Revenues Transfers In Expenditures Transfers Out 6/30/2025 General Funds Expenses
100 General Fund 3,712,487 145,207,541 3,000,000 156,200,731 - (6,268,024) 110 Building Records and Planning Doc. 1,108,416 432,700 - 628,898 - 912,217 Total General Funds 4,820,902 145,640,241 3,000,000 156,829,630 - (5,355,806) Special Revenue Funds
120 Proposition 172 612,590 1,334,600 - 1,553,570 - 393,620 125 EMT Program 272,502 3,328,500 - 3,776,054 - (175,053) 130 PEG Program 422,782 255,600 - 322,209 - 356,173
140 CASP 186,945 44,900 - 128,190 - 103,655
150 O.C.P.T. 141,500 17,800 - 12,299 - 147,001
245 Air Pollution Reduction (AQMD) 241,314 183,900 - 87,778 - 337,436 263 Measure M2 3,169,395 4,539,215 - 4,261,467 - 3,447,143 270 Special Gas Tax Maint (66,217) 3,860,160 - 4,144,790 - (350,847) 274 RMRA 524,304 3,625,265 - 3,000,000 - 1,149,569
287 Citywide TSIP 2,093,312 57,100 - 1,940,000 - 210,412 291 Santiago LMD 1,346,616 904,651 - 984,780 - 1,266,488 293 Sycamore Cross LMD 121,022 49,777 - 51,107 - 119,692 294 Del Rio LMD 319,500 92,699 - 116,291 - 295,908
310 CDBG (7,650) 1,037,099 - 1,284,272 - (254,823)
312 SB2 74,726 - - - - 74,726
315 CDBG Deferred Loan/Housing 413,124 7,100 - - - 420,224 316 Federal Rental Rehab 150,468 2,500 - - - 152,968
317 HOME Grant (1,803,237) 359,972 - 274,413 - (1,717,678) 320 CA Parklands 127,523 2,100 - - - 129,623
350 Traffic Safety Grant 844,334 180,500 - 82,400 - 942,434 353 Federal Police Grants (6,600) 12,884 - - - 6,284
354 AB3229-COPS/State 803,626 383,900 - 257,727 - 929,799 355-360 Asset Seizure 3,594,111 129,800 - 552,580 - 3,171,331 916 Affordable Housing (285,020) 17,993 - 21,029 - (288,056) 921 Low/Moderate Income Hsng Asset (2,558,281) 101,937 - 198,055 - (2,654,399) Total Special Revenue Funds 10,732,689 20,529,952 - 23,049,009 - 8,213,631 Capital Project Funds
500 Capital Projects 8,307,340 4,000,000 - 3,572,730 3,000,000 5,734,610 510 Park Acquisition 4,322,257 119,200 - 445,000 - 3,996,457 511 Park Acq (Quimby) 2,751 5,900 - - - 8,651
512 El Modena Park Facilities 567,722 104,652 - - - 672,374 530 Drainage District 4,090 100 - - - 4,190
540 Old Town Parking 34,585 5,050 - 12,049 - 27,586
550 Reimbursable Capital (6,693,046) 4,738,334 - 4,249,570 - (6,204,282) 551 County Park Grants (953) - - 27,426 - (28,378)
553 Capital Bond Proceeds 3,224,387 - - 2,000,000 - 1,224,387 555 Parking In Lieu 61,790 2,200 - 129,000 - (65,010)
560 Fire Facilities Fees 231,039 17,400 - 140,000 - 108,439 570 Police Facilities Fees 730,144 11,100 - 20,000 - 721,244 573 Library Facilities Fees 338,863 11,400 - - - 350,263 951 City Trf: Tustin Project Taxable 1,230,357 20,300 - - - 1,250,657 952 City Trf: NW & SW 2003 Taxable 1,274,960 26,600 - - - 1,301,560 953 City Trf: NW& SW 2003 Exempt 705,722 11,700 - - - 717,422 954 City Trf: Merged 2008 Exempt 1,180,202 48,800 - 1,096,000 - 133,002 Total Capital Project Funds 15,522,209 9,122,736 - 11,691,775 3,000,000 9,953,170 Internal Service Funds
710 Equipment Maint 1,271,144 4,111,107 - 4,060,197 - 1,322,054 720 Equipment Replacement 1,400,657 1,154,212 - 2,208,000 - 346,869 730 Worker's Compensation 808,699 4,707,883 - 5,418,958 - 97,624 FY 25 Budget
Proposed Budget Proposed Budget

SCHEDULE OF CHANGES IN FUND BALANCE
Attachment A - Schedule of Changes in Fund Balance 1 564 Available
Fund Balance Fund Balance
Fund No Funds 7/1/2024 Revenues Transfers In Expenditures Transfers Out 6/30/2025 Proposed Budget Proposed Budget
740 Liability 3,859,593 4,510,690 - 5,854,674 - 2,515,609 752 Dental 569,455 448,728 - 428,465 - 589,718
760 Emp Accrued Liability 7,036,394 1,759,986 - 4,883,158 - 3,913,222 780 Info Tech Maintenance 648,076 4,510,292 - 4,579,371 - 578,998 790 Computer Replacement 6,847,766 3,456,300 - 1,562,500 - 8,741,566 Total Internal Service Funds 22,441,785 24,659,198 - 28,995,322 - 18,105,661 Total Govenmental Funds 53,517,585 199,952,127 3,000,000 220,565,736 3,000,000 30,916,656 Enterprise Funds
220 Sanitation (Sewer) Fund 7,981,337 9,375,299 - 9,076,812 - 8,279,825 600 Water Fund 7,875,656 42,642,930 - 47,331,086 - 3,187,500 Total Enterprise Funds 15,856,993 52,018,229 - 56,407,897 - 11,467,325 TOTAL OF ALL CITY'S FUNDS 69,374,578 251,970,356 3,000,000 276,973,633 3,000,000 42,383,981 RDA/SAORA Funds
920 RDA - Obligation Retirement (2,879,131) 2,426,100 - 2,355,869 - (2,808,900) 940 RDA - Merged Cap Projects 4,031,846 63,256 - 79,763 - 4,015,339 987 Merged Debt Svc (1,541,145) 2,425,562 - 2,286,635 - (1,402,218) Total RDA/SAORA Funds (388,430) 4,914,918 - 4,722,267 - (195,779) GRAND TOTAL OF ALL FUNDS 68,986,149 256,885,274 3,000,000 281,695,900 3,000,000 42,188,202 Attachment A - Schedule of Changes in Fund Balance 2 565 FY 25 Budget

HISTORICAL SCHEDULE OF REVENUE SOURCES

BY FUND TYPE AND CATEGORY
Actual Actual Estimate Budget
2021-22 2022-23 2023-24 2024-25

GENERAL FUND
Taxes 97,607,359 92,107,766 93,104,365 95,514,188
Franchises 2,677,392 2,622,044 3,114,092 3,220,194
Licenses & Permits 6,508,045 6,983,399 6,984,509 7,089,937 Fines & Forfeitures 1,942,715 2,008,770 2,024,500 3,040,600 Use of Money & Property (1,630,749) 2,344,767 5,369,421 3,075,251 Revenue from Other Agencies 17,476,211 18,081,165 20,216,619 19,040,832 Fees for Services 5,253,482 6,491,550 6,144,650 6,053,273 Miscellaneous Revenues 4,206,179 2,779,559 1,406,726 1,123,065 Interfund Revenue 7,613,978 5,526,228 9,264,680 10,050,201 Total General Fund 141,654,613 138,945,246 147,629,562 148,207,541

SPECIAL REVENUE FUNDS
Taxes 9,831,462 9,676,359 6,511,136 6,577,327
Franchises 194,219 526,528 251,900 251,800
Licenses & Permits 69,857 66,719 40,000 40,000
Use of Money & Property (605,704) 1,449,841 268,667 574,328 Revenue from Other Agencies 23,763,409 9,865,536 9,247,097 9,685,197 Fees for Services 3,710,036 4,229,386 2,892,485 3,570,000 Miscellaneous Revenues 162,197 1,906,425 144,000 264,000 Interfund Revenue 15,034,067 (2,600,000) - -
Total Special Revenue Funds 52,159,545 25,120,795 19,355,285 20,962,652

CAPITAL PROJECTS FUNDS
Licenses & Permits 1,383,732 (567,670) 4,350 4,350
Use of Money & Property (513,172) 776,932 164,227 374,852 Revenue from Other Agencies 1,971,833 844,700 149,965 4,738,334 Fees for Services 792,466 1,829,473 3,483,130 4,005,200 Miscellaneous Revenues 1,039,228 145,266 - -
Interfund Revenue 7,000,000 7,000,000 - -
Total Capital Projects Funds 11,674,088 10,028,702 3,801,672 9,122,736 1 566
FY 25 Budget

HISTORICAL SCHEDULE OF REVENUE SOURCES

BY FUND TYPE AND CATEGORY
Actual Actual Estimate Budget
2021-22 2022-23 2023-24 2024-25

ENTERPRISE FUNDS
Licenses & Permits 1,496 1,661 800 1,800
Fines & Forfeitures 20,764 63,734 15,000 15,000
Use of Money & Property (939,984) 278,290 165,096 584,400 Revenue from Other Agencies 29,766 86,674 - 51,900
Fees for Services 48,069,655 46,662,421 52,158,024 51,171,275 Miscellaneous Revenues 566,288 471,448 194,454 193,854
Total Enterprise Funds 47,747,984 47,564,229 52,533,374 52,018,229

INTERNAL SERVICE FUNDS
Miscellaneous Revenues 2,172,177 739,370 19,841 51,000
Interfund Revenue 24,024,056 33,139,986 1,008,093 24,608,198 Total Internal Service Funds 26,196,233 33,879,356 1,027,934 24,659,198

REDEVELOPMENT (SUCCESSOR) FUNDS
Use of Money & Property (163,597) 90,570 46,006 124,663 Revenue from Other Agencies 5,519,933 5,664,058 2,426,100 2,426,100 Interfund Revenue 5,648,331 5,661,565 - 2,364,155
Total Redevelopment (Successor)
Funds 11,004,667 11,416,193 2,472,106 4,914,918
GRAND TOTAL 290,437,130 266,954,521 226,819,933 259,885,274 2 567
FY 25 Budget

HISTORICAL SCHEDULE OF EXPENDITURES

BY FUND TYPE AND CATEGORY
Actual Actual Estimate Budget
2021-22 2022-23 2023-24 2024-25

GENERAL FUND
Salaries and Benefits 75,784,026 93,878,356 99,743,786 106,776,309 Contractual Services 12,837,195 14,623,181 16,026,322 14,733,290 Miscellaneous Expenditures 309,409 3,122,854 346,187 642,200 Materials and Supplies 2,222,123 2,590,240 2,280,339 2,468,201 Debt Service 1,961,828 1,908,256 1,713,000 1,714,700
Capital Outlay 322,730 501,255 484,288 28,800
Internal Service Costs 20,144,816 21,566,017 23,636,031 29,837,231 Total General Fund 113,582,127 138,190,160 144,229,953 156,200,731

SPECIAL REVENUE FUNDS
Salaries and Benefits 18,334,453 4,924,372 5,782,786 5,300,236 Contractual Services 2,104,939 3,609,943 3,619,641 3,280,160 Miscellaneous Expenditures 12,637,036 3,065,521 - 200,000 Materials and Supplies 649,517 856,249 1,275,759 1,829,807 Debt Service 5,533,855 3,556,103 1,996,246 -
Capital Outlay 311,869 756,721 288,675 171,400
Capital Improvements 7,427,111 7,745,271 18,959,005 9,166,398 Internal Service Costs 2,295,170 3,283,454 3,227,057 3,729,906 Total Special Revenue Funds 49,293,950 27,797,633 35,149,169 23,677,907

CITY DEBT SERVICE FUND
City Debt Service 15,758,295 16,755,374 3,297,902 -
Total City Debt Service Fund 15,758,295 16,755,374 3,297,902 -

CAPITAL PROJECTS FUNDS
Salaries and Benefits 237,121 196,179 124,046 -
Contractual Services 194,153 142,537 416,320 32,049
Miscellaneous Expenditures 281,154 279,063 300,000 300,000 Materials and Supplies - - - -
Debt Service - - - -
Capital Outlay 1,697,064 222,463 289,256 -
Capital Improvements 21,527,555 10,200,872 19,945,879 11,359,726 Transfers Out - - - 3,000,000
Total Capital Projects Funds 23,937,047 11,041,115 21,075,501 14,691,775 568
FY 25 Budget

HISTORICAL SCHEDULE OF EXPENDITURES

BY FUND TYPE AND CATEGORY
Actual Actual Estimate Budget
2021-22 2022-23 2023-24 2024-25

ENTERPRISE FUNDS
Salaries and Benefits 7,889,125 7,790,994 8,680,383 9,371,822 Contractual Services 4,512,072 5,320,134 6,396,320 7,081,794 Miscellaneous Expenditures (530) (624) 117,126 120,000
Materials and Supplies 22,699,265 17,094,813 11,627,204 22,529,920 Debt Service 4,544,262 9,102,003 1,301,559 1,301,891
Capital Outlay (4,195,181) (608,504) 1,267,833 1,188,000 Capital Improvements 5,550,502 2,528,954 17,566,442 8,767,750 Internal Service Costs 2,489,027 3,727,425 3,841,386 6,046,720 Total Enterprise Funds 43,488,543 44,955,195 50,798,254 56,407,897

INTERNAL SERVICE FUNDS
Salaries and Benefits 4,414,149 6,162,219 792,120 8,650,058 Contractual Services 1,404,829 1,461,525 1,811,390 2,167,069 Miscellaneous Expenditures 4,800,840 6,655,307 3,392,719 9,342,926 Materials and Supplies 2,497,345 3,168,744 1,332,350 3,528,027 Debt Service 1,931,297 1,552,646 2,011,573 260,381
Capital Outlay 15,252 (18,407) 5,068,999 2,258,339
Capital Improvements 789,244 1,457,783 3,535,466 1,472,500 Internal Service Costs 762,597 720,812 900,639 1,316,022 Total Internal Service Funds 16,615,553 21,160,629 18,845,255 28,995,322

REDEVELOPMENT (SUCCESSOR) FUNDS
Salaries and Benefits - - - 38,100
Contractual Services 6,945 16,380 15,750 19,000
Miscellaneous Expenditures (29,791) (20,912) 5,550 8,000 Materials and Supplies - - - -
Debt Service and Pass Through Agreements 966,029 751,629 5,519,988 4,642,504 Capital Outlay - - - -
Capital Improvements - - - -
Internal Service Costs 31,701 16,409 7,710 6,377
Total Redevelopment Funds 974,884 763,506 5,548,998 4,713,981 GRAND TOTAL 263,650,398 260,663,612 278,945,032 284,687,614 569
Budget
Project Project Name Fund 2024-25
11210 Home CHDO Allocation 317 53,108
11250 Home Developer Projects 317 265,540
11328 ADA Improvements 287 200,000
310 100,000
12406 Signal Pre-Emption Installation 560 55,000
12955 Mobile Data Computers 560 150,000
12982 Corp Yard Renovations 220 150,000
12982 Corp Yard Renovations 270 150,000
13115 Pavement Management Program Survey 263 70,000
287 70,000
13120 Pavement Management Program 263 2,700,000
270 250,000
274 3,400,000
500 1,250,000
13816 Structural Evaluation of City Bridges 550 2,000,000 15508 Sewer Line Maintenance & Replacement 220 2,438,783 15509 Sewer Cleaning & Video 220 500,000
16065 Quiet Zone/Rr Xing Safety 954 50,000
16302 Minor Traffic Control Devices 263 50,000
500 200,000
16304 Biennial Traffic Signal Coordination 263 95,000
16305 Traffic Signal Controller Changeout 270 100,000
16469 Traffic Signal Equipment Painting 263 45,000

