San Clemente City Council
July 18, 2023

16 level of security for all funds, the collateralization level will be a minimum of 102% of market value of principal and accrued interest.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. The independent third party custodian must be a major financial institution, with at least $5 billion in assets plus a long term rating of A or better. The third party custodian shall be required to issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. The right of collateral substitution is granted for repurchase agreements.

Collateral securities shall be equal in quality and may only consist of Those securities listed as authorized investments in sections 4.7.1.1 Through 4.7.1 .5.

4.8.2 Certificates of Deposit: Collateral of at least 110% or FDIC insurance is required for Certificates of Deposit.

4.8.3 Passbook Savings and Demand Deposits: Collateral or FDIC Insurance is required for Certificates of Deposit.

4.9 Safekeeping & Custody: All security transactions, including collateral for repurchase agreements, certificates of deposit, demand deposits, and time deposits entered into by the City shall be conducted on a delivery-versuspayment (DVP) basis. Securities will be held by a third party qualified custodian designated by the City and will be evidenced by safekeeping receipts. Certificates of Deposit will be held in the City's vault.

4.10 Diversification and Maturity Limitations:

4.10.1 Diversification: It is the policy of the City to diversify its investment portfolio. Invested funds shall be diversified to minimize the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and reviewed quarterly by the City Treasurer and Investment Advisory Committee.

4.10.1.1 Portfolio Diversification: The portfolio will maintain diversification by imposing the following limits, at time of purchase, on eligible investments:

U.S. Treasury 100%
U.S. Agency 75%
Collateralized or insured Passbook Savings &
Demand Deposits 30%
Collateralized or insured Certificates of Deposits30%
Negotiable Certificates of Deposits (NCDs) 20%
Bankers Acceptances 30%
Commercial Paper 15%
Corporate Debentures 20%
(including Medium Term Notes and Bank Notes)

17 Repurchase Agreements 30%
Local Agency Investment Fund (LAIF) 50%
(but not to exceed $ 75 million)
Money Market Mutual Funds 20%
Asset-Backed Securities 10%
Supranational Securities 10%
Orange County Investment Pool 10%
No more than 30% of the total portfolio may be invested in any one Federal Agency issuer.

The combined exposure in callable U.S. Agency securities shall not exceed 20% of the total market value of the
portfolio.

The combined investment exposure of any issuer in
Corporate Debentures and Negotiable Certificates of
Deposits (NCDs) shall not exceed 3% of the total portfolio market value. The combined investment exposure in
Corporate Debentures and NCDs in excess of the FDIC
limits, shall not exceed 20% of the total portfolio market value.

No more than 30% of the City's total investment portfolio will be invested in a single security type or with a single financial institution or pool except:

4.10.1 .1.1 US Treasury and Agency securities

4.10.1.1.2 The City may invest up to 60% in LAIF
and OCIP combined, but not to exceed
$ 75 million in LAIF and $15 million
in OCIP.

No more than 5% of the City's portfolio may be invested in any issuer of securities other than where the issuer is the US Government or its Agencies, or where the security is a Money Market Mutual Fund or Local Agency Investment
Fund (LAIF) or unless otherwise specified in this
investment policy.

4.10.1.2 Maturity Diversification: Every effort
will be made to match investment maturities to
cash flow needs. Matching maturities with cash
flow dates will reduce the need to sell
securities prior to maturity, thus reducing
market risk.

18 4.10.1.2.1 Unless matched to a specific
requirement, no more than 50% of the
investment portfolio may be invested with
maturities greater than 2 years.

4.10.1 .2.2 Unless matched to a specific
requirement and approved by the City
Council, no investment may be made
with a maturity greater than 5 years.

4.11 Marking to Market: The City shall mark investments to market on a monthly basis.

4.12 Investment Pools: Prior to entering a pool, a pool questionnaire must be completed and kept on file in the City Treasurer's office.

5.0 PROCEDURE:

5.1 Internal Control: In conjunction with the City's independent annual financial audit, a review of actual and documented internal controls of the City's investment program will be conducted. The review will assure that internal controls are adequate and assure compliance with policies and procedures. The City's Investment Advisory Committee will be provided with access to a copy of the annual audit within 30 days of publication. The City will email a link to the Investment Advisory Committee so that they can access the financial audit.

5.2 Performance Standards: The investment portfolio will be designed to obtain an average market rate of return, taking into account the City's investment risk constraints (safety), cash flow needs, and maturities of the investments.

5.2.1 Market Rate of Return (Benchmark): The City of San Clemente's investment strategy is active. The investment portfolio's return shall be measured using total return.

The investment portfolio shall be designed to attain a total return commensurate with the risk constraints outlined by the City's Investment Policy. The benchmark for the City's portfolio are:

5.2.1.1 BofA Merrill Lynch 1-3 Year US Treasury & Agency Index (primary)

5.2.1 .2 BofA Merrill Lynch AAA-A Corporate & Government Index (reference)
It is understood that the portfolio's total return can and will differ from

19 the index through different market cycles as the investment portfolio's priority is to meet the liquidity needs of the City.

Nevertheless, it is the intent to use this benchmark as a tool with which to measure the relative risk and return of the portfolio.

5.3 Competitive Bids: A minimum of three bids or quotations will be obtained prior to the completion of secondary investment transactions with authorized financial institutions. This does not apply to authorized investment pools or money market mutual funds .

5.4 Reporting: The Finance & Administrative Services Director and City Treasurer are charged with the responsibility of distributing a Quarterly Investment Report on investment activity and returns in the City's Quarterly Financial Report. The report will be provided to the City's Investment Advisory Committee and City Council within 30 days following the end of the quarter covered by the report. The California Code requires the following components:

5.4.1 Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;

5.4.2 A description of the funds, investments and programs; and

5.4.3 A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of this valuation; and

5.4.4 Monthly transactions for the period; and

5.4.5 A statement of compliance with the investment policy or an explanation for non-compliance; and

5.4.6 A statement of the City's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case.

5.5 Investment Advisory Committee: The City Treasurer shall automatically be a member and serve as Chair. The City Council shall appoint two citizen representatives and a Council representative. The City Treasurer shall appoint one industry specialist, who does not need to be a citizen of San Clemente.

5.5.1 Members (Voting):

5.5.1.1 5.5.1.2

5.5.1.3 5.5.1.4
City Treasurer (Chair)
Council member representative
Two citizen representatives
One Industry Specialist
Three (3) voting members will constitute a quorum.

5.5.2 Staff (Non-Voting):

20 5.5.2.1

5.5.3 Role:

5.5.3 .1

5.5.3 .2

5.5.4 Meetings:
6 .5.4.1

5.5.5 Reports:

5.5.5.1 Finance & Administrative Services Director or designee (Staff)
To review and recommend City investment policies
To review the investment portfolio and practices for
performance and conformance to adopted policies
and procedures.

The Investment Advisory Committee shall meet no less
than quarterly.

A quarterly report shall be submitted to the Committee
by the City Treasurer, and be reviewed and approved
by the Investment Advisory Committee.

5.6 Investment Policy Adoption: The City's investment policy shall be adopted by the City Council on an annual basis. The policy shall be reviewed on an annual basis by the City Treasurer, Assistant City Manager/Finance & Administrative Services Director and City's Investment Advisory Committee and any modifications made thereto must be recommended by the Committee and approved by the City Council.

5.7 Investment Policy Distribution: A copy of the City's adopted investment policy will be distributed to the Investment Advisory Committee, City Treasurer, Deputy Administration Services Director, brokers, financial auditors, primary bank, and City Attorney. A copy will be posted on the City's web site and be on file in the City Clerk's office.

6.0 DEFINITIONS

6.1 ADEQUATELY CAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC's amended assessment regulation . Not Well Capitalized and Total Risk-Based Capital Ratio equal to or greater than 8 percent, and Tier I Risk-Based Capital Ratio equal to or greater than 4 percent, and Tier I Leverage Capital Ratio equal to or greater than 4 percent.
(See Well Capitalized and Undercapitalized).

6.2 AGENCIES: Federal agency securities.

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

21 6.4 BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

6.5 BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position or take ownership of the security. In the money market, brokers are active in markets in which banks buy and sell money and in inter-dealer markets.

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

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

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

6.9 COMMERCIAL PAPER: An unsecured promissory note with a fixed maturity of no more than 270 days. Commercial paper is normally sold at a discount from face value.

6.10 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of San Clemente. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with financerelated legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

6.11 COUNTERPARTY: One of the counterparts (participants) In a financial transaction.

6.12 COUNTERPARTY RISK: The risk that a counterparty might fail to fulfill its contractual obligations.

6.13 COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

6.14 DEALER: A dealer, as opposed to a broker, acts as a principal In all transactions, buying and selling for his own account.

22 6.15 DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities with an exchange of a signed receipt for the securities.

6.16 DEPOSITORY: A state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in the state in which the moneys of a local agency are deposited.

6.17 DIVERSIFICATION: Dividing investment funds among a variety of securities, issuers, and maturities.

6.1 8 DURATION: A measure of the timing of the cash flows to be received from a security that provides the foundation for a measure of the interest rate sensitivity of a bond. Duration is an elasticity measure and represents the percentage change in price divided by the percentage change in interest rates. A high duration measure indicates that for a given level of movement in interest rates, prices of securities will vary considerably.

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

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

6.21 IDC Ranking: IDC Financial Publishing, Inc. compiles financial data on all banks, thrifts and credit unions reporting to the federal government, and publishes a ranking based on 35 key financial ratios.

6.22 LEVERAGE: The amplification in the return earned on funds when an investment is financed partly with borrowed money.

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

6.24 LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from local governments that are placed in the custody of the State Treasurer for investment and reinvestment.

6.25 MARKET RATE OF RETURN: The average yield of the 90 day U.S.

Treasury Bill or such other index that most closely matches the average maturity of the portfolio.

23 6.26 MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

6.27 MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyerlender to liquidate the underlying securities in the event of default by the seller-borrower.

6.28 MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

6.29 MONEY MARKET FUND: Mutual fund that invests solely in money market instruments.

6.30 MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages.

Principal and interest payments made on the mortgages are passed through to the holder of the security.

6.31 MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.

6.32 NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): is a credit rating agency that issues credit ratings that the U.S.

Securities and Exchange Commission permits other financial firms to use for certain regulatory purposes.

6.33 NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD): A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

6.34 ORANGE COUNTY INVESTMENT POOL: The OCIP is a pooled fund managed by the Orange County Treasurer pursuant to California Government Code sections 53601 and 53635. It is considered a very safe, liquid investment pool, investing in short term, high quality securities.

6.35 PAR VALUE: the value printed on a security such as a share certificate or bond at the time of issue.

6.36 PORTFOLIO: Collection of securities held by an investor.

6.37 PRIMARY BANK: The bank utilized by the City for it's main banking activities including daily cash and ACH transactions, direct deposit, check processing, trust services, etc.

24 6.38 PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary' dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

6.39 QUALIFIED BIDDER: Those broker/dealers that are deemed by the Assistant City Manager or City Treasurer, as applicable, to be qualified to bid on City investments. Specific qualifications of the financial institution or dealer are contained in the City's Broker/Dealer Questionnaire and Certification.

6.40 RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

6.41 REDEMPTION VALUE: The price at which the issuing company may choose to repurchase a security before its maturity date.

6.42 REPURCHASE AGREEMENT: A purchase of securities by the City pursuant to an agreement by which the seller will repurchase the securities on or before a specified date, and for a specified amount and will deliver the underlying securities to the City by book entry, physical delivery, or a third-party custodial agreement.

6.43 SAFEKEEPING: Storage and protection of a customer's financial assets, valuables, or documents, provided as a service by an institution serving as agent and , where control is delegated by the customer, also as custodian.

6.44 SURPLUS FUNDS: Those funds that are available for investment and are not anticipated to be needed for City operations for the next six (6) months.

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

6.46 TOTAL RETURN: The sum of all investment income plus all changes in the capital value of the portfolio.

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

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

25 6.49 TREASURY NOTES: Intermediate term coupon bearing U. S. Treasury securities having initial maturities of from one to ten years.

6.50 UNDERCAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC's amended assessment regulation.

Neither Well Capitalized nor Adequately Capitalized.

6.51 WELL CAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC's amended assessment regulation.

Total Risk-Based Capital Ratio equal to or greater than 10 percent, and Tier I Risk-Based Capital Ratio equal to or greater than 6 percent, and Tier I Leverage Capital Ratio equal to or greater than 5 percent.

RE: Client Directive regarding management of the City's investment portfolio The City of San Clemente entered into a discretionary investment advisory agreement on October 1, 2013 with Chandler Asset Management, an SEC-registered investment advisor, to manage a portion of the City's portfolio in accordance with its investment objectives and policies.

After consultation with Chandler's investment team, the City selected the Limited Maturity investment strategy for the portion of the City's portfolio managed by Chandler. This strategy invests in a well-diversified portfolio of US dollar denominated fixed income securities managed in compliance with the City's investment policy.

Starting on October 1, 2019, Chandler will make best efforts to maintain the City's market risk as measured by modified duration within +/- 10% of the duration of the ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index. In addition, starting on October 1, 2019, the Chandler managed portion of the City's portfolio will use ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index for performance comparisons while utilizing the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index for all previous performance comparisons.

Along with selecting a strategy we also discussed additional clarifying items in the City's investment policy:
• Section 4.10.1.2.1 - Chandler will maintain an allocation of at least 25% to securities that mature less than 2 years. Inclusive of the Chandler portfolio and the City's internally managed portfolio's allocation to liquidity vehicles and shorter maturity securities, the entire portfolio will maintain 50% of its securities maturing in less than 2 years.
• Although the investment policy states the benchmark for the City's entire portfolio is the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index, starting October 1, 2019 the Chandler managed portfolio will use the ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index to compare both portfolio performance and characteristics.
• Starting October 1, 2019, the City's internally managed portfolio will use the ICE Bank of America Merrill Lynch US 1-Year Treasury Bill to compare both portfolio

26 performance and characteristics.

The average duration and maturity of the portfolio is not likely to exceed the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index because the City's internally managed balance includes a high percentage of liquidity vehicles to facilitate the City's near-term cash flow needs.

The City's staff will maintain appropriate levels of liquidity utilizing an internally managed short-term portfolio. In addition, Chandler will not purchase securities issued by the Foothill/Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency until further notice.

This directive is in effect as of November 4, 2019 and will remain in effect until it is replaced by a revised directive.

27 CALIFORNIA GOVERNMENT CODE
Revised on September 2z!h, 2016

28 California Government Code
Sections 16429.1, 53600-53610, 53630
(a) There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund.
(b) Notwithstanding any other law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(c) Notwithstanding any other law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi-governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(d) Notwithstanding any other law or provision of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds. (e) The local governmental unit, the nonprofit corporation, or the quasi-governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer.
(f) The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer.
(g) The Local Investment Advisory Board shall determine those quasi-governmental agencies which qualify to participate in the Local Agency Investment Fund. (h) The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state's portfolio. (i) The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the

29 Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3.

U) Money in the fund shall be invested to achieve the objective of the fund which is to realize the maximum return consistent with safe and prudent treasury management. (k) All instruments of title of all investments of the fund shall remain in the Treasurer's vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank. (I) Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi-governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of 5 percent of the earnings of this fund and not to exceed the amount appropriated in the annual Budget Act for this function, shall be deducted from the earnings prior to distribution. However, if the 13-week Daily Treasury Bill Rate, as published by the United States Department of the Treasury on the last day of the state's fiscal year is below 1 percent, then the above-noted reasonable costs shall not exceed a maximum of 8 percent of the earnings of this fund for the subsequent fiscal year, shall not exceed the amount appropriated in the annual Budget Act for this function, and shall be deducted from the earnings prior to distribution. The amount of the deduction shall be credited as reimbursements to the state agencies, including the Treasurer, the Controller, and the Department of Finance, having incurred costs in carrying out the provisions of this section . (m) The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month.
(n) As used in this section, "local agency," "local governmental unit," and "local governmental official" includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721 , 89722, and 89725 of the Education Code.
53600. As used in this article, "local agency" means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.
53600.3. Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds , a trustee shall act with care, skill, prudence, and diligence under the circumstances then

30 prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

When investing, reinvesting , purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control.

The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern.
53601. This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or investments with other local agencies that have separate governing bodies. The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any portion of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency's funds , by book entry, physical delivery, or by third-party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery.

For purposes of this section, "counterparty" means the other party to the transaction.

A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase.

Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:

31 (a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. (b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
(d) Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board , agency, or authority of any of the other 49 states, in addition to California. (e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises. (g) Bankers' acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers' acceptances shall not exceed 180 days' maturity or 40 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank pursuant to this section.

This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code). (h) Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO.
(2) The entity meets the following criteria:

32 (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(8) Has programwide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. (i) Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state- licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decisionmaking authority in the administrative office manager's office, budget office, auditor-controller's office, or treasurer's office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.

U) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section.
(2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year.

The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. (3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale.

33 (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio.
(C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
(4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency.
(B) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank:
(i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities.
(iii) eptance of a local agency's securities or funds as deposits. (5) (A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book-entry account may be used for book-entry delivery. (B) "Securities," for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. (D) ) "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. (E) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way

34 of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.
(k) Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated "A" or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
(I) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions
(m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily.
(2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

35 (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph ( 1 ).
(m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.
(n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
(o) A mortgage passthrough security, collateralized mortgage obligation, mortgagebacked or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond of a maximum of five years' maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by an NRSRO and rated in a rating category of "AA" or its equivalent or better by an NRSRO.

Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency's surplus moneys that may be invested pursuant to this section. (p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
(q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and

36 Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option contracts in any of the investment categories enumerated in that section. used in this article, "corporation" includes a limited liability company.

The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601 .1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank.
(a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgagederived, interest-only strips. (b) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (I) of Section 53601 .

Notwithstanding Section 53601 or any other prov1s1on of this code, a local agency that has the authority under law to invest funds , at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:
(a) The local agency shall choose a nationally or state chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose. (c) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring both of the following:

37 (1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable.
(d) The selected depository institution shall serve as a custodian for each such deposit.
(e) On the same date that the local agency's funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b). (f) Notwithstanding subdivisions (a) to (e), inclusive, a credit union shall not act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (h) The deposits placed pursuant to this section and Section shall not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose.
(i) This section shall remain in effect only until January 1, 2021, and as of that date is repealed .

Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds may, at its discretion, invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, provided that the purchases of certificates of deposit pursuant to this section, Section 53635.8, and subdivision (i) of Section 53601 do not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose. The following conditions shall apply:
(a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may submit the funds to a private sector entity that assists in the placement of certificates of deposit with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States for the local agency's account.

38 (c) The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration . (d) The selected depository institution shall serve as a custodian for each certificate of deposit that is issued with the placement service for the local agency's account. (e) At the same time the local agency's funds are deposited and the certificates of deposit are issued, the selected depository institution shall receive an amount of deposits from other commercial banks, savings banks, savings and loan associations, or credit unions that, in total , are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution for investment.
(f) Notwithstanding subdivisions (a) to (e), inclusive, no credit union may act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more certificate of deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (h) This section shall become operative on January 1, 2021 . 53602. The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a fourfifths vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. 53603. The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued. 53604. The legislative body may sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased.
53605. From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency. 53606. The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled. While held uncanceled, the bonds may be resold.

39 53607. The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased , may be delegated for a oneyear period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year.
53608. The legislative body of a local agency may deposit for safekeeping with a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer.
53609. Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency's employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested in the types of investments set forth in Sections 53601 and 53602 of this code, and may additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property. Nothing herein shall be construed to permit any type of investment prohibited by the Constitution.

Deferred compensation funds are public pension or retirement funds for the purposes of Section 17 of Article XVI of the Constitution.
53610. (a) For purposes of this section, "Proposition 1A receivable" means the right to payment of moneys due or to become due to a local agency, pursuant to clause (iii) of subparagraph (B) of paragraph
(1) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the Revenue and Taxation Code.
(b) Notwithstanding any other law, a local agency may purchase, with its revenue, Proposition 1A receivables sold pursuant to Section
53999.
(c) A purchaser of Proposition 1A receivables pursuant to this section shall not offer them for sale pursuant to Section 6588.
53630. As used in this article:

40 (a) "Local agency" means county, city, city and county, including a chartered city or county, a community college district, or other public agency or corporation in this state. (b) "Treasurer" means treasurer of the local agency.
(c) "Depository" means a state or national bank, savings association or federal association, a state or federai credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited. ( d) "Agent of depository" means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657. (e) "Security" means any of the eligible securities or obligations listed in Section 53651 .
(f) "Pooled securities" means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies. (g) "Administrator" means the Administrator of Local Agency Security of the State of California.
(h) "Savings association or federal association" means a savings association, savings and loan association, or savings bank as defined by Section 5102 of the Financial Code.
(i) "Federally insured industrial loan company" means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation.

U) ) "Corporation" includes a limited liability company. 53630.1. The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern.
53630.5. (a) The definitions in Section 1750 of, and Chapter 1 (commencing with Section 99) of Division 1 of, the Financial Code apply to this section. (b) In this article, for purposes of being a depository of moneys belonging to or being in the custody of a local agency, the phrases "state or national bank located in this state," "state or national bank," "state or national bank in this state," and "state or national banks in the state" include, without limitation, any of the following:
(1) Any California branch office of a foreign (other state) state bank that the bank is authorized to maintain under the law of its domicile and federal law. (2) Any California branch office of a foreign (other state) national bank that the bank is authorized to maintain under federal law.
(3) Any California branch office of a foreign (other nation) bank that the bank is licensed to maintain under Article 3 (commencing with Section 1800) of Chapter 20 of Division 1.1 of the Financial Code.
(4) Any California federal branch of a foreign (other nation) bank that the bank is authorized to maintain under federal law.

41 Broker/Dealer Questionnaire

42 CITY OF SAN CLEMENTE, CALIFORNIA

BROKER/DEALER QUESTIONNAIRE
Date:

Firm Name:

CRD Number:

Local office servicing account:

Address:

Phone:

Corporate office:

Address:

Phone:

Primary Representative:

Please attach resumes ofprimary and secondary representatives covering this account.

Telephone:

Fax:

E-Mail:

CRDNumber:

Secondary Representative or sales assistant: _________________ _ Telephone:

Fax:

E-Mail:

CRDNumber:

43 CITY OF SAN CLEMENTE, CALIFORNIA
BROKER/DEALER QUESTIONNAIRE - Page 2
Branch Manager:

Telephone:

Fax:

E-Mail:

CRDNumber:

Is firm designated as a primary dealer by the Federal Reserve? If not, does your firm maintain its own inventory?
Is the firm registered with the State Securities Board? Is the firm and all its representatives registered with the FINRA? In what market sectors does the account representative specialize? List three comparable public clients currently working with this representative.

Entity name, contact and phone number.

1. 2.

3. What are the market sectors in which your firm specializes? Please feel free to provide additional infonnation regarding your firm's involvement in these sectors. us
_________ US Agencies
Re o
MBS
CP/BA
Corporate
CD's
Treasuries
44 Other

45 CITY OF SAN CLEMENTE, CALIFORNIA
BROKER/DEALER QUESTIONNAIRE- Page 3
Has this firm, or the representatives assigned to this account, been subject to a regulatory agency, state or federal investigation for alleged improper, disreputable, unfair or fraudulent activities related to the sale of securities or money market instruments in the past five years that resulted in a suspension or censure? Are there any outstanding/pending claims? If yes, please explain.

What documentation will be provided to us?
If requested, do you provide any fixed income research and economic commentary? Please attach sample. _ _______ _______ ___________ ___ _
Please provide the firm's most recent audited financial statement. (The City will require an annual financial statement be provided.)
Describe the precautions taken by your firm to protect the interests of the public when dealing with a governmental agency.

Has your firm ever failed to meet the capital adequacy guidelines established by your regulatory organization?
Attach complete delivery instructions. All transactions will be completed delivery versus payment.

46 Firm Name:

CITY OF SAN CLEMENTE, CALIFORNIA
BROKER/DEALER QUESTIONNAIRE- Page 4
I hereby certify that I and all sales representatives assigned to the City's account have received, reviewed and understand the Investment Policy of the City dated December 17, 2013. Our firm certifies that it has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the organization that are not authorized by the Investment Policy. Responsibility is limited to the extent that analysis of the makeup of the entire portfolio requires an interpretation of subjective investment standards. Our representatives agree to exercise due diligence in informing the City of foreseeable risks associated with financial transactions conducted with the firm.

All sales personnel involved with this account have been informed of the City's objectives and risk constraints and will be advised of any changes made to the Policy once we are advised by the City.

Qualified Representative(s) of the Firm
Signed:

Name:

Title:

Date:

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 7/18/2023 Agenda Item: 6M
Department: Utilities
Prepared By David Rebensdorf, Utilities Director
Subject:

CONSIDERATION OF A RESOLUTION APPROVING A CONTRACT CHANGE ORDER TO CONTINUE EMERGENCY PUMP WATCH SERVICES FOR TWO MONTHS WITH O’CONNELL ENGINEERING AND CONSTRUCTION, INC. AND APPROPRIATING SUPPLEMENTAL FUNDING FOR CYPRUS SHORE PUMP STATION EMERGENCY OPERATION, PROJECT NO. 12209, THROUGH MARCH 2024 IN THE AMOUNT OF $340,960
Summary:

On September 20, 2021, coastal bluff movement at Cyprus Shore necessitated an emergency response to ensure uninterrupted wastewater and storm drainage. City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras. In addition, the City installed a temporary above ground storm drain system in coordination with the Cyprus Shores Homeowners Association.

Both temporary emergency systems have been in continuous operation since the bluff began moving.

Due to the nearly completed slope stabilization project by the Orange County Transportation Authority (OCTA), City staff submitted an application for a California Coastal Development Permit to reinstate the existing sewer pump station by providing access to the motor control system and replacement of a portion of the storm drain system. Tentatively, the California Coastal Commission (CCC) will consider the application at its September 2023 meeting. If approved, appropriations and contracting will be presented to Council to complete the project expeditiously to minimize health and safety risks to the public and environment.

Until either an alternate pump station location or grading and the permanent replacement of the pump station motor control system is completed, the temporary emergency pump station operation using existing manholes with limited capacity (at a cost of approximately $125,000 per month) will be replaced by using the existing pump station wet well with power from SDG&E and a temporary electrical motor control system. City staff is in the process of completing the construction of the temporary motor control system and anticipates connection to the existing pump station in late August/September.

In the interim, emergency funding and contracting authorization is necessary to continue conducting operations of the temporary pump station through September. If the CCC approves the project to reinstate the sewer pump station and replace the storm drain in September, the rest of the project will be completed in two main phases: 1. Slurry filling the gap in the landslide backscarp, potentially install caisson adjacent to the backscarp for lateral support, grading and installation of the storm drain; and 2. Replacement of the sewer pump station motor control system once the access road is CITY OF SAN CLEMENTE Page 1 of 4 Printed on 7/14/2023
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Meeting Date: 7/18/2023 Agenda Item: 6M
drain; and 2. Replacement of the sewer pump station motor control system once the access road is completed. Each phase could take up to six months to complete, although the sewer pump station may take longer depending upon the availability of materials.

City staff is currently evaluating long lead time items with potential vendors as well as exploring any local vendor opportunities. Depending upon the lead times, staff may return to the City Council in advance of CCC approval to expedite the project timeline.

Background:

Storm drain and wastewater collection service is provided to approximately 400 homes in the private community. In order to protect public health and safety, the City Council ratified the emergency Professional Services Agreement and construction contracts approved by the City Manager with AKM Consulting Engineers and O’Connell Engineering and Construction, Inc. (O’Connell) and an initial appropriation of funding for expenditures, including construction management/inspection services for Dudek Engineering, material purchases and rentals at its October 19, 2021 City Council Meeting.

Subsequent to the initial movement, continued operation of the pump station with pump watch has been necessary due to lack of power from SDG&E and use of existing manholes with limited storage for pumping operation while a relocated facility was designed and an easement was being negotiated with Cyprus Shore Homeowners Association. But due to movement in the larger landslide extending to Calle Ariana, the construction of the relocated pump station and acquisition of easements within the larger landslide area was placed on hold in the fall of 2022 while the OCTA installed two rows of tie-backs within the coastal bluff. OCTA’s construction is anticipated to be complete in July 2023.

Based on an evaluation of OCTA’s completed slope stabilization project and information from Cyprus Shore’s geologist LGC Geotechnical, slope stability will be determined which will allow the City to consider placing the sewer pump station back in service and restore the storm drain. The evaluation along with design plans for the facilities will be submitted to the CCC by August 1 as a supplement to the City’s application for a Coastal Development Permit.

If the CCC approves the project in September, contracts can be considered to replace the storm drain, grade an access road to the sewer pump station electrical building and potentially install localized caissons to prevent movement of the sewer pump station and sewer line. During this interim time, staff is anticipating continued use of sewer manholes with pump watch for operation through September 2023.

City staff is currently working to complete a temporary electrical control system to place the existing sewer lift station back into service. The system will consist of the following: a temporary electrical motor control center with power from SDG&E and a backup generator to provide power in the event of a power outage. Once completed, the cost to operate using the existing wet well for storage and temporary electrical motor control system will be significantly reduced from approximately $125,000 to $14,500 per month.

The City’s current contract with O’Connell Engineering (with a principal place of business in Winchester, California) for pump watch services expires on July 29, 2023. In the next two months while staff is working to complete this temporary electrical control system to place the existing sewer lift station back into service, the current temporary emergency operations will need to continue. Staff is recommending a contract change order with the current vendor O’Connell Engineering for as needed pump watch services based on the estimated costs for rental and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary CITY OF SAN CLEMENTE Page 2 of 4 Printed on 7/14/2023
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Meeting Date: 7/18/2023 Agenda Item: 6M
such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary pump station until the temporary electrical motor control center and backup generator are operational (a maximum of 62 additional days). Additionally, $3,118 needs to be included to account for the increase in prevailing wages effective July 1, 2023. Cost estimates are shown below.

Emergency Wastewater Operation Cost Estimate (July 30 - September 30) Pump, Piping and Fittings $9,200/month
K-Rail $1,100/month
Generator $11,000/month
Diesel Fuel $4,000/month
Pump Watch (O’Connell) $180,242 for 62 days
Prevailing Wage Increase (O’Connell) $ 3,118 (7/1/23-7/29/23) Contingency 10% $10,000/month
Total (Assumes two months of operation) $253,960
Emergency Wastewater Operation Cost Estimate (October 1 - March 31) K-Rail $500/month
Generator $11,000/month
Contingency 10% $3,000/month
Subtotal $14,500/month
Total (Assumes six months of operation) $87,000
Council Options:
· Adopt Resolution No. 23-70, authorizing the City Manager enter into a change order for up two months of emergency pump watch services with O’Connell Engineering and Construction, Inc. in an amount not to exceed $183,360, plus a 10% contingency, and appropriating $340,960 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209 to fund emergency wastewater operations through March 2024.
· Modify and adopt Resolution No. 23-70.
· Continue the item with direction to staff to provide additional information.

Fiscal Impact:

Yes, $2,581,525 has been budgeted for since September 2021 for emergency bypass pump station operation. An additional 62 days of pump watch and six months of temporary electrical motor control system operation is recommended with funding from a supplemental appropriation in the amount of $340,960 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209.

There is sufficient fund balance within the proposed fund for the recommended supplemental appropriation.

CITY OF SAN CLEMENTE Page 3 of 4 Printed on 7/14/2023
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Meeting Date: 7/18/2023 Agenda Item: 6M
Environmental Review/Analysis:

Staff previously determined that the temporary operation of the sewer pump station qualifies for a Categorical Exemption under the California Environmental Quality Act (CEQA), Class 1 (Existing Facilities), Section 15301 of the state CEQA Guidelines.

Recommended Actions:

Staff Recommendation
STAFF RECOMMENDS THAT the City Council adopt Resolution No. 23-70, which would:

1. Find that an emergency exists due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public services that might otherwise occur if the city were required to incur delays attributed to the typical engineering design and public competitive bidding process;

2. Declare that the public interest and necessity demand the immediate expenditure of public funds to safeguard public health;

3. Approve a supplemental appropriation in the amount of $340,960 to Account Number 054-476 -45300-000-12209 from the Sewer Fund Depreciation Reserve to fund emergency wastewater operations through March 2024; and

4. Authorize the City Manager to execute, Change Order No. 07, with O’Connell Engineering and Construction, Inc. for Cyprus Shore Emergency Pump Station Bypass Operation, Project No. 12209, services through September 30, 2023 on a time and materials basis not to exceed $183,360.

Attachment:

1. Resolution No. 23-70

2. Location Map

3. O’Connell Engineering and Construction Contract Change Order No. 07

4. October 19, 2021 City Council Agenda Report without attachments

5. December 7, 2021 City Council Agenda Report without attachments

6. February 15, 2022 City Council Agenda Report without attachments

7. June 21, 2022 City Council Agenda Report without attachments

8. July 19, 2022 City Council Agenda Report without attachments

9. September 20, 2022 City Council Agenda Report without attachments

10.February 7, 2022 City Council Agenda Report without attachments Notification:

None.

CITY OF SAN CLEMENTE Page 4 of 4 Printed on 7/14/2023
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RESOLUTION NO. 23-70

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING A CONTRACT

CHANGE ORDER TO CONTINUE EMERGENCY PUMP
WATCH SERVICES FOR TWO MONTHS WITH O’CONNELL
ENGINEERING AND CONSTRUCTION, INC. AND

APPROPRIATING SUPPLEMENTAL FUNDING FOR

CYPRUS SHORE PUMP STATION EMERGENCY
OPERATION, PROJECT NO. 12209, THROUGH MARCH
2024 IN THE AMOUNT OF $340,960
WHEREAS, there was coastal bluff landslide within Cyprus Shore Community Association in 2021 that impacted City owned storm drain and wastewater collection system infrastructure; and
WHEREAS, on September 20, 2021, City Utility staff installed a temporary wastewater collection pump system using manholes requiring generator power and pump watch to ensure the pump turn on and off due to lack of storage within the system to prevent a sewer spill; and
WHEREAS, the City Manager approved an emergency Contract with O’Connell Engineering and Construction, Inc. which was ratified by the City Council on October 19, 2021 for temporary wastewater pump station pump watch and the City Council declared the project an emergency to protect public health and safety; and WHEREAS, subsequent change orders through July 29, 2023 have been approved or ratified by the City Council for a total of $1,862,988; and WHEREAS, the current agreement with O’Connell Engineering and Construction, Inc. through the last approved change order expires on July 29, 2023; WHEREAS, Orange County Transportation Authority completed a slope stabilization project, which will allow the City to utilize its existing wastewater pump station with a temporary electrical motor control center in August or September; and WHEREAS, this project has previously been determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities), Section 15301 of the state CEQA Guidelines.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:

Section 1. That the above recitals are true and accurate and are incorporated fully herein.

Section 2. That an emergency exists due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate Attachment 1
5 Resolution No. 23-70 Page 2
action to prevent or mitigate impairment to property and public services, that might otherwise occur if the City were required to incur delays attributed to the typical engineering design and public competitive bidding process in connection with this project.

Section 3. That the public interest and necessity demand the immediate expenditure of public funds to safeguard public health.

Section 4. That a supplemental appropriation in the amount of $340,960 to Account Number 054-476-45300-000-12209 from the Sewer Fund Depreciation Reserve is approved.

Section 5. That the City Manager is authorized and directed to approve Change Order No. 07 with O’Connell Engineering and Construction, Inc. for Cyprus Shore Emergency Pump Station Bypass Operation, Project No. 12209, services through September 30, 2023 on a time and materials basis not to exceed $183,360 in a form substantially similar as that attached hereto as Exhibit A, which is fully incorporated herein by this reference.

Section 6. The City Clerk shall certify the passage and adoption of this resolution and enter it into the original book of resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2023.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
6 Resolution No. 23-70 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-70 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
7 VISTA AZUL VIA RANCHO

CLE CAMPESINO

CLE MARLENA

CLE ISABELLA

CLE LISA

CLE ARIANA

CLE LOUISA

AVE DE LAS PALMERAS

AVE VISTA DEL OCEANO

CLE ARIANA

CLE TIARA

VIA CALANDRIA

VIA ADELIA

CLE DE LAS FOCAS

CLE POTRANCA CLE DEL ESTABLO

VISTA BLANCA

CLE TIBURON

CLE POTRO

L PRESIDENTE
REAL (COAST HWY) A. T. & S. F. R. R.

A. T. & S. F. R. R.

AVE LUCIA

AVE DOLORES

AVE BUENA VENTURA

AVE SAN FERNANDO

AVE PALA

AVE SANTA MARGARITA AVE CARMELO

CLE FRANCESCA

VIAJASMIN

VIA COLORSO

AVE SAN DIEGO CLE ISABELLA

SAN DIEGO FREEWAY
Cyprus Shore Storm Drain and
Pump Station Relocation
Attachment 2
PN 12004 & 12209

NOT TO SCALE

PROJECT

LOCATION
8 910 Calle Negocio, Suite 100
San Clemente, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316
Attachment 3
9 CITY OF SAN CLEMENTE

CONTRACT CHANGE ORDER
PROJECT: Cyprus Shore Emergency Bypass Monitoring Contract PROJECT NO. : 12209
OWNER: City of San Clemente
PROJ. MGR.: David Rebensdorf, Utilities Director
CONTRACTOR: O'Connell Engineering and Construction Inc
36572 Deauville Road
Winchester, CA. 92596
Original Contract Amount:

Previous CCO(s) Amount:

This CCO Amount:

Revised Contract Amount:

Notice to Proceed Date:

Original Contract Completion Date (30 Days):

Extended Calendar Days Through Previous CCO's:

Extended Calendar Days By This CCO:

Total Extension Calendar Days:

Extended Date for Completion:

Substantial Completion Date:

Change Order No.: 07
Date: 7/24/2023

$83,988.00
$1,862,988.00
$183,359.52
$2,048,434.28
10/20/21
11/03/21
631
62 693
NIA
09/30/23
We hereby agree to extend the original contract by 63 days per this Change Order. This Order shall not be considered as such, until it has been signed by the Contractor and approvals are provided by the City.

The amount indicated shall be compensation on a time and materials basis for the work described, including all time extensions, direct and indirect costs, incidental or consequential costs or expenses, that have been or will be incurred by the Contractor.

O'Connell Engineering and Construction Inc
(Approval)
By:---------------

CITY OF SAN CLEMENTE
(Approvals)
By: _____________ _
By: _____________ _
Title: _________ _ Date: _____ _
Title: Utilities Director/Construction Mgr Date: _____ _ Title: City Manager Date: _____ _
10 Item
No.

A
B
C

CITY OF SAN CLEMENTE

CONTRACT CHANGE ORDER
Exhibit "A"
Cyprus Shore Emergency Bypass Monitoring Contract
Project No.: 12209
Force Acct. or
Contract Extended Negotiated
Description Qty. Unit Unit Price Total Price
Cyprus Shore Emergency Bypass
Monitoring Contract 1 LS n/a n/a $180,241.44
Account# 054-476-45300-000-12209
Continued monitoring services from
7130123 through 9/30123
Cyprus Shore Emergency Bypass
Monitoring Contract 1 LS n/a n/a $3,11 8.08
Account# 054-476-45300-000-12209
Increase in prevailing wage 711/23-
7129/23
SUBTOTALS: $0.00 $183,359.52
Total Price for this Contract Change Order= $183,359.52 CCO#: 07
Date: 07/24/23
Page: 2 of 2
Time Extension Total Time
(Calendar Days) Extension
weather Other (CD)
0 62 693
Total Time Ext. , 693
11 O'Connell Engineering & Construction
36572 Deauville Rd.

Winchester, CA 92596-901 2
TITLE: Monitoring a bypass
system at Cyprus Shore
Phone: 951-623-6034
Fax: 95 1-790-0 122
TO: Attn: Julie Schmidt and David Rebensdorf
City of San Clemente
RE:
380 Avenida Pico, Bldg. J
San Clemente, CA 92672
To:

DESCRIPTIO OF PROPOSAL
From:

Proposal
No.

DATE: 6/30/23
CONTRACT NO:

Number:
00lUpdated
1) Originally O'Connell Engineering provides 3 competent people on 8 hours shift t o monitor and watch a bypass system located in Cyprus Shores community for $115.50 an hour, however with the wage increase of $3.20 an hou r which is the new prevailing wage rate we need to increase the bill to $118.70 Per hour. Originally, we are providing Certified payroll fo r this project for the added sum of $1.15 an hour which is increasing to $2.43 per hour. Total payroll cost per hour is now $121.13 an hour. I have included a copy of our business License and our updated Insurance certification.

