3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “D” may be adjusted each year at the time of renewal as set forth in Exhibit “D.”
3.3.6 Labor Code Requirements.
3.3.6.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.3.6.2 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code sections 1725.5 and 1771.1 shall not apply to Services performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code sections 1725.5 and 1771.1.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement.
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3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time, with or without cause, by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant: THK Associates, Inc.
2953 S Peoria St Ste 101
Aurora, CO 80014
ATTN: Dan Conway
City: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
ATTN: City Clerk
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents 12 7
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and warrants that Consultant has the legal right to license any and all Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.
Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.
3.5.6 Indemnification.
3.5.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the 13 8
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Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.
3.5.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other 14 9
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default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts/Electronic Signatures. This Agreement may be signed in counterparts, each of which shall constitute an original. This Agreement may be signed with the same force and effect as original ink signatures.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.
CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 2024
____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney
APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization
__________________________
(“CONSULTANT”)
By:_____________________________
Daniel Conway, President
Dated: __________________, 2024
By:_____________________________
Kevin Shanks, Vice President
Dated: __________________, 20____
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EXHIBIT "A"
SCOPE OF SERVICES
Consultant shall perform the services as set forth in the attached proposal from THK Associates, Inc. dated November 22, 2023, which is incorporated fully herein by this reference. 17 1
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EXHIBIT "B"
SCHEDULE OF SERVICES
Consultant shall diligently perform the services to the City’s satisfaction and as set forth in the attached proposal from THK Associates, Inc. dated November 22, 2023, which is incorporated fully herein by this reference.
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EXHIBIT “C”
INSURANCE REQUIREMENTS
3.2.12 Insurance.
3.2.12.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.
3.2.12.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (1) a Personal Automobile Liability policy for the Consultant's own vehicle stipulating "Automobile Liability Insurance with a limit of not less than $1,000,000 each accident"; and (2) a non-owned auto endorsement to the Commercial General Liability policy if Consultant uses vehicles of others (e.g., vehicles of employees).
(C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000 per claim. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. 19 55452.01100\31193624.5
(E) Cyber Liability Insurance with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
3.2.12.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
3.2.12.4 Professional Liability (Errors & Omissions):
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.
3.2.12.5 Workers' Compensation:
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(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
3.2.12.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.2.12.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
3.2.12.8 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention greater than $5,000 must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3.2.12.9 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3.2.12.10 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.
3.2.12.11 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A- VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
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3.2.12.12 Enforcement of Agreement Provisions (non estoppel).
Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
3.2.12.13 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.
3.2.12.14 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
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EXHIBIT “D”
COMPENSATION
In complete compensation for the services provided under this Agreement, the City shall pay the Consultant for work actually performed at the rates listed in the attached proposal from THK Associates, Inc. dated November 22, 2023, which is incorporated fully herein by this reference.
Total compensation under this Agreement shall not exceed $56,120. Additional work shall require approval in writing in advance by the City.
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WORKER’S COMPENSATION INSURANCE CERTIFICATION
WORKERS' COMPENSATION DECLARATION
I hereby affirm under penalty of perjury one of the following declarations:
(ONE OF THE BOXES BELOW MUST BE CHECKED)
I have and will maintain a certificate of consent from the California Labor Commission to self-insure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract.
I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract. My workers' compensation insurance carrier and policy number are:
Carrier____________________________________________________ Policy Number______________________________________________ I certify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of San Clemente and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and property damage arising out of my failure to provide such worker’s compensation insurance. I further agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.
WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION
COVERAGE IS UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO
CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY’S FEES.
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Dated: ________________________, 2024
________________________________
(“CONSULTANT”)
By: Daniel Conway, President
THK Associates
2953 S Peoria St Ste 101
Aurora, CO 80014
25 PRESENTED BY:
NOVEMBER 22, 2023
Economic & Market Research / Land & Development Planning Landscape Architecture / Community Planning & Design
Golf Feasibility Analysis
PROPOSAL:
SAN CLEMENTE MUNICIPAL GOLF COURSE
COMPREHENSIVE MASTER PLAN UPDATE
Prepared For:
City of San Clemente
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2953 South Peoria Street, Suite 101
Aurora, Colorado 80014
303.770.7201 fax 303.770.7132
[email protected]
CITY OF SAN CLEMENTE 1 THK ASSOCIATES, INC.
November 22, 2023
Ms. Samantha Wylie
Beaches, Parks & Recreation Director
City of San Clemente
100 North Calle Seville
San Clemente, California 92672
Re: Proposal – San Clemente Municipal Golf Course Comprehensive Master Plan Update
Dear Ms. Wylie:
Thank you for your request for a proposal to perform a comprehensive evaluation of the City of San Clemente’s municipal golf course and provide an analysis of the overall San Clemente golf market and make site, facility and planning recommendations and financial projections for the future use and operations resulting in a physical site concept plan and comprehensive master plan update for the San Clemente Municipal Golf Course. The golf course is certainly a tremendous community asset, and it’s renewed, and ongoing viability and success should be ensured. THK Associates, Inc. is extremely qualified to work with you and the city on an evaluation and assessment of the golf course and support facilities. The San Clemente Municipal Golf Course (SCMGC) consists of an 18-hole course, with the initial nine holes, designed by renowned golf course architect Billy Bell, opening in 1930, with the second nine added in 1955. The course hosts approximately 90,000 rounds per year. The pro shop is currently operated by Dave Cook, under a long-term agreement set to expire in 2026, while the food and beverage operation is managed through a concession agreement with Z Golf Services. The city maintains the golf course.
THK is familiar with the San Clemente area and overall Southern California regional golf market, and in recent years THK has performed several golf course and real estate market analyses in the area, including assessments of the Fallbrook Golf Club and the Country Club of California in Fallbrook, and studies in Temecula, Palm Springs, Desert Hot Springs and San Diego. THK has been providing golf course consulting, appraisal, management, and marketing services regionally and nationally for over 50 years. THK has the professional staff and capability to easily conduct the proposed services for the City of San Clemente’ s municipal golf course operations evaluation.
Joining THK to conduct the physical inspection and assessment of the SCMGC and provide site analysis and make recommendations that address clubhouse and food and beverage operations and needed site and facility improvements and provide a short and long-term capital improvement plan with their associated financial cost and return, will be Staples Golf Design. The Atkinson Design Group will serve as a sub-consultant to Staples Golf Design. Together they have partnered before on similar community focused projects and have extensive relevant experience as their provided resumes indicate.
The purpose of the proposed assignment is to conduct golf course business planning and site analysis with financial analyses and operational audits and produce a comprehensive master plan that will allow the SCMGC to operate at maximum efficiency and profitability, while best servicing the residents and visitors of San Clemente. In order to achieve this goal, a wide variety of data will need to be assembled, reviewed, and critiqued. This will include all contracts, equipment and services related to the golf facilities, a physical inspection and review of all assets, as well as the course itself, an analysis of current and future market potentials for the golf course, and review 27 l:J .. J:Sc
CITY OF SAN CLEMENTE 2 THK ASSOCIATES, INC.
Ms. Samantha Wylie
November 22, 2023
Page Two
of the marketing, maintenance, staffing, budgets, and financing that are in place for the golf facilities.
Specific questions that need to be answered by our research include, but are not limited to:
• What is the status of the overall San Clemente golf market? • What are some innovative strategies to increase revenues at the golf course? • What should be the structure for annual membership options, punch cards and green fees?
• How can revenues that originate from pro shop and restaurant/concession sales at the course be maximized?
• What will be the total operating revenues that should be expected each year through the next ten years?
• What should be the annual costs to operate, manage and maintain the golf course? • What are the key market segments that comprise golfers and demand at the SCMGC, and how can they best be targeted?
• Are outside events, banquets and tournaments being emphasized and promoted adequately?
• Are existing equipment, inventories, leases and operating systems adequate and prudent?
• What physical improvements should be implemented at the course? • What are the conditions and needs for the buildings and structures, irrigation system, trees and foliage?
• What is the necessary and optimum 10-year capital improvement schedule at the golf course and overall?
• What are the short-term capital needs and costs at the golf course? • What should be the marketing structure and budget for the golf course? • Are there any design or safety concerns based on the current routing of golf holes, and if so, what are the needed modifications and their associated costs? • What other recommendations can be made to insure the long-term sustainability and success of the City of San Clemente’s golf operations?
In general, THK would use extensive market research and analysis to assist you in isolating the most advantageous course of action with regard to the future marketing opportunities and needs for each of your municipal golf courses.
THK has the technical expertise and experience necessary to undertake this project. We offer the following summary in support of our capabilities.
• THK will visit San Clemente and the San Clemente Municipal Golf Course as well as the area's competing golfing facilities, and it will also have its analysts conduct thorough interviews with the appropriate City of San Clemente representatives and any other key stakeholders or parties that might have some bearing or input on the research. At the completion of the draft analysis THK principals will present the study to the city council and whoever else the city deems appropriate, whether it be a group of stakeholders or any other related gathering. 28 CITY OF SAN CLEMENTE 3 THK ASSOCIATES, INC.
Ms. Samantha Wylie
November 22, 2023
Page Three
• This ensures that everyone with an interest in the project understands the study's conclusions and the numerous intricacies and implications that inevitably accompany any golf course analysis. Moreover, this provides an opportunity for all those involved to voice their concerns and to have addressed by the THK Team's industry experts any questions on the study or overall project.
▪ THK has extensive experience and expertise in the analysis of all types of golf courses having studied more than 600 golf operations including municipal, public, daily fee, regulation, 9- hole and executive layouts, independent practice facilities, semi-private resorts and private country clubs. We have the experience and capabilities of providing a wide range of golf course related services including market and economic feasibility analysis, cash flow analysis, valuations, golf course and clubhouse design, and construction, marketing, maintenance and cost estimating.
Research by THK, along with Staples Golf Design (including the Atkinson Design Group as a subconsultant) being the architectural design and planning consultant, will include a complete review and assessment of all financial and physical aspects of the current operations of the golf course operations, a projection of golf course usage and demand will be presented; an analysis of competitive supply will be conducted; recommendations as to the structure of the staffing, marketing, equipment needs, capital improvements, maintenance and management of the course will be profiled; a thorough physical assessment will be conducted; and, a financial and a cash flow analysis with estimates of revenues and expenses for entire course operation will be projected for the next 10-year period. This analysis ultimately derives the projected annual net operating income for the SCMGC and allows for an accurate estimation of the performance of the facility in years to come. Recommendations will be made regarding all aspects and facilities at the San Clemente Municipal Golf Course.
Based on this extensive research and analysis, THK will provide a comprehensive master plan plan that details the type, scope of services, and costs for structural and procedural changes that should be incorporated into the City of San Clemente’s future golf operations.
I trust this submittal is complete. We look forward to working with the City of San Clemente on your San Clemente Municipal Golf Course Comprehensive Master Plan Update. If you have any questions, please do not hesitate to give me a call. Again, thank you for the opportunity to present this proposal.
Sincerely,
Daniel M. Conway
President
DMC/kas
29 CITY OF SAN CLEMENTE 4 THK ASSOCIATES, INC.
SCOPE OF SERVICES:
SAN CLEMENTE MUNICIPAL GOLF COURSE COMPREHENSIVE MASTER PLAN UPDATE
SAN CLEMENTE MUNICIPAL GOLF COURSE
SAN CLEMENTE, CALIFORNIA
A. BACKGROUND AND APPROACH
This work program outlines the scope of work THK will be utilizing to prepare a San Clemente Municipal Golf Course Comprehensive Master Plan Update for the City of San Clemente, with physical and operational reviews and financial analyses with cash flow projections, a business and operational and conceptual master plan that details the operational uses and procedural changes, and a capital improvement plan, that should be incorporated into the City of San Clemente’s future golf operations for the San Clemente Municipal Golf Course.
The following includes an outline of research methodology and the range of data used to determine a strategic master plan for the golf facility. Research by THK will include a complete review and assessment of all financial and physical aspects of the current golf course operations and facilities, a projection of golf course usage and demand; an analysis of competitive supply for the golf course; recommendations as to the structure of the staffing, marketing, equipment needs, capital improvements, maintenance and management of the golf course; and, a financial cash flow analysis with estimates of revenues and expenses for the San Clemente golf operations. This analysis ultimately derives the projected net operating income for the facilities and allows for an accurate estimation of the performance and financial capabilities of the facility in years to come.
Recommendations will be made regarding all aspects and facilities at the golf course through this extensive research and analysis.
B. METHODOLOGY AND WORK PLAN
General Approach
The study by THK will generate a comprehensive database of information about the local San Clemente golf course market. The THK team will assess the feasibility for each of the subject golf facilities based on a synthesis of critical supply and demand indicators on a macro- and micro-market level of analysis.
In general, THK Associates will analyze the following components of supply and demand for golf in the San Clemente market area and their surrounding regional environs. • An economic base analysis of the regional Orange County and San Diego County market area.
• Trade area profiles for primary markets within the projected service area of the San Clemente Municipal Golf Course (SCMGC) to include population, household growth, income and demographic characteristics, golf participation rates, and other relevant data.
30 CITY OF SAN CLEMENTE 5 THK ASSOCIATES, INC.
• Inventory of competitive golf courses to note key operational features including character of course, rounds played, specific amenities and features, annual fees and dues, greens fees, guest fees, carts fees, etc. These competitive courses will be researched both locationally and conceptually.
• Based on a synthesis of macro- and micro-level supply and demand factors, provide an assessment of the golf potentials and round play that should be anticipated at SCMGC.
The research will then determine the projected financial operating characteristics of the golf course facility based on the agreed upon operational and structural changes and recommendations to the facility and the results and related capital improvements and costs derived from the physical assessment of the golf course and related areas. Specific recommendations will be made regarding the green fee schedules, expected number of golf rounds played by type, cart usage, pro shop and concession proceeds and other revenues. Annual costs required to generate these revenues will be profiled including payroll, marketing, managing, operations, and maintenance expenses. The resulting projected annual net operating income and supportable debt for the SCMGC will then be determined. This master plan analysis should demonstrate the strengths and weaknesses and opportunities of golf course operations.
TASKS ONE & TWO: PROJECT COORDINATION, SITE VISIT AND REVIEW OF CURRENT
OPERATIONS
Initially, THK and Staples Golf Design will have an introductory meeting with key City officials and stakeholders. This will serve to develop and elaborate upon the project goals and objectives, as well as confirm the proposed project process, schedule and key deliverables. An understanding will be reached regarding the level and type of public input and feedback that should be undertaken. A schedule of the meetings that will be required can be finalized, including the likely two Golf Course Committee Review meetings and a presentation of the final master plan to the City Council.
The first part of the analysis will be to gather all appropriate data related to the SCMGC including operations and staffing schedules, leases and contracts, marketing plans, financing instruments, and other relevant data. We have assumed that much of this can be assembled and provided by City personnel. The following is data that is known to be needed at this time but could be refined/enhanced during the initial meetings with City and golf course staff and interested stakeholders.
• Schedule of golf course assets, land area, building area, date of construction, FFE, etc.
• Assemblage of historical financial statements, any service contracts, historical round play, revenue and expenses by category, rates fees and charges, etc. • Assemblage of any additional financial statements for the facilities, capital investments, and other relevant data.
31 CITY OF SAN CLEMENTE 6 THK ASSOCIATES, INC.
A. Historical Review of Golf Operations
• A detailed review of the historical performance of the SCMGC will be conducted.
Factors to be analyzed will include identifying and correlation between rounds play, participation trends, and greens fees. Relationships between golf course performance and regional economic trends will also be investigated.
B. Physical Site Inspection and Analysis
• THK, along with Staples Golf Design, will conduct a complete and thorough inspection of all facilities related to the golf course. This will lay the initial groundwork for determining any physical alterations and capital improvements that may be recommended and preparing any potential conceptual routing plans based on the outcomes of the assessment of the golf holes, trees and foliage, practice areas and irrigation system. At this point in the process, it would be beneficial to meet with appropriate stakeholders to understand and determine any known issues facing the facilities and prioritize their importance.
C. Competitive Golf Course Analysis
• THK will visit and profile the competitive and comparable golf facilities in the San Clemente area environs. The courses will be researched for course type, date of construction, number of holes and other relevant characteristics. Additional recreation facilities, including driving ranges and putting courses, will also be visited and profiled as needed.
TASK THREE: GOLF COURSE MARKET ANALYSES
A. Economic Base Analysis
The primary influences on the success of the development of alternate or additional private or public golf facilities in your San Clemente site environs include the supply and demand forces affecting the local private and public golf course markets. On the demand side, employment, population, household and income trends are the most significant growth indicators. On the supply side, construction patterns, usage levels, fee structures of existing courses, as well as proposed developments, are critical market indicators.
In order to profile your greater San Clemente golf course market a comprehensive analysis of economic and demographic trends will be undertaken. This economic base inquiry will include documenting the physical, economic and demographic features affecting the golf course. In particular, historical employment, population and household growth will be reviewed to determine specific growth trends among key industries. Based upon the historical performance of the local economy, future growth will be projected for the area.
These estimates will provide the principal basis for making demographic growth projections and for quantifying the overall demand for golf rounds and related development. Following this section, our research focuses on the demand for golf in San Clemente. 32 CITY OF SAN CLEMENTE 7 THK ASSOCIATES, INC.
B. Evaluation of Market Demand
Based on the preceding economic base analysis, THK will forecast future population growth by geographic sectors in the San Clemente region. The projections will be tempered by trends observed in historical and anticipated employment, population growth, previous forecasts, and local prognosis of future absorption patterns. The resulting demographic forecasts will be compared to golfing participation trends to quantify the number, type and location of potential private and public golfers.
C. Regional Demand
To assess the market potentials for golf facilities in the San Clemente market area, a variety of sources will be researched for national, regional, and local private and public golfing trends. Initially, THK will use its review of national private and public golfing trends to establish a general industry profile. This research will establish historical and projected participation for private and public resort golf or frequency of play by classification of participation and a profile of recreation and private and public resort golf participants by a variety of socioeconomic characteristics including age, gender, income and occupational status.
This review of national private and public golfing trends will provide important information for establishing the basic characteristics and growth conditions of the private and public golf industries, and the participation and frequency ratios to be applied to local population growth.
This analysis of regional private and public golf demand is then reevaluated in light of existing demographic and frequency of play conditions observed among comparable facilities (see Evaluation of Supply). After determining regional private and public resort golf demand needs, our inquiry shifts to a micro-level of analysis.
D. Trade Area Demand
The demand for a private or public golf course ultimately depends on the demographic and economic characteristics within a defined sphere of influence referred to as the primary trade area (PTA) and maps will be presented demonstrating the area definitions. Golf courses are considered a "destination" activity because a round of private or public golf can consume upwards of 4-5 hours depending on the playability of the golf course and individual skill levels of participants. Consequently, travel times to and from the golf course from major employment, population and visitor centers are important, but not absolutely critical, to a golf facility's market and economic success.
Based on locations of competing private and public golf courses, business and residential development, and traffic volumes in each course’s vicinity, appropriate trade areas for golf for each of the three courses will be established. Specific demographic data to be compiled for the area include population, household growth, age and income characteristics, golf participation rates, and other relevant data. Projected private and public golf round play will be quantified by market segment.
Evaluation of private or public golf course demand, however, ultimately depends on operating characteristics of competitive facilities.
33 CITY OF SAN CLEMENTE 8 THK ASSOCIATES, INC.
E. Evaluation of Competition
A complete inventory of golf facilities within the competitive region of SCMGC will be profiled as to their location, date of construction, number of rounds played (9 and 18 hole), services offered, basic service area, fee structure, size and type of clubhouse facilities, estimated surplus capacity, any plans for improvements, etc. A complete fee schedule for competitive and regional golf courses will be completed and a recommended fee structure for the San Clemente course will be provided.
F. Market Potentials for the San Clemente Municipal Golf Course The determination of the appropriate fee structure and projected rounds played for Lake Arbor will be based on several different factors. The supply analysis will allow THK to determine what types of golf courses exist in the marketplace. The supply is then cross tabulated versus the demand that has been previously calculated. This allows THK to determine the optimal market segment and pricing structure for SCMGC. This will be dependent on the determination of the length and number of holes that is most appropriate based on the market analysis. A second equally important factor in the placement of the subject golf course will be the sensitivity to relative green fees. THK will utilize its extensive database of golf courses in the region to determine the relationship that exists between green fees and the number of rounds played on an annual basis. This will be verified by studying the same relationship in the local market.
TASK FOUR: PHYSICAL ASSESSMENT AND CONCEPT PLAN RECOMMENDATIONS In coordination with the market study, the golf course architectural design team will conduct a detailed assessment of all physical aspects of the SCMGC and prepare a final concept plan with specific capital improvement needs and cost estimates that will be applied to the financial projections. The following outlines the tasks and sequencing of this design and planning effort that Staples Golf Design (with Atkinson Design Group as subconsultant) will undertake.
A. Golf Course Research and Analysis
• Procurement of aerial, topo, utilities, and other pertinent base data (via City, if possible)
• SITE VISIT (in-person) to document general course conditions, infrastructure, and atmosphere
• Course assessment: routing, condition, character, practice facilities, and programming
• Detailed infrastructure studies (greens, bunkers, tees, irrigation, etc.) • Historical analysis of the original William Bell design, and subsequent design evolution
• Teeing equity and yardage analysis
• COMMITTEE MEETING #1 (via Zoom) to discuss findings and proposed design direction.
34 CITY OF SAN CLEMENTE 9 THK ASSOCIATES, INC.
B. Design Development & Feedback
• PUBLIC ENGAGEMENT via Townhall Meeting (or equivalent agreed upon method)
• Analysis of public input / feedback for inclusion in final report • Conceptual design development of proposed course improvements w/ preliminary costs
• COMMITTEE MEETING #2 (via Zoom) to review preliminary design concepts.
C. Final Plan Recommendations with Cost Estimates
• Refine preliminary design concepts into one (1) final design plan. • Prepare a detailed Cost Estimate for scope of the final design plan. • Create hole-by-hole analysis document w/ design notes and justification for each hole.
• Prepare additional recommendations for irrigation system, practice areas, trees, etc.
• Implementation Summary to identify priority projects, phasing, and permitting recommendations.
• CITY COUNCIL REVIEW (via Zoom) of the Final Report and supporting graphics. • Adjustments / edits to the Final Report per City Council feedback, as necessary D. Future Steps (not included in Master Plan scope)
• Production of Construction Documentation & Specifications for all plan projects • Construction contractor negotiation and procurement
• Marketing materials / graphics for public release
• Permitting assistance and procurement
• Project mobilization and construction management
As part of the Final Report for the City, Staples Golf will assist in production of the following:
• Summary of Project Vision, Goals & Objectives
• Course Research & Analysis: conditions, infrastructure, design evolution, teeing equity
• Summary of public input / feedback
• Final Conceptual Plan, Hole-by-Hole Analysis, and Cost Estimate • Recommendations for priority projects, phasing, permitting, and future steps.
Additionally, Staples Golf will be involved in the following proposed meetings / site visits:
• Introductory meeting with City stakeholders (via Zoom) • Site visit (in-person) to document general course conditions, infrastructure, and atmosphere
• Committee Meeting #1 (via Zoom)
• Public Engagement Townhall Meeting (via Zoom), or agreed upon equivalent. • Committee Meeting #2 (via Zoom)
• City Council Review Meeting (via Zoom)
35 CITY OF SAN CLEMENTE 10 THK ASSOCIATES, INC.
TASK FIVE: FINANCIAL PROJECTIONS
Based on our physical inspection of the San Clemente Municipal Golf Course, our physical and operational review, and the subsequent market study findings, the THK Team will develop a strategic schedule of recommendations, along with the costs and benefits of each of these recommendations. In creating the final plan THK will collaborate with the golf operations staff and applicable city officials and stakeholders and provide operational input relative to key fee structure changes and ultimately the impact on marketplace positioning for the San Clemente golf asset. Alternative scenarios can lead to the final, comprehensive financial proforma for the whole site operation that can then be used to determine the future vision and viability of the project and understand the level of funding that may be needed to implement these improvements. The ultimate test of each of the San Clemente facility’s long-term success depends on the outcome of this highly detailed income/expense analysis. This evaluation is detailed below.
A. Income/Expense Analysis
1. Operating Revenues
Based on fee recommendations by THK, the following revenues from golf course and clubhouse operations, and possibly other new revenue generators, will be identified and analyzed based on industry standards, historical experience, the competition, and other area specific considerations:
• green fees;
• practice facility revenues;
• annual passes and fees;
• club rental;
• cart rental;
• food and beverage sales; and
• pro shop sales.
2. Operating, Management, Marketing and Maintenance Costs The annual cost of operating, managing, marketing and maintaining each of the golf courses will be estimated based on industry standards, historical experience, and specific conditions. Specific items identified will include:
• salaries for golf course, food and beverage and pro shop operations; • utilities (irrigation, water, electricity, sewer);
• repair, maintenance and replacement of equipment;
• supplies for golf course (fertilizer, seed, etc.); and • insurance, general operations, etc.
3. Annual Net Operating Income (NOI)
A summary chart demonstrating annual operating revenues, annual operating expenses, and net operating income will be shown for San Clemente Municipal Golf Course and the entire operation in total. A debt sizing analysis can then be developed based on this NOI. 36 FIRM RESUME
THK ASSOCIATES, INC.
THK Associates, Inc. is market research, landscape architectural, planning and urban design firm that assists public and private clients in making informed and realistic planning decisions. THK serves its' clients throughout the United States, with a broad base of professional skills and a multi-disciplinary team approach. With headquarters in Denver, Colorado, THK provides services that start with market feasibility studies, conceptual planning and design, followed by all phases of project implementation and construction supervision.
THK's expertise encompasses all aspects of planning, design and development including community and regional planning; urban design; land development planning; landscape architecture; economic and market research; and communication graphics. The firm is distinguished by its balanced emphasis on the physical, political, social and economic factors of a given project.
Each assignment begins with a comprehensive analysis of the client's requirements and follows through with recommendations, emphasizing planning and design excellence, balanced by economic feasibility and preservation of the natural environment.
Since THK was formed in 1969, particular expertise has been developed in working with individuals, private corporations, and public agencies at the local, state and federal levels. THK conducts public meetings, community workshops and manages multi-disciplinary teams, successfully meeting construction and development budgets. THK Associates, Inc. strives for design solutions that enhance the environment and quality of life for all who use them -- a responsive synthesis of human values and aspirations.
LAND AND DEVELOPMENT PLANNING
The land development planning services at THK involves a team of planners, economists and landscape architects working together to develop a thorough understanding of client needs.
Factors that are incorporated into the process are market and economic influences, physical conditions, political attitudes, and environmental constraints. These influences are then synthesized into a design solution for the parcel, with open space and circulation patterns, which best integrates the user into the environment.
THK has experience with many types of land development projects. These have included planning for: large multi-use commercial/ residential complexes, resort and golf course-oriented communities, low-rise and high-rise multi-family developments, moderate and low income projects, elderly housing, estate and high density single family communities, and government/ institutional complexes. Governmental permitting is often an important part of the development process. The firm is familiar with the approval process of local governments, frequently serving as the client's representative. This process could include preparing applications, coordinating agencies to resolve problems, and making presentations to community groups and legislative bodies.
LANDSCAPE ARCHITECTURE
THK's involvement in landscape architecture includes site analysis and project programming, site master planning, detailed site design, landscape design and horticulture, irrigation planning and design, interior landscape design, construction document preparation, site inspection and landscape management. These services may be performed for private development projects, as well as for public parks, open space and streetscape designs. 37 l:J .. .Jsc
Representative parks and open space projects have included regional and community park planning, neighborhood park and playground design, and planning and design for athletic field complexes, golf courses and open space/trail improvements.
Development projects have included landscape design for individual residences, interior planting design for office and retail projects, and design of plazas and streetscapes, entry features, buffers and greenbelts for single family and multi-family developments, business and industrial parks and mixed-use projects. THK's team approach, utilizing landscape architects, planners, graphic designers and economists, assures the creation of aesthetically pleasing, functional and economically designed environments.
Market and Economic Planning
The most important considerations in the development process are whether a project will be successful in the marketplace. THK Associates has a staff of professionals in the Marketing and Economics Division who conduct economic and demographic analyses and financial feasibility studies. The results of these analyses allow a client to test his ideas against the market and provide the designer with an economic basis for land planning decisions. Financial feasibility studies are also developed for specific projects, including pro forma income statements, cash flow analyses, and determination of financial rate of return.
For the past decade, THK has been nationally recognized as one of the industry's leading authorities in golf course feasibility. THK has prepared over 300 studies for various types of golf courses and golf course real estate developments across the country. Our client list has included leading resort developers such as the Pebble Beach Company and Landmark Land Company, as well as many municipalities and public service districts, private real estate developers, country clubs and lending institutions.
Socioeconomic studies are also undertaken for public agencies and private clients as part of the land development process. These include economic base studies, development of public finance models, benefit costs analyses, public facilities cost estimates, fiscal impact studies, demographic analyses and surveys.
Appraisal and Valuation
THK Associates, Inc. provides valuation services for all property types. We are especially adept at valuing golf course properties and other special realty types. THK has prepared appraisals for over 400 golf properties throughout the nation and Mexico. We also have prepared value estimates for numerous residential communities, typically as an extension of our market research.
We have extensive databases for all property types in Colorado and other markets across the county. We have monitored these markets for over 40 years. In the last year we have valued golf courses, vacant land, single-family subdivisions, office buildings, industrial and warehouse buildings, retail/commercial, shopping centers, hotels, and individual residential properties. Our staff is licensed in Colorado and has temporary licenses in at least twelve states. We also have associated MAI appraisers when that designation is required by a lender or client. 38 RECENT PROJECT EXPERIENCE
Location Client *Date: Type of Study
Riverdale Dunes Golf Club Adams County 2023, 1,2,4
Adams County, Colorado
Canandaigua Golf & Country Club MES Enterprises 2023, 1,2 Canandaigua, New York
Dream Golf Colorado State Land Board 2022, 1,2
Roggen, Colorado
Mad Russian Mad Russian Golf Club 2022, 1,2
Milliken, Colorado
McLemore Resort Scenic Land Company 2022, 1,2
Chattanooga, Tennessee
Banks Lake Colville Tribes 2022, 1, 2, 3, 4
Electric City, Washington
Buffalo Run Commerce City 2022, 1, 2
Commerce City, Colorado
Flying Horse Golf Club Great Western Bank 2022, 1, 2, 3 Colorado Springs, Colorado
Green Valley Ranch Green Valley Ranch Metro District 2022, 1, 2 Denver, Colorado
Trailhead Community Links City of Liberty Lake 2021, 1, 2, 4 Liberty Lake, Washington
Kukui’ula Golf Course Baukol Capital Partners 2021; 1,2,3,4 Kaua’i, Hawaii
Ritz Carlton Village Flying Horse North 2021; 1,2,4
Colorado Springs, Colorado
Colorado National Great Western Bank 2021; 1,2,4
Erie, Colorado
Plum Creek Great Western Bank 2021; 1,2,4
Castle Rock, Colorado
Bear Dance Great Western Bank 2021; 1,2,4
Larkspur, Colorado
39 lJ .. Jsc
RECENT PROJECT EXPERIENCE
Divot Golf Club Divot Golf 2021; 1,2,4
Location TBD
Scotch Hall Preserve Blue Slide Steamers, LLC. 2021; 1,2,3,4 Merry Hill, North Carolina
Sugar Creek Golf Course Village of Elmore 2020; 1,2,4
Elmore, Ohio
Riverdale Dunes Adams County, Colorado 2020, 1,2
Barrington, Illinois Woodstock Country Club 2020, 1,2
Larkspur, Colorado Bear Dance 2019, 1
Castle Rock, Colorado Plum Creek 2019, 1
International Falls, MN River Golf Course 2019, 1,2,4
Colorado Springs, Colorado Flying Horse County Club 2019; 1,2,3,4 Cherry Creek, Colorado Cherry Creek Country Club 2018; 1,2 Greeley, Colorado Greeley County Club 2018; 1,2,4
Eagle County, Colorado Country Club of the Rockies 2018; 1,2,4 Battlement, Colorado Battlement Mesa Golf Club 2018; 1,2 Denver, Colorado Park Hill Golf Course 2018; 1,2
Elephant Butte, New Mexico Turtleback Mountain Resort 2017; 1,2,3,4 Colorado Springs, Colorado Flying Horse County Club 2017; 1,2 Colorado Springs, Colorado Flying Horse County Club 2017; 1,2,3 Golden, Colorado The Club at Rolling Hills 2017; 1,2,4
Island Hill Golf Club Island Hill Golf Club 2017; 1,2,3,4 Colorado Golf Club Reata South Metro District 2017; 2,3 Parker, Colorado
40 lJ .. Jsc
RECENT PROJECT EXPERIENCE
Mulligans Golf Course City of South Jordan 2017; 1,2,4
South Jordan, Utah
Salt Lake City’s 6 Municipal Salt Lake City Corporation’s 2017; 1,2,4 Golf Courses Golf Enterprise Fund
Cherry Creek Country Club Karen Hart 2017; 2
Denver, Colorado
Bear Dance Golf Club Great Western Bank 2016;2
Larkspur, Colorado
Flying Horse Ranch North Classic Homes 2016, 1
Colorado Springs, Colorado
Colorado National Golf Club Great West Bank 2016, 2
Erie, Colorado
Mulligans Golf Club Staples Golf 2015; 1,2,3,4
South Jordan, Utah
Green Valley Ranch First Western Trust 2015; 2
Denver, Colorado
Meridian Golf Club Meridian Golf Mgmt. Group 2015; 2
Englewood, Colorado
Battlement Mesa Golf Club Battlement Mesa Golf Club 2015; 2 Battlement Mesa, Colorado
Castle Pines Golf Club Castle Pines Golf Club 2015; 4
Castle Pines, Colorado
Westwood Golf Course Z Design Group, LLC 2015; 1,4
Arvada, Colorado
Columbine Country Club Columbine Country Club 2015; 1
Littleton, Colorado
*1) Golf Course Market Feasibility Study
2) Golf Course Appraisal/Valuation
3) Golf Course Related Residential Market Analysis
4) Golf Course Operations Review
41 lJ .. Jsc
RESUMES
DANIEL M. CONWAY
President, Director of Marketing and Economics
Education
Bachelor of Business Administration – Urban Land Economics from the University of Wisconsin, Madison, Wisconsin, 1968
Professional Memberships
Urban Land Institute; American Real Estate and Urban Economics Association; Honorarium Instructor, Real Estate School, University of Colorado and University of Denver Experience
Daniel M. Conway is a real estate marketing and research authority specializing in residential, commercial/industrial and golf course developments. Mr. Conway has had over 40 years’ experience as an urban land economist. Mr. Conway is a frequent guest speaker for economic associations and trade organizations and is a member and frequent speaker to the Urban Land Institute. He has been a real estate and urban land economic honorarium instructor at the University of Colorado and at the University of Denver. He has published many articles including the CCIM Magazine piece entitled "Market Analysis, the Road to Profit, Prosperity and Peace of Mind". Other professional and community activities of Mr. Conway have included membership on the Board of Directors of a federally chartered national bank and a member of the Mile High Transplant Bank. He also participated on the Archbishop's Inner City Sun School Committee to assess the future needs of elementary education in the inner city of Denver.
For the last 25 years, as President and Director of Economics and Market Research for THK Associates, he has conducted numerous residential, commercial, industrial and golf course economic feasibility and market studies, socioeconomic impact assessments and financial planning studies in all 50 of the United States, as well as a number of foreign countries.
Projects of particular interest include an international market center and industrial market analysis for the Dove Valley Business Air Park in Arapahoe County, a residential and related uses market analysis for several major developments in Douglas County including the 1,342-acre Parker City site and numerous golf course feasibility studies throughout the country. Specific communities where Mr. Conway has completed a wide range of research and analysis include Arvada, South Jordan, Las Vegas and Reno, Nevada; Oxnard, Palm Springs and Carmel, California; Kansas City, Missouri; Oklahoma City and Tulsa, Oklahoma; Austin, Texas; Albuquerque and Santa Fe, New Mexico; Seattle, Washington and Phoenix and Tucson, Arizona.
Most recently, Mr. Conway has gained recognition as a sought after speaker on the golf course development circuit. His numerous presentations at the Crittenden Golf Development Expos have been widely attended and universally applauded. His book “The Cost and Revenues of a Unique Golf Club” has furthered his reputation as one of the industry’s leading authorities. Under Mr.
Conway’s guidance, THK Associates completes over 20 golf course feasibility studies and golf driving range market studies and appraisals each year.
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RESUMES
E. PETER ELZI, JR.
Principal
Education
Bachelor of Science and Business Administration. Major in Real Estate and Construction Management, University of Denver, Denver, Colorado (1977) Memberships & Organizations
Who's Who Among American Colleges and Universities
Colorado State Certified Real Estate Appraiser
Chairman of the Board, East Cherry Creek Valley Water & Sanitation District Experience
Mr. Elzi has been with THK Associates, Inc. since 1981 and during that time he has assisted clients with development decisions concerning on all types of land uses including golf course, residential, office, industrial, hotel/motel and related opportunities. Mr. Elzi has completed over 75 golf course feasibility and cash flow studies during his career. Over the last 35 years, he has examined projects in over fifty major metropolitan areas around the nation. Mr. Elzi is especially adept at examining market strategies for various types of properties.
Recent projects include: an operational review and market analysis for the Mulligans Golf and Entertainment facility in South Jordan, Utah; the analysis of the Giants Ridge Golf Course and related operations in Biwabik, Minnesota; an appraisal of the Colorado National Golf Club in Erie , Colorado; an appraisal of the Meridian Golf Club in Englewood, Colorado; an operational review of the University of New Mexico golf facilities in Albuquerque, New Mexico; an operation review of the City of Longmont, Colorado golf operations for three courses; and the Economic Impacts of Golf on the State of Colorado economy. Mr. Elzi has also been retained as an expert to assess damages in litigation support for numerous property types including encroachments on golf course properties. Prior to joining THK Associates, Inc. Mr. Elzi was a residential appraiser and Realtor.
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RESUMES
NED PROSSER
Senior Economist
Education
Bachelor of Science in Sociology, 1987
University of Colorado, Boulder
Master of Science in Urban Planning, 1993
Strathclyde University, Glasgow, Scotland
Experience
Mr. Prosser's broad education and international background has enabled him to bring a variety of skills and unique abilities to THK and its clients. While in Scotland for two years, his education and work centered on downtown regeneration strategies and redeveloping vacant buildings and sites. His educational focus on analyzing and strategizing optimal urban land uses and economic redevelopment policy has allowed him to develop and oversee economic and land planning studies for office, retail and residential developments, as well as the hotel, resort and golf markets. Mr.
Prosser also specializes in developing feasibility models for unique uses including for a car dealership, a waterpark, a dude ranch and an athletic field complex.
Since returning to THK in 2021, Mr. Prosser's work has evolved to concentrate on golf course development, consulting, and feasibility studies. He oversees the majority of THK’s extensive golf course consulting operations and has directed projects in over 30 states in areas as diverse as Michigan, Mississippi, South Carolina, Texas, and Idaho.
Recent golf course consulting work for Mr. Prosser has included valuation estimates for several a new private resort and golf club in Rising Fawn, Georgia, a market and operational analysis of the existing Banks Lake golf course in Electric City, Washington for the Colville Tribes and a feasibility study for a proposed new, high-end, private golf club in the Finger Lakes region of upstate New York. Mr. Prosser has completed over 250 golf course related studies and analyses for THK.
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STAPLES GOLF DESIGN
COMPANY PROFILE – Staples Golf Design
GOLF DESIGN: ELEVATED
“We aim to create award-winning golf courses that are rooted in proven classic design principles and executed through sustainable practices, driven by our intent to leave the game better than we found it.” __________________________________________________________ Staples Golf Design is an international golf course architecture firm based in Scottsdale, Arizona, USA. Formed in 2002, our planning process has been built through nearly 30 years of experience with projects in multiple countries ranging from new builds, historic restorations, master plans, major renovations, and resource efficiency audits.
Our projects are committed to creative excellence and financial success. We have won national awards from every major golf publication in the country. Our courses continue to be listed on the “Best Places to Play” in their respective States.
1. Since 2003, we have demonstrated innovation and economic value by being the national leader in sustainable golf, including water and energy efficiency.
Furthermore, over the past few years we’ve been advocating the benefits of increasing a golf course’s value as a community asset through our proprietary Community Links® concept.
Our private club experience is best illustrated by the recently completed renovation of the esteemed, member-owned Meadowbrook Country Club in the Detroit suburb of Northville, Michigan. The Master Plan received an 82% positive vote from the membership and a 76% “yes!” vote to close the course entirely (during its centenary year) to complete the work. In the end, the project finished on time and under budget, and as of today is one of only two clubs in the Metro Detroit area with a waiting list.
▪ Meadowbrook is now listed #130 in GolfWeek’s Best List of Classic Courses, #5 in Golf Magazine’s list of ‘The Best Golf Courses in Michigan’, and received a Design Excellence Award by the American Society of Golf Course Architects (ASGCA) as well as a “Best New Renovation of the Year” award in 2017 by Golf Inc. Magazine.
Our Community Golf experience is best illustrated by the work performed for the City of Hobbs, New Mexico at Rockwind Community Links. Originally constructed on a reclaimed Army airfield site, the entire property was rebuilt to attract golfers and non-golfers alike. ▪ Rockwind has been praised for its design innovation, player development, and community integration. The country’s first “Community Links” was named “Golf Development of the Year” by Golf Inc. (2016), awarded a “Best New” by Golf Digest (2016), received a Design Excellence Award by the ASGCA (2015), and is ranked as one of the “Best Courses You Can Play” in New Mexico by Golf Digest. 45 Staples Golf Resource Group, LLC. dba Staples Golf Design is a Limited Liability Company, solely owned by Staples & Associates, Inc. {Federal Tax ID: 45-2612513 - DUNS tt: 80-116-2939). SGD is located at 4300 N. Miller Rd #124 in Scottsdale, Arizona, 85251 and has been at this office since 2011. Our office phone number is {602) 845-9074.
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PROJECT TEAM – Andy Staples, ASGCA
Andy Staples, ASCGA, principal of Staples Golf Design, will devote himself fully to this project. Andy is based in Scottsdale, AZ and has almost 30 years of design, construction, and long-term maintenance experience throughout the world. He has accomplished twenty-eight (28) Master Plans throughout the North America, five (5) new golf course designs, and performed over 100 golf course efficiency audits. His practice is built around a proven process of team collaboration, budget-oriented design, and industry-leading results.
Andy was named one of the 9 Most Innovative People in Golf (2022) and 9 Most Innovative People in Player Development (2016) by Golf Inc.; has taught the subject of Golf Course Design at the Harvard Graduate School of Design in Cambridge, Mass (1999, 2000); has been a keynote speaker for GolfWeek’s Architecture Summit – The 2 nd Golden Age (2017); and is an active speaker within the industry, having presented to the USGA, GCSAA, ASGCA, among others, with regularity.
NOTABLE PROJECTS
Sand Hollow Resort
Hurricane, Utah
Meadowbrook Country Club
Northville, Michigan
PGA National Golf Club
Palm Beach Gardens, Florida
Olympia Fields Country Club – North/South
Chicago, Illinois
Mount Bruno Country Club
Montreal, Quebec, CAN
San Vicente Golf Resort
Ramona, California
LICENSES & CERTIFICATIONS
Member, Board of Governors – American Society of Golf Course Architects (ASGCA) Associate Member – Golf Course Superintendents of America (GCSAA) CA Contractors General B License #1047635
PREVIOUS FIRMS
Jerry Slack & Associates – Tulsa, OK (1995-97)
Robert Muir Graves & Damian Pascuzzo, Ltd. – San Francisco, CA (1997-2002) John Fought Design – Scottsdale, AZ (consultant role)
Schmidt Curley Design – Scottsdale, AZ (consultant role) Golf Plan, Dave Dale & Kevin Ramsey – Santa Rosa, CA (consultant role)
EDUCATION
University of Arkansas, Fayetteville, 1995
Bachelor of Landscape Architecture
Denmark’s International Studies Program – Urban Design, 1994 Copenhagen, Denmark
UC Berkeley, Haas School of Business Executive Education, 2012 “I believe great golf
architecture not only
inspires people to play
more golf, it stirs their
soul to bring others to
the game.”
-Andy Staples, ASGCA
CONTACT:
[email protected]
+1(480) 206-1134
-
46 GRADUATE SCHOOL OF DESIGN
HARVARD UNIVERSITY
EXECUTIVE EDUCATION
Golfweek
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PROJECT TEAM – Staples Golf Team Members
Joshua Goeden, Design Associate joined Staples Golf in 2021, and will be the project lead for all aspects related to golf course analysis, design recommendations, graphic communication, and community outreach.