CAPITAL IMPROVEMENT PROJECTS
1Attachment A - FY25 Capital Improvement Projects570
18101 Water Utility Security Improvements 600 25,000
18102 Meter Replacement Program 600 200,000
18120 Well 28 Construction 600 85,000
18214 Well Rehabilitation 600 150,000
18301 Exterior Cathodic Protection Systems 600 50,000
18400 Pipeline Renewal Projects 600 1,800,000
18912 Water Plant Telemetry 600 35,000
19809 City Facility Improvements 500 450,000
19826 Police HQ Exterior Wall Sealing 954 20,000
20124 Turnout Replc/1851 Cleaning 560 105,000
20171 EPCR Replacement Program 790 65,000
20278 Server Refreshes / memory expansion 790 100,000
20282 Personal Computer Replacements 790 200,000
20312 Well 29 Construction 600 2,000,000
20325 Santiago Bike Trail Phase IV 500 500,000
20334 Fire Station Maint & Renov 560 50,000
20335 Mobile Data Computers 355 110,000
20339 Network Refresh 790 50,000
20342 Conference Room Audio/Video 790 10,000
20353 Chapman & Grand Left Turn Signal Modification 287 75,000 20354 Chapman & Cambridge Left Turn Signal Modification 287 75,000 20374 Streetlight Pole Replacement Program 263 30,000
500 470,000
20379 Batavia & Taft Signal Network Extension 287 170,000 2Attachment A - FY25 Capital Improvement Projects571
20380 Glassell St Signal Network Extension 287 100,000
20384 Vehicle Extrication Tool 560 85,000
20393 Defibrillator, AED and Battery Replacement 560 250,000 20413 UPS Replacements 790 100,000
20430 Storm Drain Improvements 220 500,000
20437 Park Signage Installation 510 90,000
20456 Physical Security Platform Replacements 790 200,000 20483 Police Facility Improvements 354 500,000
570 45,000
954 100,000
20506 Ball Field Netting 510 200,000
20510 Storage Area Network Replacement 790 125,000
20513 New Park in West Orange 954 3,000,000
20516 Video Production and Broadcast Refresh 130 67,500 790 67,500
20528 Rolling File Cabinet Replacement 500 50,000
20538 Reservoir 7 Hydropneumatics Tank Replacement 600 1,400,000 20544 Serrano Lodge Pole Fencing 510 39,000
30019 Santiago Canyon Road Multipurpose Trail 550 75,000 30032 Wellness Equipment Replacement 560 45,000
30071 Fiber Optic Cable Replacements 790 100,000
30115 Glassell & Palmyra Signal Installation 287 250,000 30168 Walnut Ave Infrastructure Improvement 600 1,400,000 30174 Cannon Street Widening 287 300,000
30196 Police Enterprise System 790 635,000
3Attachment A - FY25 Capital Improvement Projects572
30243 Pixley & Walnut St. Rehab 310 638,000
30244 Riverdale Ave Complete St Improvements 263 426,000 550 2,574,000
30247 Citywide Active Transportation Plan 287 308,000
550 42,000
4Attachment A - FY25 Capital Improvement Projects573
FY 25 Budget
Project Project Name Fund 2024-25 2025-26 2026-27 2027-28 2028-29 11210 Home CHDO Allocation 317 64,835 - - - -
11250 Home Developer Projects 317 174,173 - - - -
11328 ADA Improvements 287 200,000 - - - -
310 90,000 - - - -
12406 Signal Pre-Emption Installation 560 - 55,000 40,000 40,000 40,000 12506 Body Armor 120 - - - 60,000 -
12540 Thermal Image Cameras 560 - - 250,000 - -
12955 Mobile Data Computers 560 - 119,000 - - 119,000
790 - 119,000 - - 119,000
12982 Corp Yard Renovations 270 - 150,000 150,000 - -
500 - 1,000,000 1,000,000 - -
553 1,000,000 - - - -
13115 Pavement Management Program Survey 263 - 70,000 - 70,000 - 13120 Pavement Management Program 263 2,700,000 2,700,000 3,000,000 3,000,000 3,100,000 270 - 250,000 200,000 150,000 100,000
274 3,000,000 3,400,000 3,500,000 3,600,000 3,700,000
500 600,000 1,200,000 1,200,000 1,300,000 1,300,000
13816 Structural Evaluation of City Bridges 550 - 2,000,000 - - - 14997 Municipal Parking Lot Maintenance 500 - 20,000 20,000 20,000 20,000 555 20,000 - - - -
15508 Sewer Line Maintenance & Replacement 520 2,367,750 2,438,783 2,511,946 2,587,304 2,664,923 15509 Sewer Cleaning & Video 220 400,000 500,000 500,000 500,000 500,000 16065 Quiet Zone/Rr Xing Safety 954 50,000 50,000 50,000 50,000 50,000 16302 Minor Traffic Control Devices 263 50,000 50,000 50,000 50,000 50,000 500 150,000 200,000 200,000 200,000 200,000
16304 Biennial Traffic Signal Coordination 263 - 95,000 - 95,000 - 16305 Traffic Signal Controller Changeout 270 100,000 100,000 100,000 100,000 100,000 16469 Traffic Signal Equipment Painting 263 45,000 45,000 45,000 45,000 45,000 18101 Water Utility Security Improvements 600 25,000 25,000 25,000 25,000 25,000 18102 Meter Replacement Program 600 175,000 175,000 175,000 175,000 175,000 Five-Year Capital Improvement Program
1 Attachment A - Five-Year Capital Improvement Plan574
18120 Well 28 Construction 550 2,000,000 - - - -
600 2,000,000 - - - -
18214 Well Rehabilitation 600 150,000 150,000 150,000 150,000 150,000 18225 Lower Serrano Pump Station 600 - - - 1,800,000 1,600,000 18301 Exterior Cathodic Protection Systems 600 50,000 50,000 50,000 50,000 50,000 18302 Reservoir Recoating 600 - 50,000 750,000 - -
18315 Reservoir 3A Construction 600 - - - 500,000 2,000,000 18324 Resevoir 2A Site Remediation 600 - - - 1,000,000 - 18400 Pipeline Renewal Projects 600 1,500,000 1,700,000 2,000,000 2,000,000 2,000,000 18912 Water Plant Telemetry 600 50,000 50,000 50,000 50,000 50,000 18925 Emergency Generator 600 250,000 - - 250,000 -
19809 City Facility Improvements 500 250,000 - - - -
954 156,000 - - - -
19826 Police HQ Exterior Wall Sealing 954 40,000 20,000 20,000 20,000 20,000 20059 Tot Lot Shade Sails 510 - 223,000 223,000 - -
20105 Automatic Chest Compression Device 120 - - - 175,000 - 20124 Turnout Replc/1851 Cleaning 560 90,000 95,000 95,000 100,000 100,000 20166 EMS Gurney Replacement 120 - - 60,000 - -
20169 WMD-DuoDote Autoinjector Replacement 120 - - 50,000 - - 20171 EPCR Replacement Program 790 - 65,000 20,000 20,000 20,000 20272 GIS Enterprise Development 790 60,000 60,000 60,000 60,000 60,000 20278 Server Refreshes / memory expansion 790 - 50,000 50,000 50,000 50,000 20279 Sharepoint 790 - 10,000 10,000 10,000 10,000
20281 IT System Improvements 790 - 75,000 75,000 75,000 75,000 20282 Personal Computer Replacements 790 - 400,000 200,000 200,000 200,000 20284 Document Management Improvements 790 - 20,000 20,000 20,000 20,000 20312 Well 29 Construction 550 2,000,000 - - - -
600 1,200,000 3,500,000 2,700,000 - -
20334 Fire Station Maint & Renov 560 50,000 50,000 50,000 50,000 50,000 20335 Mobile Data Computers 355 110,000 - - - -
20338 Strategic Plan Update 790 30,000 - - - 60,000
20339 Network Refresh 790 50,000 50,000 50,000 50,000 50,000 20342 Conference Room Audio/Video 790 - 20,000 20,000 20,000 20,000 20374 Streetlight Pole Replacement Program 263 30,000 30,000 30,000 30,000 30,000 500 470,000 470,000 470,000 470,000 470,000
20378 Katella & Batavia Signal Network Extension 287 - 150,000 - - - 20379 Batavia & Taft Signal Network Extension 287 620,000 - - - - 20380 Glassell St Signal Network Extension 287 1,020,000 - - - - 20384 Vehicle Extrication Tool 560 - 75,000 - - -
2 Attachment A - Five-Year Capital Improvement Plan575
20388 Civic Center Fiber Improvements 790 - 20,000 20,000 20,000 20,000 20391 Financial System Replacement 790 300,000 200,000 200,000 200,000 200,000 20393 Defibrillator, AED and Battery Replacement 560 - 250,000 500,000 250,000 - 20397 Parker Street Restriping 550 - - - - 100,000
20413 UPS Replacements 790 80,000 65,000 45,000 45,000 45,000 20429 South Yard Storage Replacement 600 200,000 - - - - 20430 Storm Drain Improvements 220 400,000 500,000 500,000 500,000 500,000 20437 Park Signage Installation 510 60,000 90,000 - - - 20438 El Camino Real Park Exercise Equipment 510 - 692,450 - - - 20456 Physical Security Platform Replacements 553 1,000,000 - - - - 790 - 200,000 200,000 200,000 200,000
20476 El Modena Basin Area Improvements 510 - 200,000 - - - 20478 Evaluation of Synthetic Turf Installation at Grijalva Park 510 - 165,000 - - - 20483 Police Facility Improvements 954 100,000 100,000 - - - 20496 Reservoir 4A Construction 600 - - - - 200,000
20502 Fire Station Apparatus Bay Door 120 - - 220,000 - - 20504 Fire Station 3 Shop and Apparatus Storage Building 560 - - 2,826,250 - - 20505 Fire Station 5 Work Out Room Addition 500 - 330,000 - - - 20510 Storage Area Network Replacement 790 150,000 150,000 100,000 100,000 100,000 20513 New Park in West Orange 510 225,000 - - - -
20516 Video Production and Broadcast Refresh 130 67,500 67,500 67,500 67,500 67,500 790 67,500 67,500 67,500 67,500 67,500
20518 Pedestrian Beacon Upgrades 500 27,730 - - - -
550 249,570 - - - -
20519 Skate Park at Grijalva 500 1,750,000 - - - -
551 27,426 - - - -
20520 Cerro Villa Open Space Improvements 510 35,000 - - - - 20521 Yorba Dog Park Improvements 510 125,000 - - - -
20522 Old Towne Parking Management System 555 109,000 - - - - 20523 Fire Station 2 Remodel 560 - 855,000 6,916,800 - - 20525 Santiago Canyon Road Signal Network Extension 287 - - - - 250,000 20527 Bicycle Master Plan Update 287 100,000 - - - -
20528 Rolling File Cabinet Replacement 500 25,000 25,000 25,000 - - 30019 Santiago Canyon Road Multipurpose Trail 550 - 75,000 750,000 - - 30032 Wellness Equipment Replacement 560 - 45,000 - 45,000 - 30071 Fiber Optic Cable Replacements 790 100,000 100,000 100,000 100,000 100,000 30150 Local Roadway Safety Plan 263 - - - - 50,000
30165 Grand St Parking Lot Improvement 954 750,000 - - - - 30196 Police Enterprise System 790 635,000 635,000 1,175,000 750,000 750,000 3 Attachment A - Five-Year Capital Improvement Plan576
30220 Neighborhood Street Rehabilitation 310 282,390 - - - - 30221 El Modena and Taft Libraries Parking Lot 310 212,500 - - - - 30226 El Modena Basin Public Restroom Improvement 310 300,000 - - - - 4 Attachment A - Five-Year Capital Improvement Plan577
RESOLUTION NO. 11564

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE ADOPTING THE

APPROPRIATIONS LIMIT FOR THE FISCAL
YEAR 2024-25
WHEREAS, the voters of California on November 6, 1979, added Article XIIIB to the State Constitution placing various limitations on the appropriations of the state and local governments; and WHEREAS, Article XIIIB was amended by Proposition 111 and SB88 to provide for the calculation of the appropriations limit for Fiscal Years beginning with 1990-91 using, at the City's election, the City's own population growth or the population growth of the County, and the growth in California per capita income or the growth in non-residential assessed valuation due to new construction; and
WHEREAS, data necessary to calculate the growth in the non-residential assessed value was not available from the County Assessor and the City may need to adjust the limit on appropriations once the data is available; and
WHEREAS, the information and the elections made as set forth above are necessary for making these adjustments and are attached as Exhibit "A"; and
WHEREAS, the City of Orange, to the best of its knowledge, has complied with all the provisions of Article XIIIB in determining the appropriation limit for Fiscal Year 2024-25.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the Appropriations Limit in Fiscal Year 2024-25 shall be $236,389,920 and the City’s appropriations subject to limitation are $127,216,074.

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

Pamela Coleman, City Clerk, City of Orange
Attachment B - Resolution No. 11564 GANN Limit578
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 B - Resolution No. 11564 GANN Limit579
EXHIBIT "A"
2024-25 APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB
2024-25 APPROPRIATION LIMIT IS CALCULATED AS FOLLOWS:
19-20 20-21 21-22 22-23 23-24 24-25
POPULATION GROWTH 1.0041 0.9975 0.9847 1.0010 1.0066 0.9984 CHANGE IN PER CAPITA INCOME 1.0385 1.0373 1.0573 1.0755 1.0444 1.0362 TOTAL ADJUSTMENT 1.0428 1.0347 1.0411 1.0766 1.0513 1.0345 LAST YEAR'S LIMIT 178,885,376 186,534,130 193,008,124 200,945,256 216,332,740 227,430,610 CURRENT YEAR'S LIMIT 186,534,130 193,008,124 200,945,256 216,332,740 227,430,610 235,276,966 OTHER ADJUSTMENTS:

ASSUMED RESPONSIBILITY:

BOOKING FEES

PROP TAX ADMIN CHG
ADJ. CURRENT YR. LIMIT 186,534,130 193,008,124 200,945,256 216,332,740 227,430,610 235,276,966 The following information was provided by the State Department of Finance in order to calculate the Appropriation Limit for 2024-25:

Greater of
City County City County Population
Fiscal Year Date Population Population Growth Growth Changes 19-20* 01-01-18 141,116 3,212,533
01-01-19 141,691 3,221,790 0.41% 0.29% 0.41%
20-21 01-01-19 140,410 3,192,279
01-01-20 140,065 3,193,693 -0.25% 0.04% 0.04%
21-22 01-01-20 139,504 3,180,440
01-01-21 137,366 3,153,718 -1.53% -0.84% -0.84%
22-23 01-01-21 137,534 3,168,941
01-01-22 137,676 3,161,604 0.10% -0.23% 0.10%
23-24 01-01-22 138,155 3,151,305
01-01-23 139,063 3,136,922 0.66% -0.46% 0.66%
24-25 01-01-23 138,842 3,140,716
01-01-24 138,621 3,150,493 -0.16% 0.31% 0.31%
*Restated
580
EXHIBIT "A"
2024-25 APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB (Continued) Percentage Changes in Per Capita Personal Income:
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

3.67% 3.85% 3.73% 5.73% 7.55% 4.44%
Per Capita Income Converted to a Ratio:
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

1.0367 1.0385 1.0373 1.0573 1.0755 1.0444
581
RESOLUTION NO. 11566

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE TO APPROVE AND

AUTHORIZE STAFF TO SUBMIT TO THE

ORANGE COUNTY TRANSPORTATION
AUTHORITY THE MEASURE M2 SEVENYEAR CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2024-25 THROUGH 2030-
31 TO COMPLY WITH MEASURE M2
ELIGIBILITY CRITERIA.

WHEREAS, an annual submittal of Measure M2 eligibility documentation to the Orange County Transportation Authority (OCTA) is required to remain eligible to receive Measure M2 sales tax revenue funds; and
WHEREAS, the submittal documentation requires the City Council approval of an updated Measure M2 Seven-Year Capital Improvement Program; and
WHEREAS, the City’s Measure M2 Seven-Year Capital Improvement Program for fiscal year 2024-25 through 2030-31 is a transportation planning and fiscal forecasting document used to guide future programming for transportation capital improvement projects; and WHEREAS, the Measure M2 Seven-Year Capital Improvement Program emphasizes projects that improve circulation, mitigate traffic congestion, and maintain the City’s investment in existing transportation infrastructure; and
WHEREAS, the Measure M2 Seven-Year Capital Improvement Program is consistent with the proposed citywide Capital Improvement Program budget and the City’s General Plan; and WHEREAS, the City’s M2 Seven-Year Capital Improvement Program includes 23 projects with a total preliminary projected budget requirement of $63,847,968 million over the seven-year period; and
WHEREAS, the Measure M2 Seven-Year Capital Improvement Program projects are attached as Exhibit "A".

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby approves and authorizes staff to submit to OCTA the Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2024-25 through 2030-31 to comply with Measure M2 eligibility criteria.

Attachment C - Resolution No. 11566 M2582
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 C - Resolution No. 11566 M2583
Orange County Transportation Authority
FY 2024/25 - FY 2030/31 Capital Improvement Program
TIP ID CP-10975 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 11328 Project Title
Additional Project IDs: ADA Improvements - Access Ramps Type of Work: Pedestrian Project Description
Type of Work Description: Pedestrian -
Installation of ADA access ramps
This project will modify curbs at various locations throughout the City to Comply with American with Disability Act (ADA) regulations. This has been an ongoing project, funded with Community Development Block Grants (CDBG).

Limits
Citywide
Project Notes
TSIP Citywide (287), CDBG (310) and Capital
Project Fund(500).

FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025 Traffic Impact Fees $0 $0 $200,000 $0 $200,000 $206,000 2025
Community Development
Block Grant
$0 $0 $100,000 $0 $100,000 $103,000
2026 Traffic Impact Fees $0 $0 $200,000 $0 $200,000 $212,180 2026
Community Development
Block Grant
$0 $0 $0 $0 $0 $0
2027
Community Development
Block Grant
$0 $0 $0 $0 $0 $0
2027 Traffic Impact Fees $0 $0 $0 $0 $0 $0
2028 Traffic Impact Fees $0 $0 $0 $0 $0 $0
2028
Community Development
Block Grant
$0 $0 $0 $0 $0 $0
2029 Traffic Impact Fees $0 $0 $0 $0 $0 $0
2029
Community Development
Block Grant
$0 $0 $0 $0 $0 $0
Totals: $0 $0 $500,000 $0 $500,000 $521,180
Last Revised: 24-00 - Submitted Total Programmed: $500,000 TIP ID CP-10976 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20379 Project Title
Additional Project IDs: Batavia and Taft Signal Network Extension Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals -
Interconnect traffic signals to improve coordination
and communications
The project will extend the existing City's Traffic Signal Network along Taft Avenue from Shaffer Street to Main Street and on Batavia Street from Taft Avenue to Fletcher Avenue.

Limits
Taft Avenue from Shaffer ST to Main St and on
Batavia St from Taft Ave to Flectcher Ave
Project Notes
TSIP Citywide (287).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $170,000 $0 $170,000 $175,100 Totals: $0 $0 $170,000 $0 $170,000 $175,100
Last Revised: 24-00 - Submitted Total Programmed: $170,000 TIP ID CP-12183 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20527 Project Title
Additional Project IDs: Bicycle Master Plan Update
Type of Work: Bikeways Project Description
Type of Work Description: Bikeways - Planning
This update will include a comprehensive examination of the city’s existing and future bikeway facilities that were previously identified while exploring new possibilities.

Limits
City Wide
Project Notes
TSIP City wide (287)

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $100,000 $0 $100,000 $103,000 Totals: $0 $0 $100,000 $0 $100,000 $103,000
Last Revised: 24-00 - Submitted Total Programmed: $100,000 Attachment C - Resolution No. 11566 M2584
TIP ID CP-10977 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 16304 Project Title
Additional Project IDs: Biennial Traffic Signal Coordination Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals -
Coordinate signals within project limits
This project will study traffic signals on the City’s major streets, count & analyze traffic flows, & provide appropriate traffic signal timing to minimize delay to drivers. Changes in traffic flows require updating at two year intervals.

Limits
City-Wide
Project Notes
Measure "M2"
FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025
Measure M2 Local
Fairshare
$0 $0 $95,000 $0 $95,000 $97,850
2027
Measure M2 Local
Fairshare
$0 $0 $95,000 $0 $95,000 $103,809
2029
Measure M2 Local
Fairshare
$0 $0 $95,000 $0 $95,000 $110,131
Totals: $0 $0 $285,000 $0 $285,000 $311,790
Last Revised: 24-00 - Submitted Total Programmed: $285,000 TIP ID CP-11795 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 21-ORNG-ACE-3994 Project Title
Additional Project IDs: Cannon Street Bridge Widening
Type of Work: Road Widening Project Description
Type of Work Description: Road Widening - Add
1 lane to existing roadway in project limits
This project will widen portions of Cannon Street from Santiago Canyon Road to Serrano Avenue to add a third northbound thru lane.

Limits
Cannon Street from Santiago Canyon Road to
Serrano Avenue
Project Notes
TSIP Citywide (287) & Reimbursable Capital
Project (550).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $300,000 $0 $300,000 $309,000 Totals: $0 $0 $300,000 $0 $300,000 $309,000
Last Revised: 24-00 - Submitted Total Programmed: $300,000 TIP ID CP-10983 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20354 Project Title
Additional Project IDs: Chapman & Cambridge Left Turn Signal Modification Type of Work: Intersection Project Description
Type of Work Description: Intersection -
Upgrade traffic signal equipment at intersection
The project will provide for a protected left turn phase for the eastbound, westbound, northbound, and southbound approaches on Chapman Avenue at Cambridge Street.

Limits
Chapman Ave and Cambridge St Intersection
Project Notes
TSIP Citywide (287).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $75,000 $0 $75,000 $77,250 Totals: $0 $0 $75,000 $0 $75,000 $77,250
Last Revised: 24-00 - Submitted Total Programmed: $75,000 TIP ID CP-10984 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20353 Project Title
Additional Project IDs: Chapman and Grand Left Turn Signal Modification Type of Work: Intersection Project Description
Type of Work Description: Intersection - Add left
turn lane(s) to intersection
The project will provide for a protected left turn phase for the eastbound and westbound approaches on Chapman Avenue at Grand Street. The proposed signal modification will enhance the capacity and improve the traffic signal operation at the intersec
Limits
Chapman Ave and Grand St Intersection
Project Notes
TSIP Citywide (287).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $75,000 $0 $75,000 $77,250 Totals: $0 $0 $75,000 $0 $75,000 $77,250
Last Revised: 24-00 - Submitted Total Programmed: $75,000 Attachment C - Resolution No. 11566 M2585
TIP ID CP-10996 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20380 Project Title
Additional Project IDs: Glassell Street Signal Network Extension Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals -
Interconnect traffic signals to improve coordination
and communications
The project will extend the existing City's Traffic Signal Network along Taft Avenue from Shaffer Street to Glassell Street and on Glassell Street from Taft Avenue to Lincoln Avenue.

