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Agenda packet

Orange City Council
August 26, 2025

Document
Agenda packet
Meeting
August 26, 2025
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Orange City Council
Pages
42
Original file
154.6 MB
Text extracted from the city's file for reading and search. Open the original on cityoforange.legistar.com. That file is the official record.

ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 Section 1725.5. Registration of contractors; mandatory registration; qualifications and application; fees; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract that is subject to the requirements of this chapter. For the purposes of this section, “contractor” includes a subcontractor as defined by Section 1722.1. (a) To qualify for registration under this section, a contractor shall do all of the following:
(1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and pay an initial nonrefundable application fee of four hundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal fees may be adjusted no more than annually by the director to support the costs specified in Section 1771.3. (B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual increments up to three years from the date of registration. Contractors who wish to do so will be required to prepay the applicable nonrefundable application or renewal fees to qualify for the number of years for which they wish to preregister.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' compensation coverage that meets the requirements of Division 4 (commencing with Section 3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is subject to prevailing wage requirements other than a contractor who is separately registered under this section.

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

Section 1771. Payment of general prevailing rate
Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. 166
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Section 1771.1. Registration as a contractor or subcontractor required prior to bid submission; exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall be included in all bid invitations and public works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5. (c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in place of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to perform public work pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shall be subject to cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the failure of the awarding body, contractor, or any subcontractor to comply with the requirements of Section 1725.5 or this section.
(g) If the Labor Commissioner or his or her designee determines that a contractor or subcontractor engaged in the performance of any public work contract without having been registered in accordance with this section, the contractor or subcontractor shall forfeit, as a civil penalty to the state, one hundred dollars ($100) for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher tiered public works contractor or subcontractor who is found to have entered into a subcontract with an unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section 1725.5 or this section shall be subject to forfeiture, as a civil penalty to the state, of one hundred dollars ($100) 167
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for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000). (2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentional and did not hinder the Labor Commissioner's ability to monitor and enforce compliance with the requirements of this chapter. (3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section 1725.5 due to the revocation of a previously approved registration. (4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcontractor pursuant to paragraph (1). A higher tiered public works contractor or subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742. The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770), shall apply. (j)(1) Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Section 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.
(2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
(A) Manual delivery of the order to the contractor or subcontractor personally. (B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by first class mail, postage prepaid to the contractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 168
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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed 10 days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.
(l) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for public work entered into on or after April 1, 2015. This section shall also apply to the performance of any public work, as defined in this chapter, on or after January 1, 2018, regardless of when the contract for public work was entered.
(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (n) This section shall not apply to work performed on a public works project of twenty-five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771.4. Additional requirements when bidding and awarding public works contracts (a) All of the following are applicable to all public works projects that are otherwise subject to the requirements of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. (2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by regulation.
(3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor Commissioner, in the following manner:
(A) At least monthly or more frequently if specified in the contract with the awarding body. (B) In a format prescribed by the Labor Commissioner.
(4) If the contractor or subcontractor is not registered pursuant to Section 1725.5 and is performing work on a project for which registration is not required because of subdivision (f) of Section 1725.5, the unregistered contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the Labor Commissioner but shall retain the records specified in Section 1776for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
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(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing work on the project and that includes a mechanism for resolving disputes about the payment of wages. (c) The requirements of paragraph (1) of subdivision (a) shall only apply to contracts for public works projects awarded on or after January 1, 2015.
(d) The requirements of paragraph (3) of subdivision (a) shall apply to all contracts for public work, whether new or ongoing, on or after January 1, 2016.

Section 1775. Penalties for violations
(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
(B)(i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor 170
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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.

Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules (a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project. 171
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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.

The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labormanagement committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 172
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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.

Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program (a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or undergo testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written 173
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apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, if requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a subcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 174
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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1-to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002-03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Industrial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
175
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used solely for training apprentices. For purposes of this subparagraph, adequate records include, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate the process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.

Section 1813. Forfeiture for violations; contract stipulation; report of violations The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of 176
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the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract, and shall report them to the Division of Labor Standards Enforcement.

Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 ½ times the basic rate of pay.
177
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ATTACHMENT NO. 2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017) (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 178
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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 179
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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 180
1 2 3
Bid No. 24-25.23; Project No. SP-3880
Date of Bid Opening: 7/24/2025
Date of Bid Advertisement: 6/19/2025
Tel. No. 949-252-0441 Tel. No. 707-746-8028 Tel. No. 916-283-9950 NO. DESCRIPTION OF WORK QUANTITY UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Remove Concrete Bridge Deck
Surface 27,200 SF $ 33.00 $897,600.00 $3.00 $81,600.00 $3.00 $81,600.00 $2.50 $68,000.00 2 Remove Unsound Concrete
1,387 SF $ 38.00 $52,706.00 $95.00 $131,765.00 $80.00 $110,960.00 $115.00 $159,505.00 3 Furnish and Place Polyester
Concrete Overlay 27,200 SF $ 33.00 $897,600.00 $23.00 $625,600.00 $30.00 $816,000.00 $36.00 $979,200.00 4 Rapid Setting Concrete (Patch) 1,387 SF $ 37.00 $51,319.00 $85.00 $117,895.00 $20.00 $27,740.00 $85.00 $117,895.00 5 Prepare Concrete Bridge Deck
Surface 193,400 SF $ 0.35 $67,690.00 $0.36 $69,624.00 $1.00 $193,400.00 $0.50 $96,700.00 6 Furnish and Treat Bridge Deck
193,400 SF $ 2.00 $386,800.00 $1.20 $232,080.00 $2.50 $483,500.00 $3.00 $580,200.00 7 Clean Expansion Joint Seal
Conforming to the Details Shown on
the Plans and State Standard
Specifications
532 LF $ 49.00 $26,068.00 $36.00 $19,152.00 $59.00 $31,388.00 $59.00 $31,388.00 8 Repair Transverse Joint Seal (Mr1")
Conforming to the Details Shown an
the Plans and State Standard
Specifications
532 LF $ 66.00 $35,112.00 $100.00 $53,200.00 $178.00 $94,696.00 $178.00 $94,696.00 9 Repair Longitudinal Joint Seal (TypeAl-Mr 1") Conforming to the Details Shown on the Plans and State
Standard Specifications
2,050 LF $ 49.00 $100,450.00 $50.00 $102,500.00 $82.00 $168,100.00 $82.00 $168,100.00 10 Sawcut and Remove Existing and
Construct Curb and Gutter, Type A8,
Per City Std. Plan No. 117
170 LF $ 57.00 $9,690.00 $200.00 $34,000.00 $100.00 $17,000.00 $225.00 $38,250.00 11 Remove Existing and Construct
Concrete Sidewalk per City Std. Plan
No. 118 and 120
675 SF $ 90.00 $60,750.00 $50.00 $33,750.00 $25.00 $16,875.00 $125.00 $84,375.00 12 Reconstruct Metal Guardrail 10 LF $ 165.00 $1,650.00 $525.00 $5,250.00 $700.00 $7,000.00 $1,000.00 $10,000.00 13 Remove and Replace Asphalt
Concrete Surfacing 125 Tons $ 354.00 $44,250.00 $1,600.00 $200,000.00 $1,250.00 $156,250.00 $1,122.00 $140,250.00 14 Miscellaneous Work Including Rip
Rap Repair, Soffit Slab Opening
Repair, Spalling Repair, Hinge plate,
Bridge Railing Repair per Details
Shown on the Plans and State
Standard Specs
LS 1 $ 32,000.00 $32,000.00 $385,000.00 $385,000.00 $125,000.00 $125,000.00 $215,000.00 $215,000.00 15 Public Safety Plan LS 1 $ 50,000.00 $50,000.00 $35,000.00 $35,000.00 $15,491.00 $15,491.00 $35,000.00 $35,000.00 16 Traffic Control and Construction
Phasing LS 1 $ 300,000.00 $300,000.00 $485,000.00 $485,000.00 $580,000.00 $580,000.00 $607,000.00 $607,000.00 17 Inventory and Install Pavement
Striping, Legends, Pavement
Markings and Rpm’S (Thermoplastic) LS 1 $ 150,000.00 $150,000.00 $60,000.00 $60,000.00 $10,000.00 $10,000.00 $150,000.00 $150,000.00 18 Environmental Compliance
Measures LS 1 $ 40,000.00 $40,000.00 $25,000.00 $25,000.00 $75,000.00 $75,000.00 $100,000.00 $100,000.00 $3,203,685.00 $2,696,416.00 $3,010,000.00 $3,675,559.00 City of Orange: Summary of Bid Abstracts for:

Grand Total

PAVEMENT IMPROVEMENTS

ENGINEER'S ESTIMATE
Bridge Preventive Maintenance/Repair
Peterson-Chase General
Engineering Construction,
American Civil Constructors
West Coast LLC Myers & Sons Construction LLC

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Agenda Item
City Council
Item #: 3.8. 8/26/2025 File #: 25-0476
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Approval of Final Tract Map No. 19253 for the Viewpoint Homes Project located at 901 E. Katella Avenue (formerly known as Intracorp Homes Project).

2. SUMMARY
Tract Map No. 19253 is a subdivision of 48 single-family small lot homes.

3. RECOMMENDED ACTION
Approve Final Tract Map No. 19253.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
On May 23, 2024, the City Council approved Resolution No. 11553 which includes Vesting Tentative Tract Map 0051-0293-23 located at 901 E. Katella Avenue. The proposed project involves the redevelopment of an existing 2.71-acre commercial site with 48 two-and three-story single-family small lot homes.

The Final Map for Tract 19253 conforms to the approved Tentative Tract Map. The Final Map also includes dedication of easements for streets, fire access, and utility purposes.

All required fees have been paid, and bonds have been posted to guarantee construction of on-site improvements, and off-site street improvements.

7. ATTACHMENTS
· Site Map
· Final Map of Tract 19253
City of Orange Page 1 of 1 Printed on 8/21/2025
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Agenda Item
City Council
Item #: 3.8. 8/26/2025 File #: 25-0476
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Approval of Final Tract Map No. 19253 for the Viewpoint Homes project located at 901 E. Katella Avenue (formerly known as Intracorp Homes project).

2. SUMMARY
Tract Map No. 19253 is a subdivision of 48 single-family small lot homes.

3. RECOMMENDED ACTION
Approve Final Tract Map No. 19253.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
On May 23, 2024, the City Council approved Resolution No. 11553 which includes Vesting Tentative Tract Map 0051-0293-23 located at 901 E. Katella Avenue. The proposed project involves the redevelopment of an existing 2.71-acre commercial site with 48 two-and three-story single-family small lot homes.

The Final Map for Tract 19253 conforms to the approved Tentative Tract Map. The Final Map also includes dedication of easements for streets, fire access, and utility purposes.

All required fees have been paid, and bonds have been posted to guarantee construction of on-site improvements, and off-site street improvements.

7. ATTACHMENTS
· Site Map
· Final Map of Tract 19253
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Agenda Item
City Council
Item #: 3.9. 8/26/2025 File #: 25-0467
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Quitclaim of Storm Drain Easement at 2013 North Batavia Street.

2. SUMMARY
Quitclaim of storm drain easement at 2013 North Batavia Street. The Santa Ana Valley Irrigation (SAVI) pipeline no longer exist within the easement and the easement is therefore not needed.

3. RECOMMENDED ACTION
Authorize the Mayor to execute a Quitclaim Deed of the storm drain easement to 2015 N. Batavia Street, LLC, a Nevada Limited Liability Company, at 2013 North Batavia Street (APN 374-651-08).

4. FISCAL IMPACT
None

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The Santa Ana Valley Irrigation (SAVI) Company was formed in 1877 to convey water to serve the farmers of Orange and surrounding communities. In 1975, the company was dissolved, and its interests were transferred to the City of Orange. There are approximately 54 miles of known SAVI pipelines in Orange. Most of the larger pipelines have been incorporated into the City’s storm drain system.

Staff reviewed the SAVI system and has determined the SAVI pipeline does not exist within the current easement at 2013 North Batavia Steet and the SAVI easement is no longer needed. The 2015 N. Batavia Street, LLC, has requested the vacation of the six-foot wide City SAVI storm drain easement on the south side and east side of the property for a proposed development.

Given that the SAVI storm drain easement is no longer needed, staff recommends approval of the Quitclaim Deed of the storm drain easement to 2015 N. Batavia, LLC at 2013 North Batavia Street.

7. ATTACHMENT
· Quitclaim Deed
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Item #: 3.9. 8/26/2025 File #: 25-0467
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Agenda Item
City Council
Item #: 3.9. 8/26/2025 File #: 25-0467
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Quitclaim of Storm Drain Easement at 2013 North Batavia Street.

2. SUMMARY
Quitclaim of storm drain easement at 2013 North Batavia Street. The Santa Ana Valley Irrigation (SAVI) pipeline no longer exist within the easement and the easement is therefore not needed.

3. RECOMMENDED ACTION
Authorize the Mayor to execute a Quitclaim Deed of the storm drain easement to 2015 N. Batavia Street, LLC, a Nevada Limited Liability Company, at 2013 North Batavia Street (APN 374-651-08).

4. FISCAL IMPACT
None

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The Santa Ana Valley Irrigation (SAVI) Company was formed in 1877 to convey water to serve the farmers of Orange and surrounding communities. In 1975, the company was dissolved, and its interests were transferred to the City of Orange. There are approximately 54 miles of known SAVI pipelines in Orange. Most of the larger pipelines have been incorporated into the City’s storm drain system.

Staff reviewed the SAVI system and has determined the SAVI pipeline does not exist within the current easement at 2013 North Batavia Steet and the SAVI easement is no longer needed. The 2015 N. Batavia Street, LLC, has requested the vacation of the six-foot wide City SAVI storm drain easement on the south side and east side of the property for a proposed development.

Given that the SAVI storm drain easement is no longer needed, staff recommends approval of the Quitclaim Deed of the storm drain easement to 2015 N. Batavia, LLC at 2013 North Batavia Street.

7. ATTACHMENT
· Quitclaim Deed
City of Orange Page 1 of 2 Printed on 8/21/2025
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Item #: 3.9. 8/26/2025 File #: 25-0467
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RECORDING REQUESTED BY AND
WHEN RECORDED, MAIL TO:

CITY OF ORANGE
c/o City Clerk
300 East Chapman Avenue
Orange, California 92666
MAIL TAX STATEMENTS TO: SPACE ABOVE THIS LINE FOR RECORDER'S USE SAME AS ABOVE DOCUMENTARY TRANSFER TAX $ EXEMPT-
REVENUE AND TAXATION CODE SECTION 11922

LOCATION: _________________________ City of Orange
2013 N Batavia St, Orange, CA 92865 Signature of Declarant or Agent Firm Name A.P.N. 374-651-08 Determining Tax
Exempt - Recording Requested Under Government Code 6103 & 27383

QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Orange, a municipal corporation, as successsor in interest to the Santa Ana Valley Irrigation COMPANY does hereby REMISE, RELEASE, AND FOREVER QUITCLAIM to 2015 N. BATAVIA STREET, LLC, A NEVADA LIMITED LIABILITY COMPANY, the real property in the CITY OF ORANGE, COUNTY OF ORANGE, STATE OF CALIFORNIA, described as:

SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A", SEE PLAT MAP ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT “B”.

DATED
STATE OF CALIFORNIA }
COUNTY OF ORANGE } CITY OF ORANGE,
a Municipal Corporation

BY:

Daniel R. Slater,
Mayor

R/W Deed # _____________________

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Agenda Item
City Council
Item #: 3.10. 8/26/2025 File #: 25-0447
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Memorandum of Understanding between the City of Orange and the Orange Management Association. Resolution No. 11632.

2. SUMMARY
Resolution No. 11632 establishes a Memorandum of Understanding between the City of Orange and the Orange Management Association for the period of July 1, 2025 through June 30, 2026.

3. RECOMMENDED ACTION
Adopt Resolution No. 11632. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11512 and approving the Memorandum of Understanding between the City of Orange and the Orange Management Association concerning wages, hours, and other conditions of employment effective July 1, 2025, through and including June 30, 2026.

4. FISCAL IMPACT
The total cost for this Memorandum of Understanding is approximately $158,200 and will be funded through various funds, with 50% to be covered by the General Fund.

5. STRATEGIC PLAN GOALS
Goal 4: Employee Retention and Recruitment

6. DISCUSSION AND BACKGROUND
In March 2025, the City began the collective bargaining process with the Orange Management Association (OMA). The current contract between the parties expired on June 30, 2025.

After nine meetings the parties reached agreement on the terms and conditions of a twelve-month labor contract that includes the following:

TERM July 1, 2025 - June 30, 2026
COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

VACATION Probationary employees accrue vacation
but may not use vacation until six months
of active service is complete.

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Item #: 3.10. 8/26/2025 File #: 25-0447
TERM July 1, 2025 - June 30, 2026
COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

VACATION Probationary employees accrue vacation
but may not use vacation until six months
of active service is complete.

HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to family coverage tier
by $100.00, to $2,210.00.

EDUCATIONAL ASSISTANCE AND

PROFESSIONAL DEVELOPMENT
Allow utilization of Educational
Reimbursement or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.

UNIFORM ALLOWANCE Increase Uniform Allowance for all
classifications receiving a clothing
reimbursement allowance from $150.00 to
$300.00 per fiscal year. Add Construction
Inspection Supervisor, Facilities
Maintenance Supervisor, Senior
Landscape Coordinator, Traffic Operations
Superintendent, Tree Services Coordinator,
and Senior Water Quality Inspector to be
eligible for benefit.

WORK SHOE ALLOWANCE a. Increase benefit amount from $450.00 to $500.00 per fiscal year. b. Add
classification of Code Compliance
Manager to be eligible for this benefit. c.

Shift from annual stipend to a voucher
system with vendor(s) of the City’s
choosing.

NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.

PARITY AGREEMENT Should other non-safety bargaining groups receive across-the-board base salary
increases or medical increases, the City
shall provide said adjustments to OMA as
applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be
documented on employee timesheets in a
manner specified by the City.

LANGUAGE CLEANUP Parties have agreed to update provisions within the MOU to provide greater clarity
on existing practices and regulatory
compliance, ensuring adherence with
current laws.

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shall provide said adjustments to OMA as
applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be
documented on employee timesheets in a
manner specified by the City.

LANGUAGE CLEANUP Parties have agreed to update provisions within the MOU to provide greater clarity
on existing practices and regulatory
compliance, ensuring adherence with
current laws.

The Orange Management Association employees took these terms to a vote of their membership and ratified the Tentative Agreement on August 11, 2025. City Council approval is required to finalize this agreement in the form of a Memorandum of Understanding

7. ATTACHMENT
· Resolution No. 11632
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Agenda Item
City Council
Item #: 3.10. 8/26/2025 File #: 25-0447
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Memorandum of Understanding between the City of Orange and the Orange Management Association. Resolution No. 11632.

2. SUMMARY
Resolution No. 11632 establishes a Memorandum of Understanding between the City of Orange and the Orange Management Association for the period of July 1, 2025 through June 30, 2026.

3. RECOMMENDED ACTION
Adopt Resolution No. 11632. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11512 and approving the Memorandum of Understanding between the City of Orange and the Orange Management Association concerning wages, hours, and other conditions of employment effective July 1, 2025, through and including June 30, 2026.

4. FISCAL IMPACT
The total cost for this Memorandum of Understanding is approximately $158,200 and will be funded through various funds, with 50% to be covered by the General Fund.

5. STRATEGIC PLAN GOALS
Goal 4: Employee Retention and Recruitment

6. DISCUSSION AND BACKGROUND
In March 2025, the City began the collective bargaining process with the Orange Management Association (OMA). The current contract between the parties expired on June 30, 2025.

After nine meetings the parties reached agreement on the terms and conditions of a twelve-month labor contract that includes the following:

TERM July 1, 2025 - June 30, 2026
COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

VACATION Probationary employees accrue vacation
but may not use vacation until six months
of active service is complete.

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Item #: 3.10. 8/26/2025 File #: 25-0447
TERM July 1, 2025 - June 30, 2026
COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.

HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.

VACATION Probationary employees accrue vacation
but may not use vacation until six months
of active service is complete.

HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to family coverage tier
by $100.00, to $2,210.00.

EDUCATIONAL ASSISTANCE AND

PROFESSIONAL DEVELOPMENT
Allow utilization of Educational
Reimbursement or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.

UNIFORM ALLOWANCE Increase Uniform Allowance for all
classifications receiving a clothing
reimbursement allowance from $150.00 to
$300.00 per fiscal year. Add Construction
Inspection Supervisor, Facilities
Maintenance Supervisor, Senior
Landscape Coordinator, Traffic Operations
Superintendent, Tree Services Coordinator,
and Senior Water Quality Inspector to be
eligible for benefit.

WORK SHOE ALLOWANCE a. Increase benefit amount from $450.00 to $500.00 per fiscal year. b. Add
classification of Code Compliance
Manager to be eligible for this benefit. c.

Shift from annual stipend to a voucher
system with vendor(s) of the City’s
choosing.

NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.

PARITY AGREEMENT Should other non-safety bargaining groups receive across-the-board base salary
increases or medical increases, the City
shall provide said adjustments to OMA as
applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be
documented on employee timesheets in a
manner specified by the City.

LANGUAGE CLEANUP Parties have agreed to update provisions within the MOU to provide greater clarity
on existing practices and regulatory
compliance, ensuring adherence with
current laws.

City of Orange Page 2 of 3 Printed on 8/21/2025
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Item #: 3.10. 8/26/2025 File #: 25-0447
shall provide said adjustments to OMA as
applicable.

ASSOCIATION RELEASE TIME

TRACKING
All Association release time shall be
documented on employee timesheets in a
manner specified by the City.

LANGUAGE CLEANUP Parties have agreed to update provisions within the MOU to provide greater clarity
on existing practices and regulatory
compliance, ensuring adherence with
current laws.

The Orange Management Association employees took these terms to a vote of their membership and ratified the Tentative Agreement on August 11, 2025. City Council approval is required to finalize this agreement in the form of a Memorandum of Understanding

7. ATTACHMENT
· Resolution No. 11632
City of Orange Page 3 of 3 Printed on 8/21/2025
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RESOLUTION NO. 11632

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE RESCINDING
RESOLUTION NO. 11512 AND APPROVING THE

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF ORANGE AND THE

ORANGE MANAGEMENT ASSOCIATION

CONCERNING WAGES, HOURS, AND OTHER

TERMS AND CONDITIONS OF EMPLOYMENT
EFFECTIVE JULY 1, 2025, THROUGH AND
INCLUDING JUNE 30, 2026
WHEREAS, the City of Orange, hereinafter referred to as "City", and the Orange Management Association, hereinafter referred to as “Association”, collectively the “Parties”, have met and conferred in accordance with the requirements of the Meyers-Milias-Brown Act; and WHEREAS, the Parties have reached agreement on wages, hours, and other terms and conditions of employment effective July 1, 2025, through and including June 30, 2026, and the City Council desires to rescind Resolution No. 11512 and amendments thereto for said employees, as set forth in the Memorandum of Understanding, hereinafter referred to as “MOU”.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached MOU is approved and incorporated by reference as Exhibit A as fully set forth herein and furthermore, that staff is authorized to adjust the departmental salary and benefit accounts in the FY26 budget to reflect the cost of the contract provisions.

ADOPTED this 26th day of August, 2025
Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
204
2 APPROVED AS TO FORM:
________________________________________
Wayne W. Winthers, Interim 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 26th day of August, 2025 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
Attachment: Exhibit A
205
Exhibit A

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF ORANGE
AND

THE ORANGE MANAGEMENT ASSOCIATION
JULY 1, 2025 THROUGH JUNE 30, 2026
206

TABLE OF CONTENTS
Article No. Article Title Page No.

