San Clemente City Council
August 6, 2024

910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
Mayor Cabral
Mayor Pro Tem Enmeier
Councilmember Duncan
Councilmember Knoblock
Councilmember Loeffler
5:30 p.m. - Closed Session (Special Meeting)
6:00 p.m. - Business Meeting (Regular Meeting)
Councilmember Duncan will be participating
remotely from the following location:
123 Nassau St. New York, NY 10038

CITY OF SAN CLEMENTE
Tuesday, August 6, 2024
City Council
Special and Regular Meeting Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

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

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

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

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

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

1 City Council Special and Regular Meeting Agenda August 6, 2024

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

CLOSED SESSION (5:30 P.M. Special Meeting)
A. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency designated representative: Administrative Services Director Unrepresented employees: All Employees
Employee Organization: San Clemente City Employees Association BUSINESS MEETING (6:00 P.M. Regular Meeting)

CALL TO ORDER
INVOCATION – Senior Pastor, Holland Davis, Calvary Chapel San Clemente

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
A. Recognition of San Clemente High School State Champion 4x800 Track Relay Team
Recognition of the San Clemente High School State Champion 4x800 Track Relay Team.

2. Council Member Reports

2 City Council Special and Regular Meeting Agenda August 6, 2024

3. Oral Communications (Part 1)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. Speakers may address Council once during either Oral Communications Part 1 or Part 2. A total time limitation of 30 minutes is allocated for Oral Communications Part 1, with each speaker being allotted 3 minutes in which to give his or her presentation. Speaker order is determined by the order in which speaker cards are provided to the City Clerk or Deputy City Clerk at the meeting. Speakers that cannot be accommodated during Oral Communications Part 1 will be invited to address Council during Oral Communications Part 2, which appears on this agenda as Item No. 12. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Under the Ralph M. Brown Act, the City Council cannot act on items raised during public comment but may respond briefly to statements made or questions posed, request clarification or refer the item to staff.

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

5. Consideration of agendizing items requiring immediate action Per Government Code section 54954.2(b) and 54956.5. Any items agendized will be considered under New Business, unless otherwise determined by a majority vote of the City Council.

6. Closed Session Report - City Attorney

7. Staff Communications

8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.
8A. CONSIDERATION OF A RESOLUTION CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING

TO THE ELECTORS A BALLOT MEASURE TO ESTABLISH A
THREE-QUARTERS OF ONE CENT (0.75¢) SPECIAL PURPOSE

TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING THE POLICIES

AND PROCEDURES FOR SUCH AN ELECTION, REQUESTING THAT

ORANGE COUNTY PROVIDE ELECTION SERVICES, DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING

THE FILING OF REBUTTAL ARGUMENT
(Agendized by Mayor Cabral, with the support of Councilmember Loeffler and Mayor Pro Tem Enmeier, at the July 17, 2024 City Council meeting.) The City Council will consider whether to place a three-quarters of one

3 City Council Special and Regular Meeting Agenda August 6, 2024 percent (0.75%) special purpose transaction and use (sales) tax on the ballot for the voters to vote on at the general municipal election on November 5, 2024. Under the proposed measure, all funds would be dedicated to resident identified priorities of maintaining local beaches and beach access for residents, keeping sand on local San Clemente beaches, reducing beach erosion, protecting ocean water quality, protecting surfing and ocean swimming locations, and restoring and maintaining the beach trail and the City pier, all of which will help protect San Clemente’s local beach economy.

The City Council will also consider making changes to the proposed measure.

Staff Recommendation
Adopt Resolution No. 24-125 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT
GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING TO

THE ELECTORS A BALLOT MEASURE TO ESTABLISH A
THREE-QUARTERS OF ONE CENT (0.75¢) SPECIAL PURPOSE

TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING THE POLICIES

AND PROCEDURES FOR SUCH AN ELECTION, REQUESTING THAT

ORANGE COUNTY PROVIDE ELECTION SERVICES, DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF REBUTTAL ARGUMENT.

OR
Adopt Resolution No. 24-126 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT
GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING TO

THE ELECTORS A BALLOT MEASURE TO ESTABLISH A ONE HALF CENT (1/2¢) SPECIAL PURPOSE TRANSACTIONS AND USE (SALES) TAX,

ESTABLISHING THE POLICIES AND PROCEDURES FOR SUCH AN

ELECTION, REQUESTING THAT ORANGE COUNTY PROVIDE ELECTION

SERVICES, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF REBUTTAL ARGUMENT.

9. Unfinished Business
None.

4 City Council Special and Regular Meeting Agenda August 6, 2024

10. New Business
10A. DESIGNATION OF VOTING DELEGATE AND ALTERNATE(S) TO

REPRESENT SAN CLEMENTE AT THE LEAGUE OF CALIFORNIA CITIES

ANNUAL BUSINESS MEETING
Staff Recommendation
Determine whether or not to appoint a voting delegate to represent the City at the Annual Business Meeting of the League of California Cities Annual Conference on October 18, 2024, and also determine whether or not to appoint an alternate(s) to vote on the City’s behalf in the event the voting delegate is unable to vote at the Annual Business Meeting.

11. Consent Calendar
All items listed on the Consent Calendar are considered to be routine and will be enacted by one motion without discussion unless Council or Staff requests removal of an item for separate discussion and action.

A. City Council Minutes
Staff Recommendation:
(1) APPROVE THE SPECIAL AND ADJOURNED REGULAR MEETING
MINUTES OF JULY 17, 2024.

B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
(1) ARTS AND CULTURE REGULAR MEETING MINUTES OF MAY 20, 2024.
(2) PLANNING COMMISSION REGULAR STUDY SESSION MINUTES OF MAY 22, 2024.
(3) PLANNING COMMISSION REGULAR MEETING MINUTES OF MAY 22, 2024.
(4) PLANNING COMMISSION REGULAR MEETING MINUTES OF JUNE 5, 2024.
(5) PLANNING COMMISSION SPECIAL MEETING MINUTES OF JUNE 26, 2024.
(6) HUMAN AFFAIRS COMMITTEE REGULAR MEETING MINUTES OF
JULY 9, 2024.
(7) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF JULY 18, 2024.

5 City Council Special and Regular Meeting Agenda August 6, 2024 C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
3068 THROUGH 3073 AND WARRANT NOS.
597545 THROUGH 597748, PAID ON
6-28-24, IN THE AMOUNT OF $1,127,393.42
(2) APPROVE WIRE TRANSFER NOS.
3074 THROUGH 3075 AND WARRANT NOS.
597749 THROUGH 597904, PAID ON
7-5-24, IN THE AMOUNT OF $4,332,970.62
(3) APPROVE HANDWRITE NO. 598028,
WIRE TRANSFER NOS. 3076 THROUGH
3083 AND WARRANT NOS. 597905
THROUGH 598027, PAID ON 7-12-24,
IN THE AMOUNT OF $3,302,333.57
(4) APPROVE WIRE TRANSFER NOS.
3084 THROUGH 3086 AND WARRANT NOS.
598029 THROUGH 598233, PAID ON
7-19-24, IN THE AMOUNT OF $3,708,385.02
TOTAL WARRANT REGISTER $12,471,082.63
Payroll Register
WARRANT NO. 938 AND AUTOMATIC
DEPOSIT ADVISES 95117 THROUGH
95499, FOR THE PERIOD 6-10-24
THROUGH 6-23-24, PAID ON 6-28-24,
IN THE AMOUNT OF $572,917.17
WARRANT NO. 939 AND AUTOMATIC
DEPOSIT ADVISES 95500 THROUGH
95885, FOR THE PERIOD 6-24-24
THROUGH 7-7-24, PAID ON 7-12-24,
IN THE AMOUNT OF $589,545.83
TOTAL PAYROLL REGISTER $1,162,463.00

6 City Council Special and Regular Meeting Agenda August 6, 2024 11D. CONSIDERATION OF APPROVAL OF A LETTER OF OPPOSITION TO ASSEMBLY BILL 2560 REQUIRING LOCAL COASTAL PROGRAMS TO