Josh is a graduate of the University of Georgia’s MLA program, and brings a firm knowledge of landscape design processes, design theory, sustainable practice, and client engagement—all with an emphasis on classic golf architecture. Histhesis research at UGA explored the use of participatory design methods for golf course design, with a focus on creative integrations of both golfer and non-golfer programming at municipal facilities.
He continues to champion this passion for community golf design by leading our firm’s proprietary Community Links™ efforts.
In addition to his design role, Josh also handles much of the firm’s day-to-day production including bid responses, quarterly newsletters, stakeholder discussions, graphics and renderings, and drone photography (FAA P107 certified). He also has past work experience in both golf maintenance and shovel-in-hand construction.
EDUCATION
University of Georgia, Athens, 2021 – Master of Landscape Architecture South Dakota State University, Brookings, 2019 – Bachelor of Landscape Architecture
Tim Cloninger, Project Management assists the Staples Golf team in all aspects of golf architecture, from design through construction and on to grow-in. He has a full understanding of how design decisions affect long term management and has personally managed multiple construction projects including turf conversions, irrigation efficiency and water reduction plans, full golf course renovations, and new construction.
Tim has a M.S. in agronomy from the University of Nebraska and a B.S. in Turfgrass Science from the University of Arizona, and possesses a unique talent for leveraging technology to analyze agronomic conditions, manage construction projects, and save money.
Scott Laffin, PLA, ASLA, joined Staples Golf Design as a design associate in 2020. As a licensed landscape architect in Arizona, New Mexico, Ohio and Kentucky, he provides balanced support both technically and creatively. Through his understanding of site analysis, design, and implementation, he lends himself to a wide variety of projects. He is persistent in his approach to environmentally friendly and sustainable designs. Scott is an integral part of the office’s production, whether it be conceptual or through permitting and construction documents. Scott has a diverse background in the field of landscape architecture. Along with golf courses, he has designed park masterplans, rooftop decks, senior living facilities, LEED certified corporate headquarters and many more.
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RELATED EXPERIENCE – Rockwind Community Links
Location: Hobbs, New Mexico (2014-2015)
Client: City of Hobbs, New Mexico
Contact: Mr. Doug McDaniel, Parks & Rec Director
Phone: (817) 360-0263
Email: [email protected]
Project: Master planning, community outreach,
project approvals, and renovation of a City-owned
golf course including reconstruction of all 18 holes,
creation of a 9 hole par 3 “kids course”, and a doubleended practice range with First Tee facility. Project also included construction of a 5.2-acre effluent
storage lake, new irrigation and pump station, and
105 acres of sand capping.
As our flagship Community Links™ project, the site
was also designed to include a new community
clubhouse with indoor/outdoor dining, a trail system,
and the design/construction of outdoor auxiliary
spaces aimed at inviting site usage by the entire
community – golfers and non-golfers alike.
The City of Hobbs has now re-imagined their entire
community brand, using Rockwind Community Links
as a centerpiece of their marketing efforts to both
current and future residents. The course has seen
significant increases in rounds and revenue since the
renovation and truly embodies the value of
meaningful investment in the community experience.
▪ Month & Year of Bid: October 2013
▪ Number of Bids: 4 (via pre-qualification
process)
▪ Bid Award: $9,235,065.75
▪ Final Contract Amount: $9,209,017.28
48 ROCKWIND
COMMUNITY LINKS
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RESUMES
RELATED EXPERIENCE – Dairy Creek Golf Course
Location: San Luis Obispo, California (2016-17)
Client: County of San Luis Obispo, CA
Contact: Mr. Josh Heptig, Past Golf Superintendent
Phone: (805) 781-1318
Email: [email protected]
Project: Master planning and community outreach for a county-owned 18-hole golf facility that was losing 50% of their irrigation water supply and sought guidance for how to address their golf experience while balancing economic realities.
Staples Golf worked with the County to develop options for reducing the course footprint down to 12 holes to preserve a high-caliber course experience that would be more manageable with impending water restrictions. This included the development of a Plan ‘A’ and Plan ‘B’ option, with associated costs, that were used by the County for future planning efforts.
Additional emphasis was placed on finding better ways to integrate non-golfing amenities for their community in the fashion of a Community Links™, as well as a relocated driving range fit with Top Tracer technology to supplement the course and provide an enhanced practice and teaching experience.
PLAN ‘A’
PLAN ‘B’
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RELATED EXPERIENCE – Trailhead Golf Course
Location: Liberty Lake, WA (2019-20)
Client: City of Liberty Lake, WA
Contact: Mr. Chris Johnston, Head Golf Professional
Phone: (208) 818-8936
Email: [email protected]
Project: Planning and re-design of a 9-hole municipal
course’s practice facilities with minor golf course
enhancements. In partnership with Doug Fredrickson
Architects, work was focused on planning around and
designing a community-oriented golf experience including a new clubhouse, along with the reimagination of the golf experience and community gathering space.
Designed as a true Community Links™, the final design has informed the City of Liberty Lake of the economic impact a project of this importance can have on the bottom line. 50 AA- b__ -~')
trail head
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RELEVANT EXPERIENCE – Municipal Clients
In addition to the highlighted representative projects, Staples Golf Design has to-date completed twenty-eight (28) Master Plans, over a hundred (100+) golf course resource efficiency audits, and numerous Community Links™ assessments across the U.S., many of which were conducted in partnership with municipal / government entities. Over the past 10 years, SGD has served 11 municipalities in seven states; each of which have included various levels of community engagement.
With less than 10% of the tax-paying population actually playing golf, it takes specific knowledge and understanding of the municipal market, trends, and community benefits to get the desired level of public buy-in for these projects. Our experience in both planning and communication has been proven to build this ever-important trust at all levels, and makes SGD an unparalleled expert in every aspect of municipal golf development.
Major Renovations with Municipalities:
▪ Rockwind Community Links – City of Hobbs, New Mexico
(2014)
▪ Hillside Golf Course – City of Sidney, Nebraska (2014) New Golf Course Development with Municipalities:
1. Sand Hollow Resort – City of Hurricane, Utah (2008)
2. Cedar Hills Golf Club – City of Cedar Hills, Utah (2003) Master Plans with Municipalities:
▪ Mill Valley Golf Course – Mill Valley, California (ongoing)* ▪ Dairy Creek Golf Course – County of San Luis Obispo, California (2017)* ▪ Mulligans Golf & Games – City of South Jordan, Utah (2015) ▪ Los Alamos Golf Course – Los Alamos County, New Mexico (2010) Community Links™ Assessments and Feasibility Reports (2015-2018):
▪ EdgeBrook Golf Course – City of Brookings, SD
▪ Rockwind Community Links – City of Hobbs, NM
▪ Diamond Oaks Golf Course – City of Roseville, CA*
▪ Wood Creek Golf Course – City of Roseville, CA*
▪ South Jordan Community Links – City of South Jordan, UT ▪ Brooktrails Golf Course – District of Brooktrails, CA* ▪ Riverview Golf Course – San Juan County, NM
▪ Dairy Creek Golf Course – San Luis Obispo County, CA* ▪ Chimney Rock Golf Course – City of Wells, NV
▪ The City of Albuquerque – all City owned courses
* indicates project conducted in California
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RESUMES
METHODOLOGY – SUSTAINABILITY STATEMENT
GOLF ARCHITECTURE IS A BLENDING OF ART AND SCIENCE
“Classic design is the art in which we practice. The science is where a course’s longevity lies.”
“Resource efficiency has never been more attainable than now, nor has it been more important. Water, electricity, fuel, and labor costs are often needlessly wasted at golf facilities, and we at Staples Golf make a commitment to increasing sustainability in every one of our projects.” SIMPLY PUT – IT’S THE RESPONSIBLE THING TO DO.
In our pledge to sustainable golf design practices, Staples Golf aims to… ▪ Increase maintenance efficiency through design by minimizing the amount of large, maintenanceintensive features and working with our course superintendents to develop maintenance strategies tailored to their available resources, staff, and equipment capabilities. ▪ Advocate for “firm and fast” conditions on our courses, using less water across the board and promoting the use of fun, ground-level features that herald back to the origins of the game. ▪ Promote responsible water use through precision irrigation systems, reduction of total irrigated turf, and selection of the latest turf species that can uphold high quality playing conditions with less water input.
▪ Construct features using state-of-the-art methods tailored to each site’s specific context to ensure the quality and longevity of our courses.
▪ Utilize local materials and labor whenever possible in all of our projects, reducing the environmental footprint created through transportation and supporting local industry. 52 IJ .. Jsc
RESUMES
METHODOLOGY – COMMUNITY LINKS™
The Community Links™ Vision
Conceived in 2016, our Community Links™ vision will elevate the connection between your facility and the San Clemente community.
This planning approach and operational model aims to embrace programming for the entire community, resulting in increased pride and utilization of the facility by golfers, and non-golfers alike.
As championed by our design at Rockwind Community Links, the hallmark of our Community Links™ approach is the ability for the facility to a provide fun, memorable golf experience for more than just the avid player. We will work to integrate programming for golfers of all skill levels alongside quality non-golfer recreational and social spaces. In doing so, your facility will draw a larger pool of users, introduce them to the game in an inviting and skillappropriate manner, and foster social interactions that are mutually beneficial to both the course and the community.
The most valuable aspect of Community Links™ is its proven process, which is tailored to reflect the values most important to your residents. We will facilitate the input of the City stakeholders and focus entirely on the San Clemente community throughout the Master Planning process, ensuring the final product provides an informed best-fit solution to the community’s vision. This will help ensure our final design matches the community’s voices, build trust in the process, and generate project pride and “buy-in,” creating the positive support critical to success.
A Community Links facility can best be summarized in three equally important benefits: social, economic, and environmental…
▪ Social Benefits – Community Links™ creates meaningful programming for golfers and non-golfers alike while supporting community social and recreational spaces that bring people together, promote physical and mental well-being, and introduce new people to the values of the game. ▪ Economic Benefits – Community Links™ emphasizes cost efficiency, alternative revenue generation, and increased utilization that not only supports the golf facility but can also spur community growth as an attractive draw for new residents and tourism.
▪ Environmental Benefits – Community Links™ promotes the responsible management of resources, water and energy use reduction, and enhancement / preservation of native ecosystems all while bringing increased environmental awareness through user interactions. 53 IJ .. Jsc
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RESUMES
KEVIN ATKINSON
The Atkinson Design Group Team is a golf course architecture firm based in Morrison, Colorado.
Formed in 2011, our planning process has been built through nearly 30 years of experience with projects in multiple countries ranging from new builds, historic restorations, master plans and major renovations.
Our projects are committed to creative excellence and financial success. We have won national awards from every major golf publication in the country. Our courses continue to be listed on the “Best Places to Play” in their respective States.
Our team has demonstrated innovation and economic value by being the national leader in sustainable golf, including water and energy efficiency. Furthermore, over the past few years we’ve been advocating the benefits of increasing a golf course’s value as a community asset through our proprietary Community Links® concept.
Kevin Atkinson graduated from the University of Nebraska with a Bachelor’s Degree in Architecture in 1994. While he was in college, Kevin worked for the golf course construction firm Landscapes Unlimited. After graduation, Kevin was hired as an Associate Architect at Ault, Clark & Associates, Inc. in Maryland. He spent four years in Maryland before joining PhelpsAtkinson Golf Design in 1999. In 2011 Kevin started Atkinson Design Group, to continue his passion for golf course architecture.
Since 2011 Kevin has worked on 10 new or renovated clubhouses for private clubs and public facilities. Kevin is one of only 170 members of the American Society of Golf Course Architects throughout North America. Kevin has been the Project Architect on ten new golf courses, more than thirty extensive remodel projects and consulted with over 140 facilities. Kevin has been involved in new courses and renovations in 21 different states, Canada and Mexico. He has designed multiple courses that have been awarded by Golf Digest as top courses in their respective states, best new courses in the country (Golf Club at Devils Tower, Big Creek Golf & Country Club), most improved golf course in the country (Bide-A Wee Golf Course) and has consulted on two top 100 golf courses in the United States (Monterey Peninsula Country Club and Tobacco Road). Closer to home, Kevin has consulted on 45 golf courses in Colorado.
CONTACT INFORMATION:
Kevin Atkinson
Atkinson Design Group
5438 Willow Springs Road
Morrison, Colorado 80465
(720) 530-5484
[email protected]
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REFERENCES
REFERENCES
Mr. Steve Bruening
General Manger
Riverdale Golf Club
13300 Riverdale Road
Brighton, Colorado 80602
303.659.4700
[email protected]
Adams County, Colorado retained THK and Atkinson Golf Design to assess the potential for a new short course and related recreational amenities on a 60-acre site adjacent to the north edge of the existing golf courses. THK analyzed the feasibility of the new short course in addition to a new driving range, clubhouse, Pickleball courts and miniature golf and other possible uses.
Atkinson Design Group has prepared alternative site concepts and course layouts to envision the highest and best use of the site. This project began in March 2023 and is ongoing.
Mr. Dan Dent
Salt Lake City Director of Golf
Salt Lake City Golf
2375 South 900 East
Salt Lake City, UT 84106
801.485.7730
[email protected]
In 2015 THK prepared a report entitled “Golf Business Planning and Benchmarking Analysis with Operational Review and Financial Analysis for the Salt Lake City Corporations Golf Enterprise Fund.” This report studied Salt Lake City’s 6 golf courses, evaluating operations and making recommendations to increase revenues and reduce costs.
Mr. Larry Mills
Golf Operations Manager
City of Longmont
1200 Cornell Drive
Longmont, Colorado 80503
303.776.6050
[email protected]
The City of Longmont, Colorado, retained THK to prepare an “Operational Review and Financial Analysis” for its 3 municipally owned golf courses. Golf operations were studied in great detail and were profiled relative to the performance of other golf operations in their competitive market area. Detailed recommendations were made to increase revenue and reduce costs. 55 REFERENCES
Mr. Chris Goodman
General Manager
Metro Parks Tacoma
4702 S 19th St.
Tacoma, Washington
253.305.1022
[email protected]
The Metro Park District of Tacoma, Washington hired THK to prepare an audit of operations and a strategic master plan for their Meadow Park Golf Course Complex that included an 18-hole championship golf course, a very large driving range and an 18-hole short course.
Recommendations were made for course and clubhouse improvements as well as a revamp of their marketing program and website. Design recommendations were made to improve routing and safety concerns.
Mr. Frank Andrews
Colville Tribes
P.O. Box 150
21 Colville Street
Nespelem, Washington, 99155
509.634.2570
[email protected]
In 2022 the Confederated Tribes of the Colville Reservation in Washington State hired THK to study the potential of acquiring the Banks Lake golf course and additional land surrounding the course. Additional potential residential and lodging uses at the site were analyzed and conceptually laid out and a series of recommendations regarding the marketing, maintenance and operation of the golf course and clubhouse were provided. 56 PROJECT AND COST SCHEDULE AND STATEMENT OF
COMPLIANCE
THK's normal fee structure includes charges for labor costs and expenses. Labor costs are a result of applying the billable rates of the personnel involved in the project to the 'person hours' devoted to each task. Hourly billing rates include provisions for salaries, fringe benefits, overhead including general administrative expenses and profit. Out-of-pocket expenditures including such items as travel, mileage, printing, and report production are included in the fees outlined below.
We will bill you monthly so that you are kept informed of progress and costs. The work can be terminated at any time upon due notice and only work performed, and costs incurred as of such date of notification will be charged. This proposal is in strict compliance with the Request for Proposal and Draft Agreement and no exceptions to either are proposed. THK and Staples Golf Design expect to go through the following process and schedule to conduct and present the study:
Hourly Estimated
Scope of Services Staff Rate Hours Fee Week
Task One Project Coordination and Site Visit(s) Dan Conway $175 16 $2,800 One-Three Ned Prosser $120 16 $1,920
Staples Golf Design $150 28 $4,200
Sub-Total 60 $8,920
Task Two Review of Current Operations & Physical Site Analysis Dan Conway $175 8 $1,400 Three-Six Ned Prosser $120 24 $2,880
Staples Golf Design $150 56 $8,400
Sub-Total 88 $12,680
Task Three Golf Course Market & Financial Analysis Dan Conway $175 8 $1,400 Five-Eight Ned Prosser $120 44 $5,280
Support Staff $95 16 $1,520
Sub-Total 68 $8,200
Task Four Golf Course Public Feedback, Site Recommendations and Concept Plans Dan Conway $175 8 $1,400 Seven-Thirteen Peter Elzi $150 8 $1,200
Ned Prosser $120 20 $2,400
Staples Golf Design $150 64 $9,600
Sub-Total 100 $14,600
Task Five Cost Estimates & Financial Projections Dan Conway $175 8 $1,400 Eleven-Thirteen Peter Elzi $150 8 $1,200
Staples Golf Design $150 16 $2,400
Ned Prosser $120 16 $1,920
Sub-Total 48 $6,920
Task Six Finalize Report and Report Presentation Dan Conway $175 8 $1,400 Fourteen Staples Golf Design $150 16 $2,400
Ned Prosser $125 8 $1,000
Sub-Total 32 $4,800
*Travel expenses are inclusive
PROFESSIONAL FEE TOTAL 396 $56,120 Fourteen Weeks
Project and Fee Schedule - San Clemente Golf Course Comprehensive Master Plan Update 57 SUBMITTAL FORMS
58 "STATEMENT OF NON-COLLUSION"
The proposal is submitted as a firm and fixed request valid and open for 180 days from the submission deadline.
This proposal! is genuine, and not shameful or oollusive, nor made in the interest oron behalf of any person not herein named : the proposer has not directly or indirecUy induced or solicited any other proposer to put in a sham proposal! and the proposer has not in any manner sought by collusion to secure for himself or herself an advantage over any other proposer.
In addition, tllis organization and its members are not now and will not in the future be engaged in any activity resulting in a conflict of interest, real or apparent, in the selection, award, or administration of a subcontract
NA 11121/23
Date
Daniel M. Conway, President
Name and Title of Authorized Representative
CITY OF SAN CLEMENTE
Beaches, Parks & Recreation Department
100 N. Calle Seville
San Clemente, CA 92672
(949) 361-8237
REQUEST FOR PROPOSAL
SAN CLEMENTE MUNICIPAL GOLF COURSE
COMPREHENSIVE MASTER PLAN
October 16, 2023
PROPOSALS DUE:
November 22, 2023, by 2 p.m.
CITY OF SAN CLEMENTE
REQUEST FOR PROPOSAL
OCTOBER 2023
ATTACHMENT 4
59
CITY OF SAN CLEMENTE
REQUEST FOR PROPOSAL
OCTOBER 16, 2023
Prospective Contractors:
The City of San Clemente (City) is interested in receiving proposals from Professional Services Contractors (Contractors) for the conduct of a San Clemente Municipal Golf Course Comprehensive Master Plan Update, property located at 150 Avenida Magdalena, as described in detail in the attached Request for Proposal (RFP).
Schedule of Events from Issuance of the RFP to Award of Contract:
Issuance of RFP October 16, 2023
Site Visit (Optional) October 26, 2023, 9 a.m.
Questions Due November 1, 2023
Submittals Due November 22, 2023, 2 p.m.
RFP Review by Selection Committee
Interviews (Tentative) December 4-6, 2023
Contract Award at City Council December 19, 2023
City Point of Contact:
The sole source of contact regarding this RFP is Samantha Wylie, Beaches, Parks & Recreation Director. Individuals or firms interested in submitting a proposal are asked not to contact other members of the City of San Clemente staff or Councilmembers in connection with the RFP before the announcement of the consultant selected.
Proposals, questions, and all correspondence related to this RFP are to be submitted confidentially to the following mailing address or via the e-mail listed below:
Beaches, Parks & Recreation Director
City of San Clemente
100 N. Calle Seville
San Clemente, CA 92672
60 3 Page
8875 - (949) 429
clemente.org - WylieS@san
, 2023, 2 p.m. 2 Monday, November 2 Proposal Closing Date:
clemente.org no later - mail your proposal to Samantha Wylie at WylieS@san - Please e , 2023, at 2:00 p.m. Proposals received after this time will not be 2 than November 2 accepted.
Sincerely,
Project Location Map Attachment 1:
Collusion - Statement of Non Attachment 2:
Attachment 3: Sample Professional Services Agreement
61 -1)~
CITY OF SAN CLEMENTE
REQUEST FOR PROPOSAL
SAN CLEMENTE MUNICIPAL GOLF COURSE COMPREHENSIVE
MASTER PLAN UPDATE
Background about the City and the project, as well as information about the Scope of Work to be undertaken, are discussed in this section of the RFP.
A. INTRODUCTION
The City of San Clemente is seeking proposals from qualified contractors to provide all personnel, materials, and services required to complete a study to develop a comprehensive plan for the San Clemente Municipal Golf Course (the “SCMGC”). The awarded Consultant shall provide a comprehensive review of all SCMGC operations including financial status and capital projects to determine the SCMGC’s sustainability over the next ten years. The study and resulting plan shall include realistic projections of revenues and expenses. These estimates will be supported by a thorough market and facility analysis. The resulting plan will identify best practices in course management, potential new/enhanced revenue streams, and other options that will improve the quality of service and play for SCMGC users.
B. BACKGROUND
The City of San Clemente is a California municipality located on the coast of Southern California, between Los Angeles and San Diego, in Orange County. The City has a population of approximately 65,000 residents in an 18 square-mile area.
The City provides various services to its residents. Services include, but are not limited to, general governmental services, beaches, parks and recreation, water/wastewater, public works, and solid waste collection.
The SCMGC is an 18-hole championship golf course. Built by renowned Golf Course Architect William “Billy” Bell on land donated by city founder Ole Hanson, the course consisted of nine holes on opening day in 1930, with what is now the back nine being added in 1955. Municipally owned and operated since its inception, the SCMGC is aptly known as the “Pride of the Pacific.” The course hosts roughly 90,000 rounds per year.
The SCMGC Pro Shop and Starter Office are currently operated by a long-term contractor, Dave Cook through a license agreement with the City. This agreement is set to expire in 2026. The banquet, restaurant, and event operations are currently managed through a concessionaire agreement with Z Golf Services (DBA 62
Wedgewood). The maintenance of the course is managed by city personnel under the direction of the Maintenance Manager and Golf Manager, in the Public Works Department.
The SCMGC Master Plan was last updated in 2002 and included the reconstruction of the clubhouse and pro shop and design updates to the driving range and parking lot.
The City is seeking a consulting firm to conduct a Master Plan update to SCMGC.
This plan shall be a comprehensive review of all operations including the financial status and capital projects to determine the SCMGC’s sustainability over the next ten years along with realistic projections of revenues and expenses. These estimates will be supported by a thorough market and facility analysis. The study will identify best practices, potential new/enhanced revenue streams, and other options that will result in continuing as a self-sustaining enterprise fund. Identify all capital projects, scope, and cost estimates that will be required for successful golf club operations over the next ten years.
C. PROJECT OBJECTIVES
The City intends to contract with a professional golf landscape architect firm or other qualified design consulting company to develop a master plan update for the San Clemente Municipal Golf Course. The plan should include public review and comment, which will ultimately be refined to one final conceptual plan, which might reasonably be anticipated to be built. The conceptual plan shall include different phases and shall be accompanied by a cost estimate and summary report. The design shall include access and parking for vehicles and alternative modes of transportation; ADA compliance; lighting that is sensitive to neighboring properties; and other factors that are identified in the data collection and public input process.
The project budget is $60,000.
D. PROJECT ORGANIZATION AND SCOPE OF WORK
The scope of services requested includes the following:
A. Hole-by-hole analysis and recommendations.
B. Building assessment and recommendations.
C. Irrigation systems analysis and recommendations.
D. Practice area recommendations.
E. Tree assessment and recommendations.
F. Pro Shop and Starter Office assessment and recommendations.
G. Restaurant and event services assessments and recommendations.
H. Staffing and Equipment evaluation
F. DELIVERABLES
63
The contractor is responsible for the following deliverables in keeping with the schedule described in subsection G below. The contractor is responsible for the following deliverables:
1. Site plan, plan base specifications, and special provisions for the course (18- hole) design, and element construction.
2. Analysis of all operations and findings to support recommendations for continued sustainable operations in all aspects of course functions.
3. Detailed estimate of any future construction cost(s).
4. Summary Report. The final plan shall be accompanied by a written report summarizing site conditions, key findings, justification for design and design elements, identification of major obstacles to development, necessary permits and approvals, detailed estimate of cost, and phasing options. Studies and reports used to develop the conceptual plan should be included in appendices to the summary report.
G. SCHEDULE
The following are key dates for the San Clemente Municipal Golf Course Comprehensive Master Plan Update. Schedule may be subject to change based on stakeholder/community feedback through public comment periods.
Issuance of RFP October 16, 2023
Site Visit (Optional) October 26, 2023, 9 a.m.
Questions Due November 1, 2023
Submittals Due November 22, 2023, 2 p.m.
RFP Review by Selection Committee November 27-30, 2023
Interviews (Tentative) December 4-6, 2023
Contract Award at City Council December 19, 2023
Meeting with Stakeholders January 15-26, 2024
Golf Course Committee Review #1 March 7, 202
Golf Course Committee Review #2
(Optional)
As needed
City Council Plan Review/Adoption May 21, 2024
H. PROPOSAL SELECTION
Proposals will be reviewed and scored by City staff and a selection of proposals will be invited to interview with the master plan steering committee to determine the winning proposal.
Proposals will be scored according to the following factors:
1. Consultant Qualifications with Similar Projects and the Project Area - 35%
2. Scope of work, methodology, public engagement, and scheduling - 35%
3. Overall Quality, Completeness, and Clarity in the Proposal - 15% 64
4. Consultant Costs and Fee Schedule – 15%
The City will select one or more Proposers and invite them for an interview prior to awarding the contract. In this process, the City may ask the respondents to give an oral presentation of their respective proposals. The purpose of this oral presentation is to provide an in-depth analysis of certain qualifications, experience in performing similar services, and an opportunity for the Consultant(s)/Teams to clarify or elaborate on their qualifications without restating the proposal. The interview and presentation are merely to present facts and explanations to City and allow them to ask targeted questions. The day and time will be notified to the proposers at least one week before the meeting. Each interview will last 45 minutes and will be comprised of a presentation and Q&A. Interviews may be held via Zoom or in-person depending on preference of the Consulting Firm. 65
CITY OF SAN CLEMENTE
REQUEST FOR PROPOSAL
SAN CLEMENTE MUNICIPAL GOLF COURSE
COMPREHENSIVE MASTER PLAN UPDATE
INSTRUCTIONS AND CONDITIONS
The following instructions and conditions apply to this RFP:
A. GENERAL CONDITIONS
1. Pre-Contractual Expenses
Pre-contractual expenses are defined as expenses incurred by the Professional Services Contractor (contractor) in:
• Preparing a proposal in response to this RFP
• Submitting that proposal to the City of San Clemente
• Negotiating with the City of San Clemente on any matter related to this RFP, proposal and/or contractual agreement
• Any other expenses incurred by the contractor prior to the date of an executed contract
The City of San Clemente shall not, in any event, be liable for any precontractual expenses incurred by any contractor. In addition, no contractor shall include any such expenses as part of the price proposed to conduct the scope of work for this project.
2. Authority to Withdraw RFP and/or Not Award Contract
The City of San Clemente reserves the right to withdraw this RFP at any time without prior notice. Further, the City makes no representations that any agreement will be awarded to any contractor responding to this RFP.
The City expressly reserves the right to postpone the opening of proposals for its own convenience and to reject any and all proposals in response to this RFP without indicating any reasons for such rejection(s).
3. Pricing Approach
The City of San Clemente intends to award a fixed-price contract for the conduct of this project. In no event shall the City pay an amount in excess 66 RFP - INSTRUCTIONS AND CONDITIONS Page 6
of the dollar value negotiated in the contractual agreement with the successful contractor.
4. Right to Reject Proposals
The City of San Clemente reserves the right to reject any or all proposals submitted. Any award made for this engagement will be made to the contractor which, in the opinion of the City, is best qualified to conduct the project.
5. Proposal Evaluation Criteria
Proposals will be evaluated on the basis of their response to all provisions of this RFP. The City of San Clemente may use some or all of the following criteria in its evaluation and comparison of proposals submitted. The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to indicate their relative importance:
a. Previous experience
b. Demonstrated record of success on work previously performed for the City or similar work performed for others
c. Project Lead
d. Educational background of project lead and staff
e. Staff to perform work within the specified time
f. Methodology proposed to accomplish the work
g. Ability to make effective public presentations of the report and/or design required
h. Ability to work effectively with City staff, other public agencies, and related parties as directed during the course of the design, study, or other services
i. Pertinent new ideas which may be presented during the course of the selection process
j. Adequate knowledge of local conditions
k. Availability, experience and knowledge of all subcontractors hired to complete the job or study
67 RFP - INSTRUCTIONS AND CONDITIONS Page 7
l. Additional work performed by the contractor which may have a direct and substantial physical relationship or conflict to the proposed project m. Retention of original contractor on projects modified due to the original contractor’s detailed knowledge of the work or on the grounds of cost n. Previous history of completing projects within budget and design estimates
o. Ability to furnish adequate and effective construction supervision p. Consideration for contractors currently working with a major developer in the City for work within or adjacent to the major development project B. PROPOSAL FORMAT AND CONTENT
Proposals should be typed as brief as possible. They should not include any elaborate or unnecessary promotional material. The following order and content of proposal sections should be adhered to by each contractor.
1. Cover Letter
A cover letter not to exceed three pages in length should summarize key elements of the contractor’s proposal. The letter must be signed by an individual authorized to bind the contractor. The letter must stipulate that the proposed price will be valid for a period of at least 90 days. Indicate the address and telephone number of the contractor’s office located nearest to San Clemente, California, and the office from which the project will be managed.
I. Background and Approach
The Background and Approach Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished.
II. Methodology(ies)
This section should clearly describe the methodology or methodologies you plan to use to carry out the specific work tasks described in the Work Plan.
III. Work Plan
68 RFP - INSTRUCTIONS AND CONDITIONS Page 8
Describe the sequential work tasks you plan to carry out in accomplishing this project. Indicate all key deliverables and their contents. Identify how much of the work will be done on site.
IV. Project Organization and Staffing
Describe your approach and methods for managing the project.
Provide an organization chart showing all proposed project team members. Describe the responsibilities of each person on the project team. Identify the Project Director and/or Manager and the person who will be the key contact with the City of San Clemente. Indicate how many hours each team member will devote to the project by task, along with a statement indicating the availability of the members of the project team for the duration of the project. Include resumes for each member of the project team. Include information and staff support required from City personnel. If utilizing a City-paid intern is possible to address data collection or routine work assignments, identify that opportunity and related cost savings.
V. Related Experience
Describe recent, directly related experience. Include on each listing the name of the client; description of the work done; primary client contact, address and telephone number; dates for the project; name of the Project Director and/or Manager and members of the proposed project team who worked on the project, as well as their respective responsibilities.
At least three references should be included. For each reference, indicate the reference's name, organization affiliation, title, complete mailing address and telephone number. The City of San Clemente reserves the right to contact any of the organizations or individuals listed.
VI. Project Schedule
Provide a schedule for completing each task in the work program, including deadlines for preparing all project deliverables.
VII. Cost Data
Indicate the total cost for which you will conduct the project by phase.
Identify by project team member: name, classification, and the number of hours each member will spend on each work task. 69 RFP - INSTRUCTIONS AND CONDITIONS Page 9
Indicate separately, total cost for fees and expenses, including any proposed fee discount.
VIII. Statement of Compliance
Contractors must submit a Statement of Compliance with all parts of the Request for Proposal and Draft Agreement terms and conditions, or a listing of exceptions and suggested changes, along with a description of any cost implications or schedule changes the exceptions and/or changes cause. The Statement of Compliance must declare either:
A. This proposal is in strict compliance with the Request for Proposal and Draft Agreement and no exceptions to either are proposed; or
B. This proposal is in strict compliance with the Request for Proposal and Draft Agreement except for the items listed.
For each exception and/or suggested change, the contractor must include:
1. The suggested change in the RFP or rewording of the
contractual obligations.
2. Reasons for submitting the proposed exception or
change.
3. Any impact the change or exception may have on
project costs, scheduling or other considerations.
IX. Other Information
Include any other information you consider to be relevant to the proposal.
X. Consultant agrees that in carrying out its responsibilities under this agreement, and in particular with regard to the employment of persons and sub-contractors working on the project, it will not discriminate on the basis of race, color, creed, national origin, religion, sex, age, or handicap. In the event any of the work performed by consultant hereunder is sub-contracted to another person or firm (with approval of the City as required herein), subcontract shall contain a similar provision. 70 RFP - INSTRUCTIONS AND CONDITIONS Page 10
SUMMARY OF MAJOR COMPLIANCE REQUIREMENTS
The following highlights the key compliance elements contained in the City contract:
Meetings
This is a suggested schedule which is open to discussion.
1. Attend bi-weekly progress meetings with the City's Project Manager.
2. Attend monthly meetings with Project Team.
3. Conduct general meetings (2 - 3) open to employees, boards, and commissions for overview and discussion of study.
Reporting
1. Project report to City Project Manager including:
• Monthly report to Department Heads.
• Summary of work completed during previous two weeks.
• Discussion of any significant problems encountered or issues arising during the project.
• Percentage of project completion by work task.
• Explanation of variance between actual work task completed vis-a-vis the work plan.
2. Oral briefings/summary of project findings for presentation to City Project Manager.
3. Copies of the Draft Final Report, including Executive Summary, findings for presentation to City Project Manager.
4. Oral presentation of findings and recommendations to the City Council, City Manager, and employee groups.
Insurance Coverage
Prior to commencement of any project activities, consultant is to secure worker's compensation insurance, so as to be in compliance with State statutes and comprehensive 71 RFP - INSTRUCTIONS AND CONDITIONS Page 11
general liability insurance, including auto and contractual liability coverage, in an amount not less than $1 million.
72 ATTACHMENT 1
“PROJECT LOCATION MAP”
Golf Maintenance
Shop/Yard Pro Shop &
Restaurant
Driving Range
73 ATTACHMENT 2
“STATEMENT OF NON-COLLUSION”
The proposal is submitted as a firm and fixed request valid and open for 180 days from the submission deadline.
This proposal is genuine, and not shameful or collusive, nor made in the interest or on behalf of any person not herein named: the proposer has not directly or indirectly induced or solicited any other proposer to put in a sham proposal and the proposer has not in any manner sought by collusion to secure for himself or herself an advantage over any other proposer.
In addition, this organization and its members are not now and will not in the future be engaged in any activity resulting in a conflict of interest, real or apparent, in the selection, award, or administration of a subcontract.
Signature of Authorized Representative Date
Name and Title of Authorized Representative
74 910 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: March 19, 2024 Agenda Item: 10J
Department: Public Works
Prepared By Zak Ponsen, Assistant City Engineer
Subject:
..titl e
CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2021-116, A
COMMERCIAL CONDOMINIUM CONVERSION TO ALLOW FOR INDIVIDUAL OWNERSHIP OF FOUR COMMERCIAL SUITES, LOCATED AT 1050 CALLE AMANECER ..body Fiscal Impact:
None.
Summary:
Project 1050, LLC, the property owner and Subdivider of Final Parcel Map 2021-116, has submitted the Final Parcel Map for City Council approval. Staff has confirmed that the proposed Final Parcel Map is in conformance with the approved Tentative Parcel Map. The Tentative Parcel Map 2021-116 (previously known as 2021-057) was approved by the Zoning Administrator on May 19, 2022 on Resolution ZA22-005. Pursuant to the Subdivision Map Act, a legislative body shall not deny approval of a Final Parcel Map if it has previously approved a Tentative Parcel Map for the proposed subdivision and if it finds that the Final Parcel Map is in substantial compliance with the previously approved Tentative Parcel Map. Thus, while the Subdivision Map Act and San Clemente Municipal Code Chapter 16 require City Council action to approval the Final Parcel Map, that action is ministerial.
Background:
Parcel Map 2021-116 contains four commercial
condominium units on one 1.096 acre lot (see Location Map to the right). The Conditions, Covenants and Restrictions (CC&Rs) for the project have been reviewed and approved by the City Attorney and the Subdivider has reimbursed the City for the costs of that review as required by the
Conditions of Approval. The City Engineer has reviewed and is satisfied with the quitclaim deeds in favor of the City that the Subdivider obtained from all persons having any interest in existing rights of way for pipelines for the conveyance of water, and for all rights to all underground water. The Subdivider has satisfied all other Conditions of Approval that are required prior to Final Parcel Map approval.
The only remaining Conditions of Approval are for the Subdivider to record the CC&Rs, which will be recorded immediately after the Final Parcel Map, and to dedicate water rights, which have 1 Meeting Date: March 19, 2024 Agenda Item: 10J.
CITY OF SAN CLEMENTE
been addressed on the Final Parcel Map. Copies of the proposed Final Parcel Map and approved Tentative Parcel Map are available for review at City Hall in the Public Works-Engineering Division.
Council Options:
Adopt Resolution No. 24-45 (Attachment 2) approving the Final Parcel Map 2021-116 as it conforms to the requirements set forth in the Subdivision Map Act and the previously approved Tentative Parcel Map.
Modify and adopt Resolution No. 24-45.
Continue the item and direct staff to provide additional information. Identify and make a finding that the Final Parcel Map is not in substantial compliance with the previously approved Tentative Parcel Map, and based on that finding do not adopt Resolution No. 24-45 and reject the Final Parcel Map. Note: Per the Subdivision Map Act (Government Code section 66474.1), a legislative body shall not deny approval of a Final Parcel Map if it has previously approved a Tentative Parcel Map for the proposed subdivision and if it finds that the Final Parcel Map is in substantial compliance with the previously approved Tentative Parcel Map. The Tentative Parcel Map 2021-116 (previously referred to as 21-057) was approved by the Zoning Administrator on May 19, 2022 through Resolution ZA 22-003. See Attachment 3.
Environmental Review/Analysis
This project was previously found categorically exempt from the requirements of the California Environmental Quality Act pursuant to CEQA Guidelines Section 15315 (Class 15: Minor Land Divisions) and 15301.k (Class 1: Existing Facilities) in connection with the approval of the Tentative Parcel Map. The approval of a Final Parcel Map is a ministerial action and not a “project” under CEQA.
Recommended Actions:
Staff recommends that the City Council approve Resolution No. 24-45, which would:
1. Approve the Final Parcel Map 2021-116 as it conforms to the requirements set forth in the Subdivision Map Act and the previously approved Tentative Parcel Map;
2. Accept on behalf of the City of San Clemente the water rights as dedicated;
3. Authorize and direct the Public Works Director/City Engineer to sign the Final Parcel Map; and
4. Authorize and direct the City Clerk to sign and submit the Final Parcel Map for recordation with the County of Orange Recorder’s Office
..recommendation
..end
Attachment:
2 Meeting Date: March 19, 2024 Agenda Item: 10J
CITY OF SAN CLEMENTE 3
1. Final Parcel Map Resolution No. 24-45
2. Resolution ZA 22-005
Notification:
None.
3 ATTACHMENT 2
4860-5047-5367 v1
RESOLUTION NO. 24-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN CLEMENTE, CALIFORNIA, APPROVING FINAL
PARCEL MAP 2021-116, A COMMERCIAL CONDOMINIUM
CONVERSION TO ALLOW FOR INDIVIDUAL OWNERSHIP
OF FOUR COMMERCIAL SUITES, LOCATED AT 1050
CALLE AMANECER
WHEREAS, the property owner and subdivider, Project 1050, LLC, owns an existing four-suite commercial building located at 1050 Calle Negocio; and WHEREAS, the subdivider applied for a Tentative Parcel Map in order to subdivide the four-suite commercial building into four condominium unit that allow individual ownership; and
WHEREAS, the Tentative Parcel Map 2021-116 was approved by the Zoning Administrator on May 19, 2022 through Resolution ZA 22-005; and WHEREAS, Resolution ZA 22-005 included Conditions of Approval for the subdivider to obtain City Attorney approval of Conditions, Covenants and Restrictions (CC&Rs), and to obtain from all persons having any interest in existing rights of way for pipelines for the conveyance of water and the rights to all underground water; and WHEREAS, the subdivider has satisfied all the Conditions of Approval and offered to the City all water rights as dedicated on the Final Parcel Map; and WHEREAS, the Final Parcel Map 2021-116 conforms to the requirements set forth in the Subdivision Map Act and the previously approved Tentative Parcel Map; and WHEREAS, this project was previously found categorically exempt from the requirements of the California Environmental Quality Act pursuant to CEQA Guidelines Section 15315 (Class 15: Minor Land Divisions) and 15301.k (Class 1: Existing Facilities) in connection with the approval of the Tentative Parcel Map; and WHEREAS, pursuant to the provisions of the Subdivision Map Act and San Clemente Municipal Code Chapter 16, Final Parcel Maps require City Council action for approval, denial, or modifications.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. That the above recitations are true and correct and incorporated fully herein.
SECTION 2. That the San Clemente City Council hereby approves Final Parcel 4 Resolution No. 24-45 Page 2
4860-5047-5367 v1
Map 2021-116.
SECTION 3. That the San Clemente City Council hereby accepts on behalf of the City of San Clemente the water rights as dedicated on Final Parcel Map 2021-116.
SECTION 4. That the Public Works Director/City Engineer is authorized to execute the Final Parcel Map.
SECTION 5. That the City Clerk is authorized to sign and submit the Final Parcel Map for recordation with the County of Orange Recorder’s Office.
SECTION 6. 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.
_______________________
Mayor of the City of
San Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
5 Resolution No. 24-45 Page 3
4860-5047-5367 v1
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. 24-45 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 _________________, ________.
_______________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
6 7
RESOLUTION NO. ZA 22-005
A RESOLUTION OF THE ZONING ADMINISTRATOR OF
THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING
TENTATIVE PARCEL MAP 2021-116 (TPM 21-057),
PROJECT 1050 CONDOMINIUM CONVERSION, TO
CONSIDER A COMMERCIAL CONDOMINIUM
CONVERSION TO ALLOW FOR INDIVIDUAL OWNERSHIP
OF FOUR COMMERCIAL SUITES, LOCATED AT 1050
CALLE AMANECER
WHEREAS, on June 2, 2021, an application was submitted by Kurt Bruggeman, 9838 Research Drive, Irvine, CA, 92618, for Tentative Parcel Map 2021-116 (TPM 21-057) and deemed complete on April 12, 2022; a request to consider a commercial condominium conversion to allow for individual ownership of four commercial suites, located at 1050 Calle Amanecer and in the Business Park Zone within the Rancho San Clemente Specific Plan.
The site's legal description is N TR 12402 BLK LOT 41, and Assessor's Parcel Number 688-142-25; and
WHEREAS, the Planning Division has completed an initial environmental assessment of the above matter in accordance with the California Environmental Quality Act (CEQA) and recommends the Zoning Administrator determine the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15315 (Class 15: Minor Land Divisions). This is recommended because the project involves a condominium conversion of four commercial suites located within a developed industrial area and no exceptions identified in CEQA Guidelines Section 15300.2 are applicable: and WHEREAS, on June 2, 2021, October 28, 2021, and April 14, 2022 the City's Development Management Team (DMT) reviewed the proposed project and determined it complies with the General Plan, Zoning Ordinance, and other applicable City ordinances and codes; and
WHEREAS, on May 19, 2022, the Zoning Administrator of the City of San Clemente held a duly noticed public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties.
NOW, THEREFORE, The Zoning Administrator of the City of San Clemente does hereby resolve as follows:
Section 1 . Incorporation of Recitals.
The Zoning Administrator hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the Zoning Administrator as fully set forth in this resolution.
8 Resolution No. ZA 22-005 Page 2
Section 2. CEQA Findings.
Based upon its review of the entire record, including the Staff Report, any public comments or testimony presented to the Zoning Administrator, and the facts outlined below, the Zoning Administrator hereby finds and determines that the proposed project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15315 (Class 15: Minor Land Divisions).
The project is Categorically Exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15315 (Class 15, Minor Land Divisions) because the project involves the condominium conversion of four commercial suites, for individual ownership, in an urbanized area zoned for industrial use. The airspace subdivision is in conformance with the General Plan, Subdivision Map Act, and zoning; no variances or exceptions are required, all public services and access to the proposed condominium units to local standards are available, the parcel was not involved in a division of a larger parcel within the previous two years, and the parcel does not have an average slope greater than 20 percent.