I Recognition 1
II Non-Discrimination 1
III Salaries 1
IV Work Week 5
V Probation 5
VI Promotion 6
VII Demotion 6
VIII Reassignment of Compensation Ranges 6
IX Working Out of Class 7
X Overtime/Call Back Compensation 7
XI Holidays 9
XII Vacation 10
XIII Part-Time & Temporary Employee Eligibility for Fringe Benefits 11 XIV Leaves of Absence 12
XV Fringe Benefit Administration 18
XVI Health Benefits 18
XVII Educational Assistance, Professional Development, & Wellness Program 20 XVIII Retirement 21
XIX Miscellaneous 22
XX Travel Expense Allowed 23
207

XXI Safety and Health 24
XXII City Management Rights & Responsibilities 24
XXIII Employee Organizational Rights & Responsibilities 26 XXIV Grievance Procedure 26
XXV Disciplinary Appeals Procedure 27
XXVI No Strike-No Lockout 29
XXVII Association Release Time 30
XXVIII Layoff Procedure 30
XXIX Scope & Application of Memorandum of Understanding 33 XXX Waiver of Bargaining During Term of Memorandum of Understanding 33 XXXI Emergency Waiver 33
XXXII Memorandum of Understanding Terms Severable 34
XXXIII Term of Memorandum of Understanding, No Layoff or Furlough, & Parity 34 XXXIV Ratification & Execution 34
Appendix A Monthly Salary Ranges 36
208
1 ARTICLE I

RECOGNITION
Pursuant to the provisions of the Employer-Employee Relations Resolution No. 11529 of the City of Orange, hereinafter referred to as the “City” for the purpose of meeting its obligations under the MeyersMilias-Brown Act (Government Code Section 3500 et. Seq.), Employer-Employee Relations Resolution No. 11529, or as amended, and this Memorandum of Understanding, hereinafter referred to as the “MOU”, has recognized the Orange Management Association hereinafter referred to as “Association” as the majority representative of the employee classifications listed within Appendix A. As a majority representative, the Association is empowered to act on behalf of all employees who hold positions in classifications covered by this MOU whether or not they are individually members of the Association.

ARTICLE II

NON-DISCRIMINATION
SECTION 1. The parties mutually recognize and agree to protect the rights of all employees hereby to join and/or participate in protected Association activities or to refrain from joining or participating in protected activities in accordance with the Employer-Employee Relations Resolution and Government Code Sections 3500 et. seq.

SECTION 2. In accordance with Federal and State law, the City and the Association agree that they shall not discriminate against any employee on the basis of actual or perceived race, color, national origin, religion, sex, gender, gender identity, physical or mental disability, medical condition (cancer-related or genetic information), ancestry, marital status, age, sexual orientation, citizenship, pregnancy, childbirth or related medical condition, status as a covered veteran, or service in the uniformed services (as defined by the Uniformed Services Employment and Reemployment Rights Act of 1994) or any other lawfully protected class. The City and the Association shall reopen any provision of this MOU for the purpose of complying with any final order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in compliance with Federal or State anti-discrimination laws.

ARTICLE III

SALARIES
SECTION 1. BASIC COMPENSATION PLAN. A basic compensation plan is established for all employees covered by this MOU who are now employed, or will in the future be employed, in any of the designated classification titles listed in this MOU and its attachments.

SECTION 2. SALARIES. Salaries and their effective dates for employees covered by this MOU are listed in Appendix A. The salary and wage schedules shall constitute the basic compensation plan consisting of six (6) steps or rates of pay in each range. The respective ranges shall be identified by 209
2 number and the steps by the letters A to F. The listed salary and wage schedules are based on a forty (40) hour work week.

SECTION 3. HOURLY RATE PART-TIME EMPLOYEES.

A. For all employees who have a regular weekly work schedule of forty (40) hours, the equivalent hourly rate of pay shall be the monthly rate times twelve (12) divided by two thousand eighty (2,080) annual hours. The hourly rate for persons employed on a regular part-time or temporary basis in an equivalent classification shall be determined in the same manner. In determining the hourly rate as herein provided, compensation shall be made to the nearest half (½) cent.

B. Regular part-time employees who are scheduled to work on an average of at least twenty (20) hours per week on a year-round basis may be considered for advancement to the next higher step upon completion of hours of employment equal to the minimum number of months of service required by full-time employees. One thousand forty (1,040) hours of regular part-time employment shall equal six (6) months of service.

SECTION 4. BEGINNING RATES. A new employee of the City shall be paid the rate shown in Step A in the range assigned to the classification for which the employee has been hired, except that on the request of the Department Head under whom the employee will serve, and with the authorization of the Human Resources Director, such employee may be placed at any step depending upon the employee's qualifications.

SECTION 5. SERVICE. The word “service” as used in this MOU, shall be defined to mean continuous, full-time service in an employee’s present classification, service in a higher classification, or service in a classification allocated to the same salary range and having generally similar duties and requirements.

A lapse of service by any employee for a period of time longer than thirty (30) calendar days by reason of resignation or for any length of time due to discharge eliminates the accumulated length of service time of such employee for the purpose of this MOU. Employees re-entering the service of the City shall be considered as a new employee, except that the employee may be re-employed within one (1) calendar year and placed in the same salary step in the appropriate compensation range as the employee was at the time of the separation of employment.

SECTION 6. ADVANCEMENT WITHIN SALARY RANGES. The following regulations shall govern salary advancement:

A. Merit Advancement. An employee shall be considered for advancement through the salary range based only on continuous, meritorious, and efficient performance, and continued improvement by the employee in the effective performance of duties. If merited, advancements through the salary range shall occur after the completion of twenty-six (26) pay periods. A merit increase shall become effective on the first day of the pay period following completion of the length of service required for such advancement. Such merit advancement shall require the following:
1) The Department Head shall file with the Human Resources Director a Personnel Action Form and a completed Performance Evaluation form recommending the granting or denial of the merit increase and supporting such recommendation with specific reasons therefore. If denied 210
3 by the Human Resources Director, the reason for the denial will be provided to the Department Head.

B. Ineligibility for Step Increase/Delay of Step Increase. An employee is ineligible to receive a step increase while on a leave of absence without pay. Step increases shall be delayed by the amount of time an employee is out on leave without pay status.

C. Special Merit Advancements. When an employee demonstrates exceptional ability and proficiency in the performance of duties, the Department Head may recommend to the Human Resources Director that said employee be advanced to a higher pay step without regard to the minimum length of service provisions contained in this MOU. The Human Resources Director may, on the basis of a Department Head's recommendation, approve and effect such advancement.

D. Length of Service Required When Advancement is Denied. When an employee is not approved for advancement to the next higher salary step, the employee may be reconsidered for such advancement at any subsequent time. This reconsideration shall follow the same steps and shall be subject to the same action as provided in Section 6A.

SECTION 7. REDUCTION IN SALARY STEPS. Any employee who is being paid at a salary step higher than Step A may be reduced by one (1) or more steps for disciplinary reasons, upon the recommendation of the Department Head with the approval of the Human Resources Director.

SECTION 8. BILINGUAL ASSIGNMENT. Employees covered by this Resolution may be assigned by the Department Head, with approval of the Human Resources Director, to a bilingual assignment. The Department Head shall determine the number of bilingual assignment positions which are necessary based upon a demonstrable need and frequency of use. Employees on bilingual assignment shall receive an additional one hundred forty dollars ($140.00) per month for the duration of the assignment. Employees receiving bilingual assignment compensation may be required to take and pass a proficiency test on an annual or as needed basis as determined by the Human Resources Department. No permanency or seniority may be obtained in a bilingual assignment and such assignment may be revoked at any time by the Human Resources Director or duly authorized designee. Such revocation shall not be subject to the grievance procedures in this MOU. No employee shall be required to perform a Bilingual Assignment on a regular basis or employ bilingual skills on a regular basis who is not receiving bilingual pay pursuant to this section. This form of pay, also referred to as “Bilingual Premium”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable compensation for members hired on or after January 1, 2013, as defined by the Public Employees’ Pension Reform Act of 2013 (PEPRA) pursuant to CalPERS Regulations, Section 571.1(b)(3). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

SECTION 9. SHIFT DIFFERENTIAL. The Library Manager I and II and Recreation Services Supervisor, if regularly assigned on a weekly basis to a shift working after 6:00 p.m. and/or on Saturdays, Sundays, or Holidays, shall be eligible to receive an additional one hundred seventy-five dollars ($175.00) per month on top of base salary for shift differential compensation. This form of pay, also referred to as "Shift Differential," shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable 211
4 compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(3). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

SECTION 10. CERTIFICATION PREMIUMS. Employees shall be responsible for submitting proof of completion to the department of their eligibility for specialty pays. The effective date is then applied to the pay period following the employee’s submission.

A. California State Water Resources Control Board (SWRCB) Water Distribution Operator Certification:
i. Employees who possess a Grade II Water Distribution Certificate (D-2) shall receive a flat one hundred dollars ($100.00) per month premium.
ii. Employees who possess a Grade III Water Distribution Certificate (D-3) shall receive a flat one hundred fifty dollars ($150.00) per month premium.

B. California State Water Resources Control Board (SWRCB) Water Treatment Operator Certification:
i. Employees who possess a Grade II Water Treatment Certificate (T-2) shall receive a flat seventy-five dollars ($75.00) per month premium.

C. California Water Environment Association (CWEA) Collection System Maintenance Certification:
i. Employees who possess a CWEA Grade I Collection System Maintenance Certificate shall receive a flat seventy-five dollars ($75.00) per month premium. ii. Employees who possess a CWEA Grade III Collection System Maintenance Certificate shall receive a flat one hundred dollars ($100.00) per month premium.

D. An employee who possesses two (2) or more of the above certifications is eligible for cumulative premium compensation.

This form of pay, also referred to as “Educational Incentive”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(2), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(2). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

E. National Commission for the Certification of Crane Operators: Public Works’ Water Division employees may be assigned at the discretion of the Department Head or authorized designee to perform Crane Operator duties. An employee who possesses an active crane operator certificate issued by National Commission for the Certification of Crane Operators (NCCCO) shall receive fifty dollars ($50.00) per month during the period of such special assignment. Employees not assigned will not receive this special assignment pay. This form of pay, also referred to as “Heavy/Special Equipment Operator Premium”, shall be reported to CalPERS as special 212
5 compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(4), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(3). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

SECTION 11. EDUCATIONAL INCENTIVE PROGRAM. Employees covered by this MOU with postgraduate degrees (i.e. Master’s degree or higher) shall be eligible to receive three hundred dollars ($300.00) per month. Employees shall be responsible for submitting proof of completion to the department of their eligibility for education pays. The effective date is then applied to the pay period following the employee’s submission. This form of pay, also referred to as “Educational Incentive”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(2), and pensionable compensation for PEPRA Members pursuant to CalPERS Regulations, Section 571.1(b)(2). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

SECTION 12. INCENTIVE PAY PLAN. The City Manager may, for the employees covered by this MOU, put into effect an incentive pay plan; the terms and conditions of which shall be in the full discretion of the City.

ARTICLE IV

WORK WEEK
SECTION 1. The regular work week for all employees covered by this MOU shall be forty (40) hours per week.

SECTION 2. The department shall discuss proposed changes in the established work schedule with the affected employees prior to the implementation of the change.

ARTICLE V

PROBATION
An employee initially appointed or promoted to a classification shall serve a probationary period of twenty-six (26) pay periods during which the employee shall have an opportunity to demonstrate suitability for the job. With the approval of the Human Resources Director, the Department Head may, for just cause, extend the probationary period for up to an additional thirteen (13) consecutive pay periods.

The employee shall attain regular status in the classification upon successful completion of the probationary period to the satisfaction of the City. An employee who does not satisfy the standards of the classification during the probationary period shall be notified, in writing, and termination or demotion proceedings shall be initiated. A newly hired probationary employee shall not be entitled to appeal a termination or demotion, except as is provided for by law.

Employees serving an initial probationary period are ineligible to compete for closed/promotional recruitment processes.
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6 ARTICLE VI

PROMOTION
SECTION 1. SALARY STEP ASSIGNMENT. When an employee is promoted to a position of a higher classification, the employee may be assigned to Step A in the appropriate range for the higher classification; provided, however, that if such employee is already being paid at a rate equal to or higher than Step A in the appropriate range for the higher classification, the employee shall be placed in the step in that appropriate salary range as will grant an increase of at least one (1), but no more than three (3) salary steps, at the discretion of the Department Head and the Human Resources Director.

SECTION 2. ELIGIBILITY LIST. When an eligible employee remains in higher bands of a current eligibility list, and a Department Head selects an eligible employee in a lower band, upon request, the eligible employee in the higher band will be notified of reasons for non-selection.

ARTICLE VII

DEMOTION
When an employee is demoted for disciplinary reasons, the employee’s new salary rate shall be assigned within the appropriate salary range for the lower classification and the employee’s salary rate shall be reduced by at least one (1) step.

ARTICLE VIII

REASSIGNMENT OF COMPENSATION RANGES
SECTION 1. Any employee who is employed in a classification which is allocated to a different pay range shall retain the same salary step in the new range as the employee previously held in the prior range, and shall retain credit for length of service in such step toward advancement to the next higher step; provided:

A. That if such retention results in the advancement of more than one (1) step in the old pay range, the Human Resources Director may, at the time of reassignment, place the employee in a step which will result in an increase of only one (1) step.

B. That if the reassignment is to a lower compensation range, the F step of which is lower than the employee’s existing rate of pay at the time of reassignment, the employee shall continue to be paid at their existing rate of pay until the position’s compensation range allows for further salary advancement, or until such time as the employee is promoted to a position assigned to a higher compensation range.

C. That if the reassignment is to a lower compensation range, the F step of which is higher than the existing rate of pay, the employee shall be placed in that step of the lower compensation range which is closest to, but no lower than the existing rate of pay. 214
7 ARTICLE IX

WORKING OUT OF CLASS
SECTION 1. The City may work employees out of classification for up to ten (10) consecutive working days without additional compensation.

SECTION 2. ACTING TIME PAY. An employee shall receive acting time pay, as further defined below, at A Step of the higher class, or five percent (5.0%) above the employee's regular salary, whichever is greater, for work performed in the higher classification starting on the eleventh (11th) consecutive working day out of class, and for each consecutive day thereafter an employee works out of class. The Department Head or duly authorized designee shall assign the employee to work out of classification but shall notify the Human Resources Director prior to the assignment.

A. Temporary Upgrade Pay. When an employee is working out of classification due to an incumbent’s approved leave of absence, said employee shall receive Temporary Upgrade Pay. Temporary Upgrade Pay, as defined by California Code of Regulations 571(a)(3), is “compensation to employees who are required by their employer or governing board or body to work in an upgraded position/classification of limited duration.”
For Classic Members, the above form of compensation shall be reported to CalPERS as special compensation and therefore compensation earnable. However, it is ultimately CalPERS who determines if any form of pay is reportable special compensation. Temporary Upgrade Pay will not be reported to CalPERS as pensionable compensation for PEPRA Members.

B. Out-of-Class Appointment. Out-of-class appointments shall only be made for positions vacated due to voluntary resignation, promotion, demotion, or termination. Government Code Section 20480 of the Public Employees' Retirement Law (PERL) defines an “out-of-class appointment” to mean an appointment to an upgraded position or higher classification by an employer or governing board or body in a vacant position for a limited duration. For purposes of this section, a “vacant position” refers to a position that is vacant during recruitment for a permanent appointment. A vacant position does not refer to a position that is temporarily available due to another employee's leave of absence (see “Temporary Upgrade Pay” above).

SECTION 3. ELIGIBILITY PERIOD. During the ten (10) consecutive working day eligibility period before an employee is entitled to receive acting time pay, absence for compensatory time and/or vacation shall break consecutiveness and cause the ten (10) consecutive working day eligibility period to start over.

Absences for regularly scheduled holidays, regular days off, jury duty, and/or verifiable sick leave shall not constitute a break in consecutiveness for acting pay eligibility.

ARTICLE X

OVERTIME/CALL BACK COMPENSATION
SECTION 1. OVERTIME COMPENSATION. Employees required to perform work beyond their normal shift, shall be paid at straight time on an hour for hour basis or may work a flexible schedule 215
8 adjusting their hours of work on an hour for hour basis within the pay period if by mutual agreement to use a flexible schedule between the employee and their supervisor, with the specific limitations to the situations indicated below:

A. Special events or work performed outside of normal work schedules (i.e., Saturdays, Sundays, and holidays) for which the City is reimbursed.

B. Special projects requiring significant shift extension work by unit employees may be compensated upon request of the division manager and approval of the Department Head. This would include special studies and attendance at commission or City Council meetings which require the employee to work after the employee’s normal shift.

C. The use of flexible schedules as provided for in this section shall be employed when possible to offset the additional hours the employee is required to work under the situations described herein.

D. Employees who are assigned to work the Orange International Street Fair (Labor Day Weekend) will receive premium overtime (time and one-half) for hours worked at this event for which the City is reimbursed.

E. An employee may not work overtime without prior approval from their supervisor.

SECTION 2. CALL BACK COMPENSATION. Employees shall be compensated in cash at the straight time rate for the actual hours of work with a minimum of three (3) hours call back compensation, regardless of whether the employee works less than three (3) hours, under the following circumstances:

A. When employees are required to report back to work after completing a normal work shift and have left the City premises and/or work location.

B. For performing all shift extensions required by emergency situations.

C. For conducting projects and completing tasks which require work on days not part of an employee's regular schedule.

This provision shall be applicable to employees although the employees' regular work week is not completed, but shall not apply to employees who are continuing on duty. All call back assignments are subject to approval of the Department Head or duly authorized designee. Section 4 below denotes compensation provided when an employee is eligible for call back pay and standby pay.

SECTION 3. STANDBY PAY. Employees assigned by Management to standby status after their regular work hours will receive three (3) hours per day (Mondays through Fridays) of standby pay at their straight time hourly rate or four (4) hours per day for Saturdays, Sundays, Holidays, days where the City closes services (i.e., Holiday Closure), and regular days off (i.e., the employee’s scheduled Friday off as part of the 9/80 schedule). Employees must be capable of performing all duties that would be required if called back to work.

SECTION 4. CALL BACK PAY PLUS STANDBY PAY. Employees who are called back to work pursuant to Section 2 above, and who are assigned by Management to standby status after their regular 216
9 work hours pursuant to Section 3 above, will receive three (3) hours per day (Mondays through Fridays) of standby pay at their straight time hourly rate or four (4) hours per day for Saturdays, Sundays, and Holidays, plus straight time for each hour worked on call back. All actual call back hours worked by an employee on standby shall count as time worked toward the 40 hours for qualifying for straight time overtime.

ARTICLE XI

HOLIDAYS
SECTION 1. HOLIDAY DESIGNATION. Employees covered by this MOU shall receive the following paid nine (9) hour holidays, except for number twelve (12) below:
1) January 1st (New Year’s Day)
2) Third Monday in January (Martin Luther King Jr. Day) 3) Third Monday in February (Presidents’ Day)
4) Last Monday in May (Memorial Day)
5) July 4th (Independence Day)
6) First Monday in September (Labor Day)
7) November 11th (Veterans Day)
8) Fourth Thursday in November (Thanksgiving Day)
9) Fourth Friday in November (day after Thanksgiving)
10) December 24th (Christmas Eve), if it falls on a Monday through Thursday 11) December 25th (Christmas Day)
12) Eighteen (18) hours of floating holiday time
SECTION 2. FLOATING HOLIDAY. The eighteen (18) hours of floating holiday will accrue at the beginning of the pay period which includes January 1st of each year, and are required to be utilized by December 31st of the year for which it was provided. Unused floating holiday hours shall be forfeited.

Employees hired after January 1st of each year shall receive a prorated portion of the eighteen (18) hours.

Floating holiday hours shall be taken at the convenience of the City with approval of the Department Head or duly authorized designee.

Employees who terminate employment for reasons other than retirement from the City shall receive any remaining portion of their floating holiday in cash reimbursement.

SECTION 3. HOLIDAYS ON CERTAIN DAYS OF THE WEEK. In the event any of the above holidays fall on a Sunday, except Christmas Eve, the following day will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays falls on a Saturday, except Christmas Eve, the preceding Friday will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays falls on an employee’s regularly scheduled day off during the week, except Christmas Eve, employees will be credited with nine (9) hours of holiday compensatory time. Accumulated holiday compensatory time must be used by the employee by June 30th of the same fiscal year in which it was accumulated or shall be forfeited.
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10 SECTION 4. ELIGIBILITY TO RECEIVE HOLIDAY PAY. In order to be eligible to receive holiday pay, an employee must have worked, or be deemed to have worked because of a lawful absence, the employee's regularly scheduled day before and regularly scheduled day after the holiday. Should an employee fail to work the employee's regularly scheduled day before and after the holiday, the employee shall not be entitled to holiday pay. Probationary employees are provided with and are eligible to use floating holiday and fixed holiday hours, according to the guidelines established in this Article and/or with approval of the Human Resources Director.

SECTION 5. HOLIDAY DURING VACATION. Should holidays listed above fall during an employee's vacation period while an employee is lawfully absent with pay, the employee shall receive holiday pay and no charge shall be made against the employee's accumulated vacation.

SECTION 6. LIBRARY OPERATIONS. If Christmas Day or New Year’s Day falls on a Sunday, the Library shall be open Monday through Friday during the preceding week of such holiday.

ARTICLE XII

VACATION
SECTION 1. VACATION ACCRUAL. All full-time, regular employees accrue paid vacation in accordance with the following:

Years of Service Vacation Hours
Per Year Years of Service Vacation Hours Per Year
1 92 16 176
2 102 17 180
3 112 18 184
4 122 19 188
5 132 20 192
6 136 21 196
7 140 22 200
8 144 23 204
9 148 24 208
10 152 25 212
11 156 26 216
12 160 27 220
13 164 28 224
14 168 29 228
15 172 30 or more 232
SECTION 2. VACATION USAGE AND ACCUMULATION. Vacation shall be taken at the convenience of the City with the approval of the Department Head or duly authorized designee. Where possible, such vacation should be taken annually and not accumulated from year to year. Vacation hours not in excess of the equivalent number of hours earned in the immediately preceding twenty-four (24) month period may be accumulated with the permission of the Department Head and the Human Resources Director. Employees shall not accumulate vacation in excess of the equivalent number of hours earned in 218
11 the immediately preceding twenty-four (24) month period. All vacation hours in excess of the equivalent number of hours earned in the immediately preceding twenty-four (24) month period not taken by the employee shall be forfeited. Probationary employees accrue vacation but may not use vacation until six (6) months of active City service is complete, except in the event of a City Hall Holiday Closure, with the approval of the Human Resources Director.

SECTION 3. VACATION CONVERSION. An employee may convert up to fifty percent (50%) of current annual vacation accrual into cash in lieu of time off with pay. An employee requesting such a conversion must meet the eligibility requirements as set forth in Section 2, above, and may so convert twice in a fiscal year, however, the total amount converted per fiscal year shall not exceed fifty (50%) of the employee’s annual accrual. Employees serving their initial probationary period shall not be eligible for vacation conversion.

On or before December 15, 2025, and every December 15th thereafter, a qualified employee who elects to cash out accrued vacation for the following year shall submit written request to the Human Resources Department stating their irrevocable election(s).

The City shall administer the cash out twice annually, starting in June 2026 and every June and December thereafter. The City shall make the cash outs in the second pay period in June and December. Such cash outs shall be paid at the employee’s net salary hourly rate of pay.