INCLUDE HOUSING PROVISIONS, INCLUDING DENSITY BONUSES, AND

REDUCING LOCAL CONTROL OF HOUSING BY GIVING OVERSIGHT TO

THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT AND THE CALIFORNIA COASTAL COMMISSION
Staff Recommendation
If the City Council concludes that the provisions of Assembly Bill (AB) 2560 are inconsistent with the land use policies and priorities of the community then:

Adopt Resolution No. 24-121 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE A LETTER IN OPPOSITION TO ASSEMBLY BILL 2560 (ALVAREZ) AND CAUSE THE DELIVERY OF SAID LETTER TO THE CHAIR OF THE CALIFORNIA STATE ASSEMBLY’S LOCAL GOVERNMENT
COMMITTEE.
11E. CONSIDERATION TO SUBMIT A LETTER OF OPPOSITION FOR ASSEMBLY BILL 2557 IMPACTING THE COSTS FOR PROVIDING CONTRACT

SERVICES TO MUNICIPALITIES
Staff Recommendation
If the City Council concludes that the provisions of Assembly Bill (AB) 2557 are inconsistent with the responsible expenditure of tax payer dollars then:

Adopt Resolution No. 24-122 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE A LETTER IN OPPOSITION TO ASSEMBLY BILL 2557 (ORTEGA) AND CAUSE THE DELIVERY OF SAID LETTER TO THE CHAIR OF THE CALIFORNIA STATE ASSEMBLY’S LOCAL GOVERNMENT
COMMITTEE.
11F. CONSIDERATION OF MAYOR CABRAL’S TRAVEL EXPENSES
Staff Recommendation
Authorize an expenditure of up to $550 related to Mayor Cabral's attendance at Senator Nguyen's California Surf Day event.

7 City Council Special and Regular Meeting Agenda August 6, 2024 11G. CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO ONYX PAVING COMPANY, INC. FOR FY 2025 ARTERIAL AND LOCAL STREET IMPROVEMENT PROGRAM, CIP PROJECT NOS.
15317 AND 15322, IN AN AMOUNT NOT TO EXCEED $1,639,000,

AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION

CONTRACT, AND FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 24-123, which will:

1. Find the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322, contract to ONYX Paving Company, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C24- 44, by and between the City of San Clemente and ONYX Paving Company, Inc., providing for the FY 2025 Arterial and Local Street Improvement Program, in an amount not to exceed $1,639,000, in a form substantially similar to Contract No. 24-44 (Attachment 3).

4. Approve a 10% construction contingency of $163,900 for this project. 11H. RESPONSE TO 2023-2024 ORANGE COUNTY GRAND JURY REPORT “E-BIKES FRIEND OR FOE”
Staff Recommendation

1. Adopt Resolution No. 24-124, entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING

RESPONSE TO FINDINGS AND RECOMMENDATIONS IN THE REPORT
OF THE ORANGE COUNTY GRAND JURY - ‘E-BIKES FRIEND OR FOE’.

2. Authorize the Mayor to execute, and direct staff to submit a letter in response to the findings and recommendations noted in the Administrative Report dated August 6, 2024, and on file with the City Clerk, to the Presiding Judge of the Superior Court by September 19, 2024 in substantially the same form as attached to the Resolution as Exhibit A.

8 City Council Special and Regular Meeting Agenda August 6, 2024

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

13. Future Agenda Items

14. Reports
A. Commissions and Committees
B. Council Subcommittee Updates
C. City Attorney
D. City Manager

15. Adjournment
The next Regular City Council Meeting is scheduled to take place on August 20, 2024.

Closed Session will begin at 5:00 p.m. and the Regular Business Meeting will begin at 6:00 p.m. The meeting will take place in the Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

9 City Council Special and Regular Meeting Agenda August 6, 2024

CITY COUNCIL MEETING PROCEDURES

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

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

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

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

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

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

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

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

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

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

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

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 8A.

Submitted By: City Manager
Prepared By: Andy Hall, City Manager
Subject:
..titl e

CONSIDERATION OF A RESOLUTION CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING TO THE ELECTORS A BALLOT MEASURE TO ESTABLISH A THREE-QUARTERS OF ONE CENT (0.75¢) SPECIAL

PURPOSE TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING THE POLICIES AND

PROCEDURES FOR SUCH AN ELECTION, REQUESTING THAT ORANGE COUNTY

PROVIDE ELECTION SERVICES, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF REBUTTAL ARGUMENT ..body Prologue:

The San Clemente City Council has identified the improvement and maintenance of coastal resources, specifically beach nourishment, as the highest priority for the City. 2024 has been a successful year with the anticipated placement of more than 200,000 cubic yards of sand on the beach with the initiation of the United States Army Corps of Engineers (USACE) project between T Street and Linda Lane, and another 30,000 cubic yards of sand placed at North Beach in cooperation with the County of Orange through a permit waiver from the California Coastal Commission. In the previous two decades, the City had only placed a total of 17,000 cubic yards of sand on the beach in the community.

Although almost a quarter of a million cubic yards of sand will have been placed on the beach in 2024, it has been suggested that in order to properly restore the beaches in the community, there will need to be approximately 5-7 million cubic yards of sand placed on the beaches in San Clemente. Furthermore, to maintain healthy beaches like those identified in other Orange County cities such as Newport Beach and Huntington Beach, a long-term beach nourishment program will need to be implemented. Sand, like almost every other type of infrastructure, requires regular maintenance and there simply is not a one and done solution to shoreline preservation and protection.

Historically, the placement of sand has not been a regular activity in San Clemente. Therefore, it has not been included in past budgets, and there are significant costs associated with beach nourishment. To complete the first phase of the USACE project, and to place approximately 30,000 cubic yards of sand at North Beach, cost the City about $5 million ($2.9 million to complete USACE phase 1 and $2 million to place sand at North Beach). Continuation of beach nourishment and the cost associated with that effort is not sustainable with the current resources of the City without making drastic reductions in other City Services. 11 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 2
In order to generate the funding necessary to continue the beach nourishment program, the City Council directed staff to explore potential revenue opportunities and to conduct a survey to determine if there was a likelihood that residents would support a revenue measure. On July 17, 2024, the City Council directed staff to prepare a comprehensive report to consider placing a measure on the upcoming November ballot to increase the sales tax in the City of San Clemente by ¾ of a percent as a “targeted” or Special Tax to provide funding for the improvement and maintenance of coastal resources, primarily beach nourishment.

This report was written to address some very fundamental issues in some detail. In order to reduce confusion and allow readers to obtain basic information without the need to review the details of the report, a prologue was included. For clarification, the prologue is limited to address the merits of a sales tax measure rather than some of the other sources referenced in the report.

However, as the full report is reviewed, readers will find information about a variety of revenue sources, and more in-depth and detailed information about this essential issue. Some of the most vital, yet basic questions include:
 Why do we need a new tax? Improvement and proper maintenance of coastal resources, especially placing sand on the beach, are new expenses in San Clemente that have not been included in the annual budgeted in the past. In order to engage in new and very expensive activities, additional funding sources need to be identified.  Who Pays the Tax? The tax is assessed when a taxable item is purchased. Therefore, both residents and visitors pay the tax. It is important to note that sales tax is not assessed on groceries or medicine.
 How much is the Tax? The City Council directed staff to examine a ¾ of 1 percent increase in the sales tax. Therefore, for every $100 in purchases, the purchaser would pay an additional $0.75 (75 cents). However, staff has also included information about a ½ of 1 percent increase in the sales tax for which the purchaser would pay an additional $0.50 for every $100 in purchases.
 What do other cities pay in Tax? The base sales tax rate in Orange County is 7.75%. At the current time, 10 cities have an increased sales tax and assess an additional sales tax of between ½ of 1 percent and 1.5 percent for a total (base + additional sales tax) of between

8.25% and 9.25%. The cities that assess an additional sales tax include (total sales tax shown):

Fountain Valley = 8.75% Garden Grove = 8.75%
La Habra = 8.25% La Palma = 8.75%
Los Alamitos = 9.25% Placentia= 8.75%
Santa Ana = 9.25% Seal Beach = 8.75%
Stanton = 8.75% Westminster = 9.25%
Additionally, the City of Orange has a measure on the ballot to increase the sales tax ½ of 1 percent from 7.75% to 8.25% and Seal Beach is asking residents for a second increase in their sales tax from the current additional tax of 1% to 1.5% for a total of 9.25%. 12 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 3
 Why do other cities seem to have more tax revenue? The revenue structure for each city is different. A majority of revenue for General Fund expenditures is generated through taxes.