Section 3. Tentative Parcel Map Findings
With respect to Tentative Parcel Map 2021-116 (TPM 21-057), the Zoning Administrator finds as follows:
A. The site is physically suitable for the type of development, in that:
1. The project is limited to subdividing the airspace of an existing commercial building into four condominium suites for individual ownership purposes; and
2. The existing development is subject to the Zoning Ordinance, building, health, and safety codes, and other applicable regulations and policies. This includes but is not limited to policies and regulations on land use, setbacks, utility connections, easement access, traffic design standards, etc.
B. The site is physically suitable for the proposed density of the development, in that:
1. The proposed density on the site complies with the maximum allowed for properties in the Business Park Zone within the Rancho San Clemente Specific Plan. The site has a floor area ratio less than .5, where the subject zone allows a maximum floor area ratio of .5.
2. Ample parking is provided to support uses permitted in the Business Park Zone within the Rancho San Clemente Specific Plan.
C. The design of the condominium conversion or the proposed improvements is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat, in that:
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9 Resolution No. ZA 22-005 Page 3
1 . The project is limited to subdividing airspace into four condominiums to allow for separate ownership of each commercial suite;
2. No physical modifications to the site will result from the proposed subdivision; and
3. The site is in a developed industrial area served by existing utilities and public services.
D. The design of the condominium subdivision or the type of improvements is not likely to cause serious public health problems, in that:
1. The project is limited to subdividing airspace into four condominiums to allow for separate ownership of each commercial suite;
2. No physical modifications to the site will result from the proposed subdivision; and
3. The site is in a developed industrial area served by existing utilities and public services.
E. The condominium subdivision, with its provIsIons for any design and improvements, is consistent with the General Plan, in that:
1. The project is limited to subdividing airspace into four condominiums to allow for separate ownership of each commercial suite. The project is consistent with the Industrial Land Use Designation of the site; and
2. The existing development is subject to the Rancho San Clemente Specific Plan, Zoning Ordinance, building, health, and safety codes, and other applicable regulations and policies. This includes but is not limited to policies and regulations on land use, setbacks, utility connections, easement access, traffic design standards, etc.
F. The design of the condominium subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of the property within the proposed subdivision in that:
1 . The project is limited to subdividing airspace into four condominiums to allow for separate ownership of each commercial suite;
2. Easements have been indicated on the tentative map; and
3. The existing development is subject to the Rancho San Clemente Specific Plan, Zoning Ordinance, building, health, and safety codes, and other applicable regulations and policies. This includes but is not limited to policies and regulations on land use, setbacks, utility connections, easement access, traffic design standards, etc.
10 Resolution No. ZA 22-005 Page4
Section 4. Zoning Administrator Approval.
Based on the foregoing recitals and findings, and the written and oral comments, facts, and evidence presented, the City of San Clemente Zoning Administrator approves Tentative Parcel Map 2021-116 (TPM 21-057), Project 1050 Condominium Conversion, subject to the Conditions of Approval set forth in Exhibit A.
PASSED AND ADOPTED at a regular meeting of the City of San Clemente Zoning Administrator on May 19, 2022.
11 Resolution No. ZA 22-005 EXHIBIT A
CONDITIONS OF APPROVAL
TENTATIVE PARCEL MAP 2021-116 (TPM 21-057)
PROJECT 1050 CONDOMINIUM CONVERSION
1.0 GENERAL CONDITIONS OF APPROVAL
1.1 Within 30 days of receipt of the signed conditions of approval, the applicant shall submit to the City Planner a signed
acknowledgement concurring with all conditions of approval on a form to be provided by the City, unless an extension is granted by the City Planner.
1.2 The applicant shall defend, indemnify, and hold harmless the City of San Clemente and its officers, employees, and agents from and against any claim, action, proceeding, fines, damages, expenses, and attorneys' fees, against the City, its officers, employees, or agents to attack, set aside, void , or annul any approval or condition of approval of the City concerning this project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Planner. Applicant shall pay all costs, The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter. If the applicant fails to so defend the matter, the City shall have the right, at its own option, to do so and, if it does, the applicant shall promptly pay the City's full cost of the defense.
1.3 Use and development of this property shall be in substantial conformance with the approved plans, material boards and other applicable information submitted with this application, and with these conditions of approval. Any modifications to the project shall be reviewed by the City Planner in accordance with Zoning Ordinance Section 17.12.180.
1.4 The applicant shall comply with all applicable current and future provisions of the San Clemente Municipal Code, adopted
ordinances, and state laws.
1.5 Use of the subject property shall conform to all occupancy requirements, including posting of signs related to the maximum occupancy limitations.
1 .6 Tentative Parcel Map 2021-116 (TPM 21-057) shall be deemed to have expired if within three years of approval the project is not commenced , or the project permitted by the approved application has lapsed, as defined by Zoning Ordinance Section 17.12.150.
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12 Resolution No. ZA 22-005, Exhibit A
1.8 The Applicant (including any property owners and managers, and their designees) shall use her/his best judgment and best management practices to ensure residential activities on the premises will be conducted in a manner that will not be disruptive to neighbors. The property owner(s) shall be responsible for ensuring compliance with the San Clemente Municipal Code (SCMC), and all conditions of approval contained herein. The Applicant (including any property owners and managers, and their designees) hereby understands that noncompliance with
regulations and conditions of approval, shall be immediate grounds for citation pursuant to SCMC Section 8.52.030(Y), which states, "It is declared a public nuisance for any person owning, leasing, occupying or having charge or possession of any premises in this City to maintain such premises in such manner that ... A structure, improvement, property, and/or land use is not in compliance with terms and/or conditions of any City of San Clemente issued permit or approval," and any subsequent revision of this section of the code. [Citation - Section 8.52.030(Y) of the SCMC]
2.0 PRIOR TO APPROVAL OF A FINAL MAP
2.2 Prior to recordation of the final map, the applicant shall submit to the City Engineer evidence that the County Surveyor has approved a digitized tract/parcel map pursuant to Orange County Ordinance No. 3809 dated January 28, 1991 . The owner or designee shall pay for all costs of said digital submittals, including supplying digital copies to the City of the final , County Surveyor-approved digital map in DXF format.
Buyer Notification
2.3 A buyer's notification disclosure form shall be given to all potential buyers of the lots/units, which indicates the existence, operations, characteristics, and potential exposure to nuisance/objectionable odors/risk of upset/hazards of the following:
United States Marine Corps, Camp Pendleton
San Onofre Nuclear Generating Station
City of San Clemente Wastewater Treatment Plant
Orange County Flood Control Channel
Covenants, Conditions & Restrictions (CC&Rs}
2.6 The applicant shall submit to the City Planner, and must obtain approval from the City Attorney's Office, Covenants, Conditions and Restrictions (CC&R's) which shall include the following provisions:
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13 Resolution No. ZA 22-005, Exhibit A
A. Creation of a Master Association and/or a Sub-association for the purpose of providing for control over the uniformity of boundary fencing , and the perpetual maintenance
responsibility of areas including, but not limited to, (delete or add as appropriate) all common areas, open space,
slopes, fuel modification zones, private medians and
greenbelts, arterial highway parkway landscaping, irrigation systems, landscaped areas, walls, driveways, parking
areas, trash areas, structures, private streets, street lights, and drainage. All streets, drainage, street lights, street signage and striping improvements within the interior of the subdivision designated as private shall remain private and shall be maintained by the Master Association and/or Subassociation, or such other provision for maintenance which may be subsequently approved by the City Council. In
addition, the CC&R's shall indicate all other areas to be owned and maintained by the Master Association and/or
Sub-association and that maintenance of all private
drainage facilities shall be in conformance with NPDES
requirements.
B. Within 15 days of the establishment of the homeowners association and/or the commercial property owners
association, the owner or designee is required to furnish the Board or Officers of each association a copy of each
approved tract map, a copy of the approved site and fencing plan, copies of all approved landscaping plans, a complete set of construction plans for the various residential model types, and approved plans indicating the locations and
characteristics of all major project components, utilities, and related data.
C. Following recordation of each final tract map, each Master Association of this tract shall submit to the City Planner, for distribution to the Fire and Beaches, Parks and Recreation Departments, and shall re-submit annually, a list of all current Property Owner Association officers of the
Association .
D. A statement indicating that any dedicated open space shall be retained by deed restriction as designated open space in perpetuity and maintained by a Master Association and/or the Sub-association, and that no development or encroachment shall be permitted within the designated open space.
E. A statement indicating that proposed amendments to any of the CC&R's shall be submitted for review to the City
Planner, and shall be approved by the City Attorney's Office, prior to the amendments being valid.
F. A statement indicating that the City has the right, but not the obligation, to enforce any of the provisions of the CC&R's.
G. A statement indicating that storm drain facilities shall be
14 Resolution No. ZA 22-005, Exhibit A
inspected regularly as follows:
1) Open channels, catch basins and pipelines inspected
annually before storm season and removal of debris as
necessary.
2) All facilities shall have debris and sediment removed either manually or by mechanical methods. Flushing
shall be used in emergency situations only.
H. A statement obligating the Association(s) to provide to the Utilities Director annual reports in the month of June in compliance with the reporting requirements of codes and ordinances adopted by the City with respect to the NPDES program.
I. Identification of all fire prevention and defense provisions including: a) a fire lane map; b) provisions which prohibit parking in fire lanes and a method of enforcement; and c) provisions for maintenance of fuel modification zones
including the removal of all dead and dying vegetation and the inspection and correction of any deficiencies in the irrigation system three times a year; and a method for
keeping fire protection access easements unobstructed. A statement shall acknowledge that approval of the Chief of Fire Protection Services shall be required for any
modifications such as speed bumps, control gates, or
parking changes.
2.7 The applicant shall reimburse the City all costs associated with review of the project CC&Rs, Disclosure Statements, and any other applicable documents by the City Attorney's Office.
Easements
2.8 The final map shall depict the location of all easements for open space, trails, water and sewer easements, storm drains and storm drain maintenance access, public street lights, utilities, reciprocal access, emergency access, slopes and slope maintenance, and landscaping. All drainage easements shall be a minimum of 15 feet. No drainage facilities accepted for dedication or maintenance by the City shall be located within slopes. (SCMC Section
16.28.030)
2.9 The applicant shall demonstrate to the satisfaction of the City Engineer that quitclaims in favor of the City have been obtained from all persons having any interest in existing rights of way for pipelines for the conveyance of water, and for all rights to all underground water. The right to all underground water, but without right of entry to the surface thereof, shall be conveyed to the City.
No easements shall be granted nor recorded over any portion of the property shown on the submitted record map between the date Page4
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15 Resolution No. ZA 22-005, Exhibit A
the tentative map is approved by the Planning Commission and the date the final or record map is recorded by the County Recorder. (SCMC Section 13.04.500)
2.24 Unless otherwise approved by the City Engineer, the owner shall provide independent water meters and separate services for each unit in the common area. All water meters shall be located in the public right of way or as otherwise approved by the City Engineer. (SCMC Section 16.32.010)
2.36 Per Municipal Code 12.08, discretionary projects with building permit valuations of $50,000 or more are required to dedicate easements for public pedestrian sidewalk purposes if necessary.
The current design shows that an easement is not necessary, but in the event the design changes, the City reserves the right to require that an easement be granted to the City on the Final Map.
Additionally, if the design changes so that an easement is necessary, the City reserves the right to require the garage doors be setback at least 18 feet from the back of the sidewalk easement to the satisfaction of the City Engineer. (SCMC Chapter 12.08)
2.37 The Applicant (including any property owners and managers, and their designees) shall obtain approval of a Tentative Parcel Map from the California Coastal Commission, for the duplex
condominium conversion.
2.38 Prior to final parcel map approval, the owner shall pay or reimburse the City all costs associated with City Attorney review of the project CC&Rs, Disclosure Statements, and any other applicable
documents. In addition, the owner shall pay all applicable development and final map fees for each unit, which may include, but are not limited to, park acquisition and development impact fees. [Citation - S.C.M.C. Title 15, Building and Construction, Sections 15. 52, 15. 56, 15. 60, 15. 64, 15. 68, 15. 72).
7.0 OPERATIONAL CONDITIONS OF APPROVAL
7 .17 The Applicant (including any property owners and managers, and their designees) shall ensure that discharge of washwater and other pollutants is prohibited from entering the storm drain system.
Applicant must prevent pollutants (e.g. sediment, trash, food waste etc.) and any washwater used during cleanup from entering the storm drain system.
*
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Denotes a modified Standard Condition of Approval
Denotes a project-specific Condition of Approval
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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
Meeting Date: March 19, 2024 Agenda Item: 13A(1)
Submitted By: City Clerk
Prepared By: Laura Campagnolo, City Clerk
Subject:
..titl e
V..body ACANCY ON THE COASTAL ADVISORY COMMITTEE
Fiscal Impact:
None.
Summary:
Dr. Suzie Whitelaw has resigned from the Coastal Advisory Committee. Dr. Whitelaw’s term on the Coastal Advisory Committee was set to expire on June 30, 2025.
In May of each year, the City Council authorizes staff to advertise to fill vacancies on all City Commissions and Committees with terms set to expire in June of alternating years. The City Council then conducts interviews and makes appointments to each Commission and Committee, with terms effective July 1 of each calendar year.
The City Council may wish to direct staff to advertise and recruit to fill one vacancy on the Coastal Advisory Committee, or, the position can remain vacant and can be recruited in May, along with all of the other vacant Commission and Committee seats.
Council Options:
Direct staff to recruit to fill the vacant seat on the Coastal Advisory Committee immediately. Direct staff to recruit to the fill the position in May when the City Council recruits for open positions on all City Commissions and Committees.
Take no action.
Environmental Review/Analysis
This is not a “project” under the California Environmental Quality Act.
Recommended Actions:
Staff Recommendation ..recommendation
Direct staff to advertise to fill Dr. Whitelaw’s vacancy on the Coastal Advisory Committee with a term to expire on June 30, 2025 when the City Council recruits for open positions on all City Commissions and Committees in May.
..end
1 Meeting Date: March 19, 2024 Agenda Item: 13A(1)
CITY OF SAN CLEMENTE
Attachment:
None.
Notification:
None.
2 910 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: March 19, 2024 Agenda Item: 13A(2)
Department: City Manager
Prepared By Andy Hall, City Manager
Subject:
..titl e
CONSIDERATION OF AMENDMENT TO SECTION 4.8 OF CITY COUNCIL POLICY 1201-11 (CITY COUNCIL MEETING AND OPERATING PROCEDURES) ASSIGNING A MEMBER OF THE CITY COUNCIL AS A LIAISON TO EACH CITY COMMISSION OR COMMITTEE..body Fiscal Impact:
None.
Summary:
The City of San Clemente has several Commissions and Committees that play a vital role in the effective governance of the City. Section 4.8 of City Council Policy 1201-11 would assign a member of the City Council as a liaison to each City Commission or Committee.
Background:
The City Council has created several Commissions and Committees to help them address various areas of interest in the community. In an effort to improve communication and allow all members of the City Council to be better informed about the work accomplished by the Commissions and Committees, it is recommended that a member of the City Council will be assigned as a liaison to each Commission and Committee. If the proposed policy is adopted, the City Councilmember would complete the following assignments:
1. Meet with the Chair and support staff of the assigned Commission or Committee to review the proposed agenda to determine consistency with the adopted work plan.
2. Accept requests for City Council or staff support to accomplish the tasks included in the adopted work plan.
3. Provide an oral report of the Commission or Committee activities to the City Council during the appropriate agenda item on a regular agenda of the City Council.
The current Commissions and Committees in the City of San Clemente include:
The Beaches, Parks and Recreation Commission
The Planning Commission
The Arts and Culture Committee
The Coastal Advisory Committee
The Investment Advisory Committee
1 Meeting Date: March 19, 2024 Agenda Item: 13A(2)
CITY OF SAN CLEMENTE
The Golf Course Committee
The Human Affairs Committee
The Public Safety Committee
The City Councilmember is not expected to attend the meetings of the Commission or Committee, but rather act as a resource and conduit for improved communication.
Council Options:
Adopt amended City Council Policy 1201-11.
Adopt other amendments to City Council Policy 1201-11. Reject City Council Policy 1201-11.
Environmental Review/Analysis:
This is not a project as defined by the California Environmental Quality Act.
Recommended Actions:
Staff Recommendation ..recommendation
Staff recommends adoption of amended City Council Policy 1201-11.
Attachments:
1. Policy 1201-11 with proposed amendments
2. Councilmember Assignments to City Commissions and Committees Notifications:
None.
..end
2
ATTACHMENT 1
POLICY AND PROCEDURE
Subject: City Council Meeting
and Operating
Procedures
(Parliamentary Procedures,
Due Process, Mayor/Mayor
Pro Tempore, Council
Correspondence, Meetings,
Agendas, and Minutes)
Index: City Council
Number: 1201-11
Effective
Date:
March 19, 2024(supersedes
January 16, 2024)
Prepared City Clerk
By:
Supersedes: Policy and Procedures 1201-
1 (Mayor and Mayor Pro
Tempore); 1201-2 (Meetings
of the City Council); 1201-3
(Order of Business and
Preparation of Minutes);
1201-4 (Council
Approved
By:
City Council
Correspondence and
Agenda); 1201-5 (Rules of
Debate, Decorum, Voting
Requirements & Procedures);
1202-2 Management/
Streamlining of City Council
Meetings); and 1201-11 (City
Council Meeting and
Operating Procedures)
1.0 PURPOSE:
To establish policies for City Council meetings and operations, including parliamentary procedures, due process, election/roles of Mayor and Mayor Pro Tern, agendas, and the preparation of minutes.
2.0 ORGANIZAT/ONS AFFECTED:
City Council
City Commissions and Committees*
*Note: Except as otherwise noted throughout this Policy, this Policy shall a/so apply to the City's Commissions and Committees. In applying this Policy to City Commissions and Committees, the term "Council" shall be interpreted to mean the name of the City Commission or Committee, the term "Mayor" shall be interpreted to mean "Chairperson", the term "Mayor Pro Tempore shall be interpreted to mean "Vice Chair': the term "Manager" shall be interpreted to mean "Director", and the 3
term "City Clerk" shall be interpreted to mean the staff member responsible for providing support to the Commission/Committee.
3.0 REFERENCES:
The Ralph M. Brown Act, GC Section 54950, et seq.
4.0 POLICY:
4.1 Parliamentary Procedures and Due Process
4.1.1 The proceedings of the City Council shall be guided under the latest revised edition of "Rosenberg's Rules of Order," on all matters pertaining to parliamentary procedure, but no ordinance, resolution, proceeding or other action of the City Council shall be invalidated or the legality thereof otherwise affected by the failure or omission to observe or follow such rules. In the event of a discrepancy between Rosenberg's Rules of Order and this Policy and Procedure, this Policy and Procedure shall prevail.
4.1.2 The Mayor, with assistance from the City Attorney, is designated as the parliamentarian for City Council meetings. The City Clerk shall assist in the City Attorney's absence. Any member of the City Council or the public (pursuant to process below) may raise a point of order and/or seek the City Attorney's input on parliamentary issues, which shall then be considered by the Mayor. The City Council may override any parliamentary decision of the Mayor with a majority vote. The Mayor may interpret and apply but not amend these policies.
Points of order may be raised at any time by City Councilmembers.
Points of order may be raised by members of the public in connection with their opportunity to speak on agenda items pursuant to Section
4.4.6. The Mayor (or chair) shall rule on the point of order and/or request clarification of the law from the City Attorney and then decide and rule. If the point of order is denied by the Mayor or chair, the person making the point of order may seek a vote of the entire Council or body, which decision shall be final.
Members of the public wishing to raise points of order after their opportunity to speak may submit those points of order in writing prior to the adjournment of the meeting. Items so submitted shall be presented for consideration by the City Council in connection with its approval of the minutes of that meeting pursuant to Section
4.6 hereof. At that time the Mayor and City Council will review and decide the point of order raised and determine whether it warrants scheduling and noticing of that item for reconsideration. 4
4.1.3 It shall be understood that a member of the City Council or prospective member of the City Council may, in the course of seeking elective office, be asked to state positions on general issues that may eventually come before the Council at a later date. This policy shall in no way impair that Councilmember's right to consider the issue and vote as he/she determines is appropriate.
4.1.4 Ex parte communications are communications received outside of Council meetings or hearings. When the Council acts in a legislative role (for example, to adopt general plan or zoning amendments or to adopt ordinances), Councilmembers are permitted to draw upon nearly all observations and considerations they receive inside and outside the Council meeting. On the other hand, when acting in a quasi-adjudicatory role (hearing permits, revocations, and similar non-legislative decisions), the Council, as fact-finder, should limit its consideration of facts to those presented at the hearing, where all sides have the opportunity to hear and rebut testimony given by all participants. To this end, Councilmembers should avoid receiving or gathering information that might otherwise influence its consideration of the written record and any other testimony it hears through the formal hearing process, or at least disclose their receipt of that information.
4.2 Election of Mayor and Mayor Pro Tempore and Roles of Those Offices
4.2.1 At the first Regular City Council meeting in December of each year, the Council shall elect from its members a Mayor and Mayor Pro Tempore. The new Mayor and Mayor Pro Tempore shall assume office immediately. (Note: Commissions and Committees shall elect from its members a Chairperson and Vice Chair at its first regular meeting occurring after Council completes its annual appointment process for Commission and Committee members and those members assume office.) The process for electing Mayor and Mayor Pro Tempore and for electing Commission and Committee Chairs and Vice-Chairs shall be as follows:
4.2.1.1 The nomination/election of the Mayor or Chair is conducted by the City Clerk or staff. Once the new Mayor or Chair is elected, that member of the Council or body immediately presides and conducts the vote on Mayor Pro Tempore or Vice-Chair.
4.2.1.2 The method of nomination in this respect is an "open nomination" solely by and from within the membership of the presently-seated City Council or City body. Nomination cannot be accepted from members of the public.
4.2.1.3 No "second" is required for nomination, although sometimes one or more members will "second" a nomination to indicate endorsement. 5
4.2.1.4 In no event may any one member nominate more persons than there are offices to fill in the respective selection.
4.2.1.5 When it appears that no one else wishes to make a nomination, the chair of the meeting asks one (1) final time if there are additional nominations. If there is a no response, the chair then declares..."the nomination for Mayor or Mayor Pro Tempore, Chair or Vice-Chair as applicable is closed."
4.2.1.6 It is unnecessary to have a motion to officially close the nomination; yet, if such a motion is made, that motion then requires an affirmative 213rd vote of the members present [4 or 5]. After nominations are closed, a majority vote is required to re-open it.
4.2.1.7 Nominees are voted on in the order in which they are nominated.
As soon as one of the nominees receives a majority vote of those members present in the voting, the Mayor or Chair then declares that person elected to that respective office, and no vote is taken on the remaining nominee(s).
4.2.1.8 Rounds of voting shall continue in succession until one nominee is elected.
4.2.2 The Mayor and Mayor Pro Tempore shall serve a one-year term at the pleasure of the Council majority.
4.2.3 The Mayor shall act as the primary spokesperson and official representative of the City Council, unless such responsibility is delegated by the Mayor, or otherwise assigned by a majority of the City Council.
4.2.4 The Mayor shall preside at all regular, adjourned regular, special and emergency meetings of the City Council, including joint meetings with commissions and committees and closed sessions.
4.2.5 The Mayor shall execute all official City documents, warrants and correspondence approved by the City Council.
4.2.6 The Mayor is authorized to issue proclamations, commendations and certificates of recognition, which may be presented at Council meetings under Special Presentations. The total time allotted to Special Presentations should, if possible, be limited to 15 minutes per meeting. (This section does not apply to Commissions or Committees.)
6
4.2.7 Nothing in this section is intended to suggest that the office of Mayor possesses formal powers or authority in excess of other members of the City Council; rather, the person serving as Mayor is to be recognized as the chairperson of the Council.
4.2.8 The Mayor Pro Tempore shall serve and perform the functions of the Mayor in the absence of the Mayor. If both the Mayor and Mayor Pro Tempore are absent from a City Council meeting, the Council members present shall select a Councilmember from those members present to perform the functions of Mayor at that particular meeting.
4.3 City Council Correspondence
4.3.1 The City Manager, or his/her designee, is authorized to open and examine all mail or other written communications addressed to the City Council as a body, but shall not open correspondence addressed to an individual Councilmember without their express authorization.
4.3.2 The City Manager may take action, or direct that action be taken, on issues or requests that do not require Council action. The City Manager shall inform Council when actions are taken on matters of significance or that are likely to be of interest to the City Council.
4.4 City Council Meetings
4.4.1 The date, time and location of Regular Meetings of the City Council shall be established by resolution. At 11:00 p.m. at each meeting, the City Council, by majority vote, will determine whether to continue the meeting or adjourn.
4.4.2 At all meetings of the City Council, a majority of the Council members shall constitute a quorum for the transaction of business. In the event less than a quorum of the City Council is present, the City Clerk shall adjourn the meeting (which may include adjourning to an Adjourned Regular Meeting), post a Notice of Adjournment, and prepare minutes that reflect that the meeting was adjourned due to lack of a quorum.
4.4.3 The City Clerk, or Mayor, shall announce an agenda item before discussion on that item commences.
4.4.4 Each person desiring to address the Council is requested to submit to the City Clerk a speaker form. After being called upon by the Mayor, the speaker may proceed to the podium. The speaker may 7
state for the record his/her name and city of residence, but shall not be required to do so.
Members of the public may speak for three (3) minutes and project applicants and appellants (including members of an applicant's or appellant's project presentation team, when applicable) may speak for a combined total of ten (10) minutes on agenda items. At Council's request where Council is acting in a fact-finding or hearing capacity, the Mayor may grant additional time (unless overruled by a majority of Councilmembers present) to speakers on agenda items.
Speakers will be called to the podium once Staff concludes its presentation of an item and before Council begins its deliberations.
Speaker cards will not be accepted once deliberations have commenced.
Speakers on non-agenda items may speak for three (3) minutes during the oral communications - public forum portion of the meeting.
At the beginning of the Consent Calendar, the City Clerk will notify the Mayor or meeting Chair of any public comments related to the Consent Calendar. Speakers will be allotted 3 minutes to speak on the Consent Calendar in its entirety. After public comments, if any, are heard, the City Council will vote on the Consent Calendar as one agenda item.
The time that a speaker devotes to responding to Council inquiries shall not be deducted from their allotted speaker time.
4.4.5 Members of the public may not assign their speaker time to another person.
4.4.6 The purpose of addressing the City Council is to communicate formally with the City Council regarding matters that relate to City Council business or citizen concerns within the subject matter jurisdiction of the City Council. Persons addressing the City Council on an agenda item shall confine their remarks to the matter under consideration by the City Council. Speakers may be asked to clarify how their comments relate to the matter at hand. Speakers may address the entire Council or individual Councilmembers, and, if allowed by the Mayor or chair, City staff.
4.4.7 Once recognized, members of the public shall not be interrupted when speaking unless to be called to order by the Mayor to: (i) curtail extraordinary repetition, (ii) curtail speech that is irrelevant to the City Council's subject matter jurisdiction, (iii) explain how his or her speech relates to the City's subject matter jurisdiction, or (iv) address some other point of order. If a speaker is interrupted to be called to order, the speaker shall cease speaking until the question of order is determined, and if in order, he or she shall be permitted to proceed, 8
with additional time allotted for the time taken to determine the question of order.
4.4.8 In order to avoid repetitious presentations, whenever any group of persons wishes to address the Council with the same message, it shall be proper for the Mayor to request that a spokesperson be chosen by the group to represent the group's position. Speakers shall not, however, be required to abide by such a request.
4.4.9 To expedite Council meetings, Councilmembers are encouraged to contact Staff prior to Council meetings to obtain answers to questions and to obtain clarifications as needed.
4.4.10Staff shall compose Administrative Reports in a clear and concise manner. Staff shall strive to write reports in a manner that can be easily understood by persons that do not have training in the report's subject matter.
4.4.11Staff presentations at Council meetings are to be condensed to the briefest extent possible, while still providing a basic overview of the issue under consideration. Staff is encouraged to refrain from reiterating issues previously addressed in the Administrative Report.
However, Staff engaged in such communications shall not use these opportunities to communicate with the members of the City Council the comments or position of any other member of the City Council on City Council business.
4.4.12 Members of the public shall not engage in conduct that disrupts, disturbs, or otherwise impedes the orderly conduct of the City Council meeting. Any person who so disrupts the meeting is subject to removal from the meeting.
Prior to removing anyone from a City meeting, the Mayor (or other designated chair) shall: (i) notify the person that he/she is in violation of this Section 4.4.12, (ii) specify the specific behavior giving rise to that conclusion; (iii) explain all grounds for the belief that the person's conduct is in violation of law/policy and why such conduct subjects the person to expulsion; and (iv) notify the person that if the conduct continues he/she will be removed. The person receiving such notification shall be asked if he/she understands the conclusion but shall not be required to accept it.
Members of the public receiving notice of disruption pursuant to this section shall have the right, prior to being removed from the meeting, to ask the Mayor to consult with the City Attorney on the grounds for expulsion, and to submit a point of order on the grounds for expulsion. The City Council may override this decision pursuant to Section 4.1.2. The City Attorney shall have a duty to inform the Mayor (or other designated chair) and the public if the City Attorney believes that the Mayor's action is in violation of applicable law. 9
4.4.13 Motions must be seconded in order to proceed to a vote.
4.5 City Council Agendas
4.5.1 With the exception of items added to a City Council agenda pursuant to Section 4.5.4 of this Policy, the City Manager and Mayor in conference shall be responsible for determining items to appear on City Council meeting agendas.
4.5.2 The standard template for City Council agendas shall be established by Council by majority vote. The City Manager shall have the authority to reorganize the template on a case-by-case basis if he/she believes that a variation in the normal order of business is appropriate.
4.5.3 Councilmembers may agendize items to enable them to "report out" on matters relating to their own activities, including activities pertinent to their Council-appointed positions on regional commissions, committees and boards, provided the report is informational only. If Council action is being sought, the process defined in Section 4.5.4 of this Policy shall be followed.
4.5.4 Two members of the City Council may propose at a Council meeting that an item be agendized for future Council discussion, consideration, and/or action. Subject to notice and hearing requirements, the item shall be agendized for a future meeting and noticed as required by law. Items agendized pursuant to this section shall appear on an agenda under the New Business portion of the agenda and the names of the Councilmembers who agendized the item shall be included with the item description. Staff Reports will only be prepared if a minimum of three members of the City Council vote affirmatively at a Council meeting to direct Staff to prepare a report.
4.5.5 Notwithstanding Sections 4.5.1 and 4.5.4 of this Policy, the process to review, appeal, or otherwise "call up" decisions by the Planning Commission or other subordinate City bodies shall be subject to the requirements of the San Clemente Municipal Code.
4.5.6 Notwithstanding Section 4.5.4, a proposal to reconsider any action taken by the City Council may be raised only at the same meeting or the next regularly scheduled meeting of the City Council after the action is taken and may be raised only by one of the
Councilmembers who voted with the prevailing side. Additionally, the motion to reconsider may only be made by one of the
Councilmembers who voted with the prevailing side.
4.5.7 The City Clerk shall be responsible for the preparation of Council meeting agendas and shall cause copies to be posted on the City Hall bulletin board(s) and City website. Regular and Adjourned Regular Meeting agendas shall be posted within the posting time 10
requirements as set forth in State law. In the case of special meetings, agendas shall be posted as soon as practical, but in no event less than the posting time requirements as set forth in State law.
4.5.8 Consent Calendar items shall be comprised of items that are expected to be noncontroversial. Unless an item is removed from the Consent Calendar by a member of the Council or staff, for separate discussion and action, the Consent Calendar may be acted upon by one motion as one item.
4.5.9 The City Council may waive the reading in full of all Resolutions and Ordinances. The reading of Resolution titles shall be optional. The reading of Ordinance titles shall not be waived.
4.5.10 Members of the public may address Council concerning matters within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, during the Oral Communications portion of the agenda. Speakers may address Council once during either Oral Communications Part 1 or Part 2. Speakers shall be allotted 3 minutes in which to give his or her presentation.
4.6 City Council Minutes
4.6.1 The City Clerk shall have exclusive responsibility for the preparation of the minutes.
4.6.2 The minutes of City Council meetings shall be submitted to Council for approval/modification at a City Council meeting. Any direction for modifications to the City Council minutes shall only be made upon a majority vote of the City Council.
4.6.3 Minutes shall be prepared in brief concise form, in what are commonly referred to as "action minutes". Action minutes memorialize what was done at a meeting, as opposed to what was said at a meeting. An exception to this guideline is that a brief summarization of comments provided to Council by the public are to be included in the minutes. Additionally, the identity of Councilmembers who make motions, second motions, and cast votes on motions are to be included in the minutes.
4.6.4 Unless the reading of the minutes of a City Council meeting is ordered by a majority of the Council, such minutes may be 11
approved without reading if the City Clerk has previously furnished each Councilmember with a copy thereof.
4.6.5 The approved minutes shall be executed by the Mayor and City Clerk upon approval by the City Council and shall constitute the official record of the City Council meeting.
4.6.6 The City Clerk shall enter the original executed minutes into the official records of the City as a permanent document.
4.7 Closed Sessions
4.7.1 The City Council may hold closed sessions during duly-noticed Council meetings on issues authorized by State law.
4.7.2 A City Commission or Committee may hold closed sessions during duly-noticed meetings of its body on issues authorized by State law, the City Council, and the City Attorney.
4.7.3 No member of the City Council, employee of the City, or any person present during a closed session shall disclose to any other person the content or substance of discussion or action which took place during the session, unless a majority vote of the Council authorizes such disclosure.
4.7.4 Closed sessions shall be limited to members of the City Council, City Manager, City Attorney and/or City legal counsel, as well as staff members and experts designated by the City Manager or City Attorney to attend portions of Closed Sessions relating to specific issues, as permitted by law.
4.7.5 To the extent possible, the public will be notified prior to the time that the City Council recesses to closed session as to whether or not a public announcement of action is anticipated following the Closed Session.
4.7.6 Where potential plaintiffs and defendants have manifested or communicated their awareness of facts and circumstances and a legal theory connecting those facts and circumstances to potential litigation involving the City, those facts and circumstances, together with (i) the identity of potential parties or (ii) related documentation, shall be disclosed prior to a closed session to discuss anticipated litigation, in accordance with GC 54956.9.
12
4.8 Nomination and Vote on City Council Appointments to City Commissions and Committees Assignment of a City
Councilmember as a Liaison to Each City Commission and
Committee
From time to time, the City Council will assign one of its members to serve as a liaison to each City Commission and Committee.
4.8.1 Council votes on appointments to City Commission and Committees shall be according to the procedure for election of Mayor and Mayor Pro Tempore set forth in Section 4.2 above. The City Council Liaison shall meet with the Chair and support staff of the assigned Commission or Committee to review the proposed agenda to determine consistency with the adopted work plan and provide guidance.
4.8.2 The City Council Liaison will accept requests for City Council or staff support to accomplish tasks included in the adopted work plan.
4.8.3 The City Council Liaison will provide an oral report of their assigned Commission or Committee activities to the City Council during the appropriate agenda item on the regular agenda of the City Council.
4.8.4 The City Councilmember Liaison is not expected to attend the meetings of their assigned Commission or Committee, but rather act as a resource and conduit for improved
communication.
13 ATTACHMENT 2
2024 COUNCIL APPOINTED REPRESENTATIVES
TO CITY COMMISSIONS AND COMMITTEES
Commission/Committee Location Meeting
Date and
Time(s)
Representative
Beaches, Parks and
Recreation Commission
Council
Chambers
2nd Tuesday of
even months;
6pm
Planning Commission Council
Chambers
1 st and 3rd
Wednesday,
6pm
Arts and Culture Committee Council
Chambers
4 th Monday of
odd months;
5 pm
Coastal Advisory Committee Council
Chambers
3 rd Thursday
every other
month
(January,
March, etc.);
4pm
Investment Advisory Committee Community
Conference
Room, First
Floor
Last Monday
of the month
following the
quarter end,
5:30pm
Cabral
Golf Course Committee
Council
Chambers
1 st Thursday,
quarterly (May,
August,
November,
February) 6pm
Human Affairs Committee Community
Conference
Room
4 th Tuesday of
every Month,
3pm
Public Safety Committee Community
Conference
Room
Fourth Tuesday
of every month,
3pm
14 CITY OF SAN CLEMENTE, CALIFORNIA
Long Term Financial Plan 2024
Prepared By:
Finance and Administrative Services
1 1
Agenda Item: A
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City of San Clemente
Table of Contents
Title Page 1
Introductory Section
Table of Contents 3
City Manager Transmittal Letter 5
Executive Summary
(includes Overview and Recommendations)
11 Long Term Financial Plan
Financial Trend Analysis 19
Financial Forecast 49
Reserve Analysis 63
Fiscal Policy 83
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City of San Clemente
Andy Hall, City Manager
910 Calle Negocio, San Clemente, CA 92673
Honorable Mayor and Council Members:
In order to be effective, a financial plan must transcend the numerical statistics, forecasts, and observable fiscal trends and provide the reader with a narrative that can be easily understood and applied to critical financial decision-making such as adoption of the Municipal Budget and the Capital Improvement Program. This does not discount the importance of accounting, forecasting and trend analysis, but rather provides context, explanation, and purpose for understanding the current and potential future financial status of the City. In short, the Long Term Financial Plan should answer where are we, how did we get here, and where are we going?
Where Are We?
Since 1993, the Finance Staff has presented a Long Term Financial Plan (LTFP) as a planning tool to allow the City Council to make informed strategic decisions affecting the City’s fiscal sustainability. This effort has allowed the City to maintain a AAA bond rating, continue to provide a high level of municipal services, and prepare for many unanticipated expenses.
The short-term financial outlook remains stable, but there are some trends that need to be addressed.
The recent inflationary environment has led to increasing costs in personnel, capital projects and general operating expenses. Meanwhile, revenues, while increasing, have lagged behind the increasing costs. Nonetheless, in the coming months, staff will present a balanced two-year budget for consideration by the City Council.
Personnel
The City Council recognizes the importance of recruiting and retaining an effective staff. The adoption of the Classification and Compensation Study identified the goal of paying employees the median wage of our market competition. This is critical because without competitive wages, employee turnover, and the ability to recruit experienced and talented staff is impractical. Even at a median wage, the City must present opportunities and experiences that more are attractive than competitors that have the ability to pay compensation above the median wage. Fortunately, the City of San Clemente is blessed with a talented team of municipal employees.
Highlights:
o Adoption of the Classification and Compensation Study o Improved recruiting and retention efforts
o Transition to a “yes” first environment
Concerns:
o Public Safety costs (OCSD single largest expense, OCFA second largest single expense) are increasing much faster than municipal revenues.
o While progress has been made, the CalPERS unfunded accrued liability continues to be a financial challenge.
5 5
Capital Improvements
San Clemente has unmatched municipal facilities. Many of these improvements were made possible by allocating previous year revenues over expenditures to fund capital projects, tax increment financing from the former Redevelopment Agency, impact fees from development related activities and outside sources of funding such as grant programs. While revenues from these sources is reduced or in many cases no longer available, ongoing maintenance of these facilities remains. Even if fewer projects are completed in the future, related expenses must be considered in the LTFP. Highlights:
o Completion of new pickleball courts at Steed Park
o Slope stabilization at Casa Romantica
o Pavement rehabilitation and sidewalk improvements
Concerns:
o Unanticipated expenses resulting in reallocation of capital funding to unplanned projects. Neither the pickleball courts nor the slope stabilization at Casa Romantica were anticipated in the previously adopted Capital Improvements Program.
Summary of Current Conditions
The next two-year budget cycle can be best described as stable, but anticipated expenses are increasing faster than projected revenues. This is not a function of growth in the number of employees or the addition of new programs, but rather increasing employee costs both in public safety and to remain competitive in the municipal employee market, and general operating expenses in an inflationary environment. A course correction with additional revenues or the implementation of a different operational model will need to be considered in future years.
How Did We Get Here?
This section is the most important portion of the current LTFP. A clear understanding of the past is often the best way to prepare for the future. How was the City able to complete so many projects in the past that are the very fabric of the community today? Where was funding for the pier, the beach trail, the recreational amenities, road improvements and improvements to water quality generated? Simply looking forward without an analysis of the City’s financial history does not allow residents and the City Council to have a meaningful discussion about strategies going forward. In the past, residents have been willing to consider targeted revenue streams to improve the community. However, over the last several years, the City has lost several significant revenue streams.
Clean Ocean Fund
In early 2002, the City Council approved implementation of an Urban Runoff Management Plan (URMP) to help meet increased runoff/water quality regulations that were issued by the State to south Orange County cities. In late 2002, San Clemente property owners approved an Urban Runoff Management Fee that went into effect in January 2003 to help fund URMP activities. Funds generated by this fee were placed in a newly-created “Clean Ocean” enterprise fund, thus the Urban Runoff Management Fee became more commonly referred to as the “Clean Ocean Fee,” and the entire program commonly referred to as the “Clean Ocean Program.” Activities conducted using funding from the Clean Ocean Program include:
Structural Treatment and Storm Drain projects
Street Cleaning
Water Quality Code Enforcement
Commercial, Industrial and Municipal Facility Inspection Water Quality Monitoring
Expanded Public Education
6 6
The original fee program had a five-year sunset period and was set to expire at the end of December 2007. However, in late 2007 San Clemente property owners renewed the fee for a six-year period to end in December 2013. In December of 2013, residents voted to extend the fee for another six and a half year expiring in 2021. The fee was not renewed in 2021 in consideration of the impacts of the COVID-19 Pandemic, and at the time of expiration, the fee was generating more than $2.3 million annually for the City. Even though the fee has expired, the work tasks listed above must continue. These expenses have largely been absorbed by the General Fund.
Street Assessment District
In an effort to improve the quality of roads in the community, the residents approved a Street Assessment District in 1990 that expired in 2011. Road improvements are generally expected to last between 10-20 years and the City is still benefitting from those improvements. However, the $1.2 million generated annually from the assessment is no longer available and as road scheduled maintenance, more allocation from the General Fund may be needed.
Redevelopment Agency
Many of the City’s most treasured landmarks were funded by the former Redevelopment Agency through tax increment financing. When the state dissolved Redevelopment Agencies, the Redevelopment Area in San Clemente was generating about $2.5 million annually in tax increment.
These revenues were used to improve and maintain the pier, construct the improvements in the Pier Bowl, construct the beach trail, improve Casa Romantica and many other capital improvements.
Because this funding is no longer available, addressing the slope failure at Casa Romantica was funded from allocations from the General Fund originally intended to improve the Mariposa Bridge.
Development Impact Fees
Many of the current facilities enjoyed by residents were constructed during a period of growth in the community. Generally categorized as impact fees, a charge was assessed to each new dwelling that was earmarked for certain improvements such as parks. These funds were then used to construct new facilities to offset the impacts of growth on existing facilities. Although growth has slowed considerably, the facilities are in place and require ongoing maintenance. New facilities funded with impact fees are unlikely because for the most part, the community is built out. While there will be some continued growth and redevelopment, it is unlikely to be at previous levels.
Summary of How Did We Get Here?
Past revenue streams and prudent financial decisions made by the City Council allowed the City to create strong reserve accounts that have allowed the City absorb the loss of millions of dollars annually from the General Fund. However, it is clear that the loss of these revenue streams is beginning to impact the ability of the City to continue the current operational structure. Remaining with the status quo, the residents may need to accept a change in the provision of municipal services, or consider the replacement of some of the lost revenue with new sources of income.
Where Are We Going?
As costs increase and revenues are projected to lag behind, it will be critical to establish community priorities and stay the course. There will be unanticipated events that occur, but they will have more impact on other planned projects than they have in the past.
The General Fund is fully funding Emergency Reserves at $15.0 million, which is 18% of the City’s operating expenditures which is consistent with City Council policy. However, the General Fund’s unassigned fund balance is anticipated to be reduced over the five-year period based on costs increasing faster than revenues and anticipated one-time costs. Unassigned fund balance is essentially the City’s savings account available to fund one-time costs and capital activity which is replenished by maintaining 7 7
a positive operating position, and further bolstered by revenue overages or budget cost savings each year.
The General Fund operating position (operating revenues less operating expenditures) is forecasted to be positive, yet declining in future years. This again is the result of rising costs outpacing increases in revenues over the forecast period. In addition to the decline explained by revenue growth being less than increases in expenses, over the past several years the City has lost more than $5 million of revenue sources from the dissolution of Redevelopment Agency, the expiration of the Street Assessment District and the sunsetting of the Clean Ocean fee. This has increased pressure on the City’s General Fund to absorb costs related to the pier, Casa Romantica, and the beach trail, as well as programs to ensure regulatory compliance.