Limits
Taft Avenue from Shaffer St to Glassell St and on
Glassell St from Taft Ave to Lincoln Ave
Project Notes
TSIP Citywide (287).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $100,000 $0 $100,000 $103,000 Totals: $0 $0 $100,000 $0 $100,000 $103,000
Last Revised: 24-00 - Submitted Total Programmed: $100,000 TIP ID CP-10993 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 30115 Project Title
Additional Project IDs: Glassell and Palmyra Signal Install Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Install
new traffic signals and equipment
Project will provide for the installation of a traffic signal at the intersection of Glassell St and Palmyra Ave. Work includes installation of signal poles, associated equipment, and ADA ramps.

Limits
Glassell St at Palmyra Ave
Project Notes
Reimbursable Capital Projects (550).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Traffic Impact Fees $0 $0 $250,000 $0 $250,000 $257,500 Totals: $0 $0 $250,000 $0 $250,000 $257,500
Last Revised: 24-00 - Submitted Total Programmed: $250,000 TIP ID CP-12435 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 14997 Project Title
Additional Project IDs: MUNICIPAL PARKING LOT MAINTENANCE Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -
Slurry seal of roadway
This project rehabilitates municipal parking lots every seven years and any maintenance issues annually. Work consists of slurry sealing, crack filling, removing and replacing defective asphalt concrete paving, striping, asphalt concrete overlays, m Limits
City Wide
Project Notes
Fund Capital Projects (500)

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 General Fund $0 $0 $20,000 $0 $20,000 $21,218
2027 General Fund $0 $0 $20,000 $0 $20,000 $21,855
2028 General Fund $0 $0 $20,000 $0 $20,000 $22,510
2029 General Fund $0 $0 $20,000 $0 $20,000 $23,185
Totals: $0 $0 $80,000 $0 $80,000 $88,768
Last Revised: 24-00 - Submitted Total Programmed: $80,000 Attachment C - Resolution No. 11566 M2586
TIP ID CP-11029 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 16302 Project Title
Additional Project IDs: Minor Traffic Control Devices
Type of Work: Safety Project Description
Type of Work Description: Safety - Traffic
calming such as bulbout, chokers, speed hump, etc.

This project will provide minor traffic control devices such as signage, striping and other related traffic calming devices as directed by the Traffic Commission and City Traffic Engineer.

Limits
City-Wide
Project Notes
Traffic Improvements - Measure "M2" (263) &
Capital Projects (500).

FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025
Measure M2 Local
Fairshare
$5,000 $0 $45,000 $0 $50,000 $51,350
2025 General Fund $20,000 $0 $180,000 $0 $200,000 $205,400 2026
Measure M2 Local
Fairshare
$5,000 $0 $45,000 $0 $50,000 $52,740
2026 General Fund $20,000 $0 $180,000 $0 $200,000 $210,962 2027
Measure M2 Local
Fairshare
$5,000 $0 $45,000 $0 $50,000 $54,173
2027 General Fund $20,000 $0 $180,000 $0 $200,000 $216,691 2028
Measure M2 Local
Fairshare
$5,000 $0 $45,000 $0 $50,000 $55,648
2028 General Fund $20,000 $0 $180,000 $0 $200,000 $222,592 2029
Measure M2 Local
Fairshare
$5,000 $0 $45,000 $0 $50,000 $57,167
2029 General Fund $20,000 $0 $180,000 $0 $200,000 $228,669 Totals: $125,000 $0 $1,125,000 $0 $1,250,000 $1,355,392 Last Revised: 24-00 - Submitted Total Programmed: $1,250,000 TIP ID CP-12429 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 30243 Project Title
Additional Project IDs: PIXLEY NEIGHBORHOOD AND WALNUT STREET REHABILITATION Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -
Reconstruction of roadway
Rehabilitate Parker Street, Pixley Street, Foley Place, Clark Street, Marietta Avenue, Washington Avenue, and Walnut Avenue, which includes but is not limited to, asphalt concrete grinding and overlay.

Limits
Various
Project Notes
Fund CDBG (310)
FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025
Community Development
Block Grant
$0 $0 $638,000 $0 $638,000 $657,140
Totals: $0 $0 $638,000 $0 $638,000 $657,140
Last Revised: 24-00 - Submitted Total Programmed: $638,000 Attachment C - Resolution No. 11566 M2587
TIP ID CP-11048 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 13120 Project Title
Additional Project IDs: Pavement Management Program (PMP) Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -
Rehabilitation of roadway
The City’s PMP identifies the condition for 320 miles of streets and identifies maintenance needs of this roadway system requiring $6 million annually for slurry sealing, asphalt overlay and reconstructions.

Limits
City-Wide
Project Notes
Traffic Improvement Measure "M2" (263), Gas Tax
Maintenance (270), RMRA(274), Capital Projects
(500) and Reimbursable Capital Projects(550).

FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025 Gas Tax $25,000 $0 $225,000 $0 $250,000 $256,750
2025
Local Streets and
Roads
apportionments
$340,000 $0 $3,060,000 $0 $3,400,000 $3,491,800
2025
Measure M2 Local
Fairshare
$270,000 $0 $2,430,000 $0 $2,700,000 $2,772,900
2025 General Fund $170,000 $0 $1,080,000 $0 $1,250,000 $1,282,400 2026 Gas Tax $20,000 $0 $180,000 $0 $200,000 $210,962
2026 General Fund $120,000 $0 $1,880,000 $0 $2,000,000 $2,114,492 2026
Local Streets and
Roads
apportionments
$350,000 $0 $3,150,000 $0 $3,500,000 $3,691,835
2026
Measure M2 Local
Fairshare
$300,000 $0 $2,700,000 $0 $3,000,000 $3,164,430
2027
Local Streets and
Roads
apportionments
$360,000 $0 $3,240,000 $0 $3,600,000 $3,900,435
2027 General Fund $130,000 $0 $1,870,000 $0 $2,000,000 $2,173,399 2027 Gas Tax $15,000 $0 $135,000 $0 $150,000 $162,518
2027
Measure M2 Local
Fairshare
$300,000 $0 $2,700,000 $0 $3,000,000 $3,250,363
2028 General Fund $130,000 $0 $1,870,000 $0 $2,000,000 $2,234,701 2028 Gas Tax $10,000 $0 $90,000 $0 $100,000 $111,296
2028
Local Streets and
Roads
apportionments
$370,000 $0 $3,330,000 $0 $3,700,000 $4,117,944
2028
Measure M2 Local
Fairshare
$310,000 $0 $2,790,000 $0 $3,100,000 $3,450,170
2029
Local Streets and
Roads
apportionments
$300,000 $0 $3,300,000 $0 $3,600,000 $4,125,604
2029
Measure M2 Local
Fairshare
$310,000 $0 $2,690,000 $0 $3,000,000 $3,428,447
2029 Gas Tax $50,000 $0 $100,000 $0 $150,000 $165,927
2029 General Fund $130,000 $0 $1,870,000 $0 $2,000,000 $2,297,843 Totals: $4,010,000 $0 $38,690,000 $0 $42,700,000 $46,404,216 Last Revised: 24-00 - Submitted Total Programmed: $42,700,000 Attachment C - Resolution No. 11566 M2588
TIP ID CP-11049 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 13115 Project Title
Additional Project IDs: Pavement Management Program (PMP) Survey Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -
Studies or PMP updates
Windshield field surveys of the City's pavement are conducted every four years to determine pavement condition indexes for each segment. These surveys are conducted as a requirement for numerous grant programs, OCTA bi-annual reports, and overall PMP Limits
City-Wide
Project Notes
Traffic Improvement - Measure "M2" (263) & TSIP
Citywide (287).

FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025
Measure M2 Local
Fairshare
$70,000 $0 $0 $0 $70,000 $70,000
2025 Traffic Impact Fees $70,000 $0 $0 $0 $70,000 $70,000 2027
Measure M2 Local
Fairshare
$70,000 $0 $0 $0 $70,000 $70,000
2027 Traffic Impact Fees $70,000 $0 $0 $0 $70,000 $70,000 2029
Measure M2 Local
Fairshare
$70,000 $0 $0 $0 $70,000 $70,000
2029 Traffic Impact Fees $70,000 $0 $0 $0 $70,000 $70,000 Totals: $420,000 $0 $0 $0 $420,000 $420,000
Last Revised: 24-00 - Submitted Total Programmed: $420,000 TIP ID CP-11576 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 16065 Project Title
Additional Project IDs: Quiet Zone Maintenance
Type of Work: Safety Project Description
Type of Work Description: Safety - Other
This project will provide for the annual Quiet Zone and Safe Railroad Crossing maintenance agreement with Southern California Regional Rail Authority and any related maintenance or improvements necessary for compliance.

Limits
Citywide
Project Notes
City TRF: Merged 2008 Tax Exempt Bonds (954).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Other $0 $0 $0 $50,000 $50,000 $50,000
2026 Other $0 $0 $0 $50,000 $50,000 $50,000
2027 Other $0 $0 $0 $50,000 $50,000 $50,000
2028 Other $0 $0 $0 $50,000 $50,000 $50,000
2029 Other $0 $0 $0 $50,000 $50,000 $50,000
Totals: $0 $0 $0 $250,000 $250,000 $250,000
Last Revised: 24-00 - Submitted Total Programmed: $250,000 TIP ID CP-12427 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 30244 Project Title
Additional Project IDs: RIVERDALE AVENUE COMPLETE STREET IMPROVEMENTS Type of Work: Bikeways Project Description
Type of Work Description: Bikeways -
Reconstruction/rehabilitation of existing bike route
Reconfiguration of Riverdale Avenue from Glassell Street to Orange City limits that allows for the installation of bike and pedestrian facilities, traffic calming strategies and curb space management.

Limits
Glassell to Tustin
Project Notes
Fund Capital Projects Reimbursement (550)
FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025 Measure M2 Local
Fairshare
$426,000 $0 $0 $0 $426,000 $426,000
2025 General Fund $0 $0 $2,574,000 $0 $2,574,000 $2,651,220 Totals: $426,000 $0 $2,574,000 $0 $3,000,000 $3,077,220 Last Revised: 24-00 - Submitted Total Programmed: $3,000,000 Attachment C - Resolution No. 11566 M2589
TIP ID CP-11052 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20325 Project Title
Additional Project IDs: Santiago Bike Trail Phase IV
Type of Work: Bikeways Project Description
Type of Work Description: Bikeways - New bike
route
This project is the final phase of the Santiago Creek Bike Trail alignment in the Master Bikeway Plan.

Construction of the multi-purpose trail will connect the existing bike trail west of Cannon St.

Limits
Cannon to Windes
Project Notes
Capital Projects (500) & Reimbursable Capital
Projects (550).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 General Fund $0 $0 $500,000 $0 $500,000 $515,000
Totals: $0 $0 $500,000 $0 $500,000 $515,000
Last Revised: 24-00 - Submitted Total Programmed: $500,000 TIP ID CP-11051 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 30019 Project Title
Additional Project IDs: Santiago Canyon Road Multi-Purpose Trail Type of Work: Bikeways Project Description
Type of Work Description: Bikeways - Planning
Construction of a multipurpose trail adjacent to Santiago Canyon Rd connecting the ex. trail at the Reserve neighborhood to Cannon Street. The trail would be constructed of decomposed granite, and would allow for pedestrians equestrians, and bicycles
Limits
Santiago Canyon Rd - Orange Park Blv to Cannon
Street.

Project Notes
Reimbursable Capital Projects (550).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Other $75,000 $0 $0 $0 $75,000 $75,000
2026 Other $0 $0 $750,000 $0 $750,000 $795,675
Totals: $75,000 $0 $750,000 $0 $825,000 $870,675
Last Revised: 24-00 - Submitted Total Programmed: $825,000 TIP ID CP-11882 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20430 Project Title
Additional Project IDs: Storm Drain Improvements
Type of Work: Safety Project Description
Type of Work Description: Safety - Improve
roadway drainage
This project replaces existing deficient drainage systems and constructs new storm drain lines as needed per the Master Plan of Drainage to alleviate localized flooding.

Limits
Various Locations Throughout the City
Project Notes
Sanitation and Sewer (220).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Other $50,000 $0 $450,000 $0 $500,000 $513,500
2026 Other $50,000 $0 $450,000 $0 $500,000 $527,405
2027 Other $50,000 $0 $450,000 $0 $500,000 $541,727
2028 Other $50,000 $0 $450,000 $0 $500,000 $556,479
2029 Other $50,000 $0 $450,000 $0 $500,000 $571,673
Totals: $250,000 $0 $2,250,000 $0 $2,500,000 $2,710,784 Last Revised: 24-00 - Submitted Total Programmed: $2,500,000 TIP ID CP-11881 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 20374 Project Title
Additional Project IDs: Streetlight Pole Replacement Program Type of Work: Safety Project Description
Type of Work Description: Safety - Improve
lighting of roadway
This program will biannually replace 40 existing steel streetlight poles with City standard LEDretrofitted concrete poles and underground overhead wires.

Limits
Various locations throughout the City
Project Notes
Capital Project (500)

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 General Fund $50,000 $0 $450,000 $0 $500,000 $513,500 2026 General Fund $50,000 $0 $450,000 $0 $500,000 $527,405 2027 General Fund $50,000 $0 $450,000 $0 $500,000 $541,727 2028 General Fund $50,000 $0 $450,000 $0 $500,000 $556,479 2029 General Fund $50,000 $0 $450,000 $0 $500,000 $571,673 Totals: $250,000 $0 $2,250,000 $0 $2,500,000 $2,710,784 Last Revised: 24-00 - Submitted Total Programmed: $2,500,000 Attachment C - Resolution No. 11566 M2590
TIP ID CP-10979 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 13816 Project Title
Additional Project IDs: Structural Evaluation of City Bridges Type of Work: Bridge Project Description
Type of Work Description: Bridge -
Rehabilitation of existing pavement/structure
A maintenance and retrofit plan are ready for implementation for 8 bridges located throughout the City that require maintenance. The City is awaiting Caltrans funding for construction phase in FY 24-25.

Limits
Various Locations City Wide
Project Notes
Reimbursable Capital Projects (550).

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 State $0 $0 $2,000,000 $0 $2,000,000 $2,060,000
Totals: $0 $0 $2,000,000 $0 $2,000,000 $2,060,000
Last Revised: 24-00 - Submitted Total Programmed: $2,000,000 TIP ID CP-11055 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 16305 Project Title
Additional Project IDs: Traffic Signal Controller Changeout Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals -
Replace and upgrade traffic signals and equipment
The City maintains 158 traffic signals, most of which contain older controllers. Nearly 2/3 of the controllers have been updated or replaced to allow for better coordination with the City’s Transportation Management Center.

Limits
City-Wide
Project Notes
Gas Tax Maintenance (270)

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Gas Tax $0 $0 $100,000 $0 $100,000 $103,000
2026 Gas Tax $0 $0 $100,000 $0 $100,000 $106,090
2027 Gas Tax $0 $0 $100,000 $0 $100,000 $109,273
2028 Gas Tax $0 $0 $100,000 $0 $100,000 $112,551
2029 Gas Tax $0 $0 $100,000 $0 $100,000 $115,927
Totals: $0 $0 $500,000 $0 $500,000 $546,841
Last Revised: 24-00 - Submitted Total Programmed: $500,000 TIP ID CP-11056 IMPLEMENTING AGENCY Orange, City of
Local Project Number: 16469 Project Title
Additional Project IDs: Traffic Signal Equipment Painting Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals -
Replace and upgrade traffic signals and equipment
This project provides for the painting, wrapping, or application of an anti-graffiti coating to traffic signal equipment at intersections within the City. This project would fund a portion of the City's 158 intersections as needed.

Limits
City-Wide
Project Notes
TSIP Citywide (287) & Traffic Improvements -
Measure "M2"(263).

FISCAL
YEAR

FUND TYPE ENG ROW CON/IMP O&M TOTAL
TOTAL

ESCALATED
2025 Measure M2 Local
Fairshare
$0 $0 $45,000 $0 $45,000 $46,350
2026 Measure M2 Local
Fairshare
$0 $0 $45,000 $0 $45,000 $47,740
2027 Measure M2 Local
Fairshare
$0 $0 $45,000 $0 $45,000 $49,173
2028 Measure M2 Local
Fairshare
$0 $0 $45,000 $0 $45,000 $50,648
2029 Measure M2 Local
Fairshare
$0 $0 $45,000 $0 $45,000 $52,167
Totals: $0 $0 $225,000 $0 $225,000 $246,078
Last Revised: 24-00 - Submitted Total Programmed: $225,000 Attachment C - Resolution No. 11566 M2591
RESOLUTION NO. 11560

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE AMENDING RESOLUTION
NO. 11511 BETWEEN THE CITY OF ORANGE
AND THE ORANGE MUNICIPAL EMPLOYEES’

ASSOCIATION
WHEREAS, the City of Orange, hereinafter referred to as “City”, and the Orange Municipal Employees’ Association, hereinafter referred to as “OMEA”, has an existing labor contract (i.e. “Memorandum of Understanding” or “MOU”) in effect through and including June 30, 2025; and
WHEREAS, City staff is proposing a salary increase for the classification of Plan Check Engineer based on an assessment of the duties and responsibilities of the position; and WHEREAS, the salary range for this classification must be authorized by the City Council and published by the City in order for the salary range to be considered pension-reportable, pursuant to CalPERS law; and
WHEREAS, the City and OMEA have met and conferred in accordance with the requirements of the Meyers-Milias-Brown Act.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached OMEA salary table effective December 31, 2023 is hereby amended effective June 25, 2024 by reference as Appendix A.