Cities with a significant number of hotel rooms generate far more revenue from Transient Occupancy Tax (TOT) than a city like San Clemente that has relatively few hotel rooms, especially for a coastal community. Other cities have large shopping malls, car dealerships, and other sales tax generating properties. San Clemente has only limited commercial space with no major shopping malls or large car dealerships, with the exception of the San Clemente Outlets. In general, the taxing structure in San Clemente resembles an inland community more than a traditional coastal community with many hotel rooms and visitor serving malls.  What kind of taxes are there and what are we proposing? Why that type of tax? All potential tax revenue was examined. With a limited number of hotel rooms, an increase in TOT will not generate enough revenue to address the coastal concerns of the City Council. Property taxes are assessed only to property owners and visitors do not share in the burden of addressing the coastal needs when only a property tax is assessed. For these purposes, a sales tax where visitors help pay the costs was further examined.  How much will that tax raise per year for the city? It is anticipated that a ¾ of 1 percent increase in the sales tax will generate about $10.1 million per year. A ½ of 1 percent increase in the sales tax will generate about $6.75 million per year. It is estimated that the City will need about $10 million per year to improve and properly maintain the coastal resources of the City.  Have we lost other tax revenue over the past years? The City of San Clemente has lost two significant funding sources in the past several years. In 2012, the tax increment from the Redevelopment Agency created to improve the “Pier Bowl” area was dissolved by the State of California. This resulted in an annual loss of more than $2.4 million. In 2020, the Ocean Protection Fee expired and was not renewed which was a reduction of about $2.3 million in revenue. The tasks of the former Redevelopment Agency and those addressed by the Ocean Protection Fee were absorbed into the General Fund reducing the ability of the City to direct funds to coastal resources.
 How will the tax be spent? The City Council has directed staff to prepare an Ordinance that would place a Special Tax, rather than a General Tax on the ballot. If the measure is placed on the ballot and approved by residents, all funds generated must be spent in the manner identified in the measure. It is anticipated those activities will include:
o Sand replenishment or nourishment on San Clemente beaches o Sand retention and reduction of coastal erosion projects o Improvements and maintenance of coastal access (PAWS, T Street, etc.) o Improvements and maintenance of the beach trail and bridges o Proper maintenance of the San Clemente Pier
o Improved lifeguard facilities
 How much do we need to raise per year to protect our coastal infrastructure? It is estimated that to improve and maintain the coastal resources in San Clemente, specifically to place sand on the beach, will cost about $10 million per year. This number may fluctuate on a year-toyear basis depending on weather (winter storms), major repairs, and similar factors. 13 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 4
 Can the tax be spent on anything the City Council decides? If the tax is passed as a Special or targeted Tax, all funds must be spent on the items identified in the language of the tax measure. Independent audits, tracking within a separate fund, and other safeguards will be implemented to ensure the funds are used correctly.
 How long does the tax last? The tax would remain in place until removed by voters. In many instances, taxes are established for 10 or 20 years. Often projects are debt financed based on the length of the tax. In this case, the City Council has determined that it is critical that the City not spend more than is generated, refrain from debt financing to avoid unnecessary interest expenses, and be able to remove the tax at any time by a vote of the people rather than waiting 10 to 20 years for the tax to expire if the tax is not effective.  Is there an alternative to raising taxes, like cutting costs? Approximately 70% of the General Fund expenses in San Clemente are used for public safety (50% for Sheriff, Fire, Lifeguards and Park Rangers) and maintenance (20%) of parks, streets and other public spaces. The City Council is reluctant to reduce these expenses leaving about 30% of the General Fund (about $25 million) for all other activities such as Parks and Recreation, Engineering, Community Development and Administration. It is always possible to cut expenses, but without reducing public safety and maintenance to generate the funding needed to improve and maintain coastal resources would require an estimated 40% reduction which would significantly impact other services. Nonetheless, each Department Head was asked to provide information to the City Manager indicating how their budget would be reduced by 30-40%.

Upon review of the impact on existing municipal services, staff cannot recommend this action.  Can we raise resources for sand from other sources like the Federal, State, or County governments? Yes, and we should. However, it is unlikely that all the necessary resources could be raised from outside sources. If a ½ of 1 percent sales tax is passed, it would generate about $6.75 million. To accomplish the proposed annual tasks, it is estimated that the expense would be about $10 million. This will require additional funding from outside sources like the County, State, and Federal Governments along with any additional grant funding available. For instance, the current US Army Corps of Engineers project will be 50% funded by the Federal Government.
 Can the OCTA pay for the sand? The Orange County Transit Authority has been and must continue to be good partners if the City hopes to succeed. OCTA will be required to provide mitigation for the work recently completed on the railroad revetment. Once the negotiations with the California Coastal Commission in regard to the mitigation have been completed, it is anticipated that OCTA will be placing some amount, hopefully a substantial quantity, of sand on the beach near the locations where work was conducted on the revetment. However, that is potentially a one-time commitment until and unless additional work on the revetment occurs.  How much sand do we really need? There have been many estimates provided by coastal engineers in relation to the amount of sand needed on San Clemente beaches. The most repeated numbers are between 5-7 million cubic yards, over several years, to restore the beach to its sustainable width and depth. However, this is highly dependent on how fast the sand is placed, weather and many other factors. Regardless of the actual number, with hopes 14 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 5
of placing between 100,000 and 200,000 cubic yards on the beach per year, it will take many years to restore the beach, just as it took many years to deplete the sand from the shoreline.

These and many other issues will be examined in detail in the remaining sections of this report.

Improving and maintaining coastal resources is not an exact science and is highly dependent on a variety of external factors. Therefore, the contents of this report have been generated with the best information now available, but unanticipated events such as larger than normal winter storms, new sources of sand, increased participation from Federal, State and County partners and other unforeseen elements can impact the contents of this report.

Issue Identification
First and foremost, as pointed out in a recent study conducted by former Supervisor John Moorlach and referenced in the Orange County Register, the City of San Clemente is generally healthy from a pure fiscal standpoint. The decision of whether or not to invest in coastal resources is less about balancing the current budget and more about long term stability and proper maintenance of coastal resources, healthy beaches and most importantly, quality of life.

However, how much of the fiscal health is related to the deferral of maintenance of coastal resources. Traditionally, the City has not engaged in larger scale beach nourishment with only a couple of very small sand projects in the past two decades. However, the lack of investment in the beaches has resulted in deteriorating coastal conditions, diminishing sand on the beach, and deferred maintenance of the beach trail and bridges. Certainly, the City could wait until the coastline is in full crisis, but that is not the responsible action. Therefore, the issue identified for further consideration by the City Council follows:

Do the residents support the financial investment needed to improve and enhance coastal resources, specifically to place sand on the beaches of San Clemente? 15 Meeting Date: August 6, 2024 Agenda Item: 8A.

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The chart to the right and discussed above
indicates that San Clemente has a positive net
position unlike several communities in the
County. However, it does not account for the
lack of investment in the beaches.

Properly maintained coastal resources and
healthy beaches are expenses that only 61 of
California’s 482 cities have to address. Many
of the 61 coastal cities evolved with tourism
driven economies and matching revenue and
taxing structures. In Orange County, only 6 of
34 cities are coastal communities; Seal Beach,
Huntington Beach, Newport Beach, Laguna
Beach, Dana Point and San Clemente, north
to south. Not only are infrastructure needs in
coastal communities different than inland cities
(sand costs, lifeguards, parking, visitor
accommodations, etc.), but maintenance in
the highly corrosive marine environment is
more challenging.