The most critical consideration about the future are the expenses associated with the emphasis placed on beach nourishment and coastal management. Without question, the economic future of the community relies heavily on the health of our coastline. The City has initiated the first of several sand placement projects on beaches between T Street and Linda Lane associated with a 50 year program managed by the Army Corps of Engineers. While the City was only responsible for 15% of the costs of the first placement, the City will be responsible for 50% of the costs for future placements which will be in the $10-$15 million range every 5-6 years. Additionally, the City is seeking to obtain approval of a Sand Compatibility and Opportunistic Use Program (SCOUP) to place sand on beaches not included in the USACE program. The anticipated cost of these projects will be millions of dollars as well.
Current revenue projections simply cannot accommodate a robust beach nourishment program without eliminating many existing municipal services. If the residents demonstrate a willingness to reestablish past revenue generation or consider new sources of revenue, some of the options could be:
Implementation of new fees (pickleball, fee schedule update, etc. - Council approval required) Reestablishment of the Clean Ocean Fund (voter approval required) Reestablishment of the Street Assessment District (voter approval required) Increase in the Transient Occupancy Tax (voter approval required) Implementation of a Transaction Use Tax or Sales Tax (voter approval required) Our Spanish Village by the Sea continues to see challenges, but the City’s dedicated staff has been resilient and continues to work toward addressing issues to best meet citizens’ expectations. Input, leadership and guidance from the City Council based on input from their constituents will ensure the City government operates effectively.
Andy Hall
City Manager
8 8
City of San Clemente
City Council
Victor Cabral, Mayor
Mark Enmeier, Mayor Pro Tem
Chris Duncan, Council Member
Steve Knoblock, Council Member
Rick Loeffler, Council Member
City Manager
Andy Hall
Administrative Services Director
Brian Brower
Financial Plan
Financial Trend Analysis
Sandee Chiswick, Accounting Supervisor
Financial Forecast
Jake Rahn, Finance Manager
Reserve Analysis
Jake Rahn, Finance Manager
Fiscal Policy
Jake Rahn, Finance Manager
Matthew Schmelzel, Management Analyst
9 9
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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 protection of what is valued today
while meeting tomorrow’s needs.
10 10
CITY OF SAN CLEMENTE
CORE VALUES
Long Term Financial Plan Review
EXECUTIVE SUMMARY
LONG TERM FINANCIAL PLAN
Financial Trend Analysis
Objective
A number of financial indicators are analyzed utilizing the International City Management Association’s (ICMA) guidelines contained in “Evaluating Financial Condition”. The analysis of these indicators is designed to present information on the fiscal health of the City of San Clemente as part of the Long Term Financial Plan. This annual Financial Trend Analysis focuses on the City's General Fund.
Financial Forecast
Objective
To update the comprehensive five-year financial forecast for the General Fund, incorporating adopted City fiscal policies, expenditure patterns, revenue trends, fund balances and other known financial impacts and capital projects.
Reserve Analysis
Objective
Analyze and recommend appropriate levels of reserves to (a) ensure that reserves are adequate to provide for the needs of each fund’s program, (b) meet program needs without unnecessarily obligating scarce financial resources and (c) ensure compliance with City fiscal policies and legal requirements by State, County or local ordinances.
Fiscal Policy
Objective
Review the City’s adopted Fiscal Policy on an annual basis in order to determine appropriate changes, additions or deletions.
11 11
Long Term Financial Plan
Long Term Financial Plan (LTFP) Process
Governmental Finance Officers Association (GFOA) recommends that all governments regularly engage in long-term financial planning. The City of San Clemente annually provides a Long Term Financial Plan to City Council to assist with the development and financial allocation of resources and activities for the City through the upcoming budget process. The flow chart below graphically describes the steps that should go into a Financial Plan process.
Long Term Financial Plan
A long-term plan should include these steps.
• Mobilization Phase - The mobilization phase prepares the organization for long-term planning by creating consensus, aligning the project team, identifying services priority or policies, and identifying the purpose and scope.
Staff considers City Council input during meetings to be addressed through the annual LTFP process and seeks Council input from other forums. A project team was developed based on these areas and the purpose and scope of the LTFP were communicated to the project team. • Analysis Phase - The analysis phase is designed to produce information that supports planning and strategizing. The analysis phase includes the projections and financial analysis commonly associated with long-term financial planning. The analysis phase involves information gathering, trend projection and analysis to be provided to assist Council in making decisions.
Staff prepares the Trends Section to provide past financial information, the Reserves Section to address amounts/funding levels for significant amounts, Fiscal Policies are summarized and recommended changes are addressed, and a Forecast (based on identified assumptions) is presented to provide a perspective of General Fund resources. • Decision Phase - After the analysis phase is complete, the government must decide how to use the information provided. Key to the decision phase is a highly participative process that involves elected officials, staff and the public. Finally, the decision phase should address the process for executing the plan to ensure tangible results are realized.
Recommendations are presented based on the papers and information and is provided for City Council consideration related to potential actions. • Execution Phase - After the plan is officially adopted and input is received, decisions must be put into action (e.g. funding required in achieving goals). The execution phase is where the decisions become operational through the budget, planning, and financial performance measures.
Mobilzation Analysis Decision Execution
12 12
Long Term Financial Plan
Staff will take input from the City Council and the public and incorporate direction into budget actions. This is accomplished through a Decision Package process or by adding amounts and activities to program budgets. Council will receive the budget plan in a Budget Workshop in May to discuss any further changes or actions that should be taken.
GFOA recommends that certain elements be incorporated into the long-term financial plan. A longterm financial plan should include these elements:
Time Horizon - A plan should look at least five to ten years into the future. The City of San Clemente utilizes a five-year timeframe.
Scope - A plan should consider appropriate funds, but especially funds used to address the main issues. The main operating fund of the City of San Clemente is the General Fund, however other funds will be discussed as they relate to the different Council actions.
Frequency - Governments should update long-term planning activities as needed in order to provide direction to the budget process, though not every element of the long-range plan must be repeated. The City of San Clemente has done the Long Term Financial Plan annually as a result of forecasted future operating deficits and to address emerging issues.
Content - A plan should include an analysis of the financial environment, revenue and expenditure forecasts, debt position and affordability analysis, strategies for achieving and maintaining financial balance, and plan monitoring mechanisms, such as scorecard of key indicators of financial health. This is done through the Trends, Reserves, Fiscal Policy and Forecast with recommendations incorporated into the plan.
Visibility - The public and elected officials should be able to easily learn about the long-term prospects of the government and strategies for financial balance. Annually, this is done through the Long Term Financial Plan and a public workshop.
GFOA started addressing a framework to promote financial sustainability for building a sustainable, resilient community. This leadership framework is less focused on finances and more focused on the process and participation of stakeholders. The framework consists of five pillars, which can be used to address and discuss strategic issues that arise. The five pillars include the following: 1) Establishing a Long-Term Vision, 2) Build Trust and Open Communication, 3) Use Collective Decision making, 4) Create Clear Rules, and 5) Treat Everyone Fairly. The City hopes the Long Term Financial Plan, public hearing and budget addresses these pillars.
13 13
Long Term Financial Plan
OVERVIEW
The Long Term Financial Plan (LTFP) is discussed and LTFP information is summarized in the following pages. Each LTFP paper has more detail and a more comprehensive analysis. The LTFP Overview is in the following format:
• Introduction
• Summary
• List of LTFP Recommendations
INTRODUCTION
The LTFP provides a view of financial issues facing the City of San Clemente and helps outline a plan to meet the needs of the community without sacrificing the City’s financial future. The 2024 Long Term Financial Plan (LTFP) Overview presents a snapshot of the papers and summarizes recommendations generated based on the LTFP sections. The LTFP sections have more detailed information and the information is summarized within the Summary in each paper.
Utilizing the financial tools in place, the LTFP looks at the Financial Trends, Reserve Analysis and Financial Forecast, to diagnose the “fiscal health” of the City of San Clemente in order to chart a sound financial course. The LTFP offers analysis, information, and recommends solutions to current or future issues. The LTFP acts as a guide in developing the annual budget, assists in developing financial policies, and offers recommendations to assist future needs.
The focus remains on building a solid foundation for the future while maintaining and expanding programs and services. Examples of program and service enhancement over the past year include the following:
• Coastal Administrator position
• Police Services additional deputies
• Security services contract
• Park Ranger expansion
• Trolley System expansion
It is important to seek ongoing funding sources to keep pace with the cost of City services. Looking forward, staff will focus on exploration of revenue enhancement opportunities to maintain a healthy financial position. Additionally, the City has lost approximately $5 million of revenue sources from the dissolution of Redevelopment Agencies and the sunsetting of the Clean Ocean fee within the last 10 years, creating additional pressure on the General Fund. This has resulted in the City’s General Fund absorbing cost related to the pier, Casa Romantica and other pier bowl improvements, and the beach trail. The loss of the Clean Ocean fee has required costs to be funded by the General fund for a variety of programs to ensure compliance with various regulations. The City used American Rescue Plan funds in the past to offset some costs, but these funds are anticipated fully utilized at the end of this fiscal year.
The LTFP offers analysis and
solutions for current and
future issues
14 14
Long Term Financial Plan
Overall, the economy is stable, but the growth rate has decreased while costs have been impacted by inflation. Costs have increased and the expectations are still being felt in the forecast as new contracts are entered into or contracts complete. The rate of inflation growth has decreased with no outlook for deflation in the future. Property taxes continue to grow, however sales tax growth has slowed as pandemic stimulus has been exhausted, as the Federal Reserve focuses on a return to a target inflation rate of 2%-3%. Generally, the economy is stable as a soft landing is anticipated. The inflation rate is anticipated to decrease to the 2-3% range in the next few years as money supply return to normal levels and pandemic stimulus works its way through the economy. The General Fund’s main revenue source of property taxes is still strong based on demand for housing, however sales taxes growth has slowed as the money supply is tightened and costs increased making less disposable income for sales taxes growth than previous years.
The Long Term Financial Plan is to be informational and act as a guide to Council, management and the provide citizens input opportunities as decisions are made.
LTFP SUMMARY
The City of San Clemente prepares a comprehensive Long Term Financial Plan (LTFP) annually. The LTFP serves as a tool for City Council to identify financial trends, shortfalls, reserves and outline policies so actions may be taken to proactively address them. The LTFP papers offer recommendations to ensure reserves are funded, fiscal policies are updated, and to provide Council information on the General Fund’s the past, current, and future financial considerations for the City’s operations to maintain a sustainable operating position.
City Council worked with a consultant in FY 2022-23 to determine strategic priorities for the City.
These strategic priorities, which were approved by City Council, are used as a guide to assist the City Manager and staff in developing budget priorities. The 5 strategic priorities follow:
Generally, the economy is stable
as a soft landing is anticipated.
The inflation rate is anticipated
to decrease to the 2-3% range in
the next few years…
15 15
Long Term Financial Plan
The LTFP is an opportunity to review the finances of the City and ensure all priorities are considered, so not just one priority is focused on to the detriment of others. A summary of the individual LTFP sections follow with the recommendations.
The Financial Trend section includes the analysis of twenty-two trends. These trends relate to revenue, expenditures, operating position, debt, and community factors. Multiple trend indicators were impacted by inflation, population changes, and a strong housing market. The total indicators were 14 with a Favorable rating and 8 with a Favorable/Caution.
Revenue Trends had five ratings with Favorable/Caution compared to four in the previous year. Sales taxes decreased which in turn impacted elastic revenues, both changed to Favorable/Caution from Favorable ratings. Elastic revenues are affected more directly by economic factors than other revenue sources. Property tax revenues, increased in actual and constant dollars and the rate was changed to Favorable from Favorable/Caution. Higher inflation effectively lowers revenue, so a review of fees and charges to ensure cost recovery to match service costs and lessen the impacts of inflation is important. Better cost recovery allows improvements to service levels.
Expenditure Trends had no indicator changes. Expenditures per capita are Favorable/Caution as expenditure increases were realized partially due to inflation and activity increases and a population decrease places these costs on a smaller population base. Population does not take into consideration tourism impacts. Fringe benefits remained at the Favorable/Caution once one-time pension payments were considered, and should improve to Favorable in future years.
The Operating Surplus (deficit), Unrestricted Fund Balance, and Pension Unfunded Liability were Favorable. Population in recent years continued decreasing remaining at Favorable/Caution, while property values increased at a pace greater than inflation changing to Favorable from Favorable/Caution.
The Financial Forecast sets the stage for the upcoming budget process, facilitating the City Council to consider strategic priorities and to allocate resources appropriately. This Long Range Financial Forecast is not intended as a budget, nor as a proposed plan. The forecast is based on current service levels, doesn’t factor in future development, and uses general assumptions that may be different than actual amounts.
STRATEGIC PRIORITIES
5 Strategic Priorities for the City of San Clemente
Ensure financial
stability as
demonstrated by
low debt, high
ratings, and new
revenue generation
Grow resident
confidence and
value in City
services and
operations
Update and
maintain
infrastructure that
reflects best
available
technology and
services
Improve and
maintain strong
staff recruitment
and retention
strategy to attract
and keep best and
most qualified staff
Maintain strong
approach to digital
transformation to
become best in
class
16 16
Long Term Financial Plan
The forecast shows all 5 years with a positive, but declining, operating position. This is a result of increasing costs that are exceeding the revenue growth experienced in the General Fund. Revenues average an annual increase of 3.4% over the forecast period while operating expenditures are increasing annually by 3.7%.
Over time, the growth rate of costs exceeding revenues contributes to the declining operating position. Additionally, the unassigned fund balance continues to be utilized for capital projects over the forecast period. This forecast is impacted from inflation impacts and a slowdown of growth in certain revenue categories, including sales tax. A recommendation to seek revenue opportunities is included in the forecast to address costs and the creation of revenue to fund longer term capital items, such as Sand Replenishment and costs absorbed by the General Fund previously funded by the Redevelopment Agency and the Clean Ocean fee.
The Reserve section includes the assessment of reserve levels for Operational, Capital/Infrastructure, and Emergency Reserves. Most reserves are funded, however recommendations are made for transfers to address long-term funding of various areas.
Contributions are recommended for the Facilities Maintenance Reserve, Park Asset Reserve, and Accrued Leave reserve. These are recommended based on anticipated capital needs and to address pay rate increases and the associated accrued leave liability. Sewer rates were adopted allowing some funds to be moved from Operating Fund to the Depreciation Reserve. Storm Drain rates need modification or an alternative funding source, such as the Clean Ocean fee, to address capital and operating needs due to the original fee implemented in 1994 not being adjusted.
The Fiscal Policy section includes a review of financial policies by major category. This is an opportunity for staff to address changes or propose policy related items. No recommendations are made at this time to adjust fiscal policy.
Recommendations are summarized in the following section for Council to provide direction. 17 17
Long Term Financial Plan
LTFP RECOMMENDATIONS
TRENDS
No recommendations
FORECAST
Direct staff to explore revenue sources to replace lost revenues from the dissolution of the Redevelopment Agency and the expiration of the Clean Ocean fee to maintain existing service levels and to fund new programs and capital projects.
RESERVE
o Transfer an amount of $400,000 from the General Fund to the Facilities Maintenance Reserve in FY 2024-25 and FY 2025-26.
o Transfer a one-time amount of $100,000 from the General Fund to the Park Asset Reserve in FY 2024-25.
o Transfer an annual amount of $300,000 from the Sewer Operating Fund in FY 2024-25 and FY 2025-26 to fund sewer asset replacement in the Sewer Depreciation Reserve. o Prioritize capital projects until the implementation of a Clean Ocean measure or long-term alternative funding is available for storm drains.
o Transfer a one-time amount of $200,000 from the General Fund to the Accrued Leave Reserve in FY 2024-25.
FISCAL POLICY
No recommendations
18 18
Financial Trend Analysis
Objective
A number of financial indicators are analyzed utilizing the International City Management Association’s (ICMA) guidelines contained in “Evaluating Financial Condition”. The analysis of these indicators is designed to present information on the fiscal health of the City of San Clemente as part of the Long Term Financial Plan. This annual Financial Trend Analysis focuses on the City's General Fund.
Background
The City’s financial trends are analyzed annually with many factors considered to understand the financial condition of the City of San Clemente. These factors include:
The economic condition of the City and the surrounding region; Types and amounts of revenues and whether they are sufficient, and the right mix, to support the population as it changes;
Expenditure levels and whether these expenditures are sufficient to provide the desired level of services as the City changes;
Fund balances and debt levels and their impact upon City financial resources.
This report examines these issues and others in determining the financial condition of the City of San Clemente. The City’s adopted fiscal policies have been considered in connection with this analysis.
Data used in developing this financial trend report was drawn from the City’s Comprehensive Annual Financial Reports for FY 2018-19 through FY 2022-23. Consequently, all trends are based on data available as of June 30, 2023 and do not incorporate any changes that have occurred since that time.
Executive Summary
The financial trends that follow provide City Council and Administration with insight into the overall financial position of the City by analyzing the City’s General Fund. This analysis makes it possible to identify specific areas where new policies should be implemented or existing ones revised. The 22 trends have been categorized into five basic categories:
1) Revenues
2) Expenditures
3) Operating Position
4) Debt/Unfunded Liability
5) Community Indicators
19 19
Financial Trend Analysis
One of the following ratings has been assigned to each of the twenty-two indicators:
Favorable (F): This trend is positive with respect to the City's goals, policies, and national criteria.
Favorable (Caution)
(F/C):
This rating indicates that a trend is in compliance with adopted fiscal policies or anticipated results. This indicator may change from a positive rating in the near future.
Warning (W): This rating indicates that a trend has changed from a positive direction and is going in a direction that may have an adverse effect on the City's financial condition. This rating is also used to indicate that, although a trend may appear to be Favorable, it is not yet in conformance with the City’s adopted fiscal policies.
Unfavorable (U): This trend is negative, and there is an immediate need for the City to take corrective action.
A summary of the indicators analyzed and the rating assigned to each is listed below. The past five trend reports are presented and identify strengths and weaknesses of the City’s financial condition and illustrate any positive or negative changes.
LTFP
INDICATORS FY 2024 FY 2023 FY 2022 FY 2021 FY 2020
REVENUE:
Revenue Per Capita F/C F/C F/C F/C F
Property Tax Revenues F F/C F F F
Elastic Revenues F/C F F/C F/C F
Sales Tax Revenues F/C F F F F
Permits & Business License Revenues F/C F/C F/C F/C F/C Comm. Develop. Charges F/C F/C F/C F/C F/C
Intergovernmental Revenues F F F F F
One-Time Revenues F F F F F
Revenue Overage F F F F F
EXPENDITURE:
Expenditures Per Capita F/C F/C F F F
Expenditures by Function F F F F F
Employees Per Capita F F F F F
Fringe Benefits F/C F/C F/C F/C F/C
Capital Outlay F F F F F
OPERATING POSITION:
Operating Surplus (Deficit) F F F/C W F/C
Unrestricted Fund Balance F F F/C F/C F
Liquidity Ratio F F F F F
DEBT/UNFUNDED LIABILITY:
Debt Service F F F F F
Accumulated Comp Absences F F F F F
Pension Unfunded Liability F F F/C W U
COMMUNITY:
Population F/C F/C F F F
Property Values F F/C F F F
20 20
Financial Trend Analysis
Overview of the City’s Financial Condition
The 2024 Long Term Financial Plan includes the analysis of twenty-two trends. Of these 22 trends, 9 are revenue trends, 5 are expenditure trends, 3 relate to operating position, 3 relate to debt service/unfunded liability and 2 relate to the community’s needs and resources. Results are the same as the previous year, as two indicators change from Favorable to Favorable/Caution and two indicators change from Favorable/Caution to Favorable. These changes are due to the large increase in the Consumer Price Index (CPI) or inflation rates and impacts to population over the last five years. This year, eight indicators received a Favorable/Caution rating, and fourteen received a Favorable rating. Information by Category is discussed in the following section.
Rating discussion by Trend Indicator Category
Revenue Category:
Nine trend indicators address revenues. Four of the trends are Favorable, and five are Favorable/Caution. Changes in revenue indicators reflect the City seeing increases in property taxes while sales tax decreased. Property Tax revenues changed from Favorable/Caution to Favorable, Elastic revenues changed from Favorable to Favorable/Caution, and Sales Tax revenues changed from Favorable to Favorable/Caution.
Property tax revenue indicator moved from Favorable/Caution to Favorable because actual property tax revenues increased, and even when taking inflationary costs into consideration (constant dollars), property tax revenue increased from the prior year. Property taxes are a stable revenue source, but as the largest revenue source for the City, property taxes still need to be monitored to ensure changes keep pace with inflation.
Elastic revenues moved from Favorable to Favorable/Caution. Although there have been multiyear increases over the five-year period, the FY 2022-23 percentage decreased from prior year and remains flat compared to the base year. Elastic revenues should be observed more closely as they are highly responsive to economic changes.
Sales tax revenues change from Favorable to Favorable/Caution. A decrease in actual and constant dollars was seen after an increase was seen the prior year. Sales tax growth outpaced inflation in the prior year, so the concern is not a major, but since Sales tax is one of the primary revenues for the city; this indictor needs to be monitored closely due to its sensitive response to economic changes.
Revenues per Capita, Permits/Business License Revenues, and Community Development Charges remain at Favorable/Caution, as these revenues remain relatively flat over the last five years.
Expenditure Indicators:
Five trend indicators address expenditures. Three of the trends are Favorable, and two trends are Favorable/Caution, with no changes from the prior year.
Expenditures Per Capita remains at Favorable/Caution reflecting the decline in population while costs increased from both service level and inflationary changes.
Fringe Benefits remain a Favorable/Caution rating because although fringe benefits, as a 21 21
Financial Trend Analysis
percentage of salaries, decrease from the prior year, this trend needs to be monitored closely as the City starts to realize the effects of the “3-2-1 Pension Funding Strategy”.
Operating Position Indicators:
Three Trend Indicators address operating position. All three trends are Favorable, with no changes from the prior year.
The Operating Surplus (Deficit) remains a Favorable rating. Even though there was a decrease in operating position over the prior year, the City’s still ended in a positive operating position.
During the last year, revenues in property taxes, and interest and rentals increased considerably, while expenditure savings were realized in personnel costs.
Debt/Unfunded Liability Indicators:
Three trend indicators address debt/liabilities. All three of the trends are Favorable, with no changes from the prior year.
Pension Unfunded Liability remains a Favorable rating because although there is a slight decline in funded status over the prior year, this funding decrease does not include all “3-2-1 Pension Funding Strategy” payments.
Community Indicators:
Two Trend Indicators address community factors. While Population stays at a Favorable/Caution rating, Property Values changes from Favorable/Caution to a Favorable rating.
Population remains Favorable/Caution due to decreases over the last three years. A decrease in population can affect revenues over time and shift the cost burden to a smaller population base.
However, some decreases are the result of the 2020 census, which reset the city population base.
Property Values change from Favorable/Caution to Favorable. During the five-year trend period, with the exception of FY 2022, there have been steady increases in property values. The continual increase in property values means that the City will receive a steady increase in property taxes as well.
Conclusion of Trend Analysis
The City saw the majority of increases in property and interest and rental revenue, which was due in part to a strong housing market and an increase to interest rates in the FY 2023. Factors that affected trends this year were the high Consumer Price Index and a slight decline in population, which impact costs and revenues. The City continues to review the budget at the department level and presents updated financial information to City Council.
Analysis and discussion of the future outlook is in the Financial Forecast section. 22 22
Financial Trend Analysis
REVENUE TREND ANALYSIS
Overview of Revenues by Source:
The following is an overview of City revenue by source for FY 2018-19 and FY 2022-23. The following pages provide an analysis of the actual nine revenue trend indicators in detail.
Comparison of Revenues by Source
FY 2018-19 vs. FY 2022-23
(in millions)
The above pie charts compare the current revenue sources amounts to those five years ago.
Analysis of these changes are presented below:
Property taxes during the five-year period increased due to assessed valuation growth and the build-out of the Sea Summit development.
Sales taxes increased due in part to the expansion of the Outlets and the Wayfair decision in FY 2018-19, and inflation increases over the time period. Other taxes increased from $6.4 million to $7.0 million. Although business license tax receipts remained relatively flat and franchise fees decreased by $32,372; transient occupancy tax receipts increased by $712,340 in FY 2022-23 due to increases in travel in FY 2022-23. Service Charges increased from $6.2 million in FY 2018-19 to $7.1 million in FY 2022-23 due to increased ambulance service charges, parking meter permits and fees, and recreation services.
Other revenue decrease of $0.8 million over the five-year period is due mainly to a decrease in other state grants of $1.0 million. The State Routes to Schools grant was in FY 2018-19. Interfund charges decreased from FY 2018-19 to FY 2022-23. The general fund overhead allocation plan increased, however transfers decreased by a greater amount over the fiveyear period due to a reduction in transfers from Public Facilities fund along with the elimination of the Clean Ocean transfer.
Decrease in Interest and Rentals from $3.6 million in FY 2018-19 to $3.1 million in FY 2022- 23 is due mainly to an unrealized loss on investments of $0.1 million in FY 2022-23 as rents and commissions remain fairly flat compared to FY 2018-19.
Property
Tax, $ 34.52
, 49%
Sales Tax, $ 10.60
, 15%
Other Taxes,
$ 6.37 , 9%
Service
Charges, $ 6.20
, 9%
Interfund
Charges , $ 5.32 ,
7%
Interest and
Rentals, $ 3.63 ,
5% Other Revenue,
$ 4.27 , 6%
Revenue by Source - FY 2018-19
Property
Tax, $ 42.37
, 53% Sales Tax, $ 12.61
, 16%
Other Taxes, $ 7.05 ,
9%
Service
Charges, $ 7.08
, 9%
Interfund
Charges , $ 4.46
, 5%
Interest and
Rentals, $ 3.10 ,
4%
Other Revenue,
$ 3.43 , 4%
Revenue by Source - FY 2022-23
23 23
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Revenues Per Capita
Comments:
The first chart (which includes one-time revenues) shows a slight increase from $1,248 to $1,269 in actual dollars and a decrease from $1,090 to $1,081 in constant dollars. Total revenues for Fiscal Year 2022-23 increased by $1.14 million from the prior year. Property taxes, interfund charges, and interest and rentals saw an increase over the prior year, while sales tax, intergovernmental, fines and forfeitures, and other revenue decreased. Revenue categories with the most significant increases include property tax (7%), interfund charges (20%), and interest and rents (113%). Decreases include intergovernmental (-26%), fines and forfeitures (-23%) and other revenue (-88%).
The second chart (which excludes one-time revenues) shows an increase in actual dollars from $1,141 to $1,183 and constant dollars increased from $997 to $1,008. The approach of excluding one-time revenues is a realistic approach since the City only uses one-time revenues for one-time expenditures in accordance with the City’s Fiscal Policy.
Status: FAVORABLE/CAUTION
Although increases are seen in actual dollars, a decrease was seen in constant dollars over the prior period. This trend remains a Favorable/Caution rating, as it remains relatively flat over the 5-year period and reflects revenues are not keeping pace with the result of an increasing Consumer Price Index (CPI) or inflation.
$1,248 $1,269
$1,090 $1,081
$700
$900
$1,100
$1,300
$1,500
2018-19 2019-20 2020-21 2021-22 2022-23
REVENUES PER CAPITA
Operating Revenues Including One-Time Revenues
Actual and FY 2018-2019 Constant Dollars
General Fund
Actual Constant
$1,141 $1,183
$997 $1,008
$700
$900
$1,100
$1,300
$1,500
2018-19 2019-20 2020-21 2021-22 2022-23
REVENUES PER CAPITA
Operating Revenues Excluding One-Time Revenues
Actual and FY 2018-19 Constant Dollars
General Fund
Actual Constant
24 24
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Property Tax Revenues
Comments:
The chart below shows property tax revenues increasing from $39.64 million to $42.37 million or 7% in actual dollars and an increase from $34.63 million to $36.09 million or 4% in constant dollars.
Property taxes have increased over the past year due mainly to the continued growth in assessed values as a result of development and a strong housing market. Property taxes show continued stable growth in actual dollars over the five-year trend period.
Status: FAVORABLE
This indicator changes from Favorable/Caution to Favorable, because actual property tax revenues increased, and even when taking inflationary costs into consideration (constant dollars), property tax revenue increased from the prior year. As property tax is the City’s main source of revenue, the City will still need to monitor this indicator to make sure property taxes keep pace with future inflation.
$42.37
$36.09
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
$38.00
$40.00
$42.00
$44.00
2018-19 2019-20 2020-21 2021-22 2022-23
PROPERTY TAX REVENUES
Including ERAF Amounts
Actual and 2018-19 Constant Dollars
General Fund
Actual Constant In Millions
25 25
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Elastic Revenues (Sales Tax, Transient Occupancy Tax, Permits and Business License Taxes, and Community Development Service Charges) Comments:
Elastic revenues are revenues that are highly responsive to changes in the economy and inflation.
The City has classified Sales Tax, Transient Occupancy Tax, Permits and Business License Tax, and Community Development Service Charges as Elastic revenue, because these revenues are the most sensitive to economic factors.
Elastic revenues decreased by 3.46% from the prior year, and net operating revenues increased by 5.97%; causing Elastic revenues, as a percentage of total revenues, to decrease from 28.95% in FY 2021-22 to 26.37% in FY 2022-23. Certain individual revenue indicators, which comprise the elastic revenues category, are examined further on the following pages.
Status: FAVORABLE/CAUTION
This indicator changes from Favorable to Favorable/Caution. There have been multi-year increases over the five-year period, the FY 2022-23 percentage decreased from the prior year and remains flat compared to the base year. Elastic Revenues should be watched closely as they are highly responsive to the changes in the economy and inflation, such as in the last year.
26.36% 26.37%
10.00%
20.00%
30.00%
40.00%
2018-19 2019-20 2020-21 2021-22 2022-23
ELASTIC REVENUES
As a Percentage of Operating Revenues
General Fund
26 26
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Sales Tax Revenues
Comments:
As summarized in the chart below, sales tax revenues show a decrease of $765,130, or 5.72% in actual dollars over the prior fiscal year. In constant dollars, there was a decrease of $941,470 or
8.06% for FY 2022-23.
Sales tax receipts amount to $12.60 million, compared to $13.37 million in the prior year. This sales tax decrease is mostly the result of lower activity levels, decreasing fuel prices, along with the rise in inflation over the prior year.
The State Sales Tax percentage of 7.75% includes the 1% allocation to the City of San Clemente for sales tax.
Status: FAVORABLE/CAUTION
This indicator changes from Favorable to Favorable/Caution. A decrease in actual dollars and constant dollars was seen after an increase was seen the prior year. Sales tax growth outpaced inflation in the prior year, so the concern is not a major one but since Sales tax is one of the primary revenues for the city; this indictor needs to be monitored closely due to it being an elastic revenue.
1 $12.60
$10.74
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
$11.00
$12.00
$13.00
$14.00
2018-19 2019-20 2020-21 2021-22 2022-23
SALES TAX REVENUES
Actual and 2018-19 Constant Dollars
General Fund
Actual Constant In Millions
27 27
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Permits & Business License Revenues
Comments:
Permits and Business License Tax revenues increase in actual dollars in the amount of $135,290 or 4.69% from the prior fiscal year. The constant dollar increase was $52,790 or 1.98% from FY 2021-22.
Construction permit revenue stayed relatively static with an increase of $27,200 or 2.09% over the past year, which coincides with the slight increase in construction activity. Business license tax revenue also increased $101,600 or 8.95% in FY 2022-23 as a result of changeover of businesses within the city along with more monitoring of the license process. Non-business licenses and permits remain relatively flat over the prior year. 13B
Status: FAVORABLE/CAUTION
Permits and Business License Tax maintains a Favorable/Caution rating, due to a slight increase from the prior year revenue. The increases from prior year could still be associated with effects of the pandemic, so these revenues will need to continue to be monitored. $3.02
$2.57
$-
$1.00
$2.00
$3.00
$4.00
$5.00
2018-19 2019-20 2020-21 2021-22 2022-23
PERMITS & BUSINESS LICENSE TAX REVENUES
Actual and 2018-19 Constant Dollars
General Fund
Actual Constant In Millions
28 28
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Community Development Service Charges Revenues Comments:
Total community development service charges increased by $53,890 or 4.53% from the prior year. This increase aligns with the total general government service charges increase of $146,800 due to a significant increase in general plan update fees and single-family residence check fees, while construction inspection fees decreased by $102,200.
Status: FAVORABLE/CAUTION
This trend remains a Favorable/Caution rating due to the slight rebound from the prior year. Over the five-year period, these changes have remained relatively flat. The city continues to monitor these revenue sources, mainly consisting of business and permit fees, as they are highly responsive to changes in the economy and inflation.
$1.24
$1.06
$0.00
$1.00
$2.00
$3.00
2018-19 2019-20 2020-21 2021-22 2022-23
COMMUNITY DEVELOPMENT SERVICE CHARGES
Actual and 2018-19 Constant Dollars
General Fund
Actual Constant In Millions
29 29
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Intergovernmental Revenues
Comments:
General Fund Intergovernmental revenues, as a percentage of operating revenues decreased to
1.13% in FY 2022-23. Intergovernmental revenues decreased from $1.2 million in FY 2021-22 to $906,700 or -26.47% in FY 2022-23. Although County and other governmental grant revenues decreased, State grants increased due to an increase in mandated cost reimbursements in FY 2022-23. By analyzing intergovernmental revenues as a percentage of operating revenues, the City can determine the extent of its dependence upon resources from other governments.
Excessive dependence on this type of revenue can be detrimental to the financial health of the City, as the factors controlling their distribution may be beyond the City’s control.
Status: FAVORABLE
This trend remains Favorable since the City receives a low percentage of revenues from other governmental agencies and placed COVID relief amounts in a separate fund to limit ongoing impacts or costs being charged to the General Fund. When considering in-lieu property taxes totaling $8.4 million, the intergovernmental percentage would be 11.6%, which still supports the Favorable rating.
2.52%
1.13%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2018-19 2019-20 2020-21 2021-22 2022-23
INTERGOVERNMENTAL REVENUES
As a Percentage of Operating Revenues
General Fund
30 30
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: One-Time Revenues
Comments:
One-time revenues, as a percentage of total General Fund revenues, equaled 3.37% in FY 2022- 23, a slight decrease over the prior year.
One-time revenues increased by $77,258, or 3.0% from the prior fiscal year. FY 2022-23 onetime revenues of $2.6 million include, $560,610 of grant funds, $209,760 from miscellaneous reimbursements, transfer of $1.8 million from the Disaster Relief fund, and $3,893 from gain on disposal of fixed assets. In accordance with the City’s Fiscal Policy, one-time revenues are not utilized to fund ongoing operating expenditures.
Status: FAVORABLE
This indicator remains Favorable, due to the City not utilizing one-time revenues to fund ongoing operating expenditures. The City is not dependent on one-time revenues to fund operating costs.
5.08%
3.37%
0.00%
4.00%
8.00%
2018-19 2019-20 2020-21 2021-22 2022-23
ONE-TIME REVENUES
As a Percentage of Operating Revenues
General Fund
31 31
Financial Trend Analysis
REVENUE TREND ANALYSIS
Indicator: Revenues over Budget
Comments:
Actual revenues were higher than the adjusted budget by $1.5 million for FY 2022-23 and ends with a positive revenue position of 1.96%. The City experienced revenue overages in taxes of $1.4 million, licenses and permits of $0.6 million, charges for services of $0.7 million, and other revenues of $119,944. The City has also experienced shortages in intergovernmental ($0.6 million), Investment and rentals ($236,779), fines and forfeitures of ($37,298), and transfers in ($0.5 million).
This trend began the five-year analysis with an almost neutral revenue position of 0.83% and ended FY 2022-23 at a positive increase of 1.96%. To accurately forecast revenues, the City monitors revenues through the annual budget and long-term financial planning processes. The City continues to budget and receive revenues within the expected 5% range.
Status: FAVORABLE
The City ended this five-year trend in a positive revenue position, within the 5% expected range; therefore, this trend remains a Favorable rating.
0.83% 1.96%
-5.00%
0.00%
5.00%
10.00%
2018-19 2019-20 2020-21 2021-22 2022-23
REVENUES OVER BUDGET
As a Percentage of Operating Revenues
General Fund
32 32
Financial Trend Analysis
EXPENDITURES TREND ANALYSIS
Overview of Expenditures by Function and Category:
The following is an overview of the expenditures by function and category for fiscal years 2018- 19 and 2022-23. Following this overview are the actual five trend expenditure indicators.
The table below compares the FY 2018-19 General Fund expenditures by function to FY 2022-23.
Increases are seen in Public Safety, Community Development, Public Works, and Beaches, Parks, and Recreation, with a decrease in General Government.
Comparison of Expenditures by Function
FY 2018-19 vs FY 2022-23
Expenditure Function FY 2018-19 FY 2022-23 Difference % Change General Government $17,110,849 $13,100,327 -4,010,522 -23% Public Safety 27,645,463 37,121,783 9,476,320 34%
Community Dev. 5,291,196 6,166,743 875,547 17%
Public Works 15,426,334 18,070,409 2,644,075 17%
Beaches, Parks & Rec 4,856,326 5,559,441 703,115 14%
Total Expenditures $70,330,168 $80,018,703 $9,688,535 14% The largest dollar increases were in Public Safety and Public Works. The following bullet points discuss these categories in more detail:
General Government decreased by $4.0 million or -23%. General Government decreased over the five-year period due to a one-time transfer of $2.9 million from the General fund to Facilities Maintenance fund and one-time unfunded liability payment of $1.0 million in FY 2018-19.
Public Safety increased by $9.5 million or 34% due to increases in the contract costs for both police and fire services over the five-year period. This change also includes the increase of the 4th firefighter/paramedic, higher ambulance service levels, payments to the CalPERS liability and increases in Marine Safety services. Community Development increased by $0.9 million, or 17% due to increases in salaries and benefits costs over the five-year period and the addition of Park Rangers to the Code Enforcement department in FY 2020-21.
Public Works increased by $2.6 million or 17%. Although capital project costs decreased over the five-year period due to the completion of street improvement projects, contractual services increased due to maintenance contracts, cost of utilities, and personnel costs.
Beaches, Parks, and Recreation increased by $0.7 million or 14% over the five-year period due to increases in utility expenses, contractual services, and contract class instructor costs.
33 33
Financial Trend Analysis
The following table compares expenditures by category and shows increases in personnel, supplies, contractual services, and other charges, and decreases in capital outlay, and interfund payment expenditure categories between FY 2018-19 and FY 2022-23.
Comparison of Expenditures by Category
FY 2018-19 vs FY 2022-23
Expenditure Category FY 2018-19 FY 2022-23 Difference % Change Personnel $17,396,532 $18,175,764 779,232 4%
Supplies 988,254 1,333,539 345,285 35%
Contractual Services 36,016,692 44,407,635 8,390,942 23% Other Charges 2,704,948 5,908,190 3,203,243 118%
Capital Outlay 4,220,621 2,481,080 -1,739,541 -41%
Interfund Payments 9,003,121 7,712,495 -1,290,626 -14%
Total Expenditures $70,330,168 $80,018,703 $9,688,535 14% The largest dollar increases were in contractual services and other charges. Information on the changes follow:
Contractual Services increased by 23% or $8.4 million from FY 2018-19 to FY 2022-23 reflecting significant increases in contractual services for Police ($5.3 million) and Fire ($4.1 million) from FY 2018-19 to FY 2022-23.
Other Charges increased by 118% or $3.2 million due to higher payments on the unfunded police and fire public safety pension liability payment ($3.3 million) in FY 2022-23. Personnel (salary and benefits) increased 4% over the five-year period. The 4% increase is mainly a result of retirement costs in FY 2022-23, including a one-time paydown of the pension liability. Personnel and benefit costs were mitigated by controlling position growth (FTE’s) and position reassessments due to vacancies.
Other changes reflect the following:
Capital Outlay decreased $1.74 million or 41% from FY 2018-19 to FY 2022-23, reflecting the decrease in improvements other than buildings during the five-year period.
Improvements other than buildings decreased over the five-year period as capital activity was reduced due to the pandemic. FY 2018-19 projects included sidewalk projects, major street maintenance, Vista Bahia Park Restroom rehabilitation, Shorecliffs Safe Route to Schools, 910 Calle Negocio Remodel, and the Pier Structural Construction projects. Interfund payments decreased by $1.3 million or 14% due mainly to a one-time transfer of $2.9 million to Facilities Maintenance fund in FY 2018-19 to provide funds for longterm projects that was approved by the FY 2017-18 LTFP. 34 34
Financial Trend Analysis
EXPENDITURES TREND ANALYSIS
Indicator: Expenditures Per Capita
Comments:
The first chart, which includes one-time expenditures, shows an increase from $1,178 to $1,265 in per capita actual dollars and an increase from $1,030 to $1,078 in per capita constant dollars.
Actual dollars increased by $5.3 million and constant dollars increased by $2.9 million when compared to FY 2021-22. The increase in actual dollars was mainly in Community Development ($359,350), Public Safety ($1.6 million), Public Works ($1.7 million), and City General ($1.5 million). The increase in Public Safety is due to an increase in Police and Fire contracts and ambulance and marine safety contractual services in FY 2022-23. Public works increases are mostly the result of increases to contracted custodial services and other contractual services, as well as the Casa Romantica Stabilization project and shoreline feasibility study in FY 2022-23.
The second chart (which excludes one-time expenditures) shows an increase in actual dollars from $1,122 to $1,172 and an increase in constant dollars from $980 to $998. One-time expenditures include one-time transfers to Facilities Maintenance ($400,000), Accrued Leave ($100,000), and Clean Ocean fund ($1.0 million). Other one-time funds of $1.3 million include funds for Shoreline Feasibility study, Steed Park Pickleball Courts, and T-Street Overpass rehabilitation along with a one-time pension payment of $3.1 million.
Status: FAVORABLE/CAUTION
This trend remains a Favorable/Caution as population has declined while costs have been impacted from both service level and inflationary changes. Expenditures per capita (including one-time expenditures) reflect increases when analyzing actual and constant dollars over the prior fiscal year.
$1,178 $1,265
$1,030 $1,078
$700
$900
$1,100
$1,300
$1,500
2018-19 2019-20 2020-21 2021-22 2022-23
EXPENDITURES PER CAPITA
Operating Expenditures Including One-time Expenditures
Actual and 2018-19 Contant Dollars General Fund
Actual Constant
$1,122 $1,172
$980 $998
$700
$900
$1,100
$1,300
$1,500
2018-19 2019-20 2020-21 2021-22 2022-23
EXPENDITURES PER CAPITA
Operating Expenditures Excluding One-time Expenditures
Actual and 2018-19 Contant Dollars General Fund
Actual Constant
35 35
Financial Trend Analysis
EXPENDITURES TREND ANALYSIS
Indicator: Expenditures by Function
Comments:
Expenditures by function, as a percentage of the total General Fund expenditures (excluding debt service, interfund transfers, and capital outlay) shows that General Government costs decreased, while the other functional expenditures have increased, the percentage of total General fund expenditures have remained fairly stable over the five-year period. The chart below indicates that the largest percent fluctuations are in General Government (-3%), Public Safety (2%).
When looking at the table, General Government decreased from $10.1 million or 17% in FY 2018- 19 to $9.6 million or 14% in FY 2022-23. In actual dollars, General Government decreased by $0.5 million. Public Safety increased from $27.6 million or 45% in FY 2018-19 to $33.7 million or 48% of total operating expenditures in FY 2022-23 and Public Works increased from $13.0 million or 21% to $15.7 million or 22%. Beaches, Parks and Recreation and Community Development remained at 8% and 9% of total operating expenditures in both years respectively.
Comparison of Expenditures by Function
(Excluding debt service, interfund transfers, and capital outlay) FY 2018-19 vs. FY 2022-23
Expenditure Function FY 2018-19 % of Total
2018-19 FY 2022-23 % of Total 2021-22
Total
Change
General Government 10,075,344 17% 9,607,471 14% -3%
Public Safety 27,562,863 45% 33,749,579 48% 2%
Public Works 13,025,799 21% 15,714,579 22% 1%
Community Dev. 5,291,196 9% 6,166,743 9% 0%
Beaches, Parks & Rec 4,856,326 8% 5,559,441 8% 0%
Total Expenditures $60,811,528 100% $70,797,814 100%
Based on this analysis, no single department is requesting significantly more resources, which would cause it to be unsustainable from a functional perspective.
Status: FAVORABLE
This trend remains a Favorable rating when comparing the percentage of total expenditures change from FY 2018-19 to FY 2022-23. Although there has been a small shifting from General Government to Public Safety, there is no single department using significantly more resources from a functional perspective.