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
Attachment D - Resolution No. 11560 OMEA592
2 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: Appendix A
Attachment D - Resolution No. 11560 OMEA593

APPENDIX A

ORANGE MUNCIPAL EMPLOYEES' ASSOCIATION

MONTHLY SALARY RANGES
EFFECTIVE DECEMBER 31, 2023

5.5% Across the Board Salary Increase

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Accountant 573 6214 6530 6864 7214 7582 7969
Administrative Assistant 521 4794 5039 5296 5566 5850 6148 Administrative Specialist 519 4747 4989 5243 5510 5792 6087 Assistant Engineer 602 7181 7548 7931 8336 8762 9208
Assistant Planner 560 5824 6121 6433 6761 7106 7468
Associate Civil Engineer 625 8054 8465 8895 9350 9828 10328 Associate Engineer 625 8054 8465 8895 9350 9828 10328
Associate Planner 595 6935 7289 7659 8050 8461 8892
Building Inspector 561 5853 6152 6465 6795 7142 7505
Business License Inspector 549 5513 5795 6089 6401 6727 7070 Buyer 557 5737 6030 6338 6661 7000 7357
Code Compliance Officer 555 5680 5970 6274 6595 6930 7284 Combination Building Inspector 571 6152 6466 6795 7143 7507 7889 Construction Inspector I 542 5324 5595 5881 6181 6496 6827 Construction Inspector II 562 5882 6182 6498 6829 7177 7543 Contract Administrator 602 7181 7548 7931 8336 8762 9208 Engineering Technician I 531 5040 5297 5567 5851 6149 6463 Engineering Technician II 551 5569 5852 6151 6464 6794 7141 Environmental Compliance
Specialist 555 5680 5970 6274 6595 6930 7284
Environmental Scientist 625 8054 8465 8895 9350 9828 10328 Finance Assistant 534 5116 5376 5651 5939 6242 6560
Finance Clerk 499 4296 4515 4746 4988 5242 5509
GIS Analyst 625 8054 8465 8895 9350 9828 10328
Housing Specialist 555 5680 5970 6274 6595 6930 7284
Human Resources Technician 529 4990 5244 5512 5793 6088 6399 Lead Business License Inspector 559 5795 6090 6401 6727 7070 7431 Lead Finance Clerk 559 5795 6090 6401 6727 7070 7431
Librarian I 537 5193 5458 5736 6028 6336 6659
Librarian II 557 5737 6030 6338 6661 7000 7357
Librarian III 577 6339 6663 7002 7359 7735 8129
Attachment D - Resolution No. 11560 OMEA594
4 Library Assistant 497 4254 4470 4698 4938 5190 5455
Library Clerk 451 3382 3554 3735 3926 4126 4336
Library Literacy Coordinator 537 5193 5458 5736 6028 6336 6659 Library Page 422 2926 3076 3232 3397 3571 3752
Library Support Services Assistant 497 4254 4470 4698 4938 5190 5455 Library Technology Assistant 497 4254 4470 4698 4938 5190 5455 Library Technology Coordinator 557 5737 6030 6338 6661 7000 7357 Library Technology Specialist 537 5193 5458 5736 6028 6336 6659 Library Volunteer Coordinator 521 4794 5039 5296 5566 5850 6148 Office Assistant 471 3736 3927 4127 4338 4559 4791
Payroll Technician 559 5795 6090 6401 6727 7070 7431
Permit Technician 521 4794 5039 5296 5566 5850 6148
Plan Check Engineer1 625 8054 8465 8895 9350 9828 10328 Planning Aide 530 5015 5270 5540 5822 6118 6431
Project Engineer 612 7548 7934 8337 8763 9210 9679
Recreation Services Coordinator 538 5219 5485 5765 6059 6368 6692 Senior Code Compliance Officer 575 6276 6596 6933 7286 7658 8049 Senior Combo. Building Inspector 591 6797 7145 7508 7891 8294 8717 Senior Finance Clerk 519 4747 4989 5243 5510 5792 6087
Senior Library Clerk 481 3927 4128 4338 4559 4792 5036
Senior Office Assistant 491 4129 4339 4560 4793 5037 5293 Senior Permit Technician 541 5297 5568 5851 6150 6463 6793 Senior Traffic Signal Technician 591 6797 7145 7508 7891 8294 8717 Stock Clerk 480 3907 4107 4316 4537 4768 5011
Traffic Management Center Tech 591 6797 7145 7508 7891 8294 8717 Traffic Signal Technician I 531 5040 5297 5567 5851 6149 6463 Traffic Signal Technician II 551 5569 5852 6151 6464 6794 7141 Transportation Analyst 625 8054 8465 8895 9350 9828 10328 Warehouse/Inventory Specialist 538 5219 5485 5765 6059 6368 6692

1. Classification of Plan Check Engineer salary range increased effective June 30, 2024 as part of the FY 25 budget.

Attachment D - Resolution No. 11560 OMEA595
RESOLUTION NO. 11562

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE RESCINDING RESOLUTION
NO. 11533 AND AMENDING THE CITYWIDE PAY

SCHEDULE IN ACCORDANCE WITH THE

REQUIREMENTS OF CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 570.5
WHEREAS, the City of Orange, (“City”), contracts with the California Public Employees’ Retirement System to provide retirement benefits for its employees; and WHEREAS, per California Code of Regulations, Title 2, Section 570.5 (“Regulation 570.5”), the amount of “compensation earnable” pursuant to the Government Code is limited to the payrate listed on a pay schedule that meets certain requirements; and WHEREAS, the attached Citywide Pay Schedule meets the following requirements of Regulation 570.5: (1) is duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meeting laws; (2) identifies the position title of every employee; (3) shows the pay rate for each position; (4) indicates the time base for each pay rate; (5) is posted at the office of the employer or immediately accessible for public review during normal business hours or posted on the employer’s internet website; (6) indicates an effective date and date of any revisions; (7) is retained by the employer and available for public inspection for a period not less than five years; and (8) does not reference another document in lieu of disclosing the pay rate; and
WHEREAS, the City Council approved Resolution No. 11493 between the City of Orange and the City of Orange Police Management Association with a salary adjustment effective June 30, 2024; and
WHEREAS, the City Council approved Resolution No. 11516 between the City of Orange and the City of Orange Police Association with a salary adjustment effective June 30, 2024; and WHEREAS, the City Council approved Resolution No. 11521 between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO with a salary adjustment effective June 30, 2024; and WHEREAS, the City Council approved Resolution No. 11494 between the City of Orange and the Orange Fire Management Association with a salary adjustment effective June 30, 2024; and
WHEREAS, the City Council approved Resolution No. 11560 between the City of Orange and the Orange Municipal Employees’ Association, which amended Resolution No. 11511 to update the salary range for the Plan Check Engineer classification; and Attachment E - Resolution No. 11562 Salary Schedule596
2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that Resolution No. 11533 is here by rescinded and the attached revised Citywide Pay Schedules are approved and incorporated.

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 J. Vigliotta, City Attorney, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing 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
Attachments:

Attachment A - Citywide Pay Schedule – June 30, 2024
Attachment E - Resolution No. 11562 Salary Schedule597
Attachment E - Resolution No. 11562 Salary Schedule598
ii
Attachment E - Resolution No. 11562 Salary Schedule599
iii
Attachment E - Resolution No. 11562 Salary Schedule600
iv
Attachment E - Resolution No. 11562 Salary Schedule601
FY 2025 Proposed Revenue Enhancements
Updated June 18, 2024
Yes Proposed Future
Consideration Approved*
Credit card fees P $ 150,000 $ - $ 150,000
Business license back tax & penalties P 51,000 - $ 51,000 Parking enforcement citations P 1,000,000 - $ 1,000,000 1-time CR&R reimbursement for road mitigation P 3,000,000 - $ 3,000,000 Implement Business License Fee for all Rental Properties P 500,000 Implement Life Safety Fee (Colleges $25 & Universities $100)^ P 1,309,300 Old Towne paid parking P 475,000
100% fee recovery P TBD
Implement Penalties for Over enrollment (College $XX &
Universities $XX)
P TBD
Increase Transient Occupancy Tax P TBD
Implement a 3- & 4-Star Hotel Incentive Program or Sales Tax Rebate
P TBD
Pursue PILOT partnership with non-profit organizations P TBD Total Proposed Additional Revenues $ 4,201,000 $ 2,284,300 $ 4,201,000 *Actual amount may vary depending on when the program starts. ^Estimated at 12,372 & 10,001 respectively
A-FY25 Proposed Revenue Enhancements 602
FY 2025 Proposed Expenditure Reductions
Updated June 18, 2024
Department Category Yes Proposed Approved Future
Consideration
Administrative
Support*
Maintenance &
Operation Reduce supplies, training, and office equipment P $ 52,136 $ 52,136 $ - Maintenance &
Operation Consolidate 24/7 app with Mainstar P 20,700 $ 20,700 - Maintenance &
Operation Eliminate communication support service contract P 75,000 $ 75,000 - Maintenance &
Operation Eliminate City Council meals P 1,500 $ 1,500 - Programs Eliminate contribution to Miss Orange P 5,000 $ 5,000 - Programs Eliminate CERT program 28,500 $ - 28,500
Programs Eliminate Ride Share/Health Fair P 5,000 $ 5,000 - Membership Eliminate membership to the League of California P 34,000 $ 34,000 - Membership Eliminate membership to SCAG 17,500 $ - 17,500 Membership Eliminate membership to OCCOG 11,200 $ - 11,200 Total Administrative Support Reductions $ 250,536 $ 193,336 $ 57,200 Library Services Personnel Reduce PT staff P $ 286,299 $ 286,299 $ - Maintenance &
Operation
Resources/subscriptions, programs, supplies,
outreach, events, training/development
P 223,069 $ 223,069 -
Total Library Services Reductions $ 509,368 $ 509,368 $ - Community
Services Special Events PT staff for various special events P $ 191,000 $ 95,500 $ 95,500 Contract Landscape services - change to mid-grade fertilizer & disband the use of soil additives
P 66,505 $ 66,505 -
Contract Park custodial - remove seasonal cleaning and
reduce cleaning frequency
P 16,720 $ 16,720 -
Contract Water cost - turn off Veteran's fountain 9,024 $ - 9,024 Contract Cleaning services - eliminate Veteran fountain cleaning contract 11,200 $ - 11,200
Contract Cleaning services - reduce dog park cleaning services P 8,970 $ 8,970 - B-FY25 Proposed Expenditure Reductions 603
FY 2025 Proposed Expenditure Reductions
Updated June 18, 2024
Department Category Yes Proposed Approved Future
Consideration
Contract Landscape services - remove fertilization services P 10,000 $ 10,000 - Maintenance &
Operation "Our Orange" design and printing P 103,000 $ 103,000 - Maintenance &
Operation Lyons Security nightly patrols in Parks 154,746 $ - 154,746 Maintenance &
Operation Portable restrooms 17,000 $ - 17,000
Maintenance &
Operation Cleaning and day porter at OES 74,700 $ - 74,700 Special Events Holiday Decorations 63,000 $ - 63,000
Special Events Movies in the Park 9,200 $ - 9,200
Special Events Concerts in the Park 26,700 $ - 26,700
Special Events Veteran's Day 2,245 $ - 2,245
Special Events Treats in the Streets 14,141 $ - 14,141
Special Events Tree Lighting Ceremony 55,425 $ - 55,425 Special Events 3rd of JuIy 135,582 $ - 135,582
Special Events Special Event supplies 23,650 $ - 23,650 Programs Orange Elderly Services Contribution 224,100 $ - 224,100 Programs Aquatic Program - summer 2025 226,475 $ - 226,475 Total Community Services Reductions $ 1,443,383 $ 300,695 $ 1,142,688 Public Works Contract Santiago Creek cleanup - reduce service by 100%. P 15,000 $ 60,000 Contract Tree trimming, removal and planting, emergency work - reduce service by 50%.

P 132,499 $ 132,499 -
Contract Janitorial services - reduce service by 50%. P 190,000 $ 190,000 Contract Plaza sidewalk steam cleaning -reduce service by 100%.

P 17,000 $ 62,000
Contract Water fountain maintenance - reduce service by 50%.

P 3,400 $ 3,400 -
B-FY25 Proposed Expenditure Reductions 604
FY 2025 Proposed Expenditure Reductions
Updated June 18, 2024
Department Category Yes Proposed Approved Future
Consideration
Contract Landscape services at city facilities and parking lots - reduce service by 50%.

P 18,500 $ 18,500 -
Maintenance &
Operation
Eliminate graffiti staff augmentation - FY25
request
P 67,000 $ 67,000 -
Total Public Works Reductions $ 443,399 $ 533,399 $ -
Community
Development Personnel 2 PT Code Enforcement Officers - FY25 request (augmentation) 154,000 $ - 154,000 Total Community Development Reductions $ 154,000 $ - $ 154,000 Police Special Events Overtime for special events $ 112,833 $ - $ 112,833 Maintenance &
Operation Eliminate hiring incentive 73,000 $ - 73,000
Personnel Overtime 322,879 $ - 322,879
Personnel Crossing Guards Program P 425,000 $ 425,000 - Personnel (17) Non-sworn personnel - through attrition 802,220 $ - 802,220 Maintenance &
Operation
Reduce contracts, uniforms, training, ammunition,
and equipment for personnel 224,468 $ - 224,468
Total Police Reductions $ 1,960,400 $ 425,000 $ 1,535,400 Vacancies Non-safety Holding 11 vacancies (support staff) P 1,478,130 $ 1,351,124 - Non-safety (3) positions through attrition 421,213 $ - 421,213 Safety Holding 6 vacancies (6 Police & 1 Record Manager) 1,024,844 1,024,844 Safety Holding 5 vacancies (Fire) P 761,320 $ 761,320 - Safety (13) Firefighters through attrition 2,265,164 2,265,164 Safety (10) Police Officers through attrition 1,605,802 1,605,802 Total Vacancies $ 7,556,473 $ 2,112,444 $ 5,317,023
Total Reductions From All
Departments $ 12,317,559 $ 4,074,242 $ 8,206,311
B-FY25 Proposed Expenditure Reductions 605
Agenda Item
City Council
Item #: 10.2. 6/25/2024 File #: 24-0370
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
City of Orange Public Safety/City Services Local General Transactions and Use Tax (Sales Tax) Measure and Presentation from Fairbank, Maslin, Maullin, Metz & Associates on the results from a citywide tracking survey.

2. SUMMARY
On March 12, 2024, the City Council approved an agreement with Fairbank, Maslin, Maullin, Metz & Associates to conduct a citywide tracking survey, measuring the efficacy of public education/outreach efforts regarding our City’s financial deficit. Separately, on June 11, 2024, the Orange City Council directed staff to bring back a package of transactions and use tax (commonly referred to as a sales tax) options for consideration and discussion. This presentation will review the survey results while also considering and discussing transactions and use tax options.

3. RECOMMENDED ACTION

1. Receive and file a presentation from Fairbank, Maslin, Maullin, Metz & Associates on the results of the citywide tracking survey that studied the feasibility of potential revenue measures and budget/service priorities.

2. Discuss the results from the citywide tracking survey and select the transactions and use tax rate and expiration date to be incorporated into Resolution No. 11559 and Resolution No. 11561.

3. Adopt Resolution No. 11559. A Resolution of the City Council of the City of Orange ordering the submission to the qualified electors of the City a certain measure relating to a local general transactions and use tax (Sales Tax) at the November 5, 2024, General Municipal Election as called by Resolution No. 11545.

4. Identify Members of the City Council to file arguments for or against the measure and adopt Resolution No. 11561. A Resolution of the City Council of the City of Orange Setting Priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an impartial analysis for the measure to be submitted to the voters at the General Municipal Election to be held on Tuesday, November 5, 2024.

4. FISCAL IMPACT
The County of Orange Registrar of Voters estimates it will cost $8,000 to place the measure on the November 5, 2024, ballot which will be funded through the General Fund (100). Dependent on City Council direction, if Orange voters approve a measure, it would generate locally controlled revenue not subject to State interference.

5. STRATEGIC PLAN GOALS
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Item #: 10.2. 6/25/2024 File #: 24-0370
Goal 2: Be a Fiscally Healthy Community.
a. Analyze future fiscal needs and potential revenue opportunities.

6. DISCUSSION AND BACKGROUND
Citywide Tracking Survey
On October 24, 2024, the Orange City Council approved an agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) to conduct a citywide survey studying the feasibility of potential revenue measures and budget/service priorities. FM3 presented the results at the February 27, 2024, City Council meeting.

Per the City Council’s direction on February 27th, at the March 12, 2024, City Council meeting, the City Council approved agreements with Pivotal Strategies to provide public education/outreach services and FM3 to conduct a citywide tracking survey. The tracking survey’s intent was to measure the efficacy of the outreach efforts over the past few months.

FM3 released the survey in late-May, collected/analyzed the results, and Dr. Richard Bernard of FM3 has prepared a presentation detailing the tracking survey’s findings.

Our City’s Budget Crisis - How We Arrived Here
The City of Orange is a premier Orange County city. Incorporated in 1888, it is one of Orange County’s largest and historic cities. Despite our City’s size, Orange is often described as a “big city with a small town feel” - an attribute that can only be credited to the residents and businesses we serve. Although Orange’s history makes it unique, it presents challenges typical in older, full-service cities.

With cost increases and lagging revenues, our City was facing a $19.1 million operating deficit as we prepared for Fiscal Year 2024-2025 (FY25). The deficit was not an abrupt crisis, but a gradual development compounded by external events resulting in revenue losses that include:

When looking at historical General Fund revenue and expenditure averages, General Fund revenues have not kept pace with the expenditures needed to maintain the services our residents have come to expect.

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Cost Reductions
Nevertheless, our City made concerted efforts over the past decade to “to do more with less,” including:

Of these totals, some of these reductions included:
· Furloughs, freezing, or eliminating positions while keeping non-public safety salaries below the Orange County median.
· Deferring annual funding needed to maintain streets in “good condition” (per a third-party pavement management report).
· Operating with numerous vacancies, including police officers and firefighters. · Reducing library hours.
· Deferring investment in technology that would have helped us meet our community’s needs or improve our City’s efficiency.
· Over $20 million in maintenance/improvements to City facilities and vehicles, including public safety vehicles.
· Deferring $4 million in improvements to City parks.
· Deferring $600,000 in ongoing traffic and streetlight maintenance. · Worked with City labor groups so employees pay more into their retirement.

Revenue Enhancements
In addition to these efforts, our City reviewed ways to increase revenues. · Fee Increases: For many years, Orange has been devoted to keeping costs/fees down for our community. However, with rising costs to provide services, our City will need to ensure full cost recovery to minimize service subsidies. This is expected to generate $250,000. · Parking Enforcement: Our City is implementing a new parking enforcement effort that will City of Orange Page 3 of 10 Printed on 6/20/2024
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· Parking Enforcement: Our City is implementing a new parking enforcement effort that will improve our residents’ quality of life while generating an estimated $8-10 million in revenues over a five-year period.
· Grants/Earmarks: Our City has also worked with a third-party consultant to secure grant and earmark proceeds, which last year alone, included over $4 million in one-time (and project specific) revenue.

Our City has also revamped our Economic Development program. With volatile revenue trends over the past decade, one of the $86 million reductions included Economic Development. Last year, our City restored this much needed program with the following initiatives/projects moving forward:
· Implementing a Shop Local Program with the Orange Chamber of Commerce. · Working with local hotels to create a Tourism Improvement District to promote Orange as a visitor destination.
· Working with consultants to attract high-quality retailers to Orange. · Developing a design concept in the West Katella Avenue corridor to serve as a gateway to Orange.
· Working with the County of Orange to form an enhanced infrastructure financing district to fund capital projects to attract businesses and promote economic growth. · Deploying a micro transit and shuttle service in and around Old Towne Orange with much of the funding expected to come from outside sources.

Despite these efforts, there are limitations and time constraints. Economic Development is vital, but the benefits of these efforts may not be realized for several years.

Additionally, while it is important to ensure cost recovery, these fees cover the cost to provide the service. They reduce subsidies, but do not generate excess revenue. The projected revenue will help, but it will not generate sufficient annual revenue necessary to close our City’s deficit or sustain City operations.

Lastly, as staff continues to seek grant opportunities, it should be recognized these revenue sources are not certain, are often one-time, may require matching funds, and demand more personnel time through grant administration.