Item
00001
00002
Description
Bypass monitoring
Administration
APPROVAL:

Stock#
By:---------
Rhonda O'Connell
Date: 6/30/23
Quantity Units
30 days
30 days
Unit Price
$85,464.00
$1,749.60
Tax Rate Tax Amount et Amount
$85,464.00
$1 ,749.60
Unit Cost:

Unit Tax:

Total:
$87,213.60
$0.00
$87,213.60
By: _________ _
Date: __________ _
12 PREDETERMINED INCREASE
CRAFT:

Laborer and Related Classifications
DETERMINATION:

SC-23-102-2-2022-1
LOCALITIES:

All localities within Imperial, Inyo, Kern , Los Angeles, Mono, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara and Ventura Counties.

This predetermined increase for the above named craft applies only to the current determination for work being performed on public works projects with bid advertisement dates on or after September 1, 2022, until th is determination is superseded by a new determination or a predetermined increase modification notice becomes effective.

When referencing our prevailing wage determinations, please note that if the prevailing wage rate determination which was in effect on the bid advertisement date of a project, has a single asterisk (*) after the expiration date, the rate will be good for the life of the project. However, if a prevailing wage rate determination has double asterisks (**) after the expiration date, the rate must be updated on the following date to reflect the predetermined rate change(s).

LABORER
Determination SC-23-102-2-2022-1 is currently in effect and expires on June 30, 2023**.

Effective July 1, 2023, there will be an increase of $3.20 to be allocated as follows $2.1 5 to Basic Hourly Rate, $0.20 to Health/Welfare, $0.80 to Pension and $0.05 to Training.

Effective July 1, 2024, there will be an increase of $3.30 to be allocated to wages and/or fringes .

Effective July 1, 2025, there will be an increase of $3.40 to be allocated to wages and/or fringes .

There will be no further increases applicable to this determination .

Issued 8/22/2022, Effective 9/1/2022 until superseded .

This page will be updated when wage rate breakdown information becomes available.

Last Updated: May 30, 2023
10-19-21 / 9B-1
Attachment 4
13 Department:

Prepared By:

Subject:

Utilities

AGENDA REPORT

SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date: October 19, 2021
David Rebensdorf, Utilities Director D~
Agenda Item ---2i5a_
Approvals:

City Manager /e,,,7
Dept. Head .~
Attorney --- Finance JR,

RA TIF/CA TION OF EMERGENCY PURCHASES, PROFESSIONAL SERVICES AGREEMENT WITH

AKM CONSULTING ENGINEERS AND CONSTRUCTION CONTRACTS WITH O'CONNELL

ENGINEERING FOR CYPRUS SHORE STORM DRAIN EMERGENCY RELOCATION AND CYPRUS SHORE PUMP STATION EMERGENCY RELOCATION, PROJECT No. 's 12004 AND 12209.

Fiscal Impact: Yes. An estimated $205,400 is recommended for continuous emergency operation of the pump station and bypass for two months. An appropriation of $205,400 is recommended from the Sewer Fund Depreciation Reserve to Account No. 054-4 76-45300-000-12209.

The initial estimated cost for design, permitting and power for a temporary pump station relocation with remote monitoring and improved operating capabilities is $88,580. An appropriation of $88,580 is recommended from the Sewer Connection Fee Reserve to Account No. 054-477-45300.

The estimated cost for the temporary relocation of the storm drain is $256,000. An appropriation of $256,000 is recommended from the Storm Drain Fund Depreciation Reserve to Account No. 059-553-45300-000-12004.

There is sufficient fund balance within all proposed funds for the recommended appropriations.

Summary: Coastal bluff movement at Cyprus Shore necessitated an emergency response to ensure uninterrupted wastewater and storm drainage in September 2021. In order to protect public health and safety, staff recommends the City Council ratify the emergency Professional Services Agreement and construction contracts approved by the City Manager with AKM Consulting Engineers and O'Connell Engineering and Construction, Inc. (O'Connell) and appropriate funding for the expenditures including construction managemenUinspection services for Dudek Engineering, material purchases and rentals.

Background: When the Cyprus community was developed, the collection system, a sewer pump station serving approximately 400 homes and a portion of the storm drain system was dedicated to and accepted by the City. Due to coastal bluff movement adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras and to protect public safety and property a temporary emergency sewer bypass was installed by City staff on September 20, 2021. In addition, a bypass of the storm drain in Avenue de las Palmeras and the private beach access road may be Util ities Agenda Report
/J
10-19-21 / 9B-2
14 Agenda Report Page 2
necessary to accommodate urban runoff and storm flows until the bluff is stabilized and rebuilt. Design analysis to address urban runoff and storm flows is ongoing, and alternative methods may be implemented.

The temporary emergency sewer pump station bypass is utilizing two existing manholes and pumps with generator power to convey wastewater in above ground piping to the sewer forcemain. This type of operation should be considered temporary due to lack of storage within the system and is recommended for continuous monitoring to prevent a sewer spill in the event a pump or generator fails to operate.

Due to limited City staffing and to ensure preventative maintenance activities are being completed by City staff for other facilities, O'Connell was hired to perform pump watch for a cost of $83,988 for 30 days. Staff contacted four companies and O'Connell provided the lowest informal bid, Xylem provided a bid in the amount of $123,000 per month. Newest and J.R. Filanc did not provide a bid due to lack of available staffing.

Due to the emergency nature of wastewater pump station operation, AKM Consulting Engineers was hired to design a temporary pump station to ensure uninterrupted operation by adding power, telemetry and wastewater storage instead of relying on storage within existing manholes and pipelines that can clog from debris and grease.

The additional capacity created from storage can be utilized in conjunction with the existing pump station which will increase available response time in the future when operation failures of Cyprus Shore Pump Station occur. Due to the need for increased capacity, the Sewer Connection Fee Reserve is being recommended to fund the temporary pump station. Additional funding, material purchases and construction costs are anticipated and will be considered as more information becomes available.

To assist with the design and construction for temporary relocations of the wastewater pump station and storm drain, AKM Consulting Engineers was hired for an amount not to exceed $98,464. O'Connell was hired for 30 days of pump watch in the amount of $83,988, with an option to extend the contract for an additional 30 days and $40,000 for installation of the Storm Drain Emergency Bypass. In addition, 500 linear feet of High Density Polyethylene pipe and fittings was ordered from P&F Distributors in the amount of $122,392. Dudek Engineering was contacted and will provide construction management and inspection services, through an existing on-call agreement, for the duration of the emergency construction relocations. The City Manager has the authority to approve emergency contracts and purchases when there is a need to protect public health and safety per Section 3.40.070 of the City of San Clemente Municipal Code.

The estimated cost for temporary wastewater service operations, temporary sewer pump station design and temporary relocation of the storm drain are shown on the following page.
10-19-21 / 9B-3
15 Agenda Report
Recommended
Sewer Costs
Emergency Pump Station Operation Estimated Costs
Pump, Piping and Fittings $ 8,000/month
700/month
10,000/month
84,000/month
K-Rail
Generator
Pump Watch (O'Connell)
Subtotal
Total (Assumes two months of operation)
Temporary Pump Station Relocation Estimated Costs
102, 700/month
$205,400
Engineering $ 48,580
Administration/Permitting 15,000
Power (Transformer and Meter) 25,000
Inspection/Construction Management TBD
Manhole/Wetwell TBD
Construction TBD
Total Cost $ 88,580
Storm Drain Costs
Temporary Relocation Costs
Engineering
Administration/Permitting
Inspection/Construction Management
500' of 36-inch HOPE Pipe and Fittings
Construction
Contingency
Sandbags
K-Rail (550/month X 4 months}
Total Cost
$ 49,884
15,000
10,000
125,000
40,000
10,116
3,800
2,200
$256,000

Action: STAFF RECOMMENDS THAT the City Council:

1. Make a finding that an emergency exists due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public services, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process;

2. Declare that the public interest and necessity demand the immediate expenditure of public funds to safeguard public health;

3. Approve an appropriation in the amount of $205,400 to Account Number 054-4 76- 45300-000-12209 from the Sewer Fund Depreciation Reserve; 10-19-21 / 9B-4
16 Agenda Report Page4

4. Approve an appropriation in the amount of $88,580 to Account Number 054-477- 45300 from the Sewer Connection Fee Reserve;

5. Approve an appropriation in the amount of $256,000 to Account Number 059-553- 45300-000-12004 from the Storm Drain Fund Depreciation Reserve;

6. Ratify a Construction Contract with O'Connell Engineering and Construction, Inc. on a time and materials basis for up to $83,988 and authorize the City Manager to extend the Contract for an additional 30 days, if needed, for Cyprus Shore Emergency Pump Station Bypass Operation, Project No 12209;

7. Ratify a Construction Contract with O'Connell Engineering and Construction, Inc. on a time and materials basis for up to $40,000 for Cyprus Shore Storm Drain Emergency Relocation, Project No 12004;

8. Ratify a purchase with P&F Distributors for storm drain pipe and fitting in the amount of $122,391.75 for Cyprus Shore Storm Drain Emergency Relocation, ProjectNo 12004: and,

9. Ratify an Emergency Professional Services Agreement with AKM Consulting Engineers on a time and materials basis for up to $98,464 for Cyprus Shore Storm Drain Emergency Relocation and Cyprus Shore Emergency Pump Station, Project No.'s 12004 and 12209.

Attachments: 1. Location Map.

2. Construction Contract with O'Connell for Cyprus Shore Emergency Pump Station Bypass Operation.

3. Construction Contract with O'Connell for Cyprus Shore Storm Drain Emergency Relocation.

4. P&F Distributors Quote.

5. Professional Services Agreement with AKM Consulting Engineers for Cyprus Shore Storm Drain Emergency Relocation and Cyprus Shore Emergency Pump Station.

Notification: None.
i:\cu\secure\staff\admin\agenda-admin reports\2021 admins\10-19-21\10-19-1 r cyprus shore emergency projectdocx.docx Attachment 5
17 Js~N _C{~
~ ~- .. ~ u ' ..:,¾. (T)
. •:--,::-•
Department:

Prepared By:

Subject:

Fiscal Impact:

Utilities

AGENDA REPORT

SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date: December 7, 2021
David Rebensdorf, Utilities Director D 12-
Agenda Item L.Q 2)
Approvals:

City Manager
Dept. Head
Attorn ey
Finance
..,<:->,,...--

RATIFICATION OF EMERGENCY PURCHASES AND SUPPLEMENTAL FUNDING FOR CYPRUS

SHORE PUMP STATION EMERGENCY OPERATION AND CYPRUS SHORE STORM DRAIN EMERGENCY RELOCATION, PROJECT No. 's 12209 AND 12004.

Yes. $205,400 was approved for an initial 60 days of emergency bypass pump station operation. An additional 60 days of operation is recommended with funding from a supplemental appropriation in the amount of $236,000 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209.

The initial estimated cost for the temporary relocation of the storm drain was $256,000.

Based on design and procurement of materials, the updated cost estimate is $411,000. Staff is recommending a supplemental appropriation in the amount of $155,000 from the Storm Drain Fund Depreciation Reserve to Account No. 059-553- 45300-000-12004.

There is sufficient fund balance within all proposed funds for the recommended appropriations.

Summary: Coastal bluff movement at Cyprus Shore necessitated an emergency response to ensure uninterrupted wastewater and storm drainage. On September 20, 2021 , City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras. In order to protect public health and safety, the City Council ratified the emergency Professional Services Agreement and construction contracts approved by the City Manager with AKM Consulting Engineers and O'Connell Engineering and Construction, Inc. (O'Connell) and an initial appropriation of funding for expenditures, including construction management/inspection services for Dudek Engineering, material purchases and rentals at its October 19, 2021 City Council Meeting. With the need for continued operation of the pump station with pump watch while a more permanent facility is constructed and based on detailed design of the storm drain relocation, additional funding is being recommended. In addition , due to lack of availability of materials and changes in suppliers, ratification of purchases is required .

Background: To continue sewer service to approximately 400 homes within the Cyprus community while design and construction of a temporary pump station with electric power and monitoring capabilities, additional costs for pump watch are needed. Staff is anticipating approximately 60 additional days may be needed for pump watch to ensure uninterrupted service and to prevent a sewer spill. O'Connell was hired through Utilit ies Agenda Report
12-7-21 / 6J-1
18 Agenda Report Page 2
an emergency contract to provide 30 days of pump watch for $83,988 which was extended for 30 days as previously authorized by the City Council. Several temporary and permanent pump station options were evaluated which requires additional time to for design. Staff is recommending the City Council authorize the City Manager to approve a contract change order for as needed pump watch for an additional 60 days with O'Connell. In addition, funding is needed for expenditures related to rentals and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary pump station. The temporary relocation of the pump station is under design and electrical power is being installed by SDG&E.

Staff anticipates completion of pump watch in February 2022. Once design is finalized, staff will recommend additional funding and contracts for the temporary relocation of the pump station.

The storm drain above ground bypass is under construction and consists of approximately 500 linear feet of above ground 36-inch High Density Polyethylene (HOPE) Pipe and 100 linear feet of 18-inch HOPE Pipe routed south of the association Clubhouse and through the private community park. K-rail, sandbags and visqueen will be utilized to route nuisance and storm flows around the clubhouse and into the 18-inch storm drain (see Exhibit 2). Due to an issue with availability of pipe, the ratified purchase from P&F Distributors by the City Council on October 19, 2021 was not completed. Fortunately, storm drain pipe and fittings were available through Envirocon Systems in the amount of approximately $120,000. In addition, staff is requesting the City Council ratify a construction contract with Sancen Technologies, Inc. in the amount of $57,280 to install approximately 225 linear feet of liner from the above ground junction structure near the clubhouse to the intersection of Avenue de las Palmeras and Calle Marlena due to increased pressure in the storm drain caused by the above ground piping. Construction for the relocation of the storm drain is anticipated to be complete by the end of December 2021.

The City Manager has the authority to approve emergency contracts and purchases when there is a need to protect public health and safety per Section 3.40.070 of the City of San Clemente Municipal Code. The estimated cost for temporary wastewater service operations and temporary relocation of the storm drain are shown below.

Emergency Wastewater Operation Cost Estimate
Pump, Piping and Fittings
K-Rail
Generator
------ Diesel Fuel
$ 8,500/month
700/month
11,000/month ---- ······ -·-··---- - --~.800/month· -
Pump Watch (O'Connell)
Contingency 10%
Subtotal
Total (Assumes two months of operation)
84,000/month
10,000/month
118,000/month
$236,000
12-7-21 / 6J-2
19 Agenda Report
Recommended
Storm Drain Temporary Relocation Costs
Approved Initial Estimate
Engineering
Administration/Permitting
Inspection/Construction Management
500' of 36-inch HDPE Pipe and Fittings
Construction
Contingency
Sandbags
K-Rail (550/month X 4 months)
Total Cost
Current Cost Estimate
Engineering
Administration/Permitting
Inspection/Construction Management
500' of 36-inch and 100' of HOPE Pipe and Fittings
Thrust Restraint Pipe Clamps
Construction
36-inch Storm Drain Liner
Contingency 12%
36-inch Storm Drain Plug Rental and Maintenance
Sandbags
K-Rail (700/month X 6 months)
Total Cost
$ 49,884
15,000
10,000
125,000
40,000
10,116
3,800
2,200
$256,000
$ 49,884
15,000
22,500
120,000
20,000
40,000
60,000
40,616
35,000
3,800
4,200
$411,000
Page3
Action: STAFF RECOMMENDS THAT the City Council:

1. Make a finding that an emergency exists due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public services, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process;

2. Declare that the public interest and necessity demand the immediate expenditure -····-·-· •·· ·-·-···of -publi-c-funds··to··safeg ard-pab-lic·health;· -··········-··-··· -······· · ----·· · ··

3. Approve a supplemental appropriation in the amount of $236,000 to Account Number 054-476-45300-000-12209 from the Sewer Fund Depreciation Reserve;

4. Approve a supplemental appropriation in the amount of $155,000 to Account Number 059-553-45300-000-12004 from the Storm Drain Fund Depreciation Reserve;
12-7-21 / 6J-3
20 Agenda Report Page4

5. Authorize the City Manager to approve a change order with O'Connell Engineering and Construction, Inc. on a time and materials basis for up to $168,000 for Cyprus Shore Emergency Pump Station Bypass Operation, Project No 12209;

6. Ratify a purchase with Envirocon Systems for storm drain pipe and fittings in the amount of $120,000 for Cyprus Shore Storm Drain Emergency Relocation, Project No 12004: and,

7. Ratify a Construction Contract with Sancen Technologies, Inc. in the amount of $57,280 Cyprus Shore Storm Drain Emergency Relocation, Project No 12004.

Attachments: 1. Location Map.

2. Storm Drain Location Exhibit.

3. Envirocon Systems Initial Purchase Order.

4. Sancon Technologies, Inc. Construction Proposal for a 36-inch Storm Drain Liner.

The Construction Contract is on-file with the City Clerk's Office.

5. October 19, 2021 City Council Agenda Report without attachments.

Notification: None.
12-7-2 1 / 6J-4
' --,
Attachment 6
21 Deparlment:

Prepared By:

Subject:

Fiscal Impact:

Summary:

Background:

Utilities

AGENDA REPORT

SAN CLEMENTE CITY COUNCIL MEETING
· Meeting Date: February 15, 2022
David Rebensdorf, Utilities Director f) [Z
Agenda Item . (oj
Approvals:

City Manager 4;J1 jo
Dept Head CJ P-.

Attorney CJ .Finance£ f;l---
RAT/FICA T/0N OF EMERGENCY PURCHASES AND SUPPLEMENTAL FUNDING FOR CYPRUS SHORE PUMP STATION EMERGENCY OPERATION, PROJECT No. 12209.

Yes. $441,400 was approved for an initial 120 days of emergency bypass pump station operation. An additional 90 days of operation is recommended with funding from a supplemental appropriation in the amount of $354,000 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209. There is sufficient fund balance within the proposed fund for the recommended supplemental appropriation.

Coastal bluff movement at Cyprus Shore necessitated an emergency response to ensure uninterrupted wastewater and storm drainage. On September 20, 2021, City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras. In order to protect public health and safety, the City Council ratified the emergency Professional Services Agreement and construction contracts approved by the City Manager with AKM Consulting Engineers and O'Connell Engineering and Construction, Inc. (O'Connell) and an initial appropriation of funding for expenditures, including construction management/inspection services for Dudek Engineering, material purchases and rentals at its October 19, 2021 City Council Meeting. With the need for continued operation of the pump station with pump watch while a more permanent facility is designed and constructed, additional operational funding was approved on December 7, 2021. To allow for procurement of materials and construction of a temporary pump station, an additional 90 days may be needed for emergency wastewater pumping operation.

To continue sewer service to approximately 400 homes within the Cyprus community while construction of a temporary pump station with electric power and monitoring capabilities, additional funding for pump watch and equipment and materials is needed. Design has been completed for the temporary pump station and informal bids are anticipated by the middle of February. Staf( is anticipating approximately 90 additional days may be needed for pump Watch to ensure ·uninterrupted service and · to prevent a sewer spill. If possible, the time .the services are needed will be reduced based on availability of equipment and pow,~L · · · ·
Staff is recommending the City Council .authorize the City Manager to approve a contract change order for as needed pump watch based on the estimated costs for Utilities Agenda Report
2-15-22 I 6J -1
22 Agenda Report
Recommended

rental and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and f1,.1el to operate the temporary pump station as shown below,:·.· Emetgency Wastew;a~er Operation Cost Estimate · , ·, . ·., . ~ . . . ~ , . . . . . ... ~ _;._ Pl.imp, Piping and Fittings.· ..

K-Rail
Generator
Diesel Fuel
Pump Watch (O'Connell)
Contingency 10%
Subtotal
Total (Assumes three months of operation)
· $ 8,500/rnonfh
700/month
11,000/month
3,800/month
84,000/month
10,000/month
118,000/month
$354,000
Action: STAFF RECOMMENDS THAT the City Council:

1. Approve a supplemental appropriation in the amount of. $354,000 to Account Number 054-476-45300-000-12209 from the Sewer Fund Depreciation Reserve; and,

2. Authorize the City Manager to approve a change order with O'Connell Engineering and Construction, Inc. on a time and materials basis for up to $354,000 for Cyprus Shore Emergency Pump Station Bypass Operation, Project No 12209.

Attachments: 1. Location Map.

2. October 19, 2021 City Council Agenda Report without attachments.

3. December 7, 2021 City Council Agenda Report without attachments.

Notification: None.
i:\cu\secure\staff\admin\agenda-admin reports\2022 admins\2-15-22\2-15-22-4r cyprus shore emergency project,docx 2-15-22 / 6J -2
Attachment 7
23 Department:

Prepared By:

Subject:

Fiscal Impact:

Summary:

IJtiliti.es

AG,ENDA REPORT

SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date: June 21, 2022
David Rebensdorf, Utilities Director P!Z
Agenda Item 4L
Approvals:

City Manager
Dept. Head
Attorney
Finance ~ :t.f-:-:::: ::;,

RATIFICATION OF EMERGENCY PURCHASES AND SUPPLEMENTAL FUNDING FOR CYPRUS SHORE PUMP STATION EMERGENCY OPERATION, PROJECT No. 12209 AND CYPRUS SHORE STORM DRAIN EMERGENCY RELOCATION, PROJECT NO. 12004.

Yes. For the Cyprus Shore Pump Station Emergency Operation, Project No. 12209, $795,400 has been budgeted for the initi:al 210 days of emergency bypass pump station operation. An additional 90 days of operation is recommended with funding from a supplemental appropriation in the amount of $357,225 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209.

For the Cyprus Shore Storm Drain Emergency Relocation, Project No. 12004, $451,000 has been budgeted, and a supplemental appropriation of $98,412 is recommended from the Storm Drain Fund Depreciation Reserve to Account No. 059- 5S3-45300-000-12004 for relocation design.

There is sufficient fund balance within the proposed funds for the recommended supplemental appropriations.

Coastal' bluff movement at Cyprus Shore necessitated an emergency response to ensure uninterrupted wastewater and storm drainage. On September 20, 2021, City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras. In order to protect public health and safety, the City Council ratified the emergency Professional Services Agreement and construction contracts approved by the City Manager with AKM Consulting Engineers and O'Connell Engineering and Construction, Inc. (O'Connell) and an initial appropriati.on of funding for expenditures, tnduding construction management/inspection services for Dudek Engineering, material purchases and rentals at its October 19, 2021 City Council Meeting. With the need for continued operation of the pump station with pump watch while a more permanent facility is designed and constructed, additional operational funding was approved on December 7, 2021 , February 15, 2022, and April 5, 2022. To allow for procurement of materials and construction of a temporary pump station, an additional 90 days is. needed for emergency wastewater pumping operation.

Utilities Agenda Report
6-21-22 / 4L-1
24 Agenda Report Page 2
Background: Cyprus Shore Pump Station Emergency Operation, Project No. 12209 To continue sewer service to approximately 400 homes within the Cyprus community whi le construction is completed of a temporary pump station with electric power and monitoring capabilities, additional funding for pump watch and equipment and materials is needed. Staff is anticipating 90 additional days to allow the contractor to procure material and start construction. The contractor is working on a schedule to temporarily operate the pump station without requiring in person pump watch .

Procurement of materials which impacts sequencing of construction is delaying the schedule to eliminate pump watch. Additional time and funding for in person pump watch is needed to ensure uninterrupted service and to prevent a sewer spill.

Staff is recommending the City Council ratify the City Manager's approval of a contract change order for as needed pump watch based on the estimated costs for rental and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary pump station as shown below.

Emergency Wastewater Operation Cost Estimate
Pump, Piping and Fittings
K-Rail
Generator
Diesel Fuel
Pump Watch (O'Connell)
Contingency 10%
Subtotal
Total (Assumes three months of operation)
$ 8,200/month
1,075/month
11 , 000/month
3,800/month
85,000/month
10,000/month
119,075/month
$357,225
Cyprus Shore Storm Drain Emergency Relocation, Project No. 12004:

Due to the recent landslide at Cyprus Shore development near the Club House, the City's storm drain system was compromised and needs to be replaced and relocated with a new permanent below grade storm drain system. The new storm drain will include approximately three catch basins on Avenida de Las Palmera just east and west of Calle Ariana , and one catch basin on Calle Ariana east of Avenida de Las Palmera, as shown on Attachment 2. The captured storm runoff in these catch basins will be conveyed , via a 36-inch HOPE pipe and possibly one smaller diameter pipe depending upon the hydraulic analysis, through the HOA's private park joining the existing storm on the westerly side of the park.

Since AKM Consulting Engineers (AKM) designed the temporary relocation design and study for this project and are very familiar with this area, staff requested a proposal for design and preparation of a bid package, including construction support services.

AKM provided a proposal in the amount of $98,412 for this work. Staff reviewed their proposal and the City Manager approved a Professional Services Agreement. Due to the emergency caused by the landslide and the need to improve drainage in a timely manner, staff recommends ratifying the Professional Consultant Services Agreement with AKM (Attachment 8). The City Manager has the authority to approve emergency 6-21-22 I 4L-2
25 Agend a Report
Recommended

contracts and purchases when there is a need to protect public health and safety per Section 3.40.070 of the City of San Clemente Municipal Code.

Action: STAFF RECOMMENDS THAT the City Council:

1. Make a finding that an emergency continues to exist due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public services, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process;

2. Approve a supplemental appropriation in the amount of $357,225 to Account Number 054-476-45300-000-12209 from the Sewer Fund Depreciation Reserve;

3. Ratify a Change Order with O'Connell Engineering and Construction, Inc. on a time and materials basis for $255,000 for Cyprus Shore Emergency Pump Station Bypass Operation, Project No. 12209;

4. Approve a supplemental appropriation in the amount of $98,412 from the Storm Drain Fund Depreciation Reserve to account 059-553-45300-000-12004; and

5. Ratify a Professional Services Agreement with AKM Consulting Engineers for design services for Cyprus Shore Storm Drain Emergency Relocation, Project No. 12004 for an amount not to exceed $98,412.

Attachments: 1. Location Map

2. Proposed design for new Storm Drain, Project No.12004.

3. October 19, 2021 City Council Agenda Report without attachments.

4. December 7, 2021 City Council Agenda Report without attachments.

5. February 15, 2022 City Council Agenda Report without attachments.

6. April 5, 2022 City Council Agenda Report without attachments.

7. O'Connell Engineering and Construction Contract Change Order No. 04.

8. AKM Consulting Engineers Professional Services Agreement.

Notification: None.
6-21 -22 I 4L-3
Attachment 8
26 Departme·n,t:.

Prep·ared By::

Subject:

Fiscal lmpac·t:

Summary:

Utilities

AGENDA REPORT

SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date·: Ju ly 19, 2022
David Rebensdorf, Utmties Di1riector D~
Agenda Item ,4 L
Approvals:

City Manager <£,,S 1'.?
Dept. Head \)~
Attorney Q:r
Finance 0 R.

RAFfFlCA,TlO'N OF EMER'GENCY PURCHASES ANID SUPPLEM'ENTAL FtJNDING FOR CYPRUS SHORE PUMP STATION EM!ERGENCY OPERA FlON, PROJECT NO. 12'209 AND CYPRUS SHORE STORMt DRAlfNi EM'ERGENCY RELOCA\TION, PROJECT NO. 12'00'4.

Yes. Fo,r the Cyprus. Shore Pump Stati:on Emerg:e,rncy Operati'on, Project No. 12209, $79.5,400 lilas been budg:etedl forr the initilal 2110 days, of emergetllcy bypass pump statron operntion. An adlditronal1 90 days of operation is recommended with funding from a supplemental appmpriati,on in the amm.mt of $357,225 from the Sewer Fund Depreciation Reserve to Accou1nt No. 054-4!76-45-300-000-1'2209. f o,r the Cyprus Shore Storm Drain Emerg;ency RelIocation, Project No. 12004, $4511,.rn::io has, been budgeted , and a supplemental. appmpri.ation of $98,412 is recommended from the Storm Drarn Fund Depreciation Reserve to Account No. 059- 553-45300-000-1·2004 for rel'ocation design.

There is sufficient fund balance within the proposed funds for the recommended SlUpplemental approp-riati:ons.

Coastal bluff movement at Cyprns Shore necess.itated an emergency response to ensure u1111interrupted wastewater and storm drainag.e. On September 20, 2021 , City staff ins.taUed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of CaUe Ari1ana and Avenue de las Palmeras. 111 order to protect public health and safety, the City Council ratified the emerg.e·111cy Professional Services A.greemen.t andi co.nstruction contracts approved by the City Manag·er with AKM Consulting Eng1ineers and O'Connell Engineering and Constmcfiion, Inc. (O'Connell) and an initial apprnprfation of funding for expenditures, includiin:g cons.tructio11 management/inspection services for Dud'ek Engineering, material1 purchases and rental's at its October 119, 20.21. City Council Meeting. With the need for continued operiation of the pump stati:on wi,th pump, watch while a more permanent facil:ity is designed and constructed, addi1tional operati'onat funding was appmvedl on December 7,, 2021, February 15, 2022, and April: 5,, 2022. To allow for procufemernt of materials and constmction of a temporary, pump station, an additional 9:0 days is needed for emerrg.ency wastewater pumping, operation.

Utilities Agenda Report
7-19-22 I 4L-1
27 Agenda Report Page 2
Background: Cyprus Shore Pump Station Emergency Operation, Project No. 12209 To continue sewer service to approximately 400 homes within the Cyprus community while construction is completed of a temporary pump station with electric power and monitoring capabilities , additional funding for pump watch and equipment and materials is needed. Staff is anticipating 90 additional days to allow the contractor to procure material and start construction. The contractor is working on a schedule to temporarily operate the pump station without requiring in person pump watch.

Procurement of materials which impacts sequencing of construction is delaying the schedule to eliminate pump watch. Additional time and funding for in person pump watch is needed to ensure uninterrupted service and to prevent a sewer spill.

Staff is recommending the City Council ratify the City Manager's approval of a contract change order for as needed pump watch based on the estimated costs for rental and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary pump station as shown below.

Emergency Wastewater Operation Cost Estimate
Pump, Piping and Fittings
K-Rail
Generator
Diesel Fuel
Pump Watch (O'Connell)
Contingency 10%
Subtotal
Total (Assumes three months of operation)
$ 8,200/month
1,075/month
11 , 000/month
3,800/month
85,000/month
10,000/month
119,075/month
$357,225
Cyprus Shore Storm Drain Emergency Relocation, Project No. 12004:

Due to the recent landslide at Cyprus Shore development near the Club House, the City's storm drain system was compromised and needs to be replaced and relocated with a new permanent below grade storm drain system. The new storm drain will include approximately three catch basins on Avenida de Las Palmera just east and west of Calle Ariana, and one catch basin on Calle Ariana east of Avenida de Las Palmera, as shown on Attachment 2. The captured storm runoff in these catch basins will be conveyed , via a 36-inch HOPE pipe and possibly one smaller diameter pipe depending upon the hydraulic analysis, through the HOA's private park joining the existing storm on the westerly side of the park.

Since AKM Consulting Engineers (AKM) designed the temporary relocation design and study for this project and are very familiar with this area, staff requested a proposal for design and preparation of a bid package, including construction support services.

AKM provided a proposal in the amount of $98,412 for this work. Staff reviewed their proposal and the City Manager approved a Professional Services Agreement. Due to the emergency caused by the landslide and the need to improve drainage in a timely manner, staff recommends ratifying the Professional Consultant Services Agreement with AKM (Attachment 8). The City Manager has the authority to approve emergency 7-19-22 I 4L-2
28 Agenda Report
Recommended

contracts and purchases when there is a need to protect public health and safety per Section 3.40.070 of the City of San Clemente Municipal Code.

Action: STAFF RECOMMENDS THAT the City Council:

1. Make a finding that an emergency continues to exist due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public services, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process;

2. Approve a supplemental appropriation in the amount of $357,225 to Account Number 054-476-45300-000-1 2209 from the Sewer Fund Depreciation Reserve;

3. Ratify a Change Order with O'Connell Engineering and Construction, Inc. on a time and materials basis for $255,000 for Cyprus Shore Emergency Pump Station Bypass Operation, Project No. 12209;

4. Approve a supplemental appropriation in the amount of $98,412 from the Storm Drain Fund Depreciation Reserve to account 059-553-45300-000-12004; and

5. Ratify a Professional Services Agreement with AKM Consulting Engineers for design services for Cyprus Shore Storm Drain Emergency Relocation, Project No. 12004 for an amount not to exceed $98,412.

Attachments: 1. Location Map

2. Proposed design for new Storm Drain, Project No.12004.

3. October 19, 2021 City Council Agenda Report without attachments.

4. December 7, 2021 City Council Agenda Report without attachments .

5. February 15, 2022 City Council Agenda Report without attachments.

6. April 5, 2022 City Council Agenda Report without attachments.

7. O'Connell Engineering and Construction Contract Change Order No. 04.

8. AKM Consulting Engineers Professional Services Agreement.

Notification: None.
7-19-22 I 4L-3
Attachment 9
29 Meeting Date: 9/20/2022
Department: Utilities

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Prepared By: David Rebensdorf, Utilities Director
Subject:
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Agenda Item: 4G

RATIFICATION OF EMERGENCY PURCHASES AND SUPPLEMENTAL FUNDING FOR CYPRUS SHORE PUMP STATION EMERGENCY OPERATION, PROJECT NO. 12209.

Fiscal Impact:

Yes, $1 ,152,625 has been budgeted for the initial 300 days of emergency bypass pump station operation. An additional 181 days of operation is recommended, with funding from a supplemental appropriation in the amount of $714,450 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209. There is sufficient fund balance within the proposed fund for the recommended supplemental appropriation.

Summary:

Coastal bluff movement at Cyprus Shore necessitated an emergency response to ensure uninterrupted wastewater and storm drainage. On September 20, 2021, City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse, near the intersection of Calle Ariana and Avenue de las Palmeras.

To protect public health and safety, the City Council ratified the emergency Professional Services Agreement and construction contracts, approved by the City Manager, with AKM Consulting Engineers and O'Connell Engineering and Construction, Inc. (O'Connell). The City Council further approved an initial appropriation of funding for expenditures, including construction management/inspection services for Dudek Engineering and material purchases and rentals at its October 19, 2021 City Council Meeting. With the need for continued operation of the pump station with pump watch while a more permanent facility is designed and constructed, additional operational funding was approved on December 7 , 2021, February 15, 2022, June 21 , 2022 and July 19, 2022.

To allow for procurement of materials and construction of a temporary pump station , an additional 181 days is needed for emergency wastewater pumping operation.

Background:

Additional funding for pump watch and equipment and materials is needed to continue sewer service to approximately 400 homes within the Cyprus community while construction is completed of a temporary pump station with electric power and monitoring capabilities. Staff is anticipating 181 additional days to allow the contractor to procure material and start construction. Unfortunately, the project has been delayed due to supply chain issues and negotiations with the Cyprus Shore Homeowners Association regarding the location of the pump station and electrical equipment. Staff continues to explore opportunities to minimize pump watch , which can only occur once electric power and a new wet well are constructed in December/January depending upon the availability of equipment.

CITY OF SAN CLEMENTE Page 1 of 3 Printed on 9/15/2022
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30 Meeting Date: 9/20/2022 Agenda Item: 4G
Staff is recommending the City Council ratify the Interim City Manager's approval of a contract change order with O'Connell Engineering and Construction for as needed pump watch based on the estimated costs for rental and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary pump station as shown below.

Emergency Wastewater Operation Cost Estimate
Pump, Piping and Fittings
Subtotal
K-Rail
Generator
Diesel Fuel
Pump Watch (O'Connell)
Contingency 10%
Total (Assumes six months of operation)
Plan and Policy Consistency:
$ 8,200/month
1,075/month
11,000/month
3,800/month
85,000/month
10,000/month
119,075/month
$714,450
The approval is consistent with the following General Plan Goals and Policies:
• Goal: Maintain and improve a comprehensive system of potable water supply, storage and distribution, and wastewater treatment, reclamation , and reuse to meet daily and emergency needs in San Clemente.
• Policy: PSFU-5.1 0. Wastewater System. We provide and maintain a system of wastewater collection and treatment facilities to adequately convey and treat wastewater generated in the City of San Clemente seNice area.

Council Strategy:

The approval is consistent with Council Strategy 3 - Update and maintain infrastructure that reflects best available technology and seNice - in that Utilities is providing uninterrupted sewer and storm drainage service to approximately 400 homes within the Cyprus Shore community with temporary solutions while more permanent facilities are designed and constructed .

Recommended Actions:

Staff Recommendation
Staff Recommends That the City Council:

1. Make a finding that an emergency continues to exist due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public seNices, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process;
CITY OF SAN CLEMENTE Page 2 of 3 Printed on 9/15/2022
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31 Meeting Date: 9/20/2022 Agenda Item: 4G

2. Declare that the public interest and necessity demand the immediate expenditure of public funds to safeguard public health.

3. Approve a supplemental appropriation in the amount of $714,450 to Account Number 054-476-45300-000-12209 from the Sewer Fund Depreciation Reserve; and

4. Ratify Change Order No. 05 with O'Connell Engineering and Construction , Inc. on a time and materials basis for $510,000 for Cyprus Shore Emergency Pump Station Bypass Operation, Project No. 12209.

Attachments:

1. Location Map

2. October 19, 2021 City Council Agenda Report without attachments.

3. December 7, 2021 City Council Agenda Report without attachments.

4. February 15, 2022 City Council Agenda Report without attachments.

5. June 21 , 2022 City Council Agenda Report without attachments.

6. July 19, 2022 City Council Agenda Report without attachments.

7. O'Connell Engineering and Construction Contract Change Order No. 05.

Notification:

None.

CITY OF SAN CLEMENTE Page 3of3 Printed on 9/15/2022
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32 Meeting Date: 2/7/2023
Department: Utilities

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Prepared By David Rebensdorf, Utilities Director
Subject:
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Agenda Item: 6J

RATIFICATION OF EMERGENCY PURCHASES AND SUPPLEMENTAL FUNDING FOR CYPRUS SHORE PUMP STATION EMERGENCY OPERATION, PROJECT NO. 12209.

Fiscal Impact:

Funding of $1,867,075 has been budgeted since September 2021 for emergency bypass pump station operation. An additional 180 days of operation is recommended, with funding from a supplemental appropriation in the amount of $714,450 from the Sewer Fund Depreciation Reserve to Account No. 054-476-45300-000-12209. There is sufficient fund balance within the proposed fund for the recommended supplemental appropriation.

Summary:

Coastal bluff movement at Cyprus Shore required an emergency response to ensure uninterrupted wastewater and storm drainage. On September 20, 2021 , City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras. On October 19, 2021, the City Council ratified an emergency Professional Services Agreement and construction contracts that had been conditionally approved by the City Manager with AKM Consulting Engineers and O'Connell Engineering and Construction, Inc. (O'Connell) and an initial appropriation of funding for expenditures, including construction management/inspection services for Dudek Engineering, material purchases and rentals.

Subsequent to the initial movement, continued operation of the pump station has been necessary due to lack of direct power from SDG&E and use of existing manholes with limited storage for pumping operation while a more permanent facility was designed and constructed. Due to movement in the larger landslide extending to Calle Ariana, the construction of the relocated pump station has been placed on hold while the Orange County Transportation Authority installs two rows of tie-backs within the coastal bluff. The construction is anticipated for completion in March 2023. Once construction is complete, geologists will read inclinometers to determine if the slope has stabilized.

Once the stability is determined, the City can begin either relocating the pump station or utilize the existing pump station subject to approval for remedial grading by the California Coastal Commission (CCC). City staff has begun discussions with the CCC and anticipates submittal of an application to restore operation to the existing pump station.

Background:

To continue sewer service to approximately 400 homes within the Cyprus community while construction is either completed for a temporary pump station or restoration of the existing pump station, additional funding for pump watch, equipment and materials is needed. Staff is anticipating a minimum of 180 additional days to allow for determination of the slope stability and either CITY OF SAN CLEMENTE Page 1 of 3 Printed on 2/1 /2023
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33 Meeting Date: 2/7/2023 Agenda Item: 6J
construction of a new pump station or restoration of the existing facility. Construction of the relocated pump station has been delayed due to supply chain issues and negotiations with the Cyprus Shore Homeowners Association regarding the location of the pump station and electrical equipment.

Staff is recommending the City Council authorize the Interim City Manager's approval of a contract change order with O'Connell Engineering and Construction for as needed pump watch based on the estimated costs for rental and purchase of materials, such as, electrical equipment, piping, pumps, emergency generator and fuel to operate the temporary pump station as shown below.