SECTION 4. VACATION PAYOUT UPON TERMINATION. Employees who terminate their employment with the City shall be paid for all accrued vacation, if any, and the prorated portion of their final accrual. Prorated vacation shall be on the basis of one-twelfth (1/12) of the employee's annual vacation pay for each full month of service.

ARTICLE XIII

PART-TIME & TEMPORARY EMPLOYEE ELIGIBILITY FOR FRINGE BENEFITS SECTION 1. DEFINITIONS. Nothing contained herein shall guarantee to any employee a specified number of hours per day or days per week or weeks per year or months per year of work.

A. Regular part-time employees shall be those employees scheduled in the budget to work 20 or more hours per week on a year-round basis (52 weeks minus approved leave).

B. Temporary part-time employees shall be those employees scheduled in the budget to work less than 20 hours per week on a year-round basis (52 weeks minus approved leave).

C. Seasonal employees shall be those employees who are scheduled in the budget to work on less than a year-round basis regardless of hours worked.

SECTION 2. REGULAR PART-TIME EMPLOYEES.

A. Regular part-time employees shall receive fringe benefits in proportion to the number of hours an employee is scheduled in the City’s budget to work, compared to the normal forty (40) hour week 219
12 on an annual basis. The annual schedule for all part-time employees shall be the schedule, which is included in the City’s approved budget, or a schedule which is designated by Management at the commencement of the employee's employment with the City.

B. This formula of proration shall apply to holiday pay, vacation, sick leave, medical plan contribution, retirement contribution, and disability insurance.

C. Regular, part-time employees may receive step increases provided they work the actual number of hours a full-time employee would have had to work in order to be entitled to progress to the next step of the salary range.

SECTION 3. TEMPORARY AND SEASONAL EMPLOYEES. Temporary and seasonal employees shall be entitled to receive no fringe benefits provided for in this MOU or in any resolution of the City, except those stated in Article XVIII, Section 2 of this MOU, or unless otherwise required by Federal and/or State law.

ARTICLE XIV

LEAVES OF ABSENCE
SECTION 1. LEAVE OF ABSENCE WITHOUT PAY. For all regular employees as described herein, the following leave without pay procedure shall apply:

A. After all available leave benefits, including vacation, compensatory time, and other leave benefits have been completely used, a regular employee, not under suspension, may make written application to the Department Head for leave without pay. No such leave will be considered absent a written application from the employee requesting leave.

B. If the Department Head and the Human Resources Director agree that such leave is merited and in the interest of the City, leave may be granted for a period not to exceed six (6) months following the date of expiration of all other allowable leave benefits.

C. An employee is ineligible to receive a step increase while on a leave of absence without pay. Step increases shall be delayed by the amount of time an employee is out on leave without pay status.

D. No employment or fringe benefits such as sick leave, vacation, health insurance, retirement, or any other benefits shall accrue to any employee on leave of absence without pay except as denoted under the Family and Medical Leave Act (FMLA) section below. During such leave in excess of five (5) working days, no seniority shall be accumulated.

E. Subject to and consistent with the conditions of the group health, life or disability plan, coverage may be continued during a leave, provided direct payment of the total premium by the employee is made through and as prescribed by the Payroll Division of the City. The City will pay up to six (6) months of the Flexible Benefit Plan contribution for employees who are on long-term disability leave.
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13 F. At the end of such leave, if the employee desires additional leave, written application must be made through the Department Head to the Human Resources Director at least ten (10) days before the end of the six (6) month period, stating the reasons why the additional leave is required and why it would be in the best interests of the City to grant such leave of absence. If such additional leave is merited and would still preserve the best interests of the City, the Human Resources Director may approve such extension of the leave of absence for a period not to exceed an additional six (6) months.

G. If the employee does not return to work prior to or at the end of such leave of absence or extension of leave of absence, the City shall consider that the employee has terminated employment with the City.

H. An employee on leave of absence must give the City at least seven (7) days' written notice of intent to return to work prior to returning to work.

I. Any employee who engages in outside employment during said leave of absence without prior notification and approval of the Human Resources Director and Department Head may be subject to termination.

J. Any employee who falsifies the reason for the request for said leave of absence may be terminated for falsifying a request for leave of absence or extension thereof.

K. Such leave shall be granted on the same basis for pregnancy, childbirth, and other medically related conditions, except that such an employee shall retain all seniority rights.

L. Forms setting forth the benefits available or such other pertinent information shall be maintained for distribution in the Human Resources Department.

M. Management will allow an employee to take a leave of absence without pay during a City Hall Holiday Closure without having to exhaust all accrued leave benefits on the books. During said closure, employees will not see a reduction in benefits, including no loss of eligibility for holiday pay, if leave without pay hours are used during the closure (i.e. the day after Christmas and/or working day before New Year’s Day).

SECTION 2. JURY DUTY AND WITNESS SERVICE FOR THE CITY.

A. Jury Duty. When required to serve on a jury, employees shall have paid time off for a period not to exceed thirty (30) calendar days for each jury duty summons which an employee responds to per calendar year. Employees shall receive their regular pay for the period of actual service required on the jury, provided all jury fees paid to the individual employee are turned over to the City, with the exception of automobile expenses allowed. A full-time employee who works a rotating schedule, who is summoned for jury duty, shall be placed on a day shift until jury duty has concluded; the employee will be excluded from required overtime while performing jury duty.

If an employee is required to call in for jury service and the court does not need the employee’s service, the employee is expected to report to work. Once an employee has completed jury service, 221
14 the Certificate of Jury Service must be provided to the immediate supervisor to qualify for jury duty compensation.

B. Witness Service for the City. If an employee is called as a witness, on behalf of the City, the employee shall receive normal pay for time spent by the employee serving as a witness for the City. Employees shall be required to pay any witness fees that accrue to the employee for witness service to the City as a condition of receiving normal pay while serving as a witness for the City.

SECTION 3. MILITARY LEAVE OF ABSENCE. If an employee is deployed or required to attend military training, the employee shall be entitled to military leave of absence under the provisions of Federal and State law, Including Uniformed Services Employment and Re-employment Rights Act (USERRA) and the California Military and Veterans’ Code. Employees must provide a copy of their military orders, and Leave and Earnings Statements (LES) if requested, to the Human Resources Department to qualify for a military leave of absence. Any exceptions to this provision shall be considered on a case-by-case basis, with final approval of the Human Resources Director.

SECTION 4. SICK LEAVE. Sick leave with pay shall be allowed, credited, and accumulated in accordance with the following:

A. For employees working a regular 40-hour week, eight (8) hours of sick leave will accrue for each month of continuous service. Probationary employees may use accrued sick leave during the probationary period.

B. All non-benefited employees shall receive sick leave as required by State law.

C. Sick leave will be charged at the rate of one-quarter (¼) hour for each one-quarter (¼) hour an employee is absent.

D. Any employee eligible for sick leave with pay may use such leave for the following reasons:
1) Medical, dental, and vision appointments during work hours when authorized by the Department Head or duly authorized designee; and/or
2) Personal illness or physical incapacity resulting from causes beyond the employee's control, in addition to pregnancy, childbirth, and other medically related conditions. 3) For an employee who is a victim of domestic violence, sexual assault, or stalking, for the purposes described in Labor Code sections 230(c) and 230.1(a).

E. Sick Leave Application. Sick leave may be applied only to absence caused by illness or injury of an employee and may not extend to absence caused by illness or injury of a member of the employee's family, except as provided in Section 5 or 6 below.

F. Sick Leave Charged. In any instance involving use of a fraction of a day's sick leave, the minimum charged to the employee's sick leave account shall be one quarter (¼) hour, while additional actual absence of over one-quarter (¼) hour shall be charged to the nearest one-half (½) hour. Sick leave shall only be used for the purposes stated, and the Department Head shall be responsible for 222
15 appropriate use of sick leave by department employees. Employees may, upon prior notice, be required to furnish a certificate issued by a licensed physician or nurse or other satisfactory written evidence of any subsequent illness.

G. Maximum Accumulation of Sick Leave. Employees shall be allowed to accumulate sick leave to a maximum of nine hundred sixty (960) hours. There shall be no accrual of sick leave hours in excess of such maximum.

H. Retirement from City Service and Entering CalPERS as a Retired Annuitant. Upon retiring from City service and entering CalPERS as a Retired Annuitant, an employee shall receive no pay for the first sixty (60) days of accrued sick leave (0-480 hours), but shall receive twenty-five percent (25%) pay for the first 30 days of accrued sick leave after the first 60 days of accrued sick leave (481-720 hours), and fifty percent (50%) of all accrued sick leave thereafter (721-960 hours). In lieu of receiving pay, 100% of the eligible accrued Sick Leave cashout value upon retirement shall be contributed into the employee’s Retirement Health Savings Plan account, in accordance with Article XVI, Section 4, below.

I. Death of an Employee. Upon the death of an employee while employed by the City, one hundred percent (100%) of all accrued sick leave benefits shall be paid to the beneficiary of the deceased employee. Payment will be made when proper authorization for payment is received from the estate of the decedent employee.

J. Sick Leave Conversion.
1) Eligible employees with sick leave usage of zero (0.0) to thirty-six (36.0) hours per payroll calendar year will have the option to convert up to thirty (30) hours of their unused sick leave to vacation in the first pay period of the following year. 2) Employees with sick leave usage of thirty-six and one-quarter (36.25) to forty-five (45.0) hours per payroll calendar year may convert up to twenty (20) hours of unused sick leave to vacation in the first pay period of the following year.
3) Employees must have a minimum balance of one hundred forty (140) hours of sick leave available after conversion.
4) No hours will be converted to vacation if said vacation conversion places the employee’s vacation bank over the maximum allowable accrual. In this case, all sick leave hours eligible for conversion will instead remain in the employee’s sick leave account up to the nine hundred sixty (960) hour limit.

SECTION 5. FAMILY LEAVE. In accordance with the California Family Sick Leave and Paid Sick Leave Act, an employee is allowed up to forty-eight (48) hours of family leave per calendar year for family related illness or injury, which shall be charged against the employee's accumulated sick leave. Family as used in this subsection is limited to any relation by blood, marriage, or adoption, who is a member of the employee’s household; and any parent, substitute parent, parent-in-law, spouse, registered domestic partner, child, brother, sister, grandchild, or grandparent of the employee, or “designated person” pursuant 223
16 to AB 1041, regardless of residence. Benefited part-time employees are allowed to use up to one-half of their annual accrual of sick leave for family leave purposes.

SECTION 6. BEREAVEMENT LEAVE. Regular full-time employees shall be entitled to take up to five (5) days of paid bereavement leave per incident. The following terms and conditions apply:

A. Bereavement leave may only be used upon the death or critical illness where death appears to be imminent of the employee's immediate family. "Immediate family" as used in this subsection, shall be limited to any relation by blood, marriage, or adoption, who is a member of the employee's household and any parent, legal guardian, parent-in-law, brother-in-law, sister-in-law, grandparent, grandchild, aunt, uncle, spouse, registered domestic partner, child, brother, or sister of the employee regardless of residence.

B. Days of absence due to bereavement leave shall not exceed five (5) working days per incident. An employee on bereavement leave shall inform the immediate supervisor of the fact and the reasons therefore as soon as possible. Failure to inform the immediate supervisor, within a reasonable period of time, may be cause for denial of bereavement leave with pay for the period of absence.

SECTION 7. WORKERS’ COMPENSATION. Employees who incur a work-related injury or illness will be eligible to receive Workers’ Compensation benefits according to the State of California’s Division of Workers’ Compensation (DWC) laws and regulations and benefits provided pursuant to this MOU.

A. Temporary Disability. An Association employee shall be granted Temporary Disability in accordance with the current State Workers’ Compensation laws and regulations. When an Association employee is eligible to receive Temporary Disability payments, the City will contribute additional compensation to allow the employee to receive one hundred percent (100%) of their regular rate of pay, or provide full salary continuance, for the first thirty (30) days starting from the first day of Temporary Disability. The employee will then receive eighty percent (80%) of salary for up to an additional three hundred thirty-five (335) calendar days. Temporary Disability in excess of three hundred sixty-five (365) days will be provided subject to current State Workers’ Compensation laws and regulations.

B. Claims Pending Compensation Determination. When a claim is pending a compensability decision while in a delayed or denied status, and the employee is losing time off from work, the employee can use their own accruals (sick, vacation, compensatory time, etc.). If the claim is accepted, the employee’s accruals will be credited based on the dates that meet the Temporary Disability criteria under the State of California’s Division of Workers’ Compensation.

C. Physician Pre-Designation. Before a work-related injury, an employee may elect to pre-designate a qualified medical provider if done in accordance with the State of California’s Division of Workers’ Compensation laws and regulations.

D. Fringe Benefits. An employee receiving Temporary Disability benefits will continue to receive the City’s contribution to the employee’s medical, dental, vision, other applicable insurances. If the employee has exhausted Temporary Disability benefits, the employee shall be responsible for paying the full premium for the employee’s medical, dental, vision, and other applicable insurances.
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17 E. An employee receiving temporary disability payments in accordance with the current State of California Division of Workers’ Compensation laws and regulations may use a prorated amount of accumulated leave (including sick leave, vacation, compensatory time, etc.) to supplement temporary disability payments to reach the amount equal to the employee’s full regular pay until the employee’s leave balances reach zero (0). At that time, the employee would commence an unpaid leave of absence.

SECTION 8. FAMILY AND MEDICAL LEAVE ACT (FMLA). Federal and State laws require the City to provide family and medical care leave for eligible employees. The following provisions set forth employee and employer rights and obligations with respect to such leave. Rights and obligations which are not specifically set forth below are set forth in the City's Employee Handbook. Any provisions not set forth in the Employee Handbook are set forth in the Department of Labor regulations implementing the Federal Family and Medical Leave Act (FMLA) of 1993 and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA) (Government Code Section 12945.2). Unless otherwise provided, "Leave" under this article shall mean leave pursuant to the FMLA and CFRA. An employee's request for leave is subject to review and final approval of the Human Resources Director.

A. Amount of Leave. Eligible employees are entitled to a total of twelve (12) work weeks of leave during any twelve (12) month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires twelve (12) months after the birth or placement.

B. Calculating the 12-Month Period. The twelve (12) month period for calculating leave entitlement will be a "rolling period" measured backward from the date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous twelve (12) month period to determine how much leave has been used in determining how much leave an employee is entitled to.

C. Use of Other Accrued Leaves While on Leave. If an employee requests leave for any reason permitted under the law, the employee must exhaust all accrued leaves (except sick leave) in connection with the leave. This includes vacation, holiday, and other compensatory accruals. If an employee requests leave for the employee’s own serious health condition, in addition to exhausting accrued leave, the employee must also exhaust sick leave. The exhaustion of accrued leave will run concurrently with FMLA.

D. Required Forms. Employees must fill out required forms, available in the Human Resources Department, including: Request for Family Medical Leave; Medical Certification; Authorization for Payroll Deductions for Benefit Coverage Continuation During Family/Medical Care Leave; and Fitness-for-Duty to Return from Leave (if applicable).

SECTION 9. ADMINISTRATIVE LEAVE. Employees will receive forty-five (45) hours of administrative leave each January 1st. Employees hired after January 1st shall receive a prorated portion of the forty-five (45) hours. Administrative leave shall be used in the calendar year in which it accrues; and administrative leave not used in the calendar year in which it is accrued shall be forfeited, with the exception of retirement from City service in which case the remaining balance of Administrative Leave 225
18 hours shall be deposited into the Retirement Health Savings Plan account, in accordance with Article XVI, Section 4.

ARTICLE XV

FRINGE BENEFIT ADMINISTRATION
SECTION 1. ADMINISTRATION. The City reserves the right to select the insurance carrier or administer any fringe benefit programs that now exist or may exist in the future during the term of the MOU.

SECTION 2. SELECTION AND FUNDING. In the administration of the fringe benefit programs, the City shall have the right to select any insurance carrier or other method of providing coverage to fund the benefits included under the terms of this MOU, provided that the benefits of the employees shall be no less than those in existence as of implementation of this MOU.

SECTION 3. CHANGES. If, during the term of this MOU, any change of insurance carrier or method of funding for any benefit provided herein occurs, the City shall notify the Association prior to any change of insurance carrier or method of funding the coverage.

ARTICLE XVI

HEALTH BENEFITS
SECTION 1. HEALTH INSURANCE. The City contracts with CalPERS to make available those health insurance benefits provided under the Public Employees' Medical and Hospital Care Act (PEMHCA).

A. Flexible Benefits Plan. The City shall provide a Section 125 Flexible Benefits Plan for active fulltime and part-time eligible employees and pay the following monthly amounts to provide funds for optional health plans, dental plans, vision plans, health care reimbursement, dependent care, or cash as established by the Internal Revenue Service. The following amounts include the minimum amount required under PEMHCA, which is one hundred fifty-eight dollars ($158.00) per month effective January 1, 2025, or one hundred sixty-two dollars ($162.00) per month effective January 1, 2026. This contribution may be adjusted annually each January 1st to the amount set by the CalPERS Board of Administration.

Effective Date Single 2-Party Family
January 1, 2025 $1,910.00 $2,010.00 $2,110.00
January 1, 2026 $1,910.00 $2,010.00 $2,210.00
B. Any amounts in excess of the amounts designed in Section 1A necessary to maintain benefits under any benefits plans selected by the employee shall be borne by the employee. 226
19 C. An employee cannot be enrolled in the CalPERS Health Benefits Plan if a spouse is enrolled in the same agency or enrolled in an agency with CalPERS Health unless the employee (or the spouse) is enrolled without being covered as a family member.

D. An employee may waive enrollment in a CalPERS Health Benefits Plan. If an employee waives enrollment, the employee must provide proof of group medical insurance coverage (e.g., coverage under a spouse’s employer’s plan) that is compliant with the Affordable Care Act (ACA), as determined by the Human Resources Director or designee. Based upon determination that group medical insurance coverage is in full force and effect, employees who waive shall receive the following monthly amounts. Employees hired after January 1, 2020 who elect to waive medical insurance shall receive five hundred dollars ($500.00) per month. Employees with a hire date prior to January 1, 2020 shall receive one thousand six hundred ten dollars ($1,610.00) per month.

E. In the event an employee loses group medical insurance (with documentation), the employee must enroll in the CalPERS Health Benefits Plan pursuant to their rules and regulations. Failure to do so within sixty (60) days of losing group medical insurance shall result in the City seeking reimbursement of monthly waiver amounts paid to the employee.

F. Retired Annuitant Contribution. The City shall contribute toward the payment of premiums under the CalPERS Health Benefits Plan to each eligible retired annuitant of CalPERS to the extent required by law, a contribution of one hundred fifty-eight dollars ($158.00) per month effective January 1, 2025, or one hundred sixty-two dollars ($162.00) per month effective January 1, 2026.

This contribution may be adjusted annually on January 1st to the amount set by the CalPERS Board of Administration.

SECTION 2. LIFE INSURANCE. The City shall contribute the full premium toward a seventy-five thousand dollar ($75,000.00) life insurance policy for each benefited employee.

SECTION 3. LONG-TERM DISABILITY INSURANCE. The City shall provide a long-term disability plan that pays sixty percent (60%) of salary after a sixty (60) day elimination period, to a maximum of seven thousand dollars ($7,000.00) per month.

SECTION 4. RETIREMENT HEALTH SAVINGS PLAN (RHSP). The City established and approved a Retirement Health Savings Plan for employees covered by this MOU. The City will not contribute to this Plan, as all contributions of the plan will be borne by the employees. All OMA employees are required to participate in the plan by converting the value of the following forms of compensation, on a tax-deferred basis, into their savings account:

A. One hundred percent (100%) of eligible accrued Sick Leave cashout value upon retirement from City service and entering CalPERS as a retiree in accordance with Article XIV, Section 4H shall be deposited into the employee’s Retirement Health Savings Plan account.

B. One hundred percent (100%) of remaining balance of Floating Holiday hours (up to eighteen (18) hours) upon retirement from City service and entering CalPERS as a retiree shall be deposited into the employee’s Retirement Health Savings Plan account.
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20 C. One hundred percent (100%) of the remaining balance of Administrative Leave hours (up to fortyfive (45) hours) upon retirement from City service and entering CalPERS as a retiree shall be deposited into the employee’s Retirement Health Savings Plan account.

ARTICLE XVII

EDUCATIONAL ASSISTANCE, PROFESSIONAL DEVELOPMENT,
& WELLNESS PROGRAM
Educational Assistance and Professional Development payments to an employee shall not exceed $1,500.00 in any one (1) fiscal year and the employee must still be employed by the City when the course is completed to qualify for reimbursement. Courses/purchases must be approved in advance by the Department Head and the Human Resources Director prior to registration and/or purchase. Employees with a future separation date on file are ineligible for these benefits.

SECTION 1. EDUCATIONAL ASSISTANCE. The City will reimburse employees for the cost of tuition, textbooks, health fees, lab fees, and parking fees required for approved accredited college courses, as well as job-required licensing, testing, renewal, and registration fees. An approved course is one designated to directly improve the knowledge or skill of the employee relative to the employee’s specific job or courses leading to an accredited degree or certificate program. Reimbursement will be based upon the final grade received. A final grade of C or better qualifies an employee for reimbursement up to the amount specified.

SECTION 2. PROFESSIONAL DEVELOPMENT. The City will reimburse employees for materials and activities that aid in an employee’s professional development. Reimbursable materials and activities include the following:

A. Attendance at job-related professional conferences, trainings, and seminars; and B. Payment of membership dues in community and professional organizations; and C. Purchase of job-related professional journals, books, and other written materials, which further their knowledge and improve their effectiveness in performing their duties.

This professional development benefit encourages employees to voluntarily pursue educational and professional development activities beyond those budgeted by their departments. Costs associated with work travel, lodging, meals (or per diem), parking, or other costs as defined in Article XX of this MOU are ineligible for reimbursement under this section.

SECTION 3. WELLNESS REIMBURSEMENT. The City agrees to allow reimbursement to employees of up to three hundred seventy-five dollars ($375.00) of the one thousand five hundred dollars ($1,500.00) allotted per fiscal year towards reimbursement for items A, B and/or C that aid in an employee’s wellness.

Requests must be approved by the Human Resources Director prior to purchase or participation.

A. Membership in a health/fitness club
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21 B. Participation in a weight loss/stop smoking/wellness/fitness program C. Fitness/Home gym equipment
The City will not reimburse employees for any of the above listed activities for family/dependent healthrelated expenses. Employees with a future separation date on file are ineligible for this benefit.

ARTICLE XVIII

RETIREMENT
SECTION 1. The City participates in the California Public Employees’ Retirement System (CalPERS).

This participation shall include, but is not limited to, the following retirement benefits:

A. PEPRA Members. Miscellaneous employees who are PEPRA Members of CalPERS as defined by California Government Code Section 7522.04(f) are subject to the 2% @ age 62 retirement formula as set forth in California Government Code Section 7522.20. PEPRA Members are subject to the three (3) year final compensation measurement period as set forth in California Government Code Section 7522.32. PEPRA Members shall contribute half of normal cost of retirement as determined by CalPERS from their pensionable compensation, on a pre-tax basis, as set forth in California Government Code Section 7522.30. In all other respects, PEPRA Members shall be subject to the terms and requirements of PEPRA.

B. Classic Members. Miscellaneous employees who are not defined as PEPRA Members as outlined in Section A above are defined as Classic Members of CalPERS and are subject to the 2.7% @ age 55 retirement formula as set forth in California Government Code Section 21354.5. Classic Members are subject to the one (1) year final compensation measurement period set forth in California Government Code Section 20042. Classic Members shall contribute eight percent (8.0%) of their compensation earnable, on a pre-tax basis.