A majority of revenue in all Orange County cities is derived from taxes. In the County, 4 of the 6 coastal cities have development patterns and taxing structures based on a tourism economy with a significant number of hotel rooms and a lot of commercial properties, such as Newport Beach to the right. Seal Beach and San Clemente are anomalies to a certain extent, being primarily residential communities with relatively few hotel
rooms and limited commercial areas.

Nonetheless, both of these communities have the
same coastal infrastructure and maintenance
challenges as the other coastal cities. This pattern
is repeated in San Diego County with 7 of 18
cities being coastal cities; Oceanside, Carlsbad,
Encinitas, Solana Beach, Del Mar, San Diego and
Imperial Beach. Most of these cities have
invested or are investing in a tourism-based
economy.

Investment or Cost?
A key element in the consideration of whether to improve and properly maintain the coastal resources of the City is whether the investment is worthwhile. Many critics of sand nourishment will claim that it is temporary and will have to be done again in the future. Like most infrastructure (roads, utility lines, sidewalks, etc.) continuous investment will be required to properly maintain sand on the beach. But there are benefits.

There are certainly real estate considerations. Ocean views, coastal weather, access to the vast California coastal resources, and other amenities have significant impacts on home values. At a 16 Meeting Date: August 6, 2024 Agenda Item: 8A.

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recent gathering entitled “Economics and Resilience of Orange County’s Beaches” at UC Irvine, a number of economic elements were examined. One study indicates that homes near the water are valued approximately 35% higher than inland homes similar in size and amenities. The same study found that 74% of Americans have chosen a vacation at a beach.

But beyond the real estate and tourist dollars is the heart of a beach community. The passion of San Clemente residents extends beyond investments in their home or tourists visiting their business. They are surfers. They walk to the end of the Pier during the holidays to see the lights and the Christmas tree. They walk the beach trail, not just to stay in shape, but to clear their minds and improve their mental health. They fish in the ocean, and watch for a green flash. They would be proud to see San Clemente considered for the Olympic surfing venue.

Healthy beaches and remarkable coastal resources are an investment, not a cost.

Background:

The City of San Clemente has not just talked about placing Sand on the Beach, the City has taken measurable steps and actively pursued beach nourishment. The City Council has indicated that it is critical to demonstrate the ability to undertake and succeed in these complex projects before asking residents to invest in future programs. The obstacles and pitfalls, including environmental concerns, State and Federal permitting and regulations, interruptions of recreational uses, financial implications, and other challenges associated with beach nourishment require many issues to align simultaneously. Improving and protecting coastal resources is far more complicated than is generally understood. The projects in this section illustrate the past and current groundwork in place that will allow the City to continue an effective coastal resource protection program.

United States Army Corps of Engineers T Street to Linda Lane Project Approximately 20 years ago, the City of San Clemente began working with the USACE to develop a program that would eventually place about 2 million cubic yards of sand on the beach between T Street and Linda Lane over a 50-year period with sand placement every 5-6 years. As early as 2014, the City Council was working on the longer-term financial aspects of the project.

Information in the 2014 (emphasis added) Long Term Financial Plan indicated the need to seek funding sources as it was recognized that current funding levels would not support the full term of the project. Unfortunately, during the 10 year interim, little was accomplished to address the long term financial burden and the funding gap remains.

Finally, in 2024, the initial phase of the project was commenced. The Federal Government contributed 65% of the cost with the local agency obligated to provide 35% of the costs. The City was fortunate to obtain additional funding from California State Parks who contributed 85% of the non-Federal share ($4,259,350). The City’s portion of the initial phase was $751,650. However, all future phases of the project will require local funding of 50% of the cost for each phase. It is anticipated that the continuation of the project will require about $2.5 million per year or $10-$12 million each phase if the cost projections prove to be accurate. The current estimate for the total project is just over $250 million with a local obligation of more than $120 million over 50 years. 17 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 8
The pictures above provide a before and after photograph of the San Clemente Coastline between T Street and Linda Lane. It is important to note that the photograph only depicts about ½ of the initial placement with additional sand scheduled to be placed in this location in the fall of 2024.

It is likely that there will be unanticipated project costs. For example, in the first portion of the initial phase, the quality of sand was not acceptable to the City and efforts were taken to identify a new source of sand. The new site was located, but the additional distance resulted in increased costs. According to the agreement, the City is responsible for 35% of additional costs, even though the City has very little input or authority in project operations. These increased costs are estimated to be about $3 million for the City.

North Beach Emergency Sand Placement
The lack of sand at North Beach has reached
a critical stage. At one point the sand beneath
the restroom facility had been scoured out to
the point that people could stand below the
floor of the building. The playground, volleyball
courts and other recreational facilities are no
longer available for use. More importantly,
there is not enough sand on the beach for
placement of a lifeguard tower to protect
beachgoers. The City was notified by the
County of Orange of the availability of
approximately 30,000 cubic yards of sand from
the Santa Ana River that could be placed
above the mean high tide line to address the
critical situation at North Beach. Although the
sand is free, following a competitive bidding process, the delivery and grooming cost of the sand for the North Beach project will be about $2 million (about $67 per yard delivered and groomed).

The project was initiated in late July and will continue for several months.

Sand Compatibility and Opportunistic Use Program (SCOUP) Coastal cities have the opportunity to obtain the permits necessary to implement a SCOUP program. The City of San Clemente had an approved program in the past, but allowed the 18 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 9
permits to expire, likely due to the significant costs of both maintaining active status of the permits and the costs of placing sand on the beach. The City Council has directed staff to reinstate the program and the cost estimated in obtaining the permits for the SCOUP program are estimated at $750,000.

A SCOUP program allows the City to seek beach compatible sand from a variety of sources (river drainage, Prado Dam, Dana Point Marina, construction, gravel pits, etc.) and if the sand is determined to be compatible, place the sand on local beaches. Similar to the North Beach project, the sand will likely be low cost or even free, but the delivery and placement of the sand will likely be similar ($67 per cubic yard). It is not possible to provide a precise estimate because the location, delivery method, and placement location for SCOUP projects has not yet been identified. However, some potential sources include the Santa Ana River, San Juan Creek, Prado Dam, Dana Point Harbor, and other similar locations.

Orange County Transportation Agency Mitigation Project
The Orange County Transportation Agency (OCTA) was
granted both an Emergency Coastal Development Permit and a Permit Waiver, to conduct bluff repairs and enhancement of the railroad revetment that traverses the entire coastline of San Clemente. Consistent with the provisions of the Coastal Act, the Coastal Commission will require mitigation of the impacts associated with the work completed by OCTA and it is
anticipated that the mitigation imposed will be either direct placement of sand in the affected areas, or a financial contribution to a fund that will be used to place sand along the coastline.

The City of San Clemente believes that OCTA is a key partner in the enhancement and protection of coastal resources in the community. The intentions of both the City and OCTA are aligned, and healthy beaches address mutual concerns. The photos to the right show of one of the most critical sections of the rail line and indicate the vulnerability of the tracks without protection of a healthy beach compared to how sand can be used to protect the tracks.

Loss of Past Revenue Sources
It is important to include the loss of past revenues in the background section of this report. It is perhaps fair to say that the loss of either of these resources could be absorbed into the General Fund, but the cumulative impact of losing both has hampered the ability of the City to initiate new coastal resource programs without additional revenue.
 Dissolution of Redevelopment Agencies – On February 1, 2012, Redevelopment Agencies (RDA), including the San Clemente RDA, were dissolved by the State of California.