36 36
Financial Trend Analysis
EXPENDITURES TREND ANALYSIS
Indicator: Employees per Capita
Comments:
Employees per capita have remained relatively stable over the last five years. This trend provides a perspective of how the City’s workforce is in relation to population changes. This trend only includes general operations staff, which does not include the City’s utilities staff or contracted police, fire, animal control and fleet employees. On a per capita basis general operations staff have remained essentially flat over the five-year period.
Status: FAVORABLE
This indicator is awarded a favorable rating as growth in Full Time Equivalents (FTE’s) have remained consistent with population. This trend will be closely monitored to ensure the City’s ability to support current and future service levels.
0.00201 0.00208
0.0010
0.0020
0.0030
2018-19 2019-20 2020-21 2021-22 2022-23
EMPLOYEES PER CAPITA
General Fund
37 37
Financial Trend Analysis
EXPENDITURES TREND ANALYSIS
Indicator: Fringe Benefits
Comments:
Fringe benefits (including social security benefits), as a percentage of General Fund salaries and wages, decreased from 62.3% to 50.4%. Fringe benefits (excluding social security benefits) show a corresponding decrease when compared to FY 2021-22. The actual amounts of General Fund benefits decreased from $7.0 million in FY 2021-22 to $6.1 million in FY 2022-23 or a 13.33% decrease from the prior year. General Fund salary and wages increased from $11.3 million in FY 2021-22 to $12.0 million in FY 2022-23 or a 7.20% increase from the prior year.
Decreases to Fringe benefits is due mainly to a rebound of increased pension unfunded liability payments from the prior year, based on the 3-2-1 plan.
Employees are now contributing the full 7% employee contribution rate to the CalPERS plan.
Status: FAVORABLE/CAUTION
This trend remains a Favorable/Caution rating as the City continues to make payments on the unfunded pension liability. This trend continues to be monitored for a lowering fringe benefit percentage as the pension liability lowers in future years after the full impacts of the “3-2-1 Pension Funding Strategy” are realized.
50.37%
39.29%
44.42% 45.20%
47.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
2018-19 2019-20 2020-21 2021-22 2022-23
Fringe Benefits
As a Percentage of Salaries and Wages
General Fund
Total Fringe Benefit Percentage
Fringe Benefit Percentage, excluding Social Security Benefit Fringe Benefit Percentage, Excluding one- time paydown of pension fund 38 38
Financial Trend Analysis
EXPENDITURES TREND ANALYSIS
Indicator: Capital Outlay
Comments:
The Capital Equipment Replacement Reserve was established in FY 1994-95. This reserve fund ensures that obsolete and worn equipment is replaced in accordance with the City’s preventive maintenance program.
Capital outlay expenditures increased by $494,780 or 24.9%, from FY 2021-22. Capital outlay expenditures totaled $2.5 million.
Spending on capital outlay increased mainly due to an increase in projects including Steed Park Pickleball Courts, Shoreline Feasibility Study and T-Street Overpass Rehabilitation in FY 2022-23.
Status: FAVORABLE
This indicator remains Favorable, due to the increase over the last fiscal year. This indicates that capital outlay spending is no longer being deferred after four years of decline in capital spending over the five-year trend period.
6.00%
3.10%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2018-19 2019-20 2020-21 2021-22 2022-23
CAPITAL OUTLAY
As a Percentage of Operating Expenditures
General Fund
39 39
Financial Trend Analysis
OPERATING POSITION TREND ANALYSIS
Indicator: Operating Surplus (Deficit)
Comments:
Fiscal year 2022-23 ended with a positive operating position (surplus). An operating deficit occurs when expenditures exceed revenues. Conversely when revenues exceed expenditures there is an operating surplus.
Revenues used to calculate the operating position do not include one-time transfers and revenues of $2.6 million, which includes $552,090 of grant revenue, $213,650 in miscellaneous one-time revenues, $1.8 million in transfers. Expenditures used to calculate the operating position do not include one-time transfers and expenditures of $5.9 million, which includes $400,000 in transfers from the general fund to the facilities maintenance, $1.0 million in transfers to clean ocean, $708,260 in the shoreline study and $3.1 million in one-time pension payments.
The total operating position was positive $0.7 million in FY 2022-23, compared to a positive $4.1 million in FY 2021-22.
Status: FAVORABLE
Although this trend shows a significant decrease in operating position from the prior year’s surplus, it is still positive. The City will still take precautionary measures during the FY 2025 and 2026 budget to watch for any revenue overage or increase in spending. $67.3
$75.2 $74.8
$64.3
$71.1
$74.1
$50.0
$60.0
$70.0
$80.0
$90.0
2018-19 2019-20 2020-21 2021-22 2022-23
OPERATING POSITION
Revenues vs Expenditures
General Fund
Revenues Expenditures In Millions
4.5%
1.2%
-1.0%
1.0%
3.0%
5.0%
7.0%
2018-19 2019-20 2020-21 2021-22 2022-23
OPERATING SURPLUS (DEFICIT)
As a Percentage of Operating Revenues
General Fund
40 40
Financial Trend Analysis
OPERATING POSITION TREND ANALYSIS
Indicator: Unrestricted Fund Balance
Comments:
Unrestricted fund balance refers to those dollars available for use in the event of a financial emergency, short-term revenue fluctuations or an economic downturn. The city budgets each year at a surplus to ensure the maintenance of adequate reserve levels.
Unrestricted fund balance excluding long-term receivable reserves stayed relatively stable with a slight increase of 1.28% in FY 2022-23 from $30.3 million to $30.7 million. Even though unrestricted fund balance increased in FY 2022-23, it is not at levels prior to the pandemic. The total FY 2022-23 unrestricted fund balances of $30.7 million is comprised of $15.0 million for emergency reserves, committed amounts for encumbrances of $6.4 million, $5.8 million allocated for FY 2024 one-time costs and $3.5 million that is unassigned.
The LTFP Reserve Analysis discusses the 20% Emergency Reserve in more detail. The Reserve Analysis also discusses General Fund amounts estimated to be $9.7 million at June 30, 2024 for capital equipment, facilities, park asset, and accrued leave in a separate fund that are not included in the $30.7 million shown above.
Status: FAVORABLE
This trend remains a Favorable rating, as unrestricted fund balance has increased over the last four years and the normal build-up of fund balance is moving towards levels experienced prepandemic as a percentage of operating revenues.
40.29% 39.67%
30.00%
40.00%
50.00%
2018-19 2019-20 2020-21 2021-22 2022-23
UNRESTRICTED FUND BALANCE
As a Percentage of Operating Revenues
General Fund
Emergency
Reserve,
$15.0
Budget
Carryover,
$6.4
Future
Budget, $5.8
Unassigned,
$3.5
General Fund Balance at 6/30/2023
Emergency Reserve
Budget Carryover
Future Budget
Unassigned
41 41
•
•
•
•
Financial Trend Analysis
OPERATING POSITION TREND ANALYSIS
Indicator: Liquidity Ratio
Comments:
In FY 2022-23, the City’s liquidity ratio remains positive at 5:1. Credit rating firms consider a ratio of 1:1 Favorable. The City’s 5:1 current asset to current liability ratio is considered excellent.
Liquidity measures the City’s ability to meet short-term obligations. Liquidity is measured by comparing current assets to current liabilities. Current assets include cash, short-term investments, accounts receivable and other assets that can be readily converted to cash. Current liabilities include accounts payable, accrued wages, accrued expenses and all obligations that can be immediately demanded for payment.
Status: FAVORABLE
This trend is favorable due to a ratio of over 1:1 throughout the past five-year period analyzed above.
4.7 4.4 4.4 4.6 5.0
0.0 1.0
2.0 3.0
4.0 5.0
6.0 7.0
2018-19 2019-20 2020-21 2021-22 2022-23
LIQUIDITY RATIO
Current Assets to Current Liabilities
General Fund
42 42
--l --------1 --------1 -------1 ------- ------
Financial Trend Analysis
DEBT SERVICE/UNFUNDED LIABILITY TREND ANALYSIS
Indicator: Debt Service
Comments:
The City does not include debt service payments in the General fund. Debt service for the City’s capital equipment leases are accounted for in separate funds and are not part of this analysis.
Status: FAVORABLE
General Fund debt service receives a Favorable rating, as it has remained immaterial (less than 1%) in comparison to total revenues over the last nineteen years. Credit rating firms generally view debt service as Unfavorable if debt service payments exceed 20% of net operating revenues.
0.00%
0.10%
0.20%
0.30%
2017-18 2018-19 2019-20 2020-21 2021-22
DEBT SERVICE
As a Percentage of Operating Revenues
General Fund
0.0%
43 43
Financial Trend Analysis
DEBT SERVICE/UNFUNDED LIABILITY TREND ANALYSIS
Indicator: Accumulated Compensated Absences
Comments:
At June 30, 2023, the compensated absences liability was $1.58 million consisting of $1.0 million for vacation, $0.4 million for sick leave, and $52,907 for compensatory time for all funds. This is a decrease of $46,139 or 2.83% from the prior year’s liability of $1.6 million.
The Accrued Leave Reserve was established to pay accrued employee benefits for General Fund employees who terminate during the year. As of June 30, 2023, the Accrued Leave Reserve balance was $0.9 million.
Status: FAVORABLE
This indicator receives a Favorable rating, consistent with the prior year and a general decrease with Reserves set aside for the liability.
$1.77 $1.58
$1.35
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2018-19 2019-20 2020-21 2021-22 2022-23
ACCUMULATED COMPENSATED ABSENCES
Actual and 2018-19 Constant Dollars
General Fund
Actual Constant In Millions
44 44
Financial Trend Analysis
DEBT SERVICE/UNFUNDED LIABILITY TREND ANALYSIS
Indicator: Pension Unfunded Liability
Comments:
The City has pension plans which cover different employee groups and are funded at various levels. California Public Employees’ Retirement System (CalPERS) plan includes safety-lifeguards, safety-inactive and miscellaneous employees. The CSCERP plan includes past city retirees and inactive and Coastal Animal Service Authority (CASA) employees.
This trend shows past funding levels and the changes over the last five years. The City started making additional contributions in FY 2019-20, and in FY 2022-23 made additional contributions of $3,150,000 toward the CalPERS plans and $52,100 toward the CSCERP plan. The increase in funding status is the result of additional payments toward the unfunded liability.
The chart below shows the Funded Status for five-years ending June 30, 2023 (with information based on prior year’s actuarial valuation). The lowest funded plan is CSCERP at 57.15% and the highest funded is safety-lifeguards at 84.10%. The fiscal policy target is 90%.
Status: FAVORABLE
This indicator remains Favorable because although we start to see a slight decline in funded status over the prior year, this funding decrease does not reflect the full impacts of the “3-2-1 Pension Funding Strategy” payments. Additionally, the 71% funding level is still an improvement over the 5-year timeline, with the 76% reflecting the substantial investment returns by CalPERS.
A gradual increase over time is a favorable indicator.
70% 68% 71%
76%
71%
50%
60%
70%
80%
90%
100%
2018-19 2019-20 2020-21 2021-22 2022-23
Funded Status (%) Pension Liabilities
FY 2018-19 to FY 2022-23
45 45
Financial Trend Analysis
COMMUNITY TREND ANALYSIS
Indicator: Population
Comments:
The City’s population has decreased by 0.23% over the prior fiscal year. The exact relationship between population changes and other economic and demographic factors is uncertain.
However, a sudden increase in population can create immediate pressures for new capital expenditures and higher levels of service. Increased population generates increased expenditures over time such as public safety (i.e. additional fire stations, increased police, etc.).
Conversely, a rapid decline in population allows for a smaller tax base for spreading City costs that cannot be immediately reduced.
A Census is completed every ten years. A census was completed during calendar year 2020. The data used by the City between Census updates are based on numbers from the California Department of Finance and estimates of growth from the Planning department. As the City nears build-out, the fiscal years 2018-19 through 2022-23 show a stabilization in the population rate.
Status: FAVORABLE/CAUTION
This indicator remains a Favorable/Caution rating due to a decrease over the last three years. A decrease in population can affect revenues over time and increase cost burden over a smaller population base.
64,541
63,237
60,000
65,000
70,000
2018-19 2019-20 2020-21 2021-22 2022-23
POPULATION
City of San Clemente
46 46
Financial Trend Analysis
COMMUNITY TREND ANALYSIS
Indicator: Property Values
Comments:
The growth rate in property values as a percentage from the previous year in actual dollars was 6%, or $1,289 million. This is an increase of 4%, or $679 million in constant dollars, as inflation grew at a slower pace than property values over the last year.
Property values exhibited a positive-growth rate in FY 2022-23. Personal property in California is subject to a basic levy equal to one percent of the assessed value. The property tax share can fluctuate between cities within a county. The City of San Clemente receives $0.154 of each property tax dollar collected within the City.
Please see Attachment ”A” graph that shows the distribution of the total property tax levy for each property tax dollar paid for the City and the ten year assessed value history. 9B
Status: FAVORABLE
This indicator changes from a Favorable/Caution to a Favorable rating. During the five-year trend period, with the exception of FY 2022, there have been steady increases in property values. The continual increase in property values means that City will receive a steady increase in property taxes as well.
$20.62
$17.57
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
2018-19 2019-20 2020-21 2021-22 2022-23
PROPERTY VALUES
Actual and 2018-19 Constant Dollars
Actual Constant In Billions
47 47
r
:
Financial Trend Analysis
Attachment “A”
The chart above shows the portion each respective government agency receives of the typical Orange County property tax dollar.
The chart above shows the net taxable value of assessed property. 48 48
THE CITY OF SANI C L EMENTE
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NET TAXAB'LE. ASSESSED VALUE HISTORY
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Objective
To update the comprehensive five-year financial forecast for the General Fund, incorporating adopted City fiscal policies, expenditure patterns, revenue trends, fund balances and other known financial impacts and capital projects.
Executive Summary
To strategically address future needs and to ensure the City maintains a positive operating position in the long-term, the City’s five-year forecast focuses on two critical elements, operating position and fund balances, to determine the fiscal health of the City.
City of San Clemente Financial Condition
The five-year financial forecast was last updated with the FY 2024 budget adoption; it showed small operating surplus in all five years of the forecast. Projected operating surplus/(deficits) as part of that budget forecast were:
2024 Budget Forecast (In millions) 2023-24 2024-25 2025-26 2026-27 2027-28 Projected surplus/(deficit) $ 0.1 ($ 0.7) ($ 1.1) ($ 1.1) ($ 1.2) When preparing a balanced FY 2024 budget to City Council, 4 additional deputy positions were included as one-time costs within the budget process.
The 2024 LTFP five-year financial forecast reflects strong property taxes growth along with moderate growth in other revenue categories. Revenue growth is below the cost increases, as sales taxes have eased while public safety costs have grown and contract services are impacted by inflation.
The General Fund forecast operating position 2024 Budget forecast reflected higher costs.
However revenues, including property taxes, exceeded expectations leading to a better operating position. Assumptions used in the forecast are discussed later in this report.
The forecast reflects a positive operating position in all years of the forecast but trends downward in later years.
Operating position
Operating Position is the excess of operating revenues over operating expenditures. Operating revenues and expenditures exclude one-time revenue and expenditures. Based on revenue and expenditure trends, the financial forecast indicates a declining operating position in all five years.
These operating positions impact unassigned fund balance and limit resources for one-time uses, including capital projects, reserve transfers, and other one-time activities.
The following table and chart reflect the forecast results, based on the assumptions identified later in the paper:
49 49
Financial Forecast
2024 LTFP Forecast (In millions) 2024-25 2025-26 2026-27 2027-28 2028-29 Operating receipts $ 83.4 $ 86.5 $ 89.5 $ 92.5 $ 95.5
Operating disbursements 82.2 85.4 88.8 91.8 95.0
Projected surplus/(deficit) $ 1.2 $ 1.1 $ 0.7 $ 0.6 $ 0.5 Operating positions are subject to change based on actions taken in the normal course of business and by City Council. These actions can impact revenue activity or modify costs by creating cost differences through making position changes/vacancies and changing service delivery.
Revenues are averaging an annual increase of 3.4% over the forecast period. Property taxes, which represent 55% of all General Fund revenues, are forecast to increase 5.1% from FY 2024 benefiting from a positive real estate environment and development. Sales taxes are projected to increase only 1.5% initially as consumer spending has slowed due to less economic stimulus and lower fuel prices with a 5-year average of 2.4%. General Fund revenues other than property and sales taxes are forecast to increase up to 2%-3% and varies by revenue type.
Operating expenditures are increasing annually by 3.7% a year. The 1st year increase is 3.5%, if onetime costs for the Casa Romantica stabilization project and additional deputies are excluded. The OCSD contract forecast increase is 5%, however this increase is offset by the removal of the onetime addition of 4 deputies so the cost remains flat as the one-time contract deputies are not included in the forecast.
The next largest percentage increases are in other contract services, fire contract, and salary and benefits. Other Contract services of 4% is due to inflation and salary and benefit increase of 4.7%.
These are being impacted by inflation and other service costs. Pension costs increase based on the negative CalPERS investment returns but stabilize over the forecast period. Pension costs are discussed in the trends section of the LTFP and the Assumptions section. Meanwhile, OCFA fire contract costs are projected to increase 4.3% over the forecast period based on the contract cap of 4.5% and the 4th firefighter/paramedic position phase in through FY 2025. $1.2 $1.1
$0.7 $0.6 $0.5
$0.0
$1.0
$2.0
2024-25 2025-26 2026-27 2027-28 2028-29
Projected General Fund Operating Position
In Millions
50 50
I=-~- =~- =- - =- I
Financial Forecast
Fund Balance
Fund balance is the excess of assets over liabilities. The 2024 LTFP Forecast operating position shows positive operating positions; these operating positions help fund the 18% Emergency Reserve as operating costs increase and build General Fund resources (fund balance).
The City’s committed fund balance, approved by City Council action, includes the Emergency Reserve funded at 18% of operating expenditures. Annual contributions to maintain the Emergency Reserves (18% of operating expenditures) are included in the forecast. Unassigned fund balance is available for City Council appropriation without any restrictions. A positive unassigned fund balance represents financial resources available to finance one-time costs.
Committed Fund Balance - One financial goal of the City, as defined in the City’s Fiscal Policy, is to ensure that adequate resources will be available to fund the General Fund’s emergency reserve.
The emergency reserve level is at the required level of 18% of operating expenditures, based on fiscal policies. The Emergency Reserve for FY 2025 is $15.0 million and for FY 2026 is $15.5 million.
A summary of the Emergency Reserves by year is summarized below:
General Fund – Committed Reserves (in millions)
2024-25 2025-26 2026-27 2027-28 2028-29
Emergency Reserve
(18% of Oper. Expenditures) $15.0 $15.5 $16.1 $16.7 $17.3 Unassigned Fund Balance - The General Fund’s unassigned fund balance is projected to be $4.5 million at the end FY 2024. Based on the 2024 LTFP forecast, the following chart below illustrates the projected unassigned fund balance in the General Fund for the next several years, excluding CIP and Reserve Transfers.
The above unassigned fund balance chart reflects annual Emergency Reserve contributions, $1,250,000 each year for recurring maintenance (major street maintenance, slurry seal, sidewalk repair programs, and facility maintenance), but does not assume any spending for one-time capital projects (including infrastructure and IT projects) and one-time reserve transfers.
General Fund unassigned fund balance decreases as one-time CIP (capital and maintenance projects) amounts and one-time reserve transfers are included in the forecast. The following table shows project costs for General Fund capital improvement projects over the next five years available to be funded based on the limitations of fund balance. $4.5 $5.0 $5.5 $5.7 $5.7 $5.6
$0.0
$2.0
$4.0
$6.0
$8.0
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Projected General Fund - Unassigned Fund Balances without CIP/Reserve Transfers In Millions
51 51
Financial Forecast
Capital Projects Funding & Reserve
Transfers (In millions) 2024-25 2025-26 2026-27 2027-28 2028-29 Capital Improvement Projects
(non-ongoing) $ 2.0 $ 2.0 $ 0.0 $ 0.0 $ 0.0
Transfers (one-time) 0.7 0.4 0.4 0.0 0.0
Totals $ 2.7 $ 2.4 $ 0.4 $ 0.0 $ 0.0
As capital projects and reserve transfers are factored into the General Fund unassigned fund balance decreases from $4.5 million to $0.1 million without adequate funding of all anticipated Capital Improvement Projects and Reserve Transfers. The table below presents this reduced funding level for future one-time capital and reserve transfers. Without additional revenues received, the budgeted CIP is reduced the first two years and future projects cease. Additionally, one-time reserve transfers would not be funded the last two forecast years.
The chart shows General Fund unassigned fund balance based on the forecast and the above chart:
The FY 2023-24 budget’s CIP program is reduced as a result of available fund balance. Capital project funding is reviewed annually with the budget process and is dependent on availability of unassigned fund balance and a prioritization of the capital projects. This forecast uses the FY 2023- 24 CIP. The six year CIP plan included Bonito Canyon ballfield lighting, Zero Tower feasibility study, solar canopies, Del Mar Underground district, and Casa Romantica improvements (includes roofing). Not all of these projects have funding availability.
In summary, revenue overages and cost savings are not sufficient to fund ongoing one-time costs in FY 2024-25 as fund balance would become a deficit unassigned fund balance. The gradual reduction in fund balance over the years derives from revenue losses from the Redevelopment Agency dissolution and the expired Clean Ocean assessment. The Redevelopment Agency revenues provided $2.5 million annually for capital projects within the redevelopment area, including the pier, beach trail, and Casa Romantica. The Clean Ocean fee provided $2.4 million annually to protect and improve water quality resulting from urban and storm water discharges. The Clean Ocean fee provided assistance in the funding of regulatory items to ensure continued compliance and projects to promote better water quality. Although the fee was not renewed, continued compliance is still required and partially funded by the General Fund. $4.5
$2.3
$0.5 $0.2 $0.2 $0.1
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
2024 2025 2026 2027 2028 2029
General Fund - Unassigned Fund Balances with CIP and transfers Forecast - Base In Millions
52 52
1==--==-- ==-- -----==----1
Financial Forecast
Summary:
The LTFP’s goal is to inform and assist City Council and management. The forecast and other information is based on approved service levels and existing expectations. The City Council is encouraged to utilize the forecast for guidance during budget review and in their decision making.
The City, due to the limited resources available, may need to adjust services or seek additional revenue to fund capital projects or add new programs. The following items will be considered during budget preparation:
Program resources – The loss of Redevelopment Agency revenues and the Clean Ocean fee have resulted in lower unassigned fund balance and capital reserve balances. Capital activity has no funding source other than those generated from revenue overages and cost savings. Additional revenue for capital activities, including the commitment to Sand Replenishment, or revenue increases to improve the operating position will be important to fund capital and other long-term components funded by unassigned fund balance.
Additionally, a long-term solution to address Clean Ocean and Storm Drain assets must be accomplished.
Police Contract costs – The County of Orange MOU negotiations were completed and include salary increases of 8%, 5%, and 4%, with additional increases for various employee benefits. The one-time addition of four deputies were included in FY 2023-24. Service level changes – City service levels have increased to address citizens’ quality of life.
These activities, when changed, modify or increase future costs and may not be offset by a revenue source. Future service level changes should consider revenue sources to offset the costs of additional impacts.
Economic factors – Inflation is still at relatively high levels with long-term inflation expectations at the 2%-3% range in a couple of years. This inflation has decreased purchasing power and increased contract costs. As contracts conclude, the cost impacts will be phased into operations.
The above items impact the General Fund operating position. Options to address these impacts include: 1) Revenue increases - including a higher level of cost recovery for fee supported activities or through revenue measures or actions or 2) Adjust service level costs or utilize one-time revenues to reduce impacts on the operating position and provide funding resources for additional costs.
RECOMMENDATION
Direct staff to explore revenue sources to replace lost revenues from the dissolution of the Redevelopment Agency and the expiration of the Clean Ocean fee to maintain existing service levels and to fund new programs and capital projects.
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Financial Forecast
Forecast Background and Discussion
Annually, the City prepares a five-year financial forecast with the Long Term Financial Plan (LTFP).
The forecast identifies the City’s projected financial condition to determine the forecasted operating position based on existing level of services. This forecast provides information to City Council related to available resources, fund balance and anticipated results in future years. The financial forecast and the Financial Trend Analysis provide the foundation of the LTFP process and provide information on past history and anticipated results.
The forecast is developed based upon guidelines provided by the Government Finance Officers Association (GFOA). The financial forecast allows the City to determine how spending plans will impact future budgets. This forecast is not the budget. This forecast provides Council preliminary information to assist in their prioritization when the Budget is presented to City Council.
The base forecast is developed using the City’s present level of services. Inflation or historical growth rates are used to predict expenditure patterns. Revenues are projected by inflation, trends, or by specific circumstances that are deemed reasonably likely to occur during the forecast period.
Information regarding economic indicators and the performance of the economy as a whole over the forecast period was taken from the Chapman University Economic and Business Review (December 2023). Forecast information from HdL, Chapman, Cal State Fullerton and other sources are utilized to assist staff with the assumption determinations.
During the Chapman and Cal State Fullerton forecast period, inflation is expected to continue to decline from the higher levels experienced since the pandemic as the Fed moves to curb the growth of inflation by limiting the monetary supply, letting past stimulus work through the system, and allow for supply chain improvements. However, inflation tends to decrease slowly and the decrease is projected to occur over multiple years. A higher rate of inflation of 3-4% is anticipated to ease back to the Federal Reserve target of 2%-3% by the end of the forecast.
In California, population has been decreasing, however this is partially due to limited affordable housing and other impacts. This is anticipated to contribute to lower personal income tax revenues at the state level. Orange County population has decreased similar to the state. Payroll and employment have started to increase but only by about a half percent per year over the last five years within Orange County. There appears to be a labor demand and supply mismatch with a need for high-value-added employees and job creation. Mortgage rates appear to be constraining housing permit activity in the short-term, but is anticipated to improve over time. Consumer spending is anticipated to slow as the pandemic stimulus finishes working through the economy, transitioning to small but stable growth.
Gross Domestic Product (GDP) is anticipated to flatten in 2024 and increase in future years, but growth will be at a lower rate than previously experienced. Overall, the economy is anticipated to continue to grow with the CPI decreasing over the forecast timeframe towards the Federal Reserve’s long-term goal of 2%-3%, which is the normal range. 54 54
Financial Forecast
FORECAST INFORMATION
The forecast is based on the General Fund only. The forecast does not include service level changes or impacts on the General Fund to pay for costs funded in other funds. Examples of cost factors which could affect future results:
Revenues from future development, land sales or other enhancement actions (property tax, sales tax, and transient occupancy tax, and land proceeds) are not included in this forecast. No new or enhanced programs or positions have been included in these forecast amounts.
Costs funded through other funds, such as Clean Ocean costs, costs funded through the other Funds program funded by external grants and other resources, are not included. Only General Fund contributions to these funds are included.
New or enhanced programs have been excluded, including any new positions or restructuring of positions. This would include one-time position funding. No provision has been included for one-time legal costs for new special projects or initiatives.
Other items or actions may improve or diminish the General Fund operating position. The financial forecast is based on known service levels.
The Assumptions section of this report is broken into two sections: Revenues and Expenditures.
These sections, which are included in the last section of this Forecast paper, provide background on the assumptions used in the General Fund forecast. Information is summarized and presented by the City’s major revenue and expenditure line items.
Forecast Results
Based on the economic data and considerations discussed in the Assumptions section of the paper the following forecast outlines the anticipated receipts and disbursements over the next five years for the General Fund. Over the five-year forecast period, the City’s operating revenues are anticipated to grow by an annual average increase of 3.4%, or $3.0 million, a year, while operating expenditures are projected to increase at an average rate of 3.7%, or $3.2 million. This annual disparity creates a deteriorating operating position. These are projections only.
The financial forecast indicates an initial operating position of just over $1.1 million in FY 2025 and decreases during the forecast based on anticipated revenues and expenditures to $453,000.
Forecasted revenue growth in property taxes (4.3%) and sales taxes (2.4%) are not keeping pace with the anticipated increases to expenditures. This is being driven by inflation, which is slowly decreasing, being higher than historical rates impacting contract and salary costs. Additionally, the 2022 negative CalPERS investment returns increased the current year UAL payments.
Revenue changes from anticipated development and service level changes are not incorporated into this forecast. The following table forecasts only existing development and approved service levels. The basic presentation does not include any spending for one-time capital projects or onetime major maintenance projects. The receipts and disbursements are presented by major category. The five-year forecast follows:
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Financial Forecast
GENERAL FUND – OPERATING FORECAST
(in thousands)
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
BEGINNING UNASSIGNED FUND BALANCE $ 4,500 $ 5,039 $ 5,553 $ 5,682 $ 5,731
RECEIPTS
Property Tax 45,686 47,725 49,620 51,595 53,648
Sales Tax 13,345 13,681 14,092 14,444 14,805
Other Taxes 7,351 7,589 7,782 7,944 8,109
Service Charges 7,058 7,287 7,497 7,702 7,895
Other Revenue 9,981 10,265 10,526 10,766 11,011
TOTAL OPERATING RECEIPTS 83,421 86,547 89,517 92,451 95,468 COSTS
Salaries & Benefits 22,656 23,653 24,619 25,441 26,387
Police Contract Services 20,505 21,530 22,607 23,624 24,687 Fire Contract Services 11,785 12,143 12,690 13,261 13,857 Other Contractual Services 15,859 16,413 16,906 17,328 17,675 Other Charges/Supplies 4,473 4,579 4,675 4,759 4,827
Ongoing Maintenance 1,250 1,250 1,250 1,250 1,250
Other Expenditures 5,710 5,881 6,035 6,181 6,332
TOTAL OPERATING COSTS 82,238 85,449 88,782 91,844 95,015 OPERATING POSITION 1,183 1,098 735 606 453
OTHER FUND BALANCE CHANGES
Funding 18% Emergency Reserve (644) (584) (606) (557) (578) ENDING UNASSIGNED FUND BALANCE $ 5,039 $ 5,553 $ 5,682 $ 5,731 $ 5,606 *displayed in thousands
Operating revenues are categorized by Property Tax, Sales Tax, Other Taxes, Service Charges and Other Revenue. Operating revenues are forecasted to increase from $83.4 million to $95.5 million over the forecast period, excluding one-time amounts. Information on the revenue assumptions is discussed in the Assumptions section of this paper.
Operating costs are categorized by salaries and benefits, police contract, fire contract, other contractual, other charges/supplies, ongoing maintenance and other expenditures. Operating costs (expenditures) are forecast to increase $82.2 million to $95.0 million, excluding one-time amounts. Information on the expenditure assumptions is discussed in the Assumptions section of this paper.
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Financial Forecast
FORECAST ASSUMPTIONS - REVENUES
The following table summarizes the changes from year to year based on assumptions. Each revenue is comprised of multiple revenue line items. Further information on each assumption is discussed in the following paragraphs by major revenue category:
Revenue FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Property Tax 5.13% 4.46% 3.97% 3.98% 3.98%
Sales Tax 1.52% 2.52% 3.00% 2.50% 2.50%
Other Taxes 3.27% 3.25% 2.54% 2.74% 2.50%
Service Charges 3.75% 3.24% 2.87% 2.74% 2.50%
Other Revenues 11.8%1 2.76% 2.46% 2.18% 2.18%
1 FY 2024 included one-time transfers to fund the Casa Romantica slope funding.
Property Tax
Property taxes are the City’s single largest revenue source representing 55% of General Fund operating revenues. Property tax projections are based on information provided by HdL, the City’s property tax advisors. Property taxes include secured, unsecured, supplemental assessments, the vehicle license fee swap, property transfer taxes, and penalties and interest. Property tax revenues are projected to increase by an average of 4.3% over the five-year forecast period with increases of 5.1% in FY 2025 with smaller increases in future years eventually to 4% later in the five-year timeframe.
Four factors contribute to year over year assessed valuation changes. First, Proposition 13 allows the County Assessor to increase property valuation by the net change in CPI growth, with a cap of 2% growth per year – FY 2025’s CPI growth factor is anticipated to be the 2% maximum. Second, property valuations increase or decrease annually based on transfer of ownership and the related property values. The number of single-family home transactions decreased by 16%, with the average price increasing about $200,000 to $1.9 million at the calendar yearend. Home values are anticipated to remain stable as interest rates on mortgages have stabilized and demand is constant.
Third, when property values decline, Proposition 8 allows properties to be temporarily reassessed at a lower value by the County Assessor through individual appeals, or through mass appeals if warranted by market conditions. As property values rise, the County Assessor “recaptures” the valuation increases, until reaching the Proposition 13 cap. Finally, assessed valuation grows when new development is completed and new development is added to the property tax base.
According to HdL, property tax growth will average between 4.0% - 5.1% annually over the fiveyear forecast based on growth factors, ownership transfers, Prop 8 recapture, and median home prices. Property transfer taxes and penalties and interest are anticipated to grow at a lower rate than the secured and unsecured property taxes.
Sales Tax
Sales tax included in the forecast is projected to grow based on the total taxable sales growth averaging 2.4% over the five-year forecast. The Chapman analysis forecasts small decreases to taxable sales and HdL forecasting just above 2% next year. The FY 2024-25 increase of 1.5% in the forecast incorporates higher receipts, which is a mix of both forecasts. Sales taxes are projected to 57 57
Financial Forecast
increase over the forecast period by an average of 2.4% over the forecast period as the CPI lowers and growth stabilizes.
Ongoing City sales tax revenues are forecast to increase 1.5% the first year, then increase the next two years, and then stabilize to 2.5% annually. The 2.5% rate is based on the various forecasts and the FY 2024-25 sales tax estimates are within the most recent HdL analysis. This revenue includes gas price impacts, trends, various economic drivers, and the City’s recent developments. Online sales activity is allocated through the County pool. This budget amount will be revised based on further projections provided by the City’s sales tax advisors, HdL.
Other Taxes
Other taxes forecasted include Transient Occupancy Tax (TOT), Franchises, and Business License revenues. These taxes are expected to grow within the 2.0% to 4.5% range based on business activity, franchise fees, energy prices, and development within the City. Franchise revenues are taxes paid primarily through utility providers based on revenues and are anticipated to increase based on energy prices. The CR&R agreement and fee composition will be adjusted in the future, however they have little anticipated impacts to General Fund revenues. Transient occupancy tax revenues are forecast to increase based on last year’s activity due to growth from pandemic lows and changes to consumer spending. The longer-term outlook is for slower TOT amounts as activity stabilizes over the five-year timeframe. No amounts are included to address future development, but hotels/rooms development would increase these revenues. Business license revenues are forecast to increase 2.5%-3.0% based on recent activity and other impacts.
Service Charges
Charges for service include public safety, service charges, parking, public works, recreation and community development service charges. These are estimated to increase generally with CPI/GDP as costs rise, but factors such as population changes, number of transports, number of class participants, services provided, and other factors impact these revenues. These revenues are forecast to increase 2.5%-3.75% annually, with a 3.0% average over the five years.
Other Revenues
Interest, fines, Interfund charges and transfers comprise the other revenue category. Interest revenue increases slightly over the timeframe as the low interest rate environment improves. Fines are anticipated to remain flat. Interfund costs are anticipated to increase between 2.5%-3.0% over the five-years and are to recover General Fund overhead related costs for services provided to other funds. The General Fund cost recovery for services provided to other funds is forecasted at $3.0 million. Transfers are anticipated to decrease initially due to lower gas tax transfers in and then have minor growth over the five years. The base year excludes one-time transfers of $8.8 million to address the use of American Rescue Plan funds and funding for the Casa Romantica slope stabilization. FY 2025 and future years include a 1% factor to address revenue overages for revenue items not anticipated during the budgeting process.
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Financial Forecast
FORECAST ASSUMPTIONS – EXPENDITURES
The following table summarizes changes from year to year based on assumptions. Each expenditure is comprised of multiple line items. Further information on each assumption is discussed in the following paragraphs by major disbursement category:
Disbursement FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Salaries & Benefits 4.67% 4.40% 4.08% 3.34% 3.72%
Police Contract Services 5.0%1 5.00% 5.00% 4.50% 4.50%
Fire Contract Services 4.95% 3.04% 4.50% 4.50% 4.50%
Other Contract Services 4.0%2 3.50% 3.00% 2.50% 2.00%
Other Charges/Supplies 22.1%3 2.35% 2.11% 1.78% 1.43%
Ongoing Maintenance 0.00% 0.00% 0.00% 0.00% 0.00%
Other Expenditures -12.0% 2.11% 1.99% 1.78% 1.77%
1 FY 2024 included one-time cost of the four additional deputies 2 FY 2024 included $8.8 million project for Casa Romantica Land Stabilization. 3 FY 2024 included allocation of 1/3rd of Transient Occupancy Tax for UAL pension allocation.
Salaries & Benefits
The forecast assumes growth in salaries and benefits. In total, salaries and benefits are forecasted to increase from the prior year with annual increases between 3.3% and 4.7% over five years. A Class and Compensation study was completed to address staffing classifications and other agency compensation comparisons. Council approved these adjustments to help recruit and retain employees prior to the existing MOU completion which ends on June 30, 2024. Future salary cost estimates are unavailable. Generally, CPI and Personal Income growth are used as indicators for wage growth, merit increases, medical cost changes, retirement and other benefit amounts. In total, salary and benefits are projected to increase 4% over the five-year period. No vacancy factor is assumed for staffing costs.
Separately, benefits increase 0%-8% during the forecast period varying by year and benefit type.
Medical and retirement costs are the primary cost drivers in benefits. Medical increases forecast to keep pace with anticipated inflation and retirement costs were higher initially due to CalPERS 2022 investment returns but flattened as the UAL is reduced and retirement costs are mitigated as a result of the Public Employees’ Pension Reform Act (PEPRA). Other benefit expenditures include Social Security, Workers Compensation, disability and various other benefits.
Police Contract
Orange County Sheriff’s Department (OCSD) is a high-performing police organization with the County Sheriff’s contract as a less expensive option compared to creating and operating a fullservice city police force. Like most California agencies, public safety costs have increased substantially for multiple reasons.
The County of Orange Sheriff’s contract costs are driven mostly by personnel costs. The previous year’s County union MOU concluded on June 30, 2023. Recently, a new MOU through June 30, 2026 approved by the Board of Supervisors totaled 17% - with increases of 8% in FY 2024, 5% in FY 2025, and 4% in FY 2026. The City’s FY 2023-24 budget included one-time costs for 4 deputies and a budget increase of approximately 7% to addresses the 1st year negotiation cost. The actual 59 59
Financial Forecast
approved MOU increase was 8% implemented in January 2024. Other cost increases include services and supplies, transportation, department overhead, and training will be realized.
In total, the forecasted growth rate starts at 5% and decreases to 4.5% for the later forecast years.
The police contract category shows the OCSD contract amount. Police positions remain at the previous level for the term of the forecast (less last year’s one-time 4 deputies). Any staffing increases would result in higher costs above the forecasted amounts. Body cameras are included, however future implementation costs may occur and are not incorporated.
City paid costs outside of the contract are not included in the contract amount, but are forecast in other categories. These costs include fleet charges, crossing guards, legal services for prosecution, and past police pension costs. The Police Contract Services category only shows the OCSD contract amount. The average increase is 4.5% for all police costs in the forecast. Total FY 2025 police related costs are forecasted at $24.3 million, including the driver license reader annual fees.
Fire Contract Services
Fire Services costs are projected in the forecast to increase by 5.0% over the prior year, with subsequent years between 3%-4.5%. OCFA’s fire contract costs are projected to increase as the City increases amounts for the 4th firefighter position. Annual contract percentages of 3.3% - 4.5% (the contract cap) are anticipated during the forecast period.
This contract includes a maximum cap of 4.5% each year, the highest increase allowed under the contract with the Orange County Fire Authority (OCFA), excluding additional paramedic/firefighter costs. The 20-year fire services contract with OCFA allows for a cap of 4.5% per year to the base service charge, as well as annual contributions to station maintenance and fleet replacement reserves. OCFA’s actual contract increase for FY 2025 will be determined over the next several months through the budget process, but is expected to be in the 4-5% range. The annual average increase for the fire contract services is 4.3% in the forecast period.
The 4th firefighter/paramedic full rotation addition started in FY 2017-18. The last portion of the phased cost paid by the City is in FY 2025. The City’s phased-in share of these costs are included in the forecast, based on OCFA projections. These may vary based on actual costs.
The Fire Contract Services category only shows the OCFA contract amount. Costs paid by the City outside of the contract are not included in this contract amount. These other costs, which include the ambulance contract, are forecast in other categories. Fire and ambulance costs forecasted for FY 2025 total $14.8 million.
Other Contract Services
Contract services are substantial, as this category consists of a wide variety of contracts and services. This category includes maintenance costs, legal services, professional services, animal control, ambulance, utilities, printing, binding, and other various contract services. These are combined and anticipated to increase by inflation levels and other changes. The 1st year increase is 4.0%, excluding the $8.8 million for the Casa Romantica land stabilization project. If included there is a 34% decrease. The forecasted annual increase recognizes expected CPI levels based on forecast and contract considerations.
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Financial Forecast
One of the individual contracts is for the ambulance transport services provider which is in place until June 30, 2027 for two full-time ambulances with annual increases of 2.5% to 4.7%.
Other Charges/Supplies
Other charges/supplies include the CalPERS public safety payment, contract class instructors, street signs, materials, chemicals, special events, postage, tools, dues and subscriptions, and other general operating supplies. Supplies and other charges (excluding the public safety pension) increase 3.75% initially and the annual increase lowers to 1.4% over the forecast period. Some costs may increase more and some less, but generally the amounts should increase around anticipated inflation levels.
The 1st year percentage increase is driven by higher public safety UAL pension payments based on the 2022 CalPERS negative investment return. Future UAL payments are forecast as flat.
On-going Maintenance
The City budgets annually for routine capital maintenance for streets, sidewalks, and facility maintenance costs. The base maintenance project amounts do not include separate one-time projects which are non-routine in nature that are called out distinctly in the Capital Improvement Program budget process. These budgets do not increase annually and include smaller maintenance projects that fit within the scope of the budget.
This base allocation includes funds for street work, slurry seal, sidewalk maintenance and facility maintenance. There is no change to these amounts over the forecast period. A summary of the annual budget allocation by Fiscal Year included in the forecast follows:
Other Expenditures
The City’s other category is comprised mostly of transfers and interdepartmental charges.
Transfers include the following: 1) $500,000 to provide annual funding for the Street improvement Program, 2) an increase to transit (Trolley and SC Rides) funding to $330,000 from $265,000 to fund costs for the Green Line operations, and 3) a $15,000 transfer to assist with Senior Mobility.
Interdepartmental charges consist of charges to recover amounts for specific activities. These include insurance, postage, duplicating, EDMS, IT, communication, fleet, and capital costs. Costs are anticipated to increase annually from 2.5%-3.0%. Also, a 1% cost savings factor is included anticipating salary vacancies and other contract savings from budgeted amounts.
Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Street maintenance $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 550,000 Slurry seal 250,000 250,000 250,000 250,000 250,000
Facilities maintenance 300,000 300,000 300,000 300,000 300,000 Sidewalk maintenance 150,000 150,000 150,000 150,000 150,000 Total $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 61 61
Financial Forecast
Capital Projects
Future capital projects are based on the FY 2024 Capital Improvement Project schedule.
Circumstances and needs may have changed since the last year’s budget was approved. The FY 2024 Capital Improvement Project schedule included the following project costs, however projects will be limited to the available fund balance within the General Fund.
Due to the limitations of fund balance $2.0 million would be able to be spent each year in the twoyear budget cycle on capital projects. A revised prioritization of projects is completed during the budget development process based on available fund balance. Existing projects currently approved by City Council and budgeted may be removed during the budget process, such as the Avenida Victoria sidewalk widening project, and park monument signage. The removal of these non-critical projects would provide funds to complete higher priority one-time projects with more substantial costs in these years. One example of a high priority item is the Pedestrian Audible Warning System.
Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Non-recurring projects $ 9,165,000 $ 3,250,000 $ 4,630,000 $ 280,000 $ 4,331,250 Reduction – due to fund
balance availability (7,165,000) (1,250,000) (4,630,000) (280,000) (4,331,250) Total $ 2,000,000 $ 2,000,000 $ - 0 - $ - 0 - $ - 0 -
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Reserve Analysis
Objective
Analyze and recommend appropriate levels of reserves to (a) ensure that reserves are adequate to provide for the needs of each fund’s program, (b) meet program needs without unnecessarily obligating scarce financial resources and (c) ensure compliance with City fiscal policies and legal requirements by State, County or local ordinances.