SECTION 2. PART-TIME EMPLOYEES. Part-time employees not covered under CalPERS shall participate in a defined contribution retirement plan in lieu of Social Security contributions. The City shall contribute three and three-fourths percent (3.75%) of the employee’s eligible earnings toward the retirement plan. Part-time employees shall contribute three and three-fourths percent (3.75%) of their eligible earnings toward the retirement plan.

SECTION 3. 1959 CALPERS SURVIVOR BENEFIT. The City provides the 1959 CalPERS Survivor Benefit at the Fourth Level Option as set forth in California Government Code Section 21574 for all covered employees. Employees shall pay their two dollar ($2.00) monthly contribution through payroll deduction. The City shall pay the employer portion subject to the following limit: six dollars ($6.00) per month. Employees shall pay any portion of the employer portion that exceeds six dollars ($6.00) monthly. 229
22 ARTICLE XIX

MISCELLANEOUS
SECTION 1. RIDESHARE INCENTIVE PROGRAM. An employee may receive thirty dollars ($30.00) per month and eight (8) hours of paid time off (to a maximum accrual of sixteen (16) hours) every six (6) months for carpooling, using public transportation, biking, walking, or other approved modes of transportation to commute to and from the worksite. To qualify for these incentives, an employee must use one (1) of the above modes of transportation a minimum of seventy percent (70%) of their commuting time.

SECTION 2. UNIFORMS.

A. The City will purchase uniforms for designated classifications within the Association. Uniform allowance shall be reported to CalPERS for the following classifications, in the amounts specified, per calendar year: Equipment Maintenance Supervisor ($82.00); Parks Maintenance Supervisor ($135.00), Public Works Maintenance Supervisor ($135.00), and Water Maintenance Supervisor ($135.00). This form of pay, also referred to as “Uniform Allowance”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(5). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation. Uniform allowance is not pensionable compensation for PEPRA Members.

B. All uniforms and/or safety equipment purchased by the City shall remain the property of the City.

C. Clothing Reimbursement Allowance.
1) Allowance. The City shall contribute up to three hundred dollars ($300.00) per employee toward a clothing reimbursement allowance per fiscal year. This allowance only applies to the following classifications: Construction Inspection Supervisor, Facilities Maintenance Supervisor, Public Works Maintenance Supervisor, Senior Landscape Coordinator, Senior Water Quality Inspector, Traffic Operations Superintendent, Tree Services Coordinator, and Water Maintenance Supervisor. This form of pay, also referred to as “Uniform Allowance”, shall be reported to CalPERS as special compensation, and is therefore compensation earnable for Classic Members pursuant to CalPERS Regulations, Section 571(a)(5). However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation. Clothing Reimbursement Allowance is not pensionable compensation for PEPRA Members.
2) Reimbursement Request. Employees may submit a request for reimbursement once per fiscal year.
3) Clothing. The City shall reimburse employees for the following articles of clothing which are to be worn on the job: blue jeans, white crew socks, white walking socks, and two (2) pairs of shorts per year. The following articles of clothing are not considered reimbursable clothing under this MOU: polo shirts, T-shirts, jackets, windbreakers, dress socks, dress slacks, and other types of clothing not specifically reimbursable under the above guidelines. 230
23 SECTION 3. WORK SHOE VOUCHER. Employees in the following classifications are required to wear compression resistant footwear (safety footwear) while on duty in the field shall receive a work shoe voucher of up to five hundred dollars ($500.00) per fiscal year: Building Inspection Supervisor, Code Compliance Manager, Code Compliance Supervisor, Construction Inspection Supervisor, Environmental Program Manager, Equipment Maintenance Supervisor, Facilities Maintenance Supervisor, Landscape Coordinator, Parks Maintenance Supervisor, Project Development Coordinator, Public Works Maintenance Supervisor, Recreation Services Supervisor, Senior Civil Engineer, Senior Landscape Coordinator, Senior Plan Check Engineer, Senior Water Quality Inspector, Traffic Operations Superintendent, Tree Services Coordinator, Water Maintenance Supervisor, and Water Quality Inspector.

In no event shall any employee receive more than five hundred dollars ($500.00) per year related to safety footwear (e.g., if an employee promotes or moves to a different represented group of employees).

Inspection of the worksite will be made on a regular basis to ascertain compliance with the safety shoe program.

SECTION 4. EYEGLASS REPLACEMENT. The City will pay for replacement of employees’ eyeglasses that are lost or damaged in the course of their work. Damaged eyeglasses will be turned into the City in order for the employee to be entitled to reimbursement. The City will not reimburse an employee for more than one (1) pair of lost or damaged eyeglasses per fiscal year.

SECTION 5. TOOLS. Employees classified as Equipment Maintenance Supervisor shall provide such tools as are ordinarily used in the trade, which shall be the personal tools of the Equipment Maintenance Supervisor. The City will establish with a vendor an account for said employees who have at least one year of service in such classification. Such employees shall be allowed up to a maximum of one thousand dollars ($1,000.00) per fiscal year with such vendor in order to replace and maintain the tools necessary for the performance of the employee’s job duties. The City shall bear no liability or responsibility for such tools except as provided in this Section.

SECTION 6. DIRECT DEPOSIT. City employees are required to participate in the City’s direct paycheck deposit program.

ARTICLE XX

TRAVEL EXPENSE ALLOWED
SECTION 1. MILEAGE REIMBURSEMENT. Expense claims for an employee’s use of personal automobiles in the course of their work must be authorized and submitted through the Department Head to the Accounts Payable Division of the Finance Department for reimbursement. Reimbursement will occur at the rate per mile allowed under the current IRS regulations.

SECTION 2. OUT-OF-CITY TRAVEL. Out-of-City travel must be pre-approved by the Department Head and City Manager. If the estimated expense of contemplated travel out of the City is too great to expect the employee to finance the trip and be reimbursed upon return, the City Manager may authorize advance payment of the estimated amount of the travel expense to the employee.

A. Economy class airfare will be considered standard for out-of-town travel. 231
24 B. Use of personal automobiles for out-of-City trips, within the State, may be approved by the City Manager when use of commercial transportation is not available or practical. If an employee prefers to use a personal vehicle, the employee may be reimbursed mileage expenses as long as the expenses do not exceed the amount of the cost of the commercial transportation. 1) The rate per mile allowed under the current IRS regulations shall be approved for use of personal cars when City cars are not available.

SECTION 3. TRANSPORTATION AND EXPENSE CHARGES. Subject to pre-approval by the Department Head and City Manager, expenses for air, rail, or public transportation will be allowed whenever such transportation is necessary to conduct City business. In addition, the following expenses and charges will be allowed, whenever necessary, for conducting City business.

A. Expense will be allowed for adequate lodging. Hotel accommodations shall be appropriate for the purpose of the trip, and must be approved by the Department Head.

B. Telephone charges will be allowed for official calls.

C. Expenses for meals will be reimbursed according to Administrative Policy Number 4.13.

ARTICLE XXI

SAFETY & HEALTH
SECTION 1. The City and its employees agree to comply with all applicable Federal, State, and local laws as well as any City policies which relate to health and safety. In addition, the City and the Association agree to actively pursue the continuation of safe working procedures and environments.

SECTION 2. SAFETY EQUIPMENT. All protective clothing or protective devices required of employees in the performance of their duties shall be furnished without cost to the employees by the City.

ARTICLE XXII

CITY MANAGEMENT RIGHTS & RESPONSIBILITIES
SECTION 1. The City reserves, retains, and is vested with, solely and exclusively, all rights and responsibilities of Management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights and responsibilities existed prior to the execution of this MOU. The sole and exclusive rights and responsibilities of Management, as they are not abridged by this MOU or by law, shall include, but not be limited to, the following:

A. To manage the City generally and to determine issues of policy.

B. To determine the existence or non-existence of facts which are the basis of Management decisions. 232
25 C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services.

D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public.

E. To determine the methods of financing.

F. To determine the types of equipment or technology to be used.

G. To determine and/or change the facilities, methods, technology, means, and size of the workforce by which the City operations are to be conducted.

H. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City.

I. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments.

J. To relieve employees from duties for lack of work, economic conditions, or similar nondisciplinary reasons.

K. To establish and modify productivity and performance programs and standards.

L. To discharge, suspend, demote, or otherwise discipline employees for proper cause.

M. To determine job classifications and to reclassify employees and to determine the job classifications to be assigned to the Association.

N. To hire, transfer, promote, and demote employees for non-disciplinary reasons in accordance with this MOU.

O. To determine policies, procedures, and standards for selection, training, and promotion of employees.

P. To establish employee performance standards including, but not limited to, quality and quantity standards; and to require compliance therewith.

Q. To maintain order and efficiency in its facilities and operations.

R. To establish, modify, and promulgate reasonable rules and regulations which are not in contravention with this MOU to maintain order and safety in the City.

S. To take any and all necessary action to carry out the mission of the City in emergencies. 233
26 SECTION 2. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact a significant number of employees of the Association, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU or in Personnel Rules and Salary Resolutions and Administrative Code, which are incorporated in this MOU. By agreeing to meet and confer with the Association as to the impact and the exercise of any of the foregoing City Rights, Management's discretion in the exercise of these rights shall not be diminished.

ARTICLE XXIII

EMPLOYEE ORGANIZATION RIGHTS & RESPONSIBILITIES
SECTION 1. ASSOCIATION DUES DEDUCTIONS. The City shall deduct Association dues from employee paychecks on a bi-weekly basis. The City shall process these deductions based on the information certified to be current by the Association. The total amount of deductions shall be remitted by the City to the Association within ten (10) calendar days of each applicable payday.

SECTION 2. INDEMNIFICATION. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of actions, or lawsuits arising out of the deductions or transmittal of such funds to the Association, except the intentional failure of the City to transmit to the Association monies deducted from the employees pursuant to this Article.

ARTICLE XXIV

GRIEVANCE PROCEDURE
SECTION 1. DEFINITION OF GRIEVANCE. A grievance shall be defined as a timely complaint by an employee or group of employees of OMA concerning the interpretation or application of specific provisions of this MOU or of the Rules and Regulations governing personnel practices or working conditions of the City. An employee complaint concerning the employee’s own discipline shall be processed in accordance with Article XXV. The grieving party must state in writing the remedy sought to resolve the grievance.

SECTION 2. BUSINESS DAYS. Business days are days on which the City’s administrative offices are open.

SECTION 3. TIME LIMITS FOR FILING WRITTEN FORMAL GRIEVANCES. The time limits for filing written formal grievances shall be strictly construed, but may be extended by mutual agreement evidenced, in writing, and signed by a duly authorized representative of the City and the grieving party.

Failure of the grieving party to comply with any of the time limits set forth hereunder shall constitute waiver and bar further processing of the grievance. Failure of the City to comply with the time limits set forth in this Section shall automatically move the grievance to the next level in the Grievance Procedure. 234
27 The grieving party may request the assistance of the Association in presenting a grievance at any level of review or may represent themselves.

SECTION 4. INFORMAL GRIEVANCE PROCESS. An employee must first attempt to resolve a grievance on an informal basis by discussion with the immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution to the grievance by these informal means at the most immediate level of supervision. At no time may the informal process go beyond the division head concerned. In order that this informal procedure may be responsive, all parties involved shall expedite this process. In no case may more than ten (10) business days elapse from the date of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance and the filing of a written formal grievance with the Human Resources Director, with a copy to the Department Head in which the employee works. Should the grievant fail to file a written grievance within ten (10) business days from the date of the incident giving rise to the grievance, or when grievant knew or should have reasonably become aware of the facts giving rise to the grievance, the grievance shall be barred and waived.

SECTION 5. FORMAL GRIEVANCE PROCESS, HUMAN RESOURCES DIRECTOR, DEPARTMENT HEAD. If the grievance is not resolved through the informal process, and the written grievance is filed within the time limits set forth above, the grievant shall discuss the grievance with the Human Resources Director and the Department Head. The Human Resources Director and the Department Head shall render a decision and comments, in writing, regarding the merits of the grievance and return them to the grievant within ten (10) business days after receiving the grievance.

SECTION 6. FORMAL GRIEVANCE PROCESS, CITY MANAGER. If the grievance is not resolved in Section 5 above, or if no answer has been received from the Human Resources Director and Department Head within ten (10) business days from the presentation of the written grievance to the Human Resources Director and Department Head, the grievant may present a written grievance to the City Manager, or a duly authorized representative, for determination. Failure of the grievant to take this action shall constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the last Management grievance response. The City Manager, or duly authorized representative, shall render a final decision on the merits of the grievance and comments, in writing, and return them to the grievant within ten (10) business days after receiving the grievance. After this procedure is exhausted, the grievant, OMA, and the City shall have all rights and remedies to pursue said grievance under the law. The City shall instruct its supervisors on the proper use and implementation of this grievance procedure and every reasonable effort shall be made by the employee and the supervisor to resolve the grievance at the informal step.

ARTICLE XXV

DISCIPLINARY APPEALS PROCEDURE
SECTION 1. DISCIPLINARY APPEALS. Any employee who has obtained regular status, and any promotional probationary employee, shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The right to appeal shall not apply to probationary, non-benefited part-time, temporary, or seasonal employees covered by this MOU. Verbal or written reprimands, probationary demotions, performance evaluations, and denial of merit increases are not subject to appeal. 235
28 However, an employee may submit a written rebuttal to any verbal or written reprimand. In addition, the employee may also request said reprimand be withdrawn from their official Personnel record after one (1) year. However, such removal shall be at the sole, non-grievable complete discretion of the Human Resources Director.

SECTION 2. MANAGER’S FORMAL DISCIPLINARY APPEALS PROCESS. An employee desiring to appeal a supervisor/manager’s decision to take disciplinary action shall have up to ten (10) business days after receipt of the notice of intent to discipline to file either a verbal or written appeal to the Department Head. If, within the appeal period, the employee does not file an appeal, unless good cause for the failure is shown, the disciplinary action shall be considered final and shall take effect as prescribed.

If the employee does file a notice of appeal within the appeal period, the Department Head shall consider the merits of said appeal prior to implementation of any disciplinary action. In the event the Department Head upholds the disciplinary action, said action shall be implemented immediately.

An employee may appeal the Department Head’s decision to the City Manager or duly authorized designee, as long as such authorized designee is not a manager from the department of the employee filing said appeal. An employee may appeal any termination, suspension, reduction in salary, or nonprobationary demotion to the City Manager or duly authorized designee. Any request for an appeal to the City Manager shall be submitted in writing to the Human Resources Department within ten (10) business days of the Department Head’s decision. Failure to do so shall render the discipline final and constitute a waiver of any further administrative or judicial appeals. The appeal to the City Manager may be either in the form of a written appeal or an oral presentation. Termination, suspensions without pay in excess of eighty (80) hours, or non-probationary demotion appeals may be further processed in accordance with the provisions of Section 3 below.

SECTION 3. FORMAL PROCESS FOR TERMINATIONS, SUSPENSIONS WITHOUT PAY IN EXCESS OF 80 HOURS, OR NON-PROBATIONARY DEMOTION - ADVISORY HEARING OFFICER. A non-probationary employee may request a full evidentiary hearing within fifteen (15) business days of the date of any notice of termination, suspension without pay in excess of eighty (80) hours, or non-probationary demotion. Failure to request a hearing within the fifteen (15) day period constitutes a waiver of the hearing. In lieu of a hearing, an employee who wishes to appeal one of these types of disciplinary action may submit a written response to the City Manager within the fifteen (15) day period. Requests for extensions to file a written response must be made within the fifteen (15) day period, and may be granted at the sole, non-grievable discretion of the City Manager or duly authorized designee.

If a hearing is requested to challenge the imposition of termination, suspension without pay in excess of eighty (80) hours, or non-probationary demotion, a full evidentiary hearing shall be held by the City Manager or duly authorized designee, or at the employee’s request, by a Hearing Officer who shall render an advisory decision to the City Manager.

If the parties cannot agree on the identity of the Hearing Officer, the parties shall procure from the State Mediation and Conciliation Service a list of seven (7) qualified Hearing Officers. Each party shall alternately strike one (1) name from the list until only one (1) person remains, who shall be the Hearing Officer. The determination as to which party strikes first shall be made on a random basis.

A. Fees for retaining the Hearing Officer and other costs related to conducting the hearing, for example employing a court reporter, shall be shared equally by the City and the employee. The 236
29 City and the employee shall each be responsible for securing and paying for their respective representation at the hearing, if any.

B. The Hearing Officer shall determine whether good cause exists for the imposition of the termination, suspension without pay in excess of eighty (80) hours, or non-probationary demotion, and, if not, the appropriate degree of discipline. The advisory decision of the Hearing Officer is remitted to the City Manager for final disposition.

C. The City Manager, or duly authorized designee, shall render a final decision on the Hearing Officer's comments and recommendation, in writing, and return them to the employee within ten (10) business days after receiving the Hearing Officer's advisory findings.

D. After this procedure is exhausted, the employee and the City shall have all rights and remedies to pursue said appeal under the law.

ARTICLE XXVI

NO STRIKE-NO LOCKOUT
SECTION 1. PROHIBITED ASSOCIATION CONDUCT. The Association, its officers, agents, representatives and members agree that during the term of this MOU, they will not cause, or condone any strike, walkout, slowdown, sick-out, or any other job action by withholding or refusing to perform services.

SECTION 2. PROHIBITED CITY CONDUCT. The City agrees that it shall not lock out its employees during the term of this MOU. The term "lockout" is hereby defined so as not to include the discharge, suspension, termination, layoff, failure to recall, or failure to return to work of employees of the City in the exercise of its rights as set forth in any of the provisions of this MOU or applicable ordinance or law.

SECTION 3. Any employee who participates in any conduct prohibited in Section 1 above may be subject to termination by the City.

SECTION 4. In addition to any other lawful remedies or disciplinary actions available to the City, if OMA fails, in good faith, to perform all responsibilities listed in Section 5A below, the City may suspend any and all of the rights and privileges accorded to OMA under the Employee Relations Resolution in this MOU, including, but not limited to, suspension of recognition of OMA grievance procedure, right of access, the use of the City's bulletin boards, and facilities.

SECTION 5. ASSOCIATION RESPONSIBILITY.

A. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 1 above, the Association or its duly authorized representatives shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and is unlawful, and they should immediately cease engaging in conduct prohibited in Section 1 above, and return to work.
237
30 B. If the Association performs all responsibilities set forth in Section A above, its officers, agents, and representatives shall not be liable for damages for prohibited conduct performed by employees who are covered by this MOU in violation of Section 1 above.

ARTICLE XXVII

ASSOCIATION RELEASE TIME
Upon request and with prior approval by the City, employees elected to the Association Board will be granted release time to perform Association functions. All Association release time must be fully documented on employee timesheets in a manner specified by the City.

ARTICLE XXVIII

LAYOFF PROCEDURE
When a layoff or reduction in force is necessary, the layoff procedures set forth in Resolution No. 8176, as incorporated below, shall be used as the established layoff policy and procedure.

SECTION 1. PURPOSE. The purpose of this policy is to establish and communicate the City's procedures when a layoff or reduction in force is necessary.

SECTION 2. SCOPE. All Association employees are subject to reduction in force at the direction of the City Manager or duly authorized designee.

SECTION 3. POLICY. The City retains the right to abolish any position, reduce the workforce and layoff employees when it becomes necessary due to economic conditions, organizational changes, lack of work, or because the necessity for a position no longer exists. Whenever possible, the City will advise OMA of their intent at least ten (10) calendar days in advance of the effective date. The City's layoff policy provides the following criteria to be followed during a reduction in force.

SECTION 4. PROCEDURE.

A. Order of Reductions in Force (Layoff and Demotion). Within a department and by classification, the order of layoff or demotion shall be as follows:
1) Temporary employees (19 hours or less)
2) Initial probationary employees
3) Regular part-time employees (20 or more hours, but less than 40 hours) 4) Promotional probationary employees (40 hours)
5) Regular full-time employees (40 hours)
For purposes of this procedure, the Water Division will be considered a department. 238
31 B. Layoffs.
1) Layoffs shall be based on City-wide seniority, except, negative performance during the past five (5) years will be considered to determine the order of layoff. Negative performance and disciplinary actions will include the following:
a) Denial of merit increases
b) Suspension without pay
c) Extensions of probationary periods
d) Disciplinary demotions to lower level positions
e) Disciplinary reductions in pay
f) Performance evaluations containing significant, negative written comments indicating improvement needed and warning of further consequences to follow if improvement fails to occur
One (1) negative disciplinary action decreases the employee's seniority by one (1) year per occurrence and by two (2) years for additional occurrences, for a total possible reduction of nine (9) years.
2) The order of layoff shall be established by the Human Resources Director, including seniority and results of review of performance evaluations and prior disciplinary actions. 3) The order of layoff will be from the least senior employee as determined by the procedure above.
4) Prior to the establishment of the final order of layoff, the Human Resources Director shall furnish affected employees with a copy of the "Proposed Order of Layoff". Notice will be hand delivered to employees whenever possible, though alternative forms of notice may be utilized.
5) If the employee wishes to contest the application of the criteria set forth in this policy to the employee’s position on the list, the employee may appeal with any supporting materials to the Human Resources Director. This request should be directed to the Human Resources Director within seven (7) calendar days following the establishment and distribution of a "Proposed Order of Layoff" list. The employee will be allowed representation during the appeal process, so long as it does not cause undue delay.
6) After meeting with all employees wishing to be heard with respect to their position on the layoff list, the Human Resources Director or a duly authorized designee shall establish the "Final Order of Layoff" list. The decision of the Human Resources Director or an authorized designee shall be final and not subject to the grievance process or further appeal.

C. Written Notice.

Employees to be laid off shall be provided written notice at least ten (10) calendar days in advance of the layoff date. Notice will be hand delivered to the employee whenever possible. If personal 239
32 delivery is not possible, the notice will be sent by certified mail to the employee’s last known residential address.

D. Transfer or Demotion In Lieu of Layoff.
1) Whenever employees are to be laid off, they may transfer or demote to another vacant position in their own department or other departments providing that:
a) The positions are at the same or lower level;
b) Positions are authorized, budgeted, and the City intends to fill the vacancies; and c) The employee meets the qualifications of the new position as determined by the Human Resources Director.
2) Whenever employees are to be laid off, they may demote to lower level filled positions within their department providing they:
a) Formerly held or supervised the lower-level position within the classification series; b) Meet or can reasonably meet qualifications for the new position as determined by the Human Resources Director;
c) Possess greater seniority to displace a lower level worker; and d) Request in writing a demotion to the previously held or previously supervised position within seven (7) calendar days of receiving the notice of layoff.

A voluntary demotion shall not reflect as a negative action in the employee's personnel file.

E. Re-employment Lists.
1) Regular employees in good standing who are laid off or demoted shall have their name placed on a departmental re-employment list for the last classification previously held. Names shall be placed on the list in inverse order of seniority (last released - first re-hired). Vacancies the department desires to fill will be offered first to eligibles on the departmental reemployment list.
2) Other hiring departments who have vacancies the City desires to fill will give priority consideration to those employees whose names appear on the re-employment list. If these employees are not selected for rehire, the reason for non-selection must be approved by the Human Resources Director.
3) Names of qualified individuals shall remain on reemployment lists for a period not to exceed two (2) years from the date of layoff. Individuals who qualify for rehire but do not respond to written notification to the last known address on file within 10calendar days or who refuse two (2) job offers shall have their names removed from the re-employment list. Once rehired, employee names are removed from all re-employment lists.

