San Clemente City Council
March 5, 2024

910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
Mayor Cabral
Mayor Pro Tem Enmeier
Councilmember Duncan
Councilmember Knoblock
Councilmember Loeffler
4:30 p.m. - Closed Session (Special Meeting)
6:00 p.m. - Business Meeting (Regular Meeting)

CITY OF SAN CLEMENTE
Tuesday, March 5, 2024
City Council
Special and Regular Meeting Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

RULES FOR ADDRESSING COUNCIL
• Members of the public may address the City Council on matters within the jurisdiction of the City of San Clemente.
• If you wish to address Council, please complete one of the blue speaker cards located at the entrance to the Council Chambers and turn it in to the City Clerk or Deputy City Clerk. • Persons wishing to address Council concerning an agendized item will be invited to address Council during the time that Council is considering that particular agenda item.

Persons wishing to address Council concerning a non-agendized issue will be invited to address Council during the “Oral Communications” portion of the meeting. • When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Please limit your presentation to three minutes.

MISSION STATEMENT
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:

Maintaining a safe, healthy atmosphere in which to live, work and play; Guiding development to ensure responsible growth while preserving and enhancing our village character, unique environment and natural amenities; Providing for the City’s long-term stability through promotion of economic vitality and diversity…
Resulting in a balanced community committed to protecting what is valued today while meeting tomorrow’s needs.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The California Environmental Quality Act (“CEQA”) is the state law that requires the City to evaluate and document the potential environmental consequences of discretionary decision. (See, California Public Resources Code Sections 21000-21189.3; and the “CEQA Guidelines” at California Code of Regulations Title 14, Division 6, Chapter 3, Sections 15000-15387). For each item that requires a CEQA determination by the City Council, there is a reference to that determination on this agenda, and more information regarding the CEQA analysis is included in the documents that accompany this agenda. To the extent that City staff determines that particular items are not subject to CEQA, there will be no indication of a CEQA action on this agenda.

1 City Council Special and Regular Meeting Agenda March 5, 2024

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS
Pursuant to Government Code § 84308, City Council Members are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the City Council Member received more than $250 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City’s decision on the agenda item since January 1, 2023. Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a City Council Member since January 1, 2023, are required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration.

CLOSED SESSION (4:30 P.M.) (Special Meeting)
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 2

1. Case Name: Harbor View Estates Homeowners Association v. City of San Clemente, Orange County Superior Court Case No. 30-2024-01371169 -CU-WM-CXC

2. Case Name: George Zeber, et al. vs. City of San Clemente, Orange County Superior Court Case No. 30-2021-01191580-CU-EI-CXC
B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(a)(d) (2)
Number of Cases:1

1. Facts and Circumstances per Government Code section 54956.9(e)(1): Facts and circumstances that might result in litigation against the City that the City believes are not yet known to a potential plaintiff or plaintiffs.

BUSINESS MEETING (6:00 P.M.) (Regular Meeting)

CALL TO ORDER
INVOCATION – Margaret Hill, San Clemente Stake Young Women's President, Church of Jesus Christ of Latter-day Saints

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
A. Community Outreach Program Update
Presentation by Community Development Director Atamian concerning an update on the Community Outreach Program.

2 City Council Special and Regular Meeting Agenda March 5, 2024

2. Oral Communications (Part 1)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. Speakers may address Council once during either Oral Communications Part 1 or Part 2. A total time limitation of 30 minutes is allocated for Oral Communications Part 1, with each speaker being allotted 3 minutes in which to give his or her presentation. Speaker order is determined by the order in which speaker cards are provided to the City Clerk or Deputy City Clerk at the meeting. Speakers that cannot be accommodated during Oral Communications Part 1 will be invited to address Council during Oral Communications Part 2, which appears on this agenda as Item No. 10. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Under the Ralph M. Brown Act, the City Council cannot act on items raised during public comment but may respond briefly to statements made or questions posed, request clarification or refer the item to staff.

3. Motion waiving reading in full of all Resolutions and Ordinances

4. Consideration of agendizing items requiring immediate action Any items agendized will be considered under New Business, unless otherwise determined by a majority vote of the City Council.

5. Closed Session Report - City Attorney

6. Staff Communications

7. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.

None.

8. Unfinished Business
8A. ADOPT ORDINANCE NO. 1773 (SECOND READING) - SAFE GUN STORAGE Staff Recommendation
Adopt Ordinance No. 1773 entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING CHAPTER

9.04 - OFFENSES AGAINST PUBLIC PEACE AND DECENCY, OF THE SAN CLEMENTE MUNICIPAL CODE TO ADD NEW SECTION 9.04.045, RELATING

TO SAFE STORAGE OF FIREARMS, AND FINDING THE ORDINANCE NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

3 City Council Special and Regular Meeting Agenda March 5, 2024 8B. CONSIDERATION OF AUTHORIZING A GRANT IMPLEMENTATION

AGREEMENT WITH THE COUNTY OF ORANGE FOR THE SOUTH ORANGE

COUNTY INTEGRATED REGIONAL WATER MANAGEMENT GRANT
PROPOSITION 1 ROUND 2 GRANT FUNDING PROGRAM UNDER THE

CALIFORNIA DEPARTMENT OF WATER RESOURCES FOR THE

RECYCLED WATER QUALITY IMPROVEMENT PROJECT
Staff Recommendation
Adopt Resolution No. 24-28, which will:
..recommendation

1. Approve, and authorize the City Manager to execute, Contract No. C24- 12, a Grant Implementation Agreement by and between the City of San Clemente and the County of Orange, to receive the South Orange County Integrated Regional Water Management (IRWM) Grant Proposition 1 Round 2 grant funding, in the amount of $700,000, for the Recycled Water Quality Improvement Project and documents related thereto.

2. Authorize the City Manager or his/her designee to accept and deposit the grant funding reimbursement ($700,000) into the Sewer Connection Fee Reserve Fund, Account No. 054-477-45300-000-13203.
8C. CONTINUANCE OF NO ACTION ON CONDITIONAL PERMIT 1021 RELATED TO THE PROPERTY LOCATED AT 616 DEL DIOS, ASSESSOR’S PARCEL NUMBER 690-552-05
Staff Recommendation
Continue the abeyance of the revocation of Conditional Permit 1021 until July 31, 2024, which would maintain the status quo until that date. 8D. CONSIDERATION OF COUNCILMEMBER TRAVEL AND TRAINING

EXPENSES
Staff Recommendation
Authorize an expenditure of up to $110 related to City Councilmember Duncan’s mileage reimbursement to attend at the 2024 March Cal Cities Governance, Transparency and Labor Relations Policy Committee Meeting.

9. New Business
9A. CONSIDERATION OF ITEMS FOR ESTABLISHING THE ARTS & CULTURE COMMITTEE 2024 WORK PLAN
Staff and the Arts and Culture Committee Recommendation Adopt Resolution No. 24-29 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING THE ARTS AND CULTURE COMMITTEE 2024 WORK PLAN.

4 City Council Special and Regular Meeting Agenda March 5, 2024 9B. CONSIDERATION OF AUTHORIZING A LEASE WITH THE STATE LANDS

COMMISSION FOR USE AND MAINTENANCE OF PUBLIC BEACH ACCESS

FACILITIES AT LINDA LANE, EL PORTAL AND MARIPOSA AND FINDING

THE PROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT, CLASS 1
Staff Recommendation
Adopt Resolution No. 24-30, which will:

1. Find the project categorically exempt under the California Environmental Quality Act (CEQA) under Class 1, Section 15301 of the state CEQA Guidelines (Existing Facilities, 14 CCR 15301).

2. Approve, and authorize the City Manager to execute, Contract No. C24- 13, a Lease agreement, by and between the City of San Clemente and the State Lands Commission, for the use and maintenance of public beach access facilities at Linda Lane, El Portal and Mariposa. 9C. CONSIDERATION OF AMENDING THE TERM SHEET FOR SALTY TURF LLC

RELATED TO THE DEVELOPMENT OF A MINIATURE GOLF FACILITY AT VISTA HERMOSA SPORTS PARK; AND FINDING THAT THE MINIATURE GOLF PROJECT IS CATEGORICALLY EXEMPT FROM (14 CCR 15301 AND 15303) AND/OR THAT NO SUPPLEMENTAL REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT IS NECESSARY (14 CCR 15162 AND 15164)
Staff Recommendation
Adopt Resolution No. 24-31, which will:

1. Find that the miniature golf project is categorically exempt under Sections 15301 and 15303 and/or that no supplemental review is necessary under Sections 15162 and 15164 of the California Environmental Quality Act (“CEQA”) Guidelines (14 CCR 15162 and 15164).

2. Authorize the City Manager to execute an amendment to the Term Sheet with Salty Turf LLC to include a decrease in the Gross Percentage of Sales and incorporate a maximum amount of rent.

3. Authorize the City Manager to finalize negotiations and execute a Lease Agreement with Salty Turf, LLC for the development of a 36-hole miniature golf facility for public recreation purposes at the Vista Hermosa Sports Park in the 1.2-acre area designated as lease space within the La Pata/Vista Hermosa Master Plan in a form approved by the City Attorney and consistent with the amended Term Sheet.

5 City Council Special and Regular Meeting Agenda March 5, 2024 9D. CONSIDERATION OF A RESOLUTION IN SUPPORT OF AB 2081 -

ALCOHOL AND DRUG ABUSE TREATMENT FACILITIES
(Councilmember Knoblock with the support of Councilmember Loeffler, agendized at the February 20, 2024 City Council meeting.) Staff Recommendation
Consideration of adopting Resolution No. 24-32 entitled A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, SUPPORTING LEGISLATION, ASSEMBLY BILL 2081, RELATING TO ALCOHOL AND DRUG ABUSE TREATMENT FACILITIES.
9E. CITY MANAGER COMPENSATION REVIEW AND CONSIDERATION OF

AUTHORIZING A FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT

WITH CITY MANAGER ANDY HALL IMPLEMENTING AN EXECUTIVE LEVEL

SALARY ADJUSTMENT
(Councilmember Knoblock, with the support of Mayor Pro Tem Enmeier and Councilmember Duncan, agendized at the February 20, 2024 City Council meeting.)
Staff Recommendation
Provide direction to staff, make an oral report summarizing the proposed action, and, if desired, consider Resolution No. 24-33, which, if adopted, would approve a 2.99% salary increase for the City Manager effective February 20, 2024.

10. Consent Calendar
All items listed on the Consent Calendar are considered to be routine and will be enacted by one motion without discussion unless Council or Staff requests removal of an item for separate discussion and action.
10A. City Council Minutes
Staff Recommendation:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF FEBRUARY 20, 2024.
10B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
(1) BEACHES, PARKS & RECREATION COMMISSION REGULAR
MEETING MINUTES OF DECEMBER 12, 2023.
(2) BEACHES, PARKS & RECREATION COMMISSION SPECIAL MEETING MINUTES OF JANUARY 22, 2024.

6 City Council Special and Regular Meeting Agenda March 5, 2024 (3) ARTS AND CULTURE COMMITTEE SPECIAL MEETING MINUTES OF JANUARY 22, 2024.
(4) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF
FEBRUARY 8, 2024.
(5) ARTS AND CULTURE COMMITTEE SPECIAL JOINT MEETING
MINUTES OF FEBRUARY 12, 2024.
(6) HUMAN AFFAIRS COMMITTEE REGULAR MEETING MINUTES OF
FEBRUARY 13, 2024.
(7) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF
FEBRUARY 22, 2024.
10C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
2986 THROUGH 2991 AND WARRANT NOS.
594004 THROUGH 594169, PAID ON
1-26-24, IN THE AMOUNT OF $861,233.08
(2) APPROVE WIRE TRANSFER NOS.
2992 THROUGH 2998 AND WARRANT NOS.
594170 THROUGH 594373, PAID ON
2-2-24, IN THE AMOUNT OF $4,505,314.44
(3) APPROVE HANDWRITE NO. 594546,
WIRE TRANSFER NOS. 2999 THROUGH
3002 AND WARRANT NOS. 594374
THROUGH 594545, PAID ON 2-9-24,
IN THE AMOUNT OF $2,659,134.95
(4) APPROVE WIRE TRANSFER NOS.
3003 THROUGH 3004 AND WARRANT NOS.
594547 THROUGH 594700, PAID ON
2-16-24, IN THE AMOUNT OF $952,448.49
TOTAL WARRANT REGISTER $8,978,170.96
Payroll Register
WARRANT NO. 922 AND AUTOMATIC
DEPOSIT ADVISES 91469 THROUGH
91772, FOR THE PERIOD 3-21-22
THROUGH 4-3-22, PAID ON 4-8-22,
IN THE AMOUNT OF $479,666.26

7 City Council Special and Regular Meeting Agenda March 5, 2024 WARRANT NO. 923 AND AUTOMATIC
DEPOSIT ADVISES 91773 THROUGH
92076, FOR THE PERIOD 1-22-24
THROUGH 2-4-24, PAID ON 2-9-24,
IN THE AMOUNT OF $485,402.57
TOTAL PAYROLL REGISTER $965,068.83
10D. CONSIDERATION OF A RESOLUTION TO ACCEPT AND FILE NOTICE OF

COMPLETION FOR THE CYPRUS SHORE SEWER PUMP STATION
RELOCATION, PROJECT NO. 12210
Staff Recommendation
Adopt Resolution No. 24-34, which will:

1. Accept the Cyprus Shore Sewer Pump Station Relocation, Project No. 12210, from the contractor, O’Connell Engineering and Construction, Inc.

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the completed Cyprus Shore Storm Drain Emergency Relocation.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, O’Connell Engineering and Construction, Inc.
10E. NOTICE OF COMPLETION - AQUATIC CENTER MAIN POOL REPLASTER Staff Recommendation
Adopt Resolution No. 24-35, which will:

1. Accept Aquatic Center Main Pool Replaster, Project No. 12808, from the contractor, Condor, Inc.

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the completed Aquatic Center Main Pool Replaster.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, Condor, Inc.

8 City Council Special and Regular Meeting Agenda March 5, 2024

11. Oral Communications (Part 2)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation, not to exceed three minutes. Under the Ralph M. Brown Act, the City Council cannot act on items raised during public comment but may respond briefly to statements made or questions posed, request clarification or refer the item to staff.

12. Future Agenda Items

13. Reports
A. Commissions and Committees
B. Council Subcommittee Updates
C. Council Members
D. City Attorney
E. City Manager

14. Adjournment
The next Regular City Council Meeting is scheduled to take place on March 19, 2024. Closed Session will begin at 5:00 p.m. and the Regular Business Meeting will begin at 6:00 p.m. The meeting will take place in the Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

9 City Council Special and Regular Meeting Agenda March 5, 2024

CITY COUNCIL MEETING PROCEDURES

PRESENTATION OF WRITTEN MATERIALS TO COUNCIL
In order to ensure that Councilmembers have adequate time to consider written materials concerning agenda items, it is strongly recommended that such materials be submitted to the City Clerk by noon the date preceding the Council meeting.

MEETINGS RECORDED AND TELEVISED
City Council meetings are broadcast live and are replayed periodically on Cox Communications Local Access Channel 854. Meetings are also available for live-stream or post meeting viewing from the City’s website.

Meetings are also recorded via audio CD and/or DVD and retained as a City record in accordance with the City’s records retention schedule.

USE OF ELECTRONIC VISUAL AIDS BY PUBLIC AT MEETINGS
To allow staff adequate time to confirm software compatibility, individuals wishing to utilize electronic visual aids to supplement their oral presentations at the meeting, must submit the electronic files to the City Clerk by no later than 12:00 p.m. on the day of the meeting. Only compatible electronic formats will be permitted to be used on City audio/visual computer equipment. Staff makes no guarantee that such material will be compatible, but will use its best efforts to accommodate the request.

LENGTH OF MEETINGS
At 11:00 p.m., the City Council will determine which of the remaining agenda items can be considered and acted upon at this meeting and will continue all other agenda items to a future meeting.

AMERICANS WITH DISABILITIES ACT
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 361-8200. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

COMMUNICATION DEVICES
To minimize meeting distractions and sound system interference, please be sure all personal communication devices are turned off or on silent mode.

MEETING SCHEDULE
Regular Council Meetings are held on the first and third Tuesdays of each month in the Council Chambers, located at 910 Calle Negocio, 2nd floor, San Clemente. Closed Session are considered at 5:00 p.m. and the Business Meeting begins at 6:00 p.m. Additional meetings of the City Council may be called as needed.

AGENDAS, ADMINISTRATIVE REPORTS AND SUPPLEMENTAL WRITTEN MATERIALS Agendas and Administrative Reports are available for review and/or copying at the City Clerk’s Department as soon as agendas are posted, by accessing the City’s website at www.san-clemente.org. An “Inspection Copy” of agenda materials is also located at the entrance to the Council Chambers during meetings for public review. All written material distributed to a majority of the Council after the original agenda packet was distributed is available for public inspection in the City Clerk’s Department, located at 910 Calle Negocio, San Clemente, during normal business hours.

The City Clerk’s Department offers an agenda packet subscription service free of charge. If you wish to receive email copies of City Council agendas, which include hyperlinks to staff reports and other back-up material, register at http://san-clemente.org/enotification.

10 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 5, 2024 Agenda Item: 8A.
11 ORDINANCE NO. 1773

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AMENDING CHAPTER

9.04 - OFFENSES AGAINST PUBLIC PEACE AND

DECENCY, OF THE SAN CLEMENTE MUNICIPAL CODE
TO ADD NEW SECTION 9.04.045, RELATING TO SAFE

STORAGE OF FIREARMS, AND FINDING THE

ORDINANCE NOT SUBJECT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of San Clemente has authority to enact laws that protect the public health, safety and general welfare of its residents pursuant to the police power delegated to it by the California Constitution; and
WHEREAS, having a firearm in the home that is easily accessible to children, those struggling with mental health issues, and criminals, increases firearm related injuries, deaths, and crimes, creating significant local and national public health impacts; and
WHEREAS, research indicates that these impacts are reduced when firearms are locked up or disabled with a trigger lock (secured); and WHEREAS, firearm-related deaths in the United States are the leading cause of injury-related deaths in children between the ages of 1 and 17; and WHEREAS, it is estimated that 4.6 million children in the United States live in a home with unsecured firearms; and
WHEREAS, studies show that unsecured firearms are frequently accessible to and accessed by young children, even when their parents believe their firearms are not accessible; and
WHEREAS, 73% of children ages 9 and under reported knowing the location of their parent's firearms, and 36% of those children admitted that they had handled the firearms, including children whose parents had reported their children did not know the location of their firearms; and
WHEREAS, evidence shows that the presence of a firearm in a home with children substantially increases the risk of suicide and accidental shootings, but that these risks are lower in homes where firearms are secured; and
WHEREAS, suicide attempts often are impulsive acts, with one study finding that 24% of nearly lethal suicide attempts by individuals 13 to 34 years of age occurred within five minutes of their decision to attempt suicide; and
12 Ordinance No. 1773 Page 2
WHEREAS, secured firearms impede the opportunity for impulsive suicide attempts, giving suicidal individuals time to contact family, friends, and health-care professionals, and giving others time to react; and
WHEREAS, data between 2004 and 2014 from the Centers for Disease Control shows that among minors between the ages of 10 and 17, firearms were used in just 9% of youth suicides in Massachusetts, a state that has child firearm access prevention laws, compared to 39% of youth suicides nationally, and that the overall suicide death rate among youth in Massachusetts is 35% below the national average; and WHEREAS, an April 2019 study of pediatric gunshot wounds identified children ages 0- 15 years who were admitted to a Houston trauma center from 2001 to 2016 and concluded that many of the gun shot injuries could have been prevented with safe firearm storage, increased community education efforts, and other safety measures; and WHEREAS, the RAND Corporation analyzed scientific literature on firearm laws and concluded that child firearm access prevention laws reduce firearm self-injuries (including suicides) and unintentional firearm injuries and deaths among children; and WHEREAS, in 2012, the United States Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), reported that lost and stolen firearms pose a substantial threat to public safety and to law enforcement; and WHEREAS, requiring the safe storage of firearms will reduce the number of firearms stolen during household burglaries or other property crimes, as about 93% of firearm thefts between 2005 and 2010 occurred during property crimes; and WHEREAS, in 83% of burglaries and 85% of other property crimes that involved a stolen firearm, none of the stolen firearms had been recovered; and WHEREAS, lost and stolen firearms are used to commit violent crimes, are often bought and sold in an unregulated secondary market where law enforcement is unable to trace transactions, and are transferred to others who commit crimes or are prohibited by law from possessing a firearm; and
WHEREAS, states that require firearms to be secured have a firearm theft rate below the national average; and
WHEREAS, the National Rifle Association (NRA) safety rules instruct gun owners to store guns so they are not accessible to unauthorized persons; and WHEREAS, the California Attorney General advocates for secure storage of firearms using safety devices, such as a trigger lock or cable lock, or locked containers, such as a lock box or a gun safe; and
WHEREAS, the International Association of Chiefs of Police advocates for responsible firearms owners to secure their firearms from theft and from misuse by using safes, trigger locks, and monitored alarm systems; and
13 Ordinance No. 1773 Page 3
WHEREAS, this Ordinance requires firearms to be secured with trigger locks, in a locked container, on the person, or in the person's immediate control, and does not substantially burden a person's right or ability to use firearms for self-defense in the home; and
WHEREAS, this Ordinance applies only to firearms that are not being carried on the person or in the person's immediate control; and
WHEREAS, under this Ordinance, a person may carry loaded and unlocked firearms in the home at any time, and loaded firearms may be securely stored; and WHEREAS, the Legislature of the State of California has not, expressly or by implication, preempted the regulation of safe residential firearm storage; and WHEREAS, the Council of the City of San Clemente finds that this Ordinance addresses the risks posed by unsecured firearms in the home and will help prevent accidental shootings, teen suicides, and residential firearm thefts; and WHEREAS, the Council of the City of San Clemente finds and declares that this Ordinance will preserve the peace and protect the public health, safety, and general welfare of the residents of the City of San Clemente by reducing firearms-related injuries and crime; and
WHEREAS, the Council of the City of San Clemente further finds it is within its police power to implement and enforce the provisions of this Ordinance; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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

Section 1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated as findings as if fully set forth herein.

Section 2. CEQA. The City Council finds that this Ordinance is not a “project” subject to the California Environmental Quality Act (CEQA). The Ordinance does not qualify as a project because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, § 15378, subd. (a).) The language merely prohibits, absent an applicable federal or state preemption, the unsecured storage of firearms on residential properties. In the alternative, the City Council finds that the Ordinance falls within the “common sense” exemption set forth in State CEQA Guidelines section 15061, subdivision (b)(3), which exempts activity from CEQA where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Here, it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment because the Ordinance simply prohibits the unsecured storage of firearms on residential properties; the Ordinance will not result in any development or in any new activity with the potential to impact the environment. 14 Ordinance No. 1773 Page 4
Section 3. Code Amendment. Section 9.04.045 is hereby added to the San Clemente Municipal Code and shall read in its entirety as follows:
“9.04.045 - Residential Safe Storage of Firearms.

A. Purpose and Intent. It is the purpose and intent of this section that the storage of firearms in residences within the City of San Clemente be regulated for the protection and health of the public and to prevent firearm access by a person who is not the authorized user of a firearm.