Background
Sound accounting and budgeting practices require each fund maintain a positive fund balance with appropriate reserve levels. City reserves are dictated by the City’s fiscal policy and the annual Long Term Financial Plan (LTFP) review. The City’s Fiscal Policy defines the types and criteria for funding levels for each of the City’s reserves based on industry practice, Government Finance Officers Association (GFOA) best practices, and other external consideration.
The General Fund, the primary governmental fund of the City, maintains the Emergency Reserve and a Sustainability Reserve to protect essential services during periods of economic downturn.
An Accrued Leave Reserve exists for the payment of vested leave. The Park Asset, Capital Equipment Replacement, and Facilities Maintenance Capital Asset Reserves comprise amounts for asset maintenance in the Reserve Capital Projects Fund. These reserves are supported by charges and transfers from the General Fund. The General Liability Self-Insurance Fund, Workers’ Compensation Fund, and Fleet Fund are classified as Internal Service Funds. These funds charge other City departments for services they provide and are designed to fully recover the costs of providing the services. These internal service funds should not have excessive fund balances beyond the reserves required and to pay for operating costs.
The Water, Sewer, Golf, Storm Drain, and Solid Waste Funds maintain an emergency reserve per Fiscal Policy similar to the General Fund to protect essential services during periods of economic downturn. In addition, the Water, Sewer, Storm Drain and Golf funds maintain Depreciation Reserves for the maintenance and replacement of assets.
Executive Summary
This year staff has analyzed the reserves and categorized the reserves into three basic categories.
The three basic categories are:
Operational Reserves
Insurance Reserves
Miscellaneous Reserves
Capital/Infrastructure Reserves
Depreciation and Replacement Reserves
Emergency Reserves
The emergency reserves are the foundation of City finances and ensure operations and other capital projects are not diminished by unforeseen events. Capital/Infrastructure reserves ensure that facilities are properly maintained to provide the best service delivery and facilities to citizens. Operational reserves allow for the smoothing of costs so city operations are not affected by a significant cost or loss.
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Operational
Infrastructure
Reserve Analysis
The City, as part of its annual assessment, reviews reserve amounts, future reserve needs, establishes fiscal policy, best practices (including GFOA), and other financial factors. The reserves presentation includes the following elements for each reserve:
Purpose – provides information on the general use and purpose of the reserve Funding – discussion on whether funding is received through charges, contributions, or transfers
Fiscal Policy – this is the City Council adopted fiscal policy in place Discussion/Analysis and Assessment – provides a general discussion on funds required amounts available, and a history of the reserve and related funding Recommendation – Staff’s recommendation based on an analysis of the reserve, its funding, and future requirements.
As part of this year’s assessment, staff’s recommendations strengthen City reserves providing a strong financial foundation for the future. Summary of the review/analysis of the reserves is below by area: Emergency Reserves, Capital/Infrastructure Reserves, and Operational Reserves.
Emergency Reserves for the FY 2023-24 General Fund reflect the General Fund Emergency Reserve funding level at 18% of operating expenditures with no changes recommended to the funding percentage in FY 2024-25. No changes to the Enterprise Emergency Reserves are recommended. However, a prior year recommendation to review rates in the Sewer Fund was completed and new rates were adopted, which will improve the outlook of that fund over time and allow for Emergency and Depreciation Reserves to recover. Additionally, the Storm Drain funding from the Clean Ocean fee for Clean Ocean funded assets is suspended, impacting Storm Drain Emergency reserves. Funding transfers will be reconsidered with any Clean Ocean assessment. The Golf Course adjusted rates and the Emergency Reserve is now funded and internal loan borrowing from Golf Depreciation and Improvement Reserves have been implemented to repay temporarily borrowing to fund Golf operations.
Capital/Infrastructure Reserves provide for the replacement of capital assets, including infrastructure. Multiple capital reserves are properly funded, however several have deficient funding. Short-term capital assets, such as equipment and vehicles, are properly funded, as seen from the Fleet and Capital Equipment Reserves. The replacement of long-term capital assets, such as water, sewer, and storm drain capital assets needs to be addressed as these capital assets are substantially greater in cost. Capital/Infrastructure reserves mitigate direct funding impacts in any one year, building funds over a longer period of time. Capital reserve funding will not be accomplished in one year, but will take deliberate actions in future years.
Water capital asset funding is improving, with asset model contributions to address capital needs.
Sewer and Storm Drain capital reserves are being depleted. A Sewer cost of service study was completed but will take time to improve funding levels and fully recover costs. An annual transfer is recommended to replenish capital reserves after funds were utilized to provide working capital with a goal of building depreciation reserves to fund the aging of the Sewer facility and other infrastructure. The Storm Drain fund has significant capital assets, which will need replacement in the future. The original fee adopted in 1993 has not kept pace with inflation and staff continues to review alternative funding options, such as grant funding, cooperative agreements, and Clean Ocean assistance.
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Reserve Analysis
Operational Reserves are improving. These reserves include Accrued Leave, Debt and Liability Reserves which help reduce short term cost impacts on City operations. The Accrued Leave Reserve is fully funded with a one-time transfer as interest earnings boost reserve levels. The State Revolving Loan Reserve is funded in accordance the State loan agreement and fiscal policy.
Liability reserves are stable and may assist with uncovered claims or other issues in the future.
This analysis aims to improve Emergency Reserves, address capital assets, and strengthen the financial resilience of the City. Further information as to the balances and the funding status is addressed on each individual Reserve analysis sheet.
Reserve Analysis Summary:
Reserves by category, funding source, and June 30 estimated balances are in the following table.
These balances will be used to fund the July 1, 2024 reserve requirements:
Reserves Fund
Estimated
Reserve
Balances at
June 30, 2024 FY 2024 Status
Emergency Reserves:
General Fund Emergency Reserve General Fund $ 14,952,000 Properly Funded Water Operating Water Fund $ 1,528,000 Properly Funded
Sewer Operating Sewer Fund $ 195,000 Not Funded 1
Golf Course Operating Golf Course Fund $ 359,000 Properly Funded Storm Drain Operating Storm Drain Fund $ 116,000 Not Funded 1 Solid Waste Solid Waste Fund $ 35,000 Properly Funded
Capital/Infrastructure Reserves:
Fleet Replacement All Funds $ 3,748,000 Properly Funded Capital Equipment Replacement General Fund $ 1,800,000 Properly Funded Facilities Maintenance General Fund $ 2,125,000 Properly Funded 2 Park Asset Replacement General Fund $ 1,440,000 Properly Funded 2 Water Fund Depreciation Water Fund $ 12,600,000 Partially Funded 3 Sewer Fund Depreciation Sewer Fund $ 2,040,000 Partially Funded 3 Storm Drain Fund Depreciation Storm Drain Fund $ 881,000 Partially Funded 3 Golf Course Fund Depreciation Golf Course Fund $ 3,484,000 Properly Funded Golf Capital Improvement Reserve Golf Course Fund $ 1,191,000 Properly Funded Operational Reserves:
Accrued Leave General Fund $ 625,000 Properly Funded 2
State Revolving Loan Reserve Water Fund $ 900,600 Properly Funded General Liability Self-Insurance All Funds $ 4,728,000 Properly Funded Workers’ Compensation Insurance All Funds $ 1,472,000 Properly Funded 1 These reserves are not properly funded. Rate reviews are recommended to obtain emergency reserve levels. 2 These reserves meet the funding required at June 30, 2024, however based on anticipated future activity onetime transfers are recommended to fund future reserve levels. 3 These reserves are below the funding required at June 30, 2024. Actions, such as asset model funding or transfers, narrow the funding gap to improve the funding level to achieve future compliance. 65 65
Reserve Analysis
Staff will monitor legislative developments to modify Storm Drain fees to meet cost demands placed on the City’s public storm drain system and finalize the Sewer Cost of Service Study to revise Sewer rates. Staff will bring further action to Council to address the Emergency Reserves and long-term capital funding needs as appropriate.
A summary of the recommendations for the next two years based on the analysis by reserve category follows:
Emergency Reserves – No changes are recommended in the funding levels (percentages).
Capital/Infrastructure Reserves
o Transfer an amount of $400,000 from the General Fund to the Facilities Maintenance Reserve in FY 2024-25 and FY 2025-26.
o Transfer a one-time amount of $100,000 from the General Fund to the Park Asset Reserve in FY 2024-25.
o Transfer an annual amount of $300,000 from the Sewer Operating Fund in FY 2024-25 and FY 2025-26 to fund sewer asset replacement in the Sewer Depreciation Reserve. o Prioritize capital projects until the implementation of a Clean Ocean measure or long-term alternative funding is available for storm drains.
Operational Reserves
o Transfer a one-time amount of $200,000 from the General Fund to the Accrued Leave Reserve in FY 2024-25.
66 66
General Fund Emergency Reserve Emergency Reserve Category Purpose: The City emergency reserves are to fund unanticipated costs from unforeseen disasters (fire, flood, earthquake, landslides or other disasters), to provide stability during a significant economic downturn where operating revenues decrease more than 10% and expenditure reductions cannot be achieved, or to offset a one-time loss of a state subvention.
Funding: The General Fund Emergency Reserve is funded through one-time transfers of unassigned fund balance. When this reserve is used, the Finance division will develop a plan as part of the Long Term Financial Plan to replenish the emergency reserve. This replenishment will be done through budgetary action and allocations of one-time resources.
Fiscal Policy: Maintain an emergency reserve equal to 18% of operating expenditures of the General Fund. The primary purpose of this reserve is to provide stability during a significant economic downturn, or to offset a significant one-time loss of revenue. The reserve exists in order to provide short-term funds to protect the City’s essential service programs and funding requirements or to provide unanticipated or emergency expenditures that could not be reasonably foreseen during the preparation of the budget.
Discussion/Analysis and Assessment: The Emergency Reserve provides resources to allow the City to continue operations in the occurrence of any serious conditions. In FY 2016-17, the Emergency Reserve and Sustainability Reserve were combined and the Emergency Reserve funding level was modified from 9% to 20%. The General Fund emergency reserve is a minimum of 18% of operating expenditures, reducing from 20% based on Council action in 2023. This funding level is based on GFOA best practices which recommends emergency reserves equivalent to at least two month’s operating expenditures, or 17%. Funding the reserve at 18% provides for cash flow fluctuations during a particular month and slightly exceeds the GFOA minimum recommendation (17%). In FY 2025, the reserve will increase to $15.0 million based on the forecast.
Recommendation: No changes recommended.
$(5.0)
$-
$5.0
$10.0
$15.0
$20.0
2020 2021 2022 2023 Projected 2024
Millions
General Fund Emergency Reserve
5 Year History of Reserve
Contibutions Emergency Reserve
67 67
-
-
Enterprise Emergency Reserve Emergency Reserve Category Purpose: The City’s enterprise fund emergency reserves are to fund unanticipated costs from unforeseen disasters and to provide a financial buffer to prevent a need to dramatically increase rates based on these unforeseen disasters.
Funding: The Enterprise Emergency Reserves are funded by one-time transfers of unassigned equity. If Emergency Reserves are utilized in an emergency, staff will develop a plan and present the plan in the next Long Term Financial Plan to replenish emergency reserves through rate changes or cost savings over a set timeframe.
Fiscal Policy: The City’s Enterprise Funds will maintain a minimum reserve level at least equal to 12% of operating expenses. The primary purpose of these reserves is to set aside funds to provide for emergency expenses that are unanticipated during the preparation of the budget.
Discussion/Analysis and Assessment: Enterprise operating fund emergency reserves are funded at 12% of operating costs based on GFOA’s best practices. Operating costs exclude capital, transfers, debt, and purchased water. Water, Golf, and Solid Waste Funds 12% emergency reserves are fully funded. The Golf Emergency Reserve is fully funded and internal fund loan repayments to Golf capital reserves have been initiated.
Storm Drain Emergency Reserves are not funded and reserves are being depleted. Clean Ocean transfers that supported contributed storm drain assets were reduced based on the fee expiration. Sewer Emergency Reserves are not funded and Depreciation reserve funds were used to maintain a positive working capital balance. A Sewer rate study was completed and approved to limit the need for depreciation transfers to operating.
The chart above summarizes reserve requirements for each Enterprise Fund emergency reserve to maintain the 12% of operating costs. Emergency reserve level’s are as follows:
Requirement at
June 30, 2023
Requirement at
July 1, 2024
Requirement at
July 1, 2025
Funded - Yes/No
(Amount funded)
Water Fund $ 1,478,000 $ 1,528,000 $ 1,589,000 Yes
Sewer Fund 1,440,000 1,463,000 1,521,000 No ($195,000)
Golf Course Fund 330,000 359,000 374,000 Yes
Storm Drain Fund 200,000 200,000 205,000 No ($116,000)
Solid Waste Fund 35,000 35,000 35,000 Yes
Recommendation: No changes recommended.
$0.0
$0.5
$1.0
$1.5
$2.0
2020 2021 2022 2023 Projected 2024
Millions
Enterprise Emergency Reserves
5 Year History of Reserve
Sewer Water Solid Waste Storm Drain Golf
68 68
z ~ s
Fleet Replacement Reserve Capital/Infrastructure Reserve Category Purpose: Maintain a reserve for costs associated with the replacement of vehicles and other rolling stock (such as trailers, compressors or other equipment on wheels) as they become unserviceable, obsolete or reach a predetermined service life. The reserve will be maintained at a level at least equal to the projected five-year fleet replacement costs.
Funding: The Fleet Replacement Reserve is funded through annual replacement charges to funds that have fleet vehicles and equipment.
Fiscal Policy: Maintain a reserve for costs associated with the replacement of vehicles and other rolling stock (such as trailers, compressors or other equipment on wheels) as they become unserviceable, obsolete or reach a predetermined service life. The reserve will be maintained at a level at least equal to the projected five-year fleet replacement costs.
Discussion/Analysis and Assessment: The reserve is reviewed annually to verify funding is adequate to cover projected replacement costs for the next five years. The City’s fleet replacement value is $8.2 million. The replacements include $6.4 million during the next five years, including a budgeted vactor unit, and $1.8 million for replacement after six years. This reserve is fully funded with a projected balance of $3.8 million at June 30, 2024.
Recommendation: No changes recommended.
$0.0
$2.0
$4.0
$6.0
$8.0
2020 2021 2022 2023 Projected 2024
Millions
Fleet Replacement Reserve
5 Year History of Reserve
Charges Fleet Replacement Reserve
69 69
~
- - - - -
-
Capital Equipment Replacement Reserve Capital/Infrastructure Reserve Category Purpose: The City sets aside funds for the replacement of existing General Fund fixed assets as equipment or machinery becomes unserviceable or obsolete.
Funding: The Capital Equipment Replacement Reserve is funded by capital replacement charges to the City General Fund. These replacement costs are charged over the estimated service life of the asset to the General Fund program that benefits. Funds are also transferred on a one-time contribution basis based on the estimated future activity identified.
Fiscal Policy: Maintain a Capital Equipment Replacement Reserve for the accumulation of funds for the replacement of worn and obsolete equipment other than vehicles. These reserves will be maintained at a level at least equal to the projected five-year capital asset replacement costs.
Discussion/Analysis and Assessment: As General Fund capital equipment is replaced, the capital costs are paid from this reserve. The replacement costs for these assets are charged to the benefiting General Fund program and transferred back to the Capital Equipment Replacement Reserve, thus accumulating funds to pay for future replacement of these assets. The projected fund balance at June 30, 2024 is $1.8 million and the anticipated five-year costs are fully funded.
Recommendation: No changes recommended.
$-
$0.50
$1.00
$1.50
$2.00
$2.50
2020 2021 2022 2023 Projected 2024
Millions
Capital Equipment Reserve
5 Year History of Reserve
Contributions Charges Capital Equipment Reserve
70 70
-------------~
- - -
- -
Facilities Maintenance Reserve Capital/Infrastructure Reserve Category Purpose: The City established this reserve to provide funds for the maintenance of City facilities.
Funding: The Facilities Maintenance Reserve is funded by facility charges to the General Fund based on past facilities replaced, repaired or rehabilitated. These costs are charged over the estimated service life of the asset to the General Fund program that benefits. Funds are also transferred on a one-time basis based on the Capital Improvement Program activity anticipated.
Fiscal Policy: Maintain an account to cover the costs associated with the maintenance of all General Fund City facilities. The reserve should be maintained at a level at least equal to the projected five-year facilities maintenance costs.
Discussion/Analysis and Assessment: General Fund facilities are replaced through capital expenditures made from this fund. The projected fund balance at June 30, 2024 of $2.1 million is sufficient to fund replacement projects within the 5 year timeframe. The decrease reflected in the graph below is related to the non-routine Casa Romantica land stabilization project for approximately $9 million.
Longer term non-routine capital projects, such as, the Marine Safety building, Maintenance building, the pier, and other substantial buildings and facilities will require additional funding.
The General fund, as a result of the draw to fund the land stabilization project, needs to replenish the reserve and should contribute a recurring amount of $600,000 for larger cost projects. Staff will analyze capital asset categories, within Lucity, and better identify replacement costs for specific assets in the future.
Recommendations: Transfer an annual amount of $400,000 from the General Fund to the Facilities Maintenance Reserve in FY 2024-25 and in FY 2025-26. $-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
2020 2021 2022 2023 Projected 2024
Millions
Facilities Maintenance Reserve
5 Year History of Reserve
Charges Contributions Facility Maintenance
71 71
- -
Park Asset Reserve Capital/Infrastructure Reserve Category Purpose: The Park Asset Reserve is used for replacement of park capital assets valued over $50,000 within city parks. This reserve is funding playground equipment replacements and setting aside funds for artificial turf replacement at the Vista Hermosa Sports Park.
Funding: In FY 2009-10, the City started funding this reserve through one-time transfers and reached the $1.2 million minimum reserve level in FY 2011-12. The City funds the reserve through General Fund charges and additional contributions based on annual reviews as part of the LTFP.
Fiscal Policy: The City will establish a Park Asset Replacement Reserve with a target balance of $1.2 million for the replacement of park assets. The reserve balance will be reviewed annually and funded through one-time revenues, or unassigned General Fund balance transfers, when available.
Discussion/Analysis and Assessment: The City pays for most park asset replacements on a “pay as you go” basis. Park assets total over $70 million. Significant annual contributions would be required to set aside funds for all park system assets. The City has focused this reserve on maintaining high use park assets (playground equipment) and identified artificial turf replacement for funding.
The projected balance at June 30, 2024 is $1.4 million. The City is utilizing the reserve to fund playground equipment based on a replacement schedule to fund upgraded playground equipment from the existing equipment and for an artificial turf project in 2024. As replacement projects are completed, replacement charges to the benefiting program replenish the Park Asset Reserve based on an estimated asset life. FY 2024-25 charges are anticipated at $220,000 and a one-time $100,000 transfer is recommended for artificial turf replacement in the 5-year horizon to supplement the current reserve. Staff is reviewing Lucity’s data and will identify additional assets(such as lights, restrooms, fields, courts, etc.) for inclusion if reserve levels exceed required funding levels in the Park Asset Reserve over time.
Recommendation: Transfer a one-time amount of $100,000 from the General Fund to the Park Asset Reserve in FY 2024-25. No transfer is recommended in FY 2025-26. $-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2020 2021 2022 2023 Projected 2024
Millions
Park Asset Reserve
5 Year History of Reserve
Contibutions Charges Park Asset Reserve
72 72
"'-
- -
- -
Water Fund Depreciation Reserve Capital/Infrastructure Reserve Category Purpose: The Water Depreciation reserve sets aside replacement funds for water capital assets and equipment that reach the end of their useful life and for major repairs to the water system infrastructure. This reserve includes Other Agency infrastructure assetsthat are owned, operated and maintained by Joint Regional Water Supply System and Santa Margarita Water District.
Funding: The Water Depreciation Reserve is funded by depreciation charges based on the useful life of the assets, and additional transfers from the operating fund based on an Asset Model amount. Additional one-time contributions are considered from available operating equity.
Fiscal Policy: The City will establish a Water, Sewer, Storm Drain and Golf Depreciation Reserve for costs associated with the major maintenance and capital improvement costs included in the Enterprise Fund budgets. The minimum reserve level shall be at a level equal to the projected three-year costs.
Discussion/Analysis and Assessment: Water infrastructure reserves have been underfunded for a long period of time. Council’s past actions increased contributions based on an Asset Model to close the funding gap. The projected ending reserve balance at June 30, 2024 is $12.6 million if all projects are completed. The three-year capital costs total $17.5 million. Therefore, the Depreciation Reserves are underfunded by $4.9 million, as compared to last years $3.0 million underfunding. The City has improved its progressin funding three years of capital project activity over the past 5-year history through additional transfers based on the fiscal policy.
The Water Operating Fund contributed depreciation amounts of $1.9 million based on the useful life of water capital assets. Asset model contributions of $2.5 million address past underfunding, major maintenance costs, and joint agency assets. The underfunding of this reserve has fluctuated but recently was stable. Contributions funding the reserve are increasing and additional transfers from operating funds have improved the funding levels, however no onetime transfers from the Water Operating Fund are proposed until a new water rate study is complete. Staff will consider future reserve contributions based on funding availability.
Recommendation: No changes recommended.
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2020 2021 2022 2023 Projected 2024
Millions
Water Depreciation Reserve
5 Year History of Reserve
Asset Model Contib. Charges Water Depreciation Reserve
FY 2024 includes
$18.4 million of
project costs
73 73
- -
Sewer Depreciation Reserve Capital/Infrastructure Reserve Category Purpose: The Sewer Depreciation reserve set aside replacement funds for sewer capital assets and equipment that reach the end of their useful life and for major repairs to the sewer system infrastructure. This reserve includes Other Agency infrastructure assets that are owned, operated and maintained by the South Orange County Wastewater Authority.
Funding: The Sewer Depreciation Reserve is funded through depreciation charges based on the useful life of the assets and additional transfers from the operating fund based on an Asset Model amount. Additional one-time contributions are considered from available operating equity.
Fiscal Policy: The City will establish a Water, Sewer, Storm Drain and Golf Depreciation Reserve for costs associated with the major maintenance and capital improvement costs included in the Enterprise Fund budgets. The minimum reserve level shall be at a level equal to the projected three-year costs.
Discussion/Analysis and Assessment: Sewer infrastructure reserves have been underfunded for a long period of time. Council has taken action to increase contributions based on an Asset Model to narrow this funding gap. The projected ending depreciation reserve balance at June 30, 2024 is $2.0 million if all projects are completed. The three-year capital costs total $12.4 million.
Therefore, the Depreciation Reserve is $10.4 million underfunded. The City recently implemented new sewer rates and with the anticipated rate changes amounts contributed from the Sewer Operating Fund annually will improve the future funding levels.
The Sewer Operating Fund contributes $3.2 million based on depreciation and $0.2 million to set aside additional reserve funds. The depreciation funding amount is based on the estimated useful life of the capital assets. The reserves underfunding exists and with the Sewer Treatment Plant aging and environmental regulations added underfunding will persist. Funding of the contributions should be maintained, and the replenishment from operating fund should occur with additional contributions considered if significant one-time resources or grants are received to fund depreciation reserves.
Recommendation: Transfer an annual amount of $300,000 from the Sewer Operating in FY 2024- 25 and FY 2025-26 to fund sewer asset replacement in the Sewer Depreciation Reserve. $-
$5.0
$10.0
$15.0
$20.0
2020 2021 2022 2023 Projected 2024
Millions
Sewer Depreciation Reserve
5 Year History of Reserve
Asset Model Contrib. Charges Sewer Depreciation Reserve FY 2024 includes
$12.7 million of
project costs
74 74
- - - -
- - -
Storm Drain Depreciation Reserve Capital/Infrastructure Reserve Category Purpose: The Storm Drain Depreciation reserves set aside replacement funds for storm drain capital assets and equipment that reach the end of their useful life and for major repairs to the storm drain system infrastructure.
Funding: The Storm Drain Depreciation Reserve is funded through depreciation charges based on the useful life of the assets and additional transfers from the operating fund. Additional onetime contributions are considered from available operating equity.
Fiscal Policy: The City will establish a Water, Sewer, Storm Drain and Golf Depreciation Reserve for costs associated with the major maintenance and capital improvement costs included in the Enterprise Fund budgets. The minimum reserve level shall be at a level equal to the projected three-year costs.
Discussion/Analysis and Assessment: The projected ending balance at June 30, 2024 is $0.8 million and the three-year capital costs total $5.2 million. Therefore, the Depreciation Reserve is underfunded by $4.4 million. The Storm Drain charge was adopted in 1993 (Ord. 1120) and has not kept pace with inflationary increases. The Storm Drain Master Plan identifies and determines the needs of the Storm Drain system. Funding options include increases to the Storm Drain fee, assistance through any Clean Ocean renewal, grants, or actions based on recent or future legislative actions or interpretation. Recent legislation passed may allow increases to Storm Drain fees through a process similar to water and sewer rates if certain criteria and conditions are met, however the process is not validated through court opinions. Staff will monitor legislative developments to modify Storm Drain fees to meet demands placed on the City’s public storm drain system.
The Storm Drain Depreciation Fund contributes $890,000 based on depreciation funding and an additional reserve contribution of $90,000 for a total contribution of $980,000 in FY 2024-25. The depreciation funding amount is based on the estimated useful life of the capital assets. The additional contribution is estimated to fund past costs of the reserve.
Recommendation: Prioritize capital projects until the implementation of a Clean Ocean measure or long term alternative funding is available for storm drains. $-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2020 2021 2022 2023 Projected 2024
Millions
Storm Drain Depreciation Reserve
5 Year History of Reserve
Contributions Charges Sewer Depreciation Reserve
FY 2024 includes
$1.5 million of
projects
75 75
- -
Golf Depreciation Reserve Capital/Infrastructure Reserve Category Purpose: The Golf Depreciation reserve sets aside replacement funds for equipment, machinery, and buildings that reach the end of their useful lives. The Golf Depreciation Reserve assets (buildings, machinery, and equipment replacements) can have useful lives between 5-50 years.
Funding: The Golf Depreciation Reserve is funded through depreciation charges based on the useful life of the assets and from contributions made under the lease arrangement with Wedgewood, the restaurant concessionaire.
Fiscal Policy: The City will establish a Water, Sewer, Storm Drain and Golf Depreciation Reserve for costs associated with the major maintenance and capital improvement costs included in the Enterprise Fund budgets. The minimum reserve level shall be at a level equal to the projected three-year costs.
Discussion/Analysis and Assessment: The available ending balance projected at June 30, 2024 is $3.5 million however the loan receivable amount of $1,250,000 reduces the amount available to $2.2 million. Projected capital expenses for the next three years total $275,000. Therefore, the Depreciation Reserve is funded. Annual amounts placed into this reserve are based on the depreciation of the assets in service.
Recommendation: No changes recommended.
$-
$0.5
$1.0
$1.5
$2.0
$2.5
2020 2021 2022 2023 Projected 2024
Millions
Golf Depreciation Reserve
5 Year History of Reserve
Charges Golf Depreciation Reserve
76 76
- - - - -
-
Golf Improvement Reserve Capital/Infrastructure Reserve Category Purpose: The Golf Capital Improvement Reserve was established to set aside funds for capital improvements in the Golf Course Fund. The Improvement Reserve is to provide funds for green and tee reconstruction, fencing and other miscellaneous golf improvements based on depreciation of these improvement assets.
Funding: The Golf Improvement Reserve is funded through depreciation charges based on the useful life of the assets.
Fiscal Policy: The City will maintain a Golf Capital Improvement Reserve for costs associated with capital improvements budgeted in the Golf Course Fund. The reserve will be maintained at a level at least equal to the projected three-year costs.
Discussion/Analysis and Assessment: The Golf Capital Improvement Reserve at June 30, 2024 is projected to have an ending balance of $1.2 million, however the loan receivable amount of $200,000 reduces the amount available to $1.0 million. Projected expenses for the next three years total $380,000. Therefore, the Improvement Reserve is funded. Annual amounts placed into this reserve are based on the golf improvement depreciation amounts.
Recommendation: No changes recommended.
$-
$0.5
$1.0
$1.5
$2.0
2020 2021 2022 2023 Projected 2024
Millions
Golf Improvement Reserve
5 Year History of Reserve
Charges Golf Improvement Reserve
77 77
- - - - -
-
Accrued Leave Reserve Miscellaneous Reserve Category
Purpose: The City reserves amounts for the payment of vacation and sick leave payoffs for General Fund eligible employees. Amounts are set aside in a separate reserve for this purpose.
An annual amount is budgeted from this reserve to payoff General Fund employee’s vacation and sick leave balances for employees eligible to retire based on the personnel policies of the City.
These payments are due upon separating from the City.
Funding: The Accrued Leave Reserve is funded through transfers of unassigned General Fund balance. The reserve contribution is determined annually based on the reserve balance, funding requirements, and leave balances.
Fiscal Policy: Maintain an account to accumulate funds for the payment of accrued employee benefits to terminated employees. This reserve will be maintained at a level at least equal to projected costs for employees who are eligible for retirement.
Discussion/Analysis and Assessment: When a General Fund employee leaves employment, their accrued leave is paid from this reserve. The reserve requirement (accrued leave dollar value) fluctuates annually based upon the eligible employees, length of service, pay rates and hours accrued. At June 30, 2023, the total General Fund accrued leave liability was $0.9 million, with $430,000 available for retirement eligible employees. MOU salary increases and employee changes effect the status of this reserve. The projected ending balance for the Accrued Leave Reserve as of June 30, 2024 is $624,000 and the projected ending liability is $737,000.
The Accrued Leave Reserve is funded with no additional contribution required to address future salary/pay increases as investment earnings offsetting future increases.
Recommendation: Transfer a one-time amount of $200,000 from the General Fund to the Accrued Leave Reserve in FY 2024-25. No transfer is recommended in FY 2025-26. $-
$0.25
$0.50
$0.75
$1.00
$1.25
2020 2021 2022 2023 Projected 2024
Millions
Accrued Leave Reserve
5 Year History of Reserve
Contributions Accrued Leave Reserve
78 78
• - -
-
State Revolving Loan Reserve Miscellaneous Reserve Category Purpose: The City of San Clemente entered into a loan agreement with the California State Water Resources Control Board under the Clean Water State Revolving Fund (CWSRF) loan program for financing construction of the Recycled Water System Expansion Project. As required under the State Revolving Loan, one year’s annual debt service payment is to be maintained in a reserve.
Funding: The reserve was funded through a one-time contribution from the Operating Fund in the amount of $900,600. This is equal to one year’s debt service.
Fiscal Policy: The City will establish a restricted reserve in the Water Operating Fund equal to one year’s debt service on the State Revolving Loan. The purpose of this reserve will be to provide a debt reserve as required under the State Revolving Loan financing agreement.
Discussion/Analysis and Assessment: The City loan amount outstanding as of June 30, 2024 is projected to be $8.7 million. This loan is being amortized over a period of 20 years and the loan is anticipated to be paid in full in FY 2034-35. The reserve was first funded in FY 2015.
The repayment of this loan is secured by the net revenues of the Water Fund with a revenue coverage level of 110% of the annual debt service. There is no change in the reserve level.
Recommendation: No changes recommended.
$-
$0.25
$0.50
$0.75
$1.00
2020 2021 2022 2023 Projected 2024
Millions
State Revolving Loan Reserve
5 Year History of Reserve
Contibutions State Revolving Loan Reserve
79 79
-
General Liability Reserve Miscellaneous Reserve Category Purpose: The City is a member of California Joint Powers Insurance Authority (CJPIA). CJPIA administers programs for the pooling of self-insured losses, and the purchase of excess insurance or reinsurance. Losses excluded from the CJPIA coverage include 1) breach of contract, 2) land use entitlement, 3) eminent domain, 4) hazardous materials release, and 5) punitive damages.
This reserve fund provides stabilization of the other fund charges and for losses not covered.
Funding: The General Liability Reserve is funded through charges to other funds. Charges are based on two key factors: 1) Five-year average of historical claims for risk by fund which accounts for 25% of the basis for the charge (limited to the claims coverage level). 2) A fund’s budgeted expenditures as a percentage of total budgeted expenditures which accounts for 75% of the basis for the charge.
Fiscal Policy: Maintain a reserve in the City’s self-insurance fund which, together with purchased insurance policies, adequately protects the City. The City will maintain a reserve of one times its annual insurance authority premium. In addition, the City will perform an annual analysis to document claims which are not covered by the insurance pool to which the City belongs, and reserve an additional appropriate amount to pay for such uncovered claims.
Discussion/Analysis and Assessment: The reserve requirement is at least one times the annual risk financing premium (contribution) to absorb contribution fluctuations based on claims activity. The City’s CJPIA premium for FY 2023-24 is estimated at $2.3 million, which would be the reserve requirement. The projected General Liability balance at June 30, 2024 is $4.7 million.
The City has $2.4 million retained that exceeds the reserve requirement in the General Liability Fund to pay significant one-time costs and fund claims not covered through CJPIA coverage. The City is party to multiple lawsuits regarding non-covered items and other claims which may be outside of CJPIA coverage.
Recommendations: No changes recommended.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2020 2021 2022 2023 Projected
2024
Millions
General Liability Reserve
5 Year History of Reserve
Charges General Liability Reserve
80 80
-
Reserve Analysis
ATTACHMENT A – Insurance Charges
General Liability charges
The following table shows the calculations for charges to other funds for FY 2024-25 and FY 2025-26:
Past
Claims %
(25%)
Budgeted
Expenditures
%
(75%)
General
Liability
Charges %
(weighted
average)
Total Charge
for General
Liability
(new rate)
Total Charge
for General
Liability
FY 2023-24
General Fund 62.1% 66.6% 65.5% $ 1,768,500 $ 1,870,050
Water Fund 25.4% 17.3% 19.3% 520,980 463,920
Sewer Fund 10.3% 7.2% 8.0% 216,270 188,580
Solid Waste Fund 0.5% 0.2% 0.3% 7,200 9,060
Storm Drain Fund 1.7% 0.7% 0.9% 24,720 17,400
Golf Course Fund 0.0% 2.4% 1.8% 49,650 48,810
Clean Ocean Fund 0.0% 1.8% 1.3% 35,610 30,540
Central Services Fund 0.0% 0.4% 0.3% 8,250 9,360
Information Services Fund 0.0% 2.2% 1.7% 45,030 38,280
Fleet Maintenance Fund 0.0% 1.2% 0.9% 23,790 24,000
Total 100.0% 100.0% 100.0% $2,700,000 $2,700,000
81 81
Workers Compensation Reserve Miscellaneous Reserve Category Purpose: The City is self-insured for Workers’ Compensation coverage and purchases. The Public Risk Innovation, Solutions, and Management (PRISM) Insurance Authority provides coverage for Workers’ Compensation claims in excess of $300,000, which isthe City’s Self-Insurance Retention (SIR) amount.
Funding: The Workers Compensation Reserve is funded through internal service charges to all City funds based on payroll costs. These charges are based on employee classifications and the type of work performed (e.g. manual labor, non-manual and clerical, etc.). These internal charges are placed into the Workers’ Compensation Fund to pay workers compensation claims and administrative costs.
Fiscal Policy: Maintain a reserve at a level which, together with purchased insurance policies, adequately protects the City. The City will maintain a reserve of three times its self insurance retention for those claims covered by the insurance pool. In addition, the City will perform an annual analysis of past claims not covered by the insurance pool and reserve an appropriate amount to pay for uncovered claims.
Discussion/Analysis and Assessment: The City’s fiscal policy requires a reserve equal to $900,000 (three times the SIR). Staff modified the reporting of the reserve so claims reduce the asset amount to arrive at the reserve balance. At June 30, 2024, projected assets of $2.0 million reduced by claims payable of $0.5 million leaving a projected reserve balance at $1.5 million. The City exceeds the reserve level of $900,000 set through fiscal policy.
Based on cash amounts available, current claims and anticipated recoveries, staff is recommending no changes to the reserve policy of three times the SIR amount ($900,000 level).
The rates have been adjusted downward and are anticipated to provide adequate funds to maintain the reserve level and fund claims activity. Rate increases would occur in future years if claims activity or the premium increases substantially lowering the reserve funds available.
Recommendation: No changes recommended.
$-
$0.50
$1.00
$1.50
$2.00
2020 2021 2022 2023 Projected 2024
Millions
Workers' Compensation Reserve
5 Year History of Reserve
Charges Workers' Compensation Reserve
82 82
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Fiscal Policy
Objective
Review the City’s adopted Fiscal Policy on an annual basis to determine appropriate changes, additions, or deletions.
Background
A review of the City Council Fiscal Policy is conducted on an annual basis in conjunction with the preparation of the Long Term Financial Plan. This review is performed to document proposed policies identified through the preparation of the Long Term Financial Plan. Additionally, there are occasional modifications to existing fiscal policies to address changing circumstances.
The Fiscal Policy statements are presented by major categories, which include:
Core Values of Financial Sustainability
Operating Budget
Revenue
Expenditure
Utility Rates and Fees
Capital Improvements
Short Term Debt
Long Term Debt
Fund Balance and Reserves
Investment Policies
Accounting, Auditing, and Financial
Reporting
Long Term Financial
Risk Financing
Pension
A Status for each Policy Statement is presented with a √ for “in compliance” or ˉˉ if the policy is “not in compliance” with the Policy statement.
Comments are provided next to many of the policy statements to provide additional relevant information. Unless otherwise noted, reserve balances provided in the comment section are based on projected numbers as of June 30, 2024, presented within the Reserve Analysis Paper in this year’s Long Term Financial Plan.
Fiscal Policy recommendations are presented below:
Staff Recommendation
No recommendations
83 83
Fiscal Policy
1BCore Values of Financial Sustainability
Financial stability – The City will create financial stability to provide the community with a consistent and adequate level of public services. The City will take a long-term approach to its finances by developing and maintaining long-term plans, carefully weighing the cost and benefits of development opportunities and adhering to sound debt, reserve and investment policies.
Quality of life and local economic vitality – The City will provide effective and efficient services to ensure a safe and healthy atmosphere for its residents, businesses and visitors, while preserving and enhancing its unique cultural and environmental attributes.
Accountability and Financial Planning – The City will institute financial planning that ensures City services are provided at the best value, and that the services are in alignment with the needs and wants of the community.
Environmental and economic sustainability – The City’s financial strategy will support continued investment in the renovation and maintenance of physical infrastructure/facilities and in policies and programs that support a clean and healthy natural environment.
Transparency and engagement – The City will be accountable for producing value for the community by producing planning and report mechanisms that make it clear how the City plans to use its resources to achieve the community vision. The City is committed to engaging the public as a partner in formulating plans and delivering services. 84 84
Fiscal Policy
2BFiscal Policy Statement 3BStatus 4BComments
5Operating Budget Policies
1 The City will adopt a balanced budget by June 30 of each year. A balanced budget is defined as one in which total expenditures equal total revenue. An entity has a budget surplus if expenditures are less than revenues. It has a budget deficit if expenditures are greater than revenues. √
2 An annual base operating budget will be developed by
verifying or conservatively projecting revenues and
expenditures for the current and forthcoming fiscal year. √
3 Current revenues will be sufficient to support current operating expenditures and a budgeted positive
operating position will be maintained.
√
4 The City will annually review the General Fund operating position to determine if funds are available to operate and maintain future capital facilities. If funding is not available for operations and maintenance costs, the City will delay construction of the new facilities.
√
Revenue Policies
5 The City will try to maintain a diversified and stable revenue system to shelter it from short-term fluctuations in any one revenue source.
√
6 The City will estimate its annual revenues by an objective, analytical process utilizing trend, judgmental, and
statistical analysis, as appropriate.
√
7 All City Council-established General Fund User fees will be reviewed and adjusted annually as part of the budget process by each City department and the analysis with
recommended changes will be provided to the City
Council. The basis for adjustment will be the cost of
providing services, inflationary impacts, or other
budgetary factors as appropriate. User fees will be
established to recover the full cost of services provided, except when the City Council determines that a subsidy
from the General Fund is in the public interest.
√ Annual review is
presented in the Fee
Schedule section of the
Operating Budget.
85 85
Fiscal Policy
2BFiscal Policy Statement 3BStatus 4BComments
8 One-time operating, capital, and reserve revenues will be used for one-time expenditures. Exceptions must be
formally adopted by Council Action and may only offset
operating expenditures for a limited time period of less than five fiscal years.
√
9 The City will annually identify developer fees and permit charges received from “non-recurring” services
performed in the processing of new development and
use those funds to meet peak workload requirements.
√
10 Allocate one-third of total Transient Occupancy Tax
dollars toward the unfunded pension liability.
√
Expenditure Policies
11 The purchase of new or replacement capital equipment with a value of $5,000 or more and with a minimum
useful life of two years will require budget approval.
√
12 The City will annually project its equipment replacement and maintenance needs for the next five years and will
update this projection each year. A maintenance and replacement schedule will be developed and followed. √
Utility Rates and Fees Policies
13 The City will set fees and user charges for each utility fund at a level that fully supports the total direct and indirect cost of the activity. Indirect costs include the cost of annual depreciation of capital assets and overhead charges. √ A Cost of Service study
was completed for
Sewer rates.
14 Utility rates will be established for each of the next five years and this rate projection will be updated annually. √
86 86
Fiscal Policy
Capital Improvement Budget Policies
15 The City will make all capital improvements in accordance with an adopted capital improvement program and will include an annual six-year plan for capital
improvements (CIP design, development,
implementation, and operating and maintenance costs).
The first year of the six-year plan must be fully funded in the adopted budget. Projects that are not fully funded
must be removed or delayed until adequate funding
exists for design, construction, operating and
maintenance.
√
16 Capital improvement projects must project operating
and maintenance costs for the five-year forecast period to ensure that future year budgets maintain a positive
operating position.
√
17 The Park Acquisition & Development Fund and other
special development impact funds may only be used to
fund facilities included in the Master Plan for City
Facilities.
√
Short-Term Debt Policies
18 The City may use short-term debt to cover temporary
or emergency cash flow shortages. All short-term
borrowing will be subject to Council approval by
ordinance or resolution.
√
19 The City may issue interfund loans to meet short-term cash flow needs. Short-term is defined as a period of
one year or less. Interfund loans will be permitted only if a specific source of repayment is identified within the “borrowing” fund. Excess funds must be available and
the use of these funds will not impact the “lending”
fund’s current operations. The prevailing interest rate, as established by the City Treasurer, will be paid to the lending fund. Short-term interfund loans require
Council approval.
√
7BLong-Term Debt Policies
20 The City will confine long-term borrowing to capital improvements that cannot be funded from current revenues. √
87 87
Fiscal Policy
21 The City may issue long-term interfund loans to fund capital improvements. Interfund loans will be
permitted only if a specific source of repayment is
identified within the “borrowing” fund. Excess funds
must be available and the use of these funds will not
impact the “lending” fund’s long-term operations.
Long-term interfund loans will be fully amortized
(principal and interest included in payment). The
prevailing interest rate and duration of the loan will be established by the City Treasurer. Principal and interest will be paid to the lending fund. Long-term interfund
loans require Council approval. Long-term interfund
loans will be disclosed in the City’s annual Operating
Budget.
√
22 The City will establish and maintain a Debt Policy.
23 The City will establish a restricted reserve in the Water Operating Fund equal to one year’s debt service on the
State Revolving Loan. The purpose of this reserve will
be to provide a debt reserve as required under the State Revolving Fund loan financing agreement.
√
√ State Revolving Loan
Reserve = $900,600
Fund Balance and Reserve Policies
24 The City will maintain emergency reserves equal to 18% of operating expenditures of the General Fund. The
primary purpose of this reserve is to provide stability during a significant economic downturn, or to offset a
significant one-time loss of revenue. The reserve exists to provide short-term funding to protect the City’s
essential service programs and funding requirements or
to provide for unanticipated or emergency
expenditures that could not be reasonably foreseen
during preparation of the budget.
√ Emergency Reserve =
$15.0 million, or 18%, of
General Fund operating
expenditures based on
forecast
25 The City will maintain emergency reserves equal to 12% of the operating expenses for Enterprise Funds. The
primary purpose of these reserves is to protect the
Funds during periods of economic downturn, other
unanticipated expenses, or emergency expenses that
could not be reasonably foreseen during preparation of
the budget.
ˉˉ Emergency Reserves for:
Water = $1,528,000;
Sewer = not funded;
Storm Drain = not
funded;
Solid Waste = $35,000;
and Golf = $359,000
88 88
Fiscal Policy
26 The City will establish an account to accumulate funds to be used for payment of accrued employee benefits
for terminated employees. The level of this reserve will be maintained at a level at least equal to projected costs for employees who are eligible for retirement.