Overall, if our City does not identify additional and sustainable revenue sources, our City’s reserves will diminish and the General Fund deficit will grow.

Fiscal Year 2024-2025 Budget
In recognizing the budget crisis at hand, the City Council formed a budget ad-hoc committee (Ad-Hoc Committee) to identify service reductions to close the estimated $19.1 million budget deficit.

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With public safety comprising nearly 70% (see details below) of the General Fund budget, the City Council considered multiple reduction options (including public safety) on June 11, 2024.

Ultimately, the City Council voted to increase fees and enhance parking citation efforts, which combined with the $3 million in one-time revenue, equals a $4.5 million revenue increase in FY25.

Additionally, the City Council voted to reduce approximately $5 million in expenditures. Among others, this included freezing employee vacancies (including five firefighter positions), eliminating the crossing guard program, eliminating maintenance/clean-up along Santiago Creek, and reducing Orange Public Library operations.

With these measures in place, our City is adopting a budget with an estimated $7-11 million deficit, requiring use of our City’s catastrophic reserves - an appropriation that will need to be paid back in two years.

Our City’s Proposed Sales Tax Measure
To preserve the events and public safety/city services that define Orange, the City Council deferred many potential program and service reductions to December 2024 and directed staff to bring back options for a transactions and use tax (sales tax) measure.

Per the City Council’s direction on June 11, 2024, some options included:

Proposed Tax Rate Proposed Expiration Date
1% 20 Years
1% 15 Years
1% 10 Year

0.75% 20 Years

0.75% 15 Years

0.75% 10 Years
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Item #: 10.2. 6/25/2024 File #: 24-0370
Additionally, staff is also presenting an additional option that was studied in the citywide tracking survey.

Proposed Tax Rate Proposed Expiration Date
1% Until Ended by Voters
Regardless of the sales tax rate or sunset date identified by the City Council, the proposed resolution and ordinance assumes a general-purpose measure. This means two-thirds of the City Council (5/7) would need to vote in favor of placing a measure on the ballot. Thereafter, it is up to Orange voters to approve any increase with a 50% plus one voter threshold.

Sales Tax Projections
Provided below are two fiscal projections extending into FY44.

The tables illustrate two scenarios. First, the expected FY where a deficit begins without considering funding of deferred maintenance and restoring budget reductions. Second, expected FY where a surplus begins after considering funding of deferred maintenance and restoring budget reductions.

Table I: Fiscal Projection without Funding of Deferred Maintenance and Restoring Budget Reductions.

Sales Tax Rate Projected Fiscal Year Where Deficit Begins 1% N/A - No Ongoing Deficit through FY44
*0.75% N/A - No Ongoing Deficit through FY44

0.5% Ongoing Deficit Beginning in FY29
*It is projected that with a 0.75% sales tax increase, our City will close FY25 with a deficit, but will realize surpluses thereafter.

Table II: Fiscal Projection with Funding of Deferred Maintenance and Restoring Budget Reductions
Sales Tax Rate Projected Fiscal Year Where Surplus Begins 1% FY36

0.75% N/A - Ongoing Deficit through FY44

0.5% N/A - Ongoing Deficit through FY44
Sales Tax Mechanics
Sales tax in Orange is currently 7.75%. Of this amount, our City receives 1%. The remaining amount is collected/received by the County of Orange and the State of California.

State law authorizes cities and counties to adopt local sales taxes in addition to the base amount our City currently receives (i.e., the 1% share). The local portion of the sales tax that a city and county can levy together is capped at 2%.

With voters having approved Measure M (0.5% sales tax), 1.5% is available for other local sales tax increases. If the County of Orange or other local districts passed additional local sales tax measures, City of Orange Page 6 of 10 Printed on 6/20/2024
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Item #: 10.2. 6/25/2024 File #: 24-0370
increases. If the County of Orange or other local districts passed additional local sales tax measures, those would apply to the cap.

If the 2% cap is reached due to other agencies (i.e. Orange County), Orange voters would be unable (absent State legislation) to implement a local sales tax measure to support City services.

How Sales Tax is Collected and What is Not Taxed
For illustrative purposes, if our community increased the local sales tax rate from 7.75% to 8.75%, the sales tax would cost an additional .01¢ per $1.00 spent on taxable goods or .10¢ for every $10 spent. The proposed sales tax increase would exclude unprepared groceries (roughly 20%-30% of grocery store sales are taxable), personal services, and rent.

Locally Controlled Revenue
Any revenue generated from a sales tax increase would be constitutionally protected, meaning it would stay in Orange and cannot be taken by the State of California or Orange County for other uses.

For example, at a 1% sales tax rate increase, if someone made a $100 purchase, our City would receive $2.00 as opposed to the current $1.00 with the County of Orange and State of California share remaining the same.

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Current Sales Tax in Orange County
In 2022, 70 agencies across the State of California pursued sales tax measures, and if Orange voters approved a sales tax rate increase, this would align with 10 other Orange County cities that have increased their respective sales tax rates including:
· La Habra - 8.25%
· Fountain Valley - 8.75%
· Garden Grove - 8.75%
· La Palma - 8.75%
· Placentia - 8.75%
· Seal Beach - 8.75%
· Stanton - 8.75%
· Westminster - 9.25%
· Los Alamitos - 9.25%
· Santa Ana - 9.25%
Should Orange voters approve a sales tax increase, it is anticipated a little over a 1/3 of the increased revenue will derive from non-Orange residents.

Accountability and Transparency
Per City Council direction, the measure includes fiscal accountability/transparency controls including an Independent Citizens’ Advisory Committee (Committee). As drafted, this Committee would be comprised of seven individuals. Experience and background (e.g., banking, financial, and/or accounting backgrounds) will be detailed by resolution at a future City Council meeting. The Committee will be a public Brown Act body, meet quarterly, review audit reports related to the sales tax measure against an adopted Citywide fiscal policy, and make at least one written report to the City Council at a public meeting.

Next Steps
To give Orange voters the option to consider a sales tax increase, two-thirds of the City Council must vote in favor. By adopting Resolution Nos. 11559 and 11561 (after identifying a sales tax rate and expiration date), the City Council will submit to the voters the following question on the November 5, 2024, ballot (dependent on City Council action):

City of Orange Public Safety/City Services Measure Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response,
fire/police protection/paramedic services;
recruiting/retaining well-trained police/firefighters;
preventing property crimes/thefts; addressing
homelessness; keeping public areas/parks safe/clean;
maintaining safe routes to school; repairing
streets/potholes by establishing a X% transactions and use Yes
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City of Orange Public Safety/City Services Measure Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response,
fire/police protection/paramedic services;
recruiting/retaining well-trained police/firefighters;
preventing property crimes/thefts; addressing
homelessness; keeping public areas/parks safe/clean;
maintaining safe routes to school; repairing
streets/potholes by establishing a X% transactions and use tax (sales tax) providing approximately $XX,XXX,XXX
annually until ended by voters or expiring after X years; requiring audits, spending disclosure, all funds benefit City of Orange residents, be adopted?
Yes
No
Conclusion
In a recent survey, Orange residents reported public safety (e.g., maintaining 911 response, fire protection, preventing property crimes, etc.), addressing homelessness, ensuring children have a safe place to play, and repairing streets/pot holes were some of the highest budget priorities.

Our community also made clear they would like all funds to benefit Orange residents. In considering our City’s fiscal position coupled with our residents’ priorities, a sales tax increase provides locally controlled funds to help meet these needs. In addition, a sales tax increase would help our City achieve specific goals, including but not limited to:
· Funding a Real-Time Crime Center - Estimated at $1.7 million to provide Orange Police Officers with real-time information so they may respond to calls more efficiently and with improved operational intelligence.
· Continue our City’s agreement to utilize Flock Safety Cameras - Estimated at $377,280 to deter crime and assist the Orange Police department in solving crimes that occur in our community.
· Acquire new Urban Search and Rescue Rig (one of five available in Orange County) - Estimated at over $2 million to assist with confined space rescues, trench rescues, vehicle into structure incidents, and structure fires.
· City Hall Seismic Retrofit - Estimated at $25 million to ensure Orange City Hall can withstand a significant earthquake.
· Fire Stations 2, 3, 4, and 5 Replacements - Estimated at $7-$10 million (per station) to replace these early 1960’s-built stations which are past their useful life. · Fund an additional $2 - $3 million in street maintenance annually to ensure our City streets are deemed to be in “good condition” as evaluated by a third party pavement management consultant.

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· Citywide fiber optic buildout- Estimated at $7.5 million for citywide fiber and internet services. · Continue Axon Enterprise Agreement - Estimated to cost $9 million to extend the contract in six years after it expires for tasers, body worn and in-car video, CAD/RMS systems, drones, evidence tracking, and unlimited cloud storage.
· Improvements to City parks - Estimated at $4 million for improvements that include repairs to park restrooms, court lighting at El Camino Park, playground improvements, and resurfacing of sports courts at various parks.
· Fund expected public safety vacancies in the future (e.g., expected firefighter retirements after 2025).
· Rebuild our City’s General Fund reserve levels to ensure our City’s long-term fiscal health.

Should Orange voters not increase the sales tax rate (if placed on the ballot by the City Council), our City will continue to engage our community to find means to provide services while considering additional City service and public safety reductions in December to ensure balanced budgets in future fiscal years.

7. ATTACHMENTS
· Resolution No. 11559
· Resolution No. 11561
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Agenda Item
City Council
Item #: 10.2. 6/25/2024 File #: 24-0370
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
City of Orange Public Safety/City Services Local General Transactions and Use Tax (Sales Tax) Measure and Presentation from Fairbank, Maslin, Maullin, Metz & Associates on the results from a citywide tracking survey.

2. SUMMARY
On March 12, 2024, the City Council approved an agreement with Fairbank, Maslin, Maullin, Metz & Associates to conduct a citywide tracking survey, measuring the efficacy of public education/outreach efforts regarding our City’s financial deficit. Separately, on June 11, 2024, the Orange City Council directed staff to bring back a package of transactions and use tax (commonly referred to as a sales tax) options for consideration and discussion. This presentation will review the survey results while also considering and discussing transactions and use tax options.

3. RECOMMENDED ACTION

1. Receive and file a presentation from Fairbank, Maslin, Maullin, Metz & Associates on the results of the citywide tracking survey that studied the feasibility of potential revenue measures and budget/service priorities.

2. Discuss the results from the citywide tracking survey and select the transactions and use tax rate and expiration date to be incorporated into Resolution No. 11559 and Resolution No. 11561.

3. Adopt Resolution No. 11559. A Resolution of the City Council of the City of Orange ordering the submission to the qualified electors of the City a certain measure relating to a local general transactions and use tax (Sales Tax) at the November 5, 2024, General Municipal Election as called by Resolution No. 11545.

4. Identify Members of the City Council to file arguments for or against the measure and adopt Resolution No. 11561. A Resolution of the City Council of the City of Orange Setting Priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an impartial analysis for the measure to be submitted to the voters at the General Municipal Election to be held on Tuesday, November 5, 2024.

4. FISCAL IMPACT
The County of Orange Registrar of Voters estimates it will cost $8,000 to place the measure on the November 5, 2024, ballot which will be funded through the General Fund (100). Dependent on City Council direction, if Orange voters approve a measure, it would generate locally controlled revenue not subject to State interference.

5. STRATEGIC PLAN GOALS
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Item #: 10.2. 6/25/2024 File #: 24-0370
Goal 2: Be a Fiscally Healthy Community.
a. Analyze future fiscal needs and potential revenue opportunities.

6. DISCUSSION AND BACKGROUND
Citywide Tracking Survey
On October 24, 2024, the Orange City Council approved an agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) to conduct a citywide survey studying the feasibility of potential revenue measures and budget/service priorities. FM3 presented the results at the February 27, 2024, City Council meeting.

Per the City Council’s direction on February 27th, at the March 12, 2024, City Council meeting, the City Council approved agreements with Pivotal Strategies to provide public education/outreach services and FM3 to conduct a citywide tracking survey. The tracking survey’s intent was to measure the efficacy of the outreach efforts over the past few months.

FM3 released the survey in late-May, collected/analyzed the results, and Dr. Richard Bernard of FM3 has prepared a presentation detailing the tracking survey’s findings.

Our City’s Budget Crisis - How We Arrived Here
The City of Orange is a premier Orange County city. Incorporated in 1888, it is one of Orange County’s largest and historic cities. Despite our City’s size, Orange is often described as a “big city with a small town feel” - an attribute that can only be credited to the residents and businesses we serve. Although Orange’s history makes it unique, it presents challenges typical in older, full-service cities.

With cost increases and lagging revenues, our City was facing a $19.1 million operating deficit as we prepared for Fiscal Year 2024-2025 (FY25). The deficit was not an abrupt crisis, but a gradual development compounded by external events resulting in revenue losses that include:

When looking at historical General Fund revenue and expenditure averages, General Fund revenues have not kept pace with the expenditures needed to maintain the services our residents have come to expect.

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Cost Reductions
Nevertheless, our City made concerted efforts over the past decade to “to do more with less,” including:

Of these totals, some of these reductions included:
· Furloughs, freezing, or eliminating positions while keeping non-public safety salaries below the Orange County median.
· Deferring annual funding needed to maintain streets in “good condition” (per a third-party pavement management report).
· Operating with numerous vacancies, including police officers and firefighters. · Reducing library hours.
· Deferring investment in technology that would have helped us meet our community’s needs or improve our City’s efficiency.
· Over $20 million in maintenance/improvements to City facilities and vehicles, including public safety vehicles.
· Deferring $4 million in improvements to City parks.
· Deferring $600,000 in ongoing traffic and streetlight maintenance. · Worked with City labor groups so employees pay more into their retirement.

Revenue Enhancements
In addition to these efforts, our City reviewed ways to increase revenues. · Fee Increases: For many years, Orange has been devoted to keeping costs/fees down for our community. However, with rising costs to provide services, our City will need to ensure full cost recovery to minimize service subsidies. This is expected to generate $250,000. · Parking Enforcement: Our City is implementing a new parking enforcement effort that will City of Orange Page 3 of 10 Printed on 6/20/2024
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Item #: 10.2. 6/25/2024 File #: 24-0370
· Parking Enforcement: Our City is implementing a new parking enforcement effort that will improve our residents’ quality of life while generating an estimated $8-10 million in revenues over a five-year period.
· Grants/Earmarks: Our City has also worked with a third-party consultant to secure grant and earmark proceeds, which last year alone, included over $4 million in one-time (and project specific) revenue.

Our City has also revamped our Economic Development program. With volatile revenue trends over the past decade, one of the $86 million reductions included Economic Development. Last year, our City restored this much needed program with the following initiatives/projects moving forward:
· Implementing a Shop Local Program with the Orange Chamber of Commerce. · Working with local hotels to create a Tourism Improvement District to promote Orange as a visitor destination.
· Working with consultants to attract high-quality retailers to Orange. · Developing a design concept in the West Katella Avenue corridor to serve as a gateway to Orange.
· Working with the County of Orange to form an enhanced infrastructure financing district to fund capital projects to attract businesses and promote economic growth. · Deploying a micro transit and shuttle service in and around Old Towne Orange with much of the funding expected to come from outside sources.

Despite these efforts, there are limitations and time constraints. Economic Development is vital, but the benefits of these efforts may not be realized for several years.

Additionally, while it is important to ensure cost recovery, these fees cover the cost to provide the service. They reduce subsidies, but do not generate excess revenue. The projected revenue will help, but it will not generate sufficient annual revenue necessary to close our City’s deficit or sustain City operations.

Lastly, as staff continues to seek grant opportunities, it should be recognized these revenue sources are not certain, are often one-time, may require matching funds, and demand more personnel time through grant administration.

Overall, if our City does not identify additional and sustainable revenue sources, our City’s reserves will diminish and the General Fund deficit will grow.

Fiscal Year 2024-2025 Budget
In recognizing the budget crisis at hand, the City Council formed a budget ad-hoc committee (Ad-Hoc Committee) to identify service reductions to close the estimated $19.1 million budget deficit.

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With public safety comprising nearly 70% (see details below) of the General Fund budget, the City Council considered multiple reduction options (including public safety) on June 11, 2024.

Ultimately, the City Council voted to increase fees and enhance parking citation efforts, which combined with the $3 million in one-time revenue, equals a $4.5 million revenue increase in FY25.

Additionally, the City Council voted to reduce approximately $5 million in expenditures. Among others, this included freezing employee vacancies (including five firefighter positions), eliminating the crossing guard program, eliminating maintenance/clean-up along Santiago Creek, and reducing Orange Public Library operations.

With these measures in place, our City is adopting a budget with an estimated $7-11 million deficit, requiring use of our City’s catastrophic reserves - an appropriation that will need to be paid back in two years.

Our City’s Proposed Sales Tax Measure
To preserve the events and public safety/city services that define Orange, the City Council deferred many potential program and service reductions to December 2024 and directed staff to bring back options for a transactions and use tax (sales tax) measure.

Per the City Council’s direction on June 11, 2024, some options included:

Proposed Tax Rate Proposed Expiration Date
1% 20 Years
1% 15 Years
1% 10 Year

0.75% 20 Years

0.75% 15 Years

0.75% 10 Years
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Item #: 10.2. 6/25/2024 File #: 24-0370
Additionally, staff is also presenting an additional option that was studied in the citywide tracking survey.

Proposed Tax Rate Proposed Expiration Date
1% Until Ended by Voters
Regardless of the sales tax rate or sunset date identified by the City Council, the proposed resolution and ordinance assumes a general-purpose measure. This means two-thirds of the City Council (5/7) would need to vote in favor of placing a measure on the ballot. Thereafter, it is up to Orange voters to approve any increase with a 50% plus one voter threshold.

Sales Tax Projections
Provided below are two fiscal projections extending into FY44.

The tables illustrate two scenarios. First, the expected FY where a deficit begins without considering funding of deferred maintenance and restoring budget reductions. Second, expected FY where a surplus begins after considering funding of deferred maintenance and restoring budget reductions.

Table I: Fiscal Projection without Funding of Deferred Maintenance and Restoring Budget Reductions.

Sales Tax Rate Projected Fiscal Year Where Deficit Begins 1% N/A - No Ongoing Deficit through FY44
*0.75% N/A - No Ongoing Deficit through FY44

0.5% Ongoing Deficit Beginning in FY29
*It is projected that with a 0.75% sales tax increase, our City will close FY25 with a deficit, but will realize surpluses thereafter.

Table II: Fiscal Projection with Funding of Deferred Maintenance and Restoring Budget Reductions
Sales Tax Rate Projected Fiscal Year Where Surplus Begins 1% FY36

0.75% N/A - Ongoing Deficit through FY44

0.5% N/A - Ongoing Deficit through FY44
Sales Tax Mechanics
Sales tax in Orange is currently 7.75%. Of this amount, our City receives 1%. The remaining amount is collected/received by the County of Orange and the State of California.

State law authorizes cities and counties to adopt local sales taxes in addition to the base amount our City currently receives (i.e., the 1% share). The local portion of the sales tax that a city and county can levy together is capped at 2%.