SECTION 5. NON-DISCRIMINATION IN REDUCTION IN FORCE. Layoffs and demotions, which result from a reduction in force, shall be made without regard to an employee's actual or perceived race, color, national origin, religion, sex, gender identity, physical or mental disability, medical condition 240
33 (cancer-related or genetic information), ancestry, marital status, age, sexual orientation, citizenship, pregnancy, childbirth or related medical condition, status as a covered veteran, service in the uniformed services (as defined by the Uniformed Services Employment and Re-employment Rights Act of 1994), or any other lawfully protected class.

ARTICLE XXIX

SCOPE & APPLICATION OF MEMORANDUM OF UNDERSTANDING
It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements including Side Letter Agreements, Letters of Understanding, Memoranda of Understanding, contrary salary and/or personnel resolutions, Administrative Codes, past practices, or provisions of the City, oral and written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with Federal or State law.

ARTICLE XXX

WAIVER OF BARGAINING DURING TERM OF MEMORANDUM OF UNDERSTANDING During the term of this MOU, the parties mutually agree that they will not seek to change, negotiate, or bargain with regard to wages, hours, benefits, and terms and conditions of employment, whether or not covered by this MOU or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU.

ARTICLE XXXI

EMERGENCY WAIVER
In the event of circumstances beyond the control of the City, such as force majeure, fire, flood, wind, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is declared over, this MOU will be reinstated immediately. The Association shall have the right to meet and confer with the City regarding the impact on employees of the suspension of the provisions in the MOU during the course of the emergency.
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34 ARTICLE XXXII

MEMORANDUM OF UNDERSTANDING TERMS SEVERABLE
Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, or by enactment of Federal or State legislation, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU.

ARTICLE XXXIII

TERM OF MEMORANDUM OF UNDERSTANDING,

NO LAYOFF OR FURLOUGH, & PARITY AGREEMENT
SECTION 1. TERM. The term of this MOU shall commence on July 1, 2025, and shall continue in full force and effect until June 30, 2026.

SECTION 2. NO LAYOFF OR FURLOUGH. During this term of the agreement, the City shall not impose furloughs, reductions in work hours, or layoffs on any OMA represented employees. This provision shall sunset on June 30, 2026 and will no longer be applicable after this date.

SECTION 3. PARITY AGREEMENT – SALARY. During the term of this agreement, if the International Brotherhood of Electrical Workers (IBEW) – Maintenance and Crafts and/or the International Brotherhood of Electrical Workers (IBEW) – Water receive across the board base salary increases greater than what was afforded to OMA, the City shall provide said adjustments to OMA as applicable.

SECTION 4. PARITY AGREEMENT – SECTION 125 FLEXIBLE BENEFITS PLAN (MEDICAL).

During the term of the agreement, should both parties agree that IBEW – Maintenance and Crafts and/or IBEW – Water receive a comprehensive value greater than what was afforded to OMA based on a comprehensive tentative agreement and/or executed LOU/MOU, the City shall provide additional adjustments to OMA as applicable.

ARTICLE XXXIV

RATIFICATION & EXECUTION
The City and the Association acknowledge that this MOU shall not be in full force and effect until ratified by OMA and adopted by the City Council of the City of Orange. Subject to the foregoing, this MOU is hereby executed by the authorized representatives of the City and OMA and entered into this 26th day of August, 2025.
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35 CITY OF ORANGE ORANGE MANAGEMENT ASSOCIATION
By: __________________________________ By: ______________________________________ Monica Espinoza, Human Resources Director Michelle Rubio, OCEA Sr. Labor Relations Rep.

By: __________________________________ By: ______________________________________ Trang Nguyen, Finance Director Lisa Tamburelli, President By: __________________________________ By: ______________________________________ Cody Kleen, Assistant Human Resources Director Dwight Gish, Vice President By: ___________________________________ By: ______________________________________ Erin Hodges, Sr. Human Resources Analyst Lisa Aduna, Treasurer By: ___________________________________ By: ______________________________________ Shelby Alley, Human Resources Analyst II Kirk Wudzke, Secretary By: _____________________________________
Enrique Pivaral, Co-Director at Large
By: _____________________________________
Rick Pearson, Co-Director at Large
APPROVED AS TO FORM:

By: ___________________________________
Wayne W. Winthers, Interim City Attorney
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36 APPENDIX A

ORANGE MANAGEMENT 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
Building Inspection Supervisor 601 7145 7510 7892 8295 8718 9162 Code Compliance Manager 645 8898 9354 9829 10330 10858 11411 Code Compliance Supervisor 601 7145 7510 7892 8295 8718 9162 Construction Inspection Supervisor 590 6764 7109 7470 7852 8253 8673 Development Project Manager 602 7181 7548 7931 8336 8762 9208 Digital Marketing Coordinator 576 6308 6629 6968 7323 7696 8089 Environmental Program Manager 654 9307 9783 10280 10805 11357 11934 Equipment Maintenance Supervisor 600 7110 7473 7853 8254 8675 9116 Facilities Maintenance Supervisor 590 6764 7109 7470 7852 8253 8673 Finance Coordinator 577 6339 6663 7002 7359 7735 8129
Finance Supervisor 597 7004 7362 7736 8131 8546 8981
Historic Preservation Planner 625 8054 8465 8895 9350 9828 10328 Information Technology Specialist 576 6308 6629 6968 7323 7696 8089 Information Technology Supervisor 601 7145 7510 7892 8295 8718 9162 Landscape Coordinator 602 7181 7548 7931 8336 8762 9208 Legal Assistant 549 5513 5795 6089 6401 6727 7070
Library Manager I 605 7289 7662 8051 8462 8894 9347
Library Manager II 615 7662 8054 8463 8895 9349 9825
Library Tech & Support Services Mgr 615 7662 8054 8463 8895 9349 9825 Parks Maintenance Supervisor 590 6764 7109 7470 7852 8253 8673 Payroll Specialist 569 6091 6402 6728 7072 7432 7811
Permit Supervisor 590 6764 7109 7470 7852 8253 8673
Project Development Coordinator 602 7181 7548 7931 8336 8762 9208 Public Works Maintenance Supervisor 590 6764 7109 7470 7852 8253 8673 Records Coordinator 1 562 5882 6182 6498 6829 7177 7543 Recreation Services Supervisor 595 6935 7289 7659 8050 8461 8892 Senior Accountant 593 6865 7217 7583 7971 8378 8804
Senior Buyer 577 6339 6663 7002 7359 7735 8129
Senior Civil Engineer 654 9307 9783 10280 10805 11357 11934 Senior Contract Administrator 622 7934 8340 8763 9211 9681 10174 Senior Fire Inspection Specialist 611 7510 7895 8296 8719 9164 9631 Senior GIS Analyst 645 8898 9354 9829 10330 10858 11411 244
37 APPENDIX A (CONTINUED)

ORANGE MANAGEMENT ASSOCIATION

MONTHLY SALARY RANGES

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Senior Landscape Coordinator 622 7934 8340 8763 9211 9681 10174 Senior Legal Assistant 569 6091 6402 6728 7072 7432 7811 Senior Payroll Specialist 579 6403 6729 7073 7433 7812 8211 Senior Plan Check Engineer 654 9307 9783 10280 10805 11357 11934 Senior Planner 625 8054 8465 8895 9350 9828 10328
Senior Water Quality Inspector 590 6764 7109 7470 7852 8253 8673 Traffic Operations Superintendent 610 7473 7855 8254 8676 9119 9583 Tree Services Coordinator 602 7181 7548 7931 8336 8762 9208 Water Maintenance Supervisor 590 6764 7109 7470 7852 8253 8673 Water Quality Inspector 570 6121 6434 6762 7107 7469 7850

1. Classification of Records Coordinator established effective March 10, 2024 pursuant to City Council FY 24 mid-year budget adoption and Resolution No. 11531.

2. Classification of Real Property Agent eliminated effective March 10, 2024 pursuant to Resolution No. 11531.

245
38 APPENDIX A (CONTINUED)

ORANGE MANAGEMENT ASSOCIATION

MONTHLY SALARY RANGES
EFFECTIVE JUNE 29, 2025

2.0% Across the Board Salary Increase

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Building Inspection Supervisor 605 7289 7662 8051 8462 8894 9347 Code Compliance Manager 649 9078 9542 10027 10539 11077 11641 Code Compliance Supervisor 605 7289 7662 8051 8462 8894 9347 Construction Inspection Supervisor 594 6900 7253 7621 8010 8419 8848 Development Project Manager 606 7325 7700 8091 8504 8938 9394 Digital Marketing Coordinator 580 6435 6763 7108 7470 7851 8252 Environmental Program Manager 658 9494 9980 10487 11022 11585 12175 Equipment Maintenance Supervisor 604 7253 7624 8011 8420 8850 9300 Facilities Maintenance Supervisor 594 6900 7253 7621 8010 8419 8848 Finance Coordinator 581 6467 6796 7144 7508 7890 8293
Finance Supervisor 601 7145 7510 7892 8295 8718 9162
Historic Preservation Planner 629 8216 8636 9074 9538 10025 10535 Information Technology Specialist 580 6435 6763 7108 7470 7851 8252 Information Technology Supervisor 605 7289 7662 8051 8462 8894 9347 Landscape Coordinator 606 7325 7700 8091 8504 8938 9394 Legal Assistant 553 5624 5911 6212 6529 6862 7212
Library Manager I 609 7436 7816 8213 8633 9073 9535
Library Manager II 619 7817 8216 8633 9074 9538 10023
Library Tech & Support Services Mgr 619 7817 8216 8633 9074 9538 10023 Parks Maintenance Supervisor 594 6900 7253 7621 8010 8419 8848 Payroll Specialist 573 6214 6530 6864 7214 7582 7969
Permit Supervisor 594 6900 7253 7621 8010 8419 8848
Project Development Coordinator 606 7325 7700 8091 8504 8938 9394 Public Works Maintenance Supervisor 594 6900 7253 7621 8010 8419 8848 Records Coordinator 566 6001 6307 6629 6966 7322 7695
Recreation Services Supervisor 599 7074 7436 7814 8213 8632 9071 Senior Accountant 597 7004 7362 7736 8131 8546 8981
Senior Buyer 581 6467 6796 7144 7508 7890 8293
Senior Civil Engineer 658 9494 9980 10487 11022 11585 12175 Senior Contract Administrator 626 8094 8507 8940 9397 9877 10379 Senior Fire Inspection Specialist 615 7662 8054 8463 8895 9349 9825 246
39 APPENDIX A (CONTINUED)

ORANGE MANAGEMENT ASSOCIATION

MONTHLY SALARY RANGES

CLASSIFICATION TITLE RANGE STEP
A
STEP
B
STEP
C
STEP
D
STEP
E
STEP
F
Senior GIS Analyst 649 9078 9542 10027 10539 11077 11641 Senior Landscape Coordinator 626 8094 8507 8940 9397 9877 10379 Senior Legal Assistant 573 6214 6530 6864 7214 7582 7969 Senior Payroll Specialist 583 6531 6865 7215 7583 7970 8377 Senior Plan Check Engineer 658 9494 9980 10487 11022 11585 12175 Senior Planner 629 8216 8636 9074 9538 10025 10535
Senior Water Quality Inspector 594 6900 7253 7621 8010 8419 8848 Traffic Operations Superintendent 614 7624 8014 8421 8851 9302 9776 Tree Services Coordinator 606 7325 7700 8091 8504 8938 9394 Water Maintenance Supervisor 594 6900 7253 7621 8010 8419 8848 Water Quality Inspector 574 6245 6563 6898 7250 7620 8008 247
Agenda Item
City Council
Item #: 8.1. 8/26/2025 File #: 25-0271
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Public Hearing to consider Introduction and First Reading of an ordinance amending provisions in Title 17 of the Orange Municipal Code relating to the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant, subject to special use regulations; and finding of California Environmental Quality Act (CEQA) exemption. Ordinance No. 13-25.

2. SUMMARY
The proposed Ordinance amends certain provisions of Title 17 (Zoning Ordinance) of the Orange Municipal Code (OMC) to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted land use in certain zoning districts, subject to special use regulations. In these instances, a conditional use permit would no longer be required.

3. RECOMMENDED ACTION

1. Conduct and close the public hearing.

2. Introduce and conduct First Reading of Ordinance No. 13-25. An Ordinance of the City Council of the City of Orange amending Title 17 (Zoning) of the Orange Municipal Code to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted use in certain zoning districts subject to special use regulations.

3. Find the ordinance categorically exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Sections 15061(b)(3).

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

2.12: Update Zoning Ordinance for process clarity and improve efficiency for new businesses.

6. DISCUSSION AND BACKGROUND
The City of Orange has historically regulated the on-site sale and service of alcoholic beverages at a restaurant through the conditional use permit (CUP) process, which requires a discretionary review by the Planning Commission in order to operate with the sale and service of alcoholic beverages.

The CUP entitlement process has imposed risk, time, and cost burdens on restaurant operators, particularly those for whom alcohol service is a customary, incidental component of their dining experience. The proposed ordinance removes unnecessary entitlement hurdles for responsible operators by establishing an administrative review process for those restaurants agreeing to operate City of Orange Page 1 of 3 Printed on 8/21/2025
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Item #: 8.1. 8/26/2025 File #: 25-0271
operators by establishing an administrative review process for those restaurants agreeing to operate under a prescribed set of special use regulations. This administrative process eliminates the need for a discretionary review by the Planning Commission and related public notification. This streamlined process aims to promote an expedited business practice, reduce administrative burden, and encourage the development of a vibrant restaurant scene aligned with the City’s economic development goals.

Special Use Regulations
The special use regulations are the same as those the City has historically placed on restaurants as conditions of approval through the CUP process, and will now be applied in a more efficient, predictable format. The ordinance is not applicable to bars, nightclubs, off-sale establishments, or any restaurants that are unable to conform to the special use regulations.

To qualify, a restaurant must meet the State definition of a “bona fide public eating place,” which includes operating a full kitchen and regularly serving meals. In place of the CUP, applicants would apply for an Alcohol Exemption Permit, or AEP, and agree to comply with a comprehensive list of special use regulations. These include limits on hours of operation, prohibitions on live entertainment and dance floors, and requirements for security lighting, cameras, and operational plans. Restaurants must also maintain food sales as their primary revenue source, and their compliance may be reviewed annually by both the Community Development Director and/or the Police Chief or designees. Importantly, any business seeking to provide the sale and/or service of alcohol that does not wish to meet the special use regulations may still apply for a traditional CUP with a discretionary review by Planning Commission at a public hearing.

Sensitive Receptors
The proposed ordinance takes into consideration the potential for alcohol sales in proximity to sensitive receptors. Specifically, Section 17.30.025.A.26 of the proposed ordinance provides a separation requirement from sensitive receptors, and states, “Alcohol service is not allowed for outdoor dining areas that are located within 100 feet of a sensitive receptor (residential uses, schools, parks, or religious institutions), where the outdoor dining area is oriented to face such sensitive receptor.”
Planning Commission Action
The Planning Commission conducted a public hearing on the proposed ordinance on June 2, 2025.

At that time the Commission requested clarification on the administration of the alcohol exemption permit, as well as additional content related to the proposed operating condition addressing the prohibition of generic drink specials or happy hours given that this is a common offering at Orange restaurants, and continued the hearing to July 7, 2025, in order for staff to give further consideration to this topic. At the July 7, 2025, Planning Commission meeting, the Commission voted 5-2 to recommend that the City Council adopt the draft ordinance, with the only modification being the removal of Condition #20, which is the prohibition of generic drink specials or happy hour promotions (Section 17.30.025.A.20). If the City Council moves to approve this ordinance and chooses to accept this modification by Planning Commission, it would need to be included in their motion to approve the ordinance.

7. ENVIRONMENTAL REVIEW
The proposed project is not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense City of Orange Page 2 of 3 Printed on 8/21/2025
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Item #: 8.1. 8/26/2025 File #: 25-0271
(CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that it would have a significant effect on the environment.

8. ATTACHMENTS
· Attachment 1 - Ordinance No. 13-25 (Clean)
· Attachment 2 - Ordinance No. 13-25 (Redlined)
· Attachment 3 - Planning Commission Staff Report, June 2, 2025 · Attachment 4 - Planning Commission Staff Report, July 7, 2025 · Attachment 5 - Planning Commission Metting Minutes, June 2, 2025 · Attachment 6 - Planning Commission Metting Minutes, July 7, 2025 City of Orange Page 3 of 3 Printed on 8/21/2025
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Agenda Item
City Council
Item #: 8.1. 8/26/2025 File #: 25-0271
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Public Hearing to consider introduction and First Reading of an ordinance amending provisions in Title 17 of the Orange Municipal Code relating to the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant, subject to special use regulations; and finding of CEQA exemption. Ordinance No. 13-25.

2. SUMMARY
The proposed Ordinance amends certain provisions of Title 17 (Zoning Ordinance) of the Orange Municipal Code (OMC) to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted land use in certain zoning districts, subject to special use regulations. In these instances, a conditional use permit would no longer be required.

3. RECOMMENDED ACTION

1. Conduct and close the public hearing.

2. Introduce and conduct First Reading of Ordinance No. 13-25. An Ordinance of the City Council of the City of Orange amending Title 17 (Zoning) of the Orange Municipal Code to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted use in certain zoning districts subject to special use regulations.

3. Find the ordinance categorically exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Sections 15061(b)(3).

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

2.12: Update Zoning Ordinance for process clarity and improve efficiency for new businesses.

6. DISCUSSION AND BACKGROUND
The City of Orange has historically regulated the on-site sale and service of alcoholic beverages at a restaurant through the conditional use permit (CUP) process, which requires a discretionary review by the Planning Commission in order to operate with the sale and service of alcoholic beverages.

The CUP entitlement process has imposed risk, time, and cost burdens on restaurant operators, particularly those for whom alcohol service is a customary, incidental component of their dining experience. The proposed ordinance removes unnecessary entitlement hurdles for responsible operators by establishing an administrative review process for those restaurants agreeing to operate City of Orange Page 1 of 3 Printed on 8/20/2025
powered by Legistar™251
Item #: 8.1. 8/26/2025 File #: 25-0271
operators by establishing an administrative review process for those restaurants agreeing to operate under a prescribed set of special use regulations. This administrative process eliminates the need for a discretionary review by the Planning Commission and related public notification. This streamlined process aims to promote an expedited business practice, reduce administrative burden, and encourage the development of a vibrant restaurant scene aligned with the City’s economic development goals.

Special Use Regulations
The special use regulations are the same as those the City has historically placed on restaurants as conditions of approval through the CUP process, and will now be applied in a more efficient, predictable format. The ordinance is not applicable to bars, nightclubs, off-sale establishments, or any restaurants that are unable to conform to the special use regulations.

To qualify, a restaurant must meet the State definition of a “bona fide public eating place,” which includes operating a full kitchen and regularly serving meals. In place of the CUP, applicants would apply for an Alcohol Exemption Permit, or AEP, and agree to comply with a comprehensive list of special use regulations. These include limits on hours of operation, prohibitions on live entertainment and dance floors, and requirements for security lighting, cameras, and operational plans. Restaurants must also maintain food sales as their primary revenue source, and their compliance may be reviewed annually by both the Community Development Director and/or the Police Chief or designees. Importantly, any business seeking to provide the sale and/or service of alcohol that does not wish to meet the special use regulations may still apply for a traditional CUP with a discretionary review by Planning Commission at a public hearing.

Sensitive Receptors
The proposed ordinance takes into consideration the potential for alcohol sales in proximity to sensitive receptors. Specifically, Section 17.30.025.A.26 of the proposed ordinance provides a separation requirement from sensitive receptors, and states, “Alcohol service is not allowed for outdoor dining areas that are located within 100 feet of a sensitive receptor (residential uses, schools, parks, or religious institutions), where the outdoor dining area is oriented to face such sensitive receptor.”
Planning Commission Action
The Planning Commission conducted a public hearing on the proposed ordinance on June 2, 2025.

At that time the Commission requested clarification on the administration of the alcohol exemption permit, as well as additional content related to the proposed operating condition addressing the prohibition of generic drink specials or happy hours given that this is a common offering at Orange restaurants, and continued the hearing to July 7, 2025, in order for staff to give further consideration to this topic. At the July 7, 2025, Planning Commission meeting, the Commission voted 5-2 to recommend that the City Council adopt the draft ordinance, with the only modification being the removal of Condition #20, which is the prohibition of generic drink specials or happy hour promotions (Section 17.30.025.A.20). If the City Council moves to approve this ordinance and chooses to accept this modification by Planning Commission, it would need to be included in their motion to approve the ordinance.

7. ENVIRONMENTAL REVIEW
The proposed project is not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense City of Orange Page 2 of 3 Printed on 8/20/2025
powered by Legistar™252
Item #: 8.1. 8/26/2025 File #: 25-0271
(CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that it would have a significant effect on the environment.

8. ATTACHMENTS
· Attachment 1 - Ordinance No. 13-25 (Clean)
· Attachment 2 - Ordinance No. 13-25 (Redlined)
· Attachment 3 - Planning Commission Staff Report, June 2, 2025 · Attachment 4 - Planning Commission Staff Report, July 7, 2025 · Attachment 5 - Planning Commission Metting Minutes, June 2, 2025 · Attachment 6 - Planning Commission Metting Minutes, July 7, 2025 City of Orange Page 3 of 3 Printed on 8/20/2025
powered by Legistar™253
ORDINANCE NO. 13-25

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING TITLE 17 (ZONING)

OF THE ORANGE MUNICIPAL CODE TO ALLOW

THE SALE AND SERVICE OF ALCOHOLIC

BEVERAGES IN CONJUNCTION WITH THE

OPERATION OF A BONA FIDE RESTAURANT AS A

PERMITTED USE IN CERTAIN ZONING DISTRICTS

SUBJECT TO SPECIAL USE REGULATIONS
WHEREAS, the City Council is streamlining the entitlement process for restaurants which apply to offer alcoholic beverages for on-site sale and service in conjunction with food service, subject to special use regulations; and
WHEREAS, Title 17 requires a conditional use permit for the on-site sale and service of alcoholic beverages in many zones, even when associated with food service; and WHEREAS, the City of Orange seeks to promote a vibrant and economically sustainable business environment that supports the success of local restaurants, and small businesses; and WHEREAS, the sale and service of alcoholic beverages in conjunction with food service is a common among modern restaurants, and may enhance the dining experience for residents and visitors; and
WHEREAS, requiring a conditional use permit for alcohol service imposes unnecessary delays and costs on restaurant operators desiring alcohol service incidental to food service; and WHEREAS, the proposed ordinance continues to regulate alcohol sales by subjecting restaurants to special use regulations such as only allowing alcohol sales and service as an accessory use to food service, thereby minimizing potential impacts on nearby sensitive uses such as residences, schools, churches, or parks; and
WHEREAS, streamlining the entitlement process for restaurant uses is consistent with the General Plan in that it goals to enhance the vitality of commercial corridors, promotes local entrepreneurship, and fosters a pedestrian-oriented, mixed-use environment; and WHEREAS, the Planning Commission, having considered the proposed ordinance at a public hearing held on July 7, 2025, including review of the staff report, and having received public testimony on the item, determined the proposed ordinance serves the City’s economic development interests and, includes standard conditions to protect the public health, safety and general welfare; and
254
WHEREAS, the City Council, having now considered the proposed changes to the OMC at a public hearing held on August 26, 2025, 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:

That the recitals and findings contained herein are true and correct, incorporated herein, and with the public record, form the basis for this Ordinance.