√ Accrued Leave Reserve =
$625,000
27 The City will establish a Capital Equipment Replacement Reserve and a Facilities Maintenance Capital Asset
Reserve for the accumulation of funds for the
replacement of worn and obsolete equipment other
than vehicles and for costs associated with the
maintenance of all City facilities. These reserves will be maintained at a level at least equal to the projected
five-year capital asset replacement and maintenance
costs.
√ Capital Equipment
Reserve = $1.8 million
Facilities Maintenance
Reserve = $2.1 million
28 The City will establish Water, Sewer, Storm Drain and Golf depreciation reserves for costs associated with the major maintenance and capital improvement costs
included in the Enterprise Funds. The minimum reserve
level shall be at a level equal to the projected three-year capital and major maintenance costs.
ˉˉ Water Depreciation
Reserve = $12.6 million;
Sewer Depreciation
Reserve = $2.0 million;
Golf Depreciation
Reserve = $3.5 million;
and Storm Drain
Depreciation Reserve =
$0.9 million
29 The City will establish a Golf Course Improvement
reserve for costs associated with capital improvements
budgeted in the Golf Course Fund. The reserve will be
maintained at a level at least equal to the projected
three year costs.
√ Golf Course
Improvement Reserve =
$1.2 million
30 The City will establish a Park Asset Replacement
Reserve with a target of $1.2 million for the
replacement of park assets in the future. The reserve
balance will be reviewed annually and funded through
one-time revenues or undesignated General Fund
balance transfers, when available.
√ Park Asset Replacement
Reserve = $1.4 million
89 89
Fiscal Policy
31 The General Liability self-insurance reserve will be maintained at a level which, together with purchased
insurance policies, adequately protects the City. The
City will maintain a reserve of one times its annual
insurance authority premium. In addition, the City will perform an annual analysis to document those claims
which are not covered by the insurance pool to which
the City belongs, and reserve an additional appropriate amount to pay for such uncovered claims.
√ General Liability Reserve
= $4.7 million
32 The Workers’ compensation self-insurance reserve will be maintained at a level which, together with
purchased insurance policies, adequately protects the
City. The City will maintain a reserve of three times its self insurance retention for those claims covered by
the insurance pool (of which the City is a member). In
addition, the City will perform an annual analysis of
past claims not covered by the insurance pool, and
reserve an appropriate amount to pay for uncovered
claims.
√ Workers Compensation
Reserve = $1.5 million
33 The City will establish a Fleet Replacement Reserve for costs associated with the replacement of vehicles and
other rolling stock (such as trailers, compressors or
other equipment on wheels) as they become
unserviceable, obsolete or reach a predetermined
service life. The reserve will be maintained at a level at least equal to the projected five-year fleet
replacement costs.
√ Fleet Replacement
Reserve = $3.7 million
9BInvestment Policies
34 The City Treasurer will annually submit an investment policy to the City Council for review and adoption.
√
90 90
Fiscal Policy
10B
Accounting, Auditing & Financial Reporting Policies
35 The City’s accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards of the Government Accounting Standards Board.
√
36 An annual audit will be performed by an independent
public accounting firm with the subsequent issue of an
official Comprehensive Annual Financial Report,
including an audit opinion.
√
37 A fixed asset system will be maintained to identify all City assets, their condition, historical cost, replacement value, and useful life. √
38 Quarterly financial, capital improvement program and investment reports will be submitted to the City Council and will be made available to the public. √
39 An annual revenue manual will be prepared after the
close of the fiscal year. The manual will provide
information on the revenue source, legal
authorization, timing of receipts and historical
collection over the last five year period. Fee schedules or calculations will also be provided.
√
40 Full and continuing disclosure will be provided in the general financial statements and bond
representations.
√
41 A good credit rating in the financial community will be maintained.
√ Standard &
Poor's = AAA
42 Establish and maintain a formal compensation plan for all employee salary or wage ranges and maintain a
formal salary schedule for every approved position
title showing the current pay rate for each identified
position. The salary schedule will be approved and
adopted by the City Council and will be made publicly
available
√
43 Establish a position control system to ensure that
staffing levels are maintained at the levels approved by City Council.
√
91 91
Fiscal Policy
Long Term Financial Policies
44 Annually prepare a five year forecast that maintains the current level of services, including known changes
that will occur during the forecast period. If the
forecast does not depict a positive operating position
in all five-years of the forecast, the City will strive to balance the operating budget for all years included in
the five-year financial forecast.
√
45 Annually evaluate trends from a budget-to-actual
perspective and from a historical year-to-year
perspective to identify areas where resources have
been over allocated. This would improve the accuracy
of revenue and expenditure forecast by eliminating
the impact of recurring historical variances.
√ Reviewed during the
budget process
Risk Financing Policies
46 The City will maintain adequate insurance coverage,
pooled coverage, or self-insurance for general liability, property, errors and omissions, subsidence,
automobile liability, workers’ compensation, and
other identified loss exposures.
√
47 The City will maintain a risk financing strategy, which shall include an annual review of insurance policy
limits, types of coverage, reserve requirements, and
self-insurance limits, if applicable.
Pension Policies
48 The required actuarial contributions shall be made to cover the current service cost and unfunded liabilities based on the actuarially determined contribution rate.
49 Annually, review the City Pension plans funding levels of and identify areas where funding may be utilized to
target a funding ratio of 90% or higher for each of the City’s individual pension plans.
√
√
-
The City is allocating
additional funds to
achieve the target
funded status over time.
Legend:
√ Budget Complies with Fiscal Policy Standard
-- Fiscal Policy Standard is not met in Budget
Note: Reserve balances are the estimated amounts as of June 30, 2024. 92 92
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: March 19, 2024 Agenda Item: B
Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director Subject:
..titl e
OVERVIEW OF THE STRATEGIC IMPLEMENTATION PROGRAM (SIP)
..body
Fiscal Impact:
None to receive and file this report.
Summary:
Every year, the City Council undertakes a review of City progress on work that contributes to implementing the goals and policies of the City’s General Plan. The last major update of this document, entitled the Centennial General Plan, occurred in 2014. This progress review occurs in two ways: 1) the Annual Progress Report (APR), which summarizes accomplishments over the prior year and is transmitted to the State; and 2) the Strategic Implementation Program (SIP), which identifies ongoing and pending projects that serve to implement the General Plan. Prior to City Council review, the Planning Commission reviews the SIP, and forwards a recommendation to City Council for consideration.
Background:
Annually, with the budgeting process, the City Council approves a five-year Strategic Implementation Program (SIP) comprising “Implementation Measures” (IMs) to carry out General Plan goals and policies. The SIP identifies projects the Council prioritizes in terms of funding and available staff time to complete in the next five years or by the beginning of Fiscal Year 2029- 2030 (“FY30”). This is an important tool for the City Council and the City Manager to help identify available staff time for one-time projects, given most staff time is allocated to completing reoccurring work duties necessary for regular City operations.
Planning staff presented the Strategic Implementation Program Update to the Planning Commission on February 7, 2024. This report, provided as Attachment 1 to this memorandum, identifies a simplification of projects (referred to as “Implementation Measures” or “IM’s”), batching them into groups of tasks with a target completion within the next 5 years or beyond the 5-year horizon. Those to be initiated within 5 years are identified with a target commencement and completion year. This information is categorized by the City Department that is responsible for managing the project and can be referenced in Exhibit A-1 and A-2 of Attachment 1.
The 2023 APR is included as a Consent Calendar item on the City Council Regular Meeting agenda of Tuesday, March 19, 2024. The SIP will be presented to City Council for consideration at a later City Council meeting in advance of budget adoption so that the City Council can concur with the priorities therein or provide direction on altering the referenced projects and their priority 1 Meeting Date: March 19, 2024 Agenda Item: B
CITY OF SAN CLEMENTE
status. This helps to inform the budget process by ensuring that staff resources are in alignment with City Council priorities.
Council Options:
Receive and file this report.
Environmental Review/Analysis:
Providing an overview of the City’s SIP does not constitute a “project” under the California Environmental Quality Act. No action is being taken by the City Council as part of this report.
Recommended Actions:
Staff Recommendation ..recommendation
Staff recommends the City Council receive and file this report. ..end
Attachment:
1. Strategic Implementation Program Update for Fiscal Year 2024- 2025 (“FY25”), and available at:
https://www.sanclemente.org/home/showpublisheddocument/78349/638424000030400000 Notification:
None.
2 $77$&+0(17
STAFF REPORT
SAN CLEMENTE PLANNING COMMISSION
Date: February 7, 2024
PLANNER: Christopher Wright, Lead Project Planner
SUBJECT: Strategic Implementation Program Update, a request to forward a recommendation to the City Council on the approval of an annual update to the General Plan Strategic Implementation Program for Fiscal Year 2024- 2025 (“FY25”).
EXECUTIVE SUMMARY
On February 4, 2014, the City Council adopted the Centennial General Plan, the City’s longterm policy document to achieve San Clemente’s vision. Annually, with the budgeting process, the City Council approves a five-year Strategic Implementation Program (SIP) comprising “Implementation Measures” (IMs) to carry out General Plan goals and policies.
The SIP identifies projects the City Council prioritizes in terms of funding and available staff time to complete in the next five years or by the beginning of Fiscal Year 2029-2030 (“FY30”).
This is an important tool for decision makers and the City Manager to focus upon with available staff time for one-time projects, given most staff time is allocated to completing reoccurring work duties necessary for regular City operations. City Council direction is requested on whether to accept a proposed priority project list to complete over the next five years based on available resources. This proposed project list is included as Attachment 1 and summarized below.
DISCUSSION
Process for SIP Update
Staff proposes changes to the SIP based on a review of progress on existing projects, staff capacity for new projects, Council direction since the previous SIP update, community needs and interests, legal requirements, and new opportunities for efficiencies. Following this review, staff recommends which projects to prioritize in the five-year SIP and which projects to initiate beyond five years. Additionally, staff provides recommendations to add, delete, consolidate, or revise proposed SIP projects. After the SIP is drafted, the Planning Commission reviews the proposed SIP at a public meeting and provides guidance for staff to consider revisions. Lastly, the City Council acts on the SIP update in conjunction with a decision on the Long-Term Financial Plan and Annual Budget.
Improvements to SIP Format
Initially, the SIP was approved in September 2014, following adoption of the General Plan.
The SIP is to be a tool for the City Council to set its strategic priorities that carry over into decisions on staffing, budgeting, and initiatives to act upon with available resources.
Therefore, the intent is to present potential General Plan implementation projects in a 9B-1 3
SIP FY25 Update Page 2
manner that facilitates this decision process. Since 2014, the SIP has included an overview and a several page list of one-time projects color categorized by high, medium, and low priority; and ongoing IMs that are reoccurring activities. Part of the SIP process is to evaluate whether the format can be improved to facilitate priority setting by making the document user friendly, useful, and as concise as possible. This year, staff saw an opportunity to improve the SIP format by:
x Focusing the SIP project list on one-time projects and separating ongoing IMs given they are occurring activities that are mostly static and do not involve special attention in the budget process.
x Simplifying how projects are listed. Projects are now listed based on whether: 1) projects are prioritized in the SIP for completion within five years, or 2) projects that would be deferred beyond five years.
x Identifying the anticipated timeframe for completing projects by identifying the expected year to initiate and complete projects.
x Including notes on project status and whether resources are needed to make progress on the projects.
To compare the new and existing format, you can view the previously approved FY24 SIP on the City’s website https://www.san-clemente.org/department-services/planningservices/general-plan.
Progress on General Plan Implementation
The City has completed several projects from the SIP since the General Plan’s adoption.
For a list of project accomplishments, see Attachment 3. Additionally, through regular operations, the City completes reoccurring or “ongoing” activities that implement General Plan policies. A majority of staff time is spent on these activities. Examples include park planning, pursuing grant funding, reviewing projects for Zoning compliance, and maintaining public infrastructure. A list of these ongoing activities is provided as Attachment 4.
For additional information on recent accomplishments, the Annual Progress Report is available on the City’s website at https://www.san-clemente.org/departmentservices/planning-services/general-plan. This report is required by the State each year to provide information to the City Council and State to assess how the General Plan is being implemented. Also, the report provides State required information regarding the City’s progress in meeting its share of regional housing needs.
Proposed Projects
The table below identifies projects proposed to include in the SIP for completion by the beginning of FY30 or to defer beyond five years. The projects are sorted by lead City department that would oversee completion of the project. For more project details, Attachment 1 provides a list with status notes and resources needed to complete projects.
Staff recommendations to add, consolidate, delete, or revise projects are shown in Attachment 2.
9B-2 4
SIP FY25 Update Page 3
City Council direction is requested on whether to accept the project list as proposed or reprioritize projects based on available resources, such as funding and staff time for completing projects.
Lead
Department
Projects to Include in SIP
(ie. Complete before FY2029-30) Projects to Defer
Beaches
Parks and
Recreation
x Continue updates to site specific park
master plans.
x Add educational signage on habitats
along beach trail and Vista Hermosa
park.
x Consider public art ordinance.
x Complete cost of services study.
x Digitize BPR documents.
x Complete City-wide facilities lease
reviews.
x Update Golf Course Master Plan.
x Establish community garden
program.
City
Manager
x Adopt economic development strategy.
x Develop public engagement manual.
x Develop a digital wayfinding program.
x Establish location for historic
resource library.
Community
Development
x Support Miramar Theatre rehab project.
x Prepare and certify Local Coastal
Program.
x Adopt objective design standards.
x Update Emergency Shelter zoning
overlay.
x Evaluate inclusionary housing program.
x Process a dark sky lighting ordinance.
x Complete a parking management plan for
the coastal zone.
x Update the historic resource survey.
x Survey potential historic
structures that are unlisted,
such as mid-century modern.
x Update the City Design
Guidelines.
x Implement a sign program for
North Beach historic district.
x Process a zoning amendment
for various General Plan
policy implementation
changes.
Public Works x Develop Urban Forest Management Plan
and tree ordinance.
x Continue lifeguard headquarters
feasibility study.
x Update Climate Action Plan.
x Adopt a living streets model design
manual.
x Develop feasibility study for
potential utility
undergrounding.
ENVIRONMENTAL REVIEW/COMPLIANCE
This item is not a “project” within the meaning of the term in State CEQA Guidelines Sections 15378(b)(2) and 15378(b)(5) because it involves administrative activities and organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Appropriate environmental review and analysis would be conducted at a future date for projects subject to CEQA. 9B-3 5
SIP FY25 Update Page 4
CALIFORNIA COASTAL COMMISSION REVIEW
The SIP is used to prioritize General Plan implementation and to direct resources to meet City goals. SIP projects are separately processed and evaluated according to the Coastal Act as required. Therefore, the project does not require California Coastal Commission approval.
GENERAL PLAN CONSISTENCY
The proposed SIP update is consistent with the General Plan. The SIP lists projects and ongoing programs to implement goals and policies, ensures the General Plan responds to changing needs and conditions, and identifies projects to include in the annual budget, based on yearly evaluation of priorities to ensure appropriate resources are committed to continue progress on General Plan implementation.
ALTERNATIVES
The Planning Commission may take any of the following actions:
1. Recommend City Council approval of the proposed SIP update. This is staff’s recommendation.
2. Recommend the City Council approve the proposed SIP update with changes. If the Planning Commission requests staff to research issues or recommend significant revisions, a continuance of this agenda item may be necessary to make revisions and reassess the project(s).
3. Recommend the City Council deny the proposed SIP update. If the Commission wishes to pursue this option, the hearing will need to be continued to allow the appropriate resolution to be prepared.
RECOMMENDATION
Staff recommends that the Planning Commission:
1. Adopt Resolution PC 24-001, recommending approval of the FY25 SIP.
Attachments
1. Resolution PC 24-001
Exhibit A- Proposed Strategic Implementation Program (SIP) Section of FY25 Long-Term Financial Plan
2. Proposed Changes to SIP Projects
3. Completed SIP Projects
4. Ongoing General Plan Implementation Measures
9B-4 6
RESOLUTION NO. PC 24-001
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF SAN CLEMENTE, CALIFORNIA,
RECOMMENDING THAT THE CITY COUNCIL APPROVE
THE GENERAL PLAN STRATEGIC IMPLEMENTATION
PROGRAM (SIP) FOR FISCAL YEAR 2024-2025
WHEREAS, the State of California requires cities to have an adopted General Plan to provide guidance on land use decisions; and
WHEREAS, on February 4, 2014, the City Council approved the Centennial General Plan, dated February 2014, and certified Final Environmental Impact Report (FEIR), State Clearinghouse (SCH) No. 2013041021, mitigation monitoring program, and statements of overriding consideration; and
WHEREAS, the City of San Clemente Centennial General Plan (“General Plan”) is the City’s comprehensive long-term policy document comprised of goals and policies for achieving San Clemente’s vision. The plan guides land use and physical development of the geographic area of the incorporated City limits; and WHEREAS, the General Plan contains the seven State-required elements and six additional elements, as follows: 1) Land Use; 2) Urban Design; 3) Historic Preservation; 4) Economic Development; 5) Mobility and Complete Streets; 6) Housing, 7) Beaches, Parks and Recreation; 8) Natural Resources; 9) Coastal; 10) Safety; 11) Public Services, Facilities and Utilities; 12) Growth Management; and 13) Governance; and
WHEREAS, each General Plan Element has goals and policies that are intended to achieve specific objectives. The City’s General Plan Strategic Implementation Program (SIP), updated each fiscal year with the budget, lists and prioritizes specific projects and ongoing programs or Implementation Measures that align with goals and policies in General Plan Elements, excluding Housing. For the Housing Element, implementation measures are included in a Housing Action Plan certified by the California Department of Housing and Community Development (“HCD”) with the Housing Element; and
WHEREAS, the City has prepared a SIP for Fiscal Year 2024-2025 (“FY2024-25 SIP”) to achieve the goals and policies of the General Plan; and WHEREAS, the Planning Division completed an environmental assessment on the FY2024-25 SIP according to the California Environmental Quality Act (CEQA), and recommends that the Planning Commission finds the FY2024-25 SIP does not require further environmental analysis because the FY2024-25 SIP: 1) is not a “project” within the 9B-5 7
Resolution No. 24-001 Page 2
meaning of the term in State CEQA Guidelines Section 15378, and 2) is exempt under Section 15061(b)(3), the general rule exemption; and WHEREAS, on February 7, 2024, the Planning Commission of the City of San Clemente held a public meeting on the FY2024-25 SIP, considered written and oral comments, and facts and evidence presented by City staff, and other interested parties.
The FY2024-25 SIP is Exhibit A and incorporated herein by reference.
NOW, THEREFORE, the Planning Commission of the City of San Clemente does hereby resolve as follows:
Section 1. Incorporation of Recitals.
The Planning Commission hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the Planning Commission as fully set forth in this resolution.
Section 2. CEQA Findings.
Based upon its review of the entire record, including the Staff Report, any public comments or testimony presented to the Planning Commission, and the facts outlined below, the Planning Commission hereby finds the FY2024-25 SIP does not require further environmental analysis because the FY2024-25 SIP: 1) is not a “project” within the meaning of the term in State CEQA Guidelines Section 15378, and 2) is exempt under Section 15061(b)(3), the general rule exemption. The FY2024-25 SIP is limited to an organizational and administrative government activity to list and prioritize General Plan implementation measures, evaluate progress, and to direct resources through the budget process to meet City goals. General Plan implementation activities are separately processed and evaluated according to CEQA.
Section 3. General Plan Consistency Findings
The Planning Commission hereby finds that the FY2024-25 SIP is consistent with the Centennial General Plan and the Plan’s goal to achieve continuous progress in implementing the City’s Five-Year “Strategic Implementation Program”, in that:
A. The SIP is a set of implementation measures to ensure the goals and policies of the Centennial General Plan are carried out over a long period of time through the implementation of day-to-day activities and short-term actions; B. The SIP will help evaluate policies, procedures, and projects to ensure that they are working towards the goals and policies set forth in the Centennial General Plan;
9B-6 8
Resolution No. 24-001 Page 2
C. The SIP will help identify projects to be included in the annual budget, based on yearly evaluation of priorities, to ensure appropriate funding, resources, and time are given to implement the various implementation measures; D. The SIP will help make the Centennial General Plan a ”living document” that is able to evolve over time and respond to the changing needs of the community over time;
E. Consistent with the Governance Element, the SIP assists City Council in preparing the Long Term Financial Plan and Strategic Priorities to implement the General Plan priority actions in a timely manner; and
F. Consistent with the Governance Element, the SIP completes the City’s objective in tracking and reporting progress with achieving the goals of the Centennial General Plan by evaluating the effectiveness of Implementation Measures and by complying with State requirements to prepare a City-wide Annual Progress Report.
Section 4. Approval of FY2024-25 Strategic Implementation Program Based on the entire record, including all written and oral evidence presented to the Planning Commission, and the findings made and evidence discussed in the Staff Report and this Resolution, the Planning Commission hereby recommends the City Council approve the FY2024-25 SIP set forth in Exhibit A and incorporated herein by reference.
PASSED AND ADOPTED at a regular meeting of the City of San Clemente Planning Commission on February 7, 2024.
___________________________________
Chair
CERTIFICATION:
I HEREBY CERTIFY this Resolution was adopted at a regular meeting of the City of San Clemente Planning Commission on February 7, 2024, carried by the following roll call vote:
AYES: COMMISSIONERS:
NOES: COMMISSIONERS:
ABSTAIN: COMMISSIONERS:
ABSENT: COMMISSIONERS:
_______________________________________
Secretary of the Planning Commission
9B-7 9
Centennial General Plan
Strategic Implementation Program
1 Objective
Prioritize one-time projects to complete over the next five-years in an update of the Strategic Implementation Program to achieve the General Plan’s goals and policies.
Executive Summary
On February 4, 2014, the City Council adopted the Centennial General Plan, the City’s long-term policy document to achieve San Clemente’s vision. Annually, with the budgeting process, the City Council approves a five-year Strategic Implementation Program (SIP) comprising “Implementation Measures” (IMs) to carry out General Plan goals and policies. The SIP identifies projects the City Council prioritizes in terms of funding and available staff time to complete in the next five years, or by the beginning of Fiscal Year 2029-30. This is an important tool for decision makers and the City Manager to focus upon with available staff time for one-time projects, given most staff time is allocated to completing reoccurring work duties necessary for regular City operations. City Council direction is requested on whether to accept a proposed priority project list to complete over the next five years based on available resources. This proposed project list is included as Attachment 1 and summarized below.
Process for SIP Update
Staff proposes changes to the SIP based on a review of progress on existing projects, staff capacity for new projects, Council direction since the previous SIP update, community needs and interests, legal requirements, and new opportunities for efficiencies. Following this review, staff recommends which projects to prioritize in the five-year SIP and which projects to initiate beyond five years. Additionally, staff provides recommendations to add, delete, consolidate, or revise proposed SIP projects. After the SIP is drafted, the Planning Commission reviews the proposed SIP at a public meeting and provides guidance for staff to consider revisions. The Planning Commission meeting was held on February 7, 2024. Meeting minutes are included as Attachment
5. Lastly, the City Council acts on the SIP update in conjunction with a decision on the Long-Term Financial Plan and Annual Budget.
Improvements to SIP Format
Initially, the SIP was approved in September 2014, following adoption of the General Plan. The SIP is to be a tool for the City Council to set its strategic priorities that carry over into decisions on staffing, budgeting, and initiatives to act upon with available resources. Therefore, the intent is to present potential General Plan implementation projects in a manner that facilitates this decision process. Since 2014, the SIP has included an overview and a several page list of one-time projects color categorized by high, medium, and low priority; and ongoing IMs that are reoccurring activities. Part of the SIP process is to evaluate whether the format can be improved 9B-8 10
Strategic Implementation Program
to facilitate priority setting by making the document user friendly, useful, and as concise as possible. This year, staff saw an opportunity to improve the SIP format by:
x Focusing the SIP project list on one-time projects and separating ongoing IMs given they are occurring activities that are mostly static and do not involve special attention in the budget process.
x Simplifying how projects are listed. Projects are now listed based on whether: 1) projects are prioritized in the SIP for completion within five years, or 2) projects that would be deferred beyond five years.
x Identifying the anticipated timeframe for completing projects by identifying the expected year to initiate and complete projects.
x Including notes on project status and whether resources are needed to make progress on the projects.
To compare the new and existing format, you can view the previously approved FY 2023-24 SIP on the City’s website https://www.san-clemente.org/department-services/planningservices/general-plan.
Progress on General Plan Implementation
The City has completed several projects from the SIP since the General Plan’s adoption. For a list of project accomplishments, see Attachment 3. Additionally, through regular operations, the City completes reoccurring or “ongoing” activities that implement General Plan policies. A majority of staff time is spent on these activities. Examples include park planning, pursuing grant funding, reviewing projects for Zoning compliance, and maintaining public infrastructure. A list of these ongoing activities is provided as Attachment 4.
For additional information on recent accomplishments, the Annual Progress Report is available on the City’s website. This report is required by the State each year to provide information to the City Council and State to assess how the General Plan is being implemented. Also, the report provides State required information regarding the City’s progress in meeting its share of regional housing needs.
Proposed Projects
The table below identifies projects proposed to include in the SIP for completion by the beginning of FY 2029-30 or to defer beyond five years. The projects are sorted by lead City department that would oversee completion of the project. For more project details, Attachment 1 provides a list with status notes and resources needed to complete projects. Staff recommendations to add, consolidate, delete, or revise projects are shown in Attachment 2.
City Council direction is requested on whether to accept the project list as proposed or reprioritize projects based on available resources, such as funding and staff time for completing projects.
9B-9 11
Strategic Implementation Program
3 Lead
Department
Projects to Include in SIP
(ie. Complete before FY 2029-30) Projects to Defer
Beaches
Parks and
Recreation
x Continue updates to site specific park
master plans.
x Add educational signage on habitats
along beach trail and Vista Hermosa park.
x Consider public art ordinance.
x Complete cost of services study.
x Digitize BPR documents.
x Complete City-wide facilities lease
reviews.
x Update Golf Course Master Plan.
x Establish community garden program.
City Manager x Adopt economic development strategy.
x Develop public engagement manual.
x Develop a digital wayfinding program.
x Establish location for historic resource
library.
Community
Development
x Support Miramar Theatre rehab project.
x Prepare and certify Local Coastal
Program.
x Adopt objective design standards.
x Update Emergency Shelter zoning
overlay.
x Evaluate inclusionary housing program.
x Process a dark sky lighting ordinance.
x Complete a parking management plan for
the coastal zone.
x Update the historic resource survey.
x Survey potential historic structures that
are unlisted, such as mid-century
modern.
x Update the City Design Guidelines.
x Implement a sign program for North
Beach historic district.
x Process a zoning amendment for
various General Plan policy
implementation changes.
Public Works x Develop Urban Forest Management Plan
and tree ordinance.
x Continue lifeguard headquarters
feasibility study.
x Update Climate Action Plan.
x Adopt a living streets model design
manual.
x Develop feasibility study for potential
utility undergrounding.
Attachments
1. Proposed Strategic Implementation Plan (SIP)
(to be included in LTFP paper, following Planning Commission hearing)
2. Proposed Changes to SIP Projects (to be included following Planning Commission Hearing)
3. Completed SIP Projects
4. Ongoing General Plan Implementation Measures
5. Planning Commission Meeting Minutes, February 7, 2024 9B-10 12
LEAD DEPT. IMPLEMENTATION MEASURE STATUS START
YEAR
TARGET
YEAR TO
COMPLETE
COUNCIL
DIRECTED YEAR
TO COMPLETE
BUDGET NEEDS?
DESCRIBE (e.g. STAFF,
FUNDS)
NOTES
BPR Create minimal and appropriate signage along the Coastal Beach Trail and in the Vista Hermosa Sports Park for educational outreach about critical habitats and native plant and animal species.
Do by 2029 2027 2029
BPR Consider establishing an Art in Public Places Ordinance Do by 2029 2024 2025 Staff time; possible funding for artist stipend
NTE $5,000 annually
Transferred from CDD. Thisproject will be on the Arts
and Culture Committee's list
of tasks
BPR Complete cost of services study Do by 2029 2024 2025 Funded FY 2023Ͳ24 BPR Digitize BPR documents, records, and inspection reports Do by 2029 2024 2026 Staff time BPR Complete CityͲwide facilities lease reviews Do by 2029 2024 2026 Funded FY 2023Ͳ24 BPR Update the Golf Course Master Plan Do by 2029 2024 2024BPR Implement 2018 BPR Master Plan with continued updates to site specific master plans, addressing exsiting park facilities and upgrading for accessibility as necessary
Do by 2029 2019 2029 Steed park plan updated.
Work is ongoing on San
Grogorino, San Luis Rey,
Bonito Canyon, and Linda
Lane parks
BPR Establish a Community Living Gardens program, identify viable community garden sites and consider the feasibility of planting fruit trees in parks and on CityͲowned property and parkways.
Do after 2029 Transferred fro
m Community
Development department
City Manager Develop a Public Engagement Manual that includes specific strategies and guidelines for enhanced community notice and participation to promote informed and comprehensive
decisionͲmaking. Strategies could include, but are not limited to, an interactive website, public opinion surveys, automatic public notifications through various media, etc.
Do by 2029 2023 2027 Transferred fro
m CDD.
Partially started already,
additional publicengagement enhancements
forthcoming
City Manager Develop a digital wayfinding program, including electronic or webͲbased interpretive information.
Do by 2029 2026 2029 Transferred from CDD. Staff
to create work plan and
schedule
City Manager Help establish historic archives and/or library to protect, organize, preserve and make accessible the City’s written and graphic archival records.
Do after 2029 Transferred from CDD
CommunityDevelopment
Work with the property owner, citizens, San Clemente Historical Society, schools, performing arts, business and other communitygroups to assist in the rehabilitation of the Miramar Theatre.
Do by 2029 2017 2024 Continue inspections
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13 LEAD DEPT. IMPLEMENTATION MEASURE STATUS START
YEAR
TARGET
YEAR TO
COMPLETE
COUNCIL
DIRECTED YEAR
TO COMPLETE
BUDGET NEEDS?
DESCRIBE (e.g. STAFF,
FUNDS)
NOTES
CommunityDevelopment
Prepare a Local Coastal Program and secure California Coastal Commission certification. The LCP includes an update of the Land Use Plan (LUP), a Sea Level Rise Vulnerability Assessment (SLRVA) and Sea Level Rise Resiliency Plan (SLRRP), and an Implementation Plan (IP), which comprises Specific Plans for coastal zone areas.
Do by 2029 2019 2025 2023 Public review draft of revised Implementation Plan, Land
Use Plan Amendment, and
Categorical Exclusion Orderupdate
CommunityDevelopment
Update the Zoning Ordinance to establish a Housing Overlay and objective design standards to comply with State laws requiring streamlined review of new development that includes affordable and senior housing. This is a housing element action plan requirement.
Do by 2029 2022 2024 Planning Commission Design
Review Subcommittee
review in January 2024
CommunityDevelopment
Update the Emergency Shelter Overlay (ESO) development
standards, evaluate additional areas in the City for inclusion in the ESO, and amend the overlay to ensure it consists of up to five to ten acres that is suitable for development with access to transportation and services. This is a housing element action plan requirement.
Do by 2029 2023 2025 Schedule a public workshop
CommunityDevelopment
Evaluate the effectiveness of Inclusionary Housing Program in facilitating the development of all income levels, and conduct a feasibility study to evaluate increasing the inclusionary housing requirement. This is a housing element action plan requirement.
Do by 2029 2024 2025 Draft a request for proposals
CommunityDevelopment
Use the International DarkͲSky Association’s (IDA's) Model Lighting Ordinance to aid in developing outdoor lighting standards for residential and nonͲresidential uses. lighting zones that provide different guidelines and standards for different areas, recognizing their various safety, aesthetic and environmental constraints and functions. Also, consider changes to public lighting design/spacing standards to reduce light pollution, improve energy efficiency and maintain safety.
Do by 2029 2025 2026 Revisit draft ordinance and
schedule public hearings
CommunityDevelopment
Complete a parking management plan for the coastal zone in support of restablishing an inͲlieu fee program, parking credit for eͲbikes, and other alternative parking programs.
Do by 2029 2025 2026 Funding, possibly grant
with City match
Apply for grant funds
CommunityDevelopment
Update the City's historic structures survey. Do by 2029 2028 2029 Contingent on grant funding with 50 percent
match
Focus available resources on
higher prioritized projects
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14 LEAD DEPT. IMPLEMENTATION MEASURE STATUS START
YEAR
TARGET
YEAR TO
COMPLETE
COUNCIL
DIRECTED YEAR
TO COMPLETE
BUDGET NEEDS?
DESCRIBE (e.g. STAFF,
FUNDS)
NOTES
CommunityDevelopment
Survey potential historic resources that are not currently listed in the City’s list of designated Landmarks and Historic Resources, such as postͲwar, midͲcentury modern, etc.
Do after 2029 Contingent on grant
funding with 50 percent
match
Apply for grant funds
CommunityDevelopment
Update the City's Design Guidelines to address various policies, such as architecture, historic preservation, gateways, focus areas, signage and wayfinding, etc.
Do after 2029 Funding for consultant
services
Work is ongoing on objective
design standards for thehousing element. This is
deffered to monitor evolving
state housing laws that could
effect this issue, and to defer
based on available resources
to complete other
prioritized projects
CommunityDevelopment
Implement and get grant funding for a sign plague program to identify historic resources in the North Beach historic district.
Do after 2029 City funds needed Focus available resources on higher prioritized projects
CommunityDevelopment Consider changes to the Zoning Ordinance that credit outdoor areas toward minimum commercial Floor Area Ratio standards for mixedͲ use zones, fast food and driveͲthrough restaurant location standards, update use classifications with a focus on encouraged uses in policies, and provide for chickens in lowͲdensity residential zones.
Do after 2029 Focus available resources on
higher prioritized projects
Public Works Prepare a feasibility study to determine the best location for a new lifeguard headquarters. Consider future sea level rise, local and longͲterm sand erosion rates and trends, as well as applicable Coastal Act policies.
Do by 2029 FY 23/24 2025
Public Works Develop Urban Forest Management Plan and tree ordinance that will identify standards and procedures for the City's urban forest, such as standards for tree palette, size, spacing, irrigation, maintenance, removals, and protecting public infrastructure. The City will consider standards encouraged by the International Society of Arboriculture.
The tree ordinance is to include criteria for evaluating potential conflicts which may arise when trees uplift sidewalks or where new sidewalks are being constructed. Potential mitigation may include root pruning, modification of frontage improvements, root barriers, relocation, and removal and replacement.
Do by 2029 FY 24/25 2027 Tree maintenance
specifications and plansdeveloped
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15 LEAD DEPT. IMPLEMENTATION MEASURE STATUS START
YEAR
TARGET
YEAR TO
COMPLETE
COUNCIL
DIRECTED YEAR
TO COMPLETE
BUDGET NEEDS?
DESCRIBE (e.g. STAFF,
FUNDS)
NOTES
Public Works Adopt a Street Design Manual based on the Model Design Manual of Living Streets.
Do by 2029 FY 25/26 2027 Additional staffing
support needed funding
for consultant $50Ͳ100K
Staffing and prioritzation of
workloads
Public Works Update the Climate Action Plan Do by 2029 FY 25/26 2027 Estimated cost is $150,000. Staff will seek
potential grant funding
Public Works The City will develop a feasibility study for the potential to develop and implement a utilities undergrounding plan, where feasible and where costs of such undergrounding do not pose economic hardship Do after 2029 Grant funding would
likely be needed. The
CityͲwide cost to
underground utilities is
likely to be well above
100 million dollars
Currently, the City is working
on phase 1 & 2 of
undergrounding utilities inthe Downtown TͲzone. Staff
is waiting on a SDG&E cost
estimate. When received,
staff will provide an update
to City Council
)LVFDO<HDU*HQHUDO3ODQ6WUDWHJLF,PSOHPHQWDWLRQ3URJUDP )LVFDO<HDU*HQHUDO3ODQ6WUDWHJLF,PSOHPHQWDWLRQ3URJUDP 9B-14
16 LEAD DEPT. IMPLEMENTATION MEASURE CHANGES
BPR Work with community groups to help promote and establish projects that help celebrate the City’s surf heritage. Change to ongoing CommunityDevelopment
Update the Zoning Ordinance to establish a Housing Overlay and objective design standards to comply with State laws requiring streamlined review of new development that includes affordable and senior housing. This is a housing element action plan requirement.
Add
CommunityDevelopment
Review and update City landscaping and irrigation requirements for public and private development to ensure regulations promote droughtͲtolerant landscaping and systems best practices.
Change to ongoing
CommunityDevelopment
Working with LAFCO, update the City’s Sphere of Influence and Municipal Services Review to address potential development in unincorporated areas adjacent to the City.
Change to ongoing
CommunityDevelopment
Amend the Zoning Ordinance to establish standards that allow for farmers markets, food cooperatives, community gardens, and similar temporary agricultural retail uses in commercial areas; and allow small, neighborhoodͲserving markets within easy walking and biking distance from most residential areas.
Consolidate
CommunityDevelopment
Review and where appropriate, amend zoning standards and design guidelines to allow added flexibility in land uses in the Downtown/TͲZone Focus Area to respond to changing economic market forces over time.
Change to ongoing
CommunityDevelopment
Conduct public meetings or design charrettes, including community stakeholders, to discuss ways to identify, protect and enhance Downtown Village Character. Based on meeting findings, consider updating and refining a Downtown Mission Statement which new projects must follow, and consider adopting new development regulations such as formͲbased codes or objective design standards to improve the effectiveness and predictability of the design review process, including how to accommodate commercial development on small mixedͲuse zoned lots. This includes but is not limited to potentialformͲbased standards for Avenida del Mar and El Camino Real with emphasis on the commercial core in the TͲZone.
Consolidate
CommunityDevelopment
Consider amending the Zoning Ordinance to allow keeping chickens in lowͲdensity residential zones for homeͲbased egg production and nonͲchemical pest control. City will establish guidelines and specific zoning standards for poultry raising in lowͲdensity residential zones.
Consolidate
3URSRVHG6,3&KDQJHVIRU)<
3URSRVHG6,3&KDQJHVIRU)<
9B-15
17 LEAD DEPT. IMPLEMENTATION MEASURE CHANGES
CommunityDevelopment
Update the Emergency Shelter Overlay (ESO) development standards, evaluate additional areas in the City for inclusion in the ESO, and amend the overlay to ensure it consists of up to five to ten acres that is suitable for development with access to transportation and services. This is a housing element action plan requirement.
Add
CommunityDevelopment
Consider changes to the Zoning Ordinance or incentives that preserve “experiential retail uses” in key shopping areas along Avenida Del Mar and El Camino Real, from the Downtown/TͲzone to North Beach. Future changes in use must be sensitive to adjacent residential uses. [Experiential retail uses are those that enhance consumer interaction, drive repeat visits and purchases, and create distinction. This experience can only be achieved in “brick and mortar” retail establishments—not online.]
Consolidate
CommunityDevelopment
Review the Zoning Ordinance, Hillside Development Ordinance and other City standards and amend if necessary to ensure regulations and guidelines adequately address ridgeline preservation, access roads, driveway and site design, and architectural and sign design to protect hillsides, coastal canyons and bluffs, and beaches.
Change to ongoing
CommunityDevelopment
Encourage public and private entities to ensure that buildings housing critical public facilities, such as schools, hospitals and emergency services, are seismically strengthened to meet applicable building codes.
Change to ongoing
CommunityDevelopment
Consider design guidelines and zoning standards for North Beach that implement goals and policies for the North Beach/North El Camino Real Focus Area.
Consolidate
CommunityDevelopment
Evaluate the locations of fast food outlets and driveͲthrough restaurants and where applicable, establish zoning standards for the spatial distribution of such uses.
Consolidate
CommunityDevelopment
Identify and pursue opportunities to improve gateways with the creation of a gateways program and/or updates to the Design Guidelines.
Consolidate
CommunityDevelopment
Prepare and adopt Design Guidelines for Historic Preservation that describe design methods and standards for development on or adjacent to sites with historic resources; including buildings in the Architectural Overlay with distinctive architecture other than Spanish Colonial Revival.
Consolidate
3URSRVHG6,3&KDQJHVIRU)< 3URSRVHG6,3&KDQJHVIRU)< 9B-16
18 LEAD DEPT. IMPLEMENTATION MEASURE CHANGES
CommunityDevelopment
Prepare Sign Design Guidelines and incorporate them into the Design Guidelines. Preparation of the Guidelines will involve business, sign designers and manufacturers in their preparation and provide followͲup education.
Consolidate
CommunityDevelopment
Update the City’s Design Guidelines to address crime prevention features in the orientation and design of new buildings and public facilities.
Consolidate
CommunityDevelopment
Update the Design Guidelines for Architectural Overlay areas where policies allow “Other Spanish” architectural styles in addition to Spanish Colonial Revival, such as Mission, Monterey, Italianate, and Tuscan; and include a “Surf Zone” architectural style in the South El Camino Real area east of Interstate 5, to allow additional design flexibility.
Consolidate
CommunityDevelopment
Update the Design Guidelines to clarify encouraged design principles for Spanish Colonial Revival, including the incorporation of the Henry Lenny Design Guidelines.
Consolidate
CommunityDevelopment
Update Zoning Ordinance to avoid penalizing commercial developments that include exterior patios, paseos and other similar outdoor use areas by allowing usable outdoor spaces to meet minimum Floor Area Ratio requirements.
Consolidate
CommunityDevelopment
Consider pointͲofͲsale efficiency retrofit requirements. Recommend delete CommunityDevelopment
With the update of Design Guidelines, consider guidelines that highlight cultural or historic themes for different General Plan Focus Areas that provide cohesion CityͲwide, without compromising their distinctiveness.
Consolidate
CommunityDevelopment
Evaluate the effectiveness of Inclusionary Housing Program in facilitating the development of all income levels, and conduct a feasibility study to evaluate increasing the inclusionary housing requirement. This is a housing element action plan requirement.
Add
CommunityDevelopment
Complete a parking management plan for the coastal zone in support of restablishing an inͲlieu fee program, parking credit for eͲbikes, and other alternative parking programs.
Add
CommunityDevelopment
Update the City's historic structures survey. Add
3URSRVHG6,3&KDQJHVIRU)< 3URSRVHG6,3&KDQJHVIRU)< 9B-17
19 LEAD DEPT. IMPLEMENTATION MEASURE CHANGES
CommunityDevelopment
Implement and get grant funding for a sign plague program to identify historic resources in the North Beach historic district. Add Public Works The City will develop and implement a utilities undergrounding plan to avoid the adverse impacts to aesthetic resources of public utilities and unmanned telecommunications facilities, where feasible and where costs of such undergrounding do not pose economic hardship. Where undergrounding is determined by the City to not be physically possible, such features shall be located and designed to reduce their visibility and in developed areas, consistent with prevailing architectural character and scale. In beaches, parks and open spaces areas, such facilities shall be designed and located to blend in with natural colors, textures and landforms.
Consolidate
Public Works Update priorities for the undergrounding of overhead utility lines, including implementation plan and funding strategies. Consolidate Public Works If necessary to mitigate potential impacts, the City will implement improvements identified as mitigation measures in the Final Environmental Impact Report for the Centennial General Plan.
Change to ongoing
Public Works Work with neighborhood volunteers to establish a Zero Trash chapter, or similar organization devoted to keeping San Clemente litter free. [Link to ZeroTrash.org]
Change to ongoing
Public Works Explore the feasibility of establishing a City grant program to provide funding support for local energy retrofitting projects. Recommend delete Public Works Develop a Tree Ordinance. The ordinance will consider standards and procedures for cityͲowned property tree selection and removal, preservation and maintenance and the establishment of a tree canopy percentage target, based on standardsencouraged by the International Society of Arboriculture. The tree ordinance shall include criteria for evaluating potential conflicts which may arise when trees uplift sidewalks or where new sidewalks are being constructed. Potential mitigation may include root pruning, modification of frontage improvements, root barriers, relocation, and removal and replacement.
Consolidate
Public Works Establish mode shift/share goals, and track mode shift to quantify greenhouse gas reductions. Consolidate 3URSRVHG6,3&KDQJHVIRU)< 3URSRVHG6,3&KDQJHVIRU)< 9B-18
20 LEAD DEPT. IMPLEMENTATION MEASURE CHANGES
Public Works Update the Master Landscape Plan for Scenic Corridors. The update will reconsider the tree palette, size, spacing, and irrigation guidelines for streets, neighborhoods, and districts, based on several factors such as water use, desired visual character, plant coverage, topography, public view corridors, and the Tree Ordinance.