Essentially, the State did not want to backfill lost property tax revenues of school districts, so the tax increment program was ended. This action eliminated the ability of the San Clemente 19 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 10
Redevelopment Agency to use about $2-2.5 million annually in the District area comprising most of the “Pier Bowl” area. These funds were used to construct and maintain facilities such as parking lots, the pier, and trail facilities. With the loss of those funds, the financial burden has shifted to the General Fund. In the ensuing decade, the reduction of funding and thus less regular maintenance has resulted in some deferred maintenance that is beginning to become critical.
 Ocean Protection Fee – In 2002, property owners approved the creation of the Ocean Protection Fee that was renewed in 2013. However, the fee expired in June of 2020, and due to concerns about COVID and the fiscal implications associated with the global pandemic, the City did not pursue renewal of the fee. The fee for a single-family home on a public street (the most common fee in San Clemente) was calculated at $6.23 per month or $75 per year (the fee ranged from $4.08 per month for a multi-family residence on a private street to $62.30 per month per acre on a public street). In total, the fee generated about $2.3 million for activities focused on maintaining clean water such as street sweeping, storm drainage and similar work.

However, the entire burden of the fee was placed on property owners. Because these are such important issues, the work was not been eliminated, but rather the burden was shifted to the General Fund.

Analysis:

The City Council has identified the improvement and protection of coastal resources as the highest priority for the City, specifically placing additional sand on the beaches in the community.

The coastal environment is highly corrosive and maintenance is essential and seemingly endless.

Some of the projects that have contemplated, but lack funding to complete, include the following:
 Placement of Sand on Beaches – There are current projects underway and future projects anticipated to improve the health of local beaches. The largest of these efforts is the 50-year USACE project that will place about 2 million cubic yards of sand with an annual cost of about $2.5 million. If the City establishes a goal to place a modest 60,000 cubic yards of sand on local beaches on an annual basis with the current bid price of $67 per cubic yard, the annual cost would be about $4 million. Together, it is anticipated that the annual cost to maintain and enhance healthy beaches would be about $6.5 million in 2024 dollars. The placement of sand requires environmental analysis and authorization from several government agencies. In some instances, the sand will be deposited to address emergency situations like the current conditions at North Beach. In other locations, the sand will be used to protect coastal resources such as access for recreational purposes. Other considerations such as mode of transport will play a role in where the and will be placed. For instance, there are limited locations that have truck access for sand and other areas will only be able to be accessed by a barge.
 Maintaining the Beach Trail and Bridges – The beach trail is a treasured resource of the City.

At the present time, the removal of two sections of the Mariposa Bridge due to a landslide has bisected the northern and southern portions of the trail. Although it is possible that the two sections will be replaced through insurance, the remainder of the bridge is in need of significant repair and refurbishment. The work on the bridge is anticipated to be more than $10 20 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 11
million. Additional trail improvements and constant maintenance is necessary to ensure the trail is safe and consistently open to the public.
 Public Automated Warning System (PAWS) – In order for the City to maintain 11 crossings of the railroad without the constant noise of a train horn at each crossing, a PAWS system was installed. The system is very expensive and near the end of its useful life. Current estimates indicate that it will cost about $2 million to update the system which must be done in a manner approved by the United States Department of Transportation.  Improvements to Coastal Access – There are several access facilities in need of repair. The elevated crossing at T Street, several stairways and trails leading to railroad crossings, facilities that allow beachgoers to go beneath the tracks, and stairways leading down to the beach are in generally poor condition. Additionally, there is very little access for persons with a disability. Collectively, these projects will cost several million dollars over an extended period of time. It is important to note that proper maintenance of these facilities must take place to avoid them falling into disrepair again in the future.  Lifeguard Headquarters and other Public Safety Structures – The current Lifeguard Headquarters is in poor condition. There have been discussions for an extended period of time about a comprehensive remodel or a replacement facility. However, the discussions have been dismissed as funding is not available to replace or upgrade the facility. Whether a decision is made to update the facility or build a new structure, the project will cost several million dollars. Additionally, the current beach towers, and tower zero on the pier are in need of replacement.
 The San Clemente Pier is the iconic heart and most recognizable structure in San Clemente.

The pier is in good condition, structurally speaking, but deferred maintenance is beginning to catch up and the aesthetic features of the pier are in great need of improvement.  Other coastal resources in the community include the historic Casa Romantica, restroom facilities, playgrounds, parking lots, and parks. High usage, the challenges of the marine environment and land slides have impacted the condition of these facilities. But diminishing beach widths and encroachment of the ocean waters are the biggest threat to continued use of the facilities by the public. Many of these facilities were maintained through tax increment generated by the former Redevelopment Agency which was dissolved by the State of California in 2012. There is only limited funding in the General Fund for maintenance.

Options
Following staff analysis, it has been determined that in order to complete the projects listed, and conduct proper maintenance, it will cost about $10 million per year in 2024 dollars. Unfortunately, in the marine environment, continuous maintenance and regular replacement of facilities will be required. If the City Council determines that the need for additional revenue to improve and protect coastal resources, specifically the projects listed above, warrants the placement of a revenue measure on the November 5, 2024 ballot, it is important to identify some of the most common options and provide some basic information about each of the them. 21 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 12
Reinstate the Ocean Protection Fee
Any discussion of a property tax increase should
begin with exactly how the property tax in the City
is divided among the various taxing agencies. The
diagram to the right indicates how property tax in
San Clemente is allocated. About 15.4% of the
Property Tax assessed in San Clemente comes to
the City’s General Fund. An additional 1.3%
comes to the City for a Street Lighting and
Landscape District. Therefore, the City receives
about 16.7% of the property tax paid by property
owners in the City. The Clean Ocean Fund was an
assessment on property owners in the City prior to
its expiration in June of 2020. It is possible to
reinstate the Clean Ocean Fee. The fee, assessed
to property owners, generated about $2.3 million
per year. The most common assessment was a
single-family home on a public street at $6.23 per
month or about $75 per year. To reinstate the fee
would require a Proposition 218 mail-in ballot
process and more than half (50% + 1 vote) of the
returned ballots would have to vote in the
affirmative to be enacted. It is important to note
that the fee generates a relatively small amount of
revenue compared to other revenue options
because it is only assessed to property owners. Visitors would not participate in the revenue generation if the fee was reinstated. If the fee was reinstated at previous levels, it could generate enough funding to continue the USACE 50-year nourishment project, but most of the other projects intended to improve and maintain coastal resources would remain unfunded.

In comparison with other coastal communities, San Clemente is about the middle of the pack when it comes to property tax revenues per capita. Newport Beach and Laguna Beach generate far more property tax than the other coastal communities. The remaining cities are very comparable.

City Population Revenue Per Capita
San Clemente 64,300 $43.2 Million $671.85
Dana Point 33,765 $17.5 Million $518.29
Laguna Beach 22,110 $48 Million $2,170.96
Newport Beach 81,794 $138 Million $1,687.17
Huntington Beach 190,037 $104.2 Million $548.31
Seal Beach 24,072 $14.65 Million $608.59
It is very important to note that comparisons of property tax revenues are challenging. Not only does every City receive a different percentage of the property tax, there are a variety of assessments, special districts and other considerations that can lead to wide fluctuations in the 22 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 13
statistics. Cities also account for property taxes in a variety of ways. For instance, in cities that had prior redevelopment agencies, include pass through amounts and Vehicle Licensing Fee (VLF) payments which can vary greatly based on the existing debt of the successor agency, while some cities did not have a redevelopment agency. In short, while comparisons can provide general information, comparing apples with apples can be complex.

Transient Occupancy Tax (TOT)
TOT is assessed to any person occupying a hotel or motel room, or renting another location for less than 30 days (Airbnb, VRBO, etc.). Generally speaking, this tax has been popular with California voters because it is primarily assessed to visitors staying for a short period of time in the community rather than full-time residents. To increase TOT, as a general tax would require a ballot measure to pass by a simple majority of the residents. A “targeted” or Special Tax limited to specific expenditures would require a ballot measure to pass with a 2/3rd or 66.67% majority of the residents. However, previous efforts to increase the TOT rate in San Clemente was rejected by the voters in both 2016 and 2018.

The current rate for the TOT in San Clemente is 10% and a benefit of TOT is that the City is able to retain the entire amount without sharing the revenue with any other entity. The City currently generates about $3.5 million in TOT, so every one percent generates about $350,000. The highest TOT rates currently adopted in California (Laguna Beach being the nearest community at that rate) are 14%. Therefore, if the residents were inclined to raise the TOT rate to the highest levels in the State, the City could increase the current revenue by about $1.4 million.