SECTION II:

Section 17.04.032 of the Orange Municipal Code, “Zoning – Definitions – “M” Definitions,” is hereby amended to include the following definition, in alphabetical order:
“Meals” means the usual assortment of foods commonly ordered at various hours of the day when prepared within suitable interior kitchen facilities, containing the necessary appliances for washing, preparing, and cooking an assortment of foods.

SECTION III:

Section 17.04.037 of the Orange Municipal Code, “Zoning – Definitions – “R” Definitions,” is hereby amended to include the following definition, in alphabetical order:
“Restaurant, Bona Fide” means an establishment which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local department of health. Restaurants are distinguished from bars or nightclubs."
SECTION IV:

Table 17.13.030 of the Orange Municipal Code, “Zoning – Master Land Use Table – Permitted Uses,” is hereby amended to add the following:
255
ZONIN
G

RESIDENTIAL COMMERCIAL MIXED USE INDUSTR
IAL

AGRICULTU
RAL

OPEN SPACE
P
I
OVERL
AY
SAND
&
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EL
LAN
D
USE
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-15
R1-20 toR-140 &R1-RR2-6 toR2-8R-3R-4MHOPCP/C1CTRC2C3CROTMU-15SOTMU-15OTMU-24NMU-24UMUM1M2A1ROSHPIFP-1FP-2SG Food and/or alcohol uses—Includes uses that process, manufacture, package, prepare, distribute, store, sell or serve food and/or alcoholic beverages.

Resta
urants
w/alc
oholic
bever
ages
sales
- - - - - - - - P
*/
C
+
P
*/
C
+
P
*/
C
+
P
*/
C
+
P
*/
C
+
C
+
P*/C
+
P*/
C+
P*
/C
+
P
*/
C
+
C
+
C+ - - - - - - -
256
SECTION V:

Section 17.13.040 of the Orange Municipal Code, “Zoning – Master Land Use Table – Special Use Regulations,” is hereby amended to add the following:

III. Restaurant with alcoholic beverages sales. Bona Fide Restaurants that offer alcoholic beverages incidental to meal service to restaurant guests, shall be permitted by right if the applicant completes an Alcohol Exemption Permit Application and complies with all of the criteria and conditions as specified in Section 17.30.025.

SECTION VI:

Section 17.13.050 of the Orange Municipal Code, “Zoning – Master Land Use Table – Conditional Use Regulations,” is hereby amended to read as follows:

NN. Restaurant with alcoholic beverages sales. All restaurants serving alcohol, which are otherwise not eligible for an Alcohol Exemption Permit as specified in Section 17.30.025, shall comply with Section 17.30.030.

SECTION VII:

Section 17.13.050 of the Orange Municipal Code, “Zoning – Master Land Use Table – Conditional Use Regulations,” is hereby amended to read as follows:

PP. Sale of Alcoholic Beverages. A conditional use permit shall be required for both on-sale and off-sale of alcoholic beverages, in accordance with Section 17.30.030, when otherwise not eligible for an Alcohol Exemption Permit as specified in Section 17.30.025.

SECTION VIII:

Section 17.30.020 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls - Locations Permitted” is hereby amended to read as follows:

17.30.020 - Locations Permitted.

The Master Land Use Table in Chapter 17.13.030 indicates the zones in which the off-sale and on-sale of alcoholic beverages is permitted by the issuance of an alcohol exemption permit or a conditional use permit.

SECTION IX:

Section 17.30.025 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls – Alcohol Exemption Permit” is hereby added:

17.30.025 Alcohol Exemption Permit.
257
A. Bona Fide Restaurants that offer alcoholic beverages incidental to meal service to restaurant guests, shall be exempt from the provisions of the Conditional Use Permit requirement of Section 17.30.030 if the applicant completes an Alcohol Exemption Permit Application and complies with all of the following criteria and conditions:

1. In conjunction with the ongoing operation of the business, the premises shall comply with all requirements placed upon it by the California department of Alcoholic Beverage Control (ABC).

2. This Alcohol Exemption Permit (AEP) may be reviewed one year from the date of opening and may be reviewed each year thereafter. The review shall be conducted jointly by the Community Development Director and/or the Police Chief or designees.

The purpose of this review shall be to identify compliance with all of the conditions of Section 17.30.025. If it is determined that the restaurant is not in compliance with all of the conditions of Section 17.30.025, the AEP shall be revoked.

3. The activity level of the business shall be monitored by the Police Department to establish the level of police services used for the business. Should the level of police services demonstrate that the applicant has not controlled excessive or unnecessary activity resulting in high use of police services, then this Alcohol Exemption Permit shall be revoked.

4. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of merchant items that include food within the restaurant during the same time period.

The licensee shall at all times maintain records that reflect separately the gross sales of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept on a quarterly basis and shall be made available within 10 calendar days of a written request.

5. The use of the building is considered a restaurant, and interior construction will remain consistent with plans submitted with the Alcohol Exemption Permit application. No new interior construction resulting in a change to the floor plan will occur unless a revised floor plan is approved by the Community Development Department.

6. None of the floor area will be designated for dancing or live entertainment.

7. The subject ABC license shall not be exchanged for a public premise Type 48 (On-Sale General – Public Premises) license nor operated as a public premise.

8. The sale of alcoholic beverages for consumption off the premises shall be prohibited.

9. All alcohol shall be consumed on the subject site, within the defined licensed premises.

10. Signs shall be posted on all exits of the premises, that prohibit alcoholic beverages from leaving the confines of the premises.
258

11. The premises shall be maintained as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants.

12. The business indoor hours shall be limited to Sunday - Thursday 7:00am to 10:00pm and Friday and Saturday 7:00am to 12:00am. The hours of the outdoor area shall be limited to 7:00am to 10:00pm daily. These hours do not restrict employees from being on the premises before opening for preparations and deliveries or after closing for clean-up. Clean-up may not be conducted by patrons.

13. At no time shall there be a fee for entrance/admittance into the premises.

14. Employees and/or contract security personnel shall not consume any alcoholic beverages prior to or during their work shift. Any and all security officers provided shall comply with all state and local ordinances regulating their services, including, without limitation, Chapter 11.5 of Division 3 of the California Business and Profession Code.

15. The applicant agrees, as a condition of the City’s approval of the Alcohol Exemption Permit, to indemnify, defend, and hold harmless, at the applicant’s sole expense, the City of Orange and its officers, agents, and employees from and against any claim, action, or proceeding brought against the City arising from or in connection with the approval or implementation of the Alcohol Exemption Permit, excluding claims under CEQA, which is inapplicable to ministerial actions. The City will notify the applicant of any such claim or action and may participate in the defense thereof at the applicant’s expense. The obligation shall remain in effect for the duration of the permit.

16. Food service, with an available menu, shall be available until closing time on each day of operation.

17. 17. Alcoholic beverages served shall be served by restaurant employees permitted by law to serve alcohol.

18. Alcoholic beverages shall be sold and served in containers that are distinguishable from other non-alcoholic beverages sold at the premises.

19. There shall be no bar or lounge area upon the licensed premises maintained for the purpose of the sale, service, or consumption of alcoholic beverages directly to patrons for consumption.

20. There shall be no generic drink specials or happy hour promotions, such as: “half off drinks, two for one drinks, buy one get one free, etc.”

21. There should be no time when alcoholic beverages are sold at a ratio of two for one; no “stacking” of beverages, which means the serving of two alcoholic beverages at one time to the same customer; and no sales to an “empty chair”, which means that each customer must be physically present at the time of the order of any alcoholic beverage. 259

22. There shall be no promotions encouraging intoxication or drinking contests.

23. There shall be no requirement to purchase a minimum number of drinks.

24. No alcoholic beverages shall be sold from any self-service locations on the premises such as ice tubs, barrels, or any other such containers.

25. The petitioner shall not employ or permit any persons to solicit or encourage others, directly or indirectly, to buy them drinks in the licensed premises under any commission percentage salary or other profit.

26. The patio shall be enclosed and any gates located on the patio shall remain closed during business hours and used as an emergency exit only. Sign(s) shall be posted on all patio gate(s) indicating “Emergency Exit Only”.

27. Alcohol service is not allowed for outdoor dining areas that are located within 100 feet of a sensitive receptor (residential uses, schools, parks, or religious institutions), where the outdoor dining area is oriented to face such sensitive receptor.

28. The use of any amplified systems, televisions, outdoor sound system and paging system or any such devices are prohibited on any outdoor area.

29. An employee shall be able to monitor the patio from inside the business at all times to monitor alcohol.

30. No portion of the premises shall be deemed to be “private” for the purposes of dispensing alcoholic beverages to selected patrons, where the licensee recognizes any form of membership cards, keys or passes that would entitle the holder entry or preferential admittance or exclusive use of any portion of the mentioned premises.

31. The use of a promoter (such as a nightclub operator) or sub-leasing the premises to be used in conjunction with dancing and/or live entertainment is prohibited.

32. There shall be no live entertainment (including karaoke), disc jockey, amplified music, or dancing permitted on the premises at any time. Amplified sound over a built-in system designed for background music shall not be audible in such a manner to disturb the peace, quiet, and comfort of neighboring occupants, or any reasonable person residing or working in the area.

33. There shall be no special promotional events held on the property, unless a written request for such is received and approved by the City of Orange Community Development Director and the Police Department’s Vice Unit at least two weeks in advance of the event.
260

34. There shall be no pool tables or coin-operated or token-operated games maintained upon the premises at any time.

35. The parking lot of the premises shall be equipped with lighting of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on or about the parking lot.

36. Lighting in the parking area of the premises shall be directed, positioned and shielded in such a manner so as not to unreasonably illuminate the window area of nearby residences. The owner shall install and maintain a security camera system capable of readily identifying facial features, and stature of all patrons entering the establishment during hours of operation and monitoring the rear of the premises, to the satisfaction of the Police Department. The camera system shall keep a minimum 30-day library of events, which shall be available for downloading and inspection by the Orange Police Department.

37. Any music or amplified sound on the premises, including an outdoor patio area, shall not be audible beyond the premises in such a manner as to disturb the peace, quiet and comfort of neighboring occupants or any reasonable person residing or working in the area.

38. The permittee shall be responsible for maintaining the area adjacent to the premises over which they have control free of litter.

39. There shall be no exterior advertising promoting or indicating the availability of alcoholic beverages. This includes advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages that are clearly visible to the exterior shall constitute a violation of this condition.

40. Prior to occupancy, a security plan shall be submitted to the City for review and approval. The plan shall address both physical and operational security issues. The business shall operate in accordance with the approved security plan.

41. Exterior doors and windows, as well as the interior of the business, shall be protected by a monitored alarm system, which shall detect an attempted entry or presence of people within the business during closing hours.

42. Uniformed security will be provided by the applicant on days/nights when special event broadcast(s) are being promoted. One security guard per 100 customers shall be present during these broadcasts/events.

43. Provide an interior night light to illuminate the interior and maintain an unobstructed view through storefront windows to provide police patrol officers the ability to observe unlawful activity within the business.
261

44. The permittee shall maintain on the premises a written security policy and procedures manual addressing, at a minimum, the following items: handling obviously intoxicated persons; establishing a reasonable ratio of employees to patrons, based upon activity level, in order to monitor alcoholic beverage sales and patron behavior; handing patrons involved in fighting or arguing; handling loitering about the building and in the immediate adjacent area that is owned, leased, rented, or used under agreement by the permittee(s); verifying age/checking identification of patrons; warning patrons of reaching their drinking limit/potential intoxication and refusing to serve; calling the police regarding observed or reported criminal activity.

45. The applicant shall comply with all federal, state, and local municipal laws, including local City ordinances and regulations. Any violations of these laws in conjunction with this use may be a cause for revocation of this permit.

46. All employees of petitioner who sell or serve alcoholic beverage products shall be required to complete a training program in alcoholic beverage compliance, crime prevention techniques and the handling of violence. For new employees of petitioner, such training program must be completed within 30 days of the date of hire. The employees must provide the City of Orange Police Department, Investigative Services Division a copy of the completed Alcohol Management Program (AMP) certificate.

47. Graffiti shall be removed from the exterior walls and windows of the premises within 72 hours of discovery.

48. Commencement of operations on the premises under this exemption shall constitute Owner’s and Operator’s acknowledgement and acceptance of all conditions contained herein and that failure to comply with any and all conditions shall constitute grounds for potential revocation of the exemption approval.

B. The approval of an Alcohol Exemption Permit shall be effective for a period of two years from its effective date, after which time, a new determination is required if relevant California Department of Alcoholic Beverage Control permits have not been obtained or if alcohol service is not actively pursued.

SECTION X:

Section 17.30.030 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls – Conditional Use Permit Required” is hereby amended to read as follows:

A. In order to fulfill the purposes of this chapter, the retail sale of alcoholic beverages is subject to approval of a conditional use permit, unless otherwise eligible for an Alcohol Exemption Permit as specified in Section 17.30.025. The Planning Commission has the authority to issue conditional use permits for the following, except when the application is combined with other submittals that require City Council review, the decision of the Planning Commission is appealed, or as otherwise noted below:
262
SECTION XI:

Section 17.30.050 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls – Upgrading Licenses” is hereby amended to read as follows:

Any upgrading of existing licenses to a more restrictive license shall be regulated as follows:

A. A change from an on-sale beer license for a restaurant to an on-sale beer and wine license for a restaurant shall not require the issuance of a conditional use permit, but shall require an Alcohol Exemption Permit as specified in Section 17.30.025.

B. A change from an off-sale beer license to an off-sale beer and wine license shall not require the issuance of a conditional use permit.

C. A change from an on-sale alcoholic beverage license for a restaurant to include the on-site brewing of beer shall not require the issuance of a conditional use permit, but shall require an Alcohol Exemption Permit as specified in Section 17.30.025.

D. A change from either an on-sale or off-sale beer license or beer and wine license, to an onsale or off-sale general license shall require the issuance of a new conditional use permit, when otherwise not eligible for an Alcohol Exemption Permit as specified in Section

17.30.025.

E. A license associated with a nonconforming use may be transferred to a new owner, but it may not be upgraded without the approval of an Alcohol Exemption Permit or Conditional Use Permit as specified in 17.30.025 or 17.30.030.

SECTION XII:

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

SECTION XIII:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this interim 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. 263
SECTION XIV:

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

ADOPTED this ____ day of ________________, 2025.

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

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

Wayne W. Winthers
Interim 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 extension of an interim Ordinance was duly passed and adopted at the regular meeting of the City Council held on the ___ day of ________, 2025 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
________________________________________
Pamela Coleman, City Clerk, City of Orange
264
ATTACHMENT 2
DRAFT CITY COUNCIL ORDINANCE XX-25 - ALCOHOL EXEMPTION PERMIT (REDLINED)
265
ORDINANCE NO. XX-25

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ORANGE AMENDING TITLE 17 (ZONING) OF THE

ORANGE MUNICIPAL CODE TO ALLOW THE SALE

AND SERVICE OF ALCOHOLIC BEVERAGES IN

CONJUNCTION WITH THE OPERATION OF A BONA

FIDE RESTAURANT AS A PERMITTED USE IN CERTAIN

ZONING DISTRICTS SUBJECT TO SPECIAL USE

REGULATIONS
WHEREAS, the City Council is streamlining the entitlement process for restaurants which apply to offer alcoholic beverages for on-site sale and service in conjunction with food service, subject to special use regulations; and
WHEREAS, Title 17 requires a conditional use permit for the on-site sale and service of alcoholic beverages in many zones, even when associated with food service; and WHEREAS, the City of Orange seeks to promote a vibrant and economically sustainable business environment that supports the success of local restaurants, and small businesses; and WHEREAS, the sale and service of alcoholic beverages in conjunction with food service is a common among modern restaurants, and may enhance the dining experience for residents and visitors; and
WHEREAS, requiring a conditional use permit for alcohol service imposes unnecessary delays and costs on restaurant operators desiring alcohol service incidental to food service; and WHEREAS, the proposed ordinance continues to regulate alcohol sales by subjecting restaurants to special use regulations such as only allowing alcohol sales and service as an accessory use to food service, thereby minimizing potential impacts on nearby sensitive uses such as residences, schools, churches, or parks; and
WHEREAS, streamlining the entitlement process for restaurant uses is consistent with the General Plan in that it goals to enhance the vitality of commercial corridors, promotes local entrepreneurship, and fosters a pedestrian-oriented, mixed-use environment; and WHEREAS, the Planning Commission, having considered the proposed ordinance at a public hearing held on July 7, 2025, including review of the staff report, and having received public testimony on the item, determined the proposed ordinance serves the City’s economic development interests and, includes standard conditions to protect 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. 266

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

SECTION I:

That the recitals and findings contained herein are true and correct, incorporated herein, and with the public record, form the basis for this Ordinance.

SECTION II:

Section 17.04.032 of the Orange Municipal Code, “Zoning – Definitions – “M” Definitions,” is hereby amended to include the following definition, in alphabetical order:
“Meals” means the usual assortment of foods commonly ordered at various hours of the day when prepared within suitable interior kitchen facilities, containing the necessary appliances for washing, preparing, and cooking an assortment of foods.

SECTION III:

Section 17.04.037 of the Orange Municipal Code, “Zoning – Definitions – “R” Definitions,” is hereby amended to include the following definition, in alphabetical order:
“Restaurant, Bona Fide” means an establishment which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local department of health. Restaurants are distinguished from bars or nightclubs."
SECTION IV:

Table 17.13.030 of the Orange Municipal Code, “Zoning – Master Land Use Table – Permitted Uses,” is hereby amended to add the following:
267
ZONIN
G

RESIDENTIAL COMMERCIAL MIXED USE INDUSTR
IAL

AGRICULTU
RAL

OPEN SPACE
P
I
OVERL
AY
SAND
&
GRAV
EL
LAN
D
USE
R1-5R1-6 Rto
-15
R1-20 to R1R-140 &
-R
R2-6 to R2-8R-3R-4MHOPCP/C1CTRC2C3CROTMU-15SOTMU-15 OTMU-24 NMU-24 UMUM1M2A1ROSHPIFP-1FP-2SG Food and/or alcohol uses—Includes uses that process, manufacture, package, prepare, distribute, store, sell or serve food and/or alcoholic beverages.

Resta
urants
w/alco
holic
bevera
ges
sales
- - - - - - - - P
*/
C
+
P
*/
C
+
P
*/
C
+
P
*/
C
+
P
*/
C
+
C
+
P*/C
+
P*/
C+
P*
/C
+
P
*/
C
+
C
+
C+ - - - - - - -
268

Page 5 of 12 ends

SECTION V:

Section 17.13.040 of the Orange Municipal Code, “Zoning – Master Land Use Table – Special Use Regulations,” is hereby amended to add the following:

III. Restaurant with alcoholic beverages sales. Bona Fide Restaurants that offer alcoholic beverages incidental to meal service to restaurant guests, shall be permitted by right if the applicant completes an Alcohol Exemption Permit Application and complies with all of the criteria and conditions as specified in Section 17.30.025.

SECTION VI:

Section 17.13.050 of the Orange Municipal Code, “Zoning – Master Land Use Table – Conditional Use Regulations,” is hereby amended to add the following:

NN. Restaurant with alcoholic beverages sales. All restaurants serving alcohol, which are otherwise not eligible for an Alcohol Exemption Permit as specified in Section 17.30.025, shall comply with Section 17.30.010030.

SECTION VII:

Section 17.13.050 of the Orange Municipal Code, “Zoning – Master Land Use Table – Conditional Use Regulations,” is hereby amended to add the following:

PP. Sale of Alcoholic Beverages. A conditional use permit shall be required for both on-sale and off-sale of alcoholic beverages, in accordance with Section 17.30.010030, when otherwise not eligible for an Alcohol Exemption Permit as specified in Section 17.30.025.

SECTION VIII:

Section 17.30.020 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls - Locations Permitted” is hereby amended to read as follows:

17.30.020 - Locations Permitted.

The Master Land Use Table in Chapter 17.13.030 indicates the zones in which the offsale and on-sale of alcoholic beverages is permitted by the issuance of an alcohol exemption permit or the issuance of a conditional use permit.

SECTION IX:

Section 17.30.025 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls – Alcohol Exemption Permit” is hereby added to read as follows:

17.30.025 Alcohol Exemption Permit.
269

Page 6 of 12 ends

A. Bona Fide Restaurants that offer alcoholic beverages incidental to meal service to restaurant guests, shall be exempt from the provisions of the Conditional Use Permit requirement of Section 17.30.030 if the applicant completes an Alcohol Exemption Permit Application and complies with all of the following criteria and conditions:

1. In conjunction with the ongoing operation of the business, the premises shall comply with all requirements placed upon it by the California department of Alcoholic Beverage Control (ABC).

2. This Alcohol Exemption Permit (AEP) may be reviewed one year from the date of opening and may be reviewed each year thereafter. The review shall be conducted jointly by the Community Development Director and/or the Police Chief or designees. The purpose of this review shall be to identify compliance with all of the conditions of Section 17.30.025. If it is determined that the restaurant is not in compliance with all of the conditions of Section

17.30.025, the AEP shall be revoked.

3. The activity level of the business shall be monitored by the Police Department to establish the level of police services used for the business. Should the level of police services demonstrate that the applicant has not controlled excessive or unnecessary activity resulting in high use of police services, then this Alcohol Exemption Permit shall be revoked.

4. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of merchant items that include food within the restaurant during the same time period. The licensee shall at all times maintain records that reflect separately the gross sales of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept on a quarterly basis and shall be made available within 10 calendar days of a written request.

5. The use of the building is considered a restaurant, and interior construction will remain consistent with plans submitted with the Alcohol Exemption Permit application. No new interior construction resulting in a change to the floor plan will occur unless a revised floor plan is approved by the Community Development Department.

6. None of the floor area will be designated for dancing or live entertainment.

7. The subject ABC license shall not be exchanged for a public premise Type 48 (OnSale General – Public Premises) license nor operated as a public premise.

8. The sale of alcoholic beverages for consumption off the premises shall be prohibited.

9. All alcohol shall be consumed on the subject site, within the defined licensed premises.

10. Signs shall be posted on all exits of the premises, that prohibit alcoholic beverages from leaving the confines of the premises.

11. The premises shall be maintained as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants. 270

Page 7 of 12 ends

12. The business indoor hours shall be limited to Sunday - Thursday 7:00am to 10:00pm and Friday and Saturday 7:00am to 12:00am. The hours of the outdoor area shall be limited to 7:00am to 10:00pm daily. These hours do not restrict employees from being on the premises before opening for preparations and deliveries or after closing for clean-up. Clean-up may not be conducted by patrons.

13. At no time shall there be a fee for entrance/admittance into the premises.

14. Employees and/or contract security personnel shall not consume any alcoholic beverages prior to or during their work shift. Any and all security officers provided shall comply with all state and local ordinances regulating their services, including, without limitation, Chapter 11.5 of Division 3 of the California Business and Profession Code.

15. The applicant agrees, as a condition of the City’s approval of the Alcohol Exemption Permit, to indemnify, defend, and hold harmless, at the applicant’s sole expense, the City of Orange and its officers, agents, and employees from and against any claim, action, or proceeding brought against the City arising from or in connection with the approval or implementation of the Alcohol Exemption Permit, excluding claims under CEQA, which is inapplicable to ministerial actions. The City will notify the applicant of any such claim or action and may participate in the defense thereof at the applicant’s expense. The obligation shall remain in effect for the duration of the permit.

16. Food service, with an available menu, shall be available until closing time on each day of operation.

17. Alcoholic beverages served shall be served by restaurant employees permitted by law to serve alcohol.

18. Alcoholic beverages shall be sold and served in containers that are distinguishable from other non-alcoholic beverages sold at the premises.