Emergency Wastewater Operation Cost Estimate
Pump, Piping and Fittings
K-Rail
Generator
Diesel Fuel
Pump Watch (O'Connell)
Contingency 10%
Subtotal
Total (Assumes six months of operation)
Recommended Actions:

Staff Recommendation
Staff Recommends That the City Council:
$ 8,200/month
1,075/month
11 ,000/month
3,800/month
85,000/month
10,000/month
119,075/month
$714,450

1. Make a finding that an emergency continues to exist due to the potential failure of an existing sewer pump station and storm drain system and that the situation requires immediate action to prevent or mitigate impairment to property and public services, that might otherwise occur if required to incur delays attributed to the typical engineering design and public competitive bidding process;

2. Declare that the public interest and necessity for continued service demand the immediate expenditure of public funds to safeguard public health.

3. Approve a supplemental appropriation in the amount of $714,450 to Account Number 054-476 -45300-000-12209 from the Sewer Fund Depreciation Reserve.

4. Authorize the Interim City Manager to approve Change Order No. 06 with O'Connell Engineering and Construction, Inc. on a time and materials basis for $510,000 for Cyprus Shore CITY OF SAN CLEMENTE Page 2 of 3 Printed on 2/1/2023
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34 Meeting Date: 2/7/2023
Emergency Pump Station Bypass Operation, Project No. 12209.

Attachment:
1 . Location Map

2. October 19, 2021 City Council Agenda Report without attachments.

3. December 7, 2021 City Council Agenda Report without attachments.

4. February 15, 2022 City Council Agenda Report without attachments.

5. June 21 , 2022 City Council Agenda Report without attachments.

6. July 19, 2022 City Council Agenda Report without attachments.

7. September 20, 2022 City Council Agenda Report without Attachments .

8. O'Connell Engineering and Construction Contract Change Order No. 06.

Notification:

None.

CITY OF SAN CLEMENTE Page 3 of 3
Agenda Item: 6J
Printed on 2/1/2023
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AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 7/18/2023 Agenda Item: 7A
Department: City Clerk
Prepared By Laura Campagnolo, City Clerk
-
Subject:

BY-DISTRICT ELECTIONS - CONTINUATION OF PUBLIC HEARING
Summary:

On June 15, 2023, City Councilmembers received a letter from the Law Offices of Michelle R.

Jackson alleging that the City’s at-large election process violates the California Voting Rights Act of 2001 (“CVRA”). Staff published a notice of public hearing for July 18, 2023, in the event that the City Council decided to start the districting process in response to the letter.

Subsequent to receiving the letter, the Law Offices of Michelle R. Jackson hand delivered a letter to the City Clerk (provided as Attachment 1 to the Administrative Report) on July 10, 2023, withdrawing the June 15, 2023, letter. In short, the new letter extends the date by which the City Council must decide whether or not to pursue district elections. This delay will allow staff to gather additional information and provide the City Council with a more complete list of options for consideration.

Given these events, Staff recommends continuing the Public Hearing to the meeting of August 15, 2023.

Council Options:
· Continue the Public Hearing to the Regular City Council meeting of August 15, 2023. · Take no action.
· Request additional information from Staff.

Fiscal Impact:
$200 to readvertise the Public Hearing for August 15, 2023.

Environmental Review/Analysis:

This is not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation
Staff recommends the City Council continue the Public Hearing to the Regular City Council meeting of August 15, 2023 and direct the City Clerk to re-advertise the Public Hearing.

CITY OF SAN CLEMENTE Page 1 of 2 Printed on 7/13/2023
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Meeting Date: 7/18/2023 Agenda Item: 7A
Attachment:

1. Letter from the Law Offices of Michelle R. Jackson dated July 10, 2023

2. California Elections Code section 10010
Notification:

Public Hearing Notice advertised in the San Clemente Times on August 3, 2023.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 7/13/2023
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ATTACHMENT 1
3 VIA HAND DELIVERY
July 10, 2023
Attn: Laura Campagnolo
City Clerk
City of San Clemente
San Clemente City Hall
910 Calle Negocio
San Clemente, CA 92673
Re: Violations of the California Voting Rights Act
Dear Ms. Campagnolo,
.t~ ()~ o!,?ltiddte ~- ~
34189 PCH, Suite 204
Dana Point, CA 92629
(949)606-2674
City of San cremanta
JUL 102023
City Clerk Department
On June 8, 2023, this office sent a letter to the City of San Clemente on behalf of one of its clients (see attached). It has been brought to our attention that the letter was incorrectly addressed to the San Clemente City Council rather than the San Clemente City Clerk per the California Elections Code§ 10010(e)l. Given the error made by this office as well as the importance that this office and our client places on ensuring that residents in the City of San Clemente ("San Clemente" or the "City") are not disenfranchised, we are withdrawing the demand letter sent on June 8, 2023, and resending this letter of demand for clarification, which will also extend the date by which the City has to respond to my client's demand.

Again, I write on behalf of my client, a minority resident of, and voter in the City of San . Clemente ("San Clemente" or the "City") concerned about other minority citizens residing and voting in the City.

San Clemente relies upon an at-large election system for electing candidates to its City Council.

Moreover, a review of San Clemente's voting results appears to illustrate that they are racially polarized, resulting in minority vote dilution. Therefore, San Clemente's at-large elections violate the California Voting Rights Act of 2001 ("CVRA").

The CVRA disfavors the use of "at-large" voting since this method effectively prevents a protected class from having a sufficient opportunity to elect a candidate of choice. See generally Sanchez v Modesto (2006) 145 Cal App 4th 660, 667. Further, these at-large election systems often result in the dilution or impairment of minority voters and their ability to elect candidates more representative of their neighborhoods by allowing a bare majority of voters to control every seat, not just a proportional majority of seats. See Thornburg v Gingles (1986) 478 U.S. 30, 46.
4 To find a violation, the CVRA only requires that there be a showing of racially polarized voting. See Cal. Elec. Code § 14028 (" A violation of Section 14027 is established if it is shown that racially polarized voting occurs .. . "). It is my client's position that San Clemente's system of at-large elections dilutes the ability of Latinos, a protected class, to elect candidates of their choice or otherwise influence the outcome of San Clemente's elections for its City Council Members.

During the last twenty (20) years, only one Latino has been elected to the San Clemente City Council. There has been only one Latino candidate in the past 20 years despite Latinos currently comprising the second largest race and ethnicity population in San Clemente with more than 18% of the population identifying as Latino. This lack of Latino participation in seeking election to the city council is prima facia evidence of voter dilution on the part of the City. See generally Westwego Citizens for Better Government v City of Westwego 872 F2d 1201 (5th Cir. 1989). There is a clear disconnect between the significant Latino population in San Clemente and the complete absence of Latinos on the City Council further evidencing the inherent discrimination of the elections process in San Clemente.

In accordance with the above, it is respectfully requested that San Clemente change the manner in which it elects councilmembers to its city council and adopt a district system. Please be advised that if we do not have some movement with regard to this issue by August 24, 2023, we will be forced to seek judicial relief on behalf of residents within the jurisdiction.

Attachment
CC: City Council
City Manager
Sincerely,
S\~\_QJ_w0 - \
Michelle R. Jackson, Esq.
2 5
\

VIA CERTIFIED MAIL
June 8, 2023
Attn: City Council
City of San Clemente
San Clemente City Hall
910 Calle N egocio
San Clemente, CA 92780
faw Offices of /lll.ichelle R.. Jackson
34189 PCH, Suite 204
Dana Point, CA 92629
(949)606-2674
Re: Violations of the California Voting Rights Act
Dear City Council,
I write on behalf ofmy client who is concerned about minority citizens residing and voting in the City of San Clemente ("San Clemente").

San Clemente relies upon an at-large election system for electing candidates to its City Council.

Moreover, a review of San Clemente's voting results appears to illustrate that they are racially polarized, resulting in minority vote dilution. Therefore, San Clemente's at-large elections violate the California Voting Rights Act of 2001 ("CVRA").

The CVRA disfavors the use of "at-large" voting since this method effectively prevents a protected class from having a sufficient opportunity to elect a candidate of choice. See generally Sanchez v Modesto (2006) 145 Cal App 4th 660, 667. Further, these at-large election systems often result in the dilution or impairment of minority voters and their ability to elect candidates more representative of their neighborhoods by allowing a bare majority of voters to control every seat, not just a proportional majority of seats. See Thornburg v Gingles (1986) 478 U.S. 30, 46.

To find a violation, the CVRA only requires that there be a showing of racially polarized voting.

See Cal. Blee. Code§ 14028 ("A violation of Section 14027 is established if it is shown that racially polarized voting occurs ... "). It is my client's position that San Clemente' system of at-large elections dilutes the ability of Latinos, a protected class, to elect candidates of their choice or otherwise influence the outcome of San Clemente's elections for its City Council Members.

During the last twenty (20) years, only one Latino has been elected to the San Clemente City Council. There has been only one Latino candidate in the past 20 years despite Latinos currently comprising the second largest race and ethnicity population in San Clemente with more than 18% of the population identifying as Latino. This lack of Latino participation in seeking 1 6
election to the city council is prima facia evidence of voter dilution on the part of the City. See generally Westwego Citizens for Better Government v City a/Westwego 872 F2d 1201 (5th Cir. 1989). There is a clear disconnect between the significant Latino population in San Clemente and the complete absence of Latinos on the City Council further evidencing the inherent discrimination of the elections process in San Clemente.

In accordance with the above, it is respectfully-requested that San Clemente change the manner in which it elects councilmembers to its city council and adopt a district system. Please be advised that if we do not have some movement with regard to this issue by August 10, 2023, we will be forced to seek judicial relief on behalf of residents within the jurisdiction. 2 i /
\J
7 VIA HAND DELIVERY
July 10, 2023
Article Addressed to:

Attn: Laura Campagnolo
City Clerk
City of San Clemente
San Clemente City Hall
910 Calle Negocio
San Clemente, CA 92673
City of San Clemente
JUL 10 2023
City Clerk Department
34189 PCH, Suite 204
Dana Point, CA 92629
(949)606-2674
Received by (printed name)
ATTACHMENT 2
8 ,,~,,
a
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\TATE Of CALI FUR~I \

AUTHENTICATED ELECTRONIC LEGAL MATERIAL
State of California

ELECTIONS CODE
Section 10010
10010. (a) A political subdivision that changes from an at-large method of election to a district-based election, or that establishes district-based elections, shall do all of the following before a public hearing at which the governing body of the political subdivision votes to approve or defeat an ordinance establishing district-based elections:
( 1) Before drawing a draft map or maps of the proposed boundaries of the districts, the political subdivision shall hold at least two public hearings over a period of no more than 30 days, at which the public is invited to provide input regarding the composition of the districts. Before these hearings, the political subdivision may conduct outreach to the public, including to non-English-speaking communities, to explain the districting process and to encourage public participation. (2) After all draft maps are drawn, the political subdivision shall publish and make available for release at least one draft map and, if members of the governing body of the political subdivision will be elected in their districts at different times to provide for staggered terms of office, the potential sequence of the elections. The political subdivision shall also hold at least two additional hearings over a period of no more than 45 days, at which the public is invited to provide input regarding the content of the draft map or maps and the proposed sequence of elections, if applicable. The first version of a draft map shall be published at least seven days before consideration at a hearing. If a draft map is revised at or following a hearing, it shall be published and made available to the public for at least seven days before being adopted. (b) In determining the final sequence of the district elections conducted in a political subdivision in which members of the governing body will be elected at different times to provide for staggered te1ms of office, the governing body shall give special consideration to the purposes of the California Voting Rights Act of 2001, and it shall take into account the preferences expressed by members of the districts. ( c) This section applies to, but is not limited to, a proposal that is required due to a court-imposed change from an at-large method of election to a district-based election. (d) For purposes of this section, the following terms have the following meanings:
(1) "At-large method of election" has the same meaning as set forth in subdivision (a) of Section 14026.
(2) "District-based election" has the same meaning as set forth in subdivision (b) of Section 14026.
(3) "Political subdivision" has the same meaning as set forth in subdivision ( c) of Section 14026.
9 (e) (1) Before commencing an action to enforce Sections 14027 and 14028, a prospective plaintiff shall send by ce1iified mail a written notice to the clerk of the political subdivision against which the action would be brought asse1iing that the political subdivision's method of conducting elections may violate the California Voting Rights Act of 2001.
(2) A prospective plaintiff shall not commence an action to enforce Sections 14027 and 14028 within 45 days of the political subdivision's receipt of the written notice described in paragraph (1 ).
(3) (A) Before receiving a written notice described in paragraph (1 ), or within 45 days of receipt of a notice, a political subdivision may pass a resolution outlining its intention to transition from at-large to district-based elections, specific steps it will undertake to facilitate this transition, and an estimated timeframe for doing so. (B) If a political subdivision passes a resolution pursuant to subparagraph (A), a prospective plaintiff shall not commence an action to enforce Sections 14027 and 14028 within 90 days of the resolution's passage.
(C) (i) A political subdivision and the prospective plaintiff who first sends a notice pursuant to paragraph (1) may enter into a written agreement to extend the time period described in subparagraph (B) for up to an additional 90 days in order to provide additional time to conduct public outreach, encourage public participation, and receive public input. The written agreement shall include a requirement that the district boundaries be established no later than six months before the political subdivision's next regular election to select governing board members. However, in a political subdivision that holds a primary election as paii of its process for selecting governing board members, the written agreement shall include a requirement that district boundaries be established no later than six months before the political subdivision's next regular primary election.
(ii) No later than 10 days after a political subdivision enters into a wiitten agreement pursuant to clause (i), the political subdivision shall prepare and make available on its internet website a tentative schedule of the public outreach events and the public hearings held pursuant to this section. If a political subdivision does not maintain an internet website, the political subdivision shall make the tentative schedule available to the public upon request.
(f) (1) If a political subdivision adopts an ordinance establishing district-based elections pursuant to subdivision (a), a prospective plaintiff who sent a written notice pursuant to paragraph (1) of subdivision (e) before the political subdivision passed its resolution of intention may, within 30 days of the ordinance's adoption, demand reimbursement for the cost of the work product generated to support the notice. A prospective plaintiff shall make the demand in writing and shall substantiate the demand with financial documentation, such as a detailed invoice for demography services. A political subdivision may request additional documentation if the provided documentation is insufficient to corroborate the claimed costs. A political subdivision shall reimburse a prospective plaintiff for reasonable costs claimed, or in an amount to which the parties mutually agree, within 45 days of receiving the written demand, 10 except as provided in paragraph (2). In all cases, the amount of the reimbursement shall not exceed the cap described in paragraph (3).
(2) If more than one prospective plaintiff is entitled to reimbursement, the political subdivision shall reimburse the prospective plaintiffs in the order in which they sent a written notice pursuant to paragraph (1) of subdivision (e), and the 45-day time period described in paragraph (I) shall apply only to reimbursement of the first prospective plaintiff who sent a written notice. The cumulative amount of reimbursements to all prospective plaintiffs shall not exceed the cap described in paragraph (3).
(3) The amount of reimbursement required by this section is capped at thirty thousand dollars ($30,000), as adjusted annually to the Consumer Price Index for All Urban Consumers, United States city average, as published by the United States Department of Labor.
(Amended by Stats. 2019, Ch. 497, Sec. 105. (AB 991) Effective January 1, 2020.)

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 7/18/2023 Agenda Item: 7B
Department: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:

CONSIDERATION OF A RESOLUTION ADOPTING AN UPDATED RECREATION FEE SCHEDULE AND A RESOLUTION REPEALING AND REPLACING POLICY AND PROCEDURE 702-5

RECREATION SPORTS PARTNERSHIPS
Summary:

The youth sports partnership policy provides direction on discounted rates to qualified non-profit sport groups and supports the facilitation of the field allocation process. The existing partnership process document was approved by City Council in 2015 (Attachment 5), however the updates were not incorporated into the adopted Policy and Procedure Manual, resulting in inconsistencies in the application of the policy (Attachment 4). Due to the significant changes to both the structure and the content of the existing policy, as outlined in the background section of this report, staff and the Beaches, Parks and Recreation Commission recommend the City Council repeal and replace in full Policy and Procedure 702-5 entitled “Recreation Sports Partnership”. The purpose of the policy is to provide a framework and guidelines for the implementation and administration of youth field sports partnerships. A corresponding update to the City’s fee schedule would also need to be adopted. (Attachment 2.)
Background:

At its meeting on December 13, 2022, the Beaches, Parks & Recreation Commission reviewed several applications for youth sports partnership. After discussion and recommendations, the Commission approved the establishment of a youth sports subcommittee (“Subcommittee”) to review and make recommendations for revisions to the existing youth sports partnership policy (Attachment 3).

Under this direction, the Subcommittee and staff met and reviewed policies from similar agencies across Southern California while taking into consideration the specific needs and sports structure within San Clemente. The Subcommittee sought to ensure a stronger policy that allowed for groups to be successful regardless of partnership level.

At its April 11, 2023 meeting, the Beaches, Parks and Recreation Commission reviewed and recommended approval (7-0) of the proposed policy updates presented by staff on behalf of the Subcommittee. The proposed policy is included in Attachment 3.

Significant changes to the policy include, but are not limited to:
· Retitling the policy to specify field sports.
· Restructure the partnership levels to include a fourth level. The proposed policy renames the levels to Tier I, Tier II, Tier III, and Tier IV and adjusts field rental discounts. A synopsis of the CITY OF SAN CLEMENTE Page 1 of 3 Printed on 7/13/2023
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Meeting Date: 7/18/2023 Agenda Item: 7B
levels to Tier I, Tier II, Tier III, and Tier IV and adjusts field rental discounts. A synopsis of the tiers and corresponding discounts are summarized in Table 1 below. · Establishment of a player fee ($5/season) to support the ongoing field maintenance needs and offset costs.
· Determination of timelines for applications and allocation periods. · Definitions of volunteer-based organization versus paid coaches/trainers. · The requirement to have a scholarship program that provides aid to at-need San Clemente families to cover the costs of registration fees.

Table 1 - Partnership levels, current policy vs. proposed policy Level Title (%) Residency Discount Level Title (%) Residency Discount Platinum 90% 90% Tier I 90% 90%
Gold 80% 70% Tier II 85% 85%
Silver 70% 55% Tier III 80% 80%
-- -- -- Tier IV 70% 55%
Current Policy Proposed Policy
If Council approves the modification in partnership tiers and discounts, Resolution No. 23-72 (Attachment 2) would modify the existing fee schedule for Beaches, Parks & Recreation to reflect the discounted rates above. The proposed fees do not exceed the cost of service. Note, this action would not update any rentals fees; however, in FY 2023-24, the BP&R Department will be undertaking a fee and cost of services study to review rates. A report will return to Council in early 2024.

Council Options:
· Conduct the public hearing; adopt Resolution 23-71 repealing and replacing Policy and Procedure 702-5; and adopt Resolution 23-72 updating the recreation fee schedule. · Conduct the public hearing and adopt Resolution 23-71 and Resolution 23-72 with modifications.
· Continue the Item with direction given to staff.
· Conduct the public hearing and do not adopt the Resolutions.

Fiscal Impact:

Because discounts are being provided on fees that do not exceed the cost of service, there would be unknown fiscal impacts at this time. The City currently has three partner organizations who meet the Tier I (Platinum) requirements and the City Council has made an exception for another that did not meet the residency requirement of 90% at the time of partnership award. This organization would CITY OF SAN CLEMENTE Page 2 of 3 Printed on 7/13/2023
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Meeting Date: 7/18/2023 Agenda Item: 7B
have met the requirement for Tier II.

Environmental Review/Analysis:

This is not a “project” under Section 15378 of the State CEQA Guidelines and not subject to CEQA per Section 15061(b)(3).

Recommended Actions:

Staff Recommendation
Staff and the Beaches, Parks and Recreation Commission recommend that the City Council:

1. Conduct the public hearing.

2. Adopt Resolution No. 23-71, which would repeal and replace Policy and Procedure 702-5 Youth Field Sports Recreation Partnership; and

3. Adopt Resolution No. 23-72, which would amend the recreation fee schedule and repeal Resolution No. 16-23.

Attachment:

1. Resolution 23-71, Youth Sports Policy

2. Resolution 23-72, Amended Fee Schedule

3. Proposed Policy and Procedure 702-5 “Youth Field Sports Recreation Partnerships”

4. Existing Policy and Procedure 702-5, Effective 12-20-2011

5. Recreation Partnership Policy, Approved June 16, 2015 Notification:

AYSO, Region 111
Elite Soccer League
San Clemente Girls Softball
San Clemente Little League
South Coast Youth Football
Published in the San Clemente Times July 6 and July 13, 2023 CITY OF SAN CLEMENTE Page 3 of 3 Printed on 7/13/2023
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ATTACHMENT 1
RESOLUTION NO. 23-71

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, REPEALING POLICY AND
PROCEDURE 702-5 RECREATION SPORTS

PARTNERSHIPS AND ADOPTING A NEW POLICY AND
PROCEDURE 702-5 YOUTH FIELD SPORTS RECREATION

PARTNERSHIPS
WHEREAS, it is appropriate to update the policies and procedures implemented by the City Council from time to time; and
WHEREAS, the City desires to provide accessible and diverse youth sports programming for the citizens of San Clemente; and
WHEREAS, the City Council has determined this can be accomplished through partnering with local not-for-profit sports organizations by providing discounted rates to qualified groups and aid in the facilitation of the field allocation process; and WHEREAS, the City Council has determined a policy is necessary to provide a framework and guidelines for the implementation and administration of youth field sports partnerships; and
WHEREAS, these changes require an amendment to an existing resolution.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:

Section 1. The above recitals are true and accurate and considered findings by the City Council and incorporated into the body of this Resolution.

Section 2. City Council Policy and Procedure 702-5, with an effective date of December 20, 2011, is repealed in its entirety and replaced with City Council Policy and Procedure 702-5 as set forth in Exhibit “A” attached hereto and made a part hereof as though fully set forth herein.

Section 3. Any other Resolutions or actions in conflict herewith are hereby rescinded and repealed to the extent of such conflict.

Section 4. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions and replace City Council Policy and Procedure 702-5 with the language adopted by this Resolution.

PASSED AND ADOPTED this _____ day of ____________________, 2023.

ATTEST:
4 Resolution No. 23-71 Page 2
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-71 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
5 Resolution No. 23-71 Page 3
Exhibit “A”

1.0 PURPOSE:

1.1 It is the purpose of this Policy to set forth and make clear the requirements and criteria for recreational sports partnerships between the City and any organization/association (hereinafter “Applicant”) intending to provide recreation-based athletic opportunities to the youth of San Clemente and request fee reductions for the use of City fields.

2.0 ORGANIZATION AFFECTED:

Beaches, Parks & Recreation Department

3.0 REFERENCES:

3.1 San Clemente Municipal Code: Section 12.28.010 Use of Designated City-Owned Facilities

4.0 POLICY:

4.1 The City desires to encourage and promote youth sports on a year-round basis within the city limits, and to make the best and most efficient use of the City’s amenities, fields, and facilities. Partnering with select outside organizations/associations for recreation programs allows service to a larger portion of the community than only City-provided programs. The benefit of the sports partnership is to:

4.1.1 Provide reduced rental rates;

4.1.2 Provide field allocation priorities; and limited support services, which may include site preparation and maintenance, and periodic field improvements as needed;

4.2 The objective of this policy is to create clear written allocation procedures, policies, and guidelines that:

4.2.1 Fairly distribute available fields

4.2.2 Maximize playing time

4.2.3 Incorporate “turf recovery periods” to maintain high-quality, safe fields

4.2.4 Outline field/park use regulations

4.2.5 Communicate financial issues and recovery policy

4.3 A partnership agreement made pursuant to this policy shall be known as an “RS Partnership”, will carry the additional designation of Tier I, Tier II, Tier III, or Tier IV, and shall be subject to all the requirements set forth herein and any additions, amendments or revisions hereto. Only a limited number of RS Partnerships will be granted representing standard prevalent sports, as determined by the Beaches, Parks and Recreation Commission, and the City Council.

5.0 PROCEDURE:
6 Resolution No. 23-71 Page 4

5.1 Minimum Requirements and Criteria for RS Partnership

5.1.1 The Applicant must meet the following minimum requirements and criteria for any RS partnership:
a. Be currently registered and active with the State of California as a not-for-profit community organization under Section 501(c)(3) or (c)(4) of the Internal Revenue Code. b. Not be the subject of any pending investigation by any government or administrative agency, whether at the City, County, State, or Federal level, and demonstrated history of adherence to City rules, policies, and allocations.
c. Carry appropriate commercial and liability insurance with limits no less than the amount determined by the City per incident, including appropriate additional insured
endorsements in favor of the City.
d. Demonstrated ability and willingness to contribute player fee per participant per season as outlined in Section 5.3. e. Organization must have an open enrollment policy
regardless of skill level.
f. All coaches and/or team trainers are to be 100%
volunteer-based. See “Trainers” under Section 6.10.
g. Organization must have a minimum play rule of 50% play for all participants with each player given equitable playing time regardless of skill level.
h. Demonstrated scholarships provided for those in financial need. See Section 5.1.4 for additional details.
i. Organization must have current policies concerning nondiscrimination, no alcohol, and no illegal substances.

5.1.2 In addition, the Applicant must qualify for one of the four levels of partnership detailed below:
a. Tier I: The Applicant must have provided the sports
program within the City of San Clemente for at least three years, and currently have at least 300 participants, 90% of whom reside in the City. Games, tournaments, and
practices must be conducted within San Clemente
boundaries.
b. Tier II: The Applicant must have provided the sports program within the City of San Clemente for at least three years, and currently have at least 300 participants, 85% of whom reside in the City. Games, tournaments, and
practices must be conducted within San Clemente
boundaries
c. Tier III: The Applicant must have provided the sports program within the City of San Clemente for at least three 7 Resolution No. 23-71 Page 5
years, and currently have at least 200 participants, 80% of whom reside in the City. Games, tournaments, and
practices must be conducted within San Clemente
boundaries
d. Tier IV: The Applicant must have provided the sports program within the City of San Clemente for at least three years, and currently have at least 100 participants, 70% of whom reside in the City.

5.1.3 Appeals and/or exceptions shall be reviewed at the discretion of the Beaches, Parks & Recreation Director, or his/her designee to the minimum requirements provided for in Section 5.1.2 (a) – (d). Any exceptions shall be reviewed by the Department and forwarded to the Commission and Council for final
recommendation.

5.1.4 Organization Scholarship Program.
a. RS Partnership Organizations shall offer and maintain a scholarship program that provides relief for San Clemente households who demonstrate financial hardship.
b. The Scholarship Program shall provide financial relief towards the league registration fees, for a minimum of 2% of the total number of players per year.
c. Requirements for financial hardship are to be determined at the discretion of the Organization.

5.2 Process for Evaluating Application for Partnership Status

5.2.1 All requests for RS Partnership shall be submitted first to the Beaches, Parks and Recreation Department (hereinafter
“Department”). Applications will be accepted twice per year at a time determined by the City and based on the primary season of each sport as specified below:

RS Partner Application Period Timeline
Cycle #1 (Fall/Winter Sports)
Cycle #1 – Application Period April 1-30
Cycle #1 – Administrative Review May 1-31
Cycle #1 – Commission Review & Approval June (2nd Tues.) Cycle #2 (Spring Sports)
Cycle #2 – Application Period August 1-31
Cycle #2 – Administrative Review September 1-30
Cycle #2 – Commission Review & Approval October (2nd Tues.)

5.2.2 The Applicant shall include in their packet the completed application form and all supporting documentation, including but not limited to:
a. City RS Partnership Application;
b. Proof of current 501(c)(3) or (c)(4) status;
8 Resolution No. 23-71 Page 6
c. Commercial and liability insurance declaration pages; d. Applicant articles, bylaws, and other charter documents; e. Proof sufficient to establish the financial hardship requirement, including the required budget form and two years of tax returns, and profit/loss statements, audited financial
statements, balance statements;
f. Statistical data and rosters of the most recent primary season to support participant population and residency requirement for RS Partnerships. Refer to “Resident” definition in Section 6.0.

5.2.3 Organizations that meet the minimum requirements as stated in this policy shall be forwarded for review to the Beaches, Parks and Recreation Commission (hereinafter “Commission”).

5.2.4 Commission shall review the application packet, the Department staff report, and any additional information provided by the Applicant or others. Commission may consider whether the Applicant has satisfied the minimum requirements outlined in Section 5.1, whether a partnership is warranted in light of the policies and purposes outlined in Section 4, and whether a partnership is in the best interests of the City and its residents.

In making its recommendation to City, Commission may also consider whether Applicant deserves partnership, or a particular level of partnership, notwithstanding the requirements outlined in Section 5.1.2.

5.2.5 If Commission recommends to the City Council disapproval of the request for RS Partnership, or any specified level of partnership, Commission shall briefly include in the Minutes the reasons therefore. City Council shall make the final
determination.

5.3 Field Use Discounts and Fees

5.3.1 All Organizations are responsible to pay for field use fees and field light fees. RS Partner Organizations will be eligible for the following discounts:

Tier I Tier II Tier III Tier IV
Field Rates (Hourly) 90% 85% 80% 55%
Clinics/Tournaments 50% 35% 25% 25%
Light Fees No Discount No Discount No Discount No Discount

5.3.2 RS Partners shall pay a field maintenance fee of $5 per participant, per season based on the previous year’s fall/spring rosters.

5.3.3 Fees are due on the first of each month. Organizations that are in default by more than 15 days will be charged a late payment fee of 10% on all outstanding field reservation fees.

Organizations that are in default for more than 30 days will be charged the field rental rate (without RS Partner discount) applicable for all current charges and the RS Partnership and 9 Resolution No. 23-71 Page 7
applicable discounts will be suspended until the account is paid in full.

5.3.4 All field rental fees will be based on an approved Beaches, Parks & Recreation Department Fee Schedule which is adopted and approved by the City Council. RS Partners will receive
discounted rates based on the approved field rental rate in place at the time of the rental.

5.4 Field Allocation Process

5.4.1 Each Organization shall submit a Field Allocation Request Form and Participant roster from previous season by the dates listed below. Organizations missing these deadlines will be allocated any remaining fields on an “as available” basis only.

Fall Allocation Due June 1
Winter Allocation Due September 15
Spring Allocation Due November 15
Summer Allocation Due March 15

5.4.2 The City allocates and prioritizes field use based on the following criteria:
a. Recreation activities sponsored or conducted by the city of San Clemente.
b. RS Partner Organizations with priority given to
Organizations in Tier I followed by Tier II, Tier III, and Tier IV, respectively.
c. Not-for-profit organizations or individuals which are established as frequent renters.
d. Commercial entities or organizations located in San
Clemente
e. Commercial entities or organizations not located in San Clemente

5.5 Non-Use of Allocated Fields
It is City policy that user Organizations turn in unused fields for reallocation. An Organization that has been allocated field space and does not intend to use it regularly shall notify the City so that the field may be reallocated or otherwise used. Failure to do so may result in the forfeiture of fields for the remainder of the season.

5.5.1 Notice of non-use shall be received by March 1 for spring and September 1 for fall so the field may be reallocated.

5.5.2 Unless written notice is received, an Organization will be billed for all allocations at the regular field rental rate applicable. Field use fees will not be retroactively adjusted.
10 Resolution No. 23-71 Page 8

5.5.3 All fields that are turned back into the City for reasons of nonuse will be reallocated to other interested organizations.

5.5.4 Exceptions to this policy will be made on a case-by-case basis, only with prior written notification to City staff regarding special circumstances.

5.6 Violations of RS Partnership

5.6.1 The City utilizes a “three-strike” policy for violations of the RS Partnership Agreement. The following penalties shall be imposed when RS Partners fail to comply with the requirements set forth above. Offenses will be by season unless otherwise stated in written warnings.
a. First Offense: Verbal warning with written memo notifying of the violation; if the situation is resolved, no further action is taken.
b. Second Offense: Written warning. A representative of the City, as determined by the Director, shall also meet with the offending coach (if applicable), the Organization
President, and at least one other member of the Board of Directors.
c. Third Offense: Minimum penalty is the loss of one field for the next season; maximum penalty is loss of status as a RS Partner for the next season in which the Organization participates. Penalty shall be determined by the Director.

After penalty has been served, Organization may reapply for use of City fields and RS Partner status for their next season.
d. Appeal process: Appeals shall be submitted to the Director within 10 days of penalty. Appeals shall be forwarded to the Parks, Beaches & Recreation Commission for
discussion. The Commission’s decision is final.

5.6.2 Violation examples include, but are not limited to:
a. False documents submitted to the City, including but not limited to the falsification of rosters and proof of residency. b. Use of field that has been closed due to inclement weather or for safety or maintenance reasons.
c. Use of fields prior to or beyond permitted time.
d. Subletting, loaning, or trading fields with other groups or organizations.
e. Failure to return unscheduled fields to the “inventory of fields” held by the City.
f. Driving vehicles on fields without written permission noted on permit.
11 Resolution No. 23-71 Page 9
g. Utilizing areas outside the boundaries of a permitted field.

5.6.3 City reserves the right to cancel or suspend field/facility permits for games, practices, and other usages based upon user groups violating the City Municipal Code or any terms of the Partnership Agreement.

5.6.4 The Beaches, Parks & Recreation Commission ultimately determines continued membership. Failure to comply with the requirements and responsibilities listed will result in the Commission revisiting membership status.

5.7 RS Partnership Expectations and Longevity

5.7.1 All RS Partners shall adhere to all the policies and procedures of City, and cooperate with the Department and City staff to ensure that the purpose of the partnership is met. RS Partners shall provide City representatives with access at all times to review or monitor the sports program. RS Partners shall not discriminate against its employee, volunteers, or participants on account of race, religion, national origin, ethnicity, sexual orientation, or gender (except where gender is a bona fide issue for the program).

5.7.2 Applicant and all participants, parents, spectators, coaches, and volunteers agree to abide by the City Participant Code of Conduct: All persons shall act with respect towards other persons, and respect their privacy and personal safety. Physical or verbal abuse of any kind will not be tolerated. All persons shall treat public and private property and equipment with respect.

Program rules and regulations shall be observed at all times.

The RS Partner maintains responsibility for all of its coaches, volunteers, agents, parents, spectators, and players affiliated with the organization.

5.7.3 The City may, at any time, temporarily suspend or revoke a RS Partnership status and forward to the Commission and/or the City Council for reconsideration of partnership status.

5.7.4 The City Council may, at any time, and without cause, suspend or revoke an Applicant’s RS Partnership status.

5.7.5 Usage must be made within the allotted permit time. Permit time schedules and charges must include set-up time. Permit will be considered canceled and fees forfeited if user is not at the facility 60 minutes after the beginning of the time for which permitted.

5.7.6 The City Council may grant the Department and/or Commission authority to extend RS Partnerships for a period of time up to five years if doing so would be in the best interests of City, its residents, and the Applicant.

6.0 DEFINITIONS:
12 Resolution No. 23-71 Page 10

6.1 “City”: The City of San Clemente and/or the City Beaches, Parks & Recreation Department, as appropriate.

6.2 “Frequent Renter”: An Organization or individual who rents fields from the City more than 4 times per quarter.

6.3 “Non-Profit”: Organizations must meet all criteria as identified by the Internal Revenue Service (IRS). The organization must submit a Letter of Determination or Letter of Affirmation from the IRS that indicates nonprofit 501(c)(3) or (c)(4) status. The organization must maintain current non-profit 501(c)(3) or (c)(4) status for the duration of the allocated Field Use Permit.

6.4 “Organization”: Those Organizations that have submitted all required documentation with the City and been awarded partnership status in Tier I to IV.

6.5 “Organized Play”: Two or more persons engaging in a competitive athletic activity, skill development, or training/coaching session such as but not limited to soccer, baseball, softball, or football.

6.6 “Participant”: Individuals who are fully registered with the Member Organization. Non-players such as coaches, officials, and staff shall not be considered Participants.

6.7 “Primary Season”: For the purposes of this policy, the sport in season will have priority for allocations and determine the period eligibility for submission of application(s). Spring season (February – June): Baseball, Softball, Rugby; and Fall season (August – December): Football, Soccer; Winter season (November – March): Lacrosse

6.8 “Recreation League”: A league with the following characteristics: (1) the use of tryouts, invitations, recruiting, or similar process to roster players to a Team is prohibited; (2) the League accepts as participants any eligible youths subject to reasonable terms on registration; and (3) League rules require that each player must play at least one-half (50%) of each match/game except for reasons of injury, illness, or discipline.

6.9 “Resident”: Persons with primary residency within the boundaries of the City of San Clemente. Upon submission of the Application, rosters must include each participant’s name, address, email address, and phone number. For each San Clemente resident, a copy of a current utility bill (trash, water, gas, or electric) no more than three (3) months old must be submitted. Upon request photo identification is required. The City reserves the right to conduct random audits to establish residency.

6.10 “Trainers”: Paid trainers or coaches may be employed for clinics that are open to the entire Organization membership; Trainers may not be used by individual players or teams. An individual participant may hire a trainer for personal purposes provided that the trainer applies for and receives a rental permit through the City.

6.11 “Youth Status”: Persons 19 years of age or under at the start of the season.
13 Attachment 2
RESOLUTION NO. 23-72

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, REVISING THE POLICIES

AND FEES GOVERNING THE RENTAL OF THE SPORT
FIELDS AND AMENDING RESOLUTION NO. 16-23
WHEREAS, the City of San Clemente operates and maintains a number of recreation buildings throughout the City that are open to the general public seven days a week; and WHEREAS, various provisions of State and local law authorize the City to levy fees and charges for services provided by the City in amounts which do not exceed the reasonable cost of providing such services; and
WHEREAS, the fees are designed to offset the cost to maintain and operate these facilities and should be modified on a regular basis to keep pace with the maintenance and operational costs; and
WHEREAS, on July 18, 2023, the City Council held a duly notice public hearing and received and considered staff and public comment on revising the policies and fees governing the rental of the City’s sport fields; and
WHEREAS, following such public hearing, the City Council adopted Resolution No. 23-71 on July 18, 2023, revising the policies and fees governing the youth sports partnership policy and use of city fields, which amended Resolution No. 16-23, which changes have been incorporated into Exhibit “A” to this Resolution; and WHEREAS, these changes require an amendment to an existing resolution; and WHEREAS, the updated fees do not exceed the reasonable cost of providing the services.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:

Section 1. The above recitals are true and accurate and incorporated herein fully as findings.

Section 2. The facility, field and program fees for Recreation are hereby revised as set forth in Exhibit “A” attached hereto and made a part hereof as though fully set forth herein.

Section 3. Any other Resolutions in conflict herewith are hereby rescinded and repealed to the extent of such conflict.

Section 4. Except as set forth in Section 5 of this Resolution, this Resolution shall become operative and immediately.
14 Resolution No. 23-72 Page 2
Section 5. All fees and rental applications received by the Department of Beaches, Parks and Recreation prior to the adoption of this Resolution shall not be affected by this Resolution, and shall therefore be subject to the fees and rental rates in effect prior to the adoption of this Resolution.

Section 6. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this 18th day of July, 2023.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-72 was adopted at a regular meeting of the City Council of the City of San Clemente held on the 18th day of July, 2023, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
15 Resolution No. 23-72 Page 3
Exhibit “A”

FACILITY RENTAL RATES
The following is a list of available discounts.
25% discount for San Clemente residents and businesses. 75% discount for San Clemente based non-profit organizations. 50% discount for non-resident non-profit organizations.

OLE HANSON BEACH CLUB
Facility Capacity Price
Club Room – Downstairs (499 Sq. Ft.) 50 $75 per hour
Grounds N/A $50 per hour
COMMUNITY CENTER - Weekday (Monday through Thursday & Sunday) Facility Capacity Price
Auditorium (4,000 Sq. Ft.) 300-500 $300 per hour
Ole Hanson Fireside Room & Kitchen (1,200 Sq. Ft.) 80 $100 per hour Kitchen (Based on availability) N/A $150 flat rate
Multi-Purpose Room (900 Sq. Ft.) 50 $75 per hour
Lower Multi-Purpose Room (900 Sq. Ft.) (Dance Studio
Purposes Only) 25 $75 per hour
Grounds N/A $50 per hour
Locker (for Non-Profit Only) N/A $5 per month
COMMUNITY CENTER - Primetime (Friday & Saturday)
Facility Capacity Price
Auditorium (4,000 Sq. Ft.) (2 hour minimum rental) 300-500 $350 per hour Kitchen (Based on availability) N/A $150 flat rate
Ole Hanson Fireside Room & Kitchenette (1,200 Sq.