With voters having approved Measure M (0.5% sales tax), 1.5% is available for other local sales tax increases. If the County of Orange or other local districts passed additional local sales tax measures, City of Orange Page 6 of 10 Printed on 6/20/2024
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Item #: 10.2. 6/25/2024 File #: 24-0370
increases. If the County of Orange or other local districts passed additional local sales tax measures, those would apply to the cap.

If the 2% cap is reached due to other agencies (i.e. Orange County), Orange voters would be unable (absent State legislation) to implement a local sales tax measure to support City services.

How Sales Tax is Collected and What is Not Taxed
For illustrative purposes, if our community increased the local sales tax rate from 7.75% to 8.75%, the sales tax would cost an additional .01¢ per $1.00 spent on taxable goods or .10¢ for every $10 spent. The proposed sales tax increase would exclude unprepared groceries (roughly 20%-30% of grocery store sales are taxable), personal services, and rent.

Locally Controlled Revenue
Any revenue generated from a sales tax increase would be constitutionally protected, meaning it would stay in Orange and cannot be taken by the State of California or Orange County for other uses.

For example, at a 1% sales tax rate increase, if someone made a $100 purchase, our City would receive $2.00 as opposed to the current $1.00 with the County of Orange and State of California share remaining the same.

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Current Sales Tax in Orange County
In 2022, 70 agencies across the State of California pursued sales tax measures, and if Orange voters approved a sales tax rate increase, this would align with 10 other Orange County cities that have increased their respective sales tax rates including:
· La Habra - 8.25%
· Fountain Valley - 8.75%
· Garden Grove - 8.75%
· La Palma - 8.75%
· Placentia - 8.75%
· Seal Beach - 8.75%
· Stanton - 8.75%
· Westminster - 9.25%
· Los Alamitos - 9.25%
· Santa Ana - 9.25%
Should Orange voters approve a sales tax increase, it is anticipated a little over a 1/3 of the increased revenue will derive from non-Orange residents.

Accountability and Transparency
Per City Council direction, the measure includes fiscal accountability/transparency controls including an Independent Citizens’ Advisory Committee (Committee). As drafted, this Committee would be comprised of seven individuals. Experience and background (e.g., banking, financial, and/or accounting backgrounds) will be detailed by resolution at a future City Council meeting. The Committee will be a public Brown Act body, meet quarterly, review audit reports related to the sales tax measure against an adopted Citywide fiscal policy, and make at least one written report to the City Council at a public meeting.

Next Steps
To give Orange voters the option to consider a sales tax increase, two-thirds of the City Council must vote in favor. By adopting Resolution Nos. 11559 and 11561 (after identifying a sales tax rate and expiration date), the City Council will submit to the voters the following question on the November 5, 2024, ballot (dependent on City Council action):

City of Orange Public Safety/City Services Measure Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response,
fire/police protection/paramedic services;
recruiting/retaining well-trained police/firefighters;
preventing property crimes/thefts; addressing
homelessness; keeping public areas/parks safe/clean;
maintaining safe routes to school; repairing
streets/potholes by establishing a X% transactions and use Yes
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City of Orange Public Safety/City Services Measure Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response,
fire/police protection/paramedic services;
recruiting/retaining well-trained police/firefighters;
preventing property crimes/thefts; addressing
homelessness; keeping public areas/parks safe/clean;
maintaining safe routes to school; repairing
streets/potholes by establishing a X% transactions and use tax (sales tax) providing approximately $XX,XXX,XXX
annually until ended by voters or expiring after X years; requiring audits, spending disclosure, all funds benefit City of Orange residents, be adopted?
Yes
No
Conclusion
In a recent survey, Orange residents reported public safety (e.g., maintaining 911 response, fire protection, preventing property crimes, etc.), addressing homelessness, ensuring children have a safe place to play, and repairing streets/pot holes were some of the highest budget priorities.

Our community also made clear they would like all funds to benefit Orange residents. In considering our City’s fiscal position coupled with our residents’ priorities, a sales tax increase provides locally controlled funds to help meet these needs. In addition, a sales tax increase would help our City achieve specific goals, including but not limited to:
· Funding a Real-Time Crime Center - Estimated at $1.7 million to provide Orange Police Officers with real-time information so they may respond to calls more efficiently and with improved operational intelligence.
· Continue our City’s agreement to utilize Flock Safety Cameras - Estimated at $377,280 to deter crime and assist the Orange Police department in solving crimes that occur in our community.
· Acquire new Urban Search and Rescue Rig (one of five available in Orange County) - Estimated at over $2 million to assist with confined space rescues, trench rescues, vehicle into structure incidents, and structure fires.
· City Hall Seismic Retrofit - Estimated at $25 million to ensure Orange City Hall can withstand a significant earthquake.
· Fire Stations 2, 3, 4, and 5 Replacements - Estimated at $7-$10 million (per station) to replace these early 1960’s-built stations which are past their useful life. · Fund an additional $2 - $3 million in street maintenance annually to ensure our City streets are deemed to be in “good condition” as evaluated by a third party pavement management consultant.

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· Citywide fiber optic buildout- Estimated at $7.5 million for citywide fiber and internet services. · Continue Axon Enterprise Agreement - Estimated to cost $9 million to extend the contract in six years after it expires for tasers, body worn and in-car video, CAD/RMS systems, drones, evidence tracking, and unlimited cloud storage.
· Improvements to City parks - Estimated at $4 million for improvements that include repairs to park restrooms, court lighting at El Camino Park, playground improvements, and resurfacing of sports courts at various parks.
· Fund expected public safety vacancies in the future (e.g., expected firefighter retirements after 2025).
· Rebuild our City’s General Fund reserve levels to ensure our City’s long-term fiscal health.

Should Orange voters not increase the sales tax rate (if placed on the ballot by the City Council), our City will continue to engage our community to find means to provide services while considering additional City service and public safety reductions in December to ensure balanced budgets in future fiscal years.

7. ATTACHMENTS
· Resolution No. 11559
· Resolution No. 11561
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RESOLUTION NO. 11559

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE ORDERING THE SUBMISSION

TO THE QUALIFIED ELECTORS OF THE CITY A

CERTAIN MEASURE RELATING TO A LOCAL

GENERAL TRANSACTIONS AND USE TAX (SALES
TAX) AT THE NOVEMBER 5, 2024, GENERAL

MUNICIPAL ELECTION AS CALLED BY
RESOLUTION NO. 11545.

WHEREAS, the City of Orange (“City”) residents strongly prioritize maintaining and protecting city services that protect health, welfare and safety of residents and maintain the quality of life of residents in the City; and
WHEREAS, the City believes that safe neighborhoods and high-quality city services make for a safe and desirable community, create demand for local homes and help keep property values strong; and
WHEREAS, local revenues have not kept pace with the rising costs of maintaining city services and facilities and existing funds will not support the quality and level of service that residents have come to expect; and
WHEREAS, maintaining public safety services to quickly respond to emergencies and keeping public areas safe and clean is important to the quality of life in the City; and WHEREAS, to ensure a better future, the City has been proactive in responding to funding challenges by reducing costs wherever feasible without impacting resident services; however, additional revenue is needed to protect the quality of life for City residents; and WHEREAS, the City is committed to keeping tax dollars local to maximize funds available for city services for residents instead of sending local tax dollars to the County or the State; and
WHEREAS, if enacted, a new transactions and use tax measure would give the City local control over funds for local needs and no funds could be taken by the State; and WHEREAS, on May 14, 2024, the City Council adopted Resolution No. 11545 calling a General Municipal Election for Tuesday, November 5, 2024; and WHEREAS, on May 14, 2024, the City Council also adopted Resolution No. 11544 requesting that the General Municipal Election be consolidated with the Statewide General Election to be held on November 5, 2024, and requested assistance of the Orange County Registrar of Voters; and
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2 WHEREAS, California Revenue and Taxation Code Section 7285.9 authorizes the City to levy a general transactions and use (sales) tax, with all revenues deposited into the City’s General Fund to be expended for governmental purposes as determined by the City Council; and WHEREAS, in order to levy such a tax, the ordinance imposing the tax must be approved by a two-thirds vote of all members of the City Council and the tax must be approved by a majority vote of the qualified voters of the City voting in an election on the issue; and WHEREAS, the City Council desires to submit to the voters of the City, at the General Municipal Election to be held on November 5, 2024, an ordinance imposing a ______ percent (X%) transaction and use (sales) tax.

NOW, THEREFORE, the City Council of the City of Orange does hereby resolve, declare, determine and order as follows:

SECTION 1. That the above recitals are true and correct and are incorporated herein.

SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election to be held on November 5, 2024, the following question:

City of Orange Public Safety/ City Services Measure
Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response, fire/police protection/paramedic services; recruiting/retaining well-trained police/firefighters; preventing property crimes/thefts; addressing homelessness; keeping public areas/parks safe/clean; maintaining safe routes to school; repairing streets/potholes by establishing a X% transaction and use tax (sales tax) providing approximately $XX,XXX,XXX annually until ended by voters or expiring after X years; requiring audits, spending disclosure, all funds benefiting City of Orange residents, be adopted?
YES
NO
SECTION 3. That the proposed complete text of the ordinance to be submitted to the voters is attached as Exhibit A. The ballot question and the ordinance are collectively referred to herein as the “Measure.”
SECTION 4. That the vote requirement for the Measure to pass is a majority (50%+1) of the votes cast.

SECTION 5. The City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors of the County of Orange and the Registrar of Voters of the County of Orange.

SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
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3 ADOPTED this ______ day of June 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 June 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
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EXHIBIT A
1 [PROPOSED] ORDINANCE NO. 17-24

AN ORDINANCE OF THE PEOPLE OF THE CITY OF ORANGE, ADDING CHAPTER 3.23 TO TITLE 3 OF THE ORANGE MUNICIPAL CODE TO

ENACT A X PERCENT TRANSACTIONS AND USE TAX (SALES TAX)

FOR GENERAL GOVERNMENT USE TO BE ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION.

WHEREAS, Article XIII C, section 2(b) of the California Constitution provides that any general tax imposed, extended, or increased by the City Council shall not take effect until it is submitted to the electorate and approved by a majority of voters in a regularly scheduled general election in which members of the City Council are also up for election or reelection; and WHEREAS, this Ordinance shall only take effect following its approval by a majority of City voters in the election to be held on November 5, 2024.

NOW, THEREFORE, the People of the City of Orange hereby ordain as follows:

SECTION I. Chapter 3.23 [Transactions and Use Tax] is hereby added to the Orange Municipal Code to read as follows:

Chapter 3.23 – Transactions and Use Tax

3.23.010 – Title
This ordinance shall be known as the “Orange Transactions and Use Tax Ordinance.” The City of Orange shall be hereinafter referred to as the “City.” This ordinance shall apply in the incorporated territory of the City.

3.23.020 – Operative Date
“Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance.

3.23.030 – Purpose
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part

1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
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B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

3.23.040 – Contract with State
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3.23.050 – Transactions Tax Rate
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of xx% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

3.23.060 – Place of Sale
For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
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3.23.070 – Use Tax Rate
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of X% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.23.080 – Adoption of Provisions of State Law
Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

3.23.090 – Limitations on Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California.

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
(a) Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
(b) Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 631

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

3.23.100 – Permit Not Required
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.

3.23.110 – Exemptions and Exclusions
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 632
9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
(b) With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to 633
lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

3.23.120 – Term
The tax imposed by this ordinance shall be effective until terminated or otherwise altered by a majority of the City’s voters.

3.23.130 – Amendments
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 634

3.23.140 – Independent Oversight
A seven-member Independent Citizens’ Advisory Committee will be created to review the expenditure of revenues generated by the tax imposed by this chapter and to make recommendations to the City Council regarding those expenditures. Members of the committee will be appointed to terms of not more than 4 years by the City Council. The Independent Citizens’ Advisory Committee shall meet publicly on at least a quarterly basis to review all revenues and expenditures of the transactions and use tax imposed by this chapter, review annual audit reports related to the tax, and make at least one written annual report to the City Council at a public meeting summarizing the Independent Citizens’ Advisory Committee’s findings and including any appropriate recommendations. The minutes of the meetings of Independent Citizens’ Advisory Committee shall be provided to the City Council and placed on the next available regular City Council meeting agenda for informational purposes.

3.23.150 – Audit and Review
The proceeds of the tax imposed by this ordinance, as well as the expenditure thereof, shall be audited annually by an independent accounting firm. The City Council shall discuss the results of such audit at a meeting of the City Council that is open to the public. The report of such audit shall be posted on the City’s website.

3.23.160 – Enjoining Collection Forbidden
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.23.170 – Severability
If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

SECTION II. The adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA), Public Resources Code section 21000 et seq. and California Code of Regulations, title 14, section 15000 et seq. (CEQA Guidelines). The general transactions and use tax this Ordinance adopts is a government funding mechanism that does not “involve any commitment to any specific project which may result in a potentially significant physical impact on the environment,” and thus it is not a project under CEQA Guidelines section 15378(b)(4).

SECTION III. Pursuant to California Elections Code Section 9222, this ordinance shall take effect only if approved by a majority of the eligible voters of the City of Orange voting at a General Municipal Election to be held on November 5, 2024. It shall be deemed adopted when the City 635
Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter.

SECTION IV. The Mayor and City Clerk are hereby authorized to attest to the adoption of this Ordinance by the People voting thereon on November 5, 2024, by signing where indicated below.

The foregoing ordinance was PASSED, APPROVED AND ADOPTED by the People of the City of Orange voting on November 5, 2024, which vote was certified by the City Council on 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
636
RESOLUTION NO. 11561

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE SETTING PRIORITIES FOR

FILING WRITTEN ARGUMENTS REGARDING A

CITY MEASURE AND DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARITAL

ANALYSIS FOR THE MEASURE TO BE

SUBMITTED TO THE VOTERS AT THE GENERAL

MUNICIPAL ELECTION HELD ON TUESDAY,
NOVEMBER 5, 2024.

WHEREAS, a General Municipal Election is to be held in the City of Orange, California, on Tuesday, November 5, 2024, at which there will be submitted to the voters the following measure (hereafter, the “Measure”):

City of Orange Public Safety/City Services Measure
Shall the measure providing funding for City of Orange’s general government use such as maintaining 911 response, fire/police protection/paramedic services; recruiting/retaining well-trained police/firefighters; preventing property crimes/thefts; addressing homelessness; keeping public areas/parks safe/clean; maintaining safe routes to school; repairing streets/potholes by establishing a X% transaction and use tax (sales tax) providing approximately $XX,XXX,XXX annually until ended by voters or expiring after X years; requiring audits, spending disclosure, all funds benefiting City of Orange residents, be adopted?
YES
NO
NOW, THEREFORE, the City Council of the City of Orange does hereby resolve, declare, determine and order as follows:

SECTION 1. The City Council authorizes the following member(s) of its body __________ (Councilmember In Favor) or __________ (Councilmember Against) __________ (Councilmember In Favor) or __________ (Councilmember Against) __________ (Councilmember In Favor) or __________ (Councilmember Against) __________ (Councilmember In Favor) or __________ (Councilmember Against) __________ (Councilmember In Favor) or __________ (Councilmember Against) __________ (Councilmember In Favor) or __________ (Councilmember Against) __________ (Councilmember In Favor) or __________ (Councilmember Against) to file written arguments In Favor of or Against the Measure not exceeding 300 words, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California. The 637
2 arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk.

SECTION 2. The argument(s) shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement to be Filed by Author(s) of Argument as provided for in California Elections Code Section 9600.

SECTION 3. The City Clerk is directed to transmit a copy of the Measure to the City Attorney unless the organization or salaries of the office of the City Attorney are affected. In accordance with Elections Code Section 9280, the City Attorney is hereby directed as follows:
a. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. If the measure affects the organization or salaries of the office of the City Attorney, the City Council may direct the City Clerk to prepare this impartial analysis.
b. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the City.
c. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point bold type, the following: “The above statement is an impartial analysis of Measure ____. If you desire a copy of the ordinance or measure, please call the election official’s office at (714) 744-5500 and a copy will be mailed at no cost to you.”
d. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.

SECTION 4. That if more than one argument for or against the measure is submitted to the City Clerk within the time prescribed, she shall give preference and priority, in the order set forth in California Elections Code Section 9287, to the arguments in favor/against submitted by:
1) the legislative body, or member(s) of the legislative body authorized by that body, 2) individual voter or bona fide association of citizens or combination of voters and associations, who are the bona fide sponsors or proponents of the measure, 3) bona fide associations of citizens, 4) individual voters who are eligible to vote on the measure.

SECTION 5. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

ADOPTED this _____ day of June 2024.

Daniel R. Slater, Mayor, City of Orange
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3 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 June 2024, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
639
Agenda Item
City Council
Item #: 10.3. 6/25/2024 File #: 24-0339
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director

1. SUBJECT
Agreement with Lyons Security Service Inc., for City parks and facilities and Old Towne West Metrolink Parking structure security services.

2. SUMMARY
A four-year agreement to provide City parks and facilities private security services to prevent illegal activity, vandalism, and graffiti for a four-year total not to exceed $1,027,732.51. Year one of the agreement is in the amount not to exceed $247,514.24.

3. RECOMMENDED ACTION
Approve four-year agreement with Lyons Security Service, Inc. in an amount not to exceed $1,027,732.51 for security services for city parks and facilities and Old Towne West Metrolink Parking structure; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $1,027,732.51and will be funded through General Fund (100):
100.7022.51700.00000 Contractual Services (Labor & Maint.) $154,745.84 100.5028.51450.20421 Other Maintenance-Metrolink Structure $ 92,768.40

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

6. DISCUSSION AND BACKGROUND
Background
In 2016, the City implemented a parks and facilities security program. Since then, the program has proven to be successful in deterring vandalism and illegal activity in parks and other City facilities during park closure hours of 11:00 p.m. to 5:00 a.m. The use of private security services is an effective and cost-efficient solution to supplement the efforts of the Orange Police Department and Community Services Department staff in maintaining the City’s park system. In addition to patrolling City parks after hours, the program also includes nightly patrols of the Old Towne West Metrolink City of Orange Page 1 of 2 Printed on 6/20/2024
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Item #: 10.3. 6/25/2024 File #: 24-0339
City parks after hours, the program also includes nightly patrols of the Old Towne West Metrolink Parking Structure. The current four-year agreement for security services expires June 30, 2024, requiring the City to enter into a new agreement beginning July 1, 2024 to continue the security program.

Discussion
The City issued a Request for Proposals (RFP) on November 9, 2023 (RFP 23-24.21) and proposals were due on December 14, 2023. Fourteen proposals were submitted. Staff evaluated the proposals based on the firm’s experience, overall qualifications, record of success on previous projects, and overall responsiveness to the RFP. Proposal cost sheets were submitted in separate sealed envelopes and reviewed after the rating process was complete. A Proposal Abstract Summary (Attachment 1) is attached for reference.

After reviewing and scoring all submitted proposals, Lyons, the City’s current vendor, was rated the highest (95 out of 100), as their detailed proposal demonstrated a solid understanding of the City’s security service needs. Lyons Security has demonstrated competence and has provided the City with a positive experience during the last four years they provided parks and facilities security services.

Staff also verified the qualifications of the vendor with references provided for similar municipal security services and received positive responses.