B. Definitions. For the purposes of this section, defined terms appear in italics. The following definitions apply in this section:

1. Accessory structure and accessory building have the same meaning as in San Clemente Municipal Code section 17.88.030.

2. Authorized user means a person who is not prohibited from owning or possessing a firearm.

3. Firearm means any weapon from which a missile, such as, but not limited to, a bullet, ball, or shell, is hurled by an explosive.

4. Locked container has the same meaning as in California Penal Code section 16850.

5. Person has the same meaning as in San Clemente Municipal Code section 1.04.020.

6. Residence means any structure intended or used for human habitation including, without limitation, houses, townhouses, condominiums, apartments, and mobilehomes.

7. Structure and building have the same meaning as in San Clemente Municipal Code section 17.88.030.

8. Trigger lock means a firearm safety device approved by the California Department of Justice Bureau of Firearms in accordance with California Penal Code section 23635.

C. Prohibition. It is unlawful for any person to keep a firearm within any residence, including its accessory structures or accessory buildings, whether attached or detached, unless the firearm is stored in a locked container or disabled with a trigger lock.

D. Exceptions. Subsection C shall not apply in the following circumstances:

1. The firearm is carried on the body of a person who is an authorized user of the firearm, or
15 Ordinance No. 1773 Page 5

2. The firearm is in the immediate control of the authorized user so that the person can readily retrieve and use the firearm as if carried on the person's body.

E. Reporting Lost or Stolen Firearms. In order to encourage reports to law enforcement agencies of lost or stolen firearms, a person who files a report with a law enforcement agency notifying the agency that a firearm has been lost or stolen shall not be subject to prosecution for violation of this section for the firearm that is reported lost or stolen.

Section 4. Publication. The City Clerk shall certify to the adoption of this Ordinance by the City Council and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code section 36933.

Section 5. Conflicts with Prior Ordinances. In the event that any City ordinance or regulation, in whole or in part, adopted prior to the effective date of this Ordinance, conflicts with any provisions in this Ordinance, the provisions in this Ordinance will control.

Section 6. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.

Section 7. Severability. If any provision of this Ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable.

The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

Section 8. Effective Date. This Ordinance shall become effective 30 days after its adoption.

APPROVED AND ADOPTED this ____ day of _______________, 2024.

ATTEST:
_______________________________ ___________________________ City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
16 Ordinance No. 1773 Page 6

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. 1773 having been regularly introduced at the meeting of _______________, 2024, 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 ____, 2024, 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 ____________, 2024. __________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_______________________________
Elizabeth A. Mitchell, CITY ATTORNEY
17 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 5, 2024 Agenda Item: 8B.

Submitted By: Public Works
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

THE GRANT IMPLEMENTATION AGREEMENT WITH THE COUNTY OF ORANGE FOR THE

SOUTH ORANGE COUNTY INTEGRATED REGIONAL WATER MANAGEMENT GRANT PROPOSITION 1 ROUND 2 GRANT FUNDING PROGRAM UNDER THE CALIFORNIA

DEPARTMENT OF WATER RESOURCES FOR THE RECYCLED WATER QUALITY IMPROVEMENT PROJECT, PROJECT NO. 13203 ..body
Fiscal Impact:

This action would approve reimbursement to the City of $700,000 from State grant funds upon successful completion of the Recycled Water Quality Improvement Project (Project). Total project costs are estimated at less than $13 million.

Summary:

Staff, in collaboration with the County of Orange, submitted an application to the Integrated Regional Water Management (IRWM) Grant Program and successfully received a grant allocation in the amount of $700,000 for construction of the Recycled Water Quality Improvement Project (Attachment 4).

Staff is requesting the City Council consider a resolution to approve the Grant Implementation Agreement with the County of Orange (Attachment 3) for the subject grant.

Background:

The City is in the process of designing and evaluating funding options for the Recycled Water Quality Improvement Project (Project). The objective of the Project is to reduce the use of potable water for irrigation and other non-potable uses by supplying those demands with recycled water.

Under this Project, a new microfiltration (MF) and reverse osmosis systems (RO) will be installed at the Water Reclamation Plant (WRP) to improve water quality by reducing total dissolved solids to meet regulatory permit limits, and enable the City to sell recycled water to the Santa Margarita Water District. The total Project costs, including design and construction, is estimated at $12,975,807.

The Integrated Regional Water Management (IRWM) Grant Program, which is administered by the Department of Water Resources (DWR), offers grant funding to IRWM groups for projects that support integrated regional water management planning and implementation and optimizing water supply. This grant funding requires a 50% matching of non-State fund sources. The City is currently pursuing other funding sources such as federal grants and a Federal Water Infrastructure Finance and Innovation Act (WIFIA) loan. Once total project funding is identified, staff will return to the City Council for review and approval. 18 Meeting Date: March 5, 2024 Agenda Item: 8B.

CITY OF SAN CLEMENTE 2
In relation to this funding source, City staff prepared and submitted the necessary documents to the County of Orange for the South Orange County Integrated Regional Water Management (IRWM) Grant Proposition 1 Round 2 grant funding program under the California Department of Water Resources (DWR) for the Project. If approved, upon receipt of funds from the State, the County will disburse funds per the Grant Implementation Agreement to the City in accordance with the funding allocations specified in the IRWMP for the Project (i.e., $700,000).

The Project is currently under design and funding through a series of grants and loans is being evaluated. Once designed, the Project will go out to bid. Staff anticipates returning to the City Council at a later date to have a construction contract awarded and full Project funding approved.

Project Location and Proposed MF/RO SYSTEM
Council Options:
 Adopt Resolution No. 24-28 (Attachment 2), authorizing the City Manager to execute the Grant Implementation Agreement with the County of Orange to receive the South Orange County Integrated Regional Water Management (IRWM) Grant Proposition 1 Round 2 grant, in the amount of $700,000, for the Recycled Water Quality Improvement Project and documents related thereto; and authorize the City Manager or his/her designee to accept and deposit the grant funding reimbursement (i.e., $700,000) into the Sewer Connection Fee Reserve Fund, Account No. 054-477-45300-000-13203.
 Modify and adopt Resolution No. 24-28.
 Continue the item and direct staff to provide additional information.  Do not adopt Resolution No. 24-28 and put the Project on hold.

Environmental Review/Analysis
This Project was previously determined to be exempt from the California Environmental Quality Act (CEQA) under Class 3 (the construction of new, small facilities or structures, and installation of small new equipment and facilities in small structures), Section 15303 of the state CEQA Guidelines. A Notice of Exemption was filed with the County of Orange Recorder’s Office on January 30, 2023 for this Project. (See Attachment 5.)
19 Meeting Date: March 5, 2024 Agenda Item: 8B.

CITY OF SAN CLEMENTE 3
Recommended Actions:

Staff Recommendation
STAFF RECOMMENDS the City Council adopt Resolution No. 24-28, which will:
..recommendation

1. Authorize the City Manager to execute the Grant Implementation Agreement with the County of Orange to receive the South Orange County Integrated Regional Water Management (IRWM) Grant Proposition 1 Round 2 grant funding in the amount of $700,000 for the Recycled Water Quality Improvement Project and documents related thereto; and

2. Authorize the City Manager or his/her designee to accept and deposit the grant funding reimbursement ($700,000) into the Sewer Connection Fee Reserve Fund, Account No. 054- 477-45300-000-13203.
..end
Attachment:

1. Location Map

2. Resolution No. 24-28

3. Grant Implementation Agreement

4. Grant Agreement

5. CEQA - Notice of Exemption
Notification:

None.
20 NOTTO SCALE

PROJECT

LOCATION
0 m

SAN CLEMENTE

WATER RECLAMATION
PLANT
City of San Clemente
s:
0 r
z
0 (/)
910 Calle Negocio, Suite 100
San Clemente, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316

LOCATION MAP
WRP
Recycled Water Quality
Improvement Project
P.N. 13203
ATTACHMENT 1
21 ATTACHMENT 2
RESOLUTION NO. 24-28

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE GRANT IMPLEMENTATION

AGREEMENT WITH THE COUNTY OF ORANGE FOR THE

SOUTH ORANGE COUNTY INTEGRATED REGIONAL
WATER MANAGEMENT GRANT PROPOSITION 1 ROUND
2 GRANT FUNDING PROGRAM UNDER THE

CALIFORNIA DEPARTMENT OF WATER RESOURCES,

FOR THE RECYCLED WATER QUALITY IMPROVEMENT
PROJECT, PROJECT NO.13203
WHEREAS, the City is in the process of designing and evaluating funding for the Recycled Water Quality Improvement Project (Project); and WHEREAS, the objectives of the Recycled Water Quality Improvement Project are to reduce the use of potable water for irrigation and other non-potable uses by supplying those demands with recycled water; and
WHEREAS, the Integrated Regional Water Management (IRWM) Grant Program, which is administered by the Department of Water Resources (DWR), offers grant funding to IRWM groups for projects that support integrated regional water management planning and implementation and optimizing water supply; and
WHEREAS, the City staff, in collaboration with the County of Orange, has submitted an application to the South Orange County Integrated Regional Water Management (IRWM) Grant Program and successfully received a grant allocation in the amount of $700,000 for construction of the Recycled Water Quality Improvement Project; and
WHEREAS, the County will disburse the allocated State grant funds, in the amount of $700,000, to the City upon successful completion of the Recycled Water Quality Improvement Project (Project); and
WHEREAS, the City of San Clemente has the legal authority and is authorized to enter into a Grant Implementation Agreement with the County of Orange.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE HEREBY RESOLVES AS FOLLOWS:

SECTION 1. That the City of San Clemente City Manager, or his/her designee, is hereby authorized and directed to execute the Grant Implementation Agreement with the County of Orange to receive the South Orange County Integrated Regional Water Management (IRWM) Grant Proposition 1 Round 2 grant funding, in the amount of $700,000, for the Recycled Water Quality Improvement Project in a form substantially similar to that presented to the City Council on March 5, 2024 and any amendments 22 Resolution No. 24-28 Page 2
thereto or other and further documents as may be necessary and proper to accomplish the grant funding for the Project.

SECTION 2. That the City of San Clemente City Manager, or his/her designee, is hereby authorized and directed to submit any required documents, invoices and reports and to take such other and further actions as are necessary and proper to obtain the grant funding for the Project.

SECTION 3. That the City of San Clemente City Manager, or his/her designee, is hereby authorized to accept and deposit the grant funding reimbursement (i.e., $700,000) into the Sewer Connection Fee Reserve Fund, Account No. 054-477-45300-000-13203.

SECTION 4. That 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 _____ day of March, 2024.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
23 Resolution No. 24-28 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. 24-28 was adopted at a regular meeting of the City Council of the City of San Clemente held on the 5th day of March, 2024, 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 _________________, 2024. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
24 ATTACHMENT 3

IMPLEMENTATION AGREEMENT

BETWEEN THE COUNTY OF ORANGE AND THE CITY OF SAN CLEMENTE FOR

THE SOUTH ORANGE COUNTY INTEGRATED REGIONAL WATER MANAGEMENT GRANT PROPOSITION 1 ROUND 2
This Implementation Agreement (“IA”) is made and entered into by and between the County of Orange (“County”), a political subdivision of the State of California, and the City of San Clemente (Project Proponent), a local government operating in Orange County and seeking grant funding from the California Department of Water Resources (DWR) Proposition 1 program. This IA is effective when signed by the County and Project Proponent. County and Project Proponent may be referred to as Parties and individually as Party.

RECITALS
WHEREAS, the County will accept and receive grant funds from the State of California under the State's Proposition 1 Integrated Regional Water Management Grant Program through that certain agreement entitled “Grant Agreement between the State of California Department of Water Resources (DWR) and the County of Orange, Agreement No.4600015416 (“Grant Agreement”), which agreement is attached as Attachment 1 and incorporated herein by reference;
WHEREAS, Project Proponent operates in South Orange County, the area named in the San Diego Regional Water Quality Control Board's Basin Plan as the San Juan Hydrologic Unit (“Region”);
WHEREAS, Project Proponent has collaborated with County and others to complete a successful Integrated Regional Water Management Plan (“IRWMP”), a plan integrating water resource related activities throughout the Region into a common scheme of prioritization and to facilitate collaborative implementation of agreed upon strategies;
WHEREAS, the Grant Agreement authorizes Proposition 1 grant funding for those IRWMP projects that have been included into the Grant Agreement, pursuant to the terms of the Grant Agreement;
WHEREAS, Project Proponent is the local project sponsor of the Recycled Water Quality Improvement Project (“Project” or “the Project”), which has been included in the Grant Agreement; and
WHEREAS, this IA describes the obligations of the Parties and the procedures by which the County will disburse Proposition 1 grant funds to Project Proponent pursuant to the Grant Agreement.
25

AGREEMENT
NOW, THEREFORE, in consideration of the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.General Obligations of the Parties
Project Proponent agrees that the cooperative and integrated implementation of the IRWMP is in the best interest of the Region. Project Proponent agrees to collaborate in good faith to implement its Project under the IRWMP. b. County shall receive and administer any funds received under the Grant Agreement for the purposes of administration,
implementation, and/or revision of the IRWMP in accordance with the Grant Agreement.
c. County may retain qualified consultants for use on IRWMP matters, subject to the County's normal rules and procedures for procuring such services.
d. County may undertake efforts directly on behalf of the Project Proponent, if necessary.
e. County will provide funds received and allocated for implementation of the Project to Project Proponent in accordance with the Grant Agreement and as provided herein.

2. Funding and Implementation of IRWMP Projects
Funding received under the Grant Agreement will be administered in accordance with the following provisions:
a. Upon receipt of funds from the State, County will allocate funds received under the Grant Agreement to Project Proponent in accordance with the funding allocations specified in the IRWMP for each Project. Any required priorities for funding projects in the IRWMP will be developed by County in consultation with Project Proponent.
b. County will be responsible for entering into necessary contracts and agreements with the State for funds on behalf of the Project Proponent and for accounting for such funds and submitting all required reports associated with such funds. County is hereby designated “Contract Administrator” of any contracts with the State 26

for this purpose.
c. Project Proponent, upon receiving funding under this IA, shall be a “Local Project Sponsor as defined in and for purposes of the Grant Agreement, and agrees to abide by all terms and conditions applicable to Local Project Sponsor in the Grant Agreement. d. County shall draft and approve a process for administering grant funds under the Grant Agreement. County shall be entitled to approximately 5% of all grant funds in order to pay for County's administration costs. County may in its discretion withhold more than 5% if a Project Proponent does not meet invoicing deadlines or if incomplete paperwork is submitted and the additional cost of County's contract administration services exceeds 5% of the disbursed grant funds to Project Proponent. In that case, County shall be entitled to its full costs of administration.
e. Project Proponent is responsible for the development and implementation of the Project, including, but not limited to, and if applicable, project and environmental planning, design, permitting, construction, project administration, documentation, and completion of any required mitigation, monitoring, or reporting. Project Proponent agrees to be the lead agency for the Project for purposes of the California Environmental Quality Act.
f. Project Proponent shall be responsible for completing all elements of the Project scope of work and for delivering to County any and all requirements, deliverables, documents and documentation as described in the Grant Agreement. All documents provided to County for transmission to DWR shall be in electronic format acceptable to County.
g. Project Proponent shall be reimbursed up to the maximum grant amount identified in the Grant Agreement for the Project. If the actual cost of the Project exceeds the maximum grant amount, County shall have no obligation to disburse grant funds or any other funds for such excess costs.
h. County may withhold from Project Proponent all or any portion of the grant funds if Project Proponent has materially violated, or threatens to materially violate, any term, provision, condition, or commitment of this IA; Project Proponent's expenditure is ineligible under the Proposition 1 program as determined by County or DWR; Project Proponent fails to maintain reasonable progress toward completion of the Project; or DWR directs County to withhold any such grant reimbursement. County shall give immediate notice of 27

such direction from DWR to Project Proponent.
i. Project Proponent agrees, if applicable, to collect, manage and report performance and analytical data related to the Project in a manner that facilitates the reporting and management in accordance with DWR standards and consistent with the Grant Agreement and the procedures to be developed by County. j. Project Proponent agrees to ensure that County, DWR, or any authorized representative thereof, shall have suitable and reasonable access to the Project site at all reasonable times during construction, and thereafter for the useful life of the Project, as applicable.
k. Project Proponent shall provide the deliverable to County in advance of the date shown in Exhibit C of the Grant Agreement for the component.
l. Project Proponent shall provide County evidence of insurance or self-insurance (if self-insured, include limits, if any, of selfinsurance), and other financial information as needed to comply with the terms of Grant Agreement.
m. As required in the Grant Agreement, Project Proponent shall name the County, the State, and the respective officers, agents and employees of each, as additional insureds on Project Proponent’s liability insurance for activities undertaken under this IA.

3. Additional Terms and Conditions
a. Obligation to Avoid Default: Project Proponent shall have the duty to facilitate the County’s performance of all requirements of the Grant Agreement, in order to avoid any default of the Grant Agreement, as defined in paragraph 12 of the Grant Agreement. This duty includes, but is not limited to, promptly responding to County requests for information and providing any and all requested documents, permits, invoices, progress and project completion reports as required by the Grant Agreement, and working with the County to assist and resolve any disputes that may arise under the Grant Agreement. All information about the Project is the responsibility of the Project Proponent. Project Proponent agrees that County will administer this IA and the overall program of implementation, that County review of components is discretionary, and Project Proponent shall not assume that County will discover errors and/or omissions. While County will submit grant applications, factual reports, monitoring data, and the like to granting agencies on behalf of Project Proponent, Project 28

Proponent is solely responsible for the accuracy, completeness, and timeliness of project information submitted to County for this purpose. b. Indemnity. Project Proponent shall defend, indemnify and hold harmless County and any other project proponent identified in the IRWMP, whose project may be included or amended into the Grant Agreement and who enters into an implementation agreement with the County, against any and all liability, loss, expense, attorney's fees, or claims for injury or damages arising out of:
i. Project Proponent's failure to comply with its
obligations under this IA.
ii. Any act or omission of Project Proponent that
prevents County from complying with County's
obligations under the Grant Agreement.
iii. Project Proponent's operation of any project funded through this IA.

Project Proponent's indemnity obligation shall be in proportion to and extend only to such liability, loss, expense, attorney's fees or claims for injury or damages as are caused by or result from the negligent or intentional acts or omissions of Project Proponent. County agrees that it shall include this provision in all implementation agreements entered into with any other project proponent in connection with the Grant Agreement.

County shall indemnify Project Proponent against any and all liability, loss, expense, attorney's fees, or claims for injury or damages arising out of (1) County’s failure to include this provision, or (2) County’s failure to include the third party beneficiary provision described under Section 3.g., below. c. Assignment. Neither this IA, nor any duties or obligations under this IA, nor any of the Project facilities (if any) shall be assigned by Project Proponents without the prior written consent of the County. Should an assignment or transfer occur with consent of the County, whenever County or the Project Proponent are named or referred to, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in County and the Project Proponents, and all agreements and covenants required hereby to be performed by or on behalf of County and Project Proponent shall bind and inure to the benefit of the respective successors thereof, whether so expressed in such assignment or not.
d. Modification. This IA may be amended or modified only by written agreement of all Parties, unless required by DWR, in which case County may unilaterally modify the IA. Any such written modification shall be attached and incorporated hereto.
29

e. Term. This IA will continue in effect until the completion of all projects included in or amended into the Grant Agreement unless terminated or extended by mutual agreement of the County and Project Proponent. If County terminates this IA before completion of efforts, Project Proponent agrees to work with any other project proponents to designate a different entity to assume the responsibilities of County.
f. Completion by Project Proponent. In the event Project Proponent has completed the Project and all applicable documents, deliverables, and requirements, is not currently receiving grant funds, and has received acceptance of completion of the Project, Project Proponent may terminate its participation in this IA upon ninety (90) days prior written notice to the County. Such termination shall be effective ninety (90) days after the notice is received or deemed received. Notwithstanding the foregoing, the Project Proponent shall continue to be responsible for any and all outstanding obligations, including, but not limited to, any debts, liabilities, useful life operation covenants or other financial commitments incurred or pledged by Project Proponent, subject to constitutional debt limitation provisions of the law.
g. No Third-Party Beneficiaries. Except as set forth in this subsection (g), nothing in this IA shall be construed to give any person, other than the County and Project Proponent, any legal or equitable right, remedy or claim under or in respect of this IA or any provisions herein. This IA is intended to be for the sole and exclusive benefit of the County and Project Proponent, except that: any other project proponent whose project is included in or amended into the Grant Agreement and enters into an implementation agreement with the County is a third party beneficiary for the limited purpose of enforcement of the indemnity terms set forth under Section 3.b. County agrees to incorporate this same provision in all other implementation agreements entered into with any other project proponent in connection with the Grant Agreement.
h. Severability. If any provision of this IA Agreement is held, determined or adjudicated to be illegal, void, or unenforceable by a court of competent jurisdiction, the remainder of this IA Agreement shall be given effect to the fullest extent reasonably possible.
i. Project Proponent represents and warrants that this IA Agreement has been duly authorized and executed and constitutes the legally binding obligation of its’ organization or entity, enforceable in accordance with its terms.
j. Counterparts. This IA Agreement may be executed in counterparts and the signed counterparts shall constitute a single instrument. 30

IN WITNESS WHEREOF, the Parties hereto have executed this IA on the dates opposite their respective signatures:

ORANGE COUNTY PUBLIC WORKS DEPARTMENT
By____________________________ Date________________
Name: Amanda Carr
Title: Deputy Director – OC Environmental Resources
APPROVED AS TO FORM:

COUNTY COUNSEL
By___________________________ Date________________
Deputy
31

CITY OF SAN CLEMENTE
By____________________________ Date________________
Name: Andy Hall
Title: City Manager
APPROVED AS TO FORM:

Counsel
By____________________________ Date________________
Name:
32 33
Grant Agreement No. 4600015416

b) All documents that satisfy the CEQA process are received by the State, c) The State has completed its CEQA process as a Responsible Agency, and d) The Grantee receives written notification from the State of concurrence with the Lead Agency’s CEQA documents (s) and State’s notice of verification of permit submittal.

The State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, the State will consider the environmental documents and decide whether to continue to fund the project, or to require changes, alterations, or other mitigation. Proceeding with work subject to CEQA prior to the State’s concurrence shall constitute a material breach of this Agreement. The Grantee or Local Project Sponsor (LPS) shall also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act (NEPA) by submitting copies of any environmental documents, including Environmental Impact Statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/ implementation. iii. A monitoring plan as required by Paragraph 16, “Monitoring Plan Requirements,” if applicable. 6) DISBURSEMENT OF FUNDS. The State will disburse to the Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any federal statute or regulation.

Any and all money disbursed to the Grantee under this Grant Agreement shall be deposited in a noninterest-bearing account and shall be used solely to pay Eligible Project Costs. 7) ELIGIBLE PROJECT COST. The Grantee shall apply State funds received only to Eligible Project Costs in accordance with applicable provisions of the law and Exhibit B, “Budget”. Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition and associated legal fees, preparation of environmental documentation, environmental mitigations, monitoring, and project construction. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Costs incurred after May 5, 2023 may be eligible for reimbursement.