Ft.) 80 $150 per hour
Multi-Purpose Room (900 Sq. Ft.) 50 $100 per hour
Lower Multi-Purpose Room (900 Sq. Ft.) (Dance Studio
Purposes Only) 25 $100 per hour
Grounds N/A $60 per hour

SAN CLEMENTE AQUATICS CENTER
Friends Room 48 $150 per hour

TIERRA GRANDE PARK
Meeting Room 40 $100 per hour
16 Resolution No. 23-72 Page 4

FIELD AND POOL RENTAL RATES
The following is a list of available discounts.
25% discount for San Clemente residents and non-resident non-profit organizations. 40% discount for San Clemente based non-profit organizations. 55% discount for Recreation Sport Tier IV Partners.
80% discount for Recreation Sport Tier III Partners.
85% discount for Recreation Sport Tier II Partners.
90% discount for Recreation Sport Tier I Partners.
60% discount for Aquatics Senior Partners.
50% discount for Aquatics Junior Partners.

POOLS
All pools and deck $500 per hour
Tournaments/Meets/Competition $400 per hour
Per Lane $25 per hour
50 Meter $250 per hour
25 Yard $125 per hour
Play Pool $200 per hour
Cabana $50 per hour
Grass Event Space in Aquatics Center $200 per hour
FIELDS
Neighborhood $40 per hour
Community $50 per hour
Sport $60 per hour
The Meadows $250 per hour
LIGHTS
$15 per hour at all lighted fees, regardless of use category.

TOURNAMENT FEES

STEED PARK TOURNAMENT FEES
Category 1-Resident Youth Sport Organization $200 per day, per field, minimum 2 fields
Category 2-Non-Resident Youth Sport Organization $250 per day, per field, minimum 2 fields
Category 3-Resident Non-profit and Private Resident $250 per day, per field, minimum 2 fields
Category 4-Non-resident Non-profit and Private NonResident $300 per day, per field, minimum 2
fields, $1,000 per day, includes 4 fields

COMMERCIAL/TOURNAMENT/CAMP FEES
Pools and Fields at community and sports parks
(except Steed Park)
Price as listed per hour, no discounts
except for partners.

Recreation Sports Bronze and Silver Partners 25% tournaments 25% camp/clinic
17 Resolution No. 23-72 Page 5
Recreation Sports Gold Partners 50% tournaments
50% camp/clinic
Aquatics Junior Partners
No discount peak, 25% off-peak
meets/tournaments
40% camp/clinic
40% private lessons
Aquatics Senior Partners
No discount peak, 60% off-peak
meets/tournaments
50% camp/clinic
40% private lessons

PICNIC AREA AND OPEN SPACE RENTAL RATES
The following is a list of available discounts.
25% discount for non-residents and non-resident non-profit organizations. 50% discount for San Clemente based non-profit organizations and residents.

PICNIC AREA AND OPEN SPACE FEES
1-49 People $50 per hour
50-99 People $75 per hour
100-199 People $100 per hour
200-299 People $200 per hour
Each additional 100 People $50 per hour

PERMIT AND PROGRAM FEES

PERMIT FEES
Sound Amplification Permit $60
Block Party Permit $100
Banner Hanging Permit (El Camino Real Banners) $367
Special Event Application Fee – Category I $110
Special Event Application Fee – Category II $240
Restroom Cleaning Fee $90
18 Resolution No. 23-72 Page 6

PROGRAM FEES
Refund Processing Fee $8 per class
Daily Pool Use Fee Youth 0-17 and Seniors 60+: Resident $2 Daily Pool Use Fee Youth 0-17 and Seniors 60+: Non-Resident $6 Daily Pool Use Fee Adult 18-59: Resident $4
Daily Pool Use Fee Adult 18-59: Non-Resident $8
Monthly Swim Pass Youth 0-17 and Seniors 60+: Resident $40 Monthly Swim Pass Youth 0-17 and Seniors 60+: Non-Resident $55 Monthly Swim Pass Adult 18-59: Resident $55
Monthly Swim Pass Adult 18-59: Non-Resident $70
3 Month Swim Pass Youth 0-17 and Seniors 60+: Resident $75 3 Month Swim Pass Youth 0-17 and Seniors 60+: Non-Resident $150 3 Month Swim Pass Adult 18-59: Resident $100
3 Month Swim Pass Adult 18-59: Non-Resident $200
Annual Swim Pass Youth 0-17 and Seniors 60+: Resident $150 Annual Swim Pass Youth 0-17 and Seniors 60+: Non-Resident $300 Annual Swim Pass Adult 18-59: Resident $200
Annual Swim Pass Adult 18-59: Non-Resident $400
19 ATTACHMENT 3
4879‐9022‐2175 v1

POLICY AND PROCEDURE

1.0 PURPOSE:

1.1 It is the purpose of this Policy to set forth and make clear the requirements and criteria for recreational sports partnerships between the City and any organization/association (hereinafter “Applicant”) intending to provide recreation-based athletic opportunities to the youth of San Clemente and request fee reductions for the use of City fields.

2.0 ORGANIZATION AFFECTED:

Beaches, Parks & Recreation Department

3.0 REFERENCES:

3.1 San Clemente Municipal Code: Section 12.28.010 Use of Designated City-Owned Facilities

4.0 POLICY:

4.1 The City desires to encourage and promote youth sports on a year-round basis within the city limits, and to make the best and most efficient use of the City’s amenities, fields, and facilities. Partnering with select outside organizations/associations for recreation programs allows service to a larger portion of the community than only City-provided programs. The benefit of the sports partnership is to:

4.1.1 Provide reduced rental rates; and

4.1.2 Provide field allocation priorities; and limited support services, which may include site preparation and maintenance, and periodic field improvements as needed.

4.2 The objective of this policy is to create clear written allocation procedures, policies, and guidelines that:

4.2.1 Fairly distribute available fields;

4.2.2 Maximize playing time;
Subject: Youth Field Sports Recreation
Partnerships
Index: Recreational Facilities &
Programs
Number: 702-5
Effective Date: Prepared By: Beaches, Parks &
Recreation Department
Supersedes:Same Policy: 12-20-2011 Approved By: City Council 20 ATTACHMENT 3
4879‐9022‐2175 v1

4.2.3 Incorporate “turf recovery periods” to maintain high-quality, safe fields;

4.2.4 Outline field/park use regulations; and

4.2.5 Communicate financial issues and recovery policy.

4.3 A partnership agreement made pursuant to this policy shall be known as an “RS Partnership”, will carry the additional designation of Tier I, Tier II, Tier III, or Tier IV, and shall be subject to all the requirements set forth herein and any additions, amendments or revisions hereto. Only a limited number of RS Partnerships will be granted representing standard prevalent sports, as determined by the Beaches, Parks and Recreation Commission, and the City Council.

5.0 PROCEDURE:

5.1 Minimum Requirements and Criteria for RS Partnership.

5.1.1 The Applicant must meet the following minimum requirements and criteria for any RS partnership:
a. Be currently registered and active with the State of California as a not-for-profit community organization under Section 501(c)(3) or (c)(4) of the Internal Revenue Code. b. Not be the subject of any pending investigation by any government or administrative agency, whether at the City, County, State, or Federal level, and demonstrated history of adherence to City rules, policies, and allocations.
c. Carry appropriate commercial and liability insurance with limits no less than the amount determined by the City per incident, including appropriate additional insured
endorsements in favor of the City.
d. Demonstrated ability and willingness to contribute player fee per participant per season as outlined in Section 5.3. e. Organization must have an open enrollment policy
regardless of skill level.
f. All coaches and/or team trainers are to be 100%
volunteer-based. See “Trainers” under Section 6.10.
g. Organization must have a minimum play rule of 50% play for all participants with each player given equitable playing time regardless of skill level.
h. Demonstrated scholarships provided for those in financial need. See Section 5.1.4 for additional details.
i. Organization must have current policies concerning nondiscrimination, no alcohol, and no illegal substances. 21 ATTACHMENT 3
4879‐9022‐2175 v1

5.1.2 In addition, the Applicant must qualify for one of the four levels of partnership detailed below:
a. Tier I: The Applicant must have provided the sports
program within the City of San Clemente for at least three years, and currently have at least 300 participants, 90% of whom reside in the City. Games, tournaments, and
practices must be conducted within San Clemente
boundaries.
b. Tier II: The Applicant must have provided the sports program within the City of San Clemente for at least three years, and currently have at least 300 participants, 85% of whom reside in the City. Games, tournaments, and
practices must be conducted within San Clemente
boundaries
c. Tier III: The Applicant must have provided the sports program within the City of San Clemente for at least three years, and currently have at least 200 participants, 80% of whom reside in the City. Games, tournaments, and
practices must be conducted within San Clemente
boundaries
d. Tier IV: The Applicant must have provided the sports program within the City of San Clemente for at least three years, and currently have at least 100 participants, 70% of whom reside in the City.

5.1.3 Appeals and/or exceptions shall be reviewed at the discretion of the Beaches, Parks & Recreation Director, or his/her designee to the minimum requirements provided for in Section 5.1.2 (a) – (d). Any exceptions shall be reviewed by the Department and forwarded to the Commission and Council for final
recommendation.

5.1.4 Organization Scholarship Program.
a. RS Partnership Organizations shall offer and maintain a scholarship program that provides relief for San Clemente households who demonstrate financial hardship.
b. The Scholarship Program shall provide financial relief towards the league registration fees, for a minimum of 2% of the total number of players per year.
c. Requirements for financial hardship are to be determined at the discretion of the Organization.

5.2 Process for Evaluating Application for Partnership Status

5.2.1 All requests for RS Partnership shall be submitted first to the Beaches, Parks and Recreation Department (hereinafter
22 ATTACHMENT 3
4879‐9022‐2175 v1
“Department”). Applications will be accepted twice per year at a time determined by the City and based on the primary season of each sport as specified below:

RS Partner Application Period Timeline
Cycle #1 (Fall/Winter Sports)
Cycle #1 – Application Period April 1-30
Cycle #1 – Administrative Review May 1-31
Cycle #1 – Commission Review & Approval June (2nd Tues.) Cycle #2 (Spring Sports)
Cycle #2 – Application Period August 1-31
Cycle #2 – Administrative Review September 1-30
Cycle #2 – Commission Review & Approval October (2nd Tues.)

5.2.2 The Applicant shall include in their packet the completed application form and all supporting documentation, including but not limited to:
a. City RS Partnership Application;
b. Proof of current 501(c)(3) or (c)(4) status;
c. Commercial and liability insurance declaration pages; d. Applicant articles, bylaws, and other charter documents; e. Proof sufficient to establish the financial hardship requirement, including the required budget form and two years of tax returns, and profit/loss statements, audited financial
statements, balance statements;
f. Statistical data and rosters of the most recent primary season to support participant population and residency requirement for RS Partnerships. Refer to “Resident” definition in Section 6.0.

5.2.3 Organizations that meet the minimum requirements as stated in this policy shall be forwarded for review to the Beaches, Parks and Recreation Commission (hereinafter “Commission”).

5.2.4 Commission shall review the application packet, the Department staff report, and any additional information provided by the Applicant or others. Commission may consider whether the Applicant has satisfied the minimum requirements outlined in Section 5.1, whether a partnership is warranted in light of the policies and purposes outlined in Section 4, and whether a partnership is in the best interests of the City and its residents.

In making its recommendation to City, Commission may also consider whether Applicant deserves partnership, or a particular level of partnership, notwithstanding the requirements outlined in Section 5.1.2.
23 ATTACHMENT 3
4879‐9022‐2175 v1

5.2.5 If Commission recommends to the City Council disapproval of the request for RS Partnership, or any specified level of partnership, Commission shall briefly include in the Minutes the reasons therefore. City Council shall make the final
determination.

5.3 Field Use Discounts and Fees

5.3.1 All Organizations are responsible to pay for field use fees and field light fees. RS Partner Organizations will be eligible for the following discounts:

Tier I Tier II Tier III Tier IV
Field Rates (Hourly) 90% 85% 80% 70%
Clinics/Tournaments 50% 35% 25% 25%
Light Fees No Discount No Discount No Discount No Discount

5.3.2 RS Partners shall pay a field maintenance fee of $5 per participant, per season based on the previous year’s fall/spring rosters.

5.3.3 Fees are due on the first of each month. Organizations that are in default by more than 15 days will be charged a late payment fee of 10% on all outstanding field reservation fees.

Organizations that are in default for more than 30 days will be charged the field rental rate (without RS Partner discount) applicable for all current charges and the RS Partnership and applicable discounts will be suspended until the account is paid in full.

5.3.4 Notwithstanding anything to the contrary in this Policy, all field rental fees will be based on an approved Beaches, Parks & Recreation Department Fee Schedule which is adopted and approved by the City Council. RS Partners will receive
discounted rates based on the approved field rental rate in place at the time of the rental. This Policy and the discounts provided herein shall not be effective until the Beaches, Parks & Recreation Department Fee Schedule is updated and approved by City Council.

5.4 Field Allocation Process

5.4.1 Each Organization shall submit a Field Allocation Request Form and Participant roster from previous season by the dates listed below. Organizations missing these deadlines will be allocated any remaining fields on an “as available” basis only.

Fall Allocation Due June 1
Winter Allocation Due September 15
Spring Allocation Due November 15
Summer Allocation Due March 15
24 ATTACHMENT 3
4879‐9022‐2175 v1

5.4.2 The City allocates and prioritizes field use based on the following criteria:
a. Recreation activities sponsored or conducted by the City of San Clemente.
b. RS Partner Organizations with priority given to
Organizations in Tier I followed by Tier II, Tier III, and Tier IV, respectively.
c. Not-for-profit organizations or individuals that are established as frequent renters.
d. Commercial entities or organizations located in San
Clemente.
e. Commercial entities or organizations not located in San Clemente.

5.5 Non-Use of Allocated Fields
It is City policy that user Organizations turn in unused fields for reallocation. An Organization that has been allocated field space and does not intend to use it regularly shall notify the City so that the field may be reallocated or otherwise used. Failure to do so may result in the forfeiture of fields for the remainder of the season.

5.5.1 Notice of non-use shall be received by March 1 for spring and September 1 for fall so the field may be reallocated.

5.5.2 Unless written notice is received, an Organization will be billed for all allocations at the regular field rental rate applicable. Field use fees will not be retroactively adjusted.

5.5.3 All fields that are turned back into the City for reasons of nonuse will be reallocated to other interested organizations.

5.5.4 Exceptions to this policy will be made on a case-by-case basis, only with prior written notification to City staff regarding special circumstances.

5.6 Violations of RS Partnership.

5.6.1 The City utilizes a “three-strike” policy for violations of the RS Partnership Agreement. The following penalties shall be imposed when RS Partners fail to comply with the requirements set forth above. Offenses will be by season unless otherwise stated in written warnings.
a. First Offense: Verbal warning with written memo notifying of the violation; if the situation is resolved, no further action is taken.
25 ATTACHMENT 3
4879‐9022‐2175 v1
b. Second Offense: Written warning. A representative of the City, as determined by the Director, shall also meet with the offending coach (if applicable), the Organization
President, and at least one other member of the Board of Directors.
c. Third Offense: Minimum penalty is the loss of one field for the next season; maximum penalty is loss of status as a RS Partner for the next season in which the Organization participates. Penalty shall be determined by the Director.

After penalty has been served, Organization may reapply for use of City fields and RS Partner status for their next season.
d. Appeal process: Appeals shall be submitted to the Director within 10 days of penalty. Appeals shall be forwarded to the Parks, Beaches & Recreation Commission for
discussion. The Commission’s decision is final.

5.6.2 Violation examples include, but are not limited to:
a. False documents submitted to the City, including but not limited to the falsification of rosters and proof of residency. b. Use of field that has been closed due to inclement weather or for safety or maintenance reasons.
c. Use of fields prior to or beyond permitted time.
d. Subletting, loaning, or trading fields with other groups or organizations.
e. Failure to return unscheduled fields to the “inventory of fields” held by the City.
f. Driving vehicles on fields without written permission noted on permit.
g. Utilizing areas outside the boundaries of a permitted field.

5.6.3 City reserves the right to cancel or suspend field/facility permits for games, practices, and other usages based upon user groups violating the City Municipal Code or any terms of the Partnership Agreement.

5.6.4 The Beaches, Parks & Recreation Commission ultimately determines continued membership. Failure to comply with the requirements and responsibilities listed will result in the Commission revisiting membership status.

5.7 RS Partnership Expectations and Longevity

5.7.1 All RS Partners shall adhere to all the policies and procedures of City, and cooperate with the Department and City staff to 26 ATTACHMENT 3
4879‐9022‐2175 v1
ensure that the purpose of the partnership is met. RS Partners shall provide City representatives with access at all times to review or monitor the sports program. RS Partners shall not discriminate against its employee, volunteers, or participants on account of race, religion, national origin, ethnicity, sexual orientation, or gender (except where gender is a bona fide issue for the program).

5.7.2 Applicant and all participants, parents, spectators, coaches, and volunteers agree to abide by the City Participant Code of Conduct: All persons shall act with respect towards other persons, and respect their privacy and personal safety. Physical or verbal abuse of any kind will not be tolerated. All persons shall treat public and private property and equipment with respect.

Program rules and regulations shall be observed at all times.

The RS Partner maintains responsibility for all of its coaches, volunteers, agents, parents, spectators, and players affiliated with the organization.

5.7.3 The City may, at any time, temporarily suspend or revoke a RS Partnership status and forward to the Commission and/or the City Council for reconsideration of partnership status.

5.7.4 The City Council may, at any time, and without cause, suspend or revoke an Applicant’s RS Partnership status.

5.7.5 Usage must be made within the allotted permit time. Permit time schedules and charges must include set-up time. Permit will be considered canceled and fees forfeited if user is not at the facility 60 minutes after the beginning of the time for which permitted.

5.7.6 The City Council may grant the Department and/or Commission authority to extend RS Partnerships for a period of time up to five years if doing so would be in the best interests of City, its residents, and the Applicant.

6.0 DEFINITIONS:

6.1 “City”: The City of San Clemente and/or the City Beaches, Parks & Recreation Department, as appropriate.

6.2 “Frequent Renter”: An Organization or individual who rents fields from the City more than 4 times per quarter.

6.3 “Non-Profit”: Organizations must meet all criteria as identified by the Internal Revenue Service (IRS). The organization must submit a Letter of Determination or Letter of Affirmation from the IRS that indicates nonprofit 501(c)(3) or (c)(4) status. The organization must maintain current non-profit 501(c)(3) or (c)(4) status for the duration of the allocated Field Use Permit.
27 ATTACHMENT 3
4879‐9022‐2175 v1

6.4 “Organization”: Those Organizations that have submitted all required documentation with the City and been awarded partnership status in Tier I to IV.

6.5 “Organized Play”: Two or more persons engaging in a competitive athletic activity, skill development, or training/coaching session such as but not limited to soccer, baseball, softball, or football.

6.6 “Participant”: Individuals who are fully registered with the Member Organization. Non-players such as coaches, officials, and staff shall not be considered Participants.

6.7 “Primary Season”: For the purposes of this policy, the sport in season will have priority for allocations and determine the period eligibility for submission of application(s). Spring season (February – June): Baseball, Softball, Rugby; and Fall season (August – December): Football, Soccer; Winter season (November – March): Lacrosse

6.8 “Recreation League”: A league with the following characteristics: (1) the use of tryouts, invitations, recruiting, or similar process to roster players to a Team is prohibited; (2) the League accepts as participants any eligible youths subject to reasonable terms on registration; and (3) League rules require that each player must play at least one-half (50%) of each match/game except for reasons of injury, illness, or discipline.

6.9 “Resident”: Persons with primary residency within the boundaries of the City of San Clemente. Upon submission of the Application, rosters must include each participant’s name, address, email address, and phone number. For each San Clemente resident, a copy of a current utility bill (trash, water, gas, or electric) no more than three (3) months old must be submitted. Upon request photo identification is required. The City reserves the right to conduct random audits to establish residency.

6.10 “Trainers”: Paid trainers or coaches may be employed for clinics that are open to the entire Organization membership; Trainers may not be used by individual players or teams. An individual participant may hire a trainer for personal purposes provided that the trainer applies for and receives a rental permit through the City.

6.11 “Youth Status”: Persons 19 years of age or under at the start of the season.
28 ATTACHMENT 4
29 POLICY AND PROCEDURE
Subject: . Recreational Sports Index: Recreational Facilities & Partnerships Programs
Number: 702-5
Effective Date: 12-20- 201i Prepared By: · Beaches, Parks and Recreation --
L- ..... '-
New ApprQ.ved ~y: ,&:? J - ~ -
V

1. POLICY AND PURPOSE:

1.1 It is the desire orthe City of San Clemente (hereinafter "City") to encourage and promote the 'llarious se.asonal sports on a year-round basis within the city limits, and to make the, best and most efficient use of Citls ,amenities, fields and facilities. Partneriqg with select outside organizations/associations for sports programs alloVlls service to a larger portion of the community than only City provided programs. City wishes to promote such 'partr:rerships by providing reduced rentaf rate_s, field allocation priorities, and limited support services, which may include site preparation and maintenance, periodic field improvements as needed and limited administrative/clerical support.

1.2 The purpose of this Recreational Sports Partnership Policy is to set forth and make clear the requiteme~ts and criteria for partnerships between City and any organization/c;!ssoc.iation (hereinafter "Applicant")' ihte,ndingto provide recreational sp:orts programs a,nd request fee reductions Within City. A p~rtnership agreement made pursuant to this policy shall be known as an RS Partnership, will carry the additional designation of Senior or Junior, and shall be . subject to all the requirements set forth herein and any additions, amendments or revisions hereto. Only a limited number of RS Partnerships will be granted to the organization representing standard prevalent sports, as determin.ed by the Beaches, Parks and Recreation Commission. ,

2. REFERENCES:

San Clemente Municipal Code Chapter 12.28.010.
30 - MINIMUM REQUIREMENTS AND CRITERIA TO QUALIFY FOR RS PARTNERSHIP:

3.1 The Applicant must meet the following minimum requirements and criteria for any RS partnership:
(a) Be currently registered with the State of California as a not-for-profit community organization under Section 501(c)(3) or (c)(4) of the Internal Revenue Code.
(b) Not be the ,subject of any pending in;vestigation by any government or administrative agency, whether at the City, County, State or Federal level and demonstrated history of adherence· to City rules, policies and allocations.
(c) Carry appropriate commercial and liability insurance with limits no less than am·ount determined by City per incident, including appropriate additional in~ured endorsements in favor of City.
(d) Demonstrated financial hardship if partr;iership i_s,denied and the Applicant is reqµired to pay regular rates for use of City amenities~ fields and/or facilities. .
(e) Demonstrated ability and willingness to contribute to City $25 for each participant in the form of:
i. an annual charitable donation; or
ii. in-kind services, such as field/facility maintenance, cleaning, community.service, City image promot'ion, and/or volunteer support of City activities as approved by City; or
iii. combination of above, as approved by City.
(f) Organization must have open enrollment policy regardless of skill level. (g) Organization must have minimum play rule of 50% play for all participants. (h) Demonstrated scholarships provided for those in financial n·eed. (i) Organization must have a, "no discrimination" and "no alcohol" policy.

3.2 _In addition to the above requirements and criteria for RS Partnership, the Applica·nt may qualify for the levels of partnership as follows:
(a) Senior RS Partnership: The Applicant has provide~ the sports program for City for at least five years, and currently has at least 300participahts, 9,0% of whom reside in City. Program games and practices must be conducted in San Clemente boundaries.
31 (b). Jun_ior RS Partnership: The Applicant has provid~d the sports program for City for at least two years, and currently has at least 100 participants, 75% of \II/ham reside in City.

4. PROCEDURE FOR EVALUATING APPLICATION FOR RS PARTNERSHIP:

4.1 All requests for RS Partnership shall be submitted first to the Beaches, Parks and Recreation Depart_r:ne_nt (hereinafter "Department"). Applications will'.be accepted once a year at a time determined by the City. The Applicant shall include in their packet the completed application form and all supporting documentation, including but not limited to:
(a) City RS Partnership Application (application for permit to use recreational facilities) and Facility Use Application.
(b) Proof of current 501(c)(3) or (4) status;
(c) Commercial and liability insurance declaration pages; (d) Applicant articles, bylaws and other charter documents; (e) Proof sufficient to establish the financi'al hardship requirement, such as budgets, profit/loss statements, audited financial statements, balance statements, and/or two years of tax returns;
(f) Statisticai. data and rosters to support p·articipant population and residency requirement for RS Partnerships.

4.2 Organizations that meet the minimum requirements as stated in this policy shall be forwarded for review to the Beaches, Parks arid Recreation Commission (hereinafter "Commission").

4.3 "Commission shall review the application packet, the Department staff report, and any additional information provided by the Applicant or others. Commission may consider whether the Applicant has satisfied the minimum requirements set forth in §3.1, whether partnership is. warranted in light of the po"iicies and purposes set forth in §1.1-1.2, and whether partnership is in the best interests of City and its residents. In making its recommenda_tion to City, Commission may also consider whether Applicant deserves partnership, or a particular level of partnership, notwithstanding the requirements set forth in §3.1-3.2."

4.4 If Commission recommends to City Council disapproval of the request for RS Partnership, or any specified level of partnership, Commission shall briefly include in the Minutes the reasons therefore. City Council shall make the final determination.

Pi:iop 3
32 5. RS PARTNERSHIP EXPECTATIONS AND LONGEVITY

5.1 All RS Partners shall adhere to all the policies and procedures of City and the RSPP, and cooperate with the Department and City staff to ensure thatthe purpose of the partnership is met. RS Partners shall provide City representatives with access at all times to review or monitor the sports program. RS Partners shall not discriminate against those in its employee, volunteers or participants on account of race, religion, national origin, ethnicity, sexual orientation or gender (except where gender is a bona fide issue for the sports program).

5.3 Junior RS Partn.ers·shall be required to re-apply for partnership every two years by submitting a complete application packet to the Department, followed by Commission consid.eration, and City Council approval as outlined in this policy.

Junior RS Partners are eligible for benefits during primary season only.

5.4 Senior RS Partn~rs shall be required to re-apply for partnership every three years by submitting a c_on:,plete application packet to the Department, followed by Commission consideration, and City Council approval as outlined in this Policy.

5.5 The Department or Commission, may, at any time, for cause, temporarily suspend or revoke an Applicant's RS Partnership status and forward to-the Commission and/or the City Council for reconsideration of partn-ership status.

5.6 The City Council may, at any time, and without cause, suspend or revoke an Applicant's RS Partnership status.

5. 7 The City Coun<Eil may grant the Department and/or Commission authority to extend RS Pa·rtnerships for a period of time up-to five-years if doing so would be in the best interests of City, its residents and the Applicant.

Piwe4

CITY OF SAN CLEMENTE APPLICATION FOR RECREATION PARTNERSHIP STATUS RECREATION PARTNERSHIP POLICY AND PURPOSE:

1.1 It is the desire of the City of San Clemente (hereinafter “City”) to encourage and promote various youth sports on a year-round basis within the city limits, and to make the best and most efficient use of City’s amenities, fields, and facilities. Partnering with select outside organizations/associations for Recreation programs allows service to a larger portion of the community than only City provided programs. City wishes to promote such partnerships by providing reduced rental rates, field allocation priorities, and limited support services, which may include site preparation and maintenance, periodic field improvements as needed and limited administrative/clerical support.

1.2 The purpose of this Recreation Sports Partnership Policy is to set forth and make clear the requirements and criteria for partnerships between City and any organization/association (hereinafter “Applicant”) intending to provide Recreation programs and request fee reductions within City. A partnership agreement made pursuant to this policy shall be known as an RS Partnership, will carry the additional designation of Platinum, Gold, or Silver, and shall be subject to all the requirements set forth herein and any additions, amendments or revisions hereto. Only a limited number of RS Partnerships will be granted to the organization representing standard prevalent water sports, as determined by the Beaches, Parks and Recreation Commission and the City Council.

2. REFERENCES: San Clemente Municipal Code Chapter 12.28.010.

MINIMUM REQUIREMENTS AND CRITERIA TO QUALIFY FOR RS PARTNERSHIP:

3.1 The Applicant must meet the following minimum requirements and criteria for any RS partnership:
a) Be currently registered and active with the State of California as a not-for-profit community organization under Section 501(c)(3) or (c)(4) of the Internal Revenue Code. b) Not be the subject of any pending investigation by any government or administrative agency, whether at the City, County, State or Federal level and demonstrated history of adherence to City rules, policies and allocations.
c) Carry appropriate commercial and liability insurance with limits no less than amount determined by City per incident, including appropriate additional insured endorsements in favor of City. d) Demonstrated financial hardship if partnership is denied and the Applicant is required to pay regular rates for use of City amenities, fields and/or facilities. e) Organization must have open enrollment policy regardless of skill level. f) Organization must have minimum play rule of 50% play for all participants. g) Demonstrated scholarships provided for those in financial need. h) Organization must have “no discrimination,” “no alcohol, ”and “no illegal substance” policies.

3.2 In addition to the above requirements and criteria for RS Partnership, the Applicant may qualify for the levels of partnership as follows:
a) Platinum RS Partnership: must have provided the sports program for City for at least five years, and currently have at least 300 participants, 90% of whom reside in the City. Games, tournaments, and practices must be conducted in San Clemente boundaries. b) Gold RS Partnership: must have provided the sports program for the City for at least three years, and currently have at least 200 participants, 80% of whom reside in the City. Games, tournaments, and practices must be conducted in San Clemente boundaries. c) Silver RS Partnership: must have provided the sports program for City for at least two years, and currently have at least 100 participants, 70% of whom reside in the City of San Clemente PROCEDURE FOR EVALUATING APPLICATION FOR A PARTNERSHIP:

4.1 All requests for RS Partnership shall be submitted first to the Beaches, Parks and Recreation Department (hereinafter “Department”). Applications will be accepted once a year at a time determined by the City. 33 CITY OF SAN CLEMENTE APPLICATION FOR RECREATION PARTNERSHIP STATUS The Applicant shall include in their packet the completed application form and all supporting documentation, including but not limited to:
a) City RS Partnership Application (application for permit to use recreational facilities) and Facility Use Application.
a) Proof of current 501(c)(3) or (4) status;
b) Commercial and liability insurance declaration pages; c) Applicant articles, bylaws and other charter documents; d) Proof sufficient to establish the financial hardship requirement, including the required budget form and two years of tax returns and can also include a profit/loss statements, audited financial statements, balance statements;
e) Statistical data and rosters to support participant population and residency requirement for RS Partnerships.

4.2 Organizations that meet the minimum requirements as stated in this policy shall be forwarded for review to the Beaches, Parks and Recreation Commission (hereinafter “Commission”).

4.3 Commission shall review the application packet, the Department staff report, and any additional information provided by the Applicant or others. Commission may consider whether the Applicant has satisfied the minimum requirements set forth in §3.1, whether partnership is warranted in light of the policies and purposes set forth in §1.1-1.2, and whether partnership is in the best interests of City and its residents. In making its recommendation to City, Commission may also consider whether Applicant deserves partnership, or a particular level of partnership, notwithstanding the requirements set forth in §3.1-3.2.

4.4 If Commission recommends to City Council disapproval of the request for RS Partnership, or any specified level of partnership, Commission shall briefly include in the Minutes the reasons therefore. City Council shall make the final determination.

RS PARTNERSHIP EXPECTATIONS AND LONGEVITY

5.1 All RS Partners shall adhere to all the policies and procedures of City and the RSPP, and cooperate with the Department and City staff to ensure that the purpose of the partnership is met. RS Partners shall provide City representatives with access at all times to review or monitor the water sports program. RS Partners shall not discriminate against those in its employee, volunteers or participants on account of race, religion, national origin, ethnicity, sexual orientation or gender (except where gender is a bona fide issue for the water sports program).

5.2 Gold and Silver RS Partners shall be required to re-apply for partnership every two years by submitting a complete application packet to the Department, followed by Commission consideration, and City Council approval as outlined in this policy.

5.3 Platinum RS Partners shall be required to re-apply for partnership every three years by submitting a complete application packet to the Department, followed by Commission consideration, and City Council approval as outlined in this Policy.

5.4 The Department or Commission, may, at any time, for cause, temporarily suspend or revoke an Applicant’s RS Partnership status and forward to the Commission and/or the City Council for reconsideration of partnership status.

5.5 The City Council may, at any time, and without cause, suspend or revoke an Applicant’s RS Partnership status.

5.6 The City Council may grant the Department and/or Commission authority to extend RS Partnerships for a period of time up to five years if doing so would be in the best interests of City, its residents, and the Applicant.
34 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 7/18/2023 Agenda Item: 7C
Department: Finance and Administrative Services
Prepared By David Rebensdorf, Utilities Director
Jacob Rahn, Financial Services Officer
Subject:

PUBLIC HEARING AND INTRODUCTION (FIRST READING) OF AN ORDINANCE AMENDING CHAPTER 13.29.190 SUBSECTION (D) and (E) OF THE SAN CLEMENTE MUNICIPAL CODE

RELATING TO SANITARY SEWER RATES AND FINDING THE ORDINANCE NOT SUBJECT TO

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Summary:

The City Council is required to hold a public hearing related to proposed sewer rate modifications based on the Cost of Service Study prepared by Raftelis Financial Consultants, which was previously reviewed by Council on May 2, 2023. Rate changes over a five-year period are proposed to address sewer costs and capital related costs as identified in this report and within the Cost of Service Study.

Background:

The City provides sewer service to approximately 16,700 customers. The sewer utility is a financially self-sufficient enterprise fund that relies on revenues from service charges to fund the costs of providing services. As such, sewer rates must be set at levels to recover operating costs and to fund capital investments to keep the system in proper operating condition. Since 2014, there has been only one two percent rate increase in 2016 as staff was able to realize cost savings through process changes, chemical reduction, solids disposal, revenue from treatment of Santa Margarita Water District’s (SMWD) Talega area since December of 2017, and other cost savings put into place.

The Cost of Service rate study modifies and modernizes the sewer rate structure. The draft Cost of Service rate study was presented to the City Council on May 2, 2023 with two options to implement rates to cover future operating and capital needs. The City Council directed staff to initiate a sewer rate public hearing based on the selected option. City staff, in accordance with the option and City Council direction, prepared public notices, finalized the consultant report, and scheduled a public hearing to adjust sewer rates. The public hearing was set for July 18, 2023 with notifications performed, as described later in this report.

The Cost of Service Study report presents the detailed results of the sewer study. The report identifies various components and criteria in developing and implementing rates for a 5-year timeframe, see attachment 3. Based on the financial analysis presented in May 2023, capital reserves in FY 2024 would not be fully funded and operating reserves in FY 2026 would be utilized.

The Ordinance amending Section 13.24 of the Municipal Code modifies the applicable Municipal Code Section related to sewer rates for the five year timeframe. The initial rate change, if adopted, will be assessed in the October billing cycle. Annual rate changes effective on January 1st in subsequent years would be reflected in the February billing cycle.

CITY OF SAN CLEMENTE Page 1 of 3 Printed on 7/13/2023
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Meeting Date: 7/18/2023 Agenda Item: 7C
The Cost of Service report recommends changes to sewer meter rates based on current AWWA guidelines in line with current standards. Commodity rates will be increased under the proposed rate structure, however, these increases are offset by a calculation that will lower the measure of volumetric flow. Additionally, modifications to the single family dwelling wet winter month period and the usage percentage lower the number of billed units reducing the impact of the commodity rate increase. Other customer class changes address the current strength and flow with current operations.

As an example, single family residential commodity rates increase but the community units billed are based on a lower unit number due to lower flow months and the percentage billed being reduced from a 90% of wet winter month period (October-March) to 75% of the wet winter month average (February-March) which historically is a lower usage timeframe. Overall, this will reduce the commodity units billed and limit fluctuations in the commodity units from year to year for residential customers.

The rate option selected by the City Council includes a 30% increase over five years, as opposed to an alternative option, which would have provided for a 34% increase. The annual changes to the rates by year are listed in the following table:
2023 2024 2025 2026 2027
Rate change 9.5% 6.0% 5.0% 5.0% 4.5%
Based on a rate comparison to other agencies, the City of San Clemente’s average monthly bill will remain in the lower half of the comparative rates. Of the 10 agencies reviewed, San Clemente’s proposed rates are ranked at 4th place with 1 being the least expensive and 10 being the most expensive. The following table below outlines the average monthly wastewater bill for residential, since this is the largest customer group:

Rank Agency Service Charges
(Monthly Fixed)
Commodity Charge (Monthly Variable) Average Monthly
Wastewater Bill
1 Irvine Ranch* n/a $25.50 varies on average of lowest three months Water Use
$25.50
2 Moulton Niguel* $20.10 $5.36 per capita $36.16
3 Trabuco Canyon* $39.56 n/a $39.56
4 San Clemente
(Proposed)
$25.57 $2.97 per 75% of lowest two-month water
use
$41.38
5 El Toro* $41.76 n/a $41.76
6 Santa Margarita* $32.21 $1.12 per unit of current period Water Use (Max 9 units)
$42.29
7 Santa Margarita (San
Juan Serv Area)
$25.56 $2.52 per unit of current period water use $48.24 8 Oceanside $26.84 $34.63 varies on Average Winter Quarter Water Use
$61.47
9 Laguna Beach $71.57 n/a $71.57
10 South Coast $74.94 n/a $74.94
Pursuant to California Constitution article XIID, section 6 (approved by the voters with Proposition CITY OF SAN CLEMENTE Page 2 of 3 Printed on 7/13/2023
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Meeting Date: 7/18/2023 Agenda Item: 7C
218), prior to imposing a new fee or increasing existing property-related fees such as sewer rates, the City is required to hold a public hearing and mail notices of the public hearing. The City mailed notice of the Public Hearing to all property owners of parcels receiving wastewater services and all customers of record based on the Council action taken. These mailings occurred on June 2, 2023 and a copy of the mailing is included as Attachment 2. Additionally, notifications were printed in the newspaper in June for two consecutive weeks and various information was posted to the City website at www.san-clemente.org/sewerratestudy <http://www.san-clemente.org/sewerratestudy>.

At the Public Hearing, the City Council receives and considers all written protests against the rate increases. Both property owners and customers of record may submit written protests, but only one protest per parcel will be counted. If protests are received from a majority of parcels receiving wastewater service, the City Council may not adopt the increased rates. If approved, revised rates will become effective 30 days after the second reading of the Ordinance, which will be scheduled for the next Council meeting. After the initial increase, customers will receive notice of annual increases effective each January and the increases will be seen on the February bill of each subsequent year.

Council Options:
· Conduct the public protest hearing and introduce and conduct the first reading of Ordinance No. 1754.
· Continue the item until the next meeting and direct staff to provide additional information. · Conduct the public protest hearing and do not introduce Ordinance No. 1753.

Fiscal Impact:

Yes, additional revenues, not exceeding the cost of services, are anticipated based on the proposed rate structure in the report. If the proposed rate structure is not implemented, operational deficits will continue to be experienced resulting in impacts to current and future operations if other financing sources are not received.

Environmental Review/Analysis:

Not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendations

1. The public protest hearing be held and protests be counted, and

2. If protests are not received from a majority of parcels receiving wastewater service, introduce and conduct the first reading of Ordinance No. 1754 entitled “An Ordinance of the City Council of the City of San Clemente, California, Amending Chapter 13.24.190 Subsections (D) and (E) of the San Clemente Municipal Code Relating to Sanitary Sewer Rates and Finding the Ordinance Not Subject to the California Environmental Quality Act”.