The proposed scope of services includes the assignment of providing security services for afterhours park patrol - two patrol guards for six hours per evening, seven nights a week, including holidays. Park patrols include multiple locations determined by the City based on current trends and available funding. A third designated guard would be assigned to provide security services at the City’s Old Towne West Metrolink Parking Structure, eight hours per night, seven nights per week (including holidays).

The total base bid amount to patrol City parks is $584,167.74. Costs related to continuing the nightly patrols of the Old Town West Metrolink Parking structure is $385,148. The total base bid for afterhours park and parking structure patrols is $969,315.74.

The agreement is for four years and proposed a total not-to-exceed amount of $1,027,732.51. This amount includes a 10 percent contingency on only the security services provided for afterhours park patrol. The contingency amount is $58,416.77 and will be used in the event that the City requires additional park security needs. The patrol services for the Old Town West Metrolink Parking Structure does not have a contingency.

The total expenditure will be funded through General Fund (100). The annual cost for the first year of the agreement is $154,745.84 for afterhours park patrol, including the contingency, and $92,768.40 for parking structure patrol, for a total of $247,514.24. Funding for the remaining three years of the agreement is dependent upon City Council approval of the annual budget through Fiscal Year 2027- 2028. If funds are not budgeted, the agreement can be terminated or reduced to meet that year’s allocation.

7. ATTACHMENTS
· Proposal Abstract Summary
· Agreement with Lyons Security Service, Inc.

City of Orange Page 2 of 2 Printed on 6/20/2024
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Agenda Item
City Council
Item #: 10.3. 6/25/2024 File #: 24-0339
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director

1. SUBJECT
Agreement with Lyons Security Service Inc., for City parks and facilities and Old Towne West Metrolink Parking structure security services.

2. SUMMARY
A four-year agreement to provide City parks and facilities private security services to prevent illegal activity, vandalism, and graffiti for a four-year total not to exceed $1,027,732.51. Year one of the agreement is in the amount not to exceed $247,514.24.

3. RECOMMENDED ACTION
Approve four-year agreement with Lyons Security Service, Inc. in an amount not to exceed $1,027,732.51 for security services for city parks and facilities and Old Towne West Metrolink Parking structure; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $1,027,732.51and will be funded through General Fund (100):
100.7022.51700.00000 Contractual Services (Labor & Maint.) $154,745.84 100.5028.51450.20421 Other Maintenance-Metrolink Structure $ 92,768.40

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

6. DISCUSSION AND BACKGROUND
Background
In 2016, the City implemented a parks and facilities security program. Since then, the program has proven to be successful in deterring vandalism and illegal activity in parks and other City facilities during park closure hours of 11:00 p.m. to 5:00 a.m. The use of private security services is an effective and cost-efficient solution to supplement the efforts of the Orange Police Department and Community Services Department staff in maintaining the City’s park system. In addition to patrolling City parks after hours, the program also includes nightly patrols of the Old Towne West Metrolink City of Orange Page 1 of 2 Printed on 6/20/2024
powered by Legistar™642
Item #: 10.3. 6/25/2024 File #: 24-0339
City parks after hours, the program also includes nightly patrols of the Old Towne West Metrolink Parking Structure. The current four-year agreement for security services expires June 30, 2024, requiring the City to enter into a new agreement beginning July 1, 2024 to continue the security program.

Discussion
The City issued a Request for Proposals (RFP) on November 9, 2023 (RFP 23-24.21) and proposals were due on December 14, 2023. Fourteen proposals were submitted. Staff evaluated the proposals based on the firm’s experience, overall qualifications, record of success on previous projects, and overall responsiveness to the RFP. Proposal cost sheets were submitted in separate sealed envelopes and reviewed after the rating process was complete. A Proposal Abstract Summary (Attachment 1) is attached for reference.

After reviewing and scoring all submitted proposals, Lyons, the City’s current vendor, was rated the highest (95 out of 100), as their detailed proposal demonstrated a solid understanding of the City’s security service needs. Lyons Security has demonstrated competence and has provided the City with a positive experience during the last four years they provided parks and facilities security services.

Staff also verified the qualifications of the vendor with references provided for similar municipal security services and received positive responses.

The proposed scope of services includes the assignment of providing security services for afterhours park patrol - two patrol guards for six hours per evening, seven nights a week, including holidays. Park patrols include multiple locations determined by the City based on current trends and available funding. A third designated guard would be assigned to provide security services at the City’s Old Towne West Metrolink Parking Structure, eight hours per night, seven nights per week (including holidays).

The total base bid amount to patrol City parks is $584,167.74. Costs related to continuing the nightly patrols of the Old Town West Metrolink Parking structure is $385,148. The total base bid for afterhours park and parking structure patrols is $969,315.74.

The agreement is for four years and proposed a total not-to-exceed amount of $1,027,732.51. This amount includes a 10 percent contingency on only the security services provided for afterhours park patrol. The contingency amount is $58,416.77 and will be used in the event that the City requires additional park security needs. The patrol services for the Old Town West Metrolink Parking Structure does not have a contingency.

The total expenditure will be funded through General Fund (100). The annual cost for the first year of the agreement is $154,745.84 for afterhours park patrol, including the contingency, and $92,768.40 for parking structure patrol, for a total of $247,514.24. Funding for the remaining three years of the agreement is dependent upon City Council approval of the annual budget through Fiscal Year 2027- 2028. If funds are not budgeted, the agreement can be terminated or reduced to meet that year’s allocation.

7. ATTACHMENTS
· Proposal Abstract Summary
· Agreement with Lyons Security Service, Inc.

City of Orange Page 2 of 2 Printed on 6/20/2024
powered by Legistar™643
1 Proposal Abstract Summary
City Park and Facilities Private Security Patrol
RFP 23-24.21
Date Advertised: 11/09/2023
Bid Due Date: 12/14/2024
A&A Security
Group
Alltech Industries,
Inc.

American Global
Security AMPM Patrol California PantherSecurity Citiguard Irvine ProtectSecurity Company/ Contractor
City (Location of
Company) Chatsworth, CA Monterey Park,CA Chatsworth, CA Winchester, CA Los Angeles, CA West Hills, CA Irvine, CA

AVERAGE
OVERALL SCORES 60 92 90 67 71 57 67
Proposal Amount
Total $ 792,780.00 $ 902,864.00 $ 1,199,828.00 $ 881,329.00 $ 2,242,960.00 $ 771,177.00 $ 899,052.50 (Continue to page 2)
644
2 Proposal Abstract Summary
City Park and Facilities Private Security Patrol
RFP 23-24.21
Date Advertised: 11/09/2023
Bid Due Date: 12/14/2024
Lyons Security
Services, Inc.

Kingdom
Security, Inc.

Proforce 1
Protection
Services
Ranger Global
Security
Santa Ana
Security Services
United Protective
Services
Vigilant Eye
Private Security Company/
Contractor
City (Location of
Company) Anaheim, CA San Diego, CA Anaheim, CA Temecula, CA Santa Ana, CA Hawthorn, CA Woodland Hills,CA

AVERAGE
OVERALL SCORES 95 61 51 55 61 63 63
Proposal Amount
Total $ 969,315.74 $ 868,700.00 $ 773,800.00 $ 772,985.24 $ 869,192.00 $ 880,204.00 $ 744,540.00 645
646
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649
650
651
652
653
654
655
656

CITY OF ORANGE
COMMUNITY SERVICES DEPARTMENT www.cityoforange.org PHONE: (714) 744-7274 FAX: (714) 744-7251

CITY PARKS AND FACILITIES PRIVATE SECURITY PATROL
REQUEST FOR PROPOSALS (RFP) NO. 23-24.21
PROPOSALS DUE: December 14, 2023
TIME: 2:00 PM
The documents contained in this Request for Proposals document are considered to be the invitation and not the full final representation of the documents needed to submit a successful response to the proposal described herein.

Interested proposers should subscribe to receive proposal updates and notifications via the City’s website at:
https://public.govdelivery.com/accounts/CACITYORANGE/subscriber/new as well as emailing [email protected] to be added to the contact list for this specific proposal list in order to receive emailed updates of any revised/additional information and addenda.

It is the responsibility of the interested proposer to request being added to the proposal list and to check the website frequently to look for any additional updates.

Project Name: City Parks and Facilities Private Security Patrol Location Address: Various City Parks and Facilities
Contact Name: Robert Ambriz, Jr., Parks and Facilities Manager E-Mail Address: [email protected]
Phone Number: 714-744-7283
DESCRIPTION:

The City of Orange, a Municipal Corporation, is requesting proposals from qualified contractors to provide security services at City of Orange parks and facilities (Attachments 1-6).

TIMELINE (APPROXIMATE):

1. Pre-Proposal Zoom meeting: November 28, 2023 at 10:00AM

2. Deadline for questions: November 30, 2023 at 2:00PM

3. Proposals due: December 14, 2023 at 2:00PM

4. Presentation to City Council: March 12, 2024

5. Notice to Proceed: TBD
657
PROPOSAL SUBMISSION AND QUESTIONS:

Provide response to the above RFP on attached Proposal Sheet and return all pages of the RFP (including the scope and specification sections) and references.

Please email any questions you may have to Robert Ambriz, Jr., Parks & Facilities Manager at [email protected] and [email protected] on or before Thursday, November 30 by 2:00 PM.

Please respond to the Request for Proposal by returning all pages for the RFP, addenda (if applicable), and references. Please provide three copies of your proposal at time of submission. Please note that three copies of the Proposal Cost Sheet should be submitted in a separate sealed envelope. All pages in the RFP shall be submitted in an enclosed, sealed envelope, showing the proposal number. in the upper left corner, and addressed to the City of Orange. Proposals must be signed by an individual (or individuals) authorized to execute legal documents on behalf of the applicant. Faxed or e-mailed proposals are not acceptable and will not be considered. Proposals received after the December 14, 2023 deadline will not be considered.

Proposals must be received by December 14, 2023 no later than 2:00 PM at the City of Orange City Clerk’s Office (300 E. Chapman Ave., Orange, CA 92866). Responses may be sent via U.S.

Mail or delivered personally to the above address.

PROPOSAL PACKETS MUST BE LABELLED APPROPRIATELY:

RFP 23-24.21 – CITY PARKS AND FACILITIES PRIVATE SECURITY PATROL Attn: City of Orange, City Clerk’s Office
The City reserves the right to reject any and all Proposals and any item or items therein, and to waive any non-conformity of Proposals with this Request for Proposals, whether of a technical or substantive nature, as the interest of the City may require.

GENERAL PROVISIONS:

1. A pre-proposal zoom meeting has been scheduled for November 28, 2023, at 10:00AM.

To join the zoom meeting please use the link below;
• Zoom Link: https://us06web.zoom.us/j/85084425072?pwd=LFlDq2Xb7qXMtSoZRyadycHDnaaasy.1 • Meeting ID: 850 8442 5072
• Passcode: 750611

2. Contractor shall, at all times, carry valid insurance, which meets all City of Orange insurance requirements as outlined in Attachment No. 1.

3. All work shall conform to the specifications contained in the RFP and any subsequent agreements.

4. CONTRACTOR’S COMMITMENT OF AVAILABILTY OF SERVICE: The individual signature on the proposal must be authorized to sign for and obligate the contractor for the proposed services. Once a proposal is opened, a Contractor is otherwise expected to maintain an availability of service as set forth in its proposal for Park Security Services as outlined in this RFP.
658

5. SPECIFICATIONS AND CONTRACTUAL: Nothing contained in this RFP shall create any contractual relationship between the Contractor and the City. The City accepts no financial responsibility for costs incurred by any Contractor regarding this RFP.

6. COMPLIANCE WITH EQUAL EMPLOYMENT OPPORTUNITY REGULATIONS: The City of Orange is an equal opportunity contractor. Qualified companies owned by women, minorities and disabled persons are encouraged to apply.

7. NOTICE REGARDING DISCLOSURE OF CONTENTS OF DOCUMENT: All responses to this RFP accepted by the City shall become the exclusive property of the City. Upon opening, all proposals accepted by the City shall become a matter of public record and shall be regarded as public, with the exception of those elements of each proposal which are identified by the Contractor as business or trade secrets and plainly marked as "trade secret", "confidential" or "proprietary". Each element of a proposal, which a Contractor desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e., regarding entire pages, documents, or other non-specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required under the California Public Records Act or otherwise by law (despite the proposer's request for confidentiality), the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof.

8. ORAL STATEMENTS: The City of Orange is not responsible for oral statements made by any of their employees or agents concerning this RFP. If a proposer requires specific information, it must request that it be supplied in writing by the City of Orange.

9. All vehicles used by the contractor are to be identified with door signs (approx. 20” x 16”, magnetic sign okay) or equivalent with the company name and phone number. These need to be visible from both sides of said vehicle.

10. Uniforms: All of contractor’s employees shall wear appropriate uniforms at all times while on duty. Uniforms must have the contractor’s name.

11. Background/Security: All personnel engaged in performance of this work shall be employees of the contractor and as such shall be warranted to possess sufficient experience and security records to perform this work.

SCOPE OF SERVICES:
• The Scopes of Services described in Attachments No. 2-6 of this RFP generally includes the assignment of Patrol Guards according to a pre-determined schedule, seven nights a week, including holidays. Schedules may vary at the discretion of the City Representative. The attached scopes of service are split between two City departments, Community Services and Public Works.
• Patrol areas will include multiple locations throughout City of Orange parks and facilities and will include checking and securing doors and windows, enforcing park hours and other park regulations, logging all incidents and contact with park patrons, and calling the Orange Police Department as needed for assistance in gaining compliance. See Attachments for a more detailed description of the Scope of Services.
• Contractors are advised to make themselves familiar with City of Orange parks and facilities prior to submitting a proposal. Attachments No. 4 and 6 are a listing of the City of Orange parks and facilities, which may potentially be included under this contract. There will be no job walk of the sites.
659
QUALIFICATIONS OF PROPOSERS:

Contractor shall have at least 5 years of municipal park security services experience serving a park system with no less than 15 parks and facilities.

Each proposer must satisfy the City of its ability to perform the services required, as set forth in the Scope of Work as described within this RFP. All proposers must demonstrate and document a history of timely and satisfactory performance of similar work in a manner which addresses the stated evaluation criteria. Each proposer shall be entirely responsible for the accuracy of the information supplied concerning references.

It should be noted, however, that the contract will be awarded to the proposer deemed most qualified based upon the selection criteria, provided that such a proposer successfully meets all of the other criteria identified in this RFP. The City reserves the right to reject any and all proposals and any item or items therein, and to waive any non-conformity of proposals with this RFP, whether of a technical or substantive nature, as the interest of the City may require.

SIGNATURES ON PROPOSAL; PROOF OF AUTHORITY
a) If the proposal is submitted by a corporation, it must be signed on behalf of the corporation by the following combination of corporate officers: (i) the Chairman of the Board, the President or any Vice President, on the one hand, AND (ii) the Secretary, an Assistant Secretary, the Chief Financial Officer or an Assistant Treasurer, on the other hand. If the proposal is submitted by a corporation under the signature of only one corporate officer or representative or with a different combination of the foregoing corporate officers, it must be accompanied by the original of a Secretary’s Certificate, to which is attached a corporate resolution duly authorizing the named individual to execute the agreement on behalf of the corporation.
b) If the proposal is submitted by a sole proprietorship, the owner's signature is acceptable. c) If the proposal is submitted by a partnership, the signature of the managing general partner or the general partner(s) authorized to bind the partnership to such transactions must appear on the proposal.
d) If the proposal is submitted by a limited liability company and such company operates through officers, it must be signed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, AND any secretary, assistant secretary, the chief financial officers or any assistant treasurer. e) If the proposal is submitted by a limited liability company that operates through a manager or managers, it must be signed by at least two such managers or by one manager if the limited liability company operates with the existence of only one manager. f) Proposals may be rejected if the proper documentation is not provided. g) All proposals must be signed.

AWARD OF CONTRACT
The award of contract, if awarded, will be to the most qualified proposal that complies with all requirements of this RFP. The award of contract, if made, shall be made within ninety (90) days after the opening of the proposals.

Prior to the award of any work hereunder and before any work can commence, the City and the successful proposer will enter into a written contract substantially in the form (a sample contract is 660 available on the City of Orange website or upon request) with such changes therein as the City’s Attorney may deem necessary and appropriate. Proposers responding to this RFP are strongly advised to review all of the terms and conditions of the sample contract and will be held to comply with all such terms and conditions.

TERM OF CONTRACT:

The initial term of the contract to be awarded pursuant to this solicitation for proposals will be four (4) years, commencing July 1, 2024, and expiring on June 30, 2028 (the “Expiration Date”).

SPECIAL INSTRUCTIONS:

The Successful firm is to include within this request for proposal the following:

1. A cover letter that conforms to the following:
a. Signed by a person authorized to bind the firm contractually b. Provides the name, title address, and telephone number of the individual to whom correspondence and other contacts should be directed during the firm’s selection process.
c. Provides the name, title, address, and telephone number of the individual who is authorized to contractually bind the firm.

2. Firm Information:
a. Legal name of firm and type of organization.
b. All professional license numbers.
c. Firm location(s) and phone number(s).
d. Date firm established.
e. Number of employees.

3. The Contractor shall provide with this RFP a minimum of three (3) references of commensurate/equal work with cities and/or municipalities. References shall represent/include:
• Work completed within the last five (5) years.
• A description and location of said work.
• An approximate cost of said work.
• A contact person and phone number to verify work.

4. The Contractor is to provide a list of their company’s observed holidays.

5. The City reserves the right to reject any contractor who they feel does not meet a qualifying work experience or satisfying references.

6. The City reserves the right to reject at any time any or all proposals, or parts thereof, and to waive any variances, technicalities and informalities which do not impair the quality, or performance of the project.

SELECTION CRITERIA:

Evaluation of the proposals shall be based on a competitive selection process. Fiscal responsibility is a priority for the City. However, the evaluation of proposals will not be limited to price alone. The City will select the proposer deemed most qualified based on demonstrated competence, experience, references, and value for services to be performed. The City also reserves the privilege of interviewing the top candidates.

The successful proposal will demonstrate experience in providing security services as described within this RFP. While the experience and resources of the successful contractor are important, it is critical that the manager proposed for overall authority of the service agreement have extensive relevant experience and capability. The contractor’s service manager will work effectively with City staff and complete assigned tasks within budget and within the service schedule.

The following criteria shall be used in selecting the contractor ultimately chosen for this project: 661 A. Contractor experience, including but not limited to licensing, insurance, qualifications and capacity of the contractor’s employees, key personnel and the ability to provide the necessary equipment needed to provide the work as described within this RFP.

B. Demonstrated record of success by the contractor on similar work previously performed for the City and/or other municipalities or enterprises. Past performance with other municipalities/enterprises will be taken into consideration when evaluating the proposal.

C. Contractor’s responsiveness to the overall request for information within this RFP.

Based on the information submitted, the selection committee will make a final choice; the successful contractor will execute an agreement with the City of Orange for the completion of this work. An interview may be required with the top scoring contractors. The City of Orange reserves the right to negotiate cost of work within the Request for Proposal.