Costs that are not eligible for reimbursement include, but are not limited to, the following items:

A. Costs, other than those noted above, incurred prior to the award date of this Grant.

B. Costs for preparing and filing a grant application.

C. Operation and maintenance costs, including post construction performance and monitoring costs.

D. Purchase of equipment that is not an integral part of a project.

E. Establishing a reserve fund.

F. Purchase of water supply.

G. Replacement of existing funding sources (e.g., bridge loans).

H. Meals, food items, or refreshments.

I. Payment of any punitive regulatory agency requirement, federal or state taxes.

J. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies, or acquisition of land by eminent domain.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 34 Grant Agreement No. 4600015416

K. Indirect Costs. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the funded project (i.e., costs that are not directly related to the funded project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Grantee or LPSs; non-project-specific accounting and personnel services performed within the Grantee’s or LPS’ organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-projectspecific facilities; tuition and conference fees; forums, trainings, and seminars; and, generic overhead or markup. This prohibition applies to the Grantee, LPSs, and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.

L. Mitigation for environmental impacts not resulting from implementation of the Project funded by this program.

M. Costs incurred as part of any necessary response and cleanup activities required under the Comprehensive Environmental Response, Compensation, and Liability Act; Resource Conservation and Recovery Act; Hazardous Substances Account Act; or other applicable law. 8) METHOD OF PAYMENT. After the disbursement requirements in Paragraph 5, “Basic Conditions” are met, the State will disburse the whole or portions of State funding to the Grantee, following receipt from the Grantee of an electronic invoice certified and transmitted via electronic/digital signature system (e.g., DocuSign) or via US mail or Express mail delivery of a “wet signature” for costs incurred, including Local Cost Share, and timely Quarterly Progress Reports as required by Paragraph 14, “Submission of Reports.” Payment will be made no more frequently than quarterly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. Quarterly Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e. invoices due May 30, August 29, November 29, and March 1). The State will notify the Grantee, in a timely manner, whenever, upon review of an invoice, the State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to the State. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to the State to cure such deficiency(ies). If the Grantee fails to submit adequate documentation curing the deficiency(ies), the State will adjust the pending invoice by the amount of ineligible or unapproved costs.

Invoices submitted by the Grantee shall include the following information:

A. Costs incurred for work performed in implementing the Project during the period identified in the particular invoice.

B. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for a project during the period identified in the particular invoice for the implementation of a project.

C. Invoices shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoices shall contain the date of the invoice, either the time period covered by the invoice or the invoice date received within the time period covered, and the total amount due. ii. Invoices shall be itemized based on the categories (i.e., tasks) specified in Exhibit B, “Budget.” The amount claimed for salaries/wages/consultant fees shall include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. One set of sufficient evidence (i.e., receipts, copies of checks, personnel hours’ summary table, time sheets) shall be provided for all costs included in the invoice. iv. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 3, “Grant Amount” and those costs that represent the Grantee’s costs, as applicable, in Paragraph 4, “Grantee Cost Share.” DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 35 Grant Agreement No. 4600015416

v. Original signature and date of the Grantee’s Project Representative. Submit an electronic invoice, certified and transmitted via electronic/digital signature system (e.g., DocuSign), from authorized representative to the Project Manager or the original “wet signature” copy of the invoice form to the Project Manager at the following address: P.O. Box 942836 Sacramento, CA 94236.

All invoices submitted shall be accurate and signed under penalty of law. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., cost share). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Standard Condition D.5 and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen. Code, §§ 470, 487-489.)
9) ADVANCED PAYMENT. Water Code section 10551 authorizes advanced payment by the State for projects included and implemented in an applicable Integrated Regional Water Management Plan, and when the project proponent is a nonprofit organization; a disadvantaged community (DAC); or the project benefits a DAC. If a project is awarded less than $1,000,000 in grant funds, the project proponent may receive an advanced payment of fifty (50) percent of the grant award; the remaining fifty (50) percent of the grant award will be reimbursed in arrears after the advanced funds of a budget category have been fully expended. Within ninety (90) calendar days of execution of the Grant Agreement, the Grantee may provide the State an Advanced Payment Request. Advanced Payment Requests received ninety-one (91) calendar days after the execution of this Agreement will not be eligible to receive an advanced payment.

The Advanced Payment Request shall contain the following:

A. Documentation demonstrating that each Local Project Sponsor (if different from the Grantee, as listed in Exhibit I) was notified about their eligibility to receive an advanced payment and a response from the Local Project Sponsor stating whether it wishes to receive the advanced payment or not.

B. If the Grantee is requesting the advanced payment, the request(s) shall include:
i. Descriptive information of each project with an update on project status ii. The names of the entities that will receive the funding for each project, including, but not limited to, an identification as to whether the project proponent or proponents are nonprofit organizations or a DAC, or whether the project benefits a DAC
iii. A detailed Funding Plan which includes how the advanced payment will be expended (in terms of workplan, budget, and schedule) within the timeframe agreed upon by DWR and the Grantee. The Funding Plan must clearly identify the total budget (at Budget Category Level) for each project clearly showing the portion of advanced payment and reimbursement funds. iv. Any other information that DWR may deem necessary
C. Upon review and approval of the Advanced Payment Request, DWR will authorize payment of the fully requested amount for the qualified project(s). Based on the project’s Funding Plan and other considerations, DWR may determine it is not prudent to advance the full request in a single disbursement. In such a case, DWR will develop a “Disbursement Schedule,” to disburse funds in installments. This Disbursement Schedule may change based on the project’s ongoing compliance with the Advanced Payment requirements and the project’s cash flow needs.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 36 Grant Agreement No. 4600015416

D. Once DWR authorizes the Advanced Payment Request, the Grantee shall submit Advanced Payment Invoice(s) for the initial amount based on the “Disbursement Schedule” on behalf of the LPS(s), containing the request for each qualified project, to the State with signature and date of the Grantee’s Project Representative, as indicated in Paragraph 21, “Project Representative.” The Grantee shall be responsible for the timely distribution of the advanced funds to the respective LPS(s). The Advanced Payment Invoice(s) shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoice shall contain the date of the invoice, the time period covered by the invoice, and the total amount due.
ii. Invoice shall be itemized based on the budget categories specified in Exhibit B, “Budget.” iii. The State Project Manager will notify the Grantee, in a timely manner, when, upon review of an Advance Payment Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). iv. On a quarterly basis, the Grantee will submit an Accountability Report to the State that demonstrates how actual expenditures compare with the scheduled budget. The Accountability Report shall include the following information:

1. An itemization of how advanced funds have been spent to-date (Expenditure Report), including documentation that supports the disbursements (e.g., contractor invoices, receipts, personnel hours, etc.). Accountability Reports shall be itemized based on the budget categories (i.e., tasks) specified in Exhibit B.

2. An updated Accountability Report including an updated Funding Plan that depicts how the remaining advanced funds will be expended and the activities and deliverables associated with the advanced funds within the timeframe agreed upon by DWR and the Grantee when the advanced payment request was approved.

3. Documentation that the funds were placed in a non-interest bearing account, including the dates of deposits and withdrawals from that account.

4. Proof of distribution of advanced funds to LPS(s), if applicable. v. The State’s Project Manager will notify the Grantee, in a timely manner, when, upon review of the Accountability Report, the State determines that any portion of the expenditures claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). If costs are not consistent with the tasks in Exhibit A, the State will reject the claim and remove them from the Accountability Report.

E. Once the Grantee has spent all advanced funds in a budget category, then the method of payment will revert to the reimbursement process for that budget category specified in Paragraph 8, “Method of Payment for Reimbursement.”
10) REPAYMENT OF ADVANCES. The State may demand repayment from the Grantee of all or any portion of the advanced State funding along with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by the State, and take any other action that it deems necessary to protect its interests for the following conditions:

A. A project is not being implemented in accordance with the provisions of the Grant Agreement.

B. The Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 37 Grant Agreement No. 4600015416

C. Failure by the Grantee to submit complete and accurate quarterly Accountability Reports by the required due dates, unless otherwise approved by DWR.

D. Failure to deposit funds in a non-interest-bearing account.

E. Use of Advance Payment funds for ineligible expenses and/or activities not consistent with this Agreement.

F. Inappropriate use of funds, as deemed by DWR.

G. Repayment amounts may also include:
i. Actual costs incurred which are not consistent with the activities presented in Exhibit A, not supported, or are ineligible.
ii. Advanced funds which are not fully expended by project completion, notwithstanding Water Code section 10551(c)(4). Unused grant funds shall be returned to DWR within sixty (60) calendar days.

Any repayment of advanced funds may consist of reducing the amount from future reimbursement invoices. The State may consider the Grantee’s refusal to repay the requested advanced amount a material breach of this Agreement subject to the default provisions in Paragraph 12, “Default Provisions.” If the State notifies the Grantee of its decision to demand repayment or withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Agreement. 11) WITHHOLDING OF DISBURSEMENTS BY THE STATE. If the State determines that a project is not being implemented in accordance with the provisions of this Grant Agreement, or that the Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction, the State may withhold from the Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests.

Where a portion of the State funding has been disbursed to the Grantee and the State notifies the Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 12, “Default Provisions,” the portion that has been disbursed shall thereafter be repaid immediately with interest at the California general obligation bond interest rate at the time the State notifies the Grantee, as directed by the State. The State may consider the Grantee’s refusal to repay the requested disbursed amount a material breach subject to the default provisions in Paragraph 12, “Default Provisions.” If the State notifies the Grantee of its decision to withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either party.
12) DEFAULT PROVISIONS. The Grantee shall be in default under this Grant Agreement if any of the following occur:

A. Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other Agreement between the Grantee and the State evidencing or securing the Grantee’s obligations.

B. Making any false warranty, representation, or statement with respect to this Grant Agreement or the application filed to obtain this Grant Agreement.

C. Failure to operate or maintain the Project in accordance with this Grant Agreement.

D. Failure to make any remittance required by this Grant Agreement, including any remittance recommended as the result of an audit conducted pursuant to Standard Condition D.5.

E. Failure to submit quarterly progress reports pursuant to Paragraph 5.

F. Failure to routinely invoice the State pursuant to Paragraph 8.

G. Failure to meet any of the requirements set forth in Paragraph 13, “Continuing Eligibility.” DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 38 Grant Agreement No. 4600015416

Should an event of default occur, the State shall provide a notice of default to the Grantee and shall give the Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via firstclass mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, the State may do any of the following:

A. Declare the funding be immediately repaid, with interest, which shall be equal to State of California general obligation bond interest rate in effect at the time of the default.

B. Terminate any obligation to make future payments to the Grantee.

C. Terminate the Grant Agreement.

D. Take any other action that it deems necessary to protect its interests.

In the event the State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, the Grantee agrees to pay all costs incurred by the State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.
13) CONTINUING ELIGIBILITY. The Grantee shall meet the following ongoing requirement(s) and all eligibility criteria outlined in the 2022 Guidelines to remain eligible to receive State funds:

A. An urban water supplier that receives grant funds pursuant to this Agreement shall maintain compliance with the Urban Water Management Planning Act (UWMP; Wat. Code, § 10610 et seq.) and Sustainable Water Use and Demand Reduction (Wat. Code, § 10608 et seq.) as set forth on page 11 of the 2022 Guidelines and as stated on page 24 of the 2022 IRWM Implementation Grant Proposal Solicitation Package.

B. An agricultural water supplier receiving grant funds shall comply with Sustainable Water Use and Demand Reduction requirements outlined in Water Code section 10608, et seq. and have their Agricultural Water Management Plan (AWMP) deemed consistent by DWR. To maintain eligibility and continue funding disbursements, an agricultural water supply shall have their 2015 AWMP identified on the State’s website. For more information, visit the website listed in Appendix A in the 2022 Guidelines.

C. A surface water diverter receiving grant funds shall maintain compliance with diversion reporting requirements as outlined in Water Code section 5100 et. seq.

D. If applicable, the Grantee shall demonstrate compliance with the Sustainable Groundwater Management Act (SGMA) set forth on page 10 of the 2022 Guidelines.

E. If the Grantee has been designated as a monitoring entity under the California Statewide Groundwater Elevation Monitoring (CASGEM) Program, the Grantee shall maintain reporting compliance, as required by Water Code section 10932 and the CASGEM Program.

F. The Grantee shall adhere to the protocols developed pursuant to The Open and Transparent Water Data Act (Wat. Code, § 12406, et seq.) for data sharing, transparency, documentation, and quality control.

G. On March 4, 2022, the Governor issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. The EO may be found at:
https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under State law. The EO directs DWR to terminate funding agreements with, and to refrain from entering any new agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine that the Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 39 Grant Agreement No. 4600015416

least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.
14) SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to the State. All reports shall be submitted to the State’s Project Manager and shall be submitted via the DWR “Grant Review and Tracking System” (GRanTS). If requested, the Grantee shall promptly provide any additional information deemed necessary by the State for the approval of reports.

Reports shall be presented in the formats described in the applicable portion of Exhibit F, “Report Formats and Requirements.” The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State of a Project Completion Report is a requirement for the release of any funds retained for such project.

A. Quarterly Progress Reports: The Grantee shall submit quarterly Progress Reports to meet the State’s requirement for disbursement of funds. Progress Reports shall be uploaded via GRanTS, and the State’s Project Manager notified of upload. Progress Reports shall, in part, provide a brief description of the work performed, the Grantee’s activities, milestones achieved, any accomplishments and any problems encountered in the performance of the work under this Grant Agreement during the reporting period. The first Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e. invoices due May 30, August 29, November 29, and March 1).

B. Accountability Report: The Grantee shall prepare and submit to the State an Accountability Report on a quarterly basis if the Grantee received an advanced payment, consistent with the provisions in Paragraph 9, “Advanced Payment.”
C. Project Completion Report: The Grantee shall prepare and submit to the State a separate Project Completion Report for each project included in Exhibit A. The Grantee shall submit a Project Completion Report (or a Component Completion Report, if a Project has multiple Components) within ninety (90) calendar days of Project/Component completion as outlined in Exhibit F.

D. Grant Completion Report: Upon completion of all the Projects included in Exhibit A, the Grantee shall submit to the State a Grant Completion Report. The Grant Completion Report shall be submitted within ninety (90) calendar days of submitting the Completion Report for the final project to be completed under this Grant Agreement, as outlined in Exhibits A, and F. Retention for any grant administration line items in the Budget of this Grant Agreement will not be disbursed until the Grant Completion Report is approved by the State.

E. Post-Performance Reports: The Grantee shall prepare and submit to the State Post-Performance Reports for the applicable project(s). Post-Performance Reports shall be submitted to the State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the project begins operation.
15) OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects and in consideration of the funding made by the State, the Grantee agrees to ensure or cause to be performed the commencement and continued operation of the project, and shall ensure or cause the project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. State shall not be liable for any cost of such maintenance, management, or operation. The Grantee or their successors may, with the written approval of the State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Grant Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 40 Grant Agreement No. 4600015416

and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal by the Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of the State, be considered a breach of this Grant Agreement and may be treated as default under Paragraph 12, “Default Provisions.” 16) MONITORING PLAN REQUIREMENTS. A Monitoring Plan shall be submitted to the State prior to disbursement of State funds for construction or monitoring activities. The Monitoring Plan should incorporate Post-Performance Monitoring Report requirements as defined and listed in Exhibit F, and follow the guidance provided in Exhibit L, “Project Monitoring Plan Guidance.” 17) STATEWIDE MONITORING REQUIREMENTS. The Grantee shall ensure that all groundwater projects and projects that include groundwater monitoring requirements are consistent with the Groundwater Quality Monitoring Act of 2001 (Water Code § 10780 et seq.) and, where applicable, that projects that affect water quality shall include a monitoring component that allows the integration of data into statewide monitoring efforts, including where applicable, the Surface Water Ambient Monitoring Program carried out by the State Water Resources Control Board. See Exhibit G for web links and information regarding other State monitoring and data reporting requirements.
18) NOTIFICATION OF STATE. The Grantee shall promptly notify the State, in writing, of the following items:

A. Events or proposed changes that could affect the scope, budget, or work performed under this Grant Agreement. The Grantee agrees that no substantial change in the scope of a project will be undertaken until written notice of the proposed change has been provided to the State and the State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.

B. Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by the State’s representatives. The Grantee shall make such notification at least fourteen (14) calendar days prior to the event.

C. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Grantee agrees that all work in the area of the find shall cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the State has determined what actions should be taken to protect and preserve the resource. The Grantee agrees to implement appropriate actions as directed by the State.

D. The initiation of any litigation or the threat of litigation against the Grantee or an LPS regarding the Project or which may affect the Project in any way.

E. Applicable to construction projects only: Final inspection of the completed work on a project by a Registered Professional (Civil Engineer, Engineering Geologist, or other State approved certified/licensed Professional), in accordance with Exhibit D. The Grantee shall notify the State’s Project Manager of the inspection date at least fourteen (14) calendar days prior to the inspection in order to provide the State the opportunity to participate in the inspection. 19) NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be transmitted by any of the following means:

A. By delivery in person.

B. By certified U.S. mail, return receipt requested, postage prepaid.

C. By “overnight” delivery service; provided that next-business-day delivery is requested by the sender.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 41 Grant Agreement No. 4600015416

D. By electronic means.

E. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U.S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices shall be sent to the addresses listed below. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below. 20) PERFORMANCE EVALUATION. Upon completion of this Grant Agreement, the Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.
21) PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows:

Department of Water Resources County of Orange
Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-6713
Email: [email protected]
Amanda Carr
Deputy Director, OC Environmental Resources
2301 N. Glassell Street
Orange, CA 92865
Phone: (714) 955-0601
Email: [email protected]
Direct all inquiries to the Project Manager:

Department of Water Resources County of Orange
Eliana Camargo
Environmental Scientist
P.O. Box 94236
Sacramento, CA 94236
Phone: (916) 902-6985
Email: [email protected]
Beatrice Musacchia
Sr. Environmental Resource Specialist
2301 N. Glassell Street
Orange, CA 92865
Phone: (714) 955-0612
Email: [email protected]
Either party may change its Project Representative or Project Manager upon written notice to the other party.
22) STANDARD PROVISIONS. This Grant Agreement is complete and is the final Agreement between the parties. The following Exhibits are attached and made a part of this Grant Agreement by this reference:

Exhibit A – Work Plan
Exhibit B – Budget
Exhibit C – Schedule
Exhibit D – Standard Conditions
Exhibit E – Authorizing Resolution
Exhibit F – Report Formats and Requirements
Exhibit G – Requirements for Data Submittal
Exhibit H – State Audit Document Requirements and Cost Share Guidelines for the Grantee DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 42 Grant Agreement No. 4600015416

Exhibit I – Local Project Sponsors and Project Locations Exhibit J – Appraisal Specifications
Exhibit K – Information Needed for Escrow Processing and Closure Exhibit L – Project Monitoring Plan Guidance
Exhibit M – Invoice Guidance for Administrative and Overhead Charges IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement.

STATE OF CALIFORNIA

DEPARTMENT OF WATER RESOURCES

COUNTY OF ORANGE
Arthur Hinojosa
Manager, Division of Regional Assistance
Amanda Carr
Deputy Director, OC Environmental
Resources
Date Date
Approved as to Form
_____________________________
Julia Woo
Senior Deputy County Counsel
Date__________________________
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 12/4/2023
12/4/2023 12/4/2023
43 Grant Agreement No. 4600015416

EXHIBIT A

WORK PLAN
PROPOSITION 1 ROUND 2 SOUTH ORANGE COUNTY WATERSHED MANAGEMENT AREA IRWM

IMPLEMENTATION GRANT
Grant Administration
IMPLEMENTING AGENCY: County of Orange (Grantee)
PROJECT DESCRIPTION: The Grantee will administer these funds and respond to DWR’s reporting and compliance requirements associated with the grant administration. This Grantee will act in a coordination role: disseminating grant compliance information to the project managers responsible for implementing the projects contained in this agreement, obtaining and retaining evidence of compliance (e.g., CEQA/NEPA documents, reports, monitoring compliance documents, labor requirements, etc.), obtaining data for progress reports from individual project managers, assembling and submitting progress reports to the State, and coordinating all invoicing and payment of invoices.

Budget Category (a): Project Administration
Task 1: Agreement Administration
The Grantee will respond to DWR’s reporting and compliance requirements associated with the grant administration and will coordinate with the project managers responsible for implementing the projects contained in this agreement.

Task 2: Invoicing
The Grantee will be responsible for compiling invoices for submittal to DWR. This includes collecting invoice documentation from each of the Local Project Sponsors and compiling the information into a DWR Invoice Packet.

Deliverables:
• Quarterly Invoices and associated backup documentation Task 3: Reporting
The Grantee will be responsible for compiling progress reports for submittal to DWR. The Grantee will coordinate with Local Project Sponsor staff to retain consultants as needed to prepare and submit progress reports and final project completion reports for each project, as well as the grant completion report.

Reports will meet generally accepted professional standards for technical reporting and the requirements terms of the contract with DWR outlined in Exhibit F of this Agreement.

Deliverables:
• Quarterly Progress Reports
• Grant Completion Report
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 44 Grant Agreement No. 4600015416

PROJECT 1: South Orange County Water Use Efficiency Program – Phase II (SOCWUE II) IMPLEMENTING AGENCY: Municipal Water District of Orange County PROJECT DESCRIPTION: The project is the second phase of Municipal Water District of Orange County's (MWDOC’s) water use efficiency program promoting water conservation and watershed health in southern Orange County through the transformation from high-water-use landscaping and irrigation to California Native/Friendly landscapes, stormwater retention, and alternatives to potable water supply. This includes, but is not limited to, the inclusion of stormwater retention features and plant density requirements incorporated in turf conversion projects, the offering of free landscape design assistance and maintenance plans to help create beautiful watershed-wise landscapes, and the promotion of sustainable irrigation supplies like municipally supplied recycled water and rain capture. The project will result in savings of approximately 597 acre-feet per year (AFY) of water, runoff reductions of up to 208 AFY, reductions of up to 2 million kilowatt hours of energy use, and the reduction of up to 1,667 metric tons of CO2 emissions.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents, and coordination with IRWM regional manager, Orange County Public Works.

Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via the Grantee.

Prepare Project Completion Report and submit to DWR via the Grantee no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable to the project.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 45 Grant Agreement No. 4600015416

Deliverables: N/A
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
Not applicable.

Deliverables: N/A
Task 7: Design
Marketing campaign material shall notify applicants of potential tax liability for rebates.

Deliverables: N/A
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
Not applicable.

Deliverables: N/A
Task 10: Construction Administration
Not applicable.

Deliverables: N/A
Task 11: Construction
Construction activities are outlined below.

Phase II of this project targets public agency, residential, commercial, industrial, and institutional landscapes, that did not participate in Phase I, throughout South Orange County by implementing the rebate and incentive programs detailed below. SOCWUE II will promote water-efficient practices and interventions/devices to be done by water users in South Orange County and increase the affordability and accessibility of completing such improvements. Each component includes its own program terms and conditions and/or its own EPA Watersense labeling as eligible product guidance. Before receiving SOCWUE II Project funds, applicants must agree to follow these terms and conditions and/or select devices from the approved standards list to participate. The individual project components of the SOCWUE II project are outlined below:

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 46 Grant Agreement No. 4600015416

11(a): Turf Removal: This project will facilitate the removal of approximately 1 million square feet (23 acres) of turfgrass and replacement with California native/friendly landscapes. Projects will include stormwater retention features, such as rain gardens, that will capture, retain, and percolate stormwater and will include a plant density minimum to promote healthy soils and mitigate urban heat island effects.