Attachment:

1. Ordinance No. 1754

2. Notice of Public Hearing

3. 2023 Wastewater Cost of Service and Rate Design Study CITY OF SAN CLEMENTE Page 3 of 3 Printed on 7/13/2023
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ATTACHMENT 1
ORDINANCE NO. 1754

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA,
AMENDING CHAPTER 13.24.190 SUBSECTIONS (D)

AND (E) OF THE SAN CLEMENTE MUNICIPAL

CODE RELATING TO SANITARY SEWER RATES

AND FINDING THE ORDINANCE NOT SUBJECT TO

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of San Clemente provides sewage services to its citizens and; and
WHEREAS, the City desires to ensure that the costs associated with the operation of the City’s sewage collection and treatment systems are recovered through the fees charged for the provision of that service; and
WHEREAS, Raftelis Financial Consultants prepared an updated sewer model and rate study, which forecasts five years of operating revenues and expenses and sets forth a proposed rate schedule that will ensure that rate revenues due not exceed the City’s costs of providing sewer services and that the rates are proportionately charged to each customer for sewer services (“Rate Study”); and
WHEREAS, the City Council has determined that the sewer rates charged for sewer services should be modified to recover current and projected costs and to fund capital infrastructure improvements and repairs; and
WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Staff Report and attachments thereto:
(1) Revenues derived from the proposed sewer rates will not exceed the funds required to provide sewer service;
(2) Revenues derived from the proposed sewer rates will not be used for any purpose other than that for they were imposed;
(3) The amount of the sewer rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel;
(4) The sewer rates are imposed for a service for services that are actually used by, or immediately available to, the owner of the property in question; and (5) The sewer rates are not being imposed for general government services; and WHEREAS, pursuant to the provisions of Article 13D, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing sewer rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the sewer rates together with an explanation of: (1) the 4 4869-3449-8671 v1
amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and WHEREAS, the City Council directed staff to begin the notice and hearing process for the Council to consider the proposed sewer rates at the May 2, 2023 City Council meeting; and
WHEREAS, notice of the public hearing to consider proposed adjustments to the sewer rates was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons. Art. XIIID, §6); and
WHEREAS, written notification of the public hearing was published the first two weeks of June 2023 in the San Clemente Times prior to the Public Hearing on July 18, 2023; and
WHEREAS, owners of parcels of real property receiving sewer services from the City and customers of record were given the opportunity to submit written protests to the proposed rate increases prior to the close of the public comment portion of the Public Hearing with only one protest per parcel being counted; and WHEREAS, on July 18, 2023, the City Council conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist and;
NOW, THEREFORE, the City Council of the City of San Clemente, California, hereby ordains as follows:

Section 1. The City Council hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Ordinance.

Section 2. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”). This action is not a project within the meaning of the CEQA Guidelines Section 15378 as it has no potential for physical effects on the environment because it involves an adoption of certain rates and/or charges imposed by the City and does not commit the City to any specific project, and said rates and/or charges will be used to fund future projects and/or activities, each of which future projects and/or activities will be fully evaluated in compliance with CEQA when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review (see CEQA Guidelines, Section 15004(b)(1)). Pursuant to CEQA Guidelines section 15378(b)(4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause significant effect on the environment, 5 4869-3449-8671 v1
is not defined as a “project” under CEQA. Therefore, approval of the rates and/or charges is not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4); and, even if considered a “project” under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Sections 15061(b)(3) and 15273 because it can be seen with certainty that there is no possibility that approval of the rates and/or charges may have a significant effect on the environment.

Section 3. The procedures followed and the sewer rates referenced herein are in compliance with the California Constitution Article XIII D, California Government Code section 53755, and Health and Safety Code section 5471.

Section 4. Subsection D of Section 13.24.190 of the City of San Clemente Municipal Code entitled “Establishment of Fixed Rate,” is hereby amended to read in its entirety as follows:

Except as provided in the following table, for each parcel connected to the City’s sanitary sewer system, the monthly fixed rate is established as follows:

Meter Size
New
Rate
Rate
effective
1/1/2024
Rate
effective
1/1/2025
Rate
effective
1/1/2026
Rate
effective
1/1/2027
1 inch (in.) and below $ 26.15 $ 27.72 $ 29.10 $ 30.56 $ 31.93 1 ½ in. 50.78 53.83 56.52 59.35 62.02
2 in. 80.35 85.17 89.43 93.90 98.12
3 in. 173.97 184.40 193.62 203.31 212.45
4 in. 311.93 330.64 347.18 364.54 380.94
6 in. 642.05 680.58 714.61 750.34 784.10
Section 5. Section 13.24.190, subsection E of the City of San Clemente Municipal Code, entitled “Sewage Commodity Rate,” is hereby amended to read in its entirety as follows:

E. Sewerage Commodity Rate. In addition to the fixed rate established in subsection (D) of this section above, every customer whose property is connected to the city sanitary sewer system shall pay a sewer commodity rate. The sewer commodity rate shall be based upon the per unit cost of water as multiplied by a portion of the total quantity of water used on the property as calculated in the manner provided below.

Classification
New
Rate
Rate
effective
1/1/2024
Rate
effective
1/1/2025
Rate
effective
1/1/2026
Rate
effective
1/1/2027
x Portion Total Water
Used
Residential $ 3.05 $ 3.23 $ 3.39 $ 3.56 $ 3.72 75% lowest WMA* Multi-family 3.04 3.23 3.39 3.56 3.72 85% during billing period Low strength 1.28 1.36 1.42 1.50 1.56 80% during billing period Medium strength 2.73 2.90 3.04 3.19 3.34 85% during billing period Medium-High
strength

4.27 4.52 4.75 4.99 5.21 85% during billing period
High strength 7.17 7.60 7.98 8.38 8.75 85% during billing period Mixed Use 2.56 2.71 2.85 2.99 3.13 85% during billing period 6 4869-3449-8671 v1
* The sewer commodity rate for single-family dwelling shall be annually calculated by multiply the per unit rate times seventy-five (75%) of the Winter Month Average (WMA).

For the purposed of this section, winter months shall be defined as February and March.

The WMA shall be calculated using the total consumption for a service location during the prior fiscal year’s winter months divided by the number of winter months in which there was water consumption. If the WMA results in a fraction, the result shall be rounded to the nearest whole number. If there was no winter month in the previous fiscal year in which water was actually consumed, the sewer commodity rate shall be based on a City average during the winter months and shall be annually calculated during the winter averaging process.

Section 6: The City Clerk shall certify to the passage of this ordinance and cause the same to be published as required by law, and the same shall take effect as provided by law.

APPROVED AND ADOPTED this _____day of _________________, 2023.

ATTEST:
_______________________________ ___________________________ City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
7 4869-3449-8671 v1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1754 having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_______________________________
Elizabeth A. Mitchell, CITY ATTORNEY
8 About the City’s Public Sanitary Sewer System
The City of San Clemente owns and maintains the public sanitary sewer system serving the community and is responsible for safely collecting, treating, disposing, and recycling of wastewater (sewage) and industrial waste. All of the water used in the home that goes down the drains or into the sewage collection system is wastewater. This includes water from baths, showers, sinks, dishwashers, washing machines, and toilets. Small businesses and industries can also contribute large amounts of wastewater to sewage collection systems. The average American contributes 150 gallons of wastewater each day. Wastewater is about 99% water by weight and is generally referred to as influent as it enters the San Clemente Wastewater Reclamation Plant.Wastewater that comes from homes and business in the City of San Clemente's service area is treated through 5 different processes:
x Preliminary Treatment - Removes grit, rags, and other inorganic heavy debris.x Primary Settling - Settles the heavier organic solids. x Aeration (Activated Sludge) - Aerobic bacteria consumes smaller organics called suspended solids (SS) or biological oxygen demand (BOD).
x Secondary Settling - Settles out microorganisms in the activated sludge that consumed the suspended solids.x Tertiary Filtration - Filters out remaining waste particles through sand filtration.

City of San Clemente Utility Billing Division910 Calle NegocioSan Clemente, CA 92672 What’s Next: Comprehensive Cost-of-Service Study - Water Rates The City will be starting a Cost-of-Service Study for the Water system in Fiscal Year 2024. This study will determine the costrecovery approach the Water utility will utilize as the basis for water rates for the next five to ten-year timeframe. The Study will:
x determine the current and projected costs of providing water service; x review the existing water rate structure, customer classifications, and tier widths;x consider alternative pricing methodologies and review industry standards within California; x model the impact of the current and/or future droughts on system operations and rates; andx develop a rate model for use over the next five to ten-year timeframe.

Recommendations, including possible rate increases or adjustments, from the Study will be presented at a future Public Hearing for consideration, deliberation, and adoption by City Council.

IMPACT ON YOUR BILL
The typical single-family residential combined monthly utility bill will increase from $125.51 to $130.11. For a typical singlefamily home that uses an average of 10 units of water during winter months, the monthly sewer bill will increase from $36.78 to $41.38.

The typical commercial account combined monthly utility bill will change from $519.21 to $473.26. Commercial customer bills are going down because the fixed charge is now proportional to revised AWWA hydraulic capacity factors. The monthly sewerbill for a typical commercial account, which uses 40 units of water per month, will change from $219.12 to $173.17.

You are hereby notified, pursuant to Government Code Section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended sewer fee, rate, or charge. As such, any judicial action or proceeding to attack, review, set aside, void, validate, or annul the City's adoption of the proposed sewer rates must be commenced within 120 days of the effective date or of the date of the final passage, adoption, or approval of the ordinance or resolution adopting the sewer rates.

The remainder of this page is blank
XXX
XXX
XXX

PRESORT
Standard
U.S. Postage
Paid
Mailed from
Zip Code
92899
Permit #146

NOTICE OF PUBLIC HEARING

ON PROPOSED CHANGE IN

SEWER RATES
July 18th, 2023 at 6:00 PM
City Hall Council Chambers
910 Calle Negocio
San Clemente, CA 92673
NOTICE IS HEREBY GIVEN that the City of San Clemente (the “City”) will hold a Public Hearing on July 18th, 2023 at 6:00 p.m. in the City Council Chambers located at 910 Calle Negocio, San Clemente, to consider adjustments to the rates of the City’s current sewer service fees.

ATTACHMENT 2
9 □

QUESTIONS AND ANSWERS
Why are you receiving this notice? You have received this notice because the City of San Clemente provides sanitary sewer service to your property. The City is proposing a rate increase in order to pay projected costs needed for the City’s collection and treatment system. As a propertyowner or resident within the City’s service area, your monthly sewer service fees will pay for these services. This letter serves as notice that a public hearing will be held on July 18, 2023, at 6:00 p.m., in the City Council Chambers located at 910 Calle Negocio, San Clemente, to consider adjustments to the rates of the City’s current sewer service charges. If approved, rate adjustments will take effect on August 19, 2023. What do sewer rates fund? The City provides sewer services to 16,700 customers (residential and commercial) within the city limits. Monthly rates paid by users are the primary source of revenue to fund operations. All revenue generated from the sewer portion of your combined monthly utility bill is used to maintain and operate the sewer systems; it is not used for other general governmental purposes.These revenues must meet costs such as electricity, chemicals, maintenance, salaries and benefits for utility enterprise staff.

Why are rate adjustments necessary? The current sewer rates became effective on August 1, 2016, and were based on an update of an earlier cost-of-service rate study completed on May 30, 2012. The cost to provide the sewer service has continued to increase while rates have not increased since 2016. Rates have not increased primarily due to cost saving measures and alternative revenue sources. The City is committed to providing the highest quality utility services at the lowest possible rates for our customers. To meet this commitment, in 2019 the City undertook an evaluation of the infrastructure needs, programs, and operations and maintenance costs of the City’s sewer services and the rates charged for those services for the next five years. Based on this evaluation, it has been determined that rate increases are necessary to enable the City to: recover current and projected costs of operations and maintenance; to provide funds to repair and replace existing capital infrastructure, replenish reserves needed based on capital plans to update the City’s aging sewer systems; maintain the operational and financial stability of the utilities; comply with State and Federal mandated regulatory requirements; and avoid operational deficits and depletion of reserves.

How do I protest the proposed fees? Any record owner of a parcel upon which the proposed sewer service charges are to be imposed or any tenant directly responsible for the payment of sewer service fees and charges (i.e., a customer of record who is not a property owner) may submit a writtenprotest to the proposed rate increases for the City’s sewer service fees and charges; provided, however, only one protest will be counted per identified parcel. Any written protest must: (1) state the protest is being submitted in opposition to the proposed rate increase; (2) provide the location of the identified parcel (by street address or assessor’s parcel number); and (3) include the name and original signature of the property owner or tenant responsible for the payment of the sewer charges submitting the protest. Written protests may be submitted by mail or in-person to the City Clerk at 910 Calle Negocio, San Clemente, CA 92673, or at the Public Hearing (date and time noted above). The City Clerk must receive written and signed protests delivered by mail no later than 4:00 p.m. on the date of the Public Hearing, or if delivered in person, prior to the close of the public comment portion of the Public Hearing. Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any protest, whether mailed or submitted in-person to the City Clerk, “Attn: Public Hearing on Rate Increases.” The City Council will consider all written protests and hear and consider all oral comments to the proposed rate increases and annual rate adjustments at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written and signed protest. Upon the conclusion of the Public Hearing, the City Council will consider adoption of the proposed rate increases for the sewer service fees and charges. If written protests against the proposed rates as outlined above are not presented by a majority of the parcels directly responsible for the payment of sewer service charges of the identified parcels upon which the rates and charges are proposed to be imposed, the City Council will be authorized to impose the rate increases as outlined above. If adopted, the proposed rate increases for sewer service charges will take effect beginning August 19, 2023. Subsequent rate increases in the five-year period will become effective January 1st of each year.

For any questions you may have regarding the rates or the rates applicable to your property, please contact the City at 949-361- 8315 or by email at [email protected].

PROPOSED SEWER SERVICE FEES
The City hired Raftelis Financial Consultants to conduct a cost of service study that determined the City's total costs of providing sewer services and then equitably apportioned those costs to each customer class based on the City’s costs of providing sewer services to that class. The cost of service study detailing the basis for the rate calculations is available at www.sanclemente.org/sewerratestudy and can be provided by the City Clerk, upon request by email ([email protected]) or by public records request online at https://www.san-clemente.org/prr. The rate structure for the sewer service fees consists of three customer classes—residential, commercial, and mixed-use (a property with both commercial and residential uses). Within the commercial customer class, there are subclasses of customers.

The subclasses are classified based on the type of commercial activity and constituents that they discharge into the sewer system—low strength, medium strength, medium-high strength, and high strength.

The City’s sewer service charges are comprised of two components – a fixed Meter Charge and a variable Commodity Charge. The Meter Charge is a monthly fixed charge calculated on the basis of the size of the water meter serving the property (in inches).

The Commodity Charge is a variable charge determined on the basis of a customer’s metered water use (in HCF) and assumptions regarding the volume of water returned to the sewer system. The current return to sewer assumptions are based on historic wastewater flows. However, due to a decrease in wastewater flows, these assumptions are also proposed to be updated as shown in the table below. This change will directly affect the calculations for Variable Sewer Commodity Charges.

The current and proposed rates for the sewer service charges are shown in the tables below.

CURRENT AND PROPOSED SEWER SERVICE CHARGES

FIXED METER CHARGE

CURRENT RATES PROPOSED RATES

METER SIZE

EFFECTIVE
AUG 19, 2023

EFFECTIVE
JAN 1, 2024

EFFECTIVE
JAN 1, 2025

EFFECTIVE
JAN 1, 2026

EFFECTIVE
JAN 1, 2027
1” and under $23.82 $26.15 $27.72 $29.10 $30.56 $31.93 1 1/2” $78.60 $50.78 $53.83 $56.52 $59.35 $62.02 2” $126.24 $80.35 $85.17 $89.43 $93.90 $98.12 3” $262.02 $173.97 $184.40 $193.62 $203.31 $212.45 4” $404.92 $311.93 $330.64 $347.18 $364.54 $380.94 6” $793.18 $642.05 $680.58 $714.61 $750.34 $784.10

VARIABLE SEWER COMMODITY CHARGE

CURRENT RATES PROPOSED RATES

ACCOUNT TYPE

EFFECTIVE
AUG 15, 2023

EFFECTIVE
JAN 1, 2024

EFFECTIVE
JAN 1, 2025

EFFECTIVE
JAN 1, 2026

EFFECTIVE
JAN 1, 2027
Residential Single Family $1.44 $3.05 $3.23 $3.39 $3.56 $3.72 Residential Multi-Family $1.44 $3.04 $3.23 $3.39 $3.56 $3.72 Commercial Low-Strength $1.97 $1.28 $1.36 $1.42 $1.50 $1.56 Commercial Medium Strength $2.58 $2.73 $2.90 $3.04 $3.19 $3.34 Commercial Med-High Strength $4.57 $4.27 $4.52 $4.75 $4.99 $5.21 Commercial High Strength $6.38 $7.17 $7.60 $7.98 $8.38 $8.75 Mixed-Use $2.61 $2.56 $2.71 $2.85 $2.99 $3.13

RETURN TO SEWER ASSUMPTIONS

CUSTOMER TYPE CURRENT RATES PROPOSED RATES
Residential Single Family 90% of average water use during October-March 75% of average water use during February-March Residential Multi-Family 90% of current period water use 85% of current period water use Commercial Low-Strength 90% of current period water use 80% of current period water use Commercial Medium Strength 90% of current period water use 85% of current period water use Commercial Med-High Strength 90% of current period water use 85% of current period water use Commercial High Strength 90% of current period water use 85% of current period water use Mixed-Use 90% of current period water use 85% of current period water use 10 11
f-------+---+--
~
11 11
,~
~
11 I
2023 Wastewater Cost of Service and Rate
Design Study
Final Report / June 8, 2023
City of
San Clemente
ATTACHMENT 3
11 445 S Figueroa St, Suite 1925
Los Angeles CA 90071
www.raftelis.com
June 6, 2023
Mr. Dave Rebensdorf
Utilities Director
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Subject: 2023 Wastewater Cost of Service and Rate Design Study Dear Mr. Rebensdorf:

Raftelis is pleased to provide this 2023 Wastewater Cost of Service and Rate Design Study Report to the City of San Clemente (City). The overall purpose of the study was to develop a proposed five-year wastewater rate schedule for Fiscal Year (FY) 2022-23 through FY 2026-27 that is fair, equitable, and funds the City’s wastewater utility. The City is delay in implementing rates and the rates will be effective in July of 2023 (FY 2024).

As part of the rate study Raftelis and Staff:
» Developed a ten-year financial plan for the City’s Wastewater Enterprises to ensure financial sufficiency, meet operating costs, fund long-term capital needs, and maintain prudent reserves. » Conducted a wastewater cost of service analysis to ensure a strong nexus between proposed rates and the cost to provide services to customers.
» Developed five years of wastewater rates that we believe are defensible and equitable.

It has been a pleasure working with you and we thank you and other City staff for the support provided to Raftelis during this study.

Sincerely,
Steve Gagnon, PE (AZ)
Project Director
12 ~ RAFTELIS
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY
Table of Contents

1. EXECUTIVE SUMMARY ................................................................................................................................. 1

1.1. Study Overview ............................................................................................................................................. 1

1.2. Rate Study Process ....................................................................................................................................... 1

1.3. Proposed Wastewater Financial Plan ........................................................................................................... 1

1.4. Current and Proposed Wastewater Rates .................................................................................................... 3

1.5. Monthly Bill Impacts....................................................................................................................................... 5

2. INTRODUCTION .............................................................................................................................................. 9

2.1. City of San Clemente Wastewater System ................................................................................................... 9

2.2. Study Overview ............................................................................................................................................. 9

3. LEGAL REQUIREMENTS AND RATE SETTING METHODOLOGY ........................................................... 10

3.1. Legal Requirements .................................................................................................................................... 10

3.2. Rate-Setting Methodology ........................................................................................................................... 10

4. INPUTS AND ASSUMPTIONS ...................................................................................................................... 12

4.1. Current Wastewater Rates .......................................................................................................................... 12

4.2. Projected Billed Wastewater Use Under Current Rate Structure ............................................................... 13

4.3. Wastewater Enterprise Financial Assumptions ........................................................................................... 13

4.4. Projected Wastewater Number of Accounts ............................................................................................... 14

5. WASTEWATER FINANCIAL PLAN .............................................................................................................. 15

5.1. Wastewater Revenue at Existing Rates ...................................................................................................... 15

5.2. Wastewater Enterprise Operations & Maintenance Expenses ................................................................... 16

5.3. Wastewater Enterprise Capital Improvement Plan ..................................................................................... 16

5.4. Wastewater Enterprise Financial Policies ................................................................................................... 17

5.5. Proposed Wastewater Financial Plan ......................................................................................................... 18

6. WASTEWATER COST OF SERVICE ANALYSIS ........................................................................................ 21

6.1. Methodology ................................................................................................................................................ 21

6.2. Wastewater Rate Revenue Requirement ................................................................................................... 21

6.3. Functionalization and Allocation of Expenses to Cost Components .......................................................... 22

6.3.1. Functionalization and Allocation of O&M Costs ....................................................................................... 23

6.3.2. Functionalization and Allocation of Capital Costs to Cost Components .................................................. 25

6.4. Plant Mass Balance Analysis ...................................................................................................................... 26

6.5. Wastewater Units of Service ....................................................................................................................... 28

6.6. Wastewater Unit Costs ................................................................................................................................ 28

6.7. Wastewater Cost Allocation to Customer Classes ..................................................................................... 30

7. PROPOSED WASTEWATER RATES .......................................................................................................... 32 13 CITY OF SAN CLEMENTE

7.1. Proposed Fixed Charges ............................................................................................................................. 32

7.2. Billed Wastewater Discharge ...................................................................................................................... 33

7.3. Proposed Volumetric Rates......................................................................................................................... 34

7.4. Proposed Monthly Five-Year Wastewater Rate Schedule.......................................................................... 35

8. CUSTOMER BILL IMPACTS ......................................................................................................................... 36

8.1. Monthly Wastewater Bill Impacts ................................................................................................................ 36 14 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY List of Tables
Table 1-1: Proposed Wastewater Revenue Adjustments ............................................................................................. 2 Table 1-2: Current Fixed Rate Structure ($/Month) ...................................................................................................... 3 Table 1-3: Current Commodity Rate Structure (Monthly, $/ccf) ................................................................................... 4 Table 1-4: Proposed Fixed Charge ($/Month) .............................................................................................................. 4 Table 1-5: Proposed Volumetric Rates ($/ccf) .............................................................................................................. 4 Table 1-6: Proposed Five-Year Wastewater Rate Schedule ........................................................................................ 5 Table 1-7: Non-Residential Monthly Bill Impacts .......................................................................................................... 7 Table 4-1: Current Wastewater Monthly Service Charges ......................................................................................... 12 Table 4-2: Current Wastewater Volumetric Charges (Monthly, $/ccf) ........................................................................ 12 Table 4-3: Projected Billed Consumption Under Existing Rate Structure .................................................................. 13 Table 4-4: Wastewater Enterprise Inflationary Assumptions ...................................................................................... 13 Table 4-5: Additional Wastewater Enterprise Financial Assumptions ........................................................................ 14 Table 4-6: Projected Wastewater Accounts ................................................................................................................ 14 Table 5-1: Projected Rate Revenues at Existing Rates ............................................................................................. 15 Table 5-2: Projected O&M Expenses ......................................................................................................................... 16 Table 5-3: Capital Improvement Plan ......................................................................................................................... 17 Table 5-4: Projected Reserve Targets ........................................................................................................................ 18 Table 5-5: Proposed Wastewater Revenue Adjustments ........................................................................................... 18 Table 6-1: FY 2022-23 Wastewater Revenue Requirement ....................................................................................... 22 Table 6-2: Allocation of Functions to Wastewater Cost Causation Components ....................................................... 23 Table 6-3: Allocation of O&M Expenses by Function and Cost Causation Component ............................................. 24 Table 6-4: Summary of Capital Assets by Functional Category ................................................................................. 25 Table 6-5: Allocation of Assets to Cost Causation Components ................................................................................ 25 Table 6-6: Allocation of Capital Assets by Function and Cost Causation Component ............................................... 26 Table 6-7: Return to Sewer Factors for Non-Residential Customers ......................................................................... 27 Table 6-8: Plant Balance Calculation .......................................................................................................................... 27 Table 6-9: FY 2022-23 Units of Service ...................................................................................................................... 28 Table 6-10: Derivation of Wastewater Unit Costs by Cost Component ...................................................................... 29 Table 6-11: Wastewater Cost Allocation to Customer Classes .................................................................................. 31 Table 7-1:Derivation of the Fixed Charge ................................................................................................................... 32 Table 7-2: Proposed Monthly Fixed Service Charge Calculation ............................................................................... 33 Table 7-3: Proposed Volumetric Rate Calculation ...................................................................................................... 34 Table 7-4: Proposed Five-Year Monthly Wastewater Rate Schedule ........................................................................ 35 15 CITY OF SAN CLEMENTE
List of Figures
Figure 1-1: Wastewater Enterprise Capital Improvement Plan .................................................................................... 2 Figure 1-2: Wastewater Operating Financial Plan ........................................................................................................ 3 Figure 1-3: Single Family Residential Monthly Wastewater Bill Impacts ...................................................................... 6 Figure 1-4: Multi-Family Monthly Wastewater Bill Impacts ........................................................................................... 6 Figure 1-5:Percentage of Customers by Customer Class ............................................................................................ 8 Figure 5-1: Projected Ending Balances ...................................................................................................................... 19 Figure 5-2: Operating Wastewater Financial Plan ...................................................................................................... 20 Figure 8-1: Single Family Residential Monthly Wastewater Bill Impacts .................................................................... 36 Figure 8-2: Multi-Family Monthly per Dwelling Unit Wastewater Bill Impacts ............................................................ 37 Figure 8-3: Non-Residential Monthly Wastewater Bill Impacts ................................................................................... 37 16 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY List of Abbreviations
ADA: Average Daily Attendance
AF: Acre-feet
AFY: Acre-feet per year
AWWA: American Water Works Association
AWPF: Advance Water Purification Facility
BOD: Biological Oxygen Demand
CCF: One hundred cubic feet
CIP: Capital Improvement Plan
City: City of San Clemente
COS: Cost of Service
CPI: Consumer Price Index
FY: Fiscal year
GPCD: Gallons per capita per day
GPM: Gallons per minute
GW: Groundwater
HCF: One hundred cubic feet
K: Thousand
Lbs: Pounds
M: Million
Manual M1: American Water Works Association’s Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition
Max Day: Maximum day water demand
Max Hour: Maximum hour water demand
MG: One million gallons
Mg/L: Milligrams per Liter
MGD: One million gallons per day
NPDES Permit: National Pollutant Discharge Elimination System Permit O&M: Operations and maintenance
PPM: Parts per million
R&R: Repair and replacement
RCLD: Replacement cost less depreciation
SCADA: Supervisory control and data acquisition
SRF Loan: Clean Water State Revolving Fund Loan
SS: Suspended Solids
Study Period: the rate-setting period of this study extends through fiscal year 2025-26 WWTP: Wastewater treatment plant
17 CITY OF SAN CLEMENTE
This page was intentionally left blank to facilitate two-sided printing. 18 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 1

1. Executive Summary

1.1. Study Overview
The City of San Clemente (City) last updated wastewater rates in 2015. The City engaged Raftelis to conduct a wastewater cost-of-service study to establish a proposed five-year rate schedule from FY 2022-23 to FY 2026- 27, which is known as the study period. Note that proposed rates cannot be implemented until formally adopted by the City after a public hearing, absent a majority protest by parcels served by the City. Proposition 218 requires that City customers be mailed a public hearing notice detailing proposed rate changes a minimum of 45 days before the public hearing.

The study’s major objectives are to:
 Develop a ten-year financial plan that sufficiently funds the City’s wastewater operations and maintenance (O&M) expenses, and capital expenditures while adequately funding reserves.  Conduct a cost-of-service analysis that establishes a clear nexus between the cost to serve wastewater customers and the rates charged to customers, per Proposition 218 and industry standards.  Develop a five-year schedule of wastewater rates that are fair and equitable.

1.2. Rate Study Process
This study was conducted using industry-standard principles outlined by the Water Environment Federation’s Financing and Charges for Wastewater Systems. The overall process outlined below describes the process to develop wastewater rates.

1. Financial Plan: Develop cash flow projections for the Wastewater Enterprise to determine the amount of revenue required from wastewater rates.

2. Cost of Service Analysis: Allocate costs to system components and then to various customer classes based on user characteristics.

3. Rate Design: Calculate rates that generate sufficient revenues based on the results of the financial plan and cost-of-service analysis and communicate the policy preferences of the agency.

4. Report Preparation: Develop a report to document the study results.

5. Rate Adoption: Proposed rates may be adopted by City Council after holding a public hearing in accordance with Proposition 218's requirements.

1.3. Proposed Wastewater Financial Plan
Raftelis conducted a status quo cash flow analysis (without rate adjustments) to evaluate whether existing wastewater rates will adequately fund the Wastewater Enterprise’s various expenses over the rate-setting period.

Raftelis projected that, without rate increases during the five-year study period, the Wastewater Enterprise’s reserves will fall below the target reserve policy by FY 2023-24, and deplete cash reserves by FY 2025-26. This demonstrates a need for revenue adjustments for the Wastewater Enterprise. Raftelis worked closely with City staff to develop the following schedule of proposed revenue adjustments over the five-year study period (see Table 1-1). The proposed revenue adjustments shown in Table 1-1 promote a self-funding utility that meets 19 2 CITY OF SAN CLEMENTE
reserve policies in the long term. The financial plan, in this report, assumes rates will be implemented on January 1, 2023. The City is delayed in implementing rates. Therefore, the financial plan depicted in this report is outdated1, however the rates are based on the City’s cost of serving wastewater, therefore the cost of service and rate design is unaffected.

Table 1-1: Proposed Wastewater Revenue Adjustments
Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Effective Date January 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Revenue Adjustment 9.5% 6% 5% 5% 4.5%
Key factors influencing the need for proposed Wastewater Enterprise revenue adjustments include:
 Inflation: Operating costs continue to increase from year to year due to inflationary factors.  Planned capital expenditures: CIP projects through FY 2026-27 are shown in Figure 1-1 and include substantial repair and replacement (R&R) capital projects.

Figure 1-1 shows the proposed CIP financing plan over the study period. As proposed, the CIP is funded by cash reserves and rate revenue.

Figure 1-1: Wastewater Enterprise Capital Improvement Plan Figure 1-2 shows the Wastewater Enterprise operating financial plan. Revenues under the proposed and current rates are shown by the solid and dashed black lines, respectively. Revenue requirements including O&M 1 The City will receive less revenue than shown since the rates are delayed, and therefore reserve balances are expected to be lower.
$2.5
$2.1
$3.0
$4.4
$3.9
$0
$1
$1
$2
$2
$3
$3
$4
$4
$5
$5
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027
Millions
Capital Funding Sources
Debt Funded Rates/Reserves Funded
20 ■ ■
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 3 expenses, and CIP are represented by the stacked bars. Revenue adjustments (black dashed line) are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

Figure 1-2: Wastewater Operating Financial Plan

1.4. Current and Proposed Wastewater Rates
The City’s wastewater rate structure currently consists of a combination of fixed and volumetric charges. The City’s existing rate structure is shown below in Table 1-2 and Table 1-3.

Table 1-2: Current Fixed Rate Structure ($/Month)
Meter Size Fixed Charge
up to 1" $23.82

1.5" $78.60
2" $126.62
3" $262.02
4" $404.92
6" $793.18
-$4
-$2
$0
$2
$4
$6
$8
$10
$12
$14
$16
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027
Millions
Operating Financial Plan
Operating Expenses Debt Service Rate Funded Capital
Net Cashflow Current Revenue Proposed Revenue
21 -
- - -
-
4 CITY OF SAN CLEMENTE
Table 1-3: Current Commodity Rate Structure (Monthly, $/ccf) Customer Class Rate
Residential
Single-Family Residential $1.44
Multi-Family Residential $1.44
Commercial
Low Strength $1.97
Medium Strength $2.58
Medium-High Strength $4.57
High Strength $6.38
Mixed Use $2.61
Table 1-4 shows the proposed fixed charge.

Table 1-4: Proposed Fixed Charge ($/Month)
Meter Size Rate
up to 1” $26.15

1.5” $50.78
2” $80.35
3” $173.97
4” $311.93
6” $642.05
Table 1-5 shows the proposed monthly volumetric rates.

Table 1-5: Proposed Volumetric Rates ($/ccf)
Customer Class Rate
Residential
Single Family Residential $3.05
Multi-Family Residential $3.04
Non-Residential
Low Strength (Includes Schools) $1.28
Medium Strength $2.73
Medium-High Strength $4.27
High Strength $7.17
Mixed Use (Comm & Residential) $2.56
Table 1-6 shows proposed 5-year wastewater rates and charges. This report establishes rates for FY 2022-23 using a cost-of-service analysis and escalates rates for future years by the revenue adjustments shown in Table 1-1.
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2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 5 Table 1-6: Proposed Five-Year Wastewater Rate Schedule
(A) (B) (C) (D) (E) (F) (G) (H)
Line Customer Class Current
Rate
FYE
2023
FYE
2024
FYE
2025
FYE
2026
FYE
2027
1 Fixed Rates
2 up to 1" $23.82 $26.15 $27.72 $29.10 $30.56 $31.93
3 1.5" $78.60 $50.78 $53.83 $56.52 $59.35 $62.02
4 2" $126.62 $80.35 $85.17 $89.43 $93.90 $98.12
5 3" $262.02 $173.97 $184.40 $193.62 $203.31 $212.45
6 4" $404.92 $311.93 $330.64 $347.18 $364.54 $380.94
7 6" $793.18 $642.05 $680.58 $714.61 $750.34 $784.10
8 Commodity Rates
9 Single Family Residential $1.44 $3.05 $3.23 $3.39 $3.56 $3.72 10 Multi-Family Residential $1.44 $3.04 $3.23 $3.39 $3.56 $3.72 11 Low Strength (Includes Schools) $1.97 $1.28 $1.36 $1.42 $1.50 $1.56 12 Medium Strength $2.58 $2.73 $2.90 $3.04 $3.19 $3.34
13 Medium-High Strength $4.57 $4.27 $4.52 $4.75 $4.99 $5.21 14 High Strength $6.38 $7.17 $7.60 $7.98 $8.38 $8.75
15 Mixed Use (Comm &
Residential) $2.61 $2.56 $2.71 $2.85 $2.99 $3.13

1.5. Monthly Bill Impacts
Figure 1-3 shows a sample monthly wastewater bill for Single Family residential customers under current rates and proposed rates.
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6 CITY OF SAN CLEMENTE
Figure 1-3: Single Family Residential Monthly Wastewater Bill Impacts Figure 1-4 shows monthly wastewater bill impact for an average Multi-Family customer with at 2” meter. The average monthly bill for Multi-Family customers will increase due to the proposed changes to the rate structure.

Figure 1-4: Multi-Family Monthly Wastewater Bill Impacts 11 ccf
Current Bill $36.78
Proposed Bill $41.38
Proposed Bill Impact ($) $4.60
Proposed Bill Impact (%) 12.5%
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Monthly SFR Impacts at Different Usage Levels up to 1" Meter 56 ccf
Current Bill $199.37
Proposed Bill $203.83
Proposed Bill Impact ($) $4.46
Proposed Bill Impact (%) 2.2%
$0
$50
$100
$150
$200
$250
Multi-Family Monthly Impacts at Different Usage Levels - 2" Meter 24 ■
■
■
■
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 7 Table 1-7 shows monthly wastewater bill impacts for commercial customers with 1” and 2” meters, assuming average wastewater discharge for each meter size. The average bill for 2” meters are decreasing because a large component of a customer’s bill is the fixed charge, which depends on a customer’s meter size. This study propose to change the fixed charge by meter size so that they are in proportion with the current hydraulic capacity for each meter size according to the American Water Works Association (AWWA). It is standard practice to use the AWWA hydraulic capacity ratios to calculate fixed charges. The ratios are lower than the current ratios, causing the fixed charge for larger meters to decrease.

Table 1-7: Non-Residential Monthly Bill Impacts
Customer Class Current Bill Proposed Bill Difference ($) Low
1" $37.74 $34.19 $3.55
2" $179.87 $110.10 ($68.76)
Medium
1" $67.74 $70.06 $2.32
2" $248.64 $202.35 ($46.29)
Med-High
1" $93.28 $87.41 $5.87
2" $406.08 $326.81 ($79.27)
High
1" $186.13 $198.38 $12.25
2" $588.46 $570.40 ($18.06)
Mixed Use
1" $41.01 $42.08 $1.07
2" $158.92 $110.27 ($48.65)
Figure 1-5 shows that approximately 88% of customers are single family residential and multi-family residential and 12% are commercial customers (low, medium, medium high, and high). 25 8 CITY OF SAN CLEMENTE
Figure 1-5:Percentage of Customers by Customer Class
26 Current Wastewater Billled Flow (ccf) %
■ Single Family Residential
■ Medium Strength
■ Mixed Use

0.42% 2.37% 0.05%

3.38%
■ Multi Family Residential
■ Medium-High Strength
■ Low Strength
■ High Strength
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 9

2. Introduction

2.1. City of San Clemente Wastewater System
The City’s wastewater department provides wastewater service to approximately 16,600 customers and has approximately 180 miles of sewer lines. The City has a water reclamation plant that has been in operation since 1991. The water reclamation plant collects and treats on average 3.5 MGD of wastewater. Wastewater treatment goes through 5 processes, described below:
 Preliminary Treatment – removes grit, rags, and other inorganic heavy debris  Primary Settling – settles the heavier organic solids  Aeration (Activated Sludge) – aerobic bacteria consumes smaller organics called suspended solids (TSS) or biological oxygen demand (BOD)
 Secondary Settling - settles out microorganisms in the activated sludge that consumes the TSS  Tertiary Filtration – filters out remaining waste particles through sand filtration

2.2. Study Overview
The City annually reviews its wastewater rates based on the current year’s budget and a five-year financial forecast. The last rate update occurred in 2016. This study provides a five-year rate setting approach instead of annually reviewing rates. By using the cost-of-service (COS) principles as outlined in the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems, 2004., the proposed rates outlined in this report are based on class flows and strength loadings.

The City engaged Raftelis in 2018 to conduct a wastewater cost of service study to establish a proposed fiveyear wastewater rate schedule from FY 2022-23 to FY 2026-27. The implementation of these rates is delayed until July 2023 (which is the start of FY 2023-24) and therefore the financial plan depicted in this study is outdated, however the proposed rates are based on cost-of-service principles. Note that proposed rates cannot be implemented until formally adopted by the City Council after a public hearing. Proposition 218 requires that City customers must be mailed a public hearing notice detailing any proposed rate changes no fewer than 45 days before the public hearing. The notice explains a customer’s right to protest the rate proposal.

Study Objectives
The study’s major objectives are to:
 Develop a ten-year financial plan that sufficiently funds the City’s wastewater operations and maintenance (O&M) expenses, debt service payments, and capital expenditures while adequately funding reserves and achieving debt coverage requirements.  Conduct a cost-of-service analysis that establishes a clear nexus between the cost to serve wastewater customers and the rates charged to customers, per Proposition 218 and industry standards.  Review the City’s existing wastewater rate structure to ensure that proposed rates are cost based and achieve policy objectives.
 Develop a five-year schedule of wastewater rates that are fair, equitable, and compliant with Proposition 218 requirements.
27 10 CITY OF SAN CLEMENTE

3. Legal Requirements and
Rate Setting Methodology

3.1. Legal Requirements
California Constitution - Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water and wastewater service are as follows:

1. A property-related charge (which includes water or wastewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of the property.

5. A written notice of the proposed charge shall be mailed to both the customer of record and owner of record of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.

Raftelis follows industry standard rate setting methodologies established by the Water Environment Federation (WEF) and described in Financing and Charges for Wastewater Systems.

3.2. Rate-Setting Methodology
This study was conducted using industry-standard principles outlined by WEF’s Financing and Charges for Wastewater Systems. The process and approach Raftelis utilized in the study to determine rates is informed by the City’s policy objectives, the current system of rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plans, cost of service analyses, and rate design process follow five steps, outlined below, to determine proposed rates that fulfill the City’s objectives, meet industry standards, and comply with relevant regulations.

1. Financial Plan: The first step is to develop a multi-year financial plan that projects the Wastewater Enterprises’ revenues, expenses, capital project financing, annual debt service, and reserve funding. The financial plan is used to determine revenue adjustments needed to recover adequate revenues to fund expenses and reserves.

2. Revenue Requirement Determination: After completing the financial plan, the rate-making process determines the revenue requirement for the test year, also known as the cost-of-service year. The test year for this study is FY 2022-23. The revenue requirement should sufficiently fund the Wastewater 28 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 11 Enterprise’s operating costs, annual debt service (including coverage requirements), capital expenditures, and reserve funding needs.

3. Cost of Service Analysis: The annual cost of providing wastewater service (i.e., the revenue requirement) is then distributed to customer classes commensurate with their use of and burden on the system. A cost-of-service analysis involves the following steps:
» Functionalization of costs – the different components of the revenue requirement are categorized into functions such as collection, treatment, customer service, etc. » Allocation to cost causation components – the functionalized costs are then allocated to cost causation components such as flow, strength, etc.
» Development of unit costs – unit costs for each cost causation component are determined using units of service
» Distribution of cost components – the cost components are allocated to each customer class using the unit costs in proportion to their demand and burden on the system.