The City reserves the right to revise this RFP prior to the date the proposals are due. Revisions to the RFP will be sent to all known participants. The City reserves the right to procure or contract for work. All proposals submitted in response to this RFP become the property of the City and are public record. The City reserves the right to delay or cancel, in part or in its entirety, this RFP including, but not limited to: selection schedule, submittal date, and submittal requirements. All known participants shall be notified of any cancellation or revisions prior to the submittal date. The City also reserves the right to request additional information and clarifications regarding any proposals received.

Proposer must satisfy the City of its ability to perform the services required as stated herein. All proposers must demonstrate and document a history of timely and satisfactory performance of similar services in a manner, which addresses the stated evaluation criteria. Proposer shall be entirely responsible for the accuracy of the information provided concerning references. 662
RFP 23-24.21 City Parks and Facilities Private Security Patrol

PROPOSAL COST
SHEET
Date: ___________
Proposal Submitted by:

Company Name: _
Address: _
Phone Number:

E-mail Address:

Contact Name:

Signature of Responsible Officer or Employee Print Name COST PROPOSAL: Hourly rates shall include all profit, overhead, and related costs of service.

Year 1 Year 2 Year 3 Year 4
Community Services Department – Parks and Facilities
Hourly Rate per Guard (Day
Shift)
Hourly Rate Per Guard (Night
Shift)
Hourly Rate per Guard
(Holidays- Day Shift)
Hourly Rate per Guard
(Holidays- Night Shift)
Annual Cost for 2 Guards 6
hrs. per night 365 days per
year
Annual Cost for 1 Guard at
the HRC During Operating
Hours (See Attachment 3)
List Day Shift Hours (From: _______________ to ________________) List Night Shift Hours (From: _______________ to ________________) Public Works Department – Old Town West Metrolink Parking Structure Option 1 – 4 hours (1 guard)
Option 2 – 6 hours (1 guard)
Option 3 – 8 hours (1 guard)
663
List Day Shift Hours (From: _______________ to ________________) List Night Shift Hours (From: _______________ to ________________)

NAME AND TITLE OF AUTHORIZED SIGNATORY
Name___________________________________________________________________ Title____________________________________________________________________ Signature ____________________________________________________ Date__________________________________________
664

LIST OF SUBCONTRACTS
A. The undersigned intends to subcontract a portion of this project to the following subcontracts (Note: Refer to Section 2.3 of the Standard Specifications and Section 4100 through 4113 of the California Contract Code for SUBCONTRACT DISCLOSURE REQUIREMENTS.

NAME OF SUBCONTRACTOR LICENSE PROPOSAL ITEM
NUMBER(s)
PERCENT OF CHECK IF DESCRIBE WORK WHEN $ AMOUNT
AND ADDRESS NO. PROPOSAL
ITEM
SUBBED
SPECIALITY LESS THAN 100% OF
WORK

IS SUBBED

BASED ON

PROPOSAL
AMOUNT
$
B. The undersigned DOES NOT INTEND to subcontract any portion of this project.

NOTE: The proposer shall check Box A or B as applicable. If the proposer does not check either box, it will be deemed that he has checked Box B.

Signature of the Proposer
665

PUBLIC CONTRACT CODE
Public Contract Code Section 10285.1 Statement
In conformance with Public Contract Code Section 10285.1 (Chapter 376, Stats. 1985), the bidder hereby declares under penalty of perjury under the laws of the State of California that the bidder has convicted
, has not been
within the preceding three years of any offenses referred to in that section, including any charge of fraud, bribery, collusion, conspiracy, or any other act in violation of any state or Federal antitrust law in connection with the bidding upon, award of, or performance of, any public works contract, as defined in Public Contract Code Section 1101, with any public entity, as defined in Public Contract Code Section 1100, including the Regents of the University of California or the Trustees of the California State University. The term "bidder" is understood to include any partner, member, officer, director, responsible managing officer, or responsible managing employee thereof, as referred to in Section 10285.1.

Note: The bidder must place a check mark after "has" or "has not" in one of the blank spaces provided. The above Statement is part of the Bid. Signing this Bid on the signature portion thereof shall also constitute signature of this Statement. Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

Public Contract Code Section 10162 Questionnaire
In conformance with Public Contract Code Section 10162, the Bidder shall complete, under penalty of perjury, the following questionnaire:

Has the bidder, any officer of the bidder, or any employee of the bidder who has a proprietary interest in the bidder, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation? Yes No
If the answer is yes, explain the circumstances in the following space.

Public Contract Code 10232 Statement
In conformance with Public Contract Code Section 10232, the Contractor, hereby states under penalty of perjury, that no more than one final unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two year period because of the Contractor's failure to comply with an order of a federal court which orders the Contractor to comply with an order of the National Labor Relations Board.

Note: The above Statement and Questionnaire are part of the Bid. Signing this Bid on the signature portion thereof shall also constitute signature of this Statement and Questionnaire. Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution. 666
Non-collusion Affidavit
(Title 23 United States Code Section 112 and
Public Contract Code Section
7106)
To the CITY OF ORANGE – DEPARTMENT OF COMMUNITY

SERVICES
In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the bidder declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

Note: The above Non-collusion Affidavit is part of the Bid. Signing this Bid on the signature portion thereof shall also constitute signature of this Non- collusion Affidavit.

Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.
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DEBARMENT AND SUSPENSION CERTIFICATION
TITLE 49, CODE OF FEDERAL REGULATIONS,
PART 29
The bidder, under penalty of perjury, certifies that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, manager:
• is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal agency;
• has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal agency within the past 3 years;
• does not have a proposed debarment pending; and
• has not been indicted, convicted, or had a civil judgement rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past 3 years.

If there are any exceptions to this certification, insert the exceptions in the following space.

Exceptions will not necessarily result in denial of award, but will be considered in determining bidder responsibility. For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.

Notes:Providing false information may result in criminal prosecution or administrative sanctions.

The above certification is part of the Bid. Signing this Bid on the signature portion thereof shall also constitute signature of this Certification.
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The undersigned bidder hereby represents as follows:

That no Councilman, officer, agent, or employee of the City of Orange, is personally interested, directly or indirectly, in the Contract, or the compensation to be paid hereunder:

That this bid is made without connection with any person, firm or corporation making a bid for the same work, and is in all respects fair, and without collusion or fraud.

By my signature on this bid I certify, under penalty of perjury under the laws of the State of California, that the foregoing questionnaire and statements of Public Contract Code Sections 10162, 10232 and 10285.1 are true and correct and that the bidder has complied with the requirements of Section 8103 of the Fair Employment and Housing Commission Regulations (Chapter 5, Title 2 of the California Administrative Code). By my signature on this bid I further certify, under penalty of perjury under the laws of the State of California and the United States of America, that the Noncollusion Affidavit required by Title 23 United States Code, Section 112 and Public Contract Code Section 7106; and the Title 49 Code of Federal Regulations, Part 29 Debarment and Suspension Certification are true and correct.

Date:

Signature and Title of Bidder
(If an individual, so state. If a firm or co-partnership, state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, also names of President, Secretary, Treasurer and Manager thereof).

NAME OF BIDDER
BUSINESS P.O. BOX

CITY, STATE, ZIP

BUSINESS STREET ADDRESS
(Please include even if P.O. Box is used)

CITY, STATE, ZIP
PLACE OF BUSINESS (Include City & State)
PLACE OF RESIDENCE (Include City & State)
Telephone No. ( ) Fax No. ( )
Licensed in accordance with an Act providing for the registration of Contractors.

LICENSE NUMBER

LICENSE CLASS
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Attachment 1:

City Parks and Facilities Private Security Patrol
Sample Liability Insurance
Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence Form CG 00 01).

2. Insurance Services Office Form Number CA 00 01 covering Automobile Liability, code 1 (any auto).

3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.

Contractor shall maintain limits no less than:

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

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: As required by the State of California.

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

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

Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:
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1. The City, its officers, officials, agents and employees are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work or operations. General Liability coverage shall be provided in the form of an Additional Insured Endorsement (Insurance Services Office, Inc. Form CG 20 10 11 85 or such other form as may be acceptable to the City) to the Contractor’s insurance policy, or as a separate owner’s policy.

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, officials and employees. Any insurance or selfinsurance maintained by the City, its officers, officials and employees shall be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice has been provided to the City
The Contractor shall furnish the City with original certificates of insurance and endorsements effecting coverage required by this clause. The endorsements should be on forms acceptable to City. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

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

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

Contractor hereby agrees to waive subrogation, which any insurer of the Contractor may acquire from the Contractor by virtue of the payment of any loss. The Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.

The Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.
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ATTACHMENT 2
City of Orange Community Services Department
Parks and Facilities Security Patrol
AND
City of Orange Public Works Department
for Security Patrol at the Old Towne West Metrolink Parking Structure Scope of Work
Both the Community Services Department and the Public Works Department require the following Scope of Work:
1) All personnel engaged in performance of this work shall be employees of the contractor and as such shall be warranted to possess sufficient experience and security records to perform this work at public facilities. Contractor is responsible for conducting sufficient background checks before commencing work under this agreement, to ensure no employees performing work in the City of Orange on behalf of the contractor, are listed on the National Sex Offender Public Registry (NSOPR). Contractor shall monitor employee security records to ensure no existing or new employees performing work under this agreement are added to the NSOPR or convicted of any crimes that would disqualify them from adhering to conduct conducive to public safety.
2) Contractor may be asked to provide additional patrol guards on an as-needed basis to provide security at City facilities during public use, including activities and events which include the serving and consumption of alcohol. In instances where alcohol is served, the contractor will ensure a minimum of two guards per shift (example: Senior Center facility rentals). 3) The City reserves the right to adjust service times and quantity of assigned patrol guards on holidays or any days otherwise specifically requested.
4) The City reserves the right to change the location of the patrol to other City Parks and facilities in the future if patrols are warranted in those locations. 5) Assigned patrol guards will be clearly visible to park patrons at all times while on foot patrol. 6) Assigned patrol guards shall arrive fully uniformed in approved uniform provided by contractor, prior to arriving on site. Uniforms must have the contractor’s name. A photo ID Badge is to be worn at all times.
7) Assigned patrol guards will not be armed.
8) Patrol guards shall be able to communicate clearly in English. 9) Assigned patrol guards shall act as "ambassadors" for the City, educating patrons on current park rules and regulations and requesting compliance.
10) Patrol guards shall monitor parks and facilities use for compliance with all posted rules and ordinances, asking patrons to comply. In the event there continues to be a lack of compliance, 672
patrol guards shall contact the Orange Police Department (OPD) to address situations that they cannot handle, or to gain compliance.
11) In particular, patrol guards are expected to check that restrooms are locked and vacant and patrol continually to deter vandalism, theft, illegal activities, noise ordinance violations, parking violations, non-approved use of the park, break-ins to the site facilities, and loitering in the park after the park is closed.
12) Patrol guards shall not have the ability to issue citations on behalf of the City. 13) Assigned patrol guards will provide an electronic log to the City on a daily basis (Attachment 4), outlining type of encounter (including number of patrons, if applicable), description of encounter, location of encounter, abandoned vehicles, abandoned property, notable occurrences, and any contact with OPD. Photos must also be provided if needed for accurate documentation.
14) Assigned patrol guards shall immediately report any health and safety issues to the designated City representative via e-mail, by 8:00 a.m. the following morning. For emergency situations, patrol guards should immediately contact OPD dispatch. For non-emergency maintenance issues, the patrol guards will contact the Parks & Facilities Manager or designee.
15) For emergency contact and tracking purposes, all patrol guards assigned by contractor shall be reachable by City staff via cell phone or radio at any point in time during a patrol shift.

Contractor shall provide such equipment at its sole expense and responsibility. 16) Contractor must provide the City with a 24-hour point of contact to resolve scheduling issues or no-shows.
17) Supervision of on-site patrol guards must be provided by contractor’s management staff on a weekly basis through sporadic checks of patrol guard staff during assigned shifts.

Management to report to City representative when these checks have occurred, any issues identified, and any resolution implemented, as necessary. 18) Contractor shall work continuously with the City representative to improve or modify the schedules, service model, and reporting protocols as needed. 19) Contractor shall notify the City 24 hours in advance if patrol guards are unavailable to cover scheduled shifts.
20) Contractor shall be available to attend monthly meetings with City staff. 21) City reserves the right to request for any guard to be removed from the City of Orange park security schedule.
22) All vehicles used by the patrol guards and supervisors employed by the contractor are to be identified with door signs (approx. 20” x 16”, magnetic sign is acceptable) or equivalent with the company name and phone number. These need to be visible from both sides of said vehicle.
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Attachment 3
City of Orange Community Services Department
Parks and Facilities Private Security Patrol
Specific Scope of Work
1) On a nightly basis (from 10 p.m. to 5 a.m.), contractor will assign two patrol guards per shift (each with their own route) to provide security services at the designated City of Orange (City) parks or facilities, per the approved schedule. The patrols will be seven nights per week, 365/days of the year. Schedules will be submitted by contractor to the City on a monthly basis, no later than five working days before the start of the following month. 2)
Monday through Friday, from 9 am to 3 pm and Saturday 9 am to 1 pm, the contractor will assign one patrol guard per shift to the HUB Resource Center (HRC) located at 517 W. Struck Ave., Orange, CA 92867. The Contractor may work with City staff and/or the operator at the HRC to determine an approved schedule. Schedules will be submitted to the City and to the HRC on a monthly basis, no later than five working days before the start of the following month. HRC staff may request certain guards at any time.
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Attachment 4
Orange Park System Inventory
Park Location
Developed
Acres
Undeveloped Open
Space Acres
Total
Acres Park/Facility Hrs.
1 Belmont Park 4536 E. Via Escola Ave. 2.10 2.10 5:00AM - 11:00PM 2 Cerro Villa Park 5850 Crest de Ville 26.60 26.60 N/A
3 Eisenhower Park 2864 N. Tustin Ave. 19.77 19.77 5:00AM - 11:00PM 4 El Camino Real Park 400 N. Main St. 19.75 19.75 5:00AM - 11:00PM 5 El Modena Park 555 S. Hewes St. 8.38 8.38 5:00AM - 11:00PM 6 El Modena Basin 4343 E. Jordan Ave. 11.81 11.81 Dawn to Dusk 7 Fred Barrera Park 8380 East Serrano Ave. 3.18 3.18 5:00AM - 11:00PM 8 Grijalva Park at Santiago
Creek 368 N. Prospect Ave. A 14.63 14.63 5:00AM - 11:00PM Grijalva Sports Center 368 N. Prospect Ave. B 17.58 10.00 27.58 5:00AM - 11:00PM 9 Handy Park 2143 E. Oakmont Ave. 7.59 7.59 5:00AM - 11:00PM 10 Hart Park 701 S. Glassell St. 35.29 20.87 56.16 5:00AM - 11:00PM 11 Killefer Park 615 N. Lemon St. 6.19 6.19 Dawn to Dusk 12 La Veta Park 3705 E. La Veta Ave. 3.04 3.04 5:00AM - 11:00PM 13 McPherson Athletic Facility 333 S. Prospect Ave. 11.75 11.75 3:30PM - Dusk when school is in session.
7:00AM to Dusk when not in session
14 Olive Park 2841 N. Glassell St. 7.38 7.38 5:00AM - 11:00PM 15 Pitcher Park 204 S. Cambridge Ave. 0.52 0.52 5:00AM - 10:00PM 16 Plaza Park
Plaza Circle at Glassell
St. and Chapman Ave. 0.58 0.58 5:00AM - 11:00PM
17 Santiago Hills Park
8040 E. White Oak
Ridge 9.28 9.28 5:00AM - 11:00PM
18 Serrano Park 2349 Apache Creek Dr. 4.33 4.33 5:00AM - 11:00PM 19 Shaffer Park 1930 N. Shaffer St. 8.62 8.62 5:00AM - 11:00PM 20 Steve Ambriz Memorial Park 610 Riverbend Parkway 10.49 10.49 5:00AM - 11:00PM 21 Veterans Memorial at Depot
Park 100 N. Atchinson St. 1.59 1.59 5:00AM - 11:00PM
22 Yorba Park 190 S. Yorba Street 12.86 12.86 7:00AM - Dusk TOTALS 216.71 57.47 274.18
Other
1 Orange Senior Center 170 S. Olive St. N/A N/A Various 2 The HUB Resource Center 517 W. Struck Ave. N/A N/A M-F 9 am – 3 pm; Sat 9 am – 1 pm 3 Old Town West Metrolink
Parking Structure 130 N. Lemon St. N/A N/A Monday-Sunday – 4am to midnight Trails
1 Santiago Creek Bike Trail
SR 22 to Cannon St.

Staging Area 6 mi. 3 acres right-of way Dawn to Dusk
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Attachment 5
Sample Report Log
City Parks and Facilities Private Security Patrol
City of Orange Parks Security Log
Officer Name:

Date:

Park
Location
Date Time Name of Patrol
Guard
Type of Encounter Description of
Encounter
Number of
Patrons
Was OPD
contacted?
Was
compliance
achieved?
Photos
Hart Park 9-1-
2023
11:15
p.m.

John Doe Patron in Vehicle Couple sitting in car
near Glassell bridge
2 No Yes Image
El Camino
Real Park
9-1-
2023
12:28
a.m.

Jane Smith Patron in Park Group of patrons near
handball courts
4 No Yes Image
Eisenhower
Park
9-1-
2023
1:09
a.m.

Jim Doe Abandoned
Property
Cart full of personal
belongings was found at
the large picnic table
area.
n/a n/a n/a Image
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ATTACHMENT 6
City of Orange Public Works Department
for Private Security Patrol at the Old Towne West Metrolink Parking Structure Specific Scope of Work
1) The City typically requests one designated guard to provide security services at the City’s designated Old Towne West Metrolink Parking Structure (Parking Structure, located at 130 N. Lemon St., Orange), seven nights per week (including holidays) during parking structure closure hours. Parking Structure closes to the public from 12:00 a.m. to 4:00 a.m. on a daily basis.
o Patrol hours option 1: 4 hours
o Patrol hours option 2: 6 hours
o Patrol hours option 3: 8 hours
City reserves the right to adjust each option during the duration of the contract to meet the needs of the parking structure.
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CITY OF ORANGE
COMMUNITY SERVICES DEPARTMENT www.cityoforange.org PHONE: (714) 744-7274 • FAX: (714) 744-7251 COMMUNITY SERVICES DEPARTMENT • 230 E. CHAPMAN AVENUE • ORANGE, CA 92866 ADDENDUM No. 1
FOR
Request for Proposal (RFP)
Bid No. 23-24.21

CITY PARKS AND FACILITIES

PRIVATE SECURITY PATROL
DECEMBER 5, 2023
This addendum serves as written notice of the following corrections, clarifications, additions and/or deletions to any and all copies of the Request for Bid (Bid No. 22-23.23).

Questions

1. How many patrol vehicles are required?
Two. One for each patrol guard. Per Attachment 3 in the RFP, on a nightly basis (from 10 p.m. to 5 a.m.), contractor will assign two patrol guards per shift (each with their own route) to provide security services at the designated City of Orange parks or facilities.

2. Is there a specific model type preference for the company vehicle? No. The specific type of vehicle is not outlined in the RFP, but all vehicles used to provide security services must adhere to the guidelines in Attachment 2 of RFP.

3. Will the city grant parking access for the patrol cars to be stationed while they are not in operating hours?
No. Parking access for patrol cars during non-operating hours will not be provided by the City.
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