All project sites will receive a pre-and post-installation quality control inspection and photo verification to ensure the project terms and conditions are followed. Turf conversions will save approximately 135 AFY. 11(b): Smart Irrigation Timers: The project will facilitate the installation of approximately 2,500 residential smart irrigation timers, also known as weather-based irrigation controllers and 15,000 commercial property stations. These controllers irrigate based on real-time weather data to prevent the common issue of overwatering. Smart timer installations will save approximately 373 AFY. 11(c): High-Efficiency Nozzles: The project aims to install up to 2,000 high efficiency nozzles in residential, commercial, and institutional landscapes. These retrofits will save approximately 5 AFY. 11(d): Landscape Design: Approximately 175 sites will receive a free customized landscape design plan and/or a maintenance guide plan to ensure participants know how to care for their water-efficient garden properly.
11(e): Drip Irrigation: Approximately 210,000 square feet (2.7 acres) of landscape irrigated with inefficient spray nozzles will be converted to drip irrigation at residential, commercial, and institutional landscapes.

Sites will receive an installation inspection to ensure project terms and conditions are followed. Spray-todrip conversions will save approximately 24 AFY. 11(f): Rain Barrels: Approximately 100 rain barrels and/or cisterns will be installed at properties with appropriate rain gutters to divert and capture rainfall. Rain barrel installations will save approximately 0.2 AFY
11(g): Recycled Water Conversions: Potable irrigation meters will be converted to utilize municipally supplied recycled water or other sustainable non-potable sources, at up to 5 commercial and/or public sites. Potable to recycled water meter conversions will save approximately 60 AFY. 11(h): Inspections: Quality control inspections/verifications are implemented to ensure that participants have properly followed Program terms and conditions. Depending on individual project specifics, inspections may be in-person, photo-based, or remotely verified.

Deliverables:
• Photographic Documentation of Progress
• Applicable program database
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 47 Grant Agreement No. 4600015416

PROJECT 2: Runoff Capture and Reuse Upgrades at Dove and Tick Creek Outfall Pump Stations IMPLEMENTING AGENCY: Trabuco Canyon Water District (TCWD) PROJECT DESCRIPTION: The project will upgrade the Dove Outfall and Tick Outfall pump stations to increase capture of both dry weather runoff and stormwater to produce 200 AFY of new non-potable water.

Project improvements will double the current amount of captured runoff by upgrading the pump stations with larger pumps capable of handling debris and moving a greater volume of water. Additionally, the project improvements will result in expanding the area of captured flow, improving debris capture, and improving the storm drain overflow to prevent flooding and damage to equipment. These improvements will increase the volume of water that can be conveyed through the system above current capacities. The project also includes a new desilting basin to improve water quality prior to blending. By reducing dry weather flows, the project will also provide ecosystem benefits to downstream native habitat, as urban runoff carries nitrates and other pollutants downstream and disperses nonnative seeds and vegetation, which negatively impacts Audubon Society's 4,000-acre Starr Ranch Sanctuary.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents, and coordination with Grantee. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 48 Grant Agreement No. 4600015416

Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not applicable to the project.

Deliverables: N/A
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permit is anticipated to be acquired for this project: City of Rancho Santa Margarita Encroachment Permit
Deliverables:
• Permits as required
Task 7: Design
The project design is 20% complete. The project components have been identified, and the project is included in the TCWD's Capital Improvement Plan. The project will implement improvements at an existing facility, so the project site has been identified and project components have been scoped out.

A 100% Design Plans and Specifications will be completed. The final pump size and power, size of the desilting basin, and any necessary connections will be finalized. Any potential grading needs will be identified, and debris capture structures will be finalized.

Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 49 Grant Agreement No. 4600015416

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A full-time engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization and Demobilization activities, including mobilization of equipment and materials, site cleanup and site restoration (e.g., final grading, landscaping, touch-up paint); furnishing all documentation (warranties, manuals, Standard Operating Procedure); and removal of all temporary facilities and equipment.
11(b): Site preparation will include activities, including setting up temporary facilities (e.g., field office, construction barriers) and clearing the site for construction. 11(c): Project improvements will include upgrading the pump stations with larger pumps capable of handling debris and moving a greater volume of water, expanding the area of captured flow, improving debris capture, and improving the storm drain overflow to prevent flooding and damage to equipment. A new desilting basin will be constructed to improve water quality prior to blending with the non-potable system. The basin will be sized to accommodate anticipated flows from the project (determined in final design), and necessary connections installed to connect it to the pump station.

Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 50 Grant Agreement No. 4600015416

PROJECT 3: Recycled Water Quality Improvement Project
IMPLEMENTING AGENCY: City of San Clemente
PROJECT DESCRIPTION: The project will install new microfiltration and reverse osmosis systems (MF/RO) at the City of San Clemente's Water Reclamation Plant. The system will improve water quality and will allow the City of San Clemente to meet its recycled water demand of 1,165 AFY, while also importing up to 2,195 AFY of additional supply to Santa Margarita Water District. The project will also allow the City of San Clemente to seasonally store 200 AFY of recycled water, which will provide system reliability during peak demand and outages.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents and coordination with Grantee. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR via the Grantee. Progress reports will meet generally accepted professional standards for technical reporting and explain the project status, including the following information: summary of the work completed for the Recycled Water Quality Improvement Project during the reporting period; activities and milestones achieved; and accomplishments and significant problems encountered in the performance of work.

Prepare Project Completion Report and submit to DWR via the grantee no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 51 Grant Agreement No. 4600015416

Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Project Feasibility Studies were completed as part of the project development process. Preliminary design, costs, and layout for the MF/RO Facility at the City of San Clemente’s Water Reclamation Plant were developed, describing a MF/RO implementation approach to maximize recycled water production.

An additional feasibility study will be prepared to assist in its design process. This additional study includes confirming the sizing of the MF/RO system for the removal of total dissolved solids from the recycled water to an acceptable level and the operability of the MF/RO system in terms of conveyance, storage, pumping requirements.

Deliverables:
• Relevant Feasibility Studies
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: Division of Drinking Water- Amended Operating Permit; National Pollutant Discharge Elimination System (NPDES) Stormwater Pollution Prevention Plan (SWPPP) & General Construction Permit; Coast Commission Permit; Orange County Health Department; and California State Health Department
The Title 22 Engineering Report Addendum for the MF/RO system for approval by the Division of Drinking Water (DDW) will be prepared. The addendum will be drafted early in the design phase to provide DDW ample time for review and approval before initiating.

Deliverables:
• Permits as required
Task 7: Design
Complete a final engineering design and prepare construction drawings, specifications, and cost estimates (PS&E) for public bidding.

Deliverables:
• Basis of Design Report
• 100% Design Plans, Specifications and Cost Estimate
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 52 Grant Agreement No. 4600015416

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A full-time engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization and Demobilization will involve the acquisition of necessary bonds and insurance, preparing submittals for review, ordering materials, moving contractor equipment to predetermined staging areas and other similar activities. Demobilization will include material and equipment removal, site cleanup and other similar activities.
11(b): Site preparation will include clearing and grubbing, and excavation. MF/RO concrete pad will be set 6 inches above the ground elevation, and the site will be graded to let the runoff discharge to the stormwater collection.
11(c): Install, construct, excavate: Water treatment system equipment will include purchasing, delivering, and installing the equipment and tanks used for the water recycling system. Multiple trains (2 MF trains and 2 RO trains), pumping systems, filter systems, noise emitting equipment, chemical skids, and tanks will be installed.

Construction inspection and testing activities will include the required inspection and testing such as geotechnical, construction materials, water recycling equipment, fire prevention systems, and other City of San Clemente inspection.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 53 Grant Agreement No. 4600015416

Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 54 Grant Agreement No. 4600015416

PROJECT 4: Calle Arroyo – La Novia Stormwater Project
IMPLEMENTING AGENCY: City of San Juan Capistrano (CSJC) PROJECT DESCRIPTION: The project will capture stormwater and dry-weather runoff from the project's 108.7-acre tributary drainage area. The project components include a diversion structure from the existing storm drain line, a trash capture hydrodynamic separator, and an infiltration basin. The project site will be replanted with native vegetation within the infiltration basin to increase habitat value. The project will result in 22 acres of stormwater and flood management benefits for the Disadvantaged Community/drainage area.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents and coordination with IRWM regional manager, Orange County Public Works.

Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
No land purchase or easement acquisition is required for this project.

Deliverables: N/A
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
A project feasibility study was completed as part of the project development process.

Deliverables:
• Relevant Feasibility Studies
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 55 Grant Agreement No. 4600015416

Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.

Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: State Water Resources Control Board Construction General Permit Waste Discharger Identification (WDID); Santa Margarita Water District Encroachment Permit; City of San Juan Capistrano Grading Permit; City of San Juan Capistrano Floodplain Permit; and Federal Emergency Management Agency (FEMA) No Rise Certification Deliverables:
• Permits as required
Task 7: Design
CSJC will advance the design from its current form to a biddable set of contract documents including diversion structure, piping, hydrodynamic separator, infiltration basin, sewer relocation, and associated site improvements. To relocate the sewer, the CSJC would grant or reissue an easement to the Santa Margarita Water District.

Prepare the final contract documents for project bidding, including final plans and specifications for the construction. This will include the necessary drawings, the general and technical plans and specifications providing material and installation requirements, and an engineer’s cost estimate.

Intermediate steps in the design process are anticipated to include:
• Site investigation and survey, including infiltration testing, utility locate and survey, topographic survey, cultural survey, and habitat survey, as needed. • Basis of design report, including hydrologic and hydraulic calculations to size the diversion structure, piping, hydrodynamic separator, and infiltration basin. Updated performance estimates based on the infiltration testing and sizing analyses. Incorporation of educational and recreational elements. Incorporating design elements to support future recreational uses of the site as part of a separate project.
• Sheet sets containing 50%, 90% and 100% design drawings. • Specifications accompanying the 90% and 100% design drawings. • Engineers estimate and bid documents accompanying 100% design drawings.

Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 16 for DWR’s review and approval.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 56 Grant Agreement No. 4600015416

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Additionally, the CSJC will develop a Request for Proposal (RFP) for construction management services, publicly advertise the RFP, interview the consulting firms that submit proposals, and award a contract. This procurement may be combined with permitting and design services.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A full-time engineering construction observer will be on site for the duration of the project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR. Additionally, CSJC staff will perform necessary inspections.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization will include acquiring necessary bonds and insurance, preparing submittals for review, ordering materials, moving contractor facilities, and equipment to predetermined staging areas, and other similar miscellaneous activities. Demobilization will include removing material and equipment, cleaning the site, restoring damaged areas to their original conditions, and other similar activities. 11(b): Site preparation will include clearing existing vegetation and installing construction stormwater Best Management Practices, including erosion and sediment controls consistent with the site Stormwater Pollution Prevention Pan and Erosion and Sediment Control Plan that will be included in the design drawings.
11(c): Construct diversion, surface basin, overflow, relocate sewer, fill to raise the remaining portion of the parcel. An optional design element may include a subsurface system to support infiltration below a portion of the site that is reserved for future park uses.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 57 Grant Agreement No. 4600015416

11(d): Install vegetation and irrigation system. Install trail elements and complete transitions between current and new trail elements. Install educational signage.

Deliverables:
• Photographic Documentation of Progress
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 58 Grant Agreement No. 4600015416

EXHIBIT B
BUDGET
PROPOSITION 1 ROUND 2 SOUTH ORANGE COUNTY WATERSHED MANAGEMENT AREA IRWM

IMPLEMENTATION GRANT

AGREEMENT BUDGET SUMMARY
PROJECTS Grant Amount
Required
Cost Share:

Non-State
Fund Source
Other
Cost
Share
Total Cost
Cost Share
Required
%
Grant Administration $163,540 $0 $0 $163,540 N/A
1 Project 1: South Orange County
Water Use Efficiency Program –
Phase II
$750,166 $2,006,334 $0 $2,756,500 50%
2 Project 2: Runoff Capture and
Reuse Upgrades at Dove and Tick
Creek Outfall Pump Stations
$389,500 $389,500 $0 $779,000 50%
3 Project 3: Recycled Water Quality
Improvement Project
$700,000 $7,734,275 $4,541,532 $12,975,807 50%
4 Project 4: Calle Arroyo – La Novia
Stormwater Project $1,267,594 $0 $0 $1,267,594 0%
GRAND TOTAL $3,270,800 $10,130,109 $4,541,532 $17,942,441 DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 59 Grant Agreement No. 4600015416

Grant Administration
Implementing Agency: County of Orange - OC Public Works BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source
Other Cost Share Total Cost
(a) Project Administration $163,540 $0 $0 $163,540
TOTAL COSTS $163,540 $0 $0 $163,540
PROJECT 1: South Orange County Water Use Efficiency Program – Phase II Implementing Agency: Municipal Water District of Orange County BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $50,000 $49,496 $0 $99,496
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $0 $0 $0
(d) Construction / Implementation $700,166 $1,956,838 $0 $2,657,004 TOTAL COSTS $750,166 $2,006,334 $0 $2,756,500
NOTES:
*Required Cost Share funding source(s): Municipal Water District of Orange County (MWDOC)- sourced from MWDOC’s budget and funding provided to MWDOC from Metropolitan Water District of Southern California.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 60 Grant Agreement No. 4600015416

PROJECT 2: Runoff Capture and Reuse Upgrades at Dove and Tick Creek Outfall Pump Stations Implementing Agency: Trabuco Canyon Water District
BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $0 $14,000 $0 $14,000
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $132,000 $0 $132,000
(d) Construction / Implementation $389,500 $243,500 $0 $633,000 TOTAL COSTS $389,500 $389,500 $0 $779,000
NOTES:
*Required Cost Share funding source(s): Trabuco Canyon Water District’s General Fund.

PROJECT 3: Recycled Water Quality Improvement Project
Implementing Agency: City of San Clemente
BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost
Share**
Total Cost
(a) Project Administration $0 $40,000 $0 $40,000
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $955,452 $0 $955,452
(d) Construction / Implementation $700,000 $6,738,823 $4,541,532 $11,980,355 TOTAL COSTS $700,000 $7,734,275 $4,541,532 $12,975,807
NOTES:
* Required Cost Share fund source(s): The City of San Clemente’s Sewer Connection Fee Reserve ($700,000) and a Water Infrastructure Finance and Innovation Act (WIFIA) loan ($7,034,275) **Other Cost Share fund source(s): Water Recycling Funding Program (WRFP) provided by State Water Resources Control Board DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 61 Grant Agreement No. 4600015416

PROJECT 4: Calle Arroyo – La Novia Stormwater Project
Implementing Agency: City of San Juan Capistrano
BUDGET CATEGORY Grant Amount
Required
Cost Share:

Non-State
Fund Source*
Other Cost Share Total Cost
(a) Project Administration $35,000 $0 $0 $35,000
(b) Land Purchase / Easement $0 $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $376,000 $0 $0 $376,000
(d) Construction / Implementation $856,594 $0 $0 $856,594 TOTAL COSTS $1,267,594 $0 $0 $1,267,594
NOTES:
*The project received a 100% cost share waiver.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 62 Grant Agreement No. 4600015416

EXHIBIT C

SCHEDULE
PROPOSITION 1 ROUND 2 SOUTH ORANGE COUNTY WATERSHED MANAGEMENT AREA IRWM

IMPLEMENTATION GRANT
Grant Administration
BUDGET CATEGORY Start Date End Date
a Project Administration 07/1/2023 12/31/2027
PROJECT 1: South Orange County Water Use Efficiency Program – Phase II BUDGET CATEGORY Start Date End Date
a Project Administration 07/01/2023 12/31/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 02/01/2023 09/30/2023 d Construction / Implementation 07/01/2023 09/30/2026
* Municipal Water District of Orange County staff will develop the Project Monitoring Plan in parallel with the initial Construction/Implementation Activities immediately after the grant award date (assumed to be July 1, 2023).

PROJECT 2: Runoff Capture and Reuse Upgrades at Dove and Tick Creek Outfall Pump Stations BUDGET CATEGORY Start Date End Date
a Project Administration 10/01/2023 06/30/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 05/01/2022 11/01/2024 d Construction / Implementation 12/01/2024 04/30/2026
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 63 Grant Agreement No. 4600015416

PROJECT 3: Recycled Water Quality Improvement Project
BUDGET CATEGORY Start Date End Date
a Project Administration 10/01/2023 12/31/2025
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 10/05/2022 04/15/2024 d Construction / Implementation 02/15/2024* 10/15/2025
*Public bidding process such as advertisement, award of contract takes approximately 3 months prior to the construction start date.

PROJECT 4: Calle Arroyo – La Novia Stormwater Project
BUDGET CATEGORY Start Date End Date
a Project Administration 10/01/2023 12/31/2027
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 04/07/2022 09/30/2026 d Construction / Implementation 10/01/2026 10/31/2027
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 64 Grant Agreement No. 4600015416

EXHIBIT D

STANDARD CONDITIONS
D.1. ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT:

A. Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed pursuant to this Grant Agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.

B. Disposition of Money Disbursed: All money disbursed pursuant to this Grant Agreement shall be deposited in a non-interest bearing account, administered, and accounted for pursuant to the provisions of applicable law.

C. Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Grant Agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Grant Agreement, whichever comes first.

D.2. ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Grant Agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and through an agreement with the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.

D.3. AMENDMENT: This Grant Agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law.

Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. Requests solely for a time extension must be submitted at least 90 days prior to the work completion date set forth in Paragraph 2. Any other request for an amendment must be submitted at least 180 days prior to the work completion date set forth in Paragraph 2. State shall have no obligation to agree to an amendment.

D.4. AMERICANS WITH DISABILITIES ACT: By signing this Grant Agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

D.5. AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant Agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may elect to pursue any remedies provided in Paragraph 12 or take any other action it deems necessary to protect its interests. The Grantee agrees it shall return any audit disallowances to the State.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 65 Grant Agreement No. 4600015416

Pursuant to Government Code section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant Agreement with respect of all matters connected with this Grant Agreement, including but not limited to, the cost of administering this Grant Agreement. All records of Grantee or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement. If an audit reveals any impropriety, the Bureau of State Audits or the State Controller’s Office may conduct a full audit of any or all of the Grantee’s activities. Code, § 79708, subd. (b) D.6. BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant Agreement does not appropriate sufficient funds for this program, this Grant Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant Agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant Agreement and Grantee shall not be obligated to perform any provisions of this Grant Agreement. Nothing in this Grant Agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Grant Agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Grant Agreement with no liability occurring to State, or offer a Grant Agreement amendment to Grantee to reflect the reduced amount.

D.7. CALIFORNIA CONSERVATION CORPS: Grantee may use the services of the California Conservation Corps or other community conservation corps as defined in Public Resources Code section 14507.5.

D.8. CEQA: Activities funded under this Grant Agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under this Agreement that is subject to a CEQA document shall not proceed until and unless approved by the Department of Water Resources. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 12, “Default Provisions.”
D.9. CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code section 7110, that:

A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code section 5200 et seq.; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

D.10. CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim.

State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.

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D.11. COMPETITIVE BIDDING AND PROCUREMENTS: Grantee’s contracts with other entities for the acquisition of goods and services and construction of public works with funds provided by State under this Grant Agreement must be in writing and shall comply with all applicable laws and regulations regarding the securing of competitive bids and undertaking competitive negotiations. If the Grantee does not have a written policy to award contracts through a competitive bidding or sole source process, the Department of General Services’ State Contracting Manual rules must be followed and are available at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-ServicesResources-List-Folder/State-Contracting.

D.12. COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Grant Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.

D.13. CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws.

Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411, for State conflict of interest requirements.

A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.

B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelvemonth period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.

C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.) D. Employees and Consultants to the Grantee: Individuals working on behalf of a Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.

D.14. DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Grant Agreement, such reports, data, information, and certifications as may be reasonably required by State.

D.15. DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than thirty (30) calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within sixty (60) calendar days of receipt of such inventory State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.

D.16. DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Grant Agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 67 Grant Agreement No. 4600015416

the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:

A. Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code section 8355.

B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355 to inform employees, contractors, or subcontractors about all of the following:
i. The dangers of drug abuse in the workplace,
ii. Grantee’s policy of maintaining a drug-free workplace, iii. Any available counseling, rehabilitation, and employee assistance programs, and iv. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.

C. Provide, as required by Government Code section 8355, that every employee, contractor, and/or subcontractor who works under this Grant Agreement:
i. Will receive a copy of Grantee’s drug-free policy statement, and ii. Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract.

D.17. EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property using State funds provided through this Grant Agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State.

Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner.

Failure to provide an easement or other title restriction acceptable to the State may result in termination of this Agreement.

D.18. FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED PROFESSIONAL: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement.

D.19. GRANTEE'S RESPONSIBILITIES: Grantee and its representatives shall:

A. Faithfully and expeditiously perform or cause to be performed all project work as described in Exhibit A and in accordance with Exhibits B and C.

B. Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Grant Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.

C. Comply with all applicable California, federal, and local laws and regulations.

D. Implement the Project in accordance with applicable provisions of the law.

E. Fulfill its obligations under the Grant Agreement and be responsible for the performance of the Project.

F. Obtain any and all permits, licenses, and approvals required for performing any work under this Grant Agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.

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G. Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.

H. Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.

D.20. GOVERNING LAW: This Grant Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

D.21. INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement. The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.

D.22. INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of levee rehabilitation measures for this Project and any breach of this Agreement. Grantee shall require its contractors or subcontractors to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.

D.23. INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantees, in the performance of the Grant Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.

D.24. INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Grant Agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.

D.25. INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant Agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant Agreement with State.

D.26. LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/ lcp.asp.

For more information, please refer to DIR’s Public Works Manual at: https://www.dir.ca.gov/ dlse/PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 69 Grant Agreement No. 4600015416

compensation or to undertake self-insurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.

D.27. MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibits A, B, and C which concern the budget and schedule without formally amending this Grant Agreement. Non-material changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Grant Agreement. Non-material changes with respect to the Project schedule are changes that will not extend the term of this Grant Agreement. Requests for nonmaterial changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.

D.28. NONDISCRIMINATION: During the performance of this Grant Agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, and denial of medical and family care leave or pregnancy disability leave. Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.

Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant Agreement.

D.29. OPINIONS AND DETERMINATIONS: Where the terms of this Grant Agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

D.30. PERFORMANCE BOND: Where contractors are used, the Grantee shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.)
D.31. PRIORITY HIRING CONSIDERATIONS: If this Grant Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Grant Agreement to qualified recipients of aid under Welfare and Institutions Code section 11200 in accordance with Public Contract Code section 10353.

D.32. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State.

Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee meet its obligations under this DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 70 Grant Agreement No. 4600015416

Grant Agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.

D.33. PROJECT ACCESS: The Grantee shall ensure that the State, the Governor of the State, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of this Agreement.

D.34. REMAINING BALANCE: In the event the Grantee does not submit invoices requesting all of the funds encumbered under this Grant Agreement, any remaining funds revert to the State. The State will notify the Grantee stating that the Project file is closed and any remaining balance will be disencumbered and unavailable for further use under this Grant Agreement.