19. There shall be no bar or lounge area upon the licensed premises maintained for the purpose of the sale, service, or consumption of alcoholic beverages directly to patrons for consumption.

20. There shall be no generic drink specials or happy hour promotions, such as: “half off drinks, two for one drinks, buy one get one free, etc.”

21. There should be no time when alcoholic beverages are sold at a ratio of two for one; no “stacking” of beverages, which means the serving of two alcoholic beverages at one time to the same customer; and no sales to an “empty chair”, which means that each customer must be physically present at the time of the order of any alcoholic beverage.

22.There shall be no promotions encouraging intoxication or drinking contests. 271

Page 8 of 12 ends

23. There shall be no requirement to purchase a minimum number of drinks.

24. No alcoholic beverages shall be sold from any self-service locations on the premises such as ice tubs, barrels, or any other such containers.

25. The petitioner shall not employ or permit any persons to solicit or encourage others, directly or indirectly, to buy them drinks in the licensed premises under any commission percentage salary or other profit.

26. The patio shall be enclosed and any gates located on the patio shall remain closed during business hours and used as an emergency exit only. Sign(s) shall be posted on all patio gate(s) indicating “Emergency Exit Only”.

27. Alcohol service is not allowed for outdoor dining areas that are located within 100 feet of a sensitive receptor (residential uses, schools, parks, or religious institutions), where the outdoor dining area is oriented to face such sensitive receptor.

28. The use of any amplified systems, televisions, outdoor sound system and paging system or any such devices are prohibited on any outdoor area.

29. An employee shall be able to monitor the patio from inside the business at all times to monitor alcohol.

30. No portion of the premises shall be deemed to be “private” for the purposes of dispensing alcoholic beverages to selected patrons, where the licensee recognizes any form of membership cards, keys or passes that would entitle the holder entry or preferential admittance or exclusive use of any portion of the mentioned premises.

31. The use of a promoter (such as a nightclub operator) or sub-leasing the premises to be used in conjunction with dancing and/or live entertainment is prohibited.

32. There shall be no live entertainment (including karaoke), disc jockey, amplified music, or dancing permitted on the premises at any time. Amplified sound over a built-in system designed for background music shall not be audible in such a manner to disturb the peace, quiet, and comfort of neighboring occupants, or any reasonable person residing or working in the area.

33. There shall be no special promotional events held on the property, unless a written request for such is received and approved by the City of Orange Community Development Director and the Police Department’s Vice Unit at least two weeks in advance of the event.

34. There shall be no pool tables or coin-operated or token-operated games maintained upon the premises at any time.

35. The parking lot of the premises shall be equipped with lighting of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on or about the parking lot.
272

Page 9 of 12 ends

36. Lighting in the parking area of the premises shall be directed, positioned and shielded in such a manner so as not to unreasonably illuminate the window area of nearby residences. The owner shall install and maintain a security camera system capable of readily identifying facial features, and stature of all patrons entering the establishment during hours of operation and monitoring the rear of the premises, to the satisfaction of the Police Department. The camera system shall keep a minimum 30-day library of events, which shall be available for downloading and inspection by the Orange Police Department.

37. Any music or amplified sound on the premises, including an outdoor patio area, shall not be audible beyond the premises in such a manner as to disturb the peace, quiet and comfort of neighboring occupants or any reasonable person residing or working in the area.

38. The permittee shall be responsible for maintaining the area adjacent to the premises over which they have control free of litter.

39. There shall be no exterior advertising promoting or indicating the availability of alcoholic beverages. This includes advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages that are clearly visible to the exterior shall constitute a violation of this condition.

40. Prior to occupancy, a security plan shall be submitted to the City for review and approval. The plan shall address both physical and operational security issues. The business shall operate in accordance with the approved security plan.

41. Exterior doors and windows, as well as the interior of the business, shall be protected by a monitored alarm system, which shall detect an attempted entry or presence of people within the business during closing hours.

42. Uniformed security will be provided by the applicant on days/nights when special event broadcast(s) are being promoted. One security guard per 100 customers shall be present during these broadcasts/events.

43. Provide an interior night light to illuminate the interior and maintain an unobstructed view through storefront windows to provide police patrol officers the ability to observe unlawful activity within the business.

44. The permittee shall maintain on the premises a written security policy and procedures manual addressing, at a minimum, the following items: handling obviously intoxicated persons; establishing a reasonable ratio of employees to patrons, based upon activity level, in order to monitor alcoholic beverage sales and patron behavior; handing patrons involved in fighting or arguing; handling loitering about the building and in the immediate adjacent area that is owned, leased, rented, or used under agreement by the permittee(s); verifying age/checking identification of patrons; warning patrons of reaching their drinking limit/potential intoxication and refusing to serve; calling the police regarding observed or reported criminal activity. 273

Page 10 of 12 ends

45. The applicant shall comply with all federal, state, and local municipal laws, including local City ordinances and regulations. Any violations of these laws in conjunction with this use may be a cause for revocation of this permit.

46. All employees of petitioner who sell or serve alcoholic beverage products shall be required to complete a training program in alcoholic beverage compliance, crime prevention techniques and the handling of violence. For new employees of petitioner, such training program must be completed within 30 days of the date of hire. The employees must provide the City of Orange Police Department, Investigative Services Division a copy of the completed Alcohol Management Program (AMP) certificate.

47. Graffiti shall be removed from the exterior walls and windows of the premises within 72 hours of discovery.

48. Commencement of operations on the premises under this exemption shall constitute Owner’s and Operator’s acknowledgement and acceptance of all conditions contained herein and that failure to comply with any and all conditions shall constitute grounds for potential revocation of the exemption approval.

B. The approval of an Alcohol Exemption Permit shall be effective for a period of two years from its effective date, after which time, a new determination is required if relevant California Department of Alcoholic Beverage Control permits have not been obtained or if alcohol service is not actively pursued.

SECTION X:

Section 17.30.030 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls – Conditional Use Permit Required” is hereby amended to as follows:

A. In order to fulfill the purposes of this chapter, the retail sale of alcoholic beverages is subject to approval of a conditional use permit, unless otherwise eligible for an Alcohol Exemption Permit as specified in Section 17.30.025. The Planning Commission has the authority to issue conditional use permits for the following, except when the application is combined with other submittals that require City Council review, the decision of the Planning Commission is appealed, or as otherwise noted below:

SECTION XI:

Section 17.30.050 of the Orange Municipal Code, “Zoning – Alcoholic Beverage Controls – Upgrading Licenses” is hereby amended to add the following:

Any upgrading of existing licenses to a more restrictive license shall be regulated as follows:

A. A change from an on-sale beer license for a restaurant to an on-sale beer and wine license for a restaurant shall not require the issuance of a conditional use permit, but shall require an Alcohol Exemption Permit as specified in Section 17.30.025. 274

Page 11 of 12 ends

B. A change from an off-sale beer license to an off-sale beer and wine license shall not require the issuance of a conditional use permit.

C. A change from an on-sale alcoholic beverage license for a restaurant to include the on-site brewing of beer shall not require the issuance of a conditional use permit, but shall require an Alcohol Exemption Permit as specified in Section 17.30.025.

D. A change from either an on-sale or off-sale beer license or beer and wine license, to an onsale or off-sale general license shall require the issuance of a new conditional use permit, when otherwise not eligible for an Alcohol Exemption Permit as specified in Section 17.30.025.

E. A license associated with a nonconforming use may be transferred to a new owner, but it may not be upgraded without the approval of an Alcohol Exemption Permit or Conditional Use Permit as specified in 17.30.025 or 17.30.030.

SECTION XII:

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

SECTION XIII:

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

SECTION XIV:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause 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 ________________, 2025.
_____________________________________
Daniel R. Slater, Mayor, City of Orange
275

Page 12 of 12 ends

ATTEST:
________________________________________
Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing extension of an interim Ordinance was duly passed and adopted at the regular meeting of the City Council held on the ___ day of ________, 2025 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
________________________________________
Pamela Coleman, City Clerk, City of Orange
276
Agenda Item
Planning Commission
Item #: 4.2. 6/2/2025 File #: 25-0319
TO: Chair and Members of the Planning Commission
THRU: Anna Pehoushek, Assistant Community Development Director FROM: Arlen Beck, Associate Planner

1. SUBJECT
Public Hearing to consider an Ordinance amending provisions in Title 17 of the Orange Municipal Code relating to the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant and finding of CEQA exemption.

2. SUMMARY
The proposed Ordinance amends certain provisions of Title 17 (Zoning Ordinance) of the Orange Municipal Code (OMC) to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted land use, rather than conditionally permitted, subject to standardized operating conditions in certain zoning districts.

3. RECOMMENDED ACTION

1. Conduct and close the Public Hearing.

2. Adopt Planning Commission Resolution No. PC 05-25 recommending that the City Council adopt an Ordinance amending Title 17 of the Orange Municipal Code to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted use in certain zoning districts when the applicant agrees to standardized operating conditions.

3. Find the proposed Ordinance Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

4. AUTHORIZING GUIDELINES
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 historically regulated the on-site sale and service of alcoholic beverages through the conditional use permit (CUP) process, requiring restaurant applicants to undergo discretionary review before offering alcoholic beverages. This regulatory approach was designed to minimize adverse impacts to surrounding uses. The CUP entitlement process has imposed risk, time, and cost burdens on restaurant operators, particularly those for whom alcohol service is a customary, incidental component of their dining experience. The sale and service of alcoholic beverages for onsite consumption is a common feature of modern restaurants, and there is a need to refresh City standards to reduce burdens on restaurants, promote economic development, and streamline the City of Orange Page 1 of 3 Printed on 5/29/2025
powered by Legistar™277
Item #: 4.2. 6/2/2025 File #: 25-0319
standards to reduce burdens on restaurants, promote economic development, and streamline the process for effective use of staff resources.

6. PROJECT DESCRIPTION
The proposed Ordinance would allow restaurants with the on-site sale and service of alcoholic beverages as a permitted use if the applicant agrees to the standardized operational conditions. The standardized operational conditions were developed in coordination with the Orange Police Department and also informed by the standard conditions of approval that have been applied by the City to alcohol-related CUPs over time. This amendment would apply within commercial zoning districts where restaurants without alcohol sales are already permitted by right. The change would enable restaurant operators to serve alcohol without requiring a CUP, provided agreed upon operation standards are followed to ensure alcohol remains incidental to food service.

Under the proposed Ordinance, qualifying restaurants must meet the definition of a "bona fide public eating place" as defined by California Business and Professions Code Section 23038, which requires the maintenance of a functioning kitchen and the regular preparation and service of meals. The alcohol service must be subordinate to the food operation, with the primary business activity centered on meal service rather than alcohol consumption.

The proposed Ordinance does not extend to bars, taverns, or nightclubs, nor does it allow live entertainment or dance floors. More specifically, restaurant applicants that request to operate outside of the standardized conditions would not qualify for the expedited process; they would still require CUPs, which would be reviewed by Planning Commission at a public hearingas is the current process.

The proposed amendment will reduce regulatory burdens for restaurant owners by eliminating the need for discretionary permitting when the sale of alcohol is accessory to dining. No significant impacts are anticipated because the proposed Ordinance includes standardized operating conditions.

By allowing for alcohol service within clearly defined parameters, the proposed Ordinance supports local business development while maintaining consistency with the City's land use goals, economic development strategy, and General Plan policies related to vibrant commercial corridors and highquality dining experiences.

Staff recommends these changes to the Planning Commission.

7. PROJECT ANALYSIS
The proposed Ordinance supports the local dining economy by streamlining the entitlement process, provides standardized operating conditions for the sale and service of alcohol for on-site consumption in conjunction with a restaurant, and continues to minimize impacts to adjacent land uses. The standardized operating conditions are the same as those historically placed on restaurants through the CUP process. The proposed Ordinance is not applicable to bars, nightclubs, off-sale establishments, or any restaurants that are unable to conform to the standardized conditions. The proposed Ordinance applies exclusively to restaurants with full kitchens and regular meal service, ensuring that alcohol remains secondary to dining.

Restaurants contribute to the local economy and quality of life. An undue entitlement process hinders the City’s competitiveness in attracting and retaining high-quality dining establishments. By removing unnecessary entitlement hurdles for responsible operators, the City aims to promote and expedited business practice, reduce administrative burden, and encourage the development of a vibrant restaurant scene aligned with City’s economic development goals. Standardized operating conditions will continue to regulate restaurants choosing to serve alcohol. These conditions, in the form of City of Orange Page 2 of 3 Printed on 5/29/2025
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Item #: 4.2. 6/2/2025 File #: 25-0319
will continue to regulate restaurants choosing to serve alcohol. These conditions, in the form of codified operating standards, are expected to provide the same effectiveness in deterring any adverse impacts.

No issues have been identified.

8. PUBLIC NOTICE
On May 8, 2025, the City published notice of the Planning Commission public hearing in the Orange City News. Notification was also posted at City Hall and on the City website on or before that date.

9. ENVIRONMENTAL REVIEW
The proposed ordinance is not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that it would have a significant effect on the environment. For this reason, no further CEQA documentation is required.

10. ADVISORY BOARD ACTION
No advisory board action was necessary for this ordinance.

11. ATTACHMENTS · Attachment 1 - Planning Commission Resolution No. PC 05-25 with Draft City Council Ordinance XX-25 (Clean)
· Attachment 2 - Draft City Council Ordinance XX-25 (Redlined) City of Orange Page 3 of 3 Printed on 5/29/2025
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Agenda Item
Planning Commission
Item #: 4.1. 7/7/2025 File #: 25-0405
TO: Chair and Members of the Planning Commission
THRU: Hayden Beckman, Planning Manager
FROM: Arlen Beck, Associate Planner

1. SUBJECT
Continued Public Hearing to consider an ordinance amending provisions in Title 17 of the Orange Municipal Code relating to the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant, subject to special use regulations. (Continued from June 2, 2025)

2. SUMMARY
On June 2, 2025, the Planning Commission continued this item to the July 7, 2025, regularly scheduled Planning Commission meeting to allow more time for staff to provide additional information requested in order for the Planning Commission to make a recommendation to the City Council.

The proposed Ordinance amends certain provisions of Title 17 (Zoning Ordinance) of the Orange Municipal Code (OMC) to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted land use in certain zoning districts, subject to special use regulations.

3. RECOMMENDED ACTION

1. Conduct and close the Public Hearing.

2. Adopt Planning Commission Resolution No. PC 05-25 recommending that the City Council adopt an Ordinance amending Title 17 of the Orange Municipal Code to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted use in certain zoning districts subject to special use regulations.

4. AUTHORIZING GUIDELINES
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 project background remains as presented in the June 2, 2025, PC staff report (Attachment 3).

This project is returning to the PC to provide additional information and clarification, as outlined in the Project Analysis section of this report.

6. PROJECT DESCRIPTION
The project description remains as presented in the June 2, 2025, PC staff report (Attachment 3).

7. PROJECT ANALYSIS
At the June 2, 2025, meeting the Planning Commission request additional information and City of Orange Page 1 of 3 Printed on 7/3/2025
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Item #: 4.1. 7/7/2025 File #: 25-0405
At the June 2, 2025, meeting the Planning Commission request additional information and clarification for the following items:

1. Revise the operating hours in condition 12 to correct the inconsistency in the hours specified.

2. Tie the Alcohol Exemption Permit to Business Operator and requiring a new Alcohol Exemption Pemit upon a change in operator.

3. Specify a sales records submission timeline in condition 4.

4. Add a distance requirement from sensitive receptors (residential, schools, churches) where outdoor dining would not be allowed.

5. Specify the minimum standard for the security cameras pursuant to condition 35.

6. Change the definition of “Meals” found in the proposed ordinance for clarity.

7. Clarification on “Happy Hour” restrictions, in regard to condition 20.

8. A potential public noticing requirement for Alcohol Exemption Permit applications.

Staff has made the following changes in response to the request listed above:

1. The operating hours in condition 12 have been revised to correct the inconsistency previously noted, the condition now states, “The business indoor hours shall be limited to Sunday - Thursday 7:00am to 10:00pm and Friday and Saturday 7:00am to 12:00am. The hours of the outdoor area shall be limited to 7:00am to 10:00pm daily. These hours do not restrict employees from being on the premises before opening for preparations and deliveries or after closing for clean-up. Clean-up may not be conducted by patrons.”

2. Staff did not include language to tie the Alcohol Exemption Permit to the business owner or operator. The intent of the ordinance is to implement an Alcohol Exemption Permit as a ministerial action and is to be administered as any other use subject to special use regulations found in OMC Section 17.13.040.

3. A sales record submission timeline was added to condition 4, the condition now states, “The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of merchant items that include food within the restaurant during the same time period. The licensee shall at all times maintain records that reflect separately the gross sales of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept on a quarterly basis and shall be made available within 10 calendar days of a written request.”

4. Condition number 27 was added into the proposed ordinance to provide a distance requirement from sensitive receptors, and states, “Alcohol service is not allowed for outdoor dining areas that are located within 100 feet of a sensitive receptor (residential uses, schools, parks, or religious institutions), where the outdoor dining area is oriented to face such sensitive receptor.”

5. Condition 35 (now condition 36) is updated to include a standard for the required security cameras. Condition 36 states, “Lighting in the parking area of the premises shall be directed, positioned and shielded in such a manner so as not to unreasonably illuminate the window area of nearby residences. The owner shall install and maintain a security camera system capable of readily identifying facial features, and stature of all patrons entering the establishment during hours of operation and monitoring the rear of the premises, to the City of Orange Page 2 of 3 Printed on 7/3/2025
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Item #: 4.1. 7/7/2025 File #: 25-0405
establishment during hours of operation and monitoring the rear of the premises, to the satisfaction of the Police Department. The camera system shall keep a minimum 30-day library of events, which shall be available for downloading and inspection by the Orange Police Department.”

6. The definition of “Meals” for Section 17.04.032 was changed, and now states, ““Meals” means the usual assortment of foods commonly ordered at various hours of the day when prepared within suitable interior kitchen facilities, containing the necessary appliances for washing, preparing, and cooking an assortment of foods.”

7. Condition 20 was updated to clarify “Happy Hour” restrictions, Condition 20 now states, “There shall be no generic drink specials or happy hour promotions, such as: “half off drinks, two for one drinks, buy one get one free, etc.” No alcoholic beverages will be discounted more than 30% off it’s regular price. The establishment may offer alcoholic beverages only in combination with non-alcoholic beverages at a reduced rate.”

8. A public noticing requirement was not included in the proposed ordinance. The intent of the ordinance is to implement an Alcohol Exemption Permit as a ministerial action and is proposed to be administered as any other use subject to special use regulations found in OMC Section

17.13.040, which do not have public noticing requirements.

8. PUBLIC NOTICE
This item does not require a public hearing notice because the item was continued to a date certain at the June 2, 2025, Planning Commission meeting.

9. ADVISORY BOARD ACTION
No advisory board action was necessary for this ordinance.

10. ATTACHMENTS
· Attachment 1 - Planning Commission Resolution No. PC 05-25 with Draft City Council Ordinance XX-25 (Clean)
· Attachment 2 - Draft City Council Ordinance XX-25 (Redlined) · Attachment 3 - Planning Commission Staff Report, June 2, 2025 City of Orange Page 3 of 3 Printed on 7/3/2025
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APPROVED BY THE PLANNING COMM]SS]ON ON JUNE 76, 2025

MINUTES
City of Orange
Planning Commission
June 02, 2025
The Planning Commission of the City of Orange, California convened on June 2, 2O25, 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 Vejar called the meeting to order at 5:31 p.m.
1,1 PLEDGE OF ALLEGIANCE
Commissioner Leslie led the flag salute.

1.2 ROLL CALL

Present: Leslie, Martinez, Yazquez, Maldonado, Tucker, McCormack, and Velar

Absent: None
2, PUBLIC COMMENTS
None.

3. CONSENTCALENDAR
All matters listed under the Consent Calendar are considered to be routine by the Planning Commission and will be enacted by one motion. There will be no separate discussion of said items unless members of the Planning Commission, staff or the public request specific items removed from the Consent Calendar for separate action.

A motion was made that this be Approved. The motion carried by the following vote:

3.1. Approval of meeting minutes of the City of Orange Planning Commission Regular Meeting held on May 5, 2025.

ACTION: Approved minutes as presented.

Approval of the Consent Calendar
A motion was made by Commissioner Yazquez, seconded by Commissioner lr,lartinez to approve the Consent Calendar. The motion carried by the following vote:

Aves: Leslie, Martinez, Vazquez, Maldonado, Tucker, McCormack, and Veiar Noes: None

Absent: None

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283
Planning Commission Minutes June 2,2025

4.1. 4. PUBLIC HEARINGS
A public hearing to consider a request to construct a new bank building with a drive-through automated teller machine (ATM) at 2355 N. Tustin Street and finding of CEQA Exemption (Conditional Use Permit No. 3230, Design Review No. 5151 , and Minor Site Plan Review No. 1 174).

4.2 Chair Vejar opened the public hearing at 5:39 p.m. There being no public speakers, she closed the Public Hearing at 5:40 p.m.

A motion was made by Commissioner Martinez, seconded by Commissioner Maldoado to:

1. Adopt Planning Commission Resolution No. 06-25 approving Conditional Use Permit No. 3230, Design Review No. 5'151, and Minor Site Plan Review No. 1'174 to construct a new 5,372 square-foot bank building with a drive-through ATM and related site improvements, located at 2355 N. Tustin Street.

2. Find the request categorically exempt from the California Environmental Quality Act (CEaA) in accordance with Section 15303 of the State CEQA Guidelines (Class 3 - New Construction or Conversion of Small Structures).

Ayes: Leslie, Martinez, V azquez, Maldonado, Tucker, Mccormack, and Veiar Noes: None

Absent: None
Public Hearing to consider an Ordinance amending provisions in Title 17 of the Orange Municipal Code relating to the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant and finding of CEQA exemption.

Chair Vejar opened the public hearing at 6'.22 p.m. There being no public speakers, she closed the Public Hearing.

The Commissioners discussed administration and enforcement of the proposed ordinance and requested additional information from staff.

A motion was made by Chair Vejar, seconded by Commissioner McCormack, to continue the Public Hearing to the July 7, 2025 Regular meeting. The motion carried by the following vote:

Aves: Leslie, I\ilartinez, Vazquez, Maldonado, Tucker, McCormack, and Veiar Noes: None

Absent: None

ADJOURNMENT
There being no further business, the meeting was ad.iourned at 6:57 p.m The next Regular Planning Commission meeting will be held on Monday June at 5:30 p.m., in the Council Chamber, 300 E. Chapman Avenue, Orange 928
Anna Pehoushek, AICP
Assistant Community Development Director
16,2025
California

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5. 284
Planning Commission Minutes

Page 3 of 3 ends

June 2,2025
285
APPROVED BY THE PLANNING COMMISSION ON JULY 21, 2025
M!NUTES
City of Orange
Planning Commission
July 07,2025
The Planning Commission of the City of Orange, California convened on July 7, 2025, at 5:30 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

1. OPENING/CALL TO ORDER
Chair Vejar called the meeting to order at 5:33 p.m.
,1.1 PLEDGE OF ALLEGIANCE
Commissioner Vazquez led the flag salute.

1.2 ROLL CALL

Present: Leslie, l\Iartinez, Vazquez, Maldonado, Tucker, McCormack, and Veiar

Absent: None

2. PUBLIC COMMENTS
None

3. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine by the Planning Commission and will be enacted by one motion. There will be no separate discussion of said items unless members of the Planning Commission, staff or the public request specific items removed from the Consent Calendar for separate action.