A wastewater cost of service analysis considers the amount of wastewater treatment plant influence contributed by each customer class to account for customer differences in the quantity and strength of wastewater discharges.

4. Rate Design: After allocating the revenue requirement to each customer class, we design rates. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should support and optimize the City of San Clemente’s policy objectives. Rates also act as a public information tool in communicating policy objectives to customers. This process also includes a bill impact analysis.

5. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop a report in conjunction with the rate adoption process. The report documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological report serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.
29 12 CITY OF SAN CLEMENTE

4. Inputs and Assumptions
Raftelis developed a wastewater rate model in Microsoft Excel to project the financial plan over the next ten fiscal years with projections shown in this section through the five-year rate-setting period from FY 2022-23 to FY 2026-27 (i.e., the “study period”). The City’s fiscal year spans from July 1 through June 30. Projections in future years were made based on estimated FY 2021-22 data using assumptions outlined below. Assumptions were discussed with and reviewed by City staff. Note that most values shown throughout this report are rounded to the last digit shown and excel does not round – therefore a reader, doing calculations with a calculator may get slightly different results.

4.1. Current Wastewater Rates
Table 4-1, Table 4-2, and Table 4-3 show the current wastewater rates, which were developed during the prior rate update in 2016. As shown, there is a fixed service charge by meter size, and each customer class is charged a volumetric charge per hundred cubic feet (ccf).

Table 4-1: Current Wastewater Monthly Service Charges
Meter Size Rate
up to 1" $23.82

1.5" $78.60
2" $126.62
3" $262.02
4" $404.92
6" $793.18
Commercial customer rates vary based on the strength of sewer discharged from each commercial customer class. Currently, the City classifies its non-residential users into five commercial groups based on the wastewater strength of each class.

Table 4-2: Current Wastewater Volumetric Charges (Monthly, $/ccf) Customer Class Rate
Residential
Single-Family Residential $1.44
Multi-Family Residential $1.44
Commercial
Low Strength $1.97
Medium Strength $2.58
Medium-High Strength $4.57
High Strength $6.38
Mixed Use $2.61
All customers pay a monthly fixed charge plus a volumetric charge based on actual water use each billing period. A return to sewer factor of 90% is applied to single family customer average water use from October through March. This water use is the basis for the sewer charge for the next 12-month period. The sewer use for all other customers is 90% of the use in the current period. The return to sewer factor is a factor that considers water used for irrigation or otherwise is not discharged to the sewer. 30 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 13

4.2. Projected Billed Wastewater Use Under Current Rate Structure
City staff provided Raftelis with total annual wastewater use data by customer class for FY 2018-19. Raftelis worked closely with City staff to develop wastewater billed consumption projections over the study period.

Table 4-3 shows projected billed consumption for FY 2023 and the study assumes a constant flow over the study period. Total water use is shown in hundred cubic feet (ccf). The below wastewater discharges we used to estimate current revenue.

Table 4-3: Projected Billed Consumption Under Existing Rate Structure Customer Class FY 2023
Billed Flow (ccf)
Residential
Single Family Residential 1,415,221
Multi-Family Residential 494,086
Non-Residential
Low Strength (Includes Schools) 122,691
Medium Strength 73,336
Medium-High Strength 9,006
High Strength 51,421
Mixed Use (Comm & Residential) 1,079
Total Billed Flow 2,166,840

4.3. Wastewater Enterprise Financial Assumptions
Raftelis and City Staff developed inflationary assumptions as shown in Table 4-4 which are used to escalate operations and maintenance (O&M) expenses) beyond FY 2022-23. Salary and benefit inflationary increases were verified by City staff, as wastewater utility personnel cost increases are typically agency specific. The capital inflation factor is used to adjust uninflated capital project cost to reflect future year costs.

Table 4-4: Wastewater Enterprise Inflationary Assumptions (A) (B) (C) (D) (E) (F)
Escalation Factor FY 2024 FY 2025 FY 2026 FY 2027
General Budget 7.0% 5.0% 2.5% 2.5%
Salary Budget 3.0% 3.0% 3.0% 3.0%
Benefits Budget 5.0% 5.0% 5.0% 5.0%
General Utilities Budget 5.0% 4.0% 3.0% 3.0%
Power Budget 5.0% 5.0% 5.0% 5.0%
Capital Budget 7.0% 5.0% 3.2% 3.2%
Non-Inflated 0.0% 0.0% 0.0% 0.0%
Raftelis calculated interest earnings using the interest rate shown in Table 4-5. 31 -
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14 CITY OF SAN CLEMENTE
Table 4-5: Additional Wastewater Enterprise Financial Assumptions Escalation Factor
Annual Reserve Interest Rate 1.0%

4.4. Projected Wastewater Number of Accounts
Table 4-6 shows the projected number of wastewater accounts. Wastewater account growth projections are needed to estimate wastewater rate revenues over the study period. City staff provided Raftelis with the number of accounts by customer class for FY 2018-19. As shown the Study assumes no account growth.

Table 4-6: Projected Wastewater Accounts
(A) (B) (C) (D) (E) (F)
Customer Class FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 Account Growth Factors
Single Family Residential 0% 0% 0% 0% 0%
Multi-Family Residential 0% 0% 0% 0% 0%
Commercial 0% 0% 0% 0% 0%
Number of Accounts
Single Family Residential 12,012 12,012 12,012 12,012 12,012 Multi-Family Residential 3,658 3,658 3,658 3,658 3,658
Commercial 881 881 881 881 881
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2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 15

5. Wastewater Financial Plan
Section 5 details the proposed Wastewater Enterprise financial plan. The following subsections estimate annual revenues, O&M expenses, capital expenditures, and reserve funding through FY 2026-27. The financial plan's overall purpose is to determine annual wastewater rate revenue requirements to achieve adequate cash flow, maintain sufficient reserves, and meet debt coverage requirements if applicable.

5.1. Wastewater Revenue at Existing Rates
The Wastewater Enterprise’s revenue consists of wastewater rates, connection fees, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current FY 2021-22 wastewater rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any wastewater rate increases. This status quo scenario provides a baseline from which Raftelis evaluated the need for revenue adjustments (i.e., gross rate revenue increases).

Calculated Wastewater Rate Revenues
Raftelis projected annual wastewater rate revenues based on current FY 2021-22 wastewater rates (from Table 4-1 and Table 4-2) and projected number of accounts (from Table 4-6). Table 5-1 shows projected wastewater rate revenues under current rates, calculated as follows:

Fixed Charge Revenue = [ FY 2022-23 monthly charge] × [Number of accounts] × [12 Bills per year] Variable Rate Revenue = [ FY 2022-23 volumetric unit rate] × [wastewater discharge] The revenue in Table 51 decreases because the City expects that wastewater flow will decrease by 1.5% each year.

Table 5-1: Projected Rate Revenues at Existing Rates
(A) (B) (C) (D) (E) (F)
Customer Class FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 Fixed Charge Revenues
Total Fixed Charge Revenue (All
Customer Classes) $5,589,204 $5,589,204 $5,589,204 $5,589,204 $5,589,204 Commodity Rate Revenues
Single-Family Residential $2,037,918 $2,007,349 $1,977,239 $1,947,581 $1,918,365 Multi-Family Residential $711,484 $700,812 $690,299 $679,945 $669,746 Commercial $802,945 $790,901 $779,038 $767,351 $755,842 Total Commodity Rate Revenue $3,552,347 $3,499,062 $3,446,576 $3,394,877 $3,343,953 Total Revenue $9,141,551 $9,088,266 $9,035,780 $8,984,081 $8,933,157 33 - -
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16 CITY OF SAN CLEMENTE

5.2. Wastewater Enterprise Operations & Maintenance
Expenses
Table 5-2 shows a summary of Wastewater Enterprise O&M expenses over the study period. O&M expenditures include the cost of operating and maintaining wastewater collection, treatment, disposal facilities, and other administrative costs. FY 2022-23 O&M expenses were provided by City Staff in current dollars and for future years was adjusted for inflation, based on inflationary assumptions shown in Table 4-4.

Table 5-2: Projected O&M Expenses
Expense FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027
Administration $1,560,470 $1,651,378 $1,726,334 $1,776,335 $1,827,890 Collection $2,364,463 $2,481,822 $2,585,569 $2,667,428 $2,752,100 Treatment $4,263,395 $4,477,586 $4,658,951 $4,789,684 $4,924,629 Total Operating
Expenditures $8,188,328 $8,610,786 $8,970,854 $9,233,447 $9,504,619

5.3. Wastewater Enterprise Capital Improvement Plan
Table 5-3 shows the proposed capital improvement plan. The City expects to spend approximately $15 million on capital projects over the study period, highlighting the need to maintain adequate reserves and preserve its wastewater collection and treatment system through regular repairs. The CIP shown below assumes a 70% execution factor – which decreases the total CIP for two reasons: 1) to lower customer bills and 2) account for the fact that projects often take longer than anticipated. 34 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 17 Table 5-3: Capital Improvement Plan
(A) (B) (C) (D) (E) (F) (G)
Line CIP Project FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 WRP Electrical System
Replacements $700,000 $175,000 $1,050,000 $0 $1,500,000 2 Los Molinos Lift Station Generator
Replacement $350,000 $0 $0 $0 $0
3 WRP Odor Control Systems
Replacement $0 $0 $0 $3,150,000 $0
4 Cypress Shores PS Force Main
Rehabilitation $140,000 $560,000 $0 $0 $0
5 Recycled Water Storage Bay
Rehabilitation $0 $140,000 $840,000 $0 $0
6 Primary Clarifier 1, 2 & 3
Rehabilitation $350,000 $0 $0 $0 $0
7 Secondary Clarifier 1, 2 & 3
Rehabilitation $0 $0 $0 $420,000 $0
8 Secondary Clarifier 4, 5 & 6
Rehabilitation $0 $0 $0 $420,000 $0
9 Digester #2 Structural & Mechanical
Rehabilitation $350,000 $0 $0 $0 $0
10 WRP DIP Replacement $175,000 $700,000 $0 $0 $0
11 Sewer System Rehabilitation $210,000 $210,000 $210,000 $210,000 $0 12 Sewer System Lining $175,000 $175,000 $175,000 $175,000 $0 13 Los Molinos Wet Well Lining $0 $140,000 $560,000 $0 $0 14 Sewer Asset Management $35,000 $0 $0 $0 $0
15 WRP and Sewer Facility Pavement
Rehabilitation $0 $0 $140,000 $0 $0
16 WRP DIP Replacement $2,300,000
17 Total $2,485,000 $2,100,000 $2,975,000 $4,375,000 $3,800,000 The City plans to fund all its CIP projects with cash reserves generated from rates (i.e. pay-as-you-go).

5.4. Wastewater Enterprise Financial Policies
Reserve Targets
The City has an operating reserve to provide funds to meet ongoing cash flow requirements related to operating expenses. The current operating reserve target is equal to 12% of annual O&M expenses. It is also common to have capital reserves to provide available funds for CIP projects. The City currently has a formal capital reserve policy, of the average CIP over three years. Table 5-4 shows projected operating and capital reserve targets. Rate setting is informed by these reserve targets.
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18 CITY OF SAN CLEMENTE
Table 5-4: Projected Reserve Targets
Reserve Target FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Operating Reserve $1,364,721 $1,435,131 $1,495,142 $1,538,908 $1,584,103 Capital Reserve $2,520,000 $3,150,000 $3,743,513 $4,045,360 $3,880,540 Total $3,884,721 $4,585,131 $5,238,656 $5,584,268 $5,464,643

5.5. Proposed Wastewater Financial Plan
The Wastewater Enterprise must increase its revenues from wastewater rates over the study period to adequately fund its operating and capital expenditures and maintain sufficient reserve funding. Raftelis worked closely with City staff to identify financial plan options for the City’s consideration. The selected proposed annual revenue adjustments are shown in Table 5-5. Revenue adjustments represent annual percentage increases in total rate revenue relative to rate revenue generated by the prior year’s wastewater rates. The City is delayed in implementing the revenue adjustments shown below, therefore the financial plan is outdated.

However, the City can adjust capital spending to account for the delay.

Table 5-5: Proposed Wastewater Revenue Adjustments
Description FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 Effective Date January 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Revenue
Adjustment 9.5% 6.0% 5.0% 5.0% 4.5%
Figure 5-1 shows the Wastewater Enterprise’s projected ending balances for all reserves which include the operating reserve, the sewer depreciation reserve, and the sewer connection fee reserve with the proposed revenue adjustments. As mentioned previously, the City is delayed in implementing rates and therefore the projections below are outdated. The City can modify capital spending to adjust for the delayed rate increases.

The bars indicate the ending balance. The total reserve target is represented by the green dashed line; the minimum reserve target for the operating reserve is represented by the blue line. 36 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 19 Figure 5-1: Projected Ending Balances
Figure 5-2 shows the financial plan – which compares revenue to expenses. Revenues under the proposed financial plan and status quo financial plan are represented by the solid and dashed black lines, respectively.

Revenue requirements including O&M expenses, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses over the study period.
$4.9
$5.5
$5.2
$3.6
$2.8
$0
$1
$2
$3
$4
$5
$6
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027
Millions
Operating & Capital Reserves
Operating & Capital Reserve Operating Reserve Oper + Capital Reserve 37 ----
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20 CITY OF SAN CLEMENTE
Figure 5-2: Operating Wastewater Financial Plan
$10.6 $11.1
$11.8 $12.4 $13.1
-$2
$0
$2
$4
$6
$8
$10
$12
$14
$16
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027
Millions
Operating Financial Plan
Operating Expenses Rate Funded Capital Net Cashflow
Current Revenue Proposed Revenue
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2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 21

6. Wastewater Cost of Service
Analysis
The Cost of Service (COS) analysis allocates the overall rate revenue requirement to customer classes based on their use of and cost causation to the wastewater system. The COS provides the basis for the proposed wastewater rates through FY 2026-27.

6.1. Methodology
The methodology used to develop the COS analysis and to apportion the revenue requirement to user classes is informed by the WEF’s Manual of Practice (MOP) No. 27 Financing and Charges for Wastewater Systems. COS analyses are specific to each wastewater system. There are three distinct steps in every COS analysis to recover costs from customers in an accurate, equitable, and defensible manner:

1. Cost functionalization: O&M expenses and capital assets are categorized by their function in the wastewater system. Sample functions may include collection, treatment, and customer service, among others.

2. Allocation to Cost Components: Functionalized costs are then allocated to cost causation components based on their burden on the wastewater system. The cost causation components include flow, biological oxygen demand (BOD), and suspended solids (SS), among other specific cost components.

The revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Distribution of Cost Components to Each Class: Costs are distributed to each customer class using unit cost causation components (Flow, BOD and TSS) which are multiplied by the sewer discharge and strength for each class. This analysis estimates the burden each customer class places on the wastewater system.

6.2. Wastewater Rate Revenue Requirement
The first step in a COS analysis is to determine the revenue required from wastewater rates. The total revenue requirement results from the wastewater financial plan outlined in Section 5, and is shown in Table 6-1. Table 6-1 shows the wastewater rate revenue requirement for FY 2022-23 (Test Year). The revenue requirement is split into operating and capital categories which are later allocated based on O&M expenses and capital assets.

The revenue requirements (Lines 2-5) include projected FY 2022-23 O&M expenses and rate-funded CIP expenditures. The revenue offsets (Lines 9-13) include all non-rate revenues which reduce rates because these revenues are applied as offsets to the final rate revenue requirement. The adjustment for cash balance (Line 17) is equal to FY 2022-23 negative net operating cash flow under the proposed financial plan, and accounts for the drawdown of operating reserves in FY 2022-23. All values are from the proposed wastewater financial plan operating cash flow. The final rate revenue requirement (Line 21) is calculated as follows:

Total revenue required from rates (Line 21) = Revenue requirements (Line 6) - Revenue offsets (Line 14) - Adjustments (Line 19)
39 22 CITY OF SAN CLEMENTE
Table 6-1: FY 2022-23 Wastewater Revenue Requirement
(A) (B) (C) (D) (E)
Line Cost Operating Capital Total
1 Revenue Requirement
2 Administration $1,560,470 $0 $1,560,470
3 Collection $2,364,463 $0 $2,364,463
4 Treatment $4,263,395 $0 $4,263,395
5 Cash Funded Capital Projects $0 $2,485,000 $2,485,000 6 Subtotal Operating Costs $8,188,328 $2,485,000 $10,673,328 7 8 Less: Revenue Offsets
9 Interest $230,000 $0 $230,000
10 Fees $6,000 $0 $6,000
11 Grants $67,881 $0 $67,881
12 Miscellaneous $2,000 $0 $2,000
13 Revenue from SMWD $794,761 $0 $794,761
14 Total Revenue Offsets $1,100,641 $0 $1,100,641
15 16 Less: Adjustments
17 Adjustment for Cash Balance ($3,089) $0 ($3,089)
18 Adjustment for Mid-Year Increase ($434,224) $0 ($434,224) 19 Total Adjustments ($437,312) $0 ($437,312)
20 21
Total Revenue Requirement from
Rates $7,524,998 $2,485,000 $10,009,998

6.3. Functionalization and Allocation of Expenses to Cost Components
After determining the revenue requirement, the next step of the wastewater COS analysis is to allocate O&M expenses and capital assets to the following functions:
 Collection: costs related to the system of collection and transport of wastewater discharges from customers to the wastewater treatment plant
 Treatment: costs associated with the wastewater treatment facilities to treat wastewater to tertiary standards and disposal
 Customer: costs of billing, revenue collections, and other customer services functions  General: costs for general administration and operational expenses or any other costs that do not clearly relate to another functional category (i.e., indirect costs) The functionalization helps allocate costs to each of the cost causation components. Some cost causation components correspond directly to the functions listed above. The cost causation components include:
 Flow: costs that vary based on the quantity of wastewater generated  Biochemical Oxygen Demand: costs that vary based on the BOD strength parameter of wastewater; Biochemical oxygen demand is a measure of wastewater strength based on the amount of organic matter contained in wastewater prior to treatment and measured in milligrams per liter (mg/L) or parts per 40 - --
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2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 23 million (ppm). The more organic matter in the wastewater, the more oxygen the microorganisms needed to utilize the matter in the wastewater.
 Suspended Solids: costs that vary based on the SS strength parameter of wastewater; Suspended Solids are a measure of wastewater strength based on the amount of solid particles in suspension in wastewater prior to treatment also generally expressed in milligrams per liter (mg/L) or parts per million (ppm).  Customer: costs directly associated with the Customer function.  General: costs directly associated with the General function

6.3.1. FUNCTIONALIZATION AND ALLOCATION OF O&M COSTS
Raftelis worked with City staff to assign wastewater O&M expenses by line item to each function. As stated above, this intermediate step is necessary to allocate wastewater O&M expenses to individual cost causation components. Appendix A shows the functionalization of wastewater expenses by expense category.

Table 6-2 shows the allocation of functionalized costs to the various cost causation components. This provides the basis for allocating O&M and capital expenses in the following subsections. The Wastewater Collection function is allocated entirely to the collection cost causation component because these are collection-related costs. The remaining lines show how each function is allocated to each cost component: for example, 100% of grit removal and primary settling costs are allocated to flow because these facilities are sized based on flow.

Table 6-2: Allocation of Functions to Wastewater Cost Causation Components (A) (B) (C) (D) (E) (F) (G) (H)
Line O&M Function Collection BOD TSS Customer
Billing General Total
1 Collection 100% 0% 0% 0% 0% 100%
2 Grit Removal/Primary
Settling 0% 0% 100% 0% 0% 100%
3 Aeration 0% 100% 0% 0% 0% 100%
4 Secondary Settling 0% 100% 0% 0% 0% 100%
5 Residuals Processing &
Disposal (sludge) 0% 49% 51% 0% 0% 100%
6 General 0% 0% 0% 11% 89% 100%
Using the percentages from Table 6-2, Table 6-3 shows the allocation of FY 2022-23 O&M expenses by function to each cost causation component. The total dollar amount allocated to each cost causation component is determined by multiplying the total expense (Column H) by the corresponding percentage allocation for each cost component shown in Table 6-2. The bottom of the table shows the percentages that are used to allocate the total O&M revenue requirement to the cost components.

For example, (Column C, Line 1) total wastewater collection cost is determined by multiplying the total dollar amount of O&M costs allocated to wastewater collection from Column H, Line 1 by the corresponding cost causation factor allocation (developed in Table 6-2). The same calculation is performed for the remaining functions (i.e., Column C × Column H in Lines 2-6).
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24 CITY OF SAN CLEMENTE
Table 6-3: Allocation of O&M Expenses by Function and Cost Causation Component (A) (B) (C) (D) (E) (F) (G) (H)
Line Functions Collection BOD TSS Customer Billing General Total 1 Collection $2,364,463 $0 $0 $0 $0 $2,364,4632 Grit Removal/ Primary Settling $0 $0 $514,040 $0 $0 $514,0403 Aeration $0 $816,670 $0 $0 $0 $816,6704 Secondary Settling $0 $375,786 $0 $0 $0 $375,7865 Residuals Processing & Disposal (sludge) $0 $892,807 $918,458 $0 $0 $1,811,2656 General $0 $0 $0 $262,284 $2,043,821 $2,306,1057 Total O&M Expenses $2,364,463 $2,085,263 $1,432,498 $262,284 $2,043,821 $8,188,3288 Percent by Cost Component 29% 25% 17% 3% 25% 100% 42 I I
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 25

6.3.2. FUNCTIONALIZATION AND ALLOCATION OF CAPITAL COSTS TO COST

COMPONENTS
Capital assets are used in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. The use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall wastewater asset base, however, is considerably stable in the long-term, and therefore is more representative of long-term capital investment in the City’s wastewater system. Thus, functionalized capital assets are used to allocate capital costs (the capital revenue requirement).

Table 6-4 summarizes FY 2018-19 capital assets by function. This intermediate step is necessary to allocate capital assets to cost causation components.

Table 6-4: Summary of Capital Assets by Functional Category (A) (B) (C) (D)
Line Functional Category Capital Assets Percent of Total 1 General $156,843 0.1%
2 Collection/Transmission $54,444,931 42.5%
3 Treatment $57,978,238 45.3%
4 Pumps $10,560,689 8.2%
5 Land $1,014,952 0.8%
6 Equipment $3,614,236 2.8%
7 Buildings $263,850 0.2%
8 Total $128,033,739 100%
Table 6-5 shows the percentages used to allocate the wastewater assets to each cost component. Treatment costs are allocated to BOD and TSS in proportion to the O&M costs for treatment.

Table 6-5: Allocation of Assets to Cost Causation Components Line Sewer Assets by
Function Collection BOD TSS Customer Billing Customer General Total 1 General 0% 0% 0% 0% 0% 100% 100%
2 Collection/Transmission 100% 0% 0% 0% 0% 0% 100%
3 Treatment 0% 59% 41% 0% 0% 0% 100%
4 Pumps 100% 0% 0% 0% 0% 0% 100%
5 Land 0% 0% 0% 0% 0% 100% 100%
6 Equipment 0% 0% 0% 0% 0% 100% 100%
7 Buildings 0% 0% 0% 0% 0% 100% 100%
Table 6-6 shows the allocation of capital assets by function to each cost causation component. The method used is the same as explained for the allocation of O&M expenses by function to the cost components for Table 6-3.
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26 CITY OF SAN CLEMENTE
Table 6-6: Allocation of Capital Assets by Function and Cost Causation Component Function Collection BOD TSS Customer
Billing General Total
General $0 $0 $0 $0 $156,843 $156,843
Collection/Transmission $54,444,931 $0 $0 $0 $0 $54,444,931 Treatment $0 $34,368,421 $23,609,817 $0 $0 $57,978,238
Pumps $10,560,689 $0 $0 $0 $0 $10,560,689
Land $0 $0 $0 $0 $1,014,952 $1,014,952
Equipment $0 $0 $0 $0 $3,614,236 $3,614,236
Buildings $0 $0 $0 $0 $263,850 $263,850
Total Capital Assets $65,005,620 $34,368,421 $23,609,817 $0 $5,049,881 $128,033,739 Capital Asset Allocation 51% 27% 18% 0% 4% 100%

6.4. Plant Mass Balance Analysis
The plant mass balance analysis estimates the flow and loadings from each class and ties it back to the total wastewater treatment plant flow and loadings. The plant mass balances is a reasonable way to estimate the flow and strength loadings from each class. We need to know the flow and strength loadings to the plant because the end goal is to multiply these flow and strength loadings by the unit cost for each cost component (flow, BOD and TSS) to allocate costs to the customer classes.

Table 6-8 shows the mass balance for the wastewater treatment plant based on City provided influent data for FY 2018-19. City staff provided:
 Total FY 2018-19 wastewater flows entering the wastewater treatment plant,  FY 2019-20 BOD and TSS concentrations entering the plant,  FY 2018-19 water use associated with non-residential wastewater customers.

We first estimate the flows from non-residential customers. The City provided water use for non-residential customers. To estimate sewer flows, we compared winter use to summer use. It is assumed that most winter water use is indoor water use since outdoor irrigation needs are minimal. By annualizing winter water use we can estimate a return to sewer factor by comparing annualized winter water use to actual water use. The difference between annualized winter use and actual water use is assumed to be used for irrigation purposes and therefore not discharged to the sewer system. March water use was the lowest, therefore March water use was considered winter water use and annualized. Table 6-7 shows the estimated return to sewer factors for non-residential and multi-family customers.
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2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 27 Table 6-7: Return to Sewer Factors for Non-Residential Customers Customer Class Return to
Sewer Factor
Multi-family Residential 85%
Low Strength (Includes Schools) 80%
Medium Strength 85%
Medium-High Strength 85%
High Strength 85%
Mixed Use (Comm & Residential) 85%
Non-residential and multi-family flow, estimated by assuming a return to sewer factor for each commercial class, is shown in column F of Table 6-8. Raftelis estimated residential flow, shown in line 13, into the WWTP by subtracting inflow and infiltration from the total plant flow shown in Line 2, Column C, and non-residential flows. In other words, the difference between total plant flow and all other customer flows is single family residential flow. A reasonable estimate of indoor water use for single family homes (which is discharged to the sewer system) is around 50 to 60 gallons per person per day (gpcd). Table 6-8 shows the mass balance calculations for the treatment plant. The estimated indoor water use is 50 gpcd (Line 14 – 724,736 ccf converted to gallons/30,000 people2 = 50 gallons per person per day), which is a reasonable wastewater flow estimate for residential customers.

Table 6-8: Plant Balance Calculation
(A) (B) (C) (D) (E) (F) (G) (H)
Line FY 2019 Flow
(MG)
BOD
(mg/L)
TSS
(mg/L)
Flow
(ccf/year)
BOD
(lbs/year)
TSS
(lbs/year)
1 Total Plant Influent 1,090 346 356 1,456,919 3,150,410 3,240,660 2 Less: I&I 22 50 50 29,138 9,095 9,095
3 Net Customer Plant Influent 1,068 296 306 1,427,781 3,141,315 3,231,565 4 5 Non-Residential
6 Low Strength (Includes Schools) 82 150 150 109,058 102,124 102,124 7 Medium Strength 52 300 350 69,261 129,715 151,334
8 Medium-High Strength 6 500 500 8,506 26,550 26,550
9 High Strength 36 1,000 600 48,564 303,174 181,904
10 Mixed Use 1 300 300 1,019 1,909 1,909
11 Subtotal Non-Residential Flow 177 382 314 236,409 563,472 463,821 12 13 Net Residential Flow 891 347 372 1,191,372 2,577,843 2,767,743 14 Single Family Residential 542 1 1 724,736 1,568,377 1,683,914 15 Multi-Family Residential 349 - - 466,636 1,009,466 1,083,829 2 The single-family population was estimated by multiplying the number of accounts (12,012) by 2.5 people per home which was taken from census data for the City of San Clemente. 45 - ------
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28 CITY OF SAN CLEMENTE

6.5. Wastewater Units of Service
Table 6-9 shows the units of service by cost component and class with the total units of service shown in line

13. The units of service are used to allocate costs to each customer class as explained in Section 6.7.

Table 6-9: FY 2022-23 Units of Service
(A) (B) (C) (D) (E) (F) (G)
Line Customer Class Collection
(ccf)
BOD
(lbs/year)
TSS
(lbs/year)
Customer
Accounts Bills
1 Residential
2 Single Family
Residential 745,620 1,610,038 1,723,250 12,012 144,144
3 Multi-Family
Residential 466,636 1,007,260 1,078,086 3,658 43,896
4 Subtotal
Residential 1,212,256 2,617,298 2,801,336 15,670 188,040 5 6 NonResidential
7 Low Strength
(Includes
Schools)
95,426 89,359 89,359 563 6,756
8 Medium
Strength 65,187 122,085 142,432 196 2,352
9 Medium-High
Strength 8,006 24,989 24,989 16 192
10 High Strength 45,707 285,340 171,204 96 1,152
11 Mixed Use
(Comm &
Residential)
1,199 2,246 2,246 10 120
12 Subtotal NonResidential 215,525 524,017 430,229 881 10,572 13 Total 1,427,781 3,141,315 3,231,565 16,551 198,612

6.6. Wastewater Unit Costs
Table 6-10 shows the derivation of the unit costs by cost component. The table derives unit costs in Line 9. Line 1 shows the allocation of the operating revenue requirement to the cost components using the percentages derived in Table 6-3. Line 2 used capital asset allocation percentages from Table 6-6 to allocate the capital revenue requirement to the cost components. The unit costs are derived by dividing the total costs in line 5 by the units of service in line 7 which comes from Table 6-9. 46 -
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 29 Table 6-10: Derivation of Wastewater Unit Costs by Cost Component (A) (B) (C) (D) (E) (F) (G) (H)
Line FY 2023 Collection BOD TSS Customer Billing General Total 1 Operating Cost $2,172,919 $1,916,338 $1,316,452 $241,036 $1,878,253 $7,524,9982 Capital Cost $1,261,691 $667,055 $458,242 $0 $98,013 $2,485,0003 Total Cost of Service $3,434,610 $2,583,393 $1,774,694 $241,036 $1,976,265 $10,009,9984 Allocation of General Costs $844,900 $635,504 $436,567 $59,294 -$1,976,265 $05 Adjusted Cost of Service $4,279,510 $3,218,897 $2,211,261 $300,330 $0 $10,009,9986 7 Units of Service 1,427,781 3,141,315 3,231,565 198,612 - -8 9 Unit Cost $3.00 $1.02 $0.68 $1.51 10 ccf lbs/yr lbs/yr per monthly bill
47 II I I I
30 CITY OF SAN CLEMENTE

6.7. Wastewater Cost Allocation to Customer Classes
Using the unit costs from Table 6-10, Table 6-11 shows the allocation of the rate revenue requirement by cost causation component to each customer class. This is known as the cost to serve each class. The units of service shown for each customer class for the flow, biological oxygen demand, suspended solids, and customer service cost causation components (Table 6-9, columns C-F, Lines 2-11) are multiplied by the unit costs, shown in Table 6-10, columns C-F, Line 9 to derive the cost allocations shown in Table 6-11. Note that the total cost to serve each class equals the revenue requirement derived in Table 6-1. 48 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 31 Table 6-11: Wastewater Cost Allocation to Customer Classes (A) (B) (C) (D) (E) (F) (G)
Line Customer Class Collection BOD TSS Customer Total
1 Residential 2 Single Family $2,172,262 $1,607,112 $1,152,251 $217,967 $5,149,5913 Multi-Family $1,398,657 $1,034,397 $741,632 $66,377 $3,241,0624 Subtotal Residential $3,570,918 $2,641,509 $1,893,882 $284,344 $8,390,6535 6 Non- Residential7 Low Strength $326,882 $104,646 $69,880 $10,216 $511,6258 Medium Strength $207,598 $132,919 $103,553 $3,557 $447,6279 Medium-High Strength $25,495 $27,206 $18,168 $290 $71,159 10 High Strength $145,561 $310,661 $124,471 $1,742 $582,43611 Mixed Use $3,055 $1,956 $1,306 $181 $6,49812 NonResidential Subtotal $708,592 $577,388 $317,379 $15,986 $1,619,345 13 14 Total $4,279,510 $3,218,897 $2,211,261 $300,330 $10,009,998 49 I
32 CITY OF SAN CLEMENTE

7. Proposed Wastewater Rates
Section 7 presents detailed calculations of proposed wastewater rates. All proposed rates are calculated directly from the results of the COS analysis (in Section 6).

7.1. Proposed Fixed Charges
Table 7-1 shows the calculation of monthly wastewater fixed service charge for the smallest meter size. The collection revenue requirement from Table 6-11 is divided by the total units of service in line 2 to yield the collection cost in line 3. The City elected to recover 20% of fixed treatment costs from a service charge, therefore 20% of the BOD and TSS treatment costs, from Table 6-11, are shown in line 5 of the table to be recovered through the fixed charge. The treatment charge is line 5 divided by line 6. Customer costs, line 9, are also recovered through the fixed charge and is line 9 divided by line 10. Adding lines 3, 7 and 11 yield the total fixed charge shown in line 12.

Table 7-1: Derivation of the Fixed Charge
Line
Monthly Fixed Charge by Meter
Size
1 Flow/Collection $4,279,510
2 Units of Service 217,790
3 Unit Cost $19.65
4 5 Treatment $1,086,032
6 Units of Service 217,790
7 Unit Cost $4.99
8 9 Customer $300,330
10 Units of Service 198,612
11 Unit Cost $1.51
12 Total $26.15
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2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 33 Table 7-2 shows the derivation of the fixed service charge for larger meter sizes. The collection costs in column D, are scaled up from the lowest charge, derived in line 3 of Table 7-1, using the meter ratios shown in column C. For example, the collection charge for a 1.5” meter is $19.65 x 2 = $39.30. The treatment charge is derived in the same manner. The meter ratios are in proportion to the potential flow by meter size. For example, a 1.5” meter can flow 2 times that of a 1” inch meter. Customer costs, in column F, are the costs to answer customer calls and bill customers. These costs are not a function of meter size as shown. The total charge is the sum of columns D, E and F and is shown in column G.

Table 7-2: Proposed Monthly Fixed Service Charge Calculation (A) (B) (C) (D) (E) (F) (G)
Line
Meter Size - All
Customer Classes Meter Ratio Collection Treatment Customer Total 1 up to 1" 1.00 $19.65 $4.99 $1.51 $26.15 2 1.5" 2.00 $39.30 $9.97 $1.51 $50.78 3 2" 3.20 $62.88 $15.96 $1.51 $80.35 4 3" 7.00 $137.55 $34.91 $1.51 $173.97 5 4" 12.60 $247.59 $62.83 $1.51 $311.93 6 6" 26.00 $510.89 $129.65 $1.51 $642.05

7.2. Billed Wastewater Discharge
In Section 6.4, we described the plant mass balance. We know the total flow to the wastewater treatment plant and estimate the non-residential and multi-family flows using the return to sewer factors shown in Table 6-7. It is expected that the City will apply the return to sewer factors to each classes’ monthly water use as shown in Table 6-7. As mentioned in Section 6.4, the difference between total wastewater treatment plant flow and multi-family and non-residential flow is calculated as single-family residential flow, which we estimate at approximately 720,000 to 750,000 ccf per year as shown in column F of Table 6-8. It is anticipated that the City will apply a return to sewer of 75% to the lowest two month water use period, for each single-family customer, to calculate the billed wastewater discharge. The City should confirm yearly that billed wastewater discharges approximate the total flow from San Clemente customers to the wastewater treatment plant. If warranted, the City may need to adjust return to sewer factors.
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34 CITY OF SAN CLEMENTE

7.3. Proposed Volumetric Rates
Table 7-3 shows the calculation of volumetric wastewater rates. The volumetric revenue requirement associated with each rate listed in column C is the difference between the fixed service charge revenue and the total revenue shown in Table 6-11. Proposed volumetric rates (Column E) are calculated by dividing the volumetric revenue requirement (column C) by wastewater flow (column D). Proposed rates are compared to current charges in columns G and H.

Table 7-3: Proposed Volumetric Rate Calculation
(A) (B) (C) (D) (E) (F) (G) (H)
Line Customer Class Revenue Requirement Wastewater Flow (ccf) Proposed Volumetric Rate ($/ccf) Current Volumetric Rate Difference ($) Difference (%) 1 Residential 2 Single Family Residential $2,207,490 724,736 $3.05 $1.44 $1.61 112%3 Multi-Family Residential $1,420,823 466,636 $3.04 $1.44 $1.60 111%4 Residential Subtotal $3,628,313 1,191,3725 6 Non-Residential 7 Low Strength (Includes Schools) $139,621 109,058 $1.28 $1.97 ($0.69) -35%8 Medium Strength $189,178 69,261 $2.73 $2.58 $0.15 6%9 Medium-High Strength $36,299 8,506 $4.27 $4.57 ($0.30) -7% 10 High Strength $348,106 48,564 $7.17 $6.38 $0.79 12%11 Mixed Use $2,610 1,019 $2.56 $2.61 ($0.05) -2%12 Non-Residential Subtotal $715,814 236,40913 14 Total $4,344,126 1,427,781 52 I I 11
2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 35

7.4. Proposed Monthly Five-Year Wastewater Rate Schedule Table 7-4 shows the proposed five-year schedule of wastewater rates. The rates for FY 2022-23 were derived in Table 7-2 shows the derivation of the fixed service charge for larger meter sizes. The collection costs in column D, are scaled up from the lowest charge, derived in line 3 of Table 7-1, using the meter ratios shown in column C. For example, the collection charge for a 1.5” meter is $19.65 x 2 = $39.30. The treatment charge is derived in the same manner. The meter ratios are in proportion to the potential flow by meter size. For example, a

1.5” meter can flow 2 times that of a 1” inch meter. Customer costs, in column F, are the costs to answer customer calls and bill customers. These costs are not a function of meter size as shown. The total charge is the sum of columns D, E and F and is shown in column G.

Table 7-2 and Table 7-3. All other proposed rates in subsequent years are increased by the revenue adjustments shown in Table 5-5. All proposed rates are rounded to the nearest cent.

Table 7-4: Proposed Five-Year Monthly Wastewater Rate Schedule Customer Class Current
Rate
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Fixed Rates
up to 1" $23.82 $26.15 $27.72 $29.10 $30.56 $31.93

1.5" $78.60 $50.78 $53.83 $56.52 $59.35 $62.02
2" $126.62 $80.35 $85.17 $89.43 $93.90 $98.12
3" $262.02 $173.97 $184.40 $193.62 $203.31 $212.45
4" $404.92 $311.93 $330.64 $347.18 $364.54 $380.94
6" $793.18 $642.05 $680.58 $714.61 $750.34 $784.10
Commodity Rates
Single Family Residential $1.44 $3.05 $3.23 $3.39 $3.56 $3.72 Multi-Family Residential $1.44 $3.04 $3.23 $3.39 $3.56 $3.72 Low Strength (Includes Schools) $1.97 $1.28 $1.36 $1.42 $1.50 $1.56 Medium Strength $2.58 $2.73 $2.90 $3.04 $3.19 $3.34
Medium-High Strength $4.57 $4.27 $4.52 $4.75 $4.99 $5.21 High Strength $6.38 $7.17 $7.60 $7.98 $8.38 $8.75
Mixed Use $2.61 $2.56 $2.71 $2.85 $2.99 $3.13
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36 CITY OF SAN CLEMENTE

8. Customer Bill Impacts

8.1. Monthly Wastewater Bill Impacts
Figure 8-1 shows sample monthly wastewater bills for a single-family residential customer at both current and proposed rates. The rates proposed as part of this study are different from the prior rates because they charge customers in proportion to their flow and strength as verified by plant flows and discussed in the plant mass balance section (Section 6.4). Additionally, the biggest reason for the decrease in the bills with larger meter sizes is the change in the meter ratios shown in Table 7-2. This study updates the prior ratios to use ratios put forth by the American Water Works Association that identifies the safe flow through various meter sizes. These new ratios are lower compared to the prior ratios, thus lowering bills for larger customers. The example bills below assume the most common meter size for each customer class and the average use for each customer class.

Figure 8-1 shows the bill impact for an average single-family customer who was previously billed for 9 ccf of sewer discharge (11 ccf winter water use x 90%) and is now assumed to discharge 5 ccf of sewage (using 7 ccf of water during the lowest winter month (7 x 0.75 return to sewer factor = approximately 5 ccf) and a 1” meter.