The biggest factor associated with TOT revenue is the number of hotel rooms or short-term rentals in the community. Typically, beach cities have a higher number of hotel rooms because inland residents and tourists desire to recreate near the coast. However, this is not the case in San Clemente. According to the State Controller’s Office, TOT comparisons of the coastal communities are illustrated below, with the rate and amount of TOT generated in each community.

City Population TOT Rate Revenue Per Capita
San Clemente 64,300 10% $3.5 Million $54.43
Dana Point 33,765 10% $16.2 Million $479.79
Laguna Beach 22,110 14% $21.1 Million $954.32
Newport Beach 81,794 10% $32 Million $391.23
Huntington Beach 190,037 10% $15.8 Million $83.14
Seal Beach 24,072 12% $1.67 Million $69.38
The City of San Clemente generates less per person in TOT than any other coastal community in Orange County. A quick analysis of the data above illustrates that it is less a factor of the rate and more a factor of the number of hotel/motel rooms and short-term rentals. Our neighboring community, Dana Point, with the same TOT rate, generates 460% more revenue than San Clemente. Even if the rate was increased to an amount equal to the highest in the State (14%), the City would only generate about $4.9 million (an increase of $1.4 million) or $76 per capita.

The most comparable City, Seal Beach at a 14% rate would generate $2.1 million or $87 per capita. Because the City of San Clemente does not have an abundance of hotel/motel rooms, 23 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 14
and there is little interest in expanding short-term rentals, TOT does not appear to be the most effective revenue generating strategy.

Transaction and Use Tax (Commonly Called “Sales Tax”)
Sales tax is generally applied to most purchases in the community. However, sales tax is not assessed on non-prepared foods (groceries) or prescriptions. Sales tax is generally based on the point of sale or location where the transaction takes place, but is also assessed on internet sales and some items are taxed through a county pool and distributed to cities on a proportional basis.

In order to increase the sales tax for non-specified uses in the General Fund, a majority of the residents (50% + 1 vote) would have to vote in favor of the tax. If the sales tax increase is dedicated for specific uses identified in the ballot measure (strictly use for sand, for example) as a “targeted” or Special Tax, 2/3rds or a 66.67% majority of the voters would need to vote in favor of the tax.

Placing an increase in the sales tax on the ballot can be accomplished by either a resident driven initiative, or by a 2/3rds vote in the affirmative by the City Council. In this instance, there has not been submission of a resident initiative. Because there are 5 members of the City Council, to reach the 2/3rds threshold, 4 members of the City Council must vote in the affirmative to place the measure on the ballot.

Unless a City in Orange County has passed an increase in their local sales tax, the typical sales tax rate in the County is equal to 7.75%. Some counties such as Los Angeles County have a higher base sales tax rate (9.5%). In Orange County, and specifically the City of San Clemente, the 7.75% sales tax breaks down as follows:
 6% State of California
 1% City of San Clemente
 .25% General County Transportation
 .5% Orange County Transportation District
Of the 34 cities in Orange County, 10 cities currently assess an increased sales tax; two, and potentially, three are considering a measure on the 2024 ballot; and one of the cities, Seal Beach is proposing a second increase to 9.25% from the current rate of 8.75%. The cities in Orange County that impose an additional sales tax include:

Fountain Valley = 8.75% Garden Grove = 8.75%
La Habra = 8.25% La Palma = 8.75%
Los Alamitos = 9.25% Placentia= 8.75%
Santa Ana = 9.25% Seal Beach = 8.75%*
Stanton = 8.75% Westminster = 9.25%
Proposals on 2024 ballot:

City of Orange = increase from 7.75% to 8.25%
City of Seal Beach = increase from 8.75% to 9.25%
City of Laguna Beach = exploring sales tax, but looking at other options also 24 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 15
Anecdotally speaking after conducting a simple eye test, cities with higher sales tax rates are communities that do not generate significant funding from TOT and are generally thought of as bedroom communities. In contrast, typical tourism areas such as Anaheim, Huntington Beach and Newport Beach clearly generate a majority of their revenue from other sources (TOT and higher property values).

Because the City Council directed staff to focus on a ¾ of 1 percent, targeted Special Sales Tax, this report will explore the factors associated with that action, along with some additional analysis associated with a ½ of 1 percent increase in the sales tax intended to provide the residents and the City Council with the information necessary to reach a well-informed decision. ¾ of 1 Percent and ½ of 1 Percent Sales Tax Increase Factors The calculation of sales tax is complex. Although point of sale (the location where a taxable item is purchased) is the primary factor in the sales tax equation, there are other factors such as taxes on online purchases, items taxed through the Orange County pool, taxes on automobiles, boats and RVs in other communities, and various other considerations. Therefore, the most straightforward way to predict the anticipated revenue from a sales tax measure is to use the City’s current sales tax revenue as a base. Even though the revenue may not be exactly proportional to the base, it will be very close.

The current City of San Clemente annual sales tax revenue is about $13.5 million. As indicated above, it is anticipated that to have well-functioning coastal resources and healthy beaches, it will cost about $10 million per year. A ¾ of 1 percent increase (City portion 1.75%, total rate of 8.5%) in the current sales tax rate would generate about $10.1 million in additional revenue and a ½ of 1 percent increase (City portion 1.5%, total 8.25%) in the current sales tax rate would generate about $6.75 million in additional revenue.

Under the false assumption that there would be no contribution from visitors and residents carried the full burden of the increase, a ¾ of 1 percent increase would equate to about $12.98 per person per month ($155.86 per year or $10.1million/64,800), and a ½ of 1 percent increase would equate to about $8.68 per person per month ($104.16 per year or $6.75 million/64,800).

However, conservatively, it is anticipated that 25% of the sales tax in San Clemente is generated by visitors. If that factor is applied using the same equation, the impact on residents drops to $9.74 per month ($116.89 per year) for a ¾ of 1 percent increase and $6.51 per month ($78.13 per year) for a ½ of 1 percent increase.

Amount of Increase 100% Resident Paid 25% Visitor
Contribution
¾ of 1 Percent $12.98 per month/person
$155.86 per year/person
$9.74 per month/person
$116.89 per year/person
½ of 1 Percent $8.68 per month/person
$104.16 per year/person
$6.51 per month/person
$78.13 per year/person
25 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 16
What about Budget Cuts, Rather Than New Revenue?
With the presumption that public safety and maintenance of existing facilities should not be reduced, about 70% of the General Fund is off limits for budget cuts. The remainder of the General Fund Departments have been reduced over time through attrition and having existing employees assume the role of departing employees without backfilling positions. This has resulted in the City being staffed at minimal levels in many instances. For example, when the previous Assistant City Manager left the City for a similar role in another community, the role of the Administrative Services Director was expanded, filled in house and the Assistant position was not filled. The only new positions in the current budget include an Emergency Services position and two new Park Rangers. It may be possible to fill the Emergency Services position in house, but the City may miss out on of the specific skill sets that will be critical in an emergency situation.

The Park Rangers have proven to be a cost-effective solution to some of the public safety concerns in the community.

Length of Tax and Impact on Businesses
Implementation and Length of Tax Measure
As proposed, a special sales tax is expected to be effective in April of 2025, and remain in place until eliminated by voters. To remove the tax, the residents could request that 4 of 5 members of the City Council place an item on the next ballot, or a petition could be circulated that would need to satisfy the provisions of the Elections Code.

Many revenue measures have a predetermined expiration date. In this instance, it is anticipated that the City will potentially need the revenue during the full life of the USACE project, which is programmed for the next 50 years. Therefore, if the revenue measure is approved by residents as proposed, the tax would remain in place until eliminated by residents. However, if at any point in time the City Council determines that the revenue is not being properly used or is no longer necessary, the City Council could place an item on the ballot with a 2/3rds vote (4 out of 5 members of the City Council) and allow the residents to decide whether or not to continue the tax.

Alternatively, the City Council could institute an automatic expiration date for the measure.