Consolidate
Public Works Consider adopting an ordinance to establish an antiͲidling zone (e.g. cars waiting to pick up students at schools). Consolidate Public Works Review the standards established by the International Society of Arboriculture and adopt a citywide maintenance plan for street trees and CityͲowned trees, including trimming and pruning procedures, which cultivates the full potential of street trees as providers of shade and designators of key design corridors. Consider referencing the plan in the Tree Ordinance and into city policies for maintenance of cityͲowned trees.
Consolidate
Public Works Prepare and maintain an inventory of sidewalk facilities to determine where pedestrian improvements are most needed to provide a continuous safe route for pedestrians throughout San Clemente.
Change to ongoing
Public Works Implement the Climate Action Plan and Sustainability Action Plan Change to ongoing Public Works Consider requiring future City facilities to meet LEED Certification standards or equivalent standards. Change to ongoing Public Works Conduct regular surveys of City residents to identify preferences and behavior and report on the survey results to the City Council to benchmark travel behavior.
Change to ongoing
Public Works Establish a bicycleͲfriendly business program to encourage and facilitate use of alternative modes of transportation by employees and customers.
Change to ongoing
Public Works Establish a retrofitting plan for outdoor lighting at City buildings, streets and parks. Change to ongoing Public Works Review and if necessary, update the existing City Drainage Master Plan in order to identify deficiencies and needed improvements in the drainage system.
Change to ongoing
9B-19
21 LEAD DEPT. IMPLEMENTATION MEASURE DESCRIPTION
BPR Create a Beaches, Parks and Recreation Master Plan within two years of General Plan adoption and update it at least every ten years.
BPR Prepare a plan which identifies underserved areas in terms of parks and recreational facilities and seek grants or other funding sources to help implement the plan.
BPR Work with private land owners to help expand the community trails network by making privatelyͲowned trails available for public use.
BPR Incorporate golf course management and design improvements in future Beaches, Parks and Recreation master planning.
City Manager List surplus City properties for sale or lease and consider proposals.
City Manager Meet with medical office professionals and hospital administration to better understand their needs and use of City resources, and provide leadership to help them better accomplish the City’s goals and objectives.
City Manager Develop CityͲwide navigational tools such as maps, digital map, GPS, or other emerging technologies. (MͲ2.11 Bicycle and Pedestrian Wayfinding).
City Manager Explore opportunities to expand library services through creative public/private/nonͲprofit partnerships, either as a supplement or alternative to the County operation.
City Manager Update/extend leases at City properties or pursue new tenants for any vacancies at City properties.
City Manager Respond to CovidͲ19 by providing safe facilities for employees and the public.
City Manager Implement emergency measures to facilitate public health and business support through the powers afforded to the Director of Emergency Services during the City’s Declared Local Emergency due to the CovidͲ19 pandemic.
City Manager Consider establishing an Economic Development Manager Position. The Economic Development Manager may be a fullͲtime or partͲtime position, funded by the business community, or through a mix of public and private funding sources.
City Manager Coordinate IT infrastructure needs to allow for staff to work remotely in response to CovidͲ19.
City Manager Establish a Technology Advisory Task Force to serve as a liaison between community stakeholders, staff and elected officials and to make recommendations to the City Council on technology matters.
City Manager Explore opportunities to establish a new San Clemente School District.
City Manager Work closely with the County of Orange Library System and Friends of the San Clemente Library to understand their local services and facilities needs.
City Manager Work with the County of Orange to expedite the expansion of San Clemente’s Public Library into the former Senior Citizen’s Center and to include stateͲofͲtheͲart technology and facilities.
City Manager Adopt and implement an Economic Development Strategy that considers a Business Retention and Expansion (BRE) program, includes a branding and public relations program, and working with the local arts community. The Strategy shall emphasize the midͲ and longͲterm development of the local economy rather than focusing on individual projects. It will incorporate the longͲterm goals of the General Plan, but may also include additional goals with shorter time horizons. The Economic Development Strategy shall establish measurable objectives and a performance evaluation mechanism.
Community Development Update Specific Plans for City areas outside and within the Coastal Zone to be consistent with the Centennial General Plan &RPSOHWHG,PSOHPHQWDWLRQ0HDVXUHV &RPSOHWHG,PSOHPHQWDWLRQ0HDVXUHV 9B-20
22 LEAD DEPT. IMPLEMENTATION MEASURE DESCRIPTION
Community Development Update the Rancho San Clemente Specific Plan Business and Industrial Park regulations to streamline the establishment of business consistent with the purpose and intent of these areas, such as the relocation of automotive uses from El Camino Real.
Community Development Review the Zoning Ordinance and amend if necessary to ensure regulations adequately address nonͲcompatible land uses in habitat areas and passive open space, such as commercial uses, offͲroad motorized vehicle use, offͲtrail, nonͲmotorized vehicle use, hang gliding, grading or other activities that conflict with biological conservation goals or policies.
Community Development Consider amending the Zoning Ordinance to encourage childcare facilities to be established, especially where such facilities are appropriate to serve working parents.
Community Development Update design guidelines in the West Pico Corridor Specific Plan to provide new design guidance for architecture and landscape character.
Community Development Establish design guidelines for automobile repair, fueling stations, outdoor storage, and similar uses which provide for their physical and visual compatibility with the district in which they are located; including standards for building character and design, materials, colors, landscape, signage, lighting, and other pertinent elements.
Community Development Adopt and maintain a City policy of best management practices for live entertainment uses to mitigate noise impacts on residential or other sensitive uses.
Community Development Review and update City landscaping and irrigation requirements for public and private development to ensure regulations promote droughtͲtolerant landscaping and systems best practices.
Community Development Update the Pier Bowl Specific Plan for consistency with the new General Plan or retire the Plan by relocating its unique development standards to the Zoning Ordinance, including residential building heights.
Community Development Review and update the Zoning Ordinance and Design Guidelines to require threeͲstory buildings in the Downtown to reflect highͲquality design and materials and to reinforce San Clemente’s Spanish Village by the Sea architectural character. ThreeͲstory buildings shall require City Council approval.
Community Development Prepare comprehensive parking and circulation strategies for key commercial areas, including: North Beach, Del Mar/TͲZone and Outlets at San Clemente.
Community Development Evaluate Environmentally Sensitive Habitat Areas (ESHAs) to determine their viability, restore degraded ESHAs, remove ESHA designation from areas that no longer contain environmentally sensitive habitat.
Community Development Update the Municipal Code to require end of trip bicycle facilities, as appropriate to the scale and use of the project, such as parking, lockers, and showers in new or major remodels of nonͲresidential sites.
Community Development Consider improvements to our alleyways and paseos to provide alternative pedestrian and bicycle routes.Community Development Update the Zoning Ordinance and Zoning Map for consistency with the Centennial General Plan.
Community Development Create new development standards for mixed use, including standͲalone corridor residential uses. &RPSOHWHG,PSOHPHQWDWLRQ0HDVXUHV
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9B-21
23 LEAD DEPT. IMPLEMENTATION MEASURE DESCRIPTION
Community Development Staff will prepare and implement a public view corridor plan that will be used to help maintain and restore ocean views from the IͲ5 Freeway, by reviewing development for its visual effects, including, but not limited to new buildings, signs and noise walls Community Development Consider amending the Design Guidelines to direct building mass and scale, preserve views of the ocean from InterstateͲ5, and address compatibility between buildings that back onto alleys adjacent to South El Camino Real, specifically addressing transition areas and the interface between commercial or mixedͲuse and residential uses.
Community Development Conduct a Visual Resource Assessment to identify Public View Corridors and specific sections of the Corridors meriting designation and consider expanding the list of the designated View Corridors as a result of the Assessment’s finding.
Community Development Develop a GISͲbased map of significant designated scenic view corridors and significant public views.
Community Development ReͲexamine public space/outdoor area requirements in the Zoning Ordinance and specific plans to identify opportunities to create new public spaces or expand existing ones and to remove barriers to their implementation.
Community Development Develop and consider adopting criteria and procedures for designating historic districts and thematic historic districts. Consider establishing a historic district that 1) provide historic preservation incentives, 2) enforce historic preservation measures in the Zoning Ordinance, and 3) include eligibility criteria for the designation of potential district contributing properties.
Community Development Work with U.S. Postal Service to explore opportunities to reͲdesign the post office located on Avenida Pico, or relocate to a more appropriate location, to provide opportunities for improved circulation and new development opportunities with a master plan for the Pico Plaza area.
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9B-22
24 LEAD DEPT. IMPLEMENTATION MEASURE
BPR Host bicycle and walking safety lessons such as international walk/bike to school day events.
BPR Work with community groups to help promote and establish projects that help celebrate the City’s surf heritage.
BPR Monitor, plan, and implement recreational programs based on demand and resources according to the Beaches, Parks, and Recreation Master Plan.
BPR Establish or improve jointͲuse agreements to maximize public recreation opportunities.
BPR The City will continue to support a dog park and access for dogs in neighborhood parks.
BPR Encourage that healthy foods be served at CityͲsponsored events, meetings, and communityͲwide forums.
BPR Pursue funding such as private contributions, grants, and publicͲprivate partnerships provide, improve or maintain recreational facilities that promote health and wellness, , for fitness stations, benches, bike racks, and play equipment, and other improvements.
BPR Continue collaboration with local health providers to provide public health programs and services in City parks with an emphasis on target areas.
BPR Staff shall continue participation in healthy living programs sponsored by collaborative partners and active youth.
BPR Review and update the Beaches, Parks and Recreation Master Plan, Bike and Pedestrian Master Plan and the City Facilities Master Plan to provide adequate guidance for the provision of parks, trails, and other recreational facilities.
BPR Investigate the possibility of establishing a volunteer staffing program to assist with recreational programs and reduce staffing costs at City public parks and recreational facilities.
City Manager Meet with medical office professionals and hospital administration to better understand their needs and use of City resources, and provide leadership to help them better accomplish the City’s goals and objectives.
City Manager Partner with regional business support agencies, such as the Orange County Workforce Investment Board and the Orange County Small Business Development Center, to ensure businesses in San Clemente are aware of and have access to workforce recruitment and training services, and to ensure residents are aware of and have access to job search and business startͲup training.
City Manager Meet with higher education administrators, trade school organizations and local businesses to better understand the opportunities to attract an educational or occupational training anchor in the Professional Business Overlay area.
City Manager Continue to support and promote an annual business awards program to recognize San Clemente’s outstanding business citizens.
City Manager Implement and update the Technology Strategic Plan as needed to guide communication and information technology decision making, budgeting, and implementation across all City functions and operations. The updates are to reflect new technology initiatives and technological advancements, while adapting to changing business needs and financial conditions.
City Manager Develop Geographic Information System solutions for public engagement, spatial analysis, decision support, and mapping and visualization.
City Manager Encourage City officials and employees, as well as other employers, to participate in “Bike to Work Month” and “Bike to Work Week.”
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9B-23
25 LEAD DEPT. IMPLEMENTATION MEASURE
City Manager Work with other public agencies and nonͲprofit organizations to help ensure all communityͲserving facilities, such as libraries, health centers, wellness centers, recreation facilities and parks are universally accessible.
City Manager Continue CityͲsponsored Mayor’s Walks and similar activities to encourage residents’ participation in community events and encourage healthy neighborhoods.
City Manager Ensure that Police Services continues to work with neighborhoods to promote safety and the “Neighborhood Watch Program.” City Manager Promote and support a City Employee Wellness Program.
City Manager Partner with Orange County Fire Authority to pursue grant and other funding opportunities for appropriate Fire and Emergency Medical Services measures, staffing, and facilities, and to support wildfire mitigation efforts in the City and in surrounding open space areas such as the Richard and Donna O’Neill Conservancy and San Onofre State Beach.
City Manager Information Technology staff will periodically review and update an emergency preparedness and response plan into overall City Emergency Response Plan.
City Manager Support and maintain an Active Ambulance Subscription Service.
City Manager Explore opportunities to expand library services through creative public/private/nonͲprofit partnerships, either as a supplement or alternative to the County operation.
City Manager Collaborate with art associations, nonͲprofits, businesses, educational institutions and the private sector to provide more opportunities and venues for cultural arts programs, including the establishment of a performing arts venue in San Clemente.
City Manager Maintain City participation in the Richard and Donna O'Neill Conservancy, located on the Reserve at Rancho Mission Viejo.
City Manager City shall periodically update its standards for the provision of public services to reflect current needs and costs, including:
fire/emergency medical, library, and police.
City Manager If annexation to the City is considered, the potential annexation shall require preparation of an economic impact analysis.
City Manager The City will study and adopt updated fees and other appropriate financing measures to increase revenue and ensure new inͲCity development pays its share of the costs of new services and facilities needed to serve it.
City Manager Pursue grant opportunities for Economic Development or Capital Improvement projects that would benefit the public Community DevelopmReview and update City landscaping and irrigation requirements for public and private development to ensure regulations promote droughtͲtolerant landscaping and systems best practices.
Community DevelopmMeet with developers to better understand changing opportunities and constraints (physical, regulatory and financial), and use feedback to maintain and implement effective standards for development that fulfills City goals.
Community DevelopmWorking with LAFCO, update the City’s Sphere of Influence and Municipal Services Review to address potential development in unincorporated areas adjacent to the City.
Community DevelopmReview and where appropriate, amend zoning standards and design guidelines to allow added flexibility in land uses in the Downtown/TͲZone Focus Area to respond to changing economic market forces over time. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-24
26 LEAD DEPT. IMPLEMENTATION MEASURE
Community DevelopmReview and update regulations and design guidelines as necessary to reflect best practices in architectural design, landscaping and maintenance.
Community DevelopmReview and update the Zoning Ordinance and Design Guidelines to streamline the development review process, including the possibility of parking waiver and inͲlieu fee programs and other incentives that encourage the rehabilitation and facade upgrades in the Downtown Core.
Community DevelopmConsider nominating properties for inclusion on the National and/or State Register of Historic Places when registration criteria is met.
Community DevelopmPursue financial resources from state, federal and private sources, and other funding options, including the possibility of publicͲ private partnerships, to support of historic preservation objectives.
Community DevelopmParticipate in the National Trust for Historic Preservation Main Street Program. [http://www.preservationnation.org/mainͲstreet/]
Community DevelopmMaintain the City’s list of designated Landmarks and Historic Resources.
Community DevelopmContinue to support and explore preservation incentives and potential financial assistance, such as rehabilitation tax credits, facade easements, preservation grants, transfer of development rights, zoning incentives, and state, federal, nonͲprofit assistance and private donations, permit fee waivers, and rehabilitation loans.
Community DevelopmProvide the public with technical assistance and information on preservation methods and promote the use of California’s Historic Building Code for preservation of historic resources. This information may consist of historic preservation materials and media for homeowners, realtors, contactors and developers to educate the public on requirements, guidelines and processes.
Outreach should be provided through workshops for homeowners, developers, real estate professionals and others describing the benefits and obligations of owning historic property and the incentives available for rehabilitation.
Community DevelopmReview the Zoning Ordinance, Hillside Development Ordinance and other City standards and amend if necessary to ensure regulations and guidelines adequately address ridgeline preservation, access roads, driveway and site design, and architectural and sign design to protect hillsides, coastal canyons and bluffs, and beaches.
Community DevelopmDevelop and provide training for Cultural Heritage Board and City staff on the Secretary of the Interior’s Standards for the Treatment of Historic Properties, the San Clemente preservation ordinance, the California Historical Building Code, and other preservation information.
Community DevelopmMaintain Certified Local Government (CLG) status.
Community DevelopmEstablish and regularly update a list of qualified architectural historians to use for project consultation.
Community DevelopmReview discretionary development applications for consistency with historic preservation policies in the General Plan, the Historic Preservation Ordinance and zoning standards, the Secretary of the Interior Standards for the Treatment of Historic Properties, and the Design Guidelines.
Community DevelopmEncourage public and private entities to ensure that buildings housing critical public facilities, such as schools, hospitals and emergency services, are seismically strengthened to meet applicable building codes. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-25
27 LEAD DEPT. IMPLEMENTATION MEASURE
Community DevelopmWork with public works through the CIP to identify and pursue public improvements adjacent to or on properties with historic resources .
Community DevelopmImplement a historic plaque program for all historic resources. Plaque designs shall be consistent with the adopted wayfinding sign program.
Community DevelopmContinue to assign City urban planners with specialized knowledge and experience in specific business districts to serve as liaisons in the City’s awardͲwinning Business Liaison Program. The liaisons provide services to business owners. Services include onͲsite meetings to learn business owner needs and explain how to access City resources, where possible, to help businesses accomplish their goals and objectives.
Community DevelopmSupport Business Improvement Districts or similar measures for Del Mar/TͲzone, Los Molinos, El Camino Real, Pier Bowl, North Beach and other commercial districts. The districts should generate revenue to maintain each area, to support special events, and to publicize each area. The districts may also be empowered (or a separate financing vehicle established) to provide physical improvements, such as parking facilities, landscaping, lighting, and pedestrian and bicycle facilities.
Community DevelopmExplore opportunities to partner with a business “incubator” in San Clemente.
Community DevelopmAssess parking needs in Del Mar/TͲZone, Pier Bowl, and North Beach every five years, or as needed, and implement solutions to identified parking deficiencies to achieve the City’s Vision and Strategic Plan.
Community DevelopmContinue to enhance the beaches and beach support facilities at the North Beach train station, recognizing their importance as City gateways.
Community DevelopmWork with the State, Federal and County agencies to advocate strict enforcement of laws against the sale to or use of alcoholic beverages and tobacco products by minors.
Community DevelopmWork with governmental and nonͲgovernmental agencies to stem the availability of illegal drugs and to prevent substance abuse.
Community DevelopmEncourage restaurants to provide nutritional information to help customers make healthy dining choices and recognize those that do.
Community DevelopmContinue to promote local health service providers participation in communityͲwide health fairs and similar events.
Community DevelopmContinue to cooperate with nonprofit health organizations to provide noͲor lowͲcost health services on a regular basis.
Community DevelopmWhere feasible, the City will implement the Vista Los Mares Revitalization recommendations in the University of California at Irvine’s Healthy Community Guide (March 2012), as grant funding is available.
Community DevelopmContinue to require open space dedication or appropriate park inͲlieu fees as part of the development review process.
Community DevelopmIdentify and protect riparian corridors through zoning, easements or other measures that ensure effective, longͲterm conservation.
Community DevelopmContinue to provide public education materials regarding the City’s sensitive habitats, the values of watershed, biological resources and sensitive habitats and how to protect them.
Community DevelopmReview discretionary development applications to ensure projects follow mitigation measures of the General Plan Environmental Impact Report, including AQMD air quality requirements. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-26
28 LEAD DEPT. IMPLEMENTATION MEASURE
Community DevelopmProtect the public’s right of coastal access where established through public ownership, legislative authorization prescriptive rights, as adjudicated by a court of law. Where appropriate and legally permissible, new development shall be designed to provide public access or be required to provide public access or irrevocable offer to provide public access, as a condition of development.
Community DevelopmIdentify and require property owners to remove all nonͲpermitted structures, including signs and fencing, which inhibit legal public access.
Community DevelopmUpdate the City’s website to facilitate regional access from Interstate 5 to coastal destinations (e.g., Del Mar, Pier Bowl, North Beach), primary beach access points, parks, public parking areas, prominent natural features and City entry points.
Community DevelopmPreserve existing and identify opportunities for and encourage new low cost overnight accommodations in the Coastal Zone.
Community DevelopmAccess management programs for Capistrano Shores and the private beach area north of Capistrano Shores, La Ladera, Cyprus Shores, Cyprus Cove, and Cotton’s Point private communities shall be prepared when development is proposed in one of these private communities and a property owner is required to dedicate public coastal access. The purpose of such programs shall be to provide maximum public access consistent with the Coastal Act of 1976. The access management programs shall be implemented by the City of San Clemente, other public agencies or by private homeowner associations that accept the offers of dedication. The access management program shall include the following:
a. Establishment of hours of public access which shall include, at a minimum, the hours between sunrise and sunset, and b. The provision of aesthetically pleasing bicycle racks for the appropriate number of bicycles based on use and site conditions, andc. The provision of signage at the entrance to the private communities in order to make the public aware of the existence of the accessway and its hours of operation, and
d. The provision of a public restroom facility, and
e. The provision of signage relating to proper animal management and animal waste disposal on the beach trail.
Community DevelopmUpdate hazard maps (e.g., sea level rise, flood zones, etc.) as new information becomes available.
Community DevelopmPrepare and implement a shoreline management strategy which includes, but is not limited to, the following:
a. An examination of local and regional longͲterm erosion rates and trends to identify and plan for shoreline changes. b. An examination of mean sea level elevation trends and future sea level rise projections to help determine future erosion rates and plan for potential shoreline changes.
Community DevelopmReview and update building, zoning, and grading codes to ensure adopted standards are appropriate to mitigate potential geologic, seismic, soils, flooding, and noise hazards, and would comply with the AlquistͲPriolo Act if an active fault were identified in the City.
Community DevelopmObtain and maintain information on fire and wildfire hazards and home, business, and open space fire mitigation measures. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-27
29 LEAD DEPT. IMPLEMENTATION MEASURE
Community DevelopmReview the Existing and Future Noise Contour Maps and Noise Ordinance for applicability to each development project to identify potential impacts to sensitive uses.
Community DevelopmWorking with other agencies and property owners, the City will seek to reͲestablish ocean views blocked by noise barriers, where feasible.
Community DevelopmAs part of a larger regional effort, improve safety in the Quiet Zone by using targeted and directed measures to reduce noise to within acceptable General Plan levels.
Community DevelopmContinue communication and cooperation efforts between City officials and CUSD, especially in the areas of population projections, safety and security, circulation and pedestrian elements, development of schools and funding sources, and monitoring of development activities to prevent overcrowding of schools and help meet future educational needs.
Community DevelopmIncorporate unique public art in public improvements such as street lighting, sidewalks, walls, bridges and public buildings.
Community DevelopmContinue coordination among the City and other human servicesͲrelated agencies and institutions, both locally and regionally.
Community DevelopmReview structures intended for human occupancy located in the 100Ͳyear flood plain for conformance with local, State and Federal (FEMA) requirements.
Community DevelopmMaintain a formal communication process with Camp Pendleton to stay informed of land use, noise, and other issues relating to military sites adjacent to the City.
Community DevelopmCommunity Development Department staff will annually evaluate progress in achieving the Strategic Implementation Program and other General Plan milestones. Staff will report its findings to the Planning Commission, City Council, and State agencies as necessary.
Community DevelopmCommunity Development Department staff will develop annual Centennial General Plan and Housing status reports. Reports will include a system of indicators or other feedback mechanisms to track the General Plan’s progress toward achieving its goals and community vision. The reports will be used to inform the Planning Commission, City Council, and the Long Term Financial Plan and annual budget process.
Community DevelopmCommunity Development Department staff will annually review the General Plan to ensure internal consistency and consistency with other Federal, State and local regulations and policies.
Community DevelopmCommunity Development Department staff will review each new Capital Improvement Plan and Long Term Financial Plan for consistency with the General Plan and report its findings to the Planning Commission and City Council.
Community DevelopmThe City will collect an impact fee as part of development applications or permits to offset costs of maintaining the Centennial General Plan, including updating web based text and graphics. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-28
30 LEAD DEPT. IMPLEMENTATION MEASURE
Community DevelopmWith clear communication and effective coordination among private and nonͲprofit organizations, improve awareness and promote the following:
a. The City’s rich local arts, history and culture.
b. Dark skies.c. Organic gardening and other health and wellness issues. d. City historic resource appreciation and preservation. e. Social and housing services.f. Residential landscape plantings in coastal canyon and bluff areas. The information should address recommended plant types and their care, invasive plants removal, and landscaping for fire safety. g. Maps of hazard areas, land use plans, etc.
h. Energy conservation.
i. Liaison and customer service programs.
j. Preservation and creation of coastal terrestrial wildlife or plant sanctuaries.
Community DevelopmMaintain and expand the Wayfinding Sign Program and City website to facilitate regional access from Interstate 5 to popular destinations (e.g., Del Mar, Pier Bowl, North Beach), primary beach access points, parks, public parking areas, prominent natural features and City entry points.
Public Safety Consider designating a law enforcement liaison officer for the bicycle and pedestrian community.
Public Safety Monitor beach attendance and trends in beach usage, using the data to develop projections for future lifeguard tower and staffing needs.
Public Safety Support and maintain active programs to enhance ocean safety through community education programs such as: School Outreach program; Junior Lifeguards; safety presentations to civic groups; distribution of rip current awareness materials to hotels, trolleys, and MetroͲlink Beach Train; Ocean Safety Public Safety Announcements (PSA’s) on YouTube; and Neighborhood Beach Watch program teaching proficient surfers how to safely assist others in the ocean.
Public Safety Monitor beach erosion and the limitations reduced beach widths will have on emergency transportation access and lifeguard tower placement. Develop alternative lifeguard tower designs, and methods for safely transporting equipment, personnel, and injured persons as necessary.
Public Safety Pursue emergency services grants and other funding opportunities for Marine Safety staffing, facilities, training, and programs.
Public Works If necessary to mitigate potential impacts, the City will implement improvements identified as mitigation measures in the Final Environmental Impact Report for the Centennial General Plan.
Public Works Develop strategies to improve transit, pedestrian and bicycle access and reduce congestion, possibly including shuttle services and bicycle facilities.
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9B-29
31 LEAD DEPT. IMPLEMENTATION MEASURE
Public Works Work with neighborhood volunteers to establish a Zero Trash chapter, or similar organization devoted to keeping San Clemente litter free. [Link to ZeroTrash.org]
Public Works Consider traffic calming strategies in the area.
Public Works Develop a new streetscape and landscaping plan and Safe Routes to School program to implement the Mobility and Complete Streets Element and Bicycleand Pedestrian Master Plan.
Public Works Expand and upgrade the City's important public places, giving high priority to urban design and streetscape improvements in the following areas, in no particular order:
a. North Beachb. South El Camino Real, between TͲZone and Interstate c. Los Molinos d. South El Camino Real, south of Avenida Magdalena
e. Del Mar/TͲZonef. Pier Bowl
g. South El Camino Real, between Interstate 5 and Avenida Magdalena h. Camino de Estrella/Camino de Los Mares
i. North El Camino Real
Public Works Establish programs to maintain clean, attractive sidewalks in commercial areas.
Public Works Implement the Bicycle and Pedestrian Master Plan, including candidate projects in subject to more detailed engineering studies.
Public Works Working with other agencies, the City will seek grants to help develop, operate and maintain a comprehensive trail system through San Clemente’s open spaces.
Public Works Consider preparing detailed concept plans to evaluate alternate visions for major MPAH corridors, and address types of multiͲmodal improvements that can be included within the constrained rightsͲofͲway (unless it is decided to acquire more rightͲofͲway) for various alternatives.
Public Works Identify and designate Class 2 bike lanes where considered appropriate and there is sufficient curbͲtoͲcurb street paveout width.
Public Works Install vehicle actuation to detect bicycles (CVC 21450.5) and install bicycle detector pavement markings at traffic signals using best practices and adopted State or Federal standards when intersections with signals are rehabilitated.
Public Works Periodically review (for example, when the Bicycle and Pedestrian Master Plan is updated and as part of the Long Term Financial Plan process) official databases of bicycle and pedestrian accidents, analyze their causes and locations, and strive to reduce accidents through infrastructure improvements, community outreach and education and law enforcement efforts. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-30
32 LEAD DEPT. IMPLEMENTATION MEASURE
Public Works Integrate walking routes into new greenways and open space areas, where appropriate, and encourage them in existing greenways and open space areas.
Public Works Provide training opportunities for engineering and planning staff on ways to integrate bicyclists and pedestrians with the transportation network.
Public Works Provide training and public outreach opportunities about bicyclists’ and pedestrians’ legal rights and duties for City engineering and planning staff, as well as for law enforcement officials.
Public Works Provide an outreach and education component to coincide with the first installation of any new type of bicycle facility as part of the implementation
of the associated capital improvement project.
Public Works Provide assistance to school districts in facility planning and transportation operations to ensure safety for users of all modes during school pickͲup, dropͲoff and other special events.
Public Works Retrofit streets and require developments to install public improvements that provide disabled access and mobility on public streets, as required by State or Federal law.
Public Works Work towards closing gaps in San Clemente’s pedestrian network.
Public Works Continue to maintain and enhance the City’s beaches and Municipal Pier and seek outside funding sources to help support these efforts.
Public Works Continue to enhance the beaches and beach support facilities at the Municipal Pier, recognizing their importance as City gateways. and North Beach train stations
Public Works Seek sand nourishment and replacement funding opportunities to ensure beachgoers have a high quality beach experience and to maintain ongoing monitoring activities.
Public Works Continue to provide and maintain beach fire pits in designated public beach locations.
Public Works Implement the Bicycle and Pedestrian Master Plan by allocating a portion of the annual City budget to complete sidewalk projects that infill public sidewalk gaps and provide connectivity.
Public Works Maintain upͲtoͲdate information regarding the location of mineral resource zones in the City.
Public Works Maintain the San Clemente Beach Trails as part of the California Coastal Trail siting and design standard contained here.
Public Works Periodically inventory beach access facilities to identify access needs. Based on the inventory, prepare capital improvements projects and/or establish schedule for renovating access facilities, and update the City’s wayͲfinding program to facilitate regional access from Interstate 5 to coastal destinations (e.g., Del Mar, Pier Bowl, North Beach), primary beach access points, parks, public parking areas, prominent natural features and City entry points. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-31
33 LEAD DEPT. IMPLEMENTATION MEASURE
Public Works Seek funding to maintain and improve access ways, implement complete streets projects as identified in the Mobility and Complete Streets Element, and to enhance public coastal access, including:
a. Improved pedestrian railroad crossings through the construction of atͲgrade, aboveͲgrade, or belowͲgrade crossings at existing accessways.b. Additional offͲstreet public parking spaces at or near public coastal access ways through improvements of existing beach parking lots and creation of parking lots, where feasible.
Public Works Implement City Policies and Procedures (effective date September 5, 2001) regarding Management of Beach Facilities in terms of their maintenance, replacement, protection, or relocation.
Public Works When feasible, make information on fault locations, soil hazards and areas of landslide or liquefaction publicly available, on request.
Public Works Review and update drainage and water retention studies and improvement plans to incorporate appropriate best practices and Federal, State, and County flood control regulations.
Public Works Work with local, State and Federal agencies to reduce highwayͲgenerated noise levels to within acceptable General Plan levels.
Public Works Continue to use a program of truck prohibitions, including appropriate signage, to minimize truck traffic noise impacts to sensitive land uses.
Public Works Continue to collect and disseminate information relating to all hazards, as well as to radiological hazards preparedness, response, and recovery for SONGS.
Public Works Regularly review and update, exercise and revise the San Clemente MultiͲHazard Emergency Plan with appropriate best practices related to the community’s natural and humanͲmade hazards.
Public Works Explore the siting and structural integrity of the City’s critical facilities to identify and plan to mitigate any potential defects related to natural or humanͲmade hazards.
Public Works Continue to maintain and update emergency services, preparedness, response and recovery plans and training programs that meet Federal and State requirements.
Public Works Pursue emergency services grants and other funding opportunities for emergency planning, and public safety.
Public Works Provide educational materials and outreach efforts to inform the public about emergency preparation and response, and about the availability of emergency services.
Public Works Continue to prepare 5Ͳyear Capital Improvement Programs for the City’s storm drainage system.
Public Works Upgrade City facilities by installing energyͲefficient lighting where feasible, upgrading City facilities with EnergyStar or equivalent facilities, updating HVAC systems and establishing shutͲoff times, occupancyͲsensing lighting controls, programmable thermostats and variable speed drive motors in City water and sewer pumping stations.
Public Works Where appropriate and feasible, install solarͲpowered street radar signs.
Public Works Pursue grant funding and other financial resources to offset the public cost of energy retrofits to existing City facilities. 2QJRLQJ,PSOHPHQWDWLRQ0HDVXUHV
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9B-32
34 LEAD DEPT. IMPLEMENTATION MEASURE
Public Works Continue to regularly update development impact fees and/or other financing mechanisms so that development outside City Limits that request use of City services or facilities pays the full costs needed to serve it and does not decrease levels of service to San Clemente residents.
Public Works City shall periodically update its standards for the provision of public services and facilities to reflect current needs and costs, including: drainage/flood control, parks, water and wastewater, and traffic.
Public Works Prepare and maintain an inventory of sidewalk facilities to determine where pedestrian improvements are most needed to provide a continuous safe route for pedestrians throughout San Clemente.
Public Works Implement the Climate Action Plan and Sustainability Action Plan Public Works Solicit state and federal grants to implement the City's energy conservation programs as such funding becomes available.
Public Works Study the feasibility and practicality of obtaining adequate generators for critical City facilities that do not currently have them.
Public Works Consider requiring future City facilities to meet LEED Certification standards or equivalent standards.
Public Works Develop incentives for the use of droughtͲtolerant and California native species in landscape design.
Public Works Working with community volunteers, conservation clubs, youth groups and nonͲprofit agencies, help plan and support conservation activities such as habitat restoration, interpretive signage and tours, trail building, erosion control and litter removal.
Public Works Implement greenhouse gas emission reduction measures of the City’s Climate Action Plan.
Public Works Review and update the San Clemente Municipal Code to further the goals, policies and measures of the Climate Action Plan and Sustainability Action Plan. Enforce provisions and establish additional energy performance requirements in the building code as information becomes available.
Public Works Promote private utility programs for energy audits of existing structures and public education programs to promote energy conservation. The programs should define the current levels of use, compare these to current standards for similar types of structures and prescribe corrective methods to improve conservation.
Public Works Consider potential for achieving LEED Operations and Maintenance certification, or the equivalent, for appropriate City facilities.
Public Works Consider programs that benchmark and subͲmeter all City facilities.
Public Works Research opportunities for Power Purchase Agreements (PPAs) and Sustainable Communities Program (SDG&E) for renewable power on City facilities.
Public Works Continue to promote energy conservation and educate residents on benefits of energy efficiency and solar power generation.
Public Works Continue to promote utility sponsored programs and training for City staff, local businesses and residents.
Public Works Approach SDG&E about forming a local government partnership to develop, operate and maintain energy resources using sustainable practices and materials.
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9B-33
35 LEAD DEPT. IMPLEMENTATION MEASURE
Public Works Support and maintain active programs to enhance community safety, emergency preparedness and disaster response through volunteer programs such as the Community Emergency Response Team Program (CERT), Retired Senior Volunteer Program (RSVP), Explorer Scouts, Neighborhood Watch and Radio Amateur Citizen Emergency Services (RACES).
Public Works Study feasibility and effectiveness of new technologies to reduce the use of chemicals at the water treatment plant.
Public Works Expand local water recycling capabilities.
Public Works Explore the feasibility of desalinization and other regional projects as an alternative resource to reduce the City’s dependency on imported water.
Public Works Maintain and update the City’s Urban Water Management Plan, as needed, and implement and enforce the water conservation ordinance.
Public Works Complete water efficiency use surveys of all City facilities.
Public Works Continue providing education and community outreach on water conservation options and methods.
Public Works Conduct regular surveys of City residents to identify preferences and behavior and report on the survey results to the City Council to benchmark travel behavior.
Public Works Review and amend as necessary and appropriate, drainage impact fees collected from new development for the construction of new drainage facilities necessitated by the new development.
Public Works Continue to implement the Clean Ocean Program and Stormwater Local Implementation Plan to protect local surface water quality and meet or exceed applicable regional, state and federal requirements.
Public Works Continue using rubberized asphalt and recycled aggregate for City street projects, as appropriate.
Public Works Achieve state solid waste requirements including but not limited to a minimum construction and demolition waste diversion requirement of 75 percent.
Public Works Establish a bicycleͲfriendly business program to encourage and facilitate use of alternative modes of transportation by employees and customers.
Public Works Establish a retrofitting plan for outdoor lighting at City buildings, streets and parks.
Public Works Review and if necessary, update the existing City Drainage Master Plan in order to identify deficiencies and needed improvements in the drainage system.
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9B-34
36 1
Subject: FW: pictures of signal light at ECR/Barcelona
Attachments: signal light at El Camino real & Avenida.pptx From: Amanda Quintanilla
Sent: Tuesday, March 19, 2024 11:00 AM
To: Ponsen, Zachary <[email protected]>
Cc: Kim, Ryan <[email protected]>; Hall, Andy <[email protected]> Subject: pictures of signal light at ECR/Barcelona
Good morning Zach,
I wanted to forward these pictures to you of the signal light at the intersection of El Camino Real and Avenida Barcelona. This is for reference.
One picture is of a strike at the Alphabeta in 1973 as a result of the Meat Boycott was a week-long National Boycott in the United States to protest the rapidly increasing meat prices that took place from April 1 to April 8, 1973. The picture was from a fb page.
The second is a picture taken by me in 1981 of a friend, Abraham Paskowitz at the Alphabeta.
The signal light has been there since the time when President Nixon was in office.
The bollards at El Camino Real are to prevent collisions in the area. There may be more traffic because there is more sand at T-street versus the Pier.
Have a nice day.
Amanda
SIGNAL LIGHT AT EL CAMINO
REAL & AVENIDA BARCELONA
THE 1973 MEAT BOYCOTT WAS A WEEK-LONG NATIONAL BOYCOTT IN THE UNITED STATES TO PROTEST THE RAPIDLY INCREASING MEAT PRICES. IT TOOK PLACE FROM 1 TO 8 APRIL 1973.
Signal light in 1973.
SIGNAL LIGHT
IN 1981.
FORTY THREE
YEARS THAT
THE SIGNAL
HAS BEEN
THERE AT
LEAST.
1 From: PEOPLES HOUSE
Sent: Monday, March 18, 2024 7:21 PM
To: Duncan, Chris; Loeffler, Rick; Traffic Engineering; Cabral, Victor; Enmeier, Mark; Knoblock, Steve Subject: El Camino Real / Esplanade intersection - Delineators To the City Council,
A few years back the residents of Avenida Barcelona were given a choice. To choose turning lanes on El Camino Real at Esplanade or to put delineators on El Camino Real at Esplanade. The residents of Barcelona, almost 100% of them, chose the turning lanes on El Camino Real. I feel that our voices fell on deaf ears, because the City chose to put in the delineators. I heard that the City chose that because of some issues with parking spaces on El Camino Real. I feel the City has jeopardized the safety of our street for few parking spots. The children that live on our street are even more at risk because of the amount of traffic. Some 2,000 plus cars are now traveling Barcelona daily. More cars, more speeders. Sure, the survey said the speed slowed but still more cars, more speeders. Backing into my street is a huge risk daily. All of my neighbors have had close calls, like being hit or people trying to go around on the left side of the street. I think the people on Esplanade are happy with less traffic. I know I would be.
I have kids that live on both sides of me, an elderly woman next door and a partially blind man across the street. When I see any of them crossing my street, I am scared shitless for their safety. I shouldn't have to worry like that. I know anything can happen on any street but Barcelona has more volume than most of the streets in the area. WHEN! WHEN! WHEN! is the City going to listen to the people on Barcelona.
Eliminate, get rid of, remove the DELINEATORS. Does someone have to be killed before the City will do something?????.
I liked to say thank you, but I can't, because you are not listening.
Chris & Debbe Peoples - Owners
1 From: Greg Iorio
Sent: Tuesday, March 19, 2024 5:55 AM
To: Traffic Engineering
Subject: Public Hearing - Vertical Delineators on El Camino Real Good morning San Clemente City Council,
I am resident and citizen in San Clemente since 1986. I moved to our current home on Avenida Barcelona in 1995 and take pride in our wonderful beach town community.
As our city has grown, I’ve seen many changes, some good and others not so much but that’s why we can have an open debate to determine what’s best for ALL of us. I use El Camino Real daily to go to work or run errands on the weekends. With only two lanes running North & South, cars turning towards the beach can be an inconvenience at times but that’s life and part of living in a small quaint beach town.
The delineators on El Camino Real at Esplanade have created a problem with unintended consequences for all residents in Southwest San Clemente. The default route is now Barcelona for ALL traffic in the immediate area. This is not only residents, but all delivery vehicles from UPS, FedEx and Amazon. Additionally, with all of the new construction and remodeling going on in the area, all of the large delivery vehicles including lumber, concrete and materials trucks also use Barcelona.
Considering that ALL other streets in Southwest have access to El Camino Real, the delineators should be removed at Esplanade.
We are all adults with a California driver’s licenses and need to take responsibility for our own safety when driving in Southwest.
The delineators are not fair for the residents living on Esplanade and Barcelona and many residents now use the alleys more than ever to bypass the delineators and the traffic light at Barcelona.
I am traveling on business today and if I make it home in time, I will see you tonight at the City Council meeting at 6:00 pm. If not, my vote is to remove the delineators and let our citizens and neighbors take self responsibility for their safety while driving in Southwest.
Thank you,
Greg Iorio
San Clemente, CA
Sent from my iPad
1 From: Debbie Ceideburg
Sent: Monday, March 18, 2024 6:22 PM
To: Traffic Engineering
Subject: Consideration on 03/19/2024 of Intersection Safety Improvement on S. El Camion Real at Esplanade
Honorable Mayor Pro Tem Enmeier, Councilmembers, andTraffic Engineering Staff My wife and I (37+ years homeowners on Avenida Barcelona) respectfully request that the City modify the existing delineators located at the intersection of South El Camino Real and Esplanade.
We specifically request that such modification permit left-hand turns (in a westerly direction) by vehicle traffic proceeding north on South El Camino Real onto Esplanade. That modification also would permit eastward traffic (towards South El Camino Real) on Esplanade to turn left (north) onto South El Camino Real, which is not permitted at this time due to the placement of delineators on South El Camino.
It should be noted that neither South nor North El Camino Real have delineators placed elsewhere other than at the intersection with Esplanade.
When my wife and I purchased our home 37+ years ago, Avenida Barcelona was a quiet street with a low traffic flow. However, several years ago the neighborhood peace was disrupted when delineators were installed on South El Camino. That change seemingly caused all local traffic to be diverted on Avenida Barcelona, which totals an estimated 2,000 cars daily! That is because traffic (including traffic headed towards or from the popular T Street beach) that would otherwise have been on Esplanade and neighboring streets had instead been diverted to Avenida Barcelona due to the placement of the delineators! Esplanade was set up as the gateway, hence the median and wide, divided street and should continue to be the designated way to and from the beach.
That traffic created additional safety hazards for the homeowners on Avenida Barcelona: Many of those cars and trucks were driving so fast on our street that the City subsequently installed speed bumps! (By the way, not all cars/trucks slow down for the berms!) Not only is the volume of traffic heightened dramatically and its associated noise significantly louder, but there have been numerous close calls where vehicles pulling out of or into driveways have narrowly avoided collisions with the traffic speeding on Avenida Barcelona. When backing out of our driveways, residents on Avenida Barcelona have to look in both directions (up and down the narrow street) for on-coming traffic since Avenida Barcelona is a two-way street. On the other hand, residents on Esplanade need only look in one direction for oncoming traffic since Esplanade is a divided street with an island in the middle and traffic proceeds from only one direction.
For these reasons, my wife and I have joined other affected Avenida Barcelona homeowners (and voters) in requesting the foregoing modification of the delineators on South El Camino Real to make our street safer and neighborhood quieter. Thank you for your consideration.
Cordially,
Robert & Debbie Ceideburg
San Clemente, CA 92672
1 From: Terry Iles
Sent: Tuesday, March 19, 2024 6:40 AM
To: Traffic Engineering
Subject: El Camino Real/Esplanade Intersection
Good morning
As a homeowner in San Clemente living on the 100 block of Esplanade I want to voice my strong disagreement to the proposed changes to the El Camino Real/Esplanade intersection. After many accidents at the intersection, the delineators currently installed reduced that number to zero, greatly increasing safety! Not only prohibiting the left turn onto northbound El Camino Real from east bound Esplanade, but the left turn from northbound El Camino Real onto westbound Esplanade. The current scenario is by far the safest (K-rail would be even better), the delineators greatly reduce the flow of traffic down our street. We have many families on our street with elementary aged children which are much safer due to the current improvements. By removing those and installing left hand turn lanes, you will turn Esplanade into a freeway to the beach! Drivers already use the street as a parkway because of the meridian, we have had two of our parked vehicles hit by careless operators. Why create a funnel and have the homeowners/taxpayers suffer the increased traffic noise, speeding vehicles, litter and danger to children and pets?
Lastly why the “Beach Access” signs? You can see the Ocean from the freeway, there’s no mistake which direction to go and everything feeds to the beach anyway. Keep San Clemente the quiet beach town my family has enjoyed for over 40 years.
Respectfully
Terry Iles