D.35. REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Grant Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

D.36. RETENTION: The State shall withhold ten percent (10%) of the funds, for each project, until the project is complete, and a Final Project Report is approved and accepted by DWR. If a project has multiple components (within a project), at the State's discretion and upon a written request by the Grantee, any retained amount attributable to a single component may be released when that component is complete and the Final Component Completion Report is approved. Upon approval of the Final Project Report and/or Final Component Completion Report, any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest.

D.37. RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes and other written or graphic work produced in the performance of this Grant Agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov.

Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected and developed under this Grant Agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this paragraph for any public purpose.

D.38. SEVERABILITY: Should any portion of this Grant Agreement be determined to be void or unenforceable, such shall be severed from the whole and the Grant Agreement shall continue as modified.

D.39. SUSPENSION OF PAYMENTS: This Grant Agreement may be subject to suspension of payments or termination, or both if the State determines that:

A. Grantee, its contractors, or subcontractors have made a false certification, or B. Grantee, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Grant Agreement.

D.40. SUCCESSORS AND ASSIGNS: This Grant Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Grant Agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.

D.41. TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.

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D.42. TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 12, “Default Provisions,” the State may terminate this Grant Agreement and be relieved of any payments should Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 12, “Default Provisions.” D.43. TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days’ advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.

D.44. THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.

D.45. TIMELINESS: Time is of the essence in this Grant Agreement.

D.46. TRAVEL – DAC, EDA, TRIBES PROJECT: Travel is only an eligible reimbursable expense for projects providing at least 75% of benefits to DACs, EDAs, and/or Tribes (based on population or geographic area). Only ground transportation and lodging are eligible for grant reimbursement. Per diem costs will not be eligible for grant reimbursement. Any reimbursement for necessary travel shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel amounts that are current as of the date costs are incurred. No travel outside of the IRWM region shall be reimbursed unless prior written authorization is obtained from the State.

D.47. UNION ORGANIZING: Grantee, by signing this Grant Agreement, hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Grant Agreement.

Furthermore, Grantee, by signing this Grant Agreement, hereby certifies that:

A. No State funds disbursed by this Grant Agreement will be used to assist, promote, or deter union organizing.

B. Grantee shall account for State funds disbursed for a specific expenditure by this Grant Agreement to show those funds were allocated to that expenditure.

C. Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro rata basis, all disbursements that support the program.

D. If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.

D.48. VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.

D.49. WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Grant Agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.

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EXHIBIT E

AUTHORIZING RESOLUTION
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EXHIBIT F

REPORT FORMATS AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format.

PROGRESS REPORTS
Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information. For each project, discuss the following at the task level, as organized in Exhibit A:
• Percent complete (by work)
• Discussion of work accomplished during the reporting period. • Milestones or deliverables completed/submitted during the reporting period. • Meetings held or attended.
• Scheduling concerns and issues encountered that may delay completion of the task.

For each project, discuss the following at the project level, as organized in Exhibit A:
• Work anticipated for the next reporting period.
• Photo documentation, as appropriate.
• Budget projections for grant share for the next two quarters • Any schedule or budget modifications approved by DWR during the reporting period.

PROJECT COMPLETION REPORT
The Project Completion Report (or a Component Completion Report, if a Project has multiple Components) shall generally use the following format provided below for each project after completion.

Executive Summary
The Executive Summary should include a brief summary of project information and include the following items:
• Brief description of work proposed to be done in the original Grant application. • List any official amendments to this Grant Agreement, with a short description of the amendment.

Reports and/or Products
The following items should be provided, unless already submitted as a deliverable:
• A copy of any final technical report or study, produced for or utilized in this Project as described in the Exhibit A
• Electronic copies of any data collected, not previously submitted • Discussion of problems that occurred during the work and how those problems were resolved • Final project schedule showing actual progress versus planned progress as shown in Exhibit C Additional information that may be applicable for implementation projects includes the following:
• Record drawings
• Final geodetic survey information
• Project photos
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Cost & Disposition of Funds
A list showing:
• Summary of Project costs including the following items:
o Accounting of the cost of project expenditure;
o Include all internal and external costs not previously disclosed (i.e., additional cost share); and o A discussion of factors that positively or negatively affected the project cost and any deviation from the original Project cost estimate.

Additional Information
• Benefits derived from the Project, with quantification of such benefits provided. • If applicable, Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), consistent with Exhibit D, that the project was conducted in accordance with the approved Work Plan in Exhibit A and any approved amendments thereto. • Submittal schedule for the Post-Performance Report.

GRANT COMPLETION REPORT
The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects funded by this Grant Agreement, and includes the following:
• Executive Summary: consisting of a maximum of ten (10) pages summarizing information for the grant as well as the individual projects.
• Brief discussion of: each project completed and how they achieved IRWM Plan objectives and/or Regional goals and whether the level, type, or magnitude of benefits of the project are comparable to the original project proposal; any remaining work to be completed and mechanism for their implementation; the benefits to DAC and/or EDA as part of this Grant Agreement if a DAC or EDA Cost Share Waiver was approved for a project; and a summary of final funds disbursement for each project.

Additional Information: Summary of the submittal schedule for the Post-Performance Reports applicable for the projects in this Grant Agreement.

POST-PERFORMANCE REPORT
The Post-Performance Report (PPR) should be concise and focus on how each project is performing compared to its expected performance; whether the project is being operated and maintained and providing intended benefits as proposed. A PPR template may be provided by the assigned DWR Grant Manager upon request. The PPR should follow the general format of the template and provide requested information as applicable. The following information, at a minimum, shall be provided:

Reports and/or products
• Header including the following:
o Grantee Name
o Implementing Agency (if different from Grantee)
o Grant Agreement Number
o Project Name
o Funding grant source (i.e., 2022 Proposition 1 IRWM Implementation Grant) o Report number
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• Post-Performance Report schedule
• Time period of the annual report (e.g., January 2024 through December 2024) • Project Description Summary
• Discussion of the project benefits
• An assessment of any differences between the expected versus actual project benefits as stated in the original application. Where applicable, the reporting should include quantitative metrics (e.g., new acrefeet of water produced that year, etc.). • Summary of any additional costs and/or benefits deriving from the project since its completion, if applicable.
• Any additional information relevant to or generated by the continued operation of the project.

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EXHIBIT G

REQUIREMENTS FOR DATA SUBMITTAL
Surface and Groundwater Quality Data:

Groundwater quality and ambient surface water quality monitoring data that include chemical, physical, or biological data shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports.

Surface water quality monitoring data shall be prepared for submission to the California Environmental Data Exchange Network (CEDEN). The CEDEN data templates are available on the CEDEN website.

Inclusion of additional data elements described on the data templates is desirable. Data ready for submission should be uploaded to your CEDEN Regional Data Center via the CEDEN website. CEDEN website: http://www.ceden.org.

If a project’s Work Plan contains a groundwater ambient monitoring element, groundwater quality monitoring data shall be submitted to the State for inclusion in the State Water Resources Control Board’s Groundwater Ambient Monitoring and Assessment (GAMA) Program Information on the GAMA Program can be obtained at: https://www.waterboards.ca.gov/water_issues/programs/gama/. If further information is required, the Grantee can contact the State Water Resources Control Board (SWRCB) GAMA Program.

A listing of SWRCB staff involved in the GAMA program can be found at:
https://www.waterboards.ca.gov/water_issues/programs/gama/contact.shtml.

Groundwater Level Data
For each project that collects groundwater level data, the Grantee will need to submit this data to DWR’s Water Data Library (WDL), with a narrative description of data submittal activities included in project reports, as described in Exhibit F, “Report Formats and Requirements.” Information regarding the WDL and in what format to submit data in can be found at: http://www.water.ca.gov/waterdatalibrary/.

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EXHIBIT H

STATE AUDIT DOCUMENT REQUIREMENTS AND COST SHARE GUIDELINES FOR THE GRANTEE The following provides a list of documents typically required by State Auditors and general guidelines for the Grantee. List of documents pertains to both State funding and the Grantee’s Local Cost Share and details the documents/records that State Auditors would need to review in the event of this Grant Agreement is audited.

The Grantee should ensure that such records are maintained for each funded project.

State Audit Document Requirements
Internal Controls

1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded Program/Project).

2. Written internal procedures and flowcharts for the following:
a) Receipts and deposits
b) Disbursements
c) State reimbursement requests
d) Expenditure tracking of State funds
e) Guidelines, policy, and procedures on State funded Program/Project

3. Audit reports of the Agency internal control structure and/or financial statements within the last two years.

4. Prior audit reports on the State funded Program/Project.

State Funding:

1. Original Grant Agreement, any amendment(s) and budget modification documents.

2. A listing of all bond-funded grants, loans, or subventions received from the State.

3. A listing of all other funding sources for each Program/Project.

Contracts:

1. All subcontractor and consultant contracts and related or partners’ documents, if applicable.

2. Contracts between the Agency and member agencies as related to the State funded Program/Project.

Invoices:

1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the Grant Agreement.

2. Documentation linking subcontractor invoices to State reimbursement, requests and related Grant Agreement budget line items.

3. Reimbursement requests submitted to the State for the Grant Agreement.

Cash Documents:

1. Receipts (copies of warrants) showing payments received from the State.

2. Deposit slips (or bank statements) showing deposit of the payments received from the State.

3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors, consultants, and/or agents under the grants or loans.

4. Bank statements showing the deposit of the receipts.

Accounting Records:

1. Ledgers showing entries for funding receipts and cash disbursements.

2. Ledgers showing receipts and cash disbursement entries of other funding sources.

3. Bridging documents that tie the general ledger to requests for Grant Agreement reimbursement.

Administration Costs:

1. Supporting documents showing the calculation of administration costs.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 80 Grant Agreement No. 4600015416

Personnel:

1. List of all contractors and Agency staff that worked on the State funded Program/Project.

2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services charged to the program
Project Files:

1. All supporting documentation maintained in the project files.

2. All Grant Agreement related correspondence.

Cost Share Guidelines
Cost Share consists of non-State funds, including in-kind services. In-kind services are defined as work performed (i.e., dollar value of non-cash contributions) by the Grantee (and potentially other parties) directly related to the execution of the funded project. Examples include volunteer services, equipment use, and use of facilities. The cost if in-kind service can be counted as cost share in-lieu of actual funds (or revenue) provided by the Grantee. Other cost share and in-kind service eligibility conditions may apply. Provided below is guidance for documenting cost share with and without in-kind services.

1. Although tracked separately, in-kind services shall be documented and, to the extent feasible, supported by the same methods used by the Grantee for its own employees. Such documentation should include the following:
a. Detailed description of the contributed item(s) or service(s) b. Purpose for which the contribution was made (tied to project work plan) c. Name of contributing organization and date of contribution d. Real or approximate value of contribution. Who valued the contribution and how was the value determined? (e.g., actual, appraisal, fair market, etc.). Justification of rate. (See item #2, below) e. Person’s name and the function of the contributing person f. Number of hours contributed
g. If multiple sources exist, these should be summarized on a table with summed charges h. Source of contribution if it was provided by, obtained with, or supported by government funds

2. Rates for volunteer or in-kind services shall be consistent with those paid for similar work in the Grantee’s organization. For example, volunteer service of clearing vegetation performed by an attorney shall be valued at fair market value for this service, not the rate for professional legal services. In those instances, in which the required skills are not found in the recipient organization, rates shall be consistent with those paid for similar work in the labor market. Paid fringe benefits that are reasonable, allowable, and allocable may be included in the valuation.

3. Cost share contribution (including in-kind services) shall be for costs and services directly attributed to activities included in the Grant Agreement. These services, furnished by professional and technical personnel, consultants, and other skilled labor may be counted as in-kind if the activities are an integral and necessary part of the project funded by the Grant Agreement.

4. Cash contributions made to a project shall be documented as revenue and in-kind services as expenditures. These costs should be tracked separately in the Grantee’s accounting system.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 81 Grant Agreement No. 4600015416

EXHIBIT I

LOCAL PROJECT SPONSORS AND PROJECT LOCATIONS
The Grantee has assigned, for each project, a Local Project Sponsor (LPS) according to the roles of the participating agencies identified in the IRWM Plan. LPSs may act on behalf of the Grantee for the purposes of individual project management, oversight, compliance, and operations and maintenance. LPSs are identified for each sponsored Project below:

Local Project Sponsor Agency Designation
Sponsored Project: Project 1: South Orange County Water Use Efficiency Program Phase II Sponsor Agency: Municipal Water District of Orange County Agency Address: 18700 Ward Street, Fountain Valley CA 92708 Project Location: South Orange County IRWM Region, California (33.57410, -117.633424)

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 82 Grant Agreement No. 4600015416

Local Project Sponsor Agency Designation
Sponsored Project: Project 2: Runoff Capture and Reuse Upgrades at Dove and Tick Creek Outfall Pump Stations Sponsor Agency: Trabuco Canyon Water District
Agency Address: 32003 Dove Canyon Drive, Trabuco Canyon CA 92679 Project Location: Trabuco Canyon, California (Dove Creek 33.624744, -117.566054, Tick Creek 33.62114, - 117.565202)
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 83 Grant Agreement No. 4600015416

Local Project Sponsor Agency Designation
Sponsored Project: Project 3: Recycled Water Quality Improvement Project Sponsor Agency: City of San Clemente
Agency Address: 910 Calle Negocio, San Clemente CA
Project Location: 380 Avenida Pico, San Clemente California (33.435879, -117.627159) DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 84 Grant Agreement No. 4600015416

Local Project Sponsor Agency Designation
Sponsored Project: Project 4: Calle Arroyo – La Novia Stormwater Park Sponsor Agency: City of San Juan Capistrano
Agency Address: 30448 Rancho Viejo Road, San Juan Capistrano CA 92675 Project Location: Corner of La Novia Avenue and Calle Arroyo, San Juan Capistrano, California (33.515833,- 117.648056)
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 85 Grant Agreement No. 4600015416

EXHIBIT J

APPRAISAL SPECIFICATIONS
For implementation projects that include Land Acquisition Only:

For property acquisitions funded by this Grant Agreement, the Grantee shall submit an appraisal for review and approval by the Department of General Services or DWR’s Real Estate Branch prior to reimbursement or depositing State funds into an escrow account. This information should be submitted at least 90 days prior to a reimbursement request to account for review time. All appraisal reports, regardless of report format, shall include all applicable Appraisal Specifications below. Appraisals for a total compensation of $150,000 or more shall be reported as a Self-Contained Appraisal Report. Appraisals for a total compensation of less than $150,000 may be reported as a Summary Appraisal Report, which includes all information necessary to arrive at the appraiser’s conclusion. Appraisal Specifications 14, 16, 21, 23-25, and 28 shall be a narrative analysis regardless of the reporting format.

1. Title page with sufficient identification of appraisal assignment.

2. Letter of transmittal summarizing important assumptions and conclusions, value estimate, date of value and date of report.

3. Table of contents.

4. Assumptions and Limiting Conditions, Extraordinary Assumptions, and Hypothetical Conditions as needed.

5. Description of the scope of work, including the extent of data collection and limitations, if any, in obtaining relevant data.

6. Definition of Fair Market Value, as defined by California Code of Civil Procedure, § 1263.320.

7. Photographs of subject property and comparable data, including significant physical features and the interior of structural improvements, if applicable.

8. Copies of Tax Assessor’s plat map with the subject marked along with all contiguous assessor’s parcels that depict the ownership.

9. A legal description of the subject property, if available.

10. For large, remote or inaccessible parcels, provide aerial photographs or topographical maps depicting the subject boundaries.

11. Three (3) year subject property history, including sales, listings, leases, options, zoning, applications for permits, or other documents or facts that might indicate or affect use or value.

12. Discussion of any current Agreement of Sale, option, or listing of subject property. This issue required increased diligence since state agencies often utilize non-profit organizations to quickly acquire sensitive habitat parcels using Option Agreements. However, due to confidentiality clauses, the terms of the Option are often not disclosed to the State. If the appraiser discovers evidence of an Option or the possible existence of an Option, and the terms cannot be disclosed due to a confidentiality clause, then the appraiser is to cease work and contact the client.

13. Regional, area, and neighborhood analyses. This information may be presented in a summary format.

14. Market conditions and trends including identification of the relevant market area, a discussion of supply and demand within the relevant market area, and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. This information may be presented in a summary format.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 86 Grant Agreement No. 4600015416

15. Discussion of subject land/site characteristics (size, topography, current use, elevations, zoning and land use issues, development entitlements, General Plan designation, utilities, offsite improvements, access, land features such as levees and creeks, offsite improvements, easements and encumbrances, covenants, conditions and restrictions, flood and earthquake information, toxic hazards, water rights, mineral rights, toxic hazards, taxes and assessments, etc.).

16. Description of subject improvements including all structures, square footage, physical age, type of construction, quality of construction, condition of improvements and/or identification of any permanent plantings. Discussion of construction cost methodology, costs included and excluded, accrued depreciation from all causes, remaining economic life, items of deferred maintenance and cost to cure, and incurable items. Construction cost data shall include cost data source, date of estimate or date of publication of cost manual, section and page reference of cost manual, copies of cost estimate if provided from another source, replacement or reproduction cost method used, and supporting calculations including worksheets or spreadsheets.

17. Subject property leasing and operating cost history, including all items of income and expense.

18. Analysis and conclusion of the larger parcel for partial taking appraisals. For partial taking appraisals, Appraisal Specifications generally apply to the larger parcel rather than an ownership where the larger parcel is not the entire ownership.

19. Include a copy of a recent preliminary title report (within the past year) as an appraisal exhibit.

Discuss the title exceptions and analyze the effect of title exceptions on fair market value.

20. For appraisals of partial takings or easements, a detailed description of the taking or easement area including surface features and topography, easements, encumbrances or improvements including levees within the subject partial take or easement, and whether the take area is characteristic of the larger parcel. Any characteristics of the taking area, including existing pre-project levees that render the take area different from the larger parcel shall be addressed in the valuation.

21. Opinion of highest and best use for the subject property, based on an in-depth analysis supporting the concluded use which includes the detail required by the complexity of the analysis. Such support typically requires a discussion of the four criteria of tests utilized to determine the highest and best use of a property. If alternative feasible uses exist, explain and support market, development, cash flow, and risk factors leading to an ultimate highest and best use decision.

22. All approaches to market value applicable to the property type and in the subject market. Explain and support the exclusion of any usual approaches to value.

23. Map(s) showing all comparable properties in relation to the subject property.

24. Photographs and plat maps of comparable properties.

25. In-depth discussion of comparable properties, similarities and differences compared to the subject property, adjustments to the comparable data, and discussion of the reliability and credibility of the data as it relates to the indicated subject property value. Improved comparable sales which are used to compare to vacant land subject properties shall include an allocation between land and improvements, using methodology similar to methodology used in item 16 above to estimate improvement value when possible, with an explanation of the methodology used.

26. Comparable data sheets.
a. For sales, include information on grantor/Grantee, sale/recordation dates, listed or asking price as of the date of sale, highest and best use, financing, conditions of sale, buyer motivation, sufficient location information (street address, post mile, and/or distance from local landmarks such as bridges, road intersections, structures, etc.), land/site characteristics, improvements, source of any allocation of sale price between land and improvements, and confirming source.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 87 Grant Agreement No. 4600015416

b. For listings, also include marketing time from list date to effective date of the appraisal, original list price, changes in list price, broker feedback, if available. c. For leases, include significant information such as lessor/lessee, lease date and term, type of lease, rent and escalation, expenses, size of space leased, tenant improvement allowance, concessions, use restrictions, options, and confirming source. When comparing improved sales to a vacant land subject, the contributory value of the improvements shall be segregated from the land value.

27. For appraisals of easements, a before and after analysis of the burden of the easement on the fee, with attention to how the easement affects highest and best use in the after condition. An Easement Valuation Matrix or generalized easement valuation references may be used ONLY as a reference for a secondary basis of value.

28. For partial taking and easement appraisals, valuation of the remainder in the after condition and analysis and identification of any change in highest and best use or other characteristics in the after condition, to establish severance damages to the remainder in the after condition, and a discussion of special and general benefits, and cost to cure damages or construction contract work.

29. There are occasions where properties involve water rights, minerals, or salable timber that require separate valuations. If an appraisal assignment includes water rights, minerals, or merchantable timber that requires separate valuation, the valuation of the water rights, minerals, or merchantable timber shall be completed by a credentialed subject matter specialist.

30. For partial taking and easement appraisals, presentation of the valuation in California partial taking acquisition required format.

31. Implied dedication statement.

32. Reconciliation and final value estimate. Include analysis and comparison of the comparable sales to the subject, and explain and support conclusions reached.

33. Discussion of any departures taken in the development of the appraisal.

34. Signed Certification consistent with the language found in Uniform Standards of Professional Appraisal Practice.

35. If applicable, in addition to the above, appraisals of telecommunication sites shall also provide:
a. A discussion of market conditions and trends including identification of the relevant market, a discussion of supply and demand within the relevant market area and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. b. An analysis of other leases comparable to subject property. Factors to be discussed in the analysis include the latitude, longitude, type of tower, tower height, number of rack spaces, number of racks occupied, placement of racks, power source and adequacy, back-up power, vault and site improvements description and location on site, other utilities; access, and road maintenance costs.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 88 Grant Agreement No. 4600015416

EXHIBIT K

INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE
For implementation projects that include Land Acquisition Only:

The Grantee shall provide the following documents to the State Project Representative during the escrow process. Property acquisition escrow documents shall be submitted within the term of this Grant Agreement and after a qualified appraisal has been approved. • Name and Address of Title Company Handling the Escrow • Escrow Number
• Name of Escrow Officer
• Escrow Officer’s Phone Number
• Dollar Amount Needed to Close Escrow
• Legal Description of Property Being Acquired
• Assessor’s Parcel Number(s) of Property Being Acquired • Copy of Title Insurance Report
• Entity Taking Title as Named Insured on Title Insurance Policy • Copy of Escrow Instructions in Draft Form Prior to Recording for Review Purposes • Copy of Final Escrow Instructions
• Verification that all Encumbrances (i.e., Liens, Back Taxes, and Similar Obligations) have been Cleared Prior to Recording the Deed to Transfer Title
• Copy of Deed for Review Purposes Prior to Recording
• Copy of Deed as Recorded in County Recorder’s Office
• Copy of Escrow Closure Notice
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 89 Grant Agreement No. 4600015416

EXHIBIT L

PROJECT MONITORING PLAN GUIDANCE
Introduction
For each project contained in Exhibit A, please include a brief description of the project (maximum ~150 words) including project location, implementation elements, need for the project (what problem will the project address) and responds to the requirements listed below.

Project Monitoring Plan Requirements
The Project Monitoring Plan shall contain responses to the following questions:
• What are the anticipated project physical benefits?
• What are the corresponding numeric targets for each project benefit? • How will proposed numeric targets be measured?
• What are baseline conditions?
• When will the targets be met (e.g., upon project completion, five years after completion)? • How often will monitoring be undertaken (e.g., monthly, yearly). • Where are monitoring point locations (e.g., meter located at…, at stream mile…)? Include relevant maps.
• How will the project be maintained (e.g., irrigation, pest management, weed abatement)? • What will be the frequency and duration of maintenance proposed activities? • Are there any special environmental considerations (e.g., resource agency requirements, permit requirements, CEQA/NEPA mitigation measures)?
• Who is responsible for collecting the samples (i.e., who is conducting monitoring and/or maintenance)?
• How, and to whom, will monitoring results be reported (e.g., paper reports, online databases, public meetings)?
• What adaptive management strategies will be employed if problems are encountered during routine monitoring or maintenance?
• What is the anticipated life of the project?
DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 90 Grant Agreement No. 4600015416

EXHIBIT M

INVOICE GUIDANCE FOR ADMINISTRATIVE AND OVERHEAD CHARGES The funds provided pursuant to this Agreement may only be used for costs that are directly related to the funded Project. The following provides a list of typical requirements for invoicing, specifically providing guidance on the appropriate methods for invoicing administrative and direct overhead charges.