Impact on Businesses
The impact of an increase in the sales tax on local businesses warrants discussion, and the discussion needs to begin with a determination of whether the revenue will be used as a solid investment that can draw more business into the community. According to a report issued by the Kellogg School at Northwestern University, if the revenues are used as an investment in public infrastructure, they can contribute to economic growth. An article in the KelloggInsight in June of 2019 states, “But those who argue for business-friendly tax cuts usually leave out a crucial part of the fiscal equation: cutting taxes means less revenue to spend on public investment. There is plenty of evidence that investment drives growth in local economies, especially when directed toward infrastructure and education. In fact, according to an Economic Policy Institute report, investments in public capital contribute significantly to private-sector productivity, with estimated rates of return averaging around 30 percent.”
26 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 17
Most visitors in San Clemente come to experience, directly or indirectly, the coastal resources of the City. Whether it is a trip to the beach, or dinner in a local restaurant opened to serve coastal visitors, having a thriving beach environment will be beneficial for local businesses. Conversely, if the beach areas in San Clemente are unattractive and visitors make decisions to go elsewhere, there can be an economic loss for local businesses.

Summary
In summary, the improvement and maintenance of coastal resources are existential issues in San Clemente. Revenue generation in the City requires two steps. First, the tax must be placed on the ballot by either a resident initiative or by 2/3rds of the governing body (4 out of 5 members of the City Council). The City Council does not have the authority to raise taxes, only residents can make that decision.

If the measure is placed on the ballot, it must be adopted by San Clemente voters. If the tax is general in nature, the tax can be imposed if 50% + 1 vote is tallied in favor of the measure.

However, if the tax is targeted on specific expenditures, or a Special Tax, then the tax can only be imposed if 2/3rds (66.667%) of voters vote in favor of the measure. As proposed, the measure in San Clemente is a Special Tax requiring 2/3rds of qualified voters to vote in favor of the measure.

Staff has prepared two options for consideration by the City Council: a ¾ of 1 percent increase in sales tax and a ½ of 1 percent increase in sales tax. The measure language for each proposal is as follows:

Option 1 – ¾ of 1 percent increase in Sales Tax:

Shall the measure restoring/keeping sand on the beach, maintaining beach access for residents, reducing beach erosion; protecting ocean water quality, surfing/ocean swimming locations; restoring/maintaining the beach trail, pier and lifeguard facilities, helping protect San Clemente’s local beach economy, by establishing a dedicated 0.75¢ sales tax providing approximately $10,100,000 annually until ended by voters; requiring public spending disclosure, independent audits, all funds used locally and cannot be taken for other purposes, be adopted?
Option 2 – ½ of 1 percent increase in Sales Tax
Shall the measure restoring/keeping sand on the beach, maintaining beach access for residents, reducing beach erosion; protecting ocean water quality, surfing/ocean swimming locations; restoring/maintaining the beach trail, pier and lifeguard facilities, helping protect San Clemente’s local beach economy, by establishing a dedicated 0.50¢ sales tax providing approximately $6,750,000 annually until ended by voters; requiring public spending disclosure, independent audits, all funds used locally and cannot be taken for other purposes, be adopted?
27 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 18
Next Steps:

To qualify for the ballot, at least 2/3 of the City Council (at least 4 members) are required to vote affirmatively to place the measure on the ballot. If so approved by the City Council, and then passed on Tuesday, November 5, 2024 by 2/3rds (66.667%) of the voters, it would be effective ten days after the certification of the election to the City Council and would be implemented in approximately April of 2025.

Should the City Council choose to place the measure on the November 5, 2024 ballot, the City Attorney will need to prepare an impartial analysis showing the effect of the measure on the existing laws and the operation of the measure. The City Clerk will also need to establish a process and timeline for the submittal of ballot arguments, consistent with the requirements of state law and the County Registrar of Voters. These items are addressed in the attached draft Resolution Nos. 24-125 and 24-126.

Pursuant to California Elections Code sections 10400 et seq., the election for this measure shall be consolidated with the established election to be conducted on November 5, 2024. The City Council of the City of San Clemente acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section 10418. If the City Council adopts the proposed Resolution, the City Clerk is directed to file a certified copy of this resolution with the Orange County Board of Supervisors and the Registrar of Voters on or before August 9, 2024.

Council Options:
 Adopt Resolution 24-125 which would submit a ballot measure to establish a three-quarters of one-cent (0.75¢) special purpose transactions and use (sales) tax.  Adopt Resolution 24-126 which would submit a ballot measure to establish a one half of onecent (1/2¢) special purpose transactions and use (sales) tax.  Take no action.

Environmental Review/Analysis:

This action is not a “project” as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

Recommended Actions:

Staff Recommendation ..recommendation
Adopt Resolution No. 24-125 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING TO THE ELECTORS A BALLOT MEASURE TO ESTABLISH A THREE-QUARTERS OF ONE CENT (0.75¢) SPECIAL PURPOSE 28 Meeting Date: August 6, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 19

TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING THE POLICIES AND

PROCEDURES FOR SUCH AN ELECTION, REQUESTING THAT ORANGE COUNTY

PROVIDE ELECTION SERVICES, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF REBUTTAL ARGUMENT.

OR
Adopt Resolution No. 24-126 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING TO THE ELECTORS A BALLOT MEASURE TO ESTABLISH A ONE HALF CENT (1/2¢) SPECIAL PURPOSE TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING THE POLICIES AND PROCEDURES FOR SUCH AN

ELECTION, REQUESTING THAT ORANGE COUNTY PROVIDE ELECTION SERVICES,

DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF REBUTTAL ARGUMENT.
..end
Attachment:

1. Resolution No. 24-125 (3/4 Cent Special Purpose Tax)

2. Resolution No. 24-126 (1/2 Cent Special Purpose Tax) Notification:

Public Hearing Notice published in the Orange County Register. 29 Attachment 1

RESOLUTION NO. 24-125

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALLING AN ELECTION IN THE CITY OF

SAN CLEMENTE TO BE CONSOLIDATED WITH THE
CITY’S NEXT GENERAL MUNICIPAL ELECTION ON
NOVEMBER 5, 2024, SUBMITTING TO THE ELECTORS A

BALLOT MEASURE TO ESTABLISH A THREE-QUARTERS
OF ONE CENT (0.75¢) SPECIAL PURPOSE

TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING

THE POLICIES AND PROCEDURES FOR SUCH AN

ELECTION, REQUESTING THAT ORANGE COUNTY

PROVIDE ELECTION SERVICES, DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND

AUTHORIZING THE FILING OF REBUTTAL ARGUMENT
WHEREAS, San Clemente beaches have been deteriorating since the 1990s, but with recent extreme rainstorms and the erosion of beaches and bluffs, independent scientists now say the problem is getting worse; and WHEREAS, the San Clemente Beach Protection, Restoration, Clean Ocean Measure (the “Measure”) includes stringent fiscal accountability provisions and safeguards such as requiring public disclosure of all spending, an oversight committee and guaranteed annual independent audits to ensure funds are used efficiently, effectively, and as promised; and
WHEREAS, the funding from this Measure is dedicated to restoring San Clemente’s local beaches and keeping local beaches and coastal waters clean and in good condition for years to come and by law, funding cannot be taken for other purposes, so residents can know where their money is going; and WHEREAS, a significant portion of the funding from this Measure will come from residents of nearby cities, tourists and other people who come to San Clemente and this Measure will allow non-residents to contribute towards maintaining, protecting and restoring the local beaches and coastal waters that they enjoy when they visit our City; and
WHEREAS, Article XVI, section 6 of the California Constitution requires all funding to be spent locally for the benefit of the San Clemente community and cannot be taken by the County, State or Federal government; and WHEREAS, the funds of this Measure will be dedicated to be used for the following resident identified priorities: maintaining local beaches and beach access for residents, keeping sand on local San Clemente beaches, reducing beach erosion, 30 Resolution No. 24-125 Page 2

protecting ocean water quality, protecting surfing and ocean swimming locations, and restoring and maintaining the beach trail, the City pier and City lifeguard lifesaving equipment and facilities, all of which will help protect San Clemente’s local beach economy, and will not be used for any other purposes; and WHEREAS, pursuant to California Revenue and Taxation Code section 7285.91 the City of San Clemente ("City") has the authority to levy a Transactions and Use (“Sales”) Tax for specific purposes that is subject to voter approval; and WHEREAS, Article XIIIC, section 2(d) of the California Constitution and Revenue and Taxation Code section 7285.91 require that the Measure must be approved by a two-thirds vote of the voters voting on the issue; and WHEREAS, as required by Article XIIIC, section 2(d) of the California Constitution and Revenue and Taxation Code section 7285.91, the City Council desires that the voters of the City of San Clemente have the opportunity to decide on November 5, 2024 whether the Measure should be enacted.