Figure 8-1: Single Family Residential Monthly Wastewater Bill Impacts 54 ■ Current Bill
■ Proposed Bill
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0
Proposed Bill Impact ($)
Proposed Bill Impact(%)
Monthly SFR Impacts for a l"Meter
$36.78
$41.38
$4.60

12.5%
37 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY -Family customer that discharges shows monthly wastewater bill impact for an average Multi Figure 8-2 approximately 48 ccf of sewage to the treatment plant each month (but uses 56 ccf of water). For test year 2022- 23, the average monthly bill for Multi-Family customers with a 1” meter will increase. water Bill Impacts Figure 8-2: Multi-Family Monthly per Dwelling Unit Waste Figure 8-3 shows monthly wastewater bill impacts for commercial customers with the meter sizes shown and ing average wastewater discharge for each class. The basis for the bill decrease for 2” meters and larger m assu is described at the beginning of this section. Non-residential customers account for 12% of all customers. e 8-3: Non-Residential Monthly Wastewater Bill Impacts Figur Difference ($) Proposed Bill Current Bill Customer Class Low
($3.55) $34.19 $37.74 1"
($69.76) $110.10 $179.87 2"
Medium
$2.32 $70.06 $67.74 1"
($46.29) $202.35 $248.64 2"
Med-High
$5.87 $87.41 $93.28 1"
($79.27) $326.81 $406.08 2"
High
$12.25 $198.38 $186.13 1"
($18.06) $570.40 $588.46 2"
Mixed Use
$1.07 $42.08 $41.01 1"
($48.65) $110.27 $158.92 2"
56 ccf
.37 9 $19 Current Bill
.83 3 $20 Proposed Bill
64 $4. Proposed Bill Impact ($)
% 2.2 Proposed Bill Impact (%)
0$
$50
$100
$150
$200
$250
Multi-Family Monthly Impacts at Different Usage Levels - 2" Meter 55 ■
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38 CITY OF SAN CLEMENTE
APPENDIX A:

Detailed Expense Allocations
to Functions
56 2022 WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 39 Expense Category Collection
Grit
Removal/
Primary
Settling
Aeration Secondary Settling
Residuals
Processing
and Disposal
(sludge)
Admin Total
Administration - Personnel 100% 100%
Administration - Supplies 100% 100% Administration - Contractual Services 100% 100% Administration - Other Charges 100% 100% Administration - Interdepartmental Charges 100% 100% Treatment - Personnel 0% 11% 27% 15% 39% 9% 100% Treatment - Supplies 0% 20% 8% 3% 63% 6% 100% Treatment - Contractual Services 0% 13% 24% 9% 48% 6% 100% Treatment - Other Charges 0% 13% 9% 17% 48% 13% 100% Treatment - Interdepartmental Charges 0% 0% 0% 0% 0% 100% 100% Collection - Personnel 100% 100% Collection - Supplies 100% 100% Collection - Contractual Services 100% 100% Collection - Other Charges 100% 100% Collection - Interdepartmental Charges 100% 100% 57 1111111

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 7/18/2023 Agenda Item: 7D
Department: Community Development
Prepared By Laura Coury, Assistant Planner
Subject:

APPEAL OF MINOR CONDITIONAL USE PERMIT 22-197, PRIMO FOODS BEER AND WINE, 2801 S. EL CAMINO REAL
Summary:

On November 3, 2022, the Zoning Administrator held a duly-noticed public hearing and approved Minor Conditional Use Permit (MCUP) 22-197, a request for a permit to sell beer and wine, for off-site consumption only, at Primo Foods, located at 2801 S. El Camino Real. At its regular meeting of November 15, 2022, the City Council reviewed the Zoning Administrator meeting minutes of November 3, 2022, and appealed the Zoning Administrator’s approval of Minor Conditional Use Permit 22-197.

Chapter 17.12.140 of the San Clemente Municipal Code authorizes the City Council to appeal any decision of the Zoning Administrator by calling up the decision for consideration at a future meeting to be heard as a de novo public hearing. This appeal was publicly noticed for the December 20, 2022 City Council meeting, and continued to the February 7, 2023 meeting. At the February 7th meeting, the City Council discussed the application, including parking challenges in the vicinity. A motion to approve the permit failed to pass. Council members encouraged the applicant to work further with staff and the resident who expressed parking concerns. (See Attachment 7 for minutes of the February 7, 2023 City Council meeting.)
The applicant subsequently submitted a letter to Public Works requesting modifications to the curb areas on South El Camino Real and Avenida San Luis near the business to provide additional shortand long-term parking and improve the safety and efficiency of the traffic flow. Public Works staff presented the requested parking modifications to the Planning Commission on June 7, 2023. The Planning Commission recommended that the City Council approve the proposed parking modifications, and on June 20, 2023, City Council adopted Resolution 23-61, approving the recommendations made for parking modifications on South El Camino Real and Avenida San Luis Rey. With those alterations approved, the appeal is presented for Council’s final consideration.

Depending on the Council’s findings, it may approve or deny MCUP 22-197.

Background:

The project site is located within the Mixed-Use 5.0 (MU5) Zone and the Affordable Housing Overlay.

The existing grocery/food store, Primo Foods, occupies a single tenant building. The site is on the corner of South El Camino Real and Avenida San Luis Rey. The site’s frontage is on South El Camino Real, and the rear of the property abuts an alley. The project site is directly adjacent to a single-family detached dwelling with an accessory dwelling unit to the south, and multi-family CITY OF SAN CLEMENTE Page 1 of 5 Printed on 7/13/2023
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dwellings to the north and east.

On August 24, 2022, Primo Foods applied for a business license for a retail grocery business at 2801 S. El Camino Real. The project site is located within the MU 5 Zone where grocery/food stores are permitted by right. The previous use at the site was the San Clemente Cyclery, permitted as a retail bicycle/repair shop. Upon the Planning Division’s review of the business license application, the request was approved as a retail-to-retail change of use that did not require an increase in required on-site parking. The applicant also obtained a building permit for tenant improvements to the site.

There is no onsite parking for the business. At the rear of the building there is space where vehicles for the business can load and unload items, but it is not a parking space. Due to the existing site limitations, the dimensions required for an ADA-parking space could not be met, so it was not required by the Building Division.

On June 14, 2022, the applicant applied for a request to allow beer and wine sales for off-site consumption at the existing grocery/food store. The grocery/food store’s hours of operations are 8:00 AM to 8:00 PM daily.

During the noticing period for the project, the Planning Division did not receive public comment regarding the application for beer and wine sales for off-site consumption for the existing grocery/food store. Complaints were submitted to the Beaches, Parks, and Recreation Department and the Human Resources Division for existing conditions, such as onsite ADA parking, lack of street parking in the vicinity, and over-flowing trash receptacles at the adjacent San Luis Rey Park. Staff was separately working to provide information to the complainant regarding the issues raised and find resolution to the complaints that were in relation to the existing grocery/food store, and not the application for beer and wine sales for off-site consumption. Therefore, this information was not presented to the Zoning Administrator for consideration as part of the request for off-site sales of beer and wine.

On November 3, 2022, the Zoning Administrator held a public hearing and approved the Minor Conditional Use Permit. The staff report and resolution presented for the Zoning Administrator’s consideration are provided for reference as Attachments 3 and 4.

The MCUP was appealed by the City Council, and the item was heard at a de novo public hearing on February 7, 2023. A motion to approve the permit failed to pass. Since that time, the applicant has worked with the City’s Engineering division, and modifications to parking and signage in the vicinity of Avenida San Luis Rey and South El Camino Real were supported by both the Planning Commission and the City Council. See Attachment 8 for the agenda report presented to the Council at the June 20, 2023 meeting.

Discussion:

The Zoning Administrator reviewed and approved the project and affirmed the findings for the Minor Conditional Use Permit in the staff report presented on November 3, 2022. The proposed sale of beer and wine for off-site consumption is ancillary to the grocery/food store and is permitted in the MU5 Zone, subject to a Minor Conditional Use Permit. The project site is suitable for the type and intensity of the proposed use in that the sale of beer and wine is contained entirely within the building and the proposed business operating hours cease no later than 8:00 PM on any given day of the week. No additional parking is required pursuant to the San Clemente Municipal Code (SCMC), as CITY OF SAN CLEMENTE Page 2 of 5 Printed on 7/13/2023
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week. No additional parking is required pursuant to the San Clemente Municipal Code (SCMC), as the proposed project does not modify or expand the stores footprint, nor does it change the underlying retail use of the business.

Additionally, the Development Management Team (DMT), the City’s Code Compliance Division, the Orange County Sheriff’s Department and the California Department of Alcoholic Beverage Control (ABC), do not have concerns with beer and wine sales for off-site consumption. The proposed use will not be detrimental to the public health, safety or welfare or materially injurious to properties and improvements in the vicinity because the proposed use must comply with conditions of approval and requirements of the SCMC, including limits on hours of operation and a requirement that employees receive alcohol service training. The project is also required to comply with the California Fire Code, California Building Code, and ABC licensing requirements.

Since the February 7, 2023 City Council meeting, Sam Assi, the owner of Primo Foods, has worked diligently to respond to concerns related to parking through signage alerting customers that parking is prohibited in the alley to the rear of the market and instructions to delivery trucks to not to park in the alley or on El Camino Real in front of the market. Representatives of Primo Foods have met several times with City staff to discuss ways of curbing illegal parking in the area as well as enhance curbside parking opportunities close to the market. A Primo representative has met on site with Mr. Gutierrez to further discuss ideas for preventing illegal parking.

In response to these concerns, Primo Foods (the grocery/food store at 2801 South El Camino Real) wrote a letter requesting Public Works review modifications to parking restrictions to accommodate its customers. Residents had also requested some changes to improve traffic flow and pedestrian safety. The applicant submitted a letter to the Public Works Director with suggestions to address some of the issues. The proposed parking modifications were reviewed by the Planning Commission on June 7, 2023. The item was unanimously recommended by the Planning Commission for City Council approval.

On June 5, 2023, Beaches Parks and Recreation received a complaint regarding over flowing trash receptacles at San Luis Rey Park after the weekend. The complaint centered on the need for more trash receptacles and maintenance of picnic tables at the park. Primo Foods responded by clearing any food debris left outside the trash containers at the neighboring park. Primo Foods’ regularly checks the area around the park for food debris and dispose of anything left out of the on-site trash receptacles.

On June 6, 2023, an email was received in praise of Public Work’s proposed parking modifications for the area, and listing other areas of concern on the turn on San Luis Rey towards the golf course for possible modification’s as well.

On June 20, 2023, the City Council adopted the recommended parking modifications on South El Camino Real and Avenida San Luis Rey. These parking modifications included a reduction of the red curb on South El Camino Real between Avenida San Luis Rey and Avenida Santa Inez to 50 linear feet; an installation of 60 linear feet of green curb for 20 minute limited term parking on South El Camino Real, installation of 40 linear feet of red curb at the northeast corner of Calle Del Comercio and Avenida San Luis Rey, and installation of 80 linear feet of green curb for 20-minutes limited term parking on the south side of Avenida San Luis Rey between South El Camino Real and the alley; and reducing the limited term parking from 24 minutes to 20 minutes for the 80 linear feet of curb on the CITY OF SAN CLEMENTE Page 3 of 5 Printed on 7/13/2023
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south side of Avenida San Luis Rey between South El Camino Real and the alley.

In addition to the parking modifications that required City Council approval, City Public Works staff issued work orders for the following measures to be implemented. These measures did not require formal authorization by City Council such as repainting the existing 6-foot red curb which had faded on the south side of Avenida San Luis Rey from the end of curb return to east; placing two (2) “SAN LUIS REY PARK-PUBLIC PARKING” signs on Avenida San Luis Rey to provide wayfinding to the nearby public park and parking lot (consistent with other City directional wayfinding signage); and posting one (1) “NO PARKING IN ALLEY” sign on the alley behind Primo to avoid traffic obstruction.

Council Options:
· Adopt Resolution No. 23-03 approving Minor Conditional Use Permit 22-197, a request to sell beer and wine, for off-site consumption only, at Primo Foods, located at 2801 S. El Camino Real.
· Modify and adopt Resolution No. 23-03 approving Minor Conditional Use Permit 22-197. · Adopt Resolution No. 23-73 denying Minor Conditional Use Permit 22-197. · Continue the appeal hearing to a date certain with direction for staff to provide additional information.

Plan and Policy Consistency:

The action is consistent with the General Plan goals and policies found in the proposed resolution, provided as Attachment 1.

Fiscal Impact:

None.

Environmental Review/Analysis:

The project was previously determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities) because the proposed project involves the permitting, operation, and minor alteration of existing structures and facilities involving negligible expansion of the use.

Recommended Actions:

Staff Recommendation
STAFF RECOMMENDS the City Council affirm the Zoning Administrator’s approval of Minor Conditional Use Permit 22-197, and approve Resolution No. 23-03 entitled “A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING MINOR CONDITIONAL USE PERMIT 22-197, PRIMO FOOD BEER AND WINE, A REQUEST TO ALLOW BEER AND WINE SALES FOR OFF-SITE CONSUMPTION LOCATED AT 2801 EL CAMINO REAL Attachments:

1. Draft Resolution No. 23-03 of Approval
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Exhibit A: Conditions of Approval

2. Draft Resolution No. 23-73 of Denial

3. Staff Report- November 3, 2022 Zoning Administrator Meeting

4. Project Plans and Narrative

5. Zoning Administrator resolution, ZA 22-020-Nov. 3, 2022

6. Minutes- November 3, 2022 Zoning Administrator Meeting

7. Minutes- February 7, 2023 City Council Meeting

8. Staff Report- June 20,2023 City Council Meeting

9. Applicant Letter of Support for Minor Conditional Use Permit 22-197 Notification:

Prior to the July 18, 2023 City Council meeting, three notices of public hearing were posted on the site, all property owners within 300 feet of the project site were notified, and public notice was published in the San Clemente Times.

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ATTACHMENT 1
RESOLUTION NO. 23-03

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING MINOR
CONDITIONAL USE PERMIT 22-197, PRIMO FOOD BEER

AND WINE, A REQUEST TO ALLOW BEER AND WINE
SALES FOR OFF-SITE CONSUMPTION LOCATED AT 2801

EL CAMINO REAL
WHEREAS, on June 14, 2022, an application was submitted, and completed on September 27, 2022, by Sam Assi, 2801 South El Camino Real, San Clemente, CA, 92672, for Minor Conditional Use Permit (MCUP) 22-197, a request to allow beer and wine sales for off-site consumption at a grocery/food store. The site is located in the Mixed-Use 5.0 Zone within the Affordable Housing Overlay at 2801 South El Camino Real. The site’s legal description is Lot 1 of Block 1 of Tract 900 and Assessor’s Parcel Number 060-071-10; and
WHEREAS, the Planning Division completed an initial environmental assessment of the above matter in accordance with the California Environmental Quality Act (CEQA) and the Zoning Administrator determined that the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities) because the project consists of permitting and licensing alcohol sales at an existing grocery/food store involving negligible or no expansion of the use; and WHEREAS, the Development Management Team (DMT) reviewed the proposed project for compliance with the General Plan, Zoning Ordinance, and other applicable City ordinances and codes; and
WHEREAS, on November 3, 2022, the Zoning Administrator of the City of San Clemente held a duly-noticed public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties, and approved Minor Conditional Use Permit 22-197, subject to Conditions of Approval; and
WHEREAS, on November 22, 2022, the City Council of the City of San Clemente held a duly-noticed public hearing and subsequently appealed the November 3, 2022 decision of the Zoning Administrator of the City of San Clemente, requesting that the Minor Conditional Use Permit 22-197 be considered by the City Council; and WHEREAS, on December 20, 2022, the City Council of San Clemente held a dulynoticed public hearing on the subject application and appeal. At that meeting, the appeal was continued by the City Council to accommodate the applicant’s request for a continuation to the February 7, 2023 City Council meeting; and WHEREAS, on February 07, 2023, the City Council of San Clemente held a dulynoticed public hearing on the subject application and appeal, considered written and oral comments, and facts and evidence presented by the applicant, appellants, City staff, and other interested parties and the motion to approve failed to pass; and WHEREAS, on June 20, 2023, the City Council adopted Resolution No. ____, approving parking modifications on South El Camino Real and Avenida San Luis Rey. 6 Resolution No. 23-03 Page 2
These parking modifications included a reduction of the red curb on South El Camino Real between Avenida San Luis Rey and Avenida Santa Inez to 50 linear feet; an installation of 60 linear feet of green curb for 20 minute limited term parking on South El Camino Real, installation of 40 linear feet of red curb at the northeast corner of Calle Del Comercio and Avenida San Luis Rey, and installation of 80 linear feet of green curb for 20-minutes limited term parking on the south side of Avenida San Luis Rey between South El Camino Real and the alley; and reducing the limited term parking from 24 minutes to 20 minutes for the 80 linear feet of curb on the south side of Avenida San Luis Rey between South El Camino Real and the alley; and
WHEREAS, in addition to the parking modifications that required City Council approval, City Public Works staff issued work orders for the following measures to be implemented: repainting the existing 6-foot red curb which had faded on the south side of Avenida San Luis Rey from the end of curb return to east; placing two (2) “SAN LUIS REY PARK-PUBLIC PARKING” signs on Avenida San Luis Rey to provide wayfinding to the nearby public park and its parking lot (which signs are consistent with other City directional wayfinding signage); and posting one (1) “NO PARKING IN ALLEY” sign on the alley behind Primo to avoid traffic obstruction; and WHEREAS, on July 18, 2023, the City Council held a duly-noticed public hearing on the subject application and appeal, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, resolve and determine as follows:

Section 1. Incorporation of Recitals.

The City Council hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the City Council as fully set forth in this resolution.

Section 3. Minor Conditional Use Permit Findings.

With respect to Minor Conditional Use Permit (MCUP) 22-197 for the proposed sale of beer and wine at a grocery/food store for off-site consumption, the City Council finds as follows:

A. The proposed use is permitted within the subject zone pursuant to the approval of a Minor Conditional Use Permit and complies with all the applicable provisions of the Zoning Ordinance, the San Clemente General Plan and the purpose and intent of the zone in which the use is being proposed, in that:

1. Beer and wine sale at a grocery/food store is a conditionally permitted use in the Mixed-Use 5.0 Zone; and

2. The proposed alcohol sale (for off-site consumption) is ancillary to the permitted grocery/food store use; and

3. The purpose and intent of the Mixed-Use 5.0 Zone is to accommodate a mix of neighborhood- and community-serving commercial uses. 7 Resolution No. 23-03 Page 3
Grocery/food stores are a typical use in this zone and are a type of general commercial use; and

4. The provisions of the Affordable Housing Overlay District do not apply to the project because there is no proposed residential development to the site; and

5. The General Plan Land Use Element establishes the following goal for the Commercial Land Uses in the City: “Achieve and maintain a healthy employment base with diverse retail, office, and service uses that: 1) meet citizens’ needs; 2) help generate municipal revenues that improve quality of life; 3) are compatible with adjacent residential neighborhoods; and 4) support the goals and policies of the Economic Development Element of the General Plan.” The project is consistent with this goal in that it allows for sale of beer and wine at a grocery/food store which meet the needs of residents and visitors to have a variety of commercial retail options.

B. The site is suitable for the type and intensity of use that is proposed, in that:

1. The proposed beer and wine sale (for off-site consumption) is ancillary to a permitted grocery/food store use;

2. No modifications are proposed to the tenant space or the existing commercial retail operations other than to allow sales of beer and wine to be consumed off-site; and

3. The City’s Code Compliance Division and the Orange County Sheriff’s Department reviewed the proposed alcohol service and concluded alcohol can be sold and consumed off-site without compatibility issues, provided that operations comply with licensing requirements, conditions of approval, and with other applicable regulations.

C. The proposed use will not be detrimental to the public health, safety or welfare, or materially injurious to properties and improvements in the vicinity, in that:

1. The proposed use must comply with conditions of approval and code requirements to maintain the public health, safety, and welfare of the area, such as the Fire Code, California Building Code, Alcohol Beverage Control licensing requirements, and the Municipal Code. This includes, but is not limited to, requiring employees to receive alcohol-service training to avoid the sale of alcoholic beverages to minors, limits on hours of operation, and requirements that limit amplified sound;

2. Should there be a compatibility issue, conditions of approval attached hereto as Exhibit A, allow the City to adjust operating hours and require noise abating measures if changes are necessary to ensure compliance with the noise ordinance and maintain the public health, safety, and welfare of the area; and

3. Code Compliance Staff and the Orange County Sheriff’s Department reviewed the proposed alcohol sales and concluded alcohol can be sold 8 Resolution No. 23-03 Page 4
and consumed off-site without compatibility issues, provided that operations comply with licensing requirements, conditions of approval, and with other applicable regulations.

D. The proposed use will not negatively impact surrounding land uses, in that:

1. The proposed use must comply with conditions of approval and code requirements to maintain the public health, safety, and welfare of the area, such as the Fire Code, California Building Code, Alcohol Beverage Control licensing requirements, and the Municipal Code. This includes, but is not limited to, requiring employees to receive alcohol-service training to avoid the sale of alcoholic beverages to minors, limits on hours of operation, and requirements that limit amplified sound;

2. Should there be a compatibility issue, conditions of approval attached hereto as Exhibit A, allow the City to adjust operating hours and require noise abating measures, if changes are necessary to ensure compliance with the City’s noise regulations and maintain the public health, safety, and welfare of the area;

3. Code Compliance Staff and the Orange County Sheriff’s Department reviewed the proposed alcohol service and concluded alcohol can be sold and consumed off-site without compatibility issues, provided that operations comply with licensing requirements, conditions of approval, and with other applicable regulations; and
Section 4. City Council Approval.

Based on the foregoing recitals and findings above, and the written and oral comments, facts, and evidence presented, the City of San Clemente City Council affirms the Zoning Administrator’s action and approves Minor Conditional Use Permit (MCUP) 22-197, Primo Food Beer and Wine, subject to the Conditions of Approval set forth in Exhibit A.

Section 5. Certification.

The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
9 Resolution No. 23-03 Page 5

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-03 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
City Attorney
10 Resolution No. 23-03 Page 6

EXHIBIT A

CONDITIONS OF APPROVAL
MCUP 22-197, PRIMO FOOD BEER AND WINE

1.0 GENERAL CONDITIONS OF APPROVAL

1.1 Within 30 days of approval of this application, the applicant shall submit to the City Planner a signed acknowledgement concurring with all conditions of approval on a form to be provided by the City. Failure to submit this acknowledgement may be grounds to revoke this approval.

Planning

1.2 The applicant shall defend, indemnify, and hold harmless the City of San Clemente and its officers, employees, and agents from and against any claim, action, proceeding, fines, damages, expenses, and attorneys’ fees, against the City, its officers, employees, or agents to attack, set aside, void, or annul any approval or condition of approval of the City concerning this project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Planner. Applicant shall pay all costs, The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter. If the applicant fails to so defend the matter, the City shall have the right, at its own option, to do so and, if it does, the applicant shall promptly pay the City's full cost of the defense.

Planning

1.3 Use and development of this property shall be in substantial conformance with the approved plans, material boards and other applicable information submitted with this application, and with these conditions of approval.

Planning

1.4 The applicant shall comply with all applicable current and future provisions of the San Clemente Municipal Code, adopted ordinances, and state laws.

All

1.5 Use of the subject property shall conform to all occupancy requirements, including posting of signs related to the maximum occupancy limitations.

Code
Comp

1.6 No signage is approved through this permit. All signs, including permanent, window, and temporary signage shall comply with Zoning Ordinance, including issuance of any applicable required permits.

Code
Comp
**

7.0 OPERATIONAL CONDITIONS OF APPROVAL
11 Resolution No. 23-03 Page 7

7.3 The sale of alcoholic beverages (beer and wine only) is for off-site consumption only, and shall be limited to the hours of 8:00 AM to 8:00 PM daily. No on-site consumption shall be allowed.

Planning

7.4 All employees shall receive Responsible Alcoholic Beverage Service training as offered through programs established by the Orange County Health Care Agency and Alcoholic Beverage Control of the State of California. Training shall be provided as soon as practical following the hire date of each employee. Evidence of such training shall be maintained on-site during business hours, and made available for inspection by any city official upon request. (SCMC Section

17.16.070)
Code
Comp

7.5 A manager shall be on the premises at all times, and available to respond to issues raised by representative from the Orange County Sheriff’s Department, Orange County Fire Authority, or City of San Clemente Code Compliance, during the hours of operation when alcohol sales are occurring.

Code
Comp

7.7 These conditions of approval shall be posted in a conspicuous location clearly visible to employees to ensure they are informed of and adhere to requirements and policies for all operations of the business, including but not limited to alcohol sales.

Code
Comp

7.8 The use of amplified sound (including the electronically amplified sound of live music, human voice, or other sound within a business, restaurant, bar, or other commercial establishment) shall not be permitted. This prohibition does not include the indoor use of televisions, radios, or reasonable background or ambient music.

Code
Comp*

7.17 The Applicant shall post a sign or notice at the premises that states, “WARNING: DRINKING WINE, BEER AND OTHER ALCOHOLIC

BEVERAGES DURING PREGNANCY CAN CAUSE BIRTH
DEFECTS. FOR INFORMATION AND MATERIALS RELATING TO

FETAL ALCOHOL SYNDROME, CONTACT YOUR LOCAL MARCH
OF DIMES.” The notice or sign shall be posted or displayed at the premises in the manner provided for in San Clemente Municipal Code, Title 8 – Health and Safety. [Citation - Section 8.08.010 of the SCMC] Code
Comp**

7.18 Discharge of wash water and other pollutants is prohibited from entering the storm drain system. Applicant must prevent pollutants (e.g. sediment, trash, food waste etc.) and any wash water used during cleanup from entering the storm drain system.

Code
Comp
WQ**

7.19 The Applicant shall use her/his best judgment and best management practices to ensure commercial activities on the premises will be conducted in a manner that will not be disruptive to neighbors. The business owner/property owner shall be responsible for ensuring compliance with the San Clemente Municipal Code (SCMC), and all conditions of approval contained herein. The Applicant (including any property owners and managers, and their designees) hereby understands that noncompliance with regulations and conditions of Code
Comp**
12 Resolution No. 23-03 Page 8
approval, shall be immediate grounds for citation pursuant to SCMC Section 8.52.030(Y), which states, “It is declared a public nuisance for any person owning, leasing, occupying or having charge or possession of any premises in this City to maintain such premises in such manner that … A structure, improvement, property, and/or land use is not in compliance with terms and/or conditions of any City of San Clemente issued permit or approval,” and any subsequent revision of this section of the code. [Citation - Section 8.52.030(Y) of the SCMC]

7.20 The Applicant shall use his/her best judgment and best management practices to ensure activities on the premises will be conducted in a manner that will not be disruptive to other commercial or residential neighbors and result in police services, which cost the City of San Clemente expense.

Code
Comp
OCSD**

7.21 The Applicant (including any property owners and managers, and their designees) shall be responsible for ensuring that no noise-generating activities on the subject property are conducted between the hours of ten (10:00) p.m. and seven (7:00) a.m. Such prohibited activities include, but are not limited to, dumping trash into outside trash bins, the use of parking lot sweepers, the use of high-pressure washers, or other maintenance or delivery activities which generate noise having the potential of disturbing neighboring properties. [Citation - Section 8.48.070(P) of the SCMC]
Code
Comp**

7.22 The Applicant understands and acknowledges sound amplification devices located outside any business’s primary building are not permitted, unless specifically identified and approved in this permit or subsequent permits approved by the City. [Citation - Section 8.48.080 of the SCMC]
Code
Comp**

7.23 The Applicant (including any property owners and managers, and their designees) shall abide by all applicable laws, including Orange County Health Department and the California Department of Alcoholic Beverage Control (ABC) laws.

Code
Comp
OCHCA
ABC**

7.24 The Applicant shall rectify any outstanding violations related to signage or exterior improvements within two weeks of the approval of this permit.

Planning**
* Denotes a modified Standard Condition of Approval
** Denotes a project specific Condition of Approval
13 ATTACHMENT 2
RESOLUTION NO. 23-73

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, DENYING MINOR
CONDITIONAL USE PERMIT 22-197, PRIMO FOOD BEER

AND WINE, A REQUEST TO ALLOW BEER AND WINE
SALES FOR OFF-SITE CONSUMPTION LOCATED AT 2801

EL CAMINO REAL
WHEREAS, on June 14, 2022, an application was submitted, and completed on September 27, 2022, by Sam Assi, 2801 South El Camino Real, San Clemente, CA, 92672, for Minor Conditional Use Permit (MCUP) 22-197, a request to allow beer and wine sales for off-site consumption at a grocery/food store. The site is located in the Mixed-Use 5.0 Zone within the Affordable Housing Overlay at 2801 South El Camino Real. The site’s legal description is Lot 1 of Block 1 of Tract 900 and Assessor’s Parcel Number 060-071-10; and
WHEREAS, the Planning Division completed an initial environmental assessment of the above matter in accordance with the California Environmental Quality Act (CEQA) and the Zoning Administrator determined that the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities) because the project consists of permitting and licensing alcohol sales at an existing grocery/food store involving negligible or no expansion of the use; and WHEREAS, the Development Management Team (DMT) reviewed the proposed project for compliance with the General Plan, Zoning Ordinance, and other applicable City ordinances and codes; and
WHEREAS, on November 3, 2022, the Zoning Administrator of the City of San Clemente held a duly-noticed public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties, and approved Minor Conditional Use Permit 22-197, subject to Conditions of Approval; and
WHEREAS, on November 22, 2022, the City Council of the City of San Clemente held a duly-noticed public hearing and subsequently appealed the November 3, 2022 decision of the Zoning Administrator of the City of San Clemente, requesting that the Minor Conditional Use Permit 22-197 be considered by the City Council; and WHEREAS, on December 20, 2022, the City Council of San Clemente held a dulynoticed public hearing on the subject application and appeal. At that meeting, the appeal was continued by the City Council to accommodate the applicant’s request for a continuation to the February 7, 2023 City Council meeting; and WHEREAS, on February 07, 2023, the City Council of San Clemente held a dulynoticed public hearing on the subject application and appeal, considered written and oral comments, and facts and evidence presented by the applicant, appellants, City staff, and other interested parties and the motion to approve failed to pass; and WHEREAS, on June 20, 2023, the City Council adopted Resolution No. 23-61, approving parking modifications on South El Camino Real and Avenida San Luis Rey. 14 Resolution No. 23-73 Page 2
These parking modifications included a reduction of the red curb on South El Camino Real between Avenida San Luis Rey and Avenida Santa Inez to 50 linear feet; an installation of 60 linear feet of green curb for 20 minute limited term parking on South El Camino Real, installation of 40 linear feet of red curb at the northeast corner of Calle Del Comercio and Avenida San Luis Rey, and installation of 80 linear feet of green curb for 20-minutes limited term parking on the south side of Avenida San Luis Rey between South El Camino Real and the alley; and reducing the limited term parking from 24 minutes to 20 minutes for the 80 linear feet of curb on the south side of Avenida San Luis Rey between South El Camino Real and the alley; and
WHEREAS, in addition to the parking modifications that required City Council approval, City Public Works staff issued work orders for the following measures to be implemented: repainting the existing 6-foot red curb which had faded on the south side of Avenida San Luis Rey from the end of curb return to east; placing two (2) “SAN LUIS REY PARK-PUBLIC PARKING” signs on Avenida San Luis Rey to provide wayfinding to the nearby public park and its parking lot (which signs are consistent with other City directional wayfinding signage); and posting one (1) “NO PARKING IN ALLEY” sign on the alley behind Primo to avoid traffic obstruction; and WHEREAS, on July 18, 2023, the City Council held a duly-noticed public hearing on the subject application and appeal, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, resolve and determine as follows:

Section 1. Incorporation of Recitals.

The City Council hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the City Council as fully set forth in this resolution.

Section 2. California Environmental Quality Act (CEQA) Findings.

CEQA does not apply to the project, pursuant to CEQA Guidelines Section 15270, because the project is being denied.

Section 3. Minor Conditional Use Permit Findings:

With respect to Minor Conditional Use Permit (MCUP) 22-197 for the proposed sale of beer and wine at a grocery/food store for off-site consumption, the City Council finds as follows:

A. The site is not suitable for the type and intensity of use that is proposed, in that:

1. The site is currently legal non-conforming in regards to parking requirements, as there is no on-site parking for the business. The zoning ordinance currently requires 1 parking space, per 300 square foot of tenant space. The current square footage of the site is 1, 980 square feet, and would require 6 parking spaces. Although the proposed beer and wine sale (for off-site consumption) is ancillary to a permitted grocery/food store use; 15 Resolution No. 23-73 Page 3
the current site is deficient in parking, even with the recent parking modifications.

2. Due to the non-conforming parking conditions, the site is not suitable for the proposed use as the additional sale and service of beer and wine at the market may result in further increase in demand for parking or result in illegal parking near the site despite recent parking modifications.

3. The property is directly adjacent to single family detached dwellings with accessory dwelling units to the south, and multifamily dwellings to the north and east. Access to the subject property is challenging due to the nonconforming parking conditions and the lack of available street parking due to shared use with surrounding multi-family residential developments. Due to these site access issues, the site is not suitable for the intensification of this ancillary use.

Section 4. City Council Denial.

Based on the foregoing recitals and findings above, and the written and oral comments, facts, and evidence presented, the City of San Clemente City Council overturns the Zoning Administrator’s action and denies Minor Conditional Use Permit (MCUP) 22-197, Primo Food Beer and Wine.

Section 5. Certification.

The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
16 Resolution No. 23-73 Page 4

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-73 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
17 ATTACHMENT 3
AGENDA ITEM: 4-A

STAFF REPORT

SAN CLEMENTE ZONING ADMINISTRATOR
Meeting Date: November 3, 2022
PLANNER: Laura Coury, Assistant Planner
SUBJECT: Minor Conditional Use Permit (MCUP) 22-197, Primo Food Beer and Wine, a request to allow beer and wine sales for offsite consumption only at an existing grocery/food store.

LOCATION: 2801 S. El Camino Real

ZONING/GENERAL
PLAN:

Mixed-Use (MU 5.0), Affordable Housing Overlay District (AH)

PROJECT SUMMARY
 Site Information: The project site is located within the Mixed-Use 5.0 Zone and the Affordable Housing Overlay. The existing grocery/food store, Primo Foods, occupies a single tenant building. The site is on the corner of South El Camino Real and Avenida San Luis Rey. The site’s frontage is on South El Camino Real, and the rear of the property abuts an alley with multi-family residential directly across. The project site abuts a single family detached dwelling with an accessory dwelling unit to the south, and on the north and northeast side multi-family homes. Figure 1 below shows an aerial view of the site. To the
Figure 1 – Aerial View
 Proposed Project: The applicant, Sam Assi, requests approval of a Minor Conditional Use Permit (MCUP) to sell beer and wine for off-site consumption in conjunction with the existing grocery/food store operations. No sale for on-site consumption is Project Site
18 Primo Food’s Beer and Wine Page 2
requested. The grocery/food store current hours of operations occur between 8:00 AM and 8:00 PM daily (Attachment 2). The grocery/food store has an approved business license for retail grocery sales, which is reflected on the floor plan (Attachment 3). No additional parking is required.
 Approval Authority: Zoning Administrator approval is required for MCUPs (Zoning Ordinance Section 17.16.070).
 Project Findings: Staff supports the proposed use, subject to recommended conditions of approval, because it meets the required findings in the attached Resolution (Attachment 1) for MCUP approval for the following reasons:
o Beer and wine service at a grocery/food store is a conditionally permitted use in the Mixed-Use 5.0 Zone and is consistent with the General Plan; and o The project maintains the primary use of the site as a grocery/food store; and o The project site is suitable for the type and intensity of the proposed use in that the sale of beer and wine is contained entirely within the building and the proposed business operating hours cease no later than 8:00 PM on any given day of the week; and
o No additional parking is required, as the proposed project does not modify or expand the stores footprint; and does not change the use of the business to include on-site consumption with seating restaurant style; and
o The Development Management Team (DMT), including the Orange County Sheriff’s Department (OCSD) and the City’s Code Compliance Division, reviewed the project and do not have concerns with the request; and o The proposed use will not be detrimental to the public health, safety or welfare or materially injurious to properties and improvements in the vicinity in that the proposed use must comply with conditions of approval and code requirements, such as Fire Code, California Building Code, Alcohol Beverage Control licensing requirements, and the Municipal Code, including limits on hours of operation, amplified sound, and a requirement that employees receive alcohol service training.
 CEQA: The project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities) because the proposed project involves the permitting, operation, and minor alteration of existing structures and facilities involving negligible expansion of the use.  Public Comment: The project was publicly noticed in accordance with the San Clemente Zoning Ordinance and, as of the date this report was submitted for publishing, Staff has received no public comment on this item.

RECOMMENDATION
Staff recommends that the Zoning Administrator:

19 Primo Food’s Beer and Wine Page 3

1. Determine the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities); and

2. Adopt Resolution ZA 22-020, approving Minor Conditional Use Permit 22-197, Primo Foods, subject to Conditions of Approval.

Attachments:

1. Resolution ZA 22-020
Exhibit A – Conditions of Approval

2. Project Narrative

3. Floor Plan
20 Primo foods San Clemente
2801 S. El Camino Real 92672 storage square footage is 2250 ft.² we are applying for a minor conditional use permit for a off sale beer and wine license our hours of operation are Monday through Sunday 8 AM to 8 PM project number MCUP 22–197 Application for a minor conditional use permit
to whom it may concern we are asking for a minor conditional use permit for application of off sale beer and wine license our store is 2250 ft is located at 2801 S. El Camino Real there will be no consumption of alcohol on site Primo food is a neighborhood Deli/Butcher shop with truly some of the best meat you could find we offer certified Angus beef which we have been certified to sell for many years and other variety of homemade food that we make in house and our fresh local produce and our homemade Guacamole salsas dips salads tamales and lots of other authentic Mexican and traditional American food we've been around since 1996 and we take a lots of pride in what we do San Clemente location would be our first owned location this location will have a meats deli and hot food counter beer and Wine some grocery items fresh local Produce and fresh cut f lowers most of our food and product is to go we look forward to making a beautiful impression on a our new community and we look forward to comply and do anything you ask of us to make this happen I truly thank you for all your help in advance we are a local small business really small and time does affect us during these hard times We truly need your help in this matter to expedite The process thank you again Sincerely Sam Assi
ATTACHMENT 4
21 Eagle Aerial
City of San Clemente
Printed 11/30/2022 @ 4:06 PM
N
0 0.005 0.01 0.02
mi
C:\GIS\ServicesStagi ng\Pri ntServices\Letter_Portrait.mxd Vicinity Map
Project Location
22 30"x36"
CLR.

G

WALK-IN COOLER
(N)

RETAIL (N)

RESTROOM
(N)

COOKING (N)

SERVICE AREA (N)
POS
WH

STORAGE
(E)

WASHING / PREP (N)
B
A5.0
B
A5.0
C
A5.0
C
A5.0
A
A5.0
ELECT.

PNL.
30"x36"
CLR. PNL. ELECT.
(E) GAS METER
7'-0"
6"
7'-3"
9'-5"
44" MIN.
2 1 3
4 AD1
13 4
8 56
D-1
D-3
1 AD2
(TYP.)
(TYP.)
7 10
(TYP.)
77 9'-8" 7'-0"
444
4 3/0X7/0 R.O.

D-2
3 8
9 12
7 AD2
7 11 (TYP.)
11 (TYP.)
11 (TYP.)
11 (TYP.)
1313
12"
CLR.
44" MIN.
44" MIN. 44" MIN. 44" MIN.
36" MIN.
36" MIN.
30"x48"
CLR.
15 14
3/0X7/0 R.O.
18" MIN.

CLR.
12" MIN.

CLR.
18" MIN.

CLR.
12" MIN.

CLR.
16 17 TYP.
18 19

MERCHANDISE
COOLER

MERCHANDISE

FREEZER

ILLUMINATED

DISPLAY SHELVING

ILLUMINATED

DISPLAY SHELVING
17 (TYP.)

FLOOR PLAN KEYNOTES

5. (N) COUNTERTOP AND CASEWORK TO BE SELECTED.

4. EXISTING WOOD FRAMED FIXED WINDOWS.

3. (E) THRESHOLD, FOR COMPLIANCE SEE SHEET AD1 / DTL. 5

2. ACCESSIBLE TACTILE "EXIT" SIGN, SEE AD1 / DTL.-2&4

1. INTERNATIONAL SYMBOL OF ACCESSIBILITY, SEE AD1 / DTL.-1&4 PROVIDE SHOP DRAWINGS FOR REVIEW AND APPROVAL.

6. (N) POINT OF SALE ACCESSIBLE COUNTER. SECTION OF ACCESSIBLE COUNTER SHALL BE MINIMUM 36" WIDE AND TO BE INSTALLED 28" TO 34" MAX. ABOVE FINISHED FLOOR, SEE AD1 / DTL.-16.