Administration Charges
Indirect and General Overhead (i.e., indirect overhead) charges are not an allowable expense for reimbursement. However, administrative expenses that are apportioned directly to the project are eligible for reimbursement. Cost such as rent, office supplies, fringe benefits, etc. can be “Direct Costs” and are eligible expenses as long as:
• There is a consistent, articulated method for how the costs are allocated that is submitted and approved by the Grant Manager. The allocation method must be fully documented for auditors. • A “fully-burdened labor rate” can be used to capture allowable administrative costs. • The administrative/overhead costs can never include:
o Non-project specific personnel and accounting services performed within the Grantee or an LPS’ organization
o Markup
o Tuition
o Conference fees
o Building and equipment depreciation or use allowances • Using a general overhead percentage is never allowed
Labor Rates
The Grantee must provide DWR with supporting documentation for personnel hours (see personnel billing rates letter in example invoice packet). The personnel rate letter should be submitted to the DWR Grant Manager prior to submittal of the first invoice. The supporting documentation must include, at a minimum, employee classifications that will reimbursed by grant funds and the corresponding hourly rate range. These rates should be “burdened”; the burdened rate must be consistent with the Grantee’s/Local Project Sponsors standardized allocation methodology. The supporting documentation should also provide an explanation of what costs make up the burdened rate and how those costs were determined. This information will be used to compare against personnel hours summary table invoice back up documentation. Periodic updates may be needed during the life of the grant which would be handled through a revised billing rate letter.

DocuSign Envelope ID: E85CB7B4-F52D-427D-9565-595F7ADEDF42 91 ATTACHMENT 5
92 93
94 95
96 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 5, 2024 Agenda Item: 8C.

Submitted By: Community Development
Subject:
..titl e
CONTINUANCE OF NO ACTION ON CONDITIONAL PERMIT 1021 RELATED TO THE PROPERTY LOCATED AT 616 DEL DIOS, ASSESSOR’S PARCEL NUMBER 690-552-05 ..body Fiscal Impact:

There are no direct costs associated with an action on this item.

Summary:

Harborview Estates Homeowners Association (Harborview), American Tower Management, LLC, DISH Wireless and the City are actively engaged in settlement discussions regarding Conditional Permit 1021 and the telecommunications tower and associated equipment at 616 Del Dios. In light of those settlement discussions, staff recommends that the City Council continue the abeyance without further action until at least July 31, 2024.

Background:

SCMC section 17.12.175 provides a process for the City to change or revoke approved applications when conditions of approval are violated, it is necessary to resolve a nuisance, and/or when applications contain incorrect, false, or misleading information.

At its December 5, 2023 regular meeting, the City Council adopted Resolution No. 23-159 to initiate a public hearing to consider changing or revoking Conditional Permit 1021, the Voluntary Compliance Agreement and the Wireless Screening Form WMS 23-231. That public hearing was held at the January 16, 2024 City Council meeting.

After considering the staff report, public testimony and all evidence and argument presented by the property owner, the City Council directed that the revocation of Conditional Permit 1021 be “held in abeyance” for 60 days. During discussion, the City Council encouraged the parties work to resolve the issues in the active litigation filed by Harborview related to this matter.

The parties and the real parties in interest in the Harborview litigation have met in confidential settlement discussions and have scheduled further confidential settlement discussions. Staff is recommending that the City Council continue the abeyance period until at least July 31, 2024 to allow these discussions to continue and the possibility of a mutually agreeable settlement to be explored.

The City has received a letter from American Tower Corporation endorsing a continuance (Attachment 3).
97 Meeting Date: March 5, 2024 Agenda Item: 8C.

CITY OF SAN CLEMENTE 2
Council Options:
 Extend the abeyance of the revocation of Conditional Permit 1021 until July 31, 2024 to allow time for further confidential settlement discussions to occur, which would maintain the status quo.
 Extend the abeyance of the revocation of Conditional Permit 1021 for a date certain either before or after July 31, 2024.
 Extend the abeyance of the revocation of Conditional Permit 1021 until April 16, 2024 (or another regular City Council meeting date), set a public hearing for that date and direct staff to return with consideration of a resolution related to Conditional Permit 1021.  Schedule a special City Council meeting on and set a public hearing for March 14, 2024 and direct staff to return with consideration of a resolution related to Conditional Permit 1021.  Continue the item and direct staff to provide additional information.

Environmental Review/Analysis
Continuing to take no action is not a project under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council continue the abeyance of the revocation of Conditional Permit 1021 until July 31, 2024, which would maintain the status quo until that date. ..end
Attachment:

1. City Council Agenda Report, dated January 16, 2024, entitled “Public Hearing to Consider Changing or Revoking Conditional Permit 1021/ Voluntary Compliance Agreement/ and Wireless Screening Form WMS 23-231 Related to the Property Located at 616 Del Dios, Assessor’s Parcel Number 690-552-05 and Finding the Project Categorically Exempt from the California Environmental Quality Act.” Associated attachments are available at the following links:

Part 1:
https://www.san-clemente.org/home/showpublisheddocument/77045/638404851447630000 Part 2:
https://www.san-clemente.org/home/showpublisheddocument/77047/638404852233970000

2. Minutes of the City Council Meeting of January 16, 2024, excerpted

3. Letter from American Tower Corporation
Notification:

American Tower Corporation on behalf of American Tower Management, LLC Representatives of Harborview Estates Homeowners Association 98 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

CITY OF SAN CLEMENTE
Meeting Date: January 16, 2024 Agenda Item: 8C
Department: Community Development
Prepared By Adam Atamian, Community Development Director Jonathan Lightfoot, City Planner
Subject:
..titl e
PUBLIC HEARING TO CONSIDER CHANGING OR REVOKING CONDITIONAL PERMIT 1021/ VOLUNTARY COMPLIANCE AGREEMENT/ AND WIRELESS SCREENING FORM WMS 23- 231 RELATED TO THE PROPERTY LOCATED AT 616 DEL DIOS, ASSESSOR’S PARCEL NUMBER 690-552-05 AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body
Fiscal Impact:

There are no direct costs associated with an action on this item. However, an action to continue the item for further discussion at additional public hearings would result in additional expenditure of City staff and City Attorney time.

Summary:

SCMC section 17.12.175 provides a process for the City to change or revoke approved applications when conditions of approval are violated, it is necessary to resolve a nuisance, and/or when applications contain incorrect, false, or misleading information. Because this matter involves a Conditional Permit issued in 1962, a public hearing with notice to the owner and applicant and an opportunity for them to present evidence is required.

At its December 5, 2023, regular meeting, the City Council adopted Resolution No. 23-159 to initiate a public hearing to consider changing or revoking Conditional Permit 1021, the Voluntary Compliance Agreement and the Wireless Screening Form WMS 23-231 and set the hearing date for its January 16, 2024 City Council meeting. In order to change or revoke an entitlement, the City Council must make one or more of the following findings:

1. Conditions of approval of the approved application(s) are being violated or are not being satisfied.

2. The site or land use is being operated in a manner that constitutes a nuisance.

3. The application contained incorrect, false, or misleading information.

Staff conducted additional research into allegations that the property has not been maintained in accordance with the terms of Conditional Permit 1021 and that the property has been managed in a manner that constitutes a nuisance. Based on the evidence provided herein, staff believes that there is credibility to these claims and recommends that the City Council change the entitlement to reduce issues of public safety and nuisance by requiring a redesign of the site that addresses the safety issues of access and prevents trespass onto the property and unauthorized climbing of the tower. This, however, can be accomplished without a full revocation of the underlying 1 ATTACHMENT 1
99 Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
entitlement. The recommended changes to the entitlement, including added conditions of approval, are incorporated into Attachment 1, the draft Resolution.

Background:
1962 Conditional Permit
An existing telecommunications tower at the subject site is owned by American Tower Corporation (Owner). This facility was approved under a Conditional Permit in 1962 by the County of Orange (Attachment 2). Per the Conditional Permit, the telecommunications facility was approved for an approximate 28-foot by 58-foot building and a 70-foot tall antenna tower. Per Owner representatives, the tower component of the telecommunications facility was built to a height of 137.6 feet, but was then further extended to 156 feet when the height is measured from the highest existing appurtenance affixed to the tower.

Voluntary Compliance Agreement and Collocation Requests In 2020, the City denied a request for a wireless antenna collocation at this site when it was discovered that the height of the tower was not compliant with the terms of the 1962 Conditional Permit issued by the County of Orange prior to the annexation of this property into the City of San Clemente. This denial resulted in discussions between the Owner and the City.

The Owner ultimately agreed to voluntarily reduce the height of the existing tower to the 70-foot maximum height allowed by the 1962 Conditional Permit, which was the only violation of the Conditional Permit that the City was aware of at that time. A Voluntary Compliance Agreement was executed on July 6, 2023 between the Owner and the City to reduce the height of the existing antenna tower to the permitted height of 70 feet (Attachment 3). The City then approved building permit B23-1495 to de-stack the tower to the reduced height of 70 feet tall.

During the review of records that preceded entry into the Voluntary Compliance Agreement, legal counsel for the Owner represented that the tower is/was still used today for the wireless transmission of telephone services. This representation was maintained and repeated by Dish Wireless (Applicant) within Wireless Screening Form No. WMS 23-231 (Attachment 4), which was an Eligible Facilities Request to collocate equipment on the reduced-height tower.

Relying on these representations, staff approved the Voluntary Compliance Agreement and WMS 23-231 (which found the project met criteria for review under Section 6409(a) of the Spectrum Act, did not require discretionary review, and could proceed to building plan check). The aforementioned public meetings on October 17 and November 8, 2023, which called into question the validity of the Owner and Applicant’s representations and revealed Conditional Permit violations and nuisance at the site, occurred while the building permit was under review.

Section 6 of the Voluntary Complaint Agreement provides:

The City agrees that, following the reduction in the height of the tower, the Wireless Communications Facility will be in compliance with the 1962 CUP, and specifically that (i) the 1962 CUP is vested; (ii) the 1962 CUP does not contain an expiration date; and (iii) the 1962 CUP permits the current use of the Wireless Communications Facility for wireless telecommunication purposes; and (iv) the 1962 CUP permits a 70’ tower. As a result, the City shall not require a discretionary 1002
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CITY OF SAN CLEMENTE
approval, including but not limited to a new CUP or renewal of the 1962 CUP, in connection with the reduction in height and ongoing operation of the Wireless Communications Facility consistent with the 1962 CUP.

Public Testimony in November-December of 2023
With respect to public health and safety considerations, some of the most notable comments from the public made about the nuisances occurring at the site indicate that on regular occasions the tower is not secure and neighborhood children who find access to the site through the dilapidated fence, climb the tower, and throw items off the tower. This is not the case with other telecommunications facilities in the City that have different designs.

Additional comments from the public indicate an existing issue stemming from the Owner’s/Applicant’s access through the Harborview Estates neighborhood to deliver equipment to the site and the neighboring homeowners associations contending that the Owner/Applicant do not have the legal right to access the site in that manner and have been violating the conditions of Conditional Permit 1021 by doing so. Issues requiring a response from the Orange County Sheriff’s Department deputies have arisen from this contention about the Owner’s/Applicant’s access to the site.

Given the public testimony, City staff requested a tolling agreement from the Applicant, which was executed on November 17, 2023 and extended the shot-clock review deadline until November 30, 2023 for the building permit to install new wireless transmission equipment on the existing tower.

The City has not issued this building permit. Under FCC regulations, the failure to approve a permit for eligible facilities within the specified timeframes makes the permit “deemed approved.” The Applicant was noticed, however, that if it elects to install its equipment on the tower, it would be proceeding at its own risk should the City Council decide to change or revoke Conditional Permit 1021.

The Owner has also reported to the City that trespasses onto the site have been occurring, repairs to the site fence have been damaged and that there have been instances of vandalism and damage to vehicles left on site.

Additional Research into Access, Leasing History, and Alleged Nuisances During testimony at public meetings in November and December of 2023, members of the public asserted that:
 The facility was abandoned and non-operational for more than one year, contradicting the information provided within the Applicant and Owner’s discussions and applications to the City. San Clemente Municipal Code (SCMC) section 17.12.150 provides regulations related to the expiration of approvals, which indicate that a conditionally permitted land use is considered lapsed if it is inactive for a period of at least one year;  The facility has not been maintained in accordance with the conditions of approval included within Conditional Permit 1021; and
 The site has been operated in a manner that constitutes a public nuisance.

Following Council’s December 5, 2023 action to initiate a public hearing, staff gathered additional information related to these allegations.
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CITY OF SAN CLEMENTE
First, City staff requested that the Owner provide verification of their access rights to the property.

The Owner commissioned a survey (Attachment 5), which identified their easement rights. The survey (dated November 1, 2023) indicates that the Owner does not have access rights to their property via Del Dios, a private road which was used in October and November by contractors of the Owner to gain access to the site in July of 2023 to de-stack the tower (per Building Permit B23-1495) and to conduct landscape maintenance in October and November of 2023 in accordance with direction provided by an OCFA inspector. Rather, the Owner and their tenants and/or contractors should be and should have been accessing the site via the 20’ easement that links to the Salvador water tower site, approximately two miles south.

Second, City staff requested that the Owner provide verification of continued operation of the site.

The Owner provided a lease history (Attachment 6) detailing the various tenants and the dates of their license agreements. The Owner indicates that AT&T has had continuous license agreements since ATC acquired the site from AT&T in 2000. The “Schedule 2” license agreement indicates an initial term commencing February 28, 2000 with extension options for 30 years. The Owner also indicates that there was never an intention on ATC’s part to abandon the use.

It should be noted that SCMC section 17.72.060(B)(1) creates a rebuttable presumption that discontinued legal non-conforming uses have been abandoned, stating in part: “Nonconforming Uses discontinued for more than one year (365 consecutive calendar days) shall be rebuttably presumed to have been abandoned.” The California Supreme Court has explained that although “[t]he term ‘discontinued’ in a zoning regulation dealing with a nonconforming use is sometimes deemed to be synonymous with ‘abandoned,’” that is not the law. Hansen Brothers Enterprises, Inc. v. Board of Supervisors (1996) 12 Cal.4th 533, 569. Rather, “[c]essation of use alone does not constitute abandonment. ‘Abandonment of a nonconforming use ordinarily depends upon a concurrence of two factors: (1) An intention to abandon; and (2) an overt act, or failure to act, which carries the implication the owner does not claim or retain any interest in the right to the nonconforming use.’” Ibid. Pursuant to SCMC section 17.72.060(B)(3), the property owner has the burden to prove how many consecutive days a use has been discontinued and/or prove a use has not been abandoned.

Staff believes that the evidence provided by ATC is sufficient for the City Council to find that ATC has met its burden to prove that the use may continue and was not abandoned consistent with SCMC section 17.72.060(B)(3).

Third, City staff reviewed complaint history received through its Code Compliance Division related to this site. There have been five nuisance cases opened since 2012, the accompanying descriptions are the complaints received which initiated the cases:
 CE2012-0536 Holes in fence
 CE2012-1479 Hole in fence surrounding cell tower
 CE2016-1519 RSC cell towers vandalized & security breached  CE2018-0245 Transient Break-in
 CE2020-0468 Graffiti on the Ridge Trail private cell site There have been three additional complaints received in 2023. These complaints did not result in code cases because underground cable work does not require a city permit and because the 1024
Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
dispute over site access did not involve City property. However, the City did request proof of access/easement rights from the Owner, and a survey confirmed that they should not be accessing this property from Del Dios. The three additional complaints in 2023 were:
 CRM2306-0148 Complainant stated: “There is work being completed to the tower on APN# 690-552-05 (might also be referenced under 616 Del Dios, San Clemente, CA 92672) that does not have a permit. I have spoken to the city to confirm that no recent permits were pulled; however, someone from Cox cable knocked on my neighbors door to indicated that Fisher (name of contractor) will be starting construction on Monday in order to run Fiber to the tower. When asked whether they are putting a cell tower and 5G at that location, Brian Hunter from Cox Cable confirmed that that was the purpose of the work.”  CRM2306-0174 Complainant stated: “I believe there is working being done by Cox Communications subcontractor Team Fishel to move fiber from one location to another that is resulting in 3 days of boring and construction as they are taking up the sidewalk.”  CRM2309-0201 Complainant stated: “There is construction on the tower owned by American Tower. Per their CUP, they must be accessing site via Calle Del Cerro or Salvador via the Ridgeline Trail. They are occupying, blocking and damaging our private road on Del Dios. They do not have an Encroachment Permit.” Fourth, City staff reviewed calls for service, received between January 1, 2019 and December 14, 2023, by the Orange County Sheriff’s Department (OCSD) related to the site. There appear to be 18 calls for service related to the Owner’s property in that timeframe. All calls indicate juveniles trespassing onto Owner’s property, climbing the tower, and creating noise disturbances or throwing things from the tower. Typically, the teenagers had left the area prior to a deputy arriving for a patrol check, but in a couple of instances, deputies did make contact with the teens directing them to clear the property.

The final four calls for service occurred between November 9-10, 2023. These calls were related to a civil dispute between residents and the contractor(s) for the property Owner, with each party alleging that the other had trespassed. This occurred when Owner’s contractor was conducting landscape reduction in accordance with OCFA/CalFire standards. As previously noted, survey results (provided after November 10, 2023) indicated that the utilities easement routed from the City’s Salvador water tower property and did not include access from Del Dios.

Law Related to Public Nuisances
Under Civil Code section 3480, a public nuisance affects an entire community or neighborhood, or any considerable number of persons at the same time, although the extent of the annoyance or damage inflicted on individuals may be unequal. SCMC section 8.52.020 states: “No person shall allow, maintain or commit any public nuisance, or willfully fail to commit any legal duty relating to the removal of a public nuisance.”
While state law contains a definition of nuisance, under Government Code section 38771, cities are free to declare, by ordinance, what constitutes a nuisance. SCMC section 8.52.030 declares, in part, it “a public nuisance for any person owning, leasing, occupying or having charge or 1035
Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
possession of any premises in this City to maintain such premises in such manner that any of the following conditions are found to exist thereon:
***
P. Maintenance of premises in such condition as to be detrimental to public health, safety or general welfare or in such manner as to constitute a public nuisance as defined by Civil Code Section 3479;
***
W. Any building or structure which has any or all of the following conditions or defects:
***

8. Whenever, for any reason whatsoever, the building or structure, or any portion thereof, is manifestly unsafe for the purpose for which it is used, ***

11. Whenever the building or structure has been so damaged by fire, wind, earthquake or flood, or has become so dilapidated or deteriorated as to become an attractive nuisance to children who might play therein to their danger, or as to afford a harbor for vagrants, criminals or immoral persons, or as to enable persons to resort thereto for the purpose of committing nuisance or unlawful or immoral acts,
***
Y. A structure, improvement, property, and/or land use not in compliance with terms and/or conditions of any City of San Clemente issued permit or approval.

Additionally, pursuant to California Civil Code section 1714(a), “[e]veryone is responsible, not only for the result of his or her willful acts, but also for an injury occasioned to another by his or her want of ordinary care or skill in the management of his or her property….” Staff believes that recent trespasses onto the site via the dilapidated fence, climbing on and throwing objects from the tower and public health and safety concerns are sufficient for City Council to find a public nuisance occurring at the site within the meaning of SCMC section

8.52.030.

While the Owner disagrees that there is a nuisance, it has indicated that it would voluntarily agree to implement additional measures to address site security concerns resulting from trespassing and vandalization activities at the site. See Attachment 9. These measures are included in the draft Resolution.

Council Options:

Following a public hearing:
 The City Council could decline to change or revoke Conditional Permit 1021.  The City Council could change Conditional Permit 1021 by adding/modifying conditions of approval or standards for development and operation of the site to mitigate the complaints and calls for service and make the site safer for the public and eliminate the public nuisance. 1046
Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
 The City Council could revoke Conditional Permit 1021. If revoked, the Owner would need to apply for a new Conditional Use Permit (CUP) in order to reestablish a telecommunications use at the property. A new CUP would require review by the Planning Commission.

Environmental Review/Analysis
Each of the Council options referenced above is eligible for an exemption under CEQA:
 Taking no action would not require a CEQA determination.  Modifying the entitlement would be categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301 (14 CCR § 15301, Class 1:

Existing Facilities), Section 15302 (14 CCR § 15302, Class 2: New Construction or Conversion of Small Structures), and/or Section 15303 (14 CCR § 15303, Class 3: New Construction or Conversion of Small Structures).
 Revoking the entitlement (CP 1021) would not be a project under CEQA.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 24-09, which would find the project categorically exempt under Classes 1, 2 and 3, would make public nuisance findings and would modify the entitlement (CP 1021) to incorporate the following conditions of approval:

1. The Owner, its tenants, and any contractors, shall access the property only by means of Avenida Salvador easement – unless they can demonstrate easement rights via Del Dios.

2. The Owner, their tenants, and any contractors shall require escorted access for any vehicles other than light duty pickup trucks. Any damage to the Ridgeline trail observed by City staff to have occurred as a result of access by Owner, their tenants, and any contractors shall be repaired by a contractor of the City’s choosing within one (1) month of noticed damage.

3. The Owner and/or their tenant(s) shall permanently solve ongoing safety issues at the site by preventing persons from climbing the tower, which may be accomplished by replacing the lattice tower with a new monopole tower meeting the general design goals of the City’s Wireless Master Plan or other feasible solution approved by the City.

4. The Owner and/or its tenant(s) shall repair and/or replace the fence with a material and style supported by the City’s Code Compliance Manager and the City’s police services Captain or designee for the purpose of mitigating the issue of ongoing trespass.

5. The Owner and/or its tenant(s) shall install security cameras on the Property to alert the Owner of trespass and safety issues and the Owner shall take proactive responsibility for mitigating and preventing the issue of ongoing trespass.

6. The Owner and its tenants shall operate and maintain the site in a manner that complies with all applicable laws and regulations.