3.1. Approval of meeting minutes of the Gity of Orange Planning Commission Regular Meeting held on June 16, 2025.

ACTION: Approved minutes as presented.

Approval of the Consent Calendar
A motion was made by Commissioner [t/cCormack, seconded by Commissioner Martinez, to approve the Consent Calendar as recommended. The motion carried by the following vote:

Ayes: Leslie, lvlartinez, Vazquez, Maldonado, Tucker, McCormack, and Veiar Noes: None

Absent: None

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286
Planning Commission M inutes July 7,2025

4.1. Continued Public Hearing to consider an ordinance amending provisions in Title 17 of the Orange Municipal Code relating to the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant, subject to special use regulations. (Continued from June 2, 2025)
Associate Planner Arlen Beck presented the staff report and highlighted the requested changes to the proposed ordinance.

Associate Planner Arlen Beck and Community Development Director Russell Bunim responded to Commissioner questions related to administration of the application proposed by the Ordinance and to the proposed conditions outlined in Section 17 .30.025 of the proposed Ordinance.

Senior Assistant City Attorney Nathalie Adourian verified any entitlements granted would run with the land and not individual owners.

Chair Vejar opened the public hearing at 5:44 p.m. There being no public speakers, she closed the Public Hearing at 5:44 p.m.

Commissioners discussed the intent and enforcement potential of Section 17.3O.025 Condition Number 20 of the proposed Ordinance.

A motion was made by Chair Vejar, seconded by Commissioner Martinez to:

1. Adopt Planning Commission Resolution No. PC 05-25 recommending that the City Council adopt an Ordinance amending Title 17 of the Orange Municipal Code to allow the sale and service of alcoholic beverages in conjunction with the operation of a bona fide restaurant as a permitted use in certain zoning districts subject to special use regulations, and to remove condition number 20 of Section 17.30.025 of the proposed Ordinance relating to the prohibition of happy hour promotions.

Aves: Leslie, Martinez, Tucker, lvlcCormack, and Veiar
Noes: Vazquez, and Maldonado

Absent: None

ADJOURNMENT
There being no further business, the meeting was adjourned at 6:05 p.m.

The next Regular Planning Commission meeting will be held on Monday July 21, 2025 5 at 5:30 p
92866.
.m in th Council Chamber, 300 E. Chapman Avenue, Orange California Hayden Bec n
Planning l\/anager

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4, PUBLIC HEARINGS
287
Agenda Item
City Council
Item #: 9.1. 8/26/2025 File #: 25-0482
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Establishment of Permit Parking Area “AD” to be compromised of the east side of S. Swidler Place from E. Chapman Avenue to E. Almond Avenue and E. Almond Avenue from S. Swidler Place to S.

Olympia Way. Resolution No. 11630.

2. SUMMARY
Staff received a request for permit parking on S. Swidler Place and E. Almond Avenue. The request was processed in accordance with the City’s Neighborhood Permit Parking Program (NPPP), adequately supported by the affected property owners, and recommended by the City Traffic Commission. If approved, Swidler Place and Almond Avenue will establish Permit Parking Area “AD.”

3. RECOMMENDED ACTION
Adopt Resolution 11630. A Resolution of the City Council of the City of Orange adopting a revised master resolution of designated permit parking areas and established permit parking opportunity areas within the City of Orange.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from external parking overflow when certain criteria are satisfied. To initiate the NPPP process, a property owner on an affected and eligible street must submit a written request identifying the streets where permit parking is being requested, as well as days and times where demand for on-street parking is the highest. City staff then reviews the proposed streets for program eligibility and determines the final study area (boundaries) within which permit parking will be considered. Study area streets must have a minimum 75% parking occupancy and 75% property owner support via a petition process. If these criteria are met, staff will present the proposed permit parking boundaries to City Traffic Commission (CTC) for initial review and City Council for final approval.

Staff received a written request to implement permit parking on S. Swidler Place. Due to its proximity City of Orange Page 1 of 2 Printed on 8/20/2025
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Item #: 9.1. 8/26/2025 File #: 25-0482
Staff received a written request to implement permit parking on S. Swidler Place. Due to its proximity to existing Permit Parking Area I and Swidler Place, Almond Avenue was included in the evaluation for permit parking. After review of the streets and neighborhood staff confirmed that Swidler Place and Almond Avenue met the objectives and criteria of the City’s NPPP for permit parking consideration. Staff mapped the number of legal parking spaces for the street and conducted parking occupancy studies during hours of highest demand identified by the proponent. Both Swidler Place and Almond Avenue exceeded the 75% minimum level of parking occupancy, with an average parking occupancy of 93% for Swidler Place and 87% for Almond Avenue. Subsequently, staff mailed petitions to affected property owners. The results of the petition process for Swidler Place indicate that 85% of property owners are in favor of permit parking, 0% are opposed, and 15% did not respond. On Almond Avenue 75% of property owners are in favor of permit parking, 0% are opposed, and 25% did not respond.

Based on the above staff supports, and the CTC recommends implementation of permit parking. If approved, Swidler Place from Chapman Avenue to Almond Avenue and Almond Avenue from Swidler Place to Olympia Way, would establish Permit Parking Area “AD”.

7. ATTACHMENTS
· Attachment 1 Resolution No. 11630
· Attachment 2 Swidler Place and Almond Avenue Activation Map · Attachment 3 City Traffic Commission Staff Report June 11, 2025 · Attachment 4 City Traffic Commission Minutes June 11, 2025 · Attachment 5 Notification Letter Swidler Place & Almond Avenue City of Orange Page 2 of 2 Printed on 8/20/2025
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Agenda Item
City Council
Item #: 9.1. 8/26/2025 File #: 25-0482
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Establishment of Permit Parking Area “AD” to be compromised of the east side of S. Swidler Place from E. Chapman Avenue to E. Almond Avenue and E. Almond Avenue from S. Swidler Place to S.

Olympia Way. Resolution No. 11630.

2. SUMMARY
Staff received a request for permit parking on S. Swidler Place and E. Almond Avenue. The request was processed in accordance with the City’s Neighborhood Permit Parking Program (NPPP), adequately supported by the affected property owners, and recommended by the City Traffic Commission. If approved, Swidler Place and Almond Avenue will establish Permit Parking Area “AD.”

3. RECOMMENDED ACTION
Adopt Resolution 11630. A Resolution of the City Council of the City of Orange adopting a revised master resolution of designated permit parking areas and established permit parking opportunity areas within the City of Orange.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from external parking overflow when certain criteria are satisfied. To initiate the NPPP process, a property owner on an affected and eligible street must submit a written request identifying the streets where permit parking is being requested, as well as days and times where demand for on-street parking is the highest. City staff then reviews the proposed streets for program eligibility and determines the final study area (boundaries) within which permit parking will be considered. Study area streets must have a minimum 75% parking occupancy and 75% property owner support via a petition process. If these criteria are met, staff will present the proposed permit parking boundaries to City Traffic Commission (CTC) for initial review and City Council for final approval.

Staff received a written request to implement permit parking on S. Swidler Place. Due to its proximity City of Orange Page 1 of 2 Printed on 8/20/2025
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Item #: 9.1. 8/26/2025 File #: 25-0482
Staff received a written request to implement permit parking on S. Swidler Place. Due to its proximity to existing Permit Parking Area I and Swidler Place, Almond Avenue was included in the evaluation for permit parking. After review of the streets and neighborhood staff confirmed that Swidler Place and Almond Avenue met the objectives and criteria of the City’s NPPP for permit parking consideration. Staff mapped the number of legal parking spaces for the street and conducted parking occupancy studies during hours of highest demand identified by the proponent. Both Swidler Place and Almond Avenue exceeded the 75% minimum level of parking occupancy, with an average parking occupancy of 93% for Swidler Place and 87% for Almond Avenue. Subsequently, staff mailed petitions to affected property owners. The results of the petition process for Swidler Place indicate that 85% of property owners are in favor of permit parking, 0% are opposed, and 15% did not respond. On Almond Avenue 75% of property owners are in favor of permit parking, 0% are opposed, and 25% did not respond.

Based on the above staff supports, and the CTC recommends implementation of permit parking. If approved, Swidler Place from Chapman Avenue to Almond Avenue and Almond Avenue from Swidler Place to Olympia Way, would establish Permit Parking Area “AD”.

7. ATTACHMENTS
· Attachment 1 Resolution No. 11630
· Attachment 2 Swidler Place and Almond Avenue Activation Map · Attachment 3 City Traffic Commission Staff Report June 11, 2025 · Attachment 4 City Traffic Commission Minutes June 11, 2025 · Attachment 5 Notification Letter Swidler Place & Almond Avenue City of Orange Page 2 of 2 Printed on 8/20/2025
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RESOLUTION NO. 11630

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE ADOPTING A REVISED

MASTER RESOLUTION OF DESIGNATED

PERMIT PARKING AREAS AND ESTABLISHED

PERMIT PARKING OPPORTUNITY AREAS

WITHIN THE CITY OF ORANGE
WHEREAS, pursuant to California Vehicle Code Section 22507, local authorities may generally prohibit or restrict the stopping, parking, or standing of vehicles on certain streets or highways, or portions thereof, during all or certain hours of the day; and WHEREAS, local authorities may also include a designation of certain streets upon which preferential parking privileges are established with a permit or permits that exempt them from the prohibition or restriction of the ordinance or resolution; and WHEREAS, pursuant to the authority provided by the California Vehicle Code, the City Council of the City of Orange codified Chapter 10.30 of the Orange Municipal Code generally establishing parking requirements for the City of Orange; and WHEREAS, Sections 10.30.010 and 10.30.020 specifically establishes the Neighborhood Parking Permit Program designating portions of certain public streets for permit-parking and explicitly authorizes the City Council of the City of Orange to add, remove or modify designated areas within the Neighborhood Parking Permit Program by resolution; and WHEREAS, the creation of a “Master Resolution” containing all the permit parking areas in a single document eliminates the need to potentially revise multiple resolutions when an area is added, deleted, or modified within the Neighborhood Parking Permit Program; and WHEREAS, the City Council of the City of Orange most recently adopted said Master Resolution on August 12, 2025 (Resolution No. 11626), containing a list of all permit parking areas within the City; and
WHEREAS, staff now recommends adding additional streets in the Neighborhood Permit Parking Program; and
WHEREAS, accordingly, the City Council desires to rescind Resolution No. 11626 and replace it with a revised resolution.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Orange as follows:
292
2 SECTION I:

That Resolution No. 11626, adopted August 12, 2025, is hereby rescinded, effective immediately upon the date of the adoption of Resolution No. 11630.

SECTION II:

That the following streets be added to the Neighborhood Permit Parking Program as Area “AD”:

The east side of S. Swidler Place, from E. Chapman Avenue to E. Almond Avenue Both sides of E. Almond Avenue, from S. Swidler Place to S. Olympia Way SECTION III:

That the Master Resolution of Permit Parking Area for the Neighborhood Permit Parking Program attached hereto as Exhibits A-I are hereby adopted.

ADOPTED this day of , 2025
Daniel R. Slater, Mayor, City of Orange
ATTEST:

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

Wayne W. Winthers
Interim City Attorney, City of Orange
293
3 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 , 2025 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
294
Exhibit A

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EXHIBIT A
The following areas are all areas that have been designated by the City Council for inclusion in the Neighborhood Permit Parking Program and are subject to Chapter 10.30 of the Orange Municipal Code. Any additions or deletions to the Neighborhood Permit Parking Program shall be made by amending this Master Resolution.

CHAPMAN UNIVERSITY NEIGHBORHOOD PERMIT PARKING AREA “A”

1. Both sides of Center St. from Walnut Ave. to the southern terminus of Center St. adjacent to residential land uses.

2. Both sides of Cleveland St. from Palm Ave. to Sycamore Ave.

3. East side of Cypress St. from Maple Ave. to the southern property line of 171 North Cypress St.

4. Both sides of Cypress St. from Walnut Ave. to Sycamore Ave.

5. Both sides of Everett Pl. from Shaffer St. to Glassell St.

6. Both sides of Glassell St. from Walnut Ave. to Rose Ave.

7. East side of Grand St. from the southern property line of 127 N Grand Street to the northern property line of 147 North Grand St.

8. Both sides of Grand St. from Palm Ave. to the southern property line of 183 N Grand St. adjacent to residential land uses.

9. Both sides of Grand St. from Mayfair Ave. to Walnut Ave. adjacent to residential land uses.

10. Both sides of Harwood St. from Palm Ave. to the northern terminus of Harwood St.

11. Both sides of Jefferson Ave. from Harwood St. to Shaffer St.

12. East side of Lemon St. from Maple Ave. to the southern property line of 149 North Lemon St.

13. Both sides of Lemon St. from Palm Ave. to Walnut Ave. adjacent to residential land uses.

14. Both sides of Maple Ave. from Cleveland St. to Orange St. adjacent to residential land uses.

15. North side of Maple Ave. from Olive St. to the eastern property line of 115 East Maple Ave.

16. Both sides of Mayfair Ave. from Shaffer St. to Glassell St.

17. Both sides of Olive St. from Maple Ave. to the northern terminus of Olive St. adjacent to residential land uses.

18. Both sides of Olive St. from Sycamore Ave. to Walnut Ave.

19. Both sides of Orange St. from Maple Ave. to Palm Ave. adjacent to residential land uses.

20. Both sides of Orange St. from Walnut Ave. to the northern terminus of Orange St.

21. Both sides of Palm Ave. from Harwood St. to Glassell St. adjacent to residential land uses.

22. North side of Palm Ave. from Pine St. to Harwood St.

23. Both sides of Rose Ave. from Glassell St. to Grand St.

24. Both sides of Shaffer St. from Chapman Ave. to Walnut Ave. adjacent to residential land uses.

25. West side of Shaffer St. from Walnut Ave. to the northern property line of 516 North Shaffer St.

26. Both sides of Sycamore Ave. from Cambridge St. to Center St.

27. North side of Sycamore Ave. from Glassell St. to the western property line of 317 West Sycamore Ave. adjacent to residential land uses.

28. South side of Sycamore Ave. from the western property line of 314 West Sycamore Ave. to Lemon St.

29. Both sides of Walnut Ave. from Cambridge St. to Center St. adjacent to residential land uses. 295
Exhibit A

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AREA “B”

1. Both sides of Adams Ave. from Glassell St. to Grand St.

2. Both sides of Hoover Ave. from Glassell St. to Grand St.

3. Both sides of Quincy Ave. from Glassell St. to Grand St.

4. Both sides of Wilson Ave. from Glassell St. to Grand St.

AREA “C”

1. Both sides of Compton Ave. from Manchester Ave. to Lewis St.

2. East side of Lewis St. from the northerly property line at 4035 Compton Ave. to the southern property line of 119 N. Lewis St.

3. West side of Manchester Ave. from Sheringham Ave. to Compton Ave.

4. North side of Sheringham Ave. from Manchester Ave. to Windgap Dr.

5. South sides of Sheringham Ave. from Woodridge Cr. to Windgap Dr.

6. Both sides of Sunningdale Cr. from Compton Ave. south to include the cul-de-sac.

7. Both sides of Windgap Dr. from Compton Ave. south to include the cul-de-sac.

8. West side of Woodridge Cr. from Sheringham Ave. south to include the cul-de-sac.

9. East side of Woodridge Cr. from the northerly property line of 119 N. Woodridge Cr. south to include the cul-de-sac.

AREA “D”

1. Both sides of Dunas St. from Maple Ave. north to include the cul-de-sac.

2. Both sides of Maple Ave. from Prospect St. to Olympia Way.

3. Both sides of Olympia Way from Maple Ave. to Spring St.

4. Both sides of Shasta St. from Maple Ave. north to include the cul-de-sac.

5. Both sides of Vine Ave. from Olympia Way to its western terminus.

6. Both sides of First St. from Chapman Ave. north to include the cul-de-sac.

7. Both sides of Pearl Ave. from First St. to McPherson Rd.

8. East side of McPherson Rd. from 131 to 133 N. McPherson Rd.

AREA “E”

1. West side of Elm St. south of Sycamore Ave. to include the cul-de-sac.

AREA “F”
Permit Parking between the hours of 10:00 p.m. and 6:00 a.m.

1. Both sides of Almond Ave. from Prospect St. to Violet Ln.

2. Both sides of Kathleen St. from Chapman Ave. to Palmyra Ave.

3. Both sides of Palmyra Ave. from Craig Dr. to Prospect St.

4. East side of Prospect St. from Almond Ave. to Palmyra Ave.

5. Both sides of Violet Ln. from Almond Ave. to Palmyra Ave. 296
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AREA “G”
Permit Parking between the hours of 10:00 p.m. and 6:00 a.m.

1. Both sides of Euclid Ave. from James St. to Seranado St.

2. Both sides of James St. from Sycamore Ave. to Euclid Ave.

3. Both sides of Palm Ave. from Swidler St. to Seranado St.

4. Both sides of Sycamore Ave. from Swidler St. to Seranado St.

5. Both sides of Seranado St. from Spring St. to Walnut Ave.

6. Both sides of Silverleaf Ave. from Thomas St. to Seranado St.

7. Both sides of Spring St. from Swidler St. to Seranado St.

8. Both sides of Swidler St. from Spring St. to Walnut Ave.

9. Both sides of Thomas St. from Sycamore Ave. to Silverleaf Ave.

10. Both sides of Walnut Ave. from Swidler St. to Seranado St.

AREA “H”

1. Both sides of Shaffer St. beginning 390 feet north of Katella Ave. and ending at Trenton Ave. (R-1 zoned single-family residences only.)
AREA “I”

1. Both sides of Almond Ave. from Prospect St. to Dunas St.

2. Both sides of Century Ave. from James St. to Thomas St.

3. Both sides of Craig Dr. 100 feet south of Roberta Dr. to Prospect St.

4. Both sides of Dunas St. from Palmyra Ave. to Almond Ave.

5. Both sides of James St. from Century Dr. to La Veta Ave.

6. North side of La Veta Ave. from Prospect St. to Dunas St.

7. Both sides of Merelet Ln. from Craig Dr. to include the cul-de-sac.

8. Both sides of Olympia Way from Palmyra Ave. to Almond Ave.

9. North side of Palmyra Ave. from Prospect St. to Thomas St.

10. Both sides of Ruth Pl. easterly of James St.

11. Both sides of Ruth Pl. from Prospect St. to Olympia Way.

12. Both sides of Shasta St. from Palmyra Ave. to Almond Ave.

13. Both sides of Thomas St. from Century Dr. to Palmyra Ave.

AREA “J”

1. Both sides of Binnacle Ave. from Jetty Dr. to its easterly terminus.

2. North side of Chapman Ave. from Jetty Dr. to 4537 W. Chapman Ave.

3. North side of Chapman Ave. frontage road from Jetty Dr. to cul-de-sac.

4. Both sides of Grant Pl. from Chapman Ave. northerly to include the cul-de-sac.

5. Both sides of Jetty Dr. from Chapman Ave. to Sirius Ave.

6. West side of Lewis St. from Sirius Ave. to Simmons Ave.

7. South side of Simmons Ave. from Lewis St. to Spinnaker St.

8. Both sides of Sirius Ave. from Lewis St. to Jetty Dr.

9. Both sides of Spinnaker St. from Binnacle Ave. to Simmons Ave. 297
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10. Both sides of Stay Court easterly of Jetty Dr.

11. Both sides of Tiller Ave. from Lewis St. to Spinnaker St.

AREA “K”

1. Both sides of the 2700 block of E. Bennett Ave.

2. Both sides of the 2700 block of E. Killingsworth Ave.

3. Both sides of the 100-200 blocks of N. Malena Dr.

4. Both sides of the 2700 block of E. Sherman Ave.

5. Both sides of the 100-200 blocks of N. Wheeler St.

AREA “L”

1. Both sides of Jacaranda Ave. from Morgan St. to Mallard St.

2. Both sides of Juniper Ave. from Morgan St. to Mallard St.

3. Both sides of Mallard St. from Collins Ave. northerly to 985 N. Mallard St.

4. Both sides of Morgan St. from Collins Ave. northerly to 986 N. Morgan St.

AREA “M”

1. Both sides of Citrus St. from Almond Ave. to the southerly commercial property lines south of Chapman Ave.

AREA “N”

1. West side of Bedford Rd. from La Veta Ave. to Bronson Ave.

AREA “O”

1. North side of Spring St. from Hewes St. to Earlham St.

AREA “P”

1. Both sides of the 1000 block of Gardner Dr.

2. Both sides of the 1000 block of Greengrove St.

3. Both sides of Monroe Ave. from California St. to Lincoln St.

4. Both sides of Quincy Ave. from California St. to Lincoln St.

5. Both sides of Lincoln St. between Adams Ave. and Wilson Ave. including the cul-de-sac.

6. West side of Lincoln St. from 990 N. Lincoln St. to Adams Ave.

7. East side of Lincoln St. from 1073 N. Lincoln St. to Adams Ave.

8. Both sides of Adams Ave. between Lincoln St. and California St.

AREA “Q”

1. Both sides of the 8500 block of Biscayne Way.

2. Both sides of the 8500 block of Deershire Ct.

3. Both sides of the 200 block of Fairfield Ln.

4. Both sides of the 200 block of Firenza Way.

5. Both sides of the 8500 block of Heatherview Ln.
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AREA “R”

1. Both sides of San Luis Dr. from 7821 (north side) to Santa Cruz Ave., and from 7816 (south side) to the beginning of 8132.

2. 8102 and 8110 Santa Cruz Ave. (south side).

3. Both sides of Santa Maria St. between San Luis Dr. and Santa Cruz Ave.

AREA “S”

1. Both sides of Poplar St. between Maple Ave. and the cul-de-sac.

2. North side of Maple Ave. between Stevens St. and 1949 W. Maple Ave.

3. South side of Maple Ave. from Stevens St. to 2010 W. Maple Ave.

4. Both sides of Eckhoff St. between 130-283 N. Eckhoff St.

AREA “T”

1. Both sides of Cully Dr. from the westerly property lines of 861 and 864 W. Cully Dr. to the cul-de-sac.

2. Four spaces on the east side of Eckhoff St. from the southerly limit to W. Arbor Way (approximately 110 feet).

3. Five spaces on the east side of Eckhoff St. from 45 feet north of W. Arbor Way end of curb return to Maple Ave. (approximately 140 feet. It allows one parking space to remain in the permit parking program just north of the driveway at 2037 W. Arbor Way for visibility).

4. Three spaces on the east side of Eckhoff St. north of Willow Ave. to the northerly limit (approximately 70 feet).

5. Two spaces on the east side of Eckhoff St. from the existing red curb north of Maple Ave. to the driveway south of 206 N. Eckhoff St.

AREA “U”

1. Both sides of Waverly St. from the northerly property lines of 133 and 138 S. Waverly St. to Almond Ave.

AREA “V”

1. The south side of E. Rose Ave. from 1932/1934 to N. Highland St.

2. Both sides of N. Highland St. from E. Rose Ave. to E. Barkley Ave.

3. Both sides of E. Mayfair Ave. from 1740 E. Mayfair Ave. to N. Highland St.

4. The south side of E. Lomita Ave. from 1734/1736 to N. Highland St.

5. The north side of E. Lomita Ave. from 1901 to N. Highland St.

6. Both sides of E. Barkley Ave. from the cul-de-sac to N. Highland St.

7. Both sides of the cul-de-sacs of N. Victoria Dr., N. Russell Dr., and N. Shirley Dr., north of E.

Mayfair Ave.
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