10. (N) STAINLESS STEEL BACK SPLASH UNDER EXHAUST HOOD UP TO

9. (N) 42" HT. PONY WALL.8. INFILL WALL EXISTING OPENING.7. EXISTING COLUMN TO BE MODIFIED, SEE STRUCTURAL PLANS. 80" MIN. ABOVE FINISHED FLOOR BY VENDOR.

11. (N) EQUIPMENT SHOWN FOR REFERENCE ONLY, FOR DETAILS - SEE EQUIPMENT PLAN AND SCHEDULES. (TYP.)

13. (N) WALK-IN COOLERS & FREEZERS BY VENDOR,12. (N) WATER HEATER, SEE EQUIPMENT SCHEDULE.

SEE EQUIP. PLAN & SCHEDULE.

14. CASH REGISTER / POINT-OF-SALE DEVICE SHALL COMPLY WITH AVAILABLE TO ALL INDIVIDUALS (11B-707.9.1.1).

OPPORTUNITY FOR THE SAME DEGREE OF PRIVACY INPUT AND OUTPUT

RPOCESS THE TRANSACTION IN A MANNER THAT PROVIDES THEENTER HIS OR HER OWN PERSONAL INFORMATION NECESSARY TOPROCESSING DEVICE ) SHALL ENABLE VISUALLY IMPAIRED PERSON TO (11B-707.9) . ELECTRONIC PAYMENT SYSTEMS (CREDIT CARDS

15. PROVIDE 30"X48" CLEAR FLOOR SAPCE FOR WHEELCHAIR PARALLEL APPROACH IN FRONT OF POINT-OF-SALE COUNTER. (11B-305)

17. DASH LINE INDICATES MINIMUM MANEUVERING CLEARANCE AT DOOR,16. EXISTING DOOR - NOT AN ACCESSIBLE ENTRANCE / EXIT.

FOR DETAILS, SEE AD1 / DTL-7.

19. PROVIDE 30" MIN. WIDE AND 36" MIN. DEEP WORKING SPACE IN FRONT18. EXTERIOR ROOF ACCESS LADDER, SEE BLDG. ELEVATIONS.

LESS THAN 78" ABOVE FIN. FLOOR OR GRADE. (CEC 110.26 )
OF ELECTRICAL PANEL. THE HEIGHT OF WORKING SPACE SHALL BE NO

WALL SYMBOL AND LEGEND
NEW WALK-IN COOLER WALL, BY VENDOR.NEW WALL. METAL STUDS @ 16" O.C, TYP..EXISTING WALL TO BE REMOVED 6 PROVIDE A LEVEL LANDING ON EACH SIDE OF A DOOR EXTENDING 60" ON DIRECTION OF DOOR SWING AND 48" IN OPPOSITE DIRECTION OF DOOR

7.SWING, MEASURED WITH DOOR CLOSED. CBC 11B-404.2.4.1

MANEUVERING CLEARANCE AT SWING DOORS AND GATES SHALL
RECESSED DOORS AND GATES SHALL COMPLY WITH SECTION DOORWAYS WITHOUT DOORS SHALL COMPLY WITH SECTION 11B-404.2.4.2MANEUVERING CLEARANCE AT SLIDING DOORS, FOLDING DOORS AND COMPLY WITH SECTION 11B-404.2.4.1 AND TABLE 11B-404.2.4.1 11B-404.2.4.3.

8. LOCKS AND LATCHES. IN A3, B, F, M AND S OCCUPANCIES,

KEY-LOCKING HARDWARE MAY BE USED AT THE MAIN ENTRY / EXIT DOOR(S)

A READILY VISIBLE DURABLE SIGN IS POSTED ON THE EGRESS SIDE ON PROVIDED:

OR
ADJACENT TO THE DOOR STATING:
"THIS DOOR TO REMAIN UNLOCKED DURING BUSINESS HOURS"
THE SIGN SHALL BE IN LETTERS 1" HIGH ON A CONTRASTING BACKGROUND. (CBC 1010.1.9.3).
1 DOOR NOTES
DOOR OPENINGS SHALL PROVIDE A CLEAR WIDTH OF 32 INCHES
2 DOOR OPEN 90 DEGREES.MEASURED BETWEEN THE FACE OF THE DOOR AND THE STOP, WITH THEMINIMUM. CLEAR OPENINGS OF DOORWAYS WITH SWINGING DOOR SHALL BE OPERABLE PARTS. (11B-309.4)

THE FORCE FOR PUSHING OR PULLING OPEN A DOOR OR GATE SHALL BE AS FOLLOWS :

A. OPERABLE PARTS SHALL BE OPERABLE WITH ONE HAND AND
BE 5 POUNDS MAXIMUM.

THE WRIST. FORCE REQUIRED TO ACTIVATE OPERABLE PARTS SHALL

SHALL NOT REQUIRE TIGHT GRASPING, PINCHING, OR TWISTING OF C. REQUIRED FIRE DOORS SHALL NOT EXCEED 15 POUNDS.

B. SLIDING OR FOLDING DOORS SHALL NOT EXCEED 5 POUNDS MAX. 3 HANDLES, PULLS, LATCHES, LOCKS AND OTHER OPERABLE PARTS ON ABOVE THE FINISH FLOOR OR GROUND. WHERE SLIDING DOORS ARE IN SUCH HARDWARE SHALL BE 34 INCHES MINIMUM AND 44 INCHES MAXIMUM DOORS AND GATES SHALL COMPLY WITH 11B-309.4. OPERABLE PARTS OF THE
4 USABLE FROM BOTH SIDES. 11B-404.2.7.FULLY OPEN POSITION, OPERATING HARDWARE SHALL BE EXPOSED AND SWINGING DOOR AND GATE SURFACES WITHIN 10 INCHES OF THE

SURFACE ON THE PUSH SIDE EXTENDING THE FULL WIDTH OF THE DOOR

FINISH FLOOR OR GROUND MEASURED VERTICALLY SHALL HAVE A SMOOTH OR
SURFACES SHALL BE WITHIN 1/16 INCH OF THE SAME PLANE AS THE GATE. PARTS CREATING HORIZONTAL OR VERTICAL JOINTS IN THESE OTHER
AND BE FREE OF SHARP OR ABRASIVE EDGES. CAVITIES CREATED BY ADDED 5 KICK PLATES SHALL BE CAPPED. 11B-404.2.10
THRESHOLDS, (11B-404.2.5) IF PROVIDED AT DOORWAYS, SHALL BE 1/2 DOORWAYS SHALL COMPLY WITH 11B-302 AND 11B-303.

INCH HIGH MAXIMUM. RAISED THRESHOLDS AND CHANGES IN LEVEL AT 2 OFFICE TYPE LOCKSET
1 DEADBOLT

HARDWARE GROUP

DOOR SCHEDULE
NO. EXISTING / NEW

DOOR PANEL

HARDWARE

GROUP CLOSER REMARKS

WIDTH HEIGHT TYPE
EXISTING 3'-0" 7'-0" HINGED 7 YES
PROVIDE SELF-CLOSING DEVICE.
"THIS DOOR TO REMAIN UNLOCKED DURING BUSINESS HOURS"
PROVIDE A SIGN :

EXISTING 3'-0" 7'-0" HINGED 7 YES PROVIDE SELF-CLOSING DEVICE.

NEW 3'-0" 7'-0" HINGED 3 YES PROVIDE SELF-CLOSING DEVICE. 4 PASSAGE SET
3 PRIVACY LOCKSET, CLOSER
7 LOCKSET W/ CLOSER
D-2D-1
6 STORAGE LOCKSET5 PASSAGE SET, W/ CLOSER
D-3
NOTE : FOR MINIMUM MANEUVERING CLEARANCES AT DOORS , SEE AD1 / DTL.-7.

RETAIL (E)

ENTRY (E)

BATH (E)

OFFICE (E)

WORKSHOP (E)

STORAGE (E)

GARAGE (E)

DRESS'G (E)
UP
G
UP
ELECT.

PNL.

PNL.ELECT.

GAS METER(E)
(TYP.)(E) COLUMN,
(E) LANDING
(E) 3/0X7/0 (E) 3/0X7/0 (E) 3/0X7/0 (E) PLUMBING FIXTURES TO BE REMOVED, (TYP.) (E) PLUMBING FIXTURES TO BE REMOVED, (TYP.) (E) 8/0X5/0 FIXED (E) 8/0X5/0 FIXED
(E) 8/0X5/0 FIXED (E) 3/0X4/0 CSMT. (E) 10/0X3/6 CSMT.
(E) 4/0X3/0 CSMT.
(E) RAMP AND STAIRS

TO BE REMOVED,
(TYP.)

TO BE REMOVED
(E) STAIRS AND RAISED FLOOR

TO REMAIN
(E) CONC. FLOOR

REMOVE (E) RAISED FLOOR
REQUIRED 30" X 48" CLEAR FLOOR SPACE (11B-305.3)
30"x36"
CLR.

SYMBOL AND LEGEND
30"x48"
CLR.

FLOOR DRAIN, SEE PLUMBING PLANSFLOOR SINK, SEE PLUMBING PLANS GRADE. (CEC 110.26)
WITH 78" MIN. HEADROOM ABOVE FINISH FLOOR OR
REQUIRED 30" X 36" CLEAR FLOOR SPACE

No. Revision/Issue
06-01-202103-01-2021
2 SCALE : 1/4" = 1'-0"T.I. FLOOR PLAN
N
SCALE : 1/4" = 1'-0"EXISTING / DEMO FLOOR PLAN
N

DEMOLITION NOTES

1. CONTRACTOR SHALL DEMOLISH EXISTING CONSTRUCTION AS
OWNER.

AND MATERIALS NOT REQUIRED BY CONSTRUCTION OR REQUESTED BY

NECESSARY TO INSTALL NEW WORK AND REMOVE ALL EXCESS DEBRIS

2. CONTRACTOR SHALL ERECT AND MAINTAIN TEMPORARY BARRICADES, CONSTRUCTION PROCESS OR EXPOSURE TO WEATHER.

PROPERTY FROM DAMAGE OR LOSS ARISING BECAUSE OF

MAINTAIN ADEQUATE PROTECTION OF WORK AND THE OWNER'S

PROTECTION AGAINST ACCIDENTS, AND SHALL CONTINUOUSLY

WATERPROOFING AND DUST-PROOF PARTITIONS, AS NEEDED FOR

3. CONTRACTOR SHALL BE RESPONSIBLE FOR MAINTAINING IN GOOD PROCESS OR EXPOSURE TO WEATHER.PORTIONS DAMAGED AS A RESULT OF THE WORK, CONSTRUCTIONREMAIN AND SHALL REPLACE OR REPAIR AT HIS EXPENSE ANY

CONDITION ANY PARTITIONS OF THE EXISTING BUILDING AND SITE TO

4. CONTRACTOR SHALL REMOVE ALL EXCAVATED OR EXCESS SOIL, PRIOR TO START OF CONSTRUCTION.

ANY ITEMS TO REMAIN OR BE SALVAGED WITH ARCHITECT AND OWNER DEBRIS AND MATERIALS NOT REQUIRED BY CONSTRUCTION. CONFIRM 23 \
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~ ij f 9 ~ SAN CLEMENTE, CA 92672
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EXISIING/DEMO FLOOR PLAN l "-
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30"x36"
CLR.

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ELECT.

PNL.
30"x36"
CLR. PNL. ELECT.

E L C A M I N O R E A L LC

A L L E Y LC

CL S A N L U I S R E Y
(E) ELECTRICAL
PANEL
(E) WATER METER
22'-0"
8'-0"

TO CURB
⅊ 100.00'
⅊ 40.00'
⅊ 40.00'
⅊ 100.00'
(E) SIDEWALK
(E) SIDEWALK
6'-0"
14'-6"
(E) CURB & GUTTER
(E) CURB & GUTTER
(E) GAS METER
(E) ACCESSIBLE
RAMP

CONTROL
(E) TAFFIC
BOXES
(E) STREET LIGHT
POLE
(E) TRAFFIC LIGHT
5'-0"
4'-0"
(E) UTILITY POLE
1 (E) SIDEWALK - PUBLIC RIGHT OF WAY
2 SETBACK
(N) TRASH ENCLOSURE

TRASH TRASH
(N) FENCE / SCREEN
3 EXISTING

SINGLE-STORY

BUILDING
MAIN

ENTRANCE
/ EXIT
4 7'-0"
5'-0" 5% MAX
8'-6"

LANDING

No. Revision/Issue
06-01-202103-01-2021
2 SHEET INDEX
TENANT IMPROVEMENT OF EXISTING BUILDING :

SCOPE OF WORK

PROJECT INFORMATION
CONVERTING EXISTING CYCLERY INTO FOOD STORE / DELI:
- REMOVING EXISTING PLUMBING FIXTURES AND ACCESSORIES IN EXISTING RESTROOM.
- INSTALLATION OF NEW PLUMBING FIXTURES AND ACCESSORIES IN- NEW NON-BEARING WALLS AS NOTED- REMOVING EXISTING NON-BEARING WALLS AS NOTED.

ACCESSIBLE RESTROOM AS NOTED.
- NEW ROOFTOP EQUIP. AND SCREENING- NEW ELECTRICAL AT REMODELED AREA - LIGHTING AND POWER. 2019 CALIFORNIA BUILDING ENERGY EFFICIENCY STANDARDS2019 CALIFORNIA GREEN BUILDING CODE2019 CALIFORNIA ELECTRICAL CODE2019 CALIFORNIA MECHANICAL CODE2019 CALIFORNIA PLUMBING CODE2019 CALIFORNIA FIRE CODE2019 CALIFORNIA RESIDENTIAL CODE2019 CALIFORNIA BUILDING CODE INCLUDING LOCAL AMENDMENTS.

ALL WORK SHALL COMPLY WITH THE FOLLOWING CODESAPPLICABLE CODES M
USE : RETAIL
TYPE OF CONSTRUCTION : TYPE VB
FIRE SPRINKLERS : YES
VICINITY MAP SCALE : 1/8" = 1'-0"

SITE PLAN
N

SITE PLAN KEYNOTES

SYMBOLS AND LEGEND
2% MAX. CROSS SLOPE

OF TRAVEL,
5% MAX. SLOPE IN DIRECTION

PATH OF TRAVEL / ACCESSIBILITY

1. EXISTING ENTRANCE / EXIT.

FOR DETAILS - SEE AD1 / DETAIL-5

THRESHOLD TO COMPLY WITH CURRENT ACCESSIBILITY STANDARDS, 2 ACCESSIBLE PATH OF TRAVEL. PATH OF TRAVEL SHALL HAVE A MAX.

TRAVEL SHALL BE 1/4" MAX.THE MAXIMUM VERTICAL CHANGE IN LEVEL ALONG THE PATH OF PATH OF TRAVEL SHALL BE WITH NO ABRUPT CHANGES.

SLOPE OF 5% IN DIRECTION OF TRAVEL AND 2% MAX. CROSS SLOPE

4. NOT AN ACCESSIBLE ENTRANCE - PROVIDE SIGN DIRECTING TOWARD

3. NEW GREASE INTERCEPTOR, SEE EQUIPMENT PLAN & SCHEDULE.

MAIN ENTRANCE, SEE AD1 / DTL.-11

PROJECT SITE
UNDER SEPARATE PERMIT.FIRE SPRINKLER SYSTEM AND FIRE ALARM ARE A DEFERRED SUBMITTAL

DEFERRED SUBMITTALS

SITE PLAN GENERAL NOTES

1. BUILDING ADDRESS SHALL BE POSTED VISIBLE AND LEGIBLE FROM THE DRIVE AREA.

2. IT IS THE OWNER'S AND THE CONTRACTOR'S RESPONSIBILITY TO PUBLIC IMPROVEMENTS.

THE INSPECTOR'S REVIEW OF THE CURRENT CONDITION OF THE SAID

REPAIRS REQUESTED BY THE PUBLIC WORKS INSPECTOR BASED ON

TO THE PROPOSED CONSTRUCTION ACTIVITIES AND TO ADDRESS ALL

REPAIR ALL DAMAGE TO THE EXISTING PUBLIC IMPROVEMENTS DUE FLOOR AREA :

OCCUPANCY GROUP :
2,250 SQ. FT.

M3 EQUIPMENT REFRIGERATION LINESM2 MECHANICAL PLANM1 NOTES AND DETAILS E2 LIGHTING AND POWER PLANE1 PANEL SCHEDULE
K5-10 HOOD DRAWINGSK4 MEP ROUGH INK3 EQUIPMENT SCHEDULEK2 FINISH SCHEDULEK1 KITCHEN COVER SHEET AD2 DETAILSAD1 DETAILSA5.0 BUILDING SECTIONSA4.0 BUILDING ELEVATIONSA3.0 REFLECTED CEILING PLANA2.0 EXIST./DEMO & T.I. FLOOR PLANA1.7 HVAC WORKSHEETA1.6 HVAC WORKSHEETA1.5 HVAC WORKSHEETA1.4 HVAC WORKSHEETA1.3 ROOF PLANA1.2 NOTESA1.1 EGRESS PLANA1.0 TITLE PAGE / SITE PLAN

AND NOTES
QE-02 WALK-IN COOLER DETAILSQ-02 WALK-IN COOLER PLAN & DETAILSQE-01 WALK-IN COOLER DETAILS & NOTESQ-01 WALK-IN COOLER PLAN T24.1 ENERGY CALCULATIONST24.0 ENERGY CALCULATIONS
P3.1 PLUMBING DETAILSP2.0 PLUMBING PLANSP1.1 PLUMBING SCHEDULEP1.0 PLUMBING NOTES S.C. STATE

BEACH PARKING
OCCUPANT LOAD : (SEE A1.1 OCCUPANCY CALCS.) 17 PERSONS

GENERAL NOTES

ALL WORK SHALL BE INSTALLED IN A NEAT WORKMANLIKE MANNER WITH OWNERS' ATTENTION PRIOR TO THE START OF ANY WORK.

BEGUN. ANY DISCREPANCIES SHALL BE BROUGHT TO DESIGNERS' OR

ALL DIMENSIONS SHALL BE VERIFIED BEFORE ANY CONSTRUCTION IS STANDARDS AND LOCAL ORDINANCES.)

GREEN BUILDING CODE, CALIFORNIA BUILDING ENERGY EFFICIENCY STANDARDS CODE ( 2019 CBC, CRC, CMC, CPC, CEC, CFC, CALIFORNIA ALL WORK SHALL BE DONE IN COMPLIANCE WITH THE 2019 CALIFORNIA AS
TRASH AND DIRT AND DUST CONTROL SHALL BE ADHERED TO. ALL LITTLE DISTURBANCE TO THE EXISTING TENANT AS POSSIBLE. STRICT

CUTTING
COORDINATED WITH THE GENERAL CONTRACTOR.CONFLICTS IN LOCATIONS OF FIXTURES SHALL BE WORKED OUT AND CONTRACTOR AND THE PAINTER.COORDINATE CUTTING AND PATCHING REQUIREMENT WITH THE DRYWALL AND PATCHING SHALL BE DONE IN A SAFE WORKMANLIKE MANNER.

MINIMUM PLUMBING FIXTURES CALCULATIONS CPC, TABLE 422.1 OCCUPANCY GROUP 8 OCCUPANTS / 2 = 4 EACH

M WATER CLOSETS LAVATORIES URINALS DRINKING FOUNTAIN SERVICE SINK

REQ'D PROVIDED REQ'D PROVIDED REQ'D PROVIDED REQ'D PROVIDED REQ'D PROVIDED 4 MALE 111100
0011
4 FEMALE 1111 00
OCCUPANT LOAD FACTOR CPC TABLE 422.1 TABLE A
NAME & USE OF SPACE GROUP OCC. (S.F.) AREA OCC. FACTOR LOAD OCC.

RETAIL M 789 200 4
SERVICE AREA M 157 200 1
PREP AREA M 82 200 1
COOKING M 172 200 1
WASHING M 132 200 1
TOTAL OCCUPANCY : 8

1. SEPARATE TOILET FACILITIES SHALL NOT BE REQUIRED
NOTE :

BY NO MORE THAN ONE PERSON AT A TIME. ( CPC 422.2 (3))

AND EMPLOYEES, ONE TOILET FACILITY, DESIGNED FOR USE
OCCUPANT LOAD OF 50 OR LESS INCLUDING CUSTOMERS

IN BUSINESS AND MERCANTILE OCCUPANCIES WITH A TOTAL

2. DRINKING FOUNTAIN NOT REQUIRED IF OCCUPANT LOAD 30
OR LESS. (CPC 415.2 ).

PLUMBING FIXTURES CALCULATION
NOTE-2
2 2
2 12"
12" MIN.

MIN.

AT UPPER LANDING

WHEEL GUIDE RAIL
34" - 38"
30'-0" MAX. RUN 5'-0" MIN. 6'-0" MIN.

AT LOWER LANDING

GUIDE RAIL OR CURB
< 4"
48" MIN. CLEAR
48" MIN. CLEAR
WHEEL GUIDE CURB < 4"
IF DROP-OFF IS GREATER THAN 4"
PROVIDE 6" HIGH CURBNOTE :
4" MIN.
34" - 38"
34" - 38"

DROP-OFF
NOTE : HANDRAILS REQUIRED IF RAMP RUN RISE GREATER THAN 6 INCHES.

HANDRAILS MUST EXTEND A MIN. OF 12" OF HORIZONTAL DISTANCE BEYOND TOP AND BOTTOM OF RAMP ENDS AND BEFORE THE START OF RETURN RADIUS.

BOTTOM GRIPPING SURFACE SHALL NOT BE OBSTRUCTED UP TO 20% OF

TOPS AND SIDES OF GRIPPING SURFACE SHALL NOT BE OBSTRUCTED

HANDRAILS MUST BE CONTINUOUS THE FULL LENGTH OF RUN
THE LENGH.

AT MAX. 1:12 SLOPE

CROSS SLOPE
MAX. 1:48
TYP. ACCESSIBLE RAMP SCALE : NTS
07/25/2022 7:45:00 AM
Revised

REVIEWED FOR CODE COMPLIANCE

CITY OF SAN CLEMENTE

BUILDING DIVISION
BY holdenj DATE 07/25/2022
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RESOLUTION NO. ZA 22-020

A RESOLUTION OF THE ZONING ADMINISTRATOR OF

THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING,
MINOR CONDITIONAL USE PERMIT 22-197, PRIMO FOOD

BEER AND WINE, A REQUEST TO ALLOW BEER AND

WINE SALES FOR OFF-SITE CONSUMPTION OFF-SITE
CONSUMPTION LOCATED AT 2801 EL CAMINO REAL
WHEREAS, on June 14, 2022, an application was submitted, and completed on September 27, 2022, by Sam Assi, 2801 South El Camino Real, San Clemente, CA, 92672; for Minor Conditional Use Permit (MCUP) 22-197, a request to allow beer and wine sales for off-site consumption at a grocery/food store. The site is located in the Mixed-Use 5.0 Zone within the Affordable Housing Overlay at 2801 South El Camino Real. The site’s legal description is Lot 1 of Block 1 of Tract 900 and Assessor’s Parcel Number 060-071-10; and
WHEREAS, the Planning Division has completed an initial environmental assessment of the above matter in accordance with the California Environmental Quality Act (CEQA) and recommends that the Zoning Administrator determine the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities). This is recommended because the project consists of permitting and licensing alcohol sales at an existing grocery/food store involving no expansion of the use; and
WHEREAS, the Development Management Team (DMT) reviewed the proposed project for compliance with the General Plan, Zoning Ordinance, and other applicable City ordinances and codes; and
WHEREAS, the City Planner advertised and noticed the Zoning Administrator public hearing for this item at least ten days in advance of the hearing by both publication in a newspaper of general circulation in the City of San Clemente and by mailing a notice of the time, place, and purpose of such hearing to required recipients, including property owners within 300 feet of the subject parcel; and
WHEREAS, on November 3, 2022, the Zoning Administrator of the City of San Clemente held a duly noticed public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties.

NOW, THEREFORE, The Zoning Administrator of the City of San Clemente does hereby resolve as follows:

Section 1. Incorporation of Recitals.

The Zoning Administrator hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the Zoning Administrator as fully set forth in this resolution.

ATTACHMENT 5
25 Section 2. CEQA Findings.

Based upon its review of the entire record, including the Staff Report, any public comments or testimony presented to the Zoning Administrator, and the facts outlined below, the Zoning Administrator hereby finds and determines that the proposed project is categorically exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities). The Class 1 exemption specifically exempts from further CEQA review the operation, permitting, licensing, or minor alteration of existing facilities with negligible or no expansions of the existing use. Since the project consists only of the permitting and licensing of the existing approved business for beer and wine sales, the project qualifies for the Class 1 exemption.

Furthermore, none of the exceptions to the use of the Class 1 categorical exemption identified in State CEQA Guidelines section 15300.2 apply. The project will not result in a cumulative impact from successive projects of the same type in the same place, over time. There are no unusual circumstances surrounding the project that result in a reasonable possibility of a significant effect on the environment. The project is not in a scenic corridor, will not alter or impact historic resources, and does not include any hazardous waste sites. The project consists of no physical modifications to the structure or the environment and involves only modifying the types of alcohol permitted to be served. Thus, the Class 1 exemption applies, and no further environmental review is required.

Section 3. Minor Conditional Use Permit Findings
With respect to Minor Conditional Use Permit (MCUP) 22-197 for the proposed sale of beer and wine at a grocery/food store for off-site consumption, the Zoning Administrator finds as follows:

A. The proposed use is permitted within the subject zone pursuant to the approval of a Minor Conditional Use Permit and complies with all the applicable provisions of the Zoning Ordinance, the San Clemente General Plan and the purpose and intent of the zone in which the use is being proposed, in that:

1. Beer and wine sale at a grocery/food store is a conditionally permitted use in the Mixed-Use 5.0 Zone; and

2. The proposed alcohol sale (for off-site consumption) is ancillary to the permitted grocery/food store use; and

3. The purpose and intent of the Mixed-Use 5.0 Zone is to accommodate a mix of neighborhood serving commercial and community serving commercial uses. Grocery/food stores are a typical use in this zone and are a type of general commercial use; and

4. The provisions of the Affordable Housing Overlay District do not apply to the project because there is no proposed residential development to the site; and
26 5. The General Plan Land Use Element establishes the following goal for the Commercial Land Uses in the City: “Achieve and maintain a healthy employment base with diverse retail, office, and service uses that: 1) meet citizens’ needs; 2) help generate municipal revenues that improve quality of life; 3) are compatible with adjacent residential neighborhoods; and 4) support the goals and policies of the Economic Development Element of the General Plan.” The project is consistent with this goal in that it allows for sale of beer and wine at a grocery/food store which could meet the needs of citizens to have a variety of commercial retail.

B. The site is suitable for the type and intensity of use that is proposed, in that:

1. The proposed beer and wine sale (for off-site consumption) is ancillary to a permitted grocery/food store use;

2. No modifications are proposed to the tenant space or the existing commercial retail operations other than to allow sales of beer and wine to be consumed off-site; and

3. The City’s Code Compliance Division and the Orange County Sheriff’s Department reviewed the proposed alcohol service and concluded alcohol can be sold and consumed off-site without compatibility issues, provided that operations comply with licensing requirements, conditions of approval, and with other applicable regulations.

C. The proposed use will not be detrimental to the public health, safety or welfare, or materially injurious to properties and improvements in the vicinity, in that:

1. The proposed use must comply with conditions of approval and code requirements to maintain the public health, safety, and welfare of the area, such as the Fire Code, California Building Code, Alcohol Beverage Control licensing requirements, and the Municipal Code. This includes but is not limited to requiring employees to receive alcohol service training to avoid the sale of alcoholic beverages to minors for consumption, limits on hours of operation, and requirements that limit amplified sound;

2. Should there be a compatibility issue, conditions of approval attached hereto as Exhibit A, allow the City to adjust operating hours and require noise abating measures if changes are necessary to ensure compliance with the noise ordinance and maintain the public health, safety, and welfare of the area; and

3. Code Compliance Staff and the Orange County Sheriff’s Department reviewed the proposed alcohol sales and concluded alcohol can be sold and consumed off-site without compatibility issues, provided that operations comply with licensing requirements, conditions of approval, and with other applicable regulations.
27 D. The proposed use will not negatively impact surrounding land uses, in that:

1. The proposed use must comply with conditions of approval and code requirements to maintain the public health, safety, and welfare of the area, such as the Fire Code, California Building Code, Alcohol Beverage Control licensing requirements, and the Municipal Code. This includes but is not limited to requiring employees to receive alcohol service training to avoid the sale of alcoholic beverages to minors for consumption, limits on hours of operation, and requirements that limit amplified sound;

2. Should there be a compatibility issue, conditions of approval attached hereto as Exhibit A, allow the City to adjust operating hours and require noise abating measures, if changes are necessary to ensure compliance with the noise ordinance and maintain the public health, safety, and welfare of the area;

3. Code Compliance Staff and the Orange County Sheriff’s Department reviewed the proposed alcohol service and concluded alcohol can be sold and consumed off-site without compatibility issues, provided that operations comply with licensing requirements, conditions of approval, and with other applicable regulations; and

4. The City has no record of code compliance complaints related to noise issues or other impacts from the business’s regular operations due to the proximity to residences in the area.

Section 4. Zoning Administrator Approval.

Based on the foregoing recitals and findings above, and the written and oral comments, facts, and evidence presented, the City of San Clemente Zoning Administrator approves Minor Conditional Use Permit (MCUP) 22-197, Primo Food Beer and Wine, subject to the Conditions of Approval set forth in Exhibit A.

PASSED AND ADOPTED at a regular meeting of the City of San Clemente Zoning Administrator on November 3, 2022.
___________________________________
Cecilia Gallardo-Daly, Zoning Administrator
28 Resolution No. ZA 22-020

CONDITIONS OF APPROVAL
MCUP 22-197, PRIMO FOOD BEER AND WINE

1.0 GENERAL CONDITIONS OF APPROVAL

1.1 Within 30 days of approval of this application, the applicant shall submit to the City Planner a signed acknowledgement concurring with all conditions of approval on a form to be provided by the City.

Failure to submit this acknowledgement may be grounds to revoke this approval.

Planning

1.2 The applicant shall defend, indemnify, and hold harmless the City of San Clemente and its officers, employees, and agents from and against any claim, action, proceeding, fines, damages, expenses, and attorneys’ fees, against the City, its officers, employees, or agents to attack, set aside, void, or annul any approval or condition of approval of the City concerning this project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Planner. Applicant shall pay all costs, The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter. If the applicant fails to so defend the matter, the City shall have the right, at its own option, to do so and, if it does, the applicant shall promptly pay the City's full cost of the defense.

Planning

1.3 Use and development of this property shall be in substantial conformance with the approved plans, material boards and other applicable information submitted with this application, and with these conditions of approval.

Planning

1.4 The applicant shall comply with all applicable current and future provisions of the San Clemente Municipal Code, adopted
ordinances, and state laws.

All

1.5 Use of the subject property shall conform to all occupancy requirements, including posting of signs related to the maximum occupancy limitations.

Code
Comp

1.6 No signage is approved through this permit. All signs, including permanent, window, and temporary signage shall comply with Zoning Ordinance, including issuance of any applicable required permits.

Code
Comp
**
29 Resolution No. ZA 22-020 Page 2

7.0 OPERATIONAL CONDITIONS OF APPROVAL

7.3 The sale of alcoholic beverages (beer and wine only) is for off-site consumption only, and shall be limited to the hours of 8:00 AM to 8:00 PM daily. No on-site consumption shall be allowed.

Planning

7.4 All employees shall receive Responsible Alcoholic Beverage Service training as offered through programs established by the Orange County Health Care Agency and Alcoholic Beverage Control of the State of California. Training shall be provided as soon as practical following the hire date of each employee.

Evidence of such training shall be maintained on-site during business hours, and made available for inspection by any city official upon request. (SCMC Section 17.16.070)
Code
Comp

7.5 A manager shall be on the premises at all times, and available to respond to issues raised by representative from the Orange County Sheriff’s Department, Orange County Fire Authority, or City of San Clemente Code Compliance, during the hours of operation when alcohol sales are occurring.

Code
Comp

7.7 These conditions of approval shall be posted in a conspicuous location clearly visible to employees to ensure they are informed of and adhere to requirements and policies for all operations of the business, including but not limited to alcohol sales.

Code
Comp

7.8 The use of amplified sound (including the electronically amplified sound of live music, human voice, or other sound within a business, restaurant, bar, or other commercial establishment) shall not be permitted. This prohibition does not include the indoor use of televisions, radios, or reasonable background or ambient music.

Code
Comp*

7.17 The Applicant shall post a sign or notice at the premises that states, “WARNING: DRINKING WINE, BEER AND OTHER

ALCOHOLIC BEVERAGES DURING PREGNANCY CAN CAUSE
BIRTH DEFECTS. FOR INFORMATION AND MATERIALS

RELATING TO FETAL ALCOHOL SYNDROME, CONTACT
YOUR LOCAL MARCH OF DIMES.” The notice or sign shall be posted or displayed at the premises in the manner provided for in San Clemente Municipal Code, Title 8 – Health and Safety. [Citation - Section 8.08.010 of the SCMC]
Code
Comp**

7.18 Discharge of wash water and other pollutants is prohibited from entering the storm drain system. Applicant must prevent pollutants (e.g. sediment, trash, food waste etc.) and any wash water used during cleanup from entering the storm drain system.

Code
Comp
WQ**
30 Resolution No. ZA 22-020 Page 3

7.19 The Applicant shall use her/his best judgment and best management practices to ensure commercial activities on the premises will be conducted in a manner that will not be disruptive to neighbors. The business owner/property owner shall be responsible for ensuring compliance with the San Clemente Municipal Code (SCMC), and all conditions of approval contained herein. The Applicant (including any property owners and managers, and their designees) hereby understands that
noncompliance with regulations and conditions of approval, shall be immediate grounds for citation pursuant to SCMC Section

8.52.030(Y), which states, “It is declared a public nuisance for any person owning, leasing, occupying or having charge or possession of any premises in this City to maintain such premises in such manner that … A structure, improvement, property, and/or land use is not in compliance with terms and/or conditions of any City of San Clemente issued permit or approval,” and any subsequent revision of this section of the code. [Citation - Section 8.52.030(Y) of the SCMC]
Code
Comp**

7.20 The Applicant shall use his/her best judgment and best management practices to ensure activities on the premises will be conducted in a manner that will not be disruptive to other commercial or residential neighbors and result in police services, which cost the City of San Clemente expense.

Code
Comp
OCSD**

7.21 The Applicant (including any property owners and managers, and their designees) shall be responsible for ensuring that no noisegenerating activities on the subject property are conducted between the hours of ten (10:00) p.m. and seven (7:00) a.m. Such prohibited activities include, but are not limited to, dumping trash into outside trash bins, the use of parking lot sweepers, the use of high-pressure washers, or other maintenance or delivery activities which generate noise having the potential of disturbing neighboring properties. [Citation - Section 8.48.070(P) of the SCMC] Code
Comp**

7.22 The Applicant understands and acknowledges sound amplification devices located outside any business’s primary building are not permitted, unless specifically identified and approved in this permit or subsequent permits approved by the City. [Citation - Section

8.48.080 of the SCMC]
Code
Comp**

7.23 The Applicant (including any property owners and managers, and their designees) shall abide by all applicable laws, including Orange County Health Department and the California Department of Alcoholic Beverage Control (ABC) laws.

Code
Comp
OCHCA
ABC**

7.24 The Applicant shall rectify any outstanding violations within two weeks of the approval of this permit.

Planning*
*
31 Resolution No. ZA 22-020 Page 4
* Denotes a modified Standard Condition of Approval
** Denotes a project specific Condition of Approval
32 These minutes will be approved by the Zoning Administrator on 12/22/2022

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING

OF THE ZONING ADMINISTRATOR
NOVEMBER 3, 2022
San Clemente City Hall
First Floor Community Room
910 Calle Negocio
San Clemente, California 92673

1. CALL TO ORDER
Zoning Administrator Gallardo-Daly called the Regular Meeting of the City of San Clemente Zoning Administrator to order on November 3, 2022 at 3:00 p.m. The meeting was held in the First Floor Community Room of City Hall, 910 Calle Negocio, and San Clemente, California.

Staff Present: Cecilia Gallardo-Daly, Zoning Administrator Sara Toma, Senior Planner
. Christopher Johnson, Senior Planner
Laura Coury, Assistant Planner
Tamara Tatich, Office Specialist

2. MINUTES

3. A. Receive and file Minutes from the October 6, 2022 Zoning Administrator Meeting.

B. Receive and file Minutes from the October 20, 2022 Zoning Administrator Meeting.

ORAL AND WRITTEN COMMUNICATION
None

4. PUBLIC HEARING
A. MCUP 22-197, PRIMO FOODS BEER AND WINE, 2801 S. EL CAMINO REAL (Coury)
A request to consider beer and wine sales at Primo Foods, Grocery/Food Store for off-site consumption, with hours of operation from 8am-8pm daily. The project does not propose changes to the existing market.

ATTACHMENT 6
33 34
Minutes of the Zoning Administrator Meeting November 3, 2022 Page 2

5. Staff recommends that the project be found Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class1: Existing Facilities).

Associate Planner Laura Coury summarized the staff report.

Staff confirmed with ZA Gallardo-Daly that there were no communications received regarding the Minor Conditional Use Permit.

ZA Gallardo-Daly gave applicants Ruth Flores and Sam Assi an opportunity to address the Zoning Administrator. Ms. Flores gave a brief history of Primo Foods, which was founded twenty years ago in San Diego. This is their first venture in Orange County and they are excited to be in the community.

ZA Gallardo-Daly reviewed the staff reports and is familiar with the location and the neighboring new residential community. ZA Gallardo-Daly was able to make the findings for the Minor Conditional Use Permit The proposed beer and wine sales is a conditionally permitted use in the Mixed Use 5.1 Zone. The project maintains the primary use of the site as a grocery/food store and the proposed offsite beer and wine sales is ancillary, doesn't intensify the use, no additional parking is required, the store is closes at 8:00 p.m., and the project is conditioned to comply with all the requirements of the fire code, building code and Alcohol Beverage Control.

Based on the information in the staff report and subject to the required Findings and Conditions of Approval, ZA Gallardo-Daly determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

Action: The Zoning Administrator adopted Resolution ZA22-020, and approved Minor Conditional Use Permit 22-197, Primo Foods Beer and Wine, subject to the Conditions of Approval.

NEW BUSINESS
None

6. OLD BUSINESS
None

7. ADJOURNMENT
The meeting adjourned at 3:10 p.m. to the Regular Meeting of the Zoning Administrator, which will be held Thursday, November 17, 2022 at 3:00 p.m. at 35 Minutes of the Zoning Administrator Meeting November 3, 2022 Page 3 Community Development Department, City Hall, First Floor Community Room, located at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,

SAN CLEMENTE ZONING ADMINISTRATOR
Cecilia Gallardo-Daly, Zanin

CITY OF SAN CLEMENTE
Tuesday, February 7, 2023 5:00 PM
City Council
Regular Meeting Minutes
5:00 p.m. - Closed Session
6:00 p.m. - Business Meeting
Mayor Duncan
Mayor Pro Tem Knoblock
Councilmember Cabral
Councilmember Enmeier
Councilmember James
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

A Regular Meeting of the San Clemente City Council was called to order by Mayor Duncan on February 7, 2023 at 5:00 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

PRESENT: Cabral, Enmeier, James, Knoblock and Mayor Duncan STAFF PRESENT: Sean Joyce, Interim City Manager; Scott Smith, City Attorney; Laura Campagnolo, City Clerk; Megan Jimenez,
Deputy City Clerk

CLOSED SESSION
Concerned Resident, San Clemente, narrated a Powerpoint presentation concerning City Attorney Smith. A hard copy of the presentation is on file with the City Clerk.

AQ expressed concern regarding City Attorney Smith and legal interpretations.

City Attorney Smith announced that he will recuse himself on Closed Session Item B due to a financial interest.

Motion by Councilmember James, second by Councilmember Cabral, CARRIED 5-0, to recess at 5:08 p.m. to Closed Session to discuss the following:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code section 54956.9 (d)(1) Number of Cases: 1
Case Name: City of San Clemente v. Foothill/Eastern Transportation Corridor Agency, et. al.

Riverside Superior Court Consolidated Case No.: RIC 1800232 CA Court of Appeal Case No.: E078045 (Fourth Appellate District, Division 2) B. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957
Title: City Attorney