7. The Owner shall defend and indemnify the City.
..end
1057
Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
Attachments:

1. Resolution 24-09

2. Conditional Permit 1021

3. Voluntary Compliance Agreement dated July 6, 2023

4. Wireless Screening Form No. WMS 23-231

5. Survey of Easement Access to Site

6. History of ATC Lease/License Agreements

7. ATC redacted Lease/License Agreements

8. ATC’s suggestions to improve site security

9. Public comments
Notification:

Public Hearing published in the San Clemente Times, posted near the site, mailed to Owner and all property owners within 300 feet of property, and provided electronically to Owner, Applicant, and adjacent HOAs.
1068
ATTACHMENT 2
107
108
109
110
111
112
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Allen Matkins Leck Gamble Mallory & Natsis LLP
Attorneys at Law
One America Plaza
600 West Broadway, 27th Floor | San Diego, CA 92101-0903 Telephone: 619.233.1155 | Facsimile: 619.233.1158
www.allenmatkins.com
Shawn T. Cobb
E-mail: [email protected]
Direct Dial: 619.235.1550 File Number: 374393.00066/4871-5867-5369.1 Los Angeles | Orange County | San Diego | Century City | San Francisco | New York Allen Matkins
Via Electronic Mail
February 27, 2024
Mayor Cabral
Mayor Pro Tem Enmeier
Councilmember Duncan
Councilmember Knoblock
Councilmember Loeffler
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Re: Request for Extension of Continuance
Dear Mayor Cabral and Councilmembers:

Allen Matkins is counsel to American Tower Management LLC (“American Tower”) in relation to American Tower’s continuing operation of its wireless communication facility located at 616 Del Dios, Rancho San Clemente, California 92672 (APN: 690-552-05) in the City of San Clemente, California (the “Property”).

On January 16, 2024 the City Council continued its hearing on Agenda Item 8C concerning the Property for 60 days in connection with a complaint filed in the Superior Court for the County of Orange on January 8, 2024 captioned Harbor View Estates Homeowners Association v. City of San Clemente, et al., Case No. 30-2024-01371169. Since the January 16, 2024 City Council hearing, the parties to Harbor View Estates Homeowners Association, including American Tower, have engaged in good faith settlement discussions in an effort to resolve both that litigation and the community’s concerns regarding the Property more generally. American Tower respectfully requests that the City Council extend its continuance to allow those discussions to continue in a cooperative and efficient fashion.

Very truly yours,
Shawn T. Cobb
STC
ATTACHMENT 3
114
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 5, 2024 Agenda Item: 8D.

Submitted By: City Manager
Subject:
..titl e
CONSIDERATION OF COUNCILMEMBER TRAVEL AND TRAINING EXPENSES ..body Fiscal Impact:

Up to $110 related to a Councilmember attendance at the 2024 March Cal Cities Governance, Transparency and Labor Relations Policy Committee Meeting.

Summary:

In accordance with City Council Policy 1201-8, Attachment 1 details anticipated expenses related to travel and training for a City Councilmember. Because the proposed travel is anticipated to be less than $250, this item would not typically be placed on the Consent Agenda. However, at the previous meeting, this item was continued and thus needs to be addressed at a meeting of the City Council.

Background:

City Council Policy 1201-8 was adopted by the City Council to ensure that the full body of the City Council is aware of travel or training expenses. The policy indicates that any travel or training expense in excess of $250 will be placed on the consent calendar for consideration by the City Council. The full cost breakdown for the travel request is provided as Attachment 1 of this Administrative Report.

Travel and training expenses will be related to Councilmember Duncan attending the 2024 March Cal Cities Governance, Transparency and Labor Relations Policy Committee Meeting in Burbank, CA on March 21, 2024. When the travel was initially requested, Councilman Duncan thought the policy meeting would be conducted on two separate days. After it was discovered that the meeting would be held on a single day, it was determined that a hotel room was no longer necessary. Therefore, the updated expense is less than $250. However, since the item was continued from the last meeting, the City Council will need to consider whether the item is still relevant.

Council Options:
 Determine that the continued item is no longer relevant now that the travel is less than $250  Provide direction to staff.
 Request additional information about the travel and training. 115
Meeting Date: March 5, 2024 Agenda Item: 8D.

CITY OF SAN CLEMENTE 2
Environmental Review/Analysis
Not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
Authorize an expenditure of up to $110 related to City Councilmember Duncan’s mileage reimbursement to attend at the 2024 March Cal Cities Governance, Transparency and Labor Relations Policy Committee Meeting.
..end
Attachment:

1. Itemized travel for Councilmember Duncan

2. Email from Councilmember Duncan
Notification:

None.
116
ATTACHMENT 1
Itemized Travel and Training Expenses
Councilmember Chris Duncan
Training/Conference 2024 March Cal Cities Governance, Transparency and Labor Relations Policy Committee Meeting
Date(s) March 21, 2024
Location Burbank, CA
Registration Fees $0
Mileage Expense $110
Hotel Expense $0
Ground Transportation $0
Incidentals $0
Total Not to Exceed $110
117
From: Duncan, Chris
To: Farrell, Courtney
Cc: Hall, Andy
Subject: Re: Cal Cities Governance, Transparency and Labor Relations Policy Committee January Highlights Date: Wednesday, February 21, 2024 4:44:41 PM
Attachments: image002.png
image003.png
image002.png
image003.png
Hi Courtney,
I misunderstood and thought the meeting event was two days. Please cancel my hotel reservation. Accordingly, we do not need to bring this back to council.

Chris
Sent from my iPhone
On Feb 13, 2024, at 9:01 PM, Farrell, Courtney <[email protected]> wrote:

You are registered, I added the attachments to your calendar invite.

From: Duncan, Chris <[email protected]>
Sent: Tuesday, February 13, 2024 8:48 PM
To: Farrell, Courtney <[email protected]>
Subject: FW: Cal Cities Governance, Transparency and Labor Relations Policy Committee January Highlights
Chris Duncan
Councilmember
(949) 682-6023
From: Meg Desmond <[email protected]>
Sent: Thursday, February 1, 2024 1:30 PM
Subject: Cal Cities Governance, Transparency and Labor Relations Policy Committee January Highlights
ATTACHMENT 2
118
Dear GTLR Policy Committee Members:

Thank you for your participation in the January policy committee meeting. For those who were not able to attend or would like to review, attached are the meeting highlights. The highlights briefly describe what happened in the meeting. Also attached is the PowerPoint presentation.

The next GTLR policy committee meeting will be held in person on Thursday, March 21at the Los Angeles Marriott Burbank Airport Hotel, 2500 North Hollywood Way, Burbank. The meeting will begin at 10:00 a.m. and scheduled to adjourn by 2:00 p.m. Lunch will be provided.

If you are planning to attend the policy committee meetings, we request that you RSVP by Friday, March 15 by clicking on this link.

If you need lodging, please click on this link: Hotel in Burbank, California | Los Angeles Marriott Burbank Airport.

Please let me know if you have any questions.

Warm Regards,
Meg Desmond
Associate Manager, Legislative Administration
League of California Cities
Office: 916-658-8224
Cell: 916-837-6822
[email protected] | www.calcities.org
Strengthening California Cities
through Advocacy and Education
Twitter │ Facebook │ YouTube │ LinkedIn
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910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 5, 2024 Agenda Item: 9A.

Submitted By: Beaches, Parks and Recreation
Subject:
..titl e

CONSIDERATION OF ITEMS FOR ESTABLISHING THE ARTS & CULTURE COMMITTEE 2024 ..body WORK PLAN
Fiscal Impact:

There is no fiscal impact associated with the creation of a committee work plan. However, some items, if approved, could result in future projects. Staff would return to the City Council with appropriate budget approvals and additional recommendations before project implementation.

Summary:

At its February 15, 2024, meeting, the Arts and Culture Committee (“ACC”) reviewed and discussed potential projects and subject matters that could support the objectives of the Committee. Each ACC member provided items to be considered by the Committee. The Committee members either individually or collectively agreed that the work plan items are needed to address the framework/foundation for the future of arts and culture in San Clemente. The ACC unanimously supported the work plan proposed in Attachment 2 and summarized below.

Background:

The ACC recommends the following items for approval; full details are included in Attachment 2:

1. Establish ad-hoc subcommittees for the following subject matters:
a. Amphitheater and performing arts facility
b. Public art exhibits/displays
c. Concerts and live music events

2. Reestablish the utility box art program

3. Define the mission and visions for the ACC

4. Update the visual arts in public places policy
Council Options:
 Adopt Resolution No. 24-29, which will approve the Arts and Culture Committee 2024 Work Plan.
 Modify the 2024 Work by either (a) removing proposed items or (b) adding items and adopt Resolution No. 24-29.
120
Meeting Date: March 5, 2024 Agenda Item: 9A.

CITY OF SAN CLEMENTE 2
 Continue the item with further direction provided to staff and the Committee.  Deny the Work Plan.

Environmental Review/Analysis
Discussion of the contents of a Committee Work Plan is not a “project” pursuant to 2024 State California Environmental Quality Act Guidelines Section 15378. Further environmental analysis will be conducted on a project-by-project basis at the time those projects are considered for approval.

Recommended Actions:

Staff Recommendation ..recommendation
Staff and the Arts and Culture Committee recommend that the City Council adopt Resolution No. 24-29 to approve the Arts and Culture Committee 2024 Work Plan. ..end
Attachment:

1. Resolution No. 24-29

2. Arts & Culture 2024 Work Plan – Proposed
Notification:

None.
121
ATTACHMENT 1
RESOLUTION NO. 24-29

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING THE ARTS
AND CULTURE COMMITTEE 2024 WORK PLAN
WHEREAS, San Clemente Municipal Code (“S.C.M.C.”) § 2.45.010, states that the Arts and Culture Committee is to act in an advisory capacity to the City Council in all matters pertaining to the arts and cultural program including developing and making recommendations on arts acquisition and proposals for artworks for public buildings and public spaces; and
WHEREAS, the S.C.M.C. § 2.45.020(e) requires that the Arts and Culture Committee develop an annual work plan with specific goals and objectives for the coming year and submit it to the City Council for approval annually; and WHEREAS, on February 15, 2024, the Arts and Culture Committee held a special meeting to review and recommend approval of six items to be included in its 2024 Work Plan.

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

Section 1. That the above recitations are true and correct and incorporated herein.

Section 2. The Arts and Culture Committee 2024 Work Plan shall consist of all items presented to the City Council on March 5, 2024, which are fully incorporated and included in Exhibit A, attached hereto.

Section 3. The Committee may review all additional items that require consideration through the course of the Beaches, Parks & Recreation Department’s routine functions and items directed by vote of the City Council for further consideration by the Committee.

Section 4. 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 day of , .

ATTEST:

City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
122
Resolution No. 24-29 Page 2

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. 24-29 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
123

ANNUAL WORK PLAN
FY2024

EXHIBIT A
COMMISSION/COMMITTEE NAME:Arts & Culture Committee
Please be concise in responding to the below questions. Additional forms may be attached, if needed.

Project Name:(No. 1) Establish an ad-hoc subcommittee to review and amphitheater and performing arts facility Purpose, Goals and Deliverables of Project:

Pursuant to Council direction, the ACC will establish a subcommittee to continue evaluating the options in establishing an outdoor amphitheater in San Clemente, including locations and funding. The subcommittee will also consider the feasibility of a future performing arts facility. Findings of the subcommittee will be presented to the City Council.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget?Unknown.

Project Timeline (Anticipated Start and End Dates):Ongoing Resources Needed (including Staff hours):Staff hours - unknown at this time.

Is this a new project or unfinished project from the prior fiscal year?New Project Name:(No. 2) Establish an ad-hoc subcommittee to initiate public art exhibits/displays Purpose, Goals and Deliverables of Project:

This subcommittee would work to evaluate opportunities to initiate public art displays at citywide events and other related functions. For example, the Committee anticipates re-establishing the cultural art display at the annual Cinco de Mayo Fiesta at Max Berg Park that encouraged youth and adults to focus on the heritage and artists of the Hispanic culture.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget?Unknown.

Project Timeline (Anticipated Start and End Dates):Ongoing Resources Needed (including Staff hours):Staff hours - 10 hours; possible prizes for art winner Is this a new project or unfinished project from the prior fiscal year? New 124

ANNUAL WORK PLAN
FY 2024
COMMISSION/COMMITTEE NAME:Arts & Culture Committee
Please be concise in responding to the below questions. Additional forms may be attached, if needed.

Project Name:(No. 3) Establish an ad-hoc subcommittee to support live entertainment at city concerts and events Purpose, Goals and Deliverables of Project:

This subcommittee will meet with staff to provide input on the band selections for the City's annual Summer Concert Series, as well as, live entertainment at other city-sponsored events. Musician costs are included in the Beaches, Parks & Recreation Department annual budget.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget?Appx. $9,000 Project Timeline (Anticipated Start and End Dates):Ongoing Resources Needed (including Staff hours):Staff hours - 5 hours Is this a new project or unfinished project from the prior fiscal year?New Project Name:(No. 4) Define the mission and vision for the Arts and Culture Committee Purpose, Goals and Deliverables of Project:

The Committee seeks to gather community feedback and input to develop an understanding and vision for the foundation of arts and culture in San Clemente.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget?None Project Timeline (Anticipated Start and End Dates): June 2024 Resources Needed (including Staff hours):Staff hours - 20 hours Is this a new project or unfinished project from the prior fiscal year?New 125

ANNUAL WORK PLAN
FY 2024
COMMISSION/COMMITTEE NAME:Arts & Culture Committee
Please be concise in responding to the below questions. Additional forms may be attached, if needed.

Project Name:(No. 5) Re-establish the utility box art program Purpose, Goals and Deliverables of Project:

In 2011, the City Council approved an initial phase of the utility box art program, "Street Art", that encouraged community members to submit designs that would enhance traffic control boxes within the city. The program was successful and continued for an additional three phases. There are several boxes that were not painted and some have now been retired due to normal wear and tear. The ACC will re-establish this program and initiate and new call for artists.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? Appx. $10,000; to be included in a future budget adoption Project Timeline (Anticipated Start and End Dates):March -December 2024 Resources Needed (including Staff hours):Staff hours: 30 hours Is this a new project or unfinished project from the prior fiscal year?New Project Name:(No. 6) Update the visual art in public places policy Purpose, Goals and Deliverables of Project:

In 2017, the City Council approved a framework document related to the implementation of art in public places. The ACC will work to update the policy so it aligns with best practice of public art implementation.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget?None.

Project Timeline (Anticipated Start and End Dates):March-October 2024 Resources Needed (including Staff hours):Staff Hours: 10 hours Is this a new project or unfinished project from the prior fiscal year?New 126

ANNUALWORKPLAN
FY 2024
ATTACHMENT 2
COMMISSION/COMMITTEE NAME: Arts & Culture Committee
Please be concise in responding to the below questions. Additional forms may be attached, if needed.

Project Name: (No. 1) Establish an ad-hoc subcommittee to review and amphitheater and performing arts facilityPurpose, Goals and Deliverables of Project:

Pursuant to Council direction, the ACC will establish a subcommittee to continue evaluating the options in establishing an outdoor amphitheater in San Clemente, including locations and funding. The subcommittee will also consider the feasibility of a future performing arts facility. Findings of the subcommittee will be presented to the City Council.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? Unknown.Project Timeline (Anticipated Start and End Dates): OngoingResources Needed (including Staff hours): Staff hours - unknown at this time.Is this a new project or unfinished project from the prior fiscal year? New.Project Name:(No. 2) Establish an ad-hoc subcommittee to initiate public art exhibits/displaysPurpose, Goals and Deliverables of Project:

This subcommittee would work to evaluate opportunities to initiate public art displays at citywide events and other related functions. For example, the Committee anticipates re-establishing the cultural art display at the annual Cinco de Mayo Fiesta at Max Berg Park that encouraged youth and adults to focus on the heritage and artists of the Hispanic culture.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? Unknown.Project Timeline (Anticipated Start and End Dates): OngoingResources Needed (including Staff hours):Staff hours - 10 hours; possible prizes for art winnerIs this a new project or unfinished project from the prior fiscal year? New 127

ANNUALWORKPLAN
FY 2024
COMMISSION/COMMITTEE NAME: Arts & Culture Committee
Please be concise in responding to the below questions. Additional forms may be attached, if needed.

Project Name: (No. 3) Establish an ad-hoc subcommittee to support live entertainment at city concerts and eventsPurpose, Goals and Deliverables of Project:

This subcommittee will meet with staff to provide input on the band selections for the City's annual Summer Concert Series, as well as, live entertainment at other city-sponsored events. Musician costs are included in the Beaches, Parks & Recreation Department annual budget.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? Appx. $9,000Project Timeline (Anticipated Start and End Dates): OngoingResources Needed (including Staff hours): Staff hours - 5 hoursIs this a new project or unfinished project from the prior fiscal year? New.Project Name: (No. 4) Define the mission and vision for the Arts and Culture CommitteePurpose, Goals and Deliverables of Project:

The Committee seeks to gather community feedback and input to develop an understanding and vision for the foundation of arts and culture in San Clemente.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? NoneProject Timeline (Anticipated Start and End Dates): June 2024Resources Needed (including Staff hours): Staff hours - 20 hoursIs this a new project or unfinished project from the prior fiscal year? New. 128

ANNUALWORKPLAN
FY 2024
COMMISSION/COMMITTEE NAME: Arts & Culture Committee
Please be concise in responding to the below questions. Additional forms may be attached, if needed.

Project Name: (No. 5) Re-establish the utility box art programPurpose, Goals and Deliverables of Project:

In 2011, the City Council approved an initial phase of the utility box art program, "Street Art", that encouraged community members to submit designs that would enhance traffic control boxes within the city. The program was successful and continued for an additional three phases. There are several boxes that were not painted and some have now been retired due to normal wear and tear. The ACC will re-establish this program and initiate and new call for artists.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? Appx. $10,000; to be included in a future budget adoptionProject Timeline (Anticipated Start and End Dates): March -December 2024Resources Needed (including Staff hours): Staff hours: 30 hoursIs this a new project or unfinished project from the prior fiscal year? New.Project Name: (No. 6) Update the visual art in public places policyPurpose, Goals and Deliverables of Project:

In 2017, the City Council approved a framework document related to the implementation of art in public places. The ACC will work to update the policy so it aligns with best practice of public art implementation.

Estimated Project Cost. If cost is involved, is it included in the adopted City budget? None.Project Timeline (Anticipated Start and End Dates): March-October 2024Resources Needed (including Staff hours): Staff Hours: 10 hoursIs this a new project or unfinished project from the prior fiscal year? New. 129
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 5, 2024 Agenda Item: 9B.

Submitted By: Public Works
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

LEASE WITH THE STATE LANDS COMMISSION FOR USE AND MAINTENANCE OF PUBLIC

BEACH ACCESS FACILITIES AT LINDA LANE, EL PORTAL AND MARIPOSA AND FINDING

THE PROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, CLASS 1 ..body
Fiscal Impact:

This Lease does not result in any change to the City’s General Fund operational cost for the maintenance of Linda Lane railroad undercrossing, El Portal railroad crossing, and Mariposa railroad undercrossing.

Summary:

The City’s lease with the State Lands Commission for the use and maintenance of beach access points on State Lands property at Linda Lane, El Portal and Mariposa (Attachment 1 Location Map) needs to be renewed to allow for public use of these access points. Before the City Council is a resolution authorizing the City Manager to execute a 15-year lease ending February 1, 2038.

Background:

The public utilizes, and the City maintains, beach access points, including an access ramp and box culvert at the Linda Lane railroad undercrossing, a beach access stairway, riprap with concrete footings at the El Portal railroad crossing, and a beach access stairway, riprap, and precast box culvert with concrete retaining walls at the Mariposa railroad undercrossing. These facilities are located on State Lands property and the City’s lease to use that property and maintain the facilities needs to be renewed for continued public use of the facilities. The proposed Lease (Attachment 3) is for the maintenance and use of these facilities for 15 years, beginning February 2, 2023 through February 1, 2038.

Council Options:
 Adopt Resolution No. 24-30, authorizing the City Manager to execute a Lease with the State Lands Commission and finding the action categorically exempt under the California Environmental Quality Act, Class 1.
 Modify and adopt Resolution No. 24-30.
 Continue the Item and direct staff to provide additional information. 130
Meeting Date: March 5, 2024 Agenda Item: 9B.

CITY OF SAN CLEMENTE 2
 Deny Resolution No. 24-30, which could prohibit the continued use of the beach access points.

Environmental Review/Analysis:

The Lease and actions thereunder are categorically exempt under the California Environmental Quality Act (CEQA) under Class 1, Section 15301 of the state CEQA Guidelines (Existing Facilities, 14 CCR 15301).

Recommended Actions:

Staff Recommendation ..recommendation
STAFF RECOMMENDS the City Council adopt Resolution No. 24-30, which would:

1. Find the project categorically exempt under the California Environmental Quality Act (CEQA) under Class 1, Section 15301 of the state CEQA Guidelines (Existing Facilities, 14 CCR 15301); and

2. Authorize the City Manager to execute a Lease with the State Lands Commission for the use and maintenance of public beach access facilities at Linda Lane, El Portal and Mariposa. ..end
Attachment:

1. Location Map

2. Resolution No. 24-30

3. Lease Agreement
Notification:

None.
131

VIA MECHA

VISTA MARINA

ARENOSO LN LINDA LN
S. ALAMEDA LN CORONADO LN

CORTO LN
N. ALAMEDA

STA ANA LN

LA PALOMA MARQUITA MARIPOSA

ENCINO LN

ELENA LN

PASEO DE CRISTOBAL

PASADENA CT

ESPLANADE

CORONA LN

ACEBO LN

LA RAMBLA

AVE SANTA BARBARA AVE MONTEREY

CAZADOR LN

POCO PASEO

OLA VISTA

AVE MADRID

OLA VISTA

AVE ROSA

CLE CONCHITA

PACIFIC OCEAN

MUNICIPAL PIER

MARIPOSA AVE SERRA

AVE CABRILLO AVE DEL MAR AVE GRANADA

AVE SEVILLE
A. T. & S. F. R. R.

CLE LAGO

A V E T R A B U C O

AVE MIRAMAR

AVE ARAGON

EL CAMINO REAL (COAST HWY)

AVE PICO

LOS OBREROS LN

BOCA DE LA PLAYA

AVE ESTACION CLE DESHECHA SENDA DE LA PLAYA

CLE COLINA

BUENA VIS CLE SACRAMENTO

AVE HACIENDA

CLE LAS BOLAS

LA PLACENTIA

CLE VALLE

AVE DE LA CLE REDONDEL

CLE BONITO

CLE MIRADOR

AVE DEL REPOSO

EL PRADO

RINCON CT

CHIQUITA

EL PORTAL

LA RONDA

AVE SIERRA

AVE SIERRA

REVUELTA CT

AVE LAS FLORES

AVE DE LA ESTRELLA

AVE DE LA ESTRELLA
PORTAL

CLE CAMPO
A. T. & S. F. R. R.

A. T. & S. F. R. R. AVE DE LA GRULLA

AVE PELAYO

PORTAL ST

AVE FLORENCIA DIJE CT

MARIPOSA

MARQUITA CANADA

PONIENTE

ESCALONES

CLE PUENTE CANADA ESCALONES AVE DEL PONIENTE

LOMA LN

CLE EMPALME

AVE CABALLEROS

EL ORIENTE

AVE DE LA PAZ AVE LA CUESTA

CLE SALIDA

AVE SERRA

AVE SOLANO

ELORIENTE

PACIFIC OCEAN

PACIFIC OCEAN

VIA PICO PLAZA

ESTRELLA

SAN DIEGO FREEWAY

EL CAMINO REAL (COAST HWY)

AVE DEL

EL CAMINO REAL
DE LOS

CALLE MOLINOS

SAN CLEMENTE WATER RECLAMATION
PLANT
COMM. CENTER

AVE VICTORIA

SANTA AVE BAR

AVE CABRILLO

AVE DEL MAR
LN.

LA PALOMA

AVE CABRILLO
W. AVE. PALIZADA

PACIFIC OCEAN

TRAFALGAR CANYON
BARA
AVE. VICTORIA

MARBLEHEAD

PUBLIC BEACH ACCESS

FACILITIES

PROJECT

LOCATIONS

NOT TO SCALE

LOCATION MAP
ATTACHMENT 1
132
ATTACHMENT 2
4893-7738-2247 v1
RESOLUTION NO. 24-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE A LEASE WITH THE STATE

LANDS COMMISSION FOR THE USE AND

MAINTENANCE OF PUBLIC BEACH ACCESS FACILITIES
AT LINDA LANE, EL PORTAL AND MARIPOSA; AND

FINDING THE PROJECT CATEGORICALLY EXEMPT

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA) UNDER CLASS 1, SECTION 15301 OF THE
STATE CEQA GUIDELINES (EXISTING FACILITIES, 14
CCR 15301)
WHEREAS, the State Lands Commission has previously approved the use and maintenance of beach access points, including an access ramp and box culvert at the Linda Lane railroad undercrossing, a beach access stairway, riprap with concrete footings at the El Portal railroad crossing, and a beach access stairway, riprap, and precast box culvert with concrete retaining walls at the Mariposa railroad undercrossing under a lease with the City; and
WHEREAS, on February 2, 2023, the previous Lease between the State Lands Commission and the City expired; and
WHEREAS, the State Lands Commission and City have a public interest in renewing the Lease from February 2, 2023 through February 1, 2038.

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

SECTION 1. That based on substantial evidence in the record as a whole, a lease with the State Lands Commission for the use and maintenance of beach access points, including an access ramp and box culvert at the Linda Lane railroad undercrossing, a beach access stairway, riprap with concrete footings at the El Portal railroad crossing, and a beach access stairway, riprap, and precast box culvert with concrete retaining walls at the Mariposa railroad undercrossing is categorically exempt under the California Environmental Quality Act (CEQA) under Class 1, Section 15301 of the state CEQA Guidelines (Existing Facilities, 14 CCR 15301) because it consists of consists of the operation, repair, maintenance, leasing, or minor alteration of existing public facilities, involving negligible or no expansion of existing or former use, and there is no possibility of a direct or foreseeable indirect significant impact on the environment.

SECTION 2. That the City Manager is authorized and directed to execute a lease with the State Lands Commission for the use and maintenance of the public beach access facilities at Linda Lane, El Portal, and Mariposa in a form substantially similar to that presented to the City Council on March 5, 2024 and to execute such other 133
Resolution No. 24-30 Page 2
4893-7738-2247 v1
documents and take such other and further actions as may be necessary and proper to accomplish the purpose of this resolution.

SECTION 3. That 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 5th day of March, 2024.

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. 24-30 was adopted at a regular meeting of the City Council of the City of San Clemente held on _______ day of March 2024, 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 ____________, 2024. ______________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
134

RECORDED AT THE REQUEST OF
AND WHEN RECORDED MAIL TO:

STATE OF CALIFORNIA
California State Lands Commission
Attn: Land Management Division
100 Howe Avenue, Suite 100-South
Sacramento, CA 95825-8202

STATE OF CALIFORNIA

OFFICIAL BUSINESS
Document entitled to free recordation
pursuant to Government Code Section
27383

SPACE ABOVE THIS LINE FOR RECORDER'S USE
County: Orange
LEASE 8523
This Lease consists of this summary and the following attached and incorporated parts:

Section 1 Basic Provisions
Section 2 Special Provisions Amending or Supplementing Section 1 or 3 Section 3 General Provisions
Exhibit A Land Description
Exhibit B Site and Location Map
SECTION 1: BASIC PROVISIONS
THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to CITY OF SAN CLEMENTE, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this Lease.

ATTACHMENT 3
135

MAILING ADDRESS:
910 Calle Negocio
San Clemente, CA 92673
LEASE TYPE:

General Lease – Public Agency Use
LAND TYPE:

Sovereign
LOCATION:

In the Pacific Ocean, in the City of San Clemente, as described in Exhibit A attached and by this reference made a part hereof.

LAND USE OR PURPOSE:

Use and maintenance of public beach access facilities, including beach access ramp and box culvert at the Linda Lane railroad undercrossing, a beach access stairway, riprap with concrete footings at the El Portal railroad crossing, and a beach access stairway, riprap, and precast box culvert with concrete retaining walls at the Mariposa railroad undercrossing.

TERM:
15 years; beginning February 2, 2023; ending February 1, 2038, unless sooner terminated as provided under this Lease.

CONSIDERATION:

The public use and benefit, with Lessor reserving the right at any time to set a monetary rent if Lessor finds such action to be in the State’s best interests. Subject to modification by Lessor as specified in Paragraph 3(c) and (e) of Section 3 - General Provisions.

LIABILITY INSURANCE:

Liability insurance in an amount no less that $1,000,000 per occurrence as specified in Section 3, Paragraph 9 “Insurance”; Lessee may satisfy all or part of the insurance requirement through maintenance of a staff-approved self-insurance program as specified in Section 2, Paragraph 6.

SURETY BOND OR OTHER SECURITY:
$0
136

SECTION 2: SPECIAL PROVISIONS

BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS:

1. Lessee will maintain, in good standing, a license agreement with the Orange County Transportation Authority (OCTA), a public entity, for the use and operation of the property lying landward and adjacent to the lease premises.

2. Lessee shall provide containers to receive trash and refuse. Refuse containers shall be located for convenient use by members of the public and shall be sufficient size and number to contain refuse generated on the lease premises. The containers shall be covered and emptied regularly to prevent them from overflowing or creating unhealthy, unsightly, or unsanitary conditions. The contents of the containers shall be disposed of by Lessee or others acting pursuant to Lessee's direction at an authorized landfill or other garbage reception areas as provided under law applicable at the time of collection.

3. Lessee shall provide Lessor’s staff a copy of the regular maintenance schedule for the underpasses. Such maintenance shall be conducted to keep the underpasses clear and accessible.

4. Lessee shall provide appropriate signage that encourages the public to use the improved beach access. Signage will include warnings regarding crossing the OCTA railroad tracks at unimproved locations and address other safety considerations as required.

5. Lessee acknowledges that the lands described in Exhibit A of this Lease are subject to the Public Trust and are presently available to members of the public for recreational use, waterborne commerce, navigation, fisheries, open space, or other recognized Public Trust uses. Consistent with subparagraph 6(a) of Section 3 of this Lease, Lessee agrees that its use of the Lease Premises must not interfere or limit the Public Trust rights of the public except to the extent necessary to protect the public health and safety during the performance of activities authorized under the Lease.

Lessee further agrees that any such temporary interference or limitations will be kept to the minimum duration and extent necessary to ensure public health and safety.

6. Lessee may satisfy the requirements of Section 1 “Liability Insurance” and Section 3, Paragraph 9 “Insurance” by providing Lessor with evidence of its self-insurance program being applicable to its activities and improvements authorized by this Lease, on the condition that:
137

a. Lessor’s staff is satisfied that the self-insurance program adopted and maintained provides coverage equivalent to coverage required under Section 1 “Liability Insurance”, and Section 3, Paragraph 9 “Insurance”; b. For any line of self-insurance that is regulated by the State, Lessee shall provide documentation demonstrating qualification and compliance with all applicable rules and regulations, including self-insurance certification; c. Each year of the Lease, no later than the anniversary date of this Lease, Lessee shall provide Lessor’s staff with any and all evidence that each selfinsurance program is maintained; d. Should Lessee elect to terminate all or any line or lines of self-insurance, Lessee shall, at least 60 days prior to such termination, provide Lessor with written notice of such termination, accompanied by written evidence of new insurance coverage as required by Section 1 “Liability Insurance,” and Section 3, Paragraph 9 “Insurance.”

7. Lessee acknowledges that the Lease Premises and adjacent upland are located in an area that may be subject to effects of climate change, including sea level rise.

To prepare for the potential effects of sea level rise, including flood damage, erosion damage, tsunamis, and damage from waves and storm-created debris, the Lessee acknowledges and agrees to the following:
a. Hazards associated with sea level rise may require additional maintenance or protection strategies regarding the Lease Premises.
b. Any additional maintenance or protection strategies necessitated by such hazards may require additional approval by Lessor pursuant to Section 3, paragraph 5(a) and (d) and be subject to environmental review. [Remainder of page to remain blank]
138
Form51.16 (Rev. 10/14)

SECTION 3

GENERAL PROVISIONS

1. GENERAL
In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control.

2. DEFINITIONS
For the purposes of this Lease, the following terms shall be defined as stated below:
“Additions” shall be defined as any use or Improvements other than those expressly authorized in this Lease.
“Alterations” shall be defined as any material change in the size, scope, density, type, nature, or intensity of Improvements on the Lease Premises from what is authorized in this Lease.

Alterations shall also include any modifications, alterations, or renovations of the land or waterways on the Lease Premises other than those authorized by this Lease. “Breach” shall be defined as a party's unjustified or unexcused nonperformance of a contractual duty the party is required to immediately perform. “Damages” shall include all liabilities, demands, claims, actions or causes of action whether regulatory, legislative or judicial in nature; all assessments, levies, losses, fines, penalties, damages, costs and expenses, including, without limitation: (i) reasonable attorneys’, accountants’, investigators’, and experts’ fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (ii) costs and expenses incurred to bring the Lease Premises into compliance with Environmental Laws, a court order, or applicable provisions of a Regulatory Agency. The term “Damages” also includes, expressly, those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise.
“Default” shall be defined as a material Breach of magnitude sufficient to justify termination of the Lease.
“Environmental Law” shall be defined as and include all federal, state, and local environmental, health, and safety laws, statutes, ordinances, regulations, rules, judgments, orders, and notice requirements, which were in effect as of the date of execution of this Lease or are subsequently enacted and lawfully applied hereto, which regulate or relate to (a) the protection or clean-up of the environment; (b) the use, treatment, storage, transportation, handling or disposal of hazardous, toxic or otherwise dangerous substances, wastes or materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; (e) the health and safety of persons or property; or (f) impose liability with respect to any of the foregoing, including without limitation, the California Environmental 139
Form51.16 (Rev. 10/14)

Quality Act (CEQA) [PRC §§ 21000 et seq.]; the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) [42 USCS §§ 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 (RCRA) [42 USCS §§ 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 USCS §§ 1251 et seq.]; the Toxic Substances Control Act (TSCA) [15 USCS §§ 2601 et seq.]; the Hazardous Materials Transportation Act (HMTA) [49 USCS §§ 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USCS §§ 136 et seq.]; the Superfund Amendments and Reauthorization Act [42 USCS §§ 6901 et seq.]; the Clean Air Act [42 USCS §§ 7401 et seq.]; the Safe Drinking Water Act [42 USCS §§ 300f et seq.]; the Solid Waste Disposal Act [42 USCS §§ 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USCS §§ 1201 et seq.]; the Emergency Planning and Community Right to Know Act [42 USCS §§ 11001 et seq.]; the Occupational Safety and Health Act [29 USCS §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C §§ 25280 et seq.]; the California Hazardous Substances Account Act [H & S C §§ 25300 et seq.]; the California Hazardous Waste Control Act [H & S C §§ 25100 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [H & S C §§ 24249.5 et seq.]; the Porter-Cologne Water Quality Act [Water C §§ 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above. “Hazardous Material” shall be defined as and include any substance which falls within the definition of hazardous substance, hazardous waste, hazardous material, toxic substance, solid waste, pollutant, or contaminant, under any Environmental Law. “Improvements” shall be defined as any modification, alteration, addition, or removal of any material, and any other action which serves to change the condition of the Lease Premises from the natural state whether situated above, on, or under the Lease Premises.

Improvements include, but are not limited to buildings, structures, facilities, decks, docks, wharves, piers, walks, curbs, bridges, buoys, landscaping, roadways, shoreline protective structures of all types, foundations, pilings or similar support structures whether above or below the water line, fences, utilities, pipelines, and any other construction of any type situated on the Lease Premises.
“Lease” shall be defined as this lease contract together with all amendments and exhibits. “Lease Premises” shall be defined as the area of land, together with any improvements located thereon, the use and occupancy of which is authorized by this Lease. “Lessor” shall be defined as the state of California, acting by and through the California State Lands Commission, including the Commissioners, their alternates and designates, the Executive Officer, and the staff of the California State Lands Commission. “Regulatory Agency” shall include any Federal, State, County, Municipal, or Local agency having jurisdiction over the Lease Premises.
“Repairs” shall be defined as all work of any kind made to maintain, change, restore, strengthen, replace, alter, or otherwise affect any Improvement on the Lease Premises. 140
Form51.16 (Rev. 10/14)

“Residence” shall be defined as any Improvement, whether permanent, movable, or temporary, or a portion thereof, which is for the time being a home or place of lodging. A Residence includes any Improvement affixed to the land such as trailers or cabins, built on a raised foundation such as stilts or pilings, and floating residences such as boats, barges, arks, and houseboats, and any combination of such Improvements which provide residential accommodations to the Lessee or others. “Residence” shall not include transitory, intermittent, recreational use of facilities such as campgrounds. “Residential Use” shall be defined as Improvements such as, but not limited to, sundecks, and sunrooms which are extensions of, or additions to, the upland property and are not waterdependent uses. Although the various uses or Improvements which may fall under this definition may vary by geographic area, lease type, or other factors, it is the intention of the parties to include in this definition all uses and Improvements which are not water-dependent but residential in nature, or those uses and Improvements which are not consistent with common law public trust principles and values.

3. CONSIDERATION
(a) Absolute Triple Net Lease
This Lease is an absolute triple net lease, pursuant to which Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities and repairs or other costs or obligations associated with the Leased Premises, except as expressly stated herein.
(b) Rent
Lessee agrees to pay Lessor rent as stated in this Lease, in annual installments, for the use and occupancy of the Lease Premises. The first installment shall be due on or before the beginning date of this Lease and all subsequent installments shall be due on or before each anniversary of its beginning date during each year of the Lease term, or as otherwise provided in this Lease. Said sums shall be paid in lawful money of the United States of America. Lessee shall send said rent to the mailing address of Lessor. Timeliness of receipt of remittances sent by mail shall be governed by the postmark date as stated in Government Code Section 11002. Invoices for rent due may be provided by Lessor as a courtesy. Lessor’s failure to, or delinquency in, providing invoices shall neither excuse Lessee from paying rent, nor extend the time for paying rent. (c) Modification
Lessor may modify the method, amount, or rate of consideration effective on each fifth anniversary of the beginning date of this Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary of the beginning date. No 141
Form51.16 (Rev. 10/14)

such modification shall become effective unless Lessee is given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days’ notice prior to the effective date of the increase, whichever provides a greater notice period.

If the consideration for this Lease is based on a percentage of income, royalties, profits, or any similar business performance indicators, Lessee shall provide Lessor with financial statements and all other documents necessary to determine the relevant basis for income. (d) Penalty and Interest
Any installments of rent accruing under this Lease not paid when due shall be subject to a delinquency charge equal to five percent (5%) of the principal sum due. Annual payments shall bear interest as specified in Public Resources Code Section 6224 and the Lessor's then existing administrative regulations governing penalty and interest. (e) Non-Monetary Consideration
If the consideration to Lessor for this Lease is the public use, benefit, health, or safety, Lessor shall have the right to review such consideration at any time and set a monetary rental if the Lessor, at its sole discretion, determines that such action is in the best interest of the State. Lessee’s assignment or transfer of this Lease pursuant to Section 3 Paragraph 11 below to any third party which results in royalties, profits, or any form of compensation, whether monetary or otherwise, shall give Lessor the right to reevaluate the requirements of this Lease as stated in Section 3 Paragraph 11. Lessee shall be given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days’ notice prior to the effective date that this Lease is converted to a monetary rental, whichever provides more notice.
(f) Place for Payment of Rent
All rent that becomes due and payable under this Lease shall be paid to Lessor in person or by United States mail at the Sacramento Offices of the California State Lands Commission, currently at 100 Howe Avenue, Suite 100-South, Sacramento, CA 95825-8202, or at any other place or places that Lessor may designate by written notice to Lessee.

Alternately, Lessee may contact Lessor’s accounting department for Lessor’s current practices for payment by credit card or electronic fund transfer.

4. BOUNDARIES
This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundary or title claims which may be asserted presently or in the future.

5. LAND USE
142
Form51.16 (Rev. 10/14)

(a) General
(1) Lessee shall use the Lease Premises only for the purpose or purposes stated in this Lease and only for the operation and maintenance of the Improvements expressly authorized in this Lease. Lessee shall commence use of the Lease Premises within ninety (90) days of the beginning date of this Lease or within ninety (90) days of the date set for construction to commence as set forth in this Lease, whichever is later. (2) All demolition, construction, remodeling, reconstruction, maintenance, repairs, removal, or remediation performed on the Lease Premises at any time by Lessee shall first be authorized by all appropriate Regulatory Agencies. Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and shall be solely responsible for all costs incurred thereby. In addition, Lessee shall obtain and comply with preventative or remedial measures required by any environmental reports, assessments, or inspections, including, but not limited to those required by the California Environmental Quality Act and/or the National Environmental Policy Act, or as otherwise required by law or reasonably requested by Lessor. Nothing in this Lease shall be interpreted as a pre-approval of any permit, certification, or any other precondition required for the use of the Lease Premises.
(b) Continuous Use
Lessee's use of the Lease Premises shall be continuous from commencement of the Lease until its expiration. Lessee's discontinuance of such use for a period of ninety (90) days shall be presumed to be an abandonment unless Lessee demonstrates to Lessor’s satisfaction that Lessee’s use of the Lease Premises is consistent with similarly situated properties. In the event of an abandonment, Lessor may elect to terminate the Lease as provided in Paragraph 12(a)(3). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease.
(c) Repairs and Maintenance
(1) Lessor shall not be required to make any Repairs in, on, or about all or part of the Lease Premises. Lessee shall, at all times during the term of this Lease and without any cost or expense to Lessor, keep and maintain the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition.
(2) Lessee shall make, or cause to be made, any Repairs which may be required by any Regulatory Agency. Lessee shall observe and comply with, any law, statute, ordinance, plan, regulation, resolution, or policy applicable to the Lease Premises in making such Repairs. All work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the sole cost and expense of Lessee.
143
Form51.16 (Rev. 10/14)

(3) Lessee expressly accepts the Lease Premises “as is” and expressly acknowledges that:
(i) Lessor has made no representations or warranties as to the suitability of the Lease Premises for any Improvements. Lessee shall conduct all tests necessary to determine the suitability of the Lease Premises for any proposed use or Improvements authorized; and
(ii) Lessor has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to any applicable building codes, zoning ordinances, or other regulations. Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the Lessee’s intended use; and (iii) Lessee shall neither be entitled to any reduction in rent, nor any extension of the terms of this Lease because of damage to or destruction of any Improvements on the Lease Premises.
(iv) Lessee and Lessor agree that any Improvements on the Lease Premises constitute the personal property of Lessee and that fixture law does not apply. (4) In the event that the Lease Premises is partly, or in whole, comprised of tidal, submerged, or waterfront property, Lessee expressly accepts the hazards involved in using or improving such lands. Lessor is not responsible for, and Lessee shall not be reimbursed for nor receive any offset of rent for, any damages or reduced use of the Lease Premises caused by: local or invasive flora or fauna, flooding, erosion, sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective structures, and any other such hazards. (d) Additions, Alterations, and Removal
No Improvements other than those expressly authorized in this Lease shall be constructed by the Lessee on the Lease Premises without the prior written consent of Lessor. Any Additions or Alterations are expressly prohibited. Lessee is also prohibited from any Additions or Alterations which cause a material change to the environmental impact on or around the Lease Premises.
(e) Enjoyment
This Lease is non-exclusive, and is subject to the provisions of Section 3, Paragraph 6 below. Lessee shall have the right to exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with Lessee's use and enjoyment of the Lease Premises.
(f) Discrimination
Lessee, in its use of the Lease Premises, shall not discriminate against any person or 144
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class of persons on any basis protected by federal, state, or local law, including: race, color, creed, religion, national origin, sex, sexual orientation, gender identity, age, marital/parental status, veteran status, or disability. (g) Residential Use
Unless otherwise provided for in this Lease, no portion of the Lease Premises shall be used as a location for a Residence, for the purpose of mooring or maintaining a structure which is used as a Residence, or for Residential Uses. (h) Commercial Use
Unless otherwise provided for in this Lease, the Lease Premises is to be used by Lessee and Lessee’s invitees or guests only. Use of the Lease Premises for commercial purposes; conducting a business, whether for profit or otherwise; and any subleasing, rental, or any transaction whereby Lessee directly or indirectly receives compensation from a third party in exchange for use of the Lease Premises shall constitute an immediate Default of this lease with no cure period.

6. RESERVATIONS, ENCUMBRANCES, AND RIGHTS-OF-WAY
(a) Reservations
(1) Lessor expressly reserves all natural resources in or on the Lease Premises, including but not limited to timber, minerals, and geothermal resources as defined under Public Resources Code sections 6401, 6407, and 6903, respectively; the right to grant and transfer the same; as well as the right to grant leases in and over the Lease Premises which may be necessary or convenient for the extraction of such natural resources.

Such leasing shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease.
(2) Lessor expressly reserves a right to go on the Lease Premises and all Improvements for any purposes associated with this Lease or for carrying out any function required by law, or the rules, regulations, or management policies of the State Lands Commission.

Lessor shall have a right of reasonable access to the Lease Premises across Lessee owned or occupied lands adjacent to the Lease Premises for any purpose associated with this Lease.
(3) Lessor expressly reserves to the public an easement for convenient access across the Lease Premises to other State-owned lands located near or adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted by this Lease; however, such easement or right-of-way shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease. (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease 145
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Premises, in whole or in part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. (b) Encumbrances
The Lease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims and is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose.

7. RULES, REGULATIONS, AND TAXES
(a) Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances of the State Lands Commission or any Regulatory Agency. Occupancy or use of the Lease Premises provides no exemption from applicable regulations including, but not limited to, federal, state, county and local regulations, regulations promoting public health, safety, or welfare, building codes, zoning ordinances, and sanitation regulations. Lessee expressly acknowledges that Regulatory Agencies have jurisdiction over the Lease Premises unless such laws are in direct conflict with state law or public trust principles.
(b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease is that Lessee obtains and maintains all permits or other entitlements. Lessee expressly acknowledges that issuance of this Lease does not substitute for, or provide preference in obtaining authorizations from other Regulatory Agencies.
(c) Taxes
(1) In addition to the rent due under this Lease, Lessee accepts responsibility for and shall pay any and all real and personal property taxes, including possessory interest taxes, assessments, special assessments, user fees, service charges, and other charges of any description levied, imposed on, assessed, or associated with the leasehold interest, Improvements on the Lease Premises, any business or activity occurring on the Lease Premises, the Lease Premises itself, or any portion thereof, levied by any governmental agency or entity. Such payment shall not reduce rent due Lessor under this Lease and Lessor shall have no liability for such payment. (2) In the event that this Lease commences, terminates or expires during a tax year, Lessee shall pay the taxes for the period of such year during which this Lease was in effect.
(3) Any and all taxes and assessments and installments of taxes and assessments required to be paid by Lessee under this Lease shall be paid when due and the official 146
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