WHEREAS, on July 17, 2024, the City Council held a hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax; and
WHEREAS, on July 17, 2024, the City Council adopted Resolution No. 24-108 calling the general municipal election to be consolidated with the statewide general election on November 5, 2024; and
WHEREAS, on August 6, 2024, the City Council held a duly noticed public hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of San Clemente does hereby resolve, declare, determine and order as follows, that:

SECTION 1. The above recitals are true and correct and incorporated herein as findings.

SECTION 2. The City Council finds and determines that this activity is not a "project" as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

SECTION 3. Pursuant to Elections Code section 9222, the City Council hereby calls a general municipal election at which it shall submit to the qualified voters of the City of San Clemente, a measure that, if approved, would enact a three31 Resolution No. 24-125 Page 3

quarters of one percent special local transactions and use tax within the City of San Clemente. This measure shall be designated by letter by the Orange County Registrar of Voters.

SECTION 4. The ballot language for the proposed measure shall be as follows:

SAN CLEMENTE BEACH PROTECTION, RESTORATION,

CLEAN OCEAN MEASURE
Shall the measure restoring/keeping sand on the beach, maintaining beach access for residents, reducing beach erosion; protecting ocean water quality, surfing/ocean swimming locations; restoring/maintaining beach trail, pier and lifeguard lifesaving equipment, helping protect San Clemente’s local beach economy, by establishing a dedicated 0.75¢ sales tax providing approximately $10,100,000 annually until ended by voters; requiring public spending disclosure, independent audits, all funds used locally and cannot be taken for other purposes, be adopted? YES
NO
SECTION 5. The proposed measure submitted to the voters is as attached in Exhibit A to this Resolution, which is fully incorporated herein by this reference. The City Council hereby approves by a two-thirds vote of its body the proposed ordinance, in the form thereof, and its submission to the voters of the City at the November 5, 2024 election. The full text of the measure shall be printed in the ballot materials and be available for public inspection in the City Clerk’s office and on the City’s website: https://www.san-clemente.org
SECTION 6. The City Clerk is hereby directed to cause notice of the measure to be published once in the official newspaper of the City of San Clemente, in accordance with Section 12111 of the California Elections Code.

SECTION 7.
a) Pursuant to California Elections Code sections 10400 et seq., the election for this measure shall be consolidated with the established election to be conducted on November 5, 2024. The City Council hereby requests that the Orange County Board of Supervisors consolidate the election called by this resolution with the statewide election to be conducted on November 5, 2024 and order the election to be conducted by the Orange County Registrar of Voters. The City Council of the City of San Clemente acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section 10418. The City Council recognizes that additional cost will be incurred by Orange County by reason 32 Resolution No. 24-125 Page 4

of the consolidation of the election with the Statewide election and agrees to reimburse Orange County for any costs that are not reimbursed by the State, and the City Council hereby authorizes the City Manager to pay Orange County for said services in full. The City Clerk is directed to file a certified copy of this resolution with the Orange County Board of Supervisors and the Registrar of Voters on or before August 9, 2024.
(b) The election on the measure set forth in Section 3 shall be held and conducted, the voters canvassed and the returns made, and the results ascertained and determined as provided herein. The election shall be held in accordance with the Elections Code of the State of California.
(c) The election on the measure set forth in Section 3 shall be held in Orange County in the City of San Clemente on November 5, 2024, as required by law, and the Board of Supervisors of Orange County is authorized to canvass the returns of the election with respect to the votes cast in the City of San Clemente and certify the results to the City Council of the City of San Clemente. (d) At the next regular meeting of the City Council of the City of San Clemente occurring after the returns of the election for the measure set forth in Section 3 have been canvassed and the results have been certified to the City Council, or at a special meeting called for such purpose if allowed or required by law, the City Council shall cause to be entered in its minutes a statement of the results of the election.

SECTION 8. The City Clerk is hereby authorized and directed to take all steps necessary to place the measure on the ballot and to cause the ordinance or measure to be printed. A copy of the measure shall be made available to any voter upon request.

SECTION 9. Pursuant to California Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by August 9, 2024.

SECTION 10.
(a) Arguments for or against this measure shall be submitted not later than 5 p.m. on August 9, 2024 to the City Clerk signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. (b) Direct arguments shall not exceed three hundred (300) words and 33 Resolution No. 24-125 Page 5

shall be signed by not more than five (5) persons.
(c) Pursuant to California Elections Code section 9285(b), the City Council is hereby adopting provisions for the filing of rebuttal arguments for this measure. Accordingly, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the author(s) of the argument against it, and copies of the argument against it to the author(s) of the argument in favor. Rebuttal arguments shall not exceed 250 words and shall be filed no later than 5:00 p.m. on August 19, 2024.

SECTION 11. Should any section, subsection, clause or provision of this resolution for any reason be held to be invalid, then the remainder of the resolution shall be deemed valid, it being expressly declared that this resolution, and each and every section, subsection, clause and phrase hereof would have been prepared, proposed, approved, adopted and/or ratified even if any other section, subsection, sentence, clause or phrase of this resolution were declared invalid.

SECTION 12. The City Clerk shall certify to the passage and adoption of this resolution by a two-thirds vote of all members of the City Council and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED this ________ day of ___________, 2024.

MAYOR of the City of
San Clemente, California
ATTEST:

CITY CLERK of the City of
San Clemente, California
34 Resolution No. 24-125 Page 6

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-125 was adopted at a regular meeting of the City Council of the City of San Clemente held on the ___________ day of , 2024, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California this ____________ day of ________________, 2024.

CITY CLERK of the City of
San Clemente, California
Approved as to form:

Elizabeth A. Mitchell, City Attorney
35 4875-3959-4452 v1

EXHIBIT A TO
RESOLUTION NO. 24-125
ORDINANCE NO. 1777

AN ORDINANCE OF THE CITY OF SAN CLEMENTE,
CALIFORNIA, ADDING A NEW CHAPTER 3.22 TO THE

SAN CLEMENTE MUNICIPAL CODE ESTABLISHING

AND IMPOSING A DEDICATED THREE-QUARTERS
OF ONE PERCENT (0.75%) SPECIAL

TRANSACTIONS AND USE (SALES) TAX FOR

MAINTAINING BEACH ACCESS FOR RESIDENTS,

KEEPING SAND ON LOCAL SAN CLEMENTE

BEACHES, REDUCING BEACH EROSION,

PROTECTING OCEAN WATER QUALITY AND

SURFING AND OCEAN SWIMMING LOCATIONS,

RESTORING AND MAINTAINING THE BEACH TRAIL,

PIER AND LIFEGUARD LIFESAVING EQUIPMENT TO

BE ADMINISTERED BY THE CALIFORNIA

DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, San Clemente beaches have been deteriorating since the 1990s, but with recent extreme rainstorms and the erosion of beaches and bluffs, independent scientists now say the problem is getting worse; and
WHEREAS, this ordinance includes stringent fiscal accountability provisions and safeguards such as requiring public disclosure of all spending and guaranteed annual independent audits to ensure funds are used efficiently, effectively, and as promised; and WHEREAS, the funding from this ordinance is dedicated to restoring San Clemente’s local beaches and keeping local beaches and coastal waters clean and in good condition for years to come and by law, funding cannot be taken for other purposes, so residents can know where their money is going; and
WHEREAS, a significant portion of the funding from this ordinance will come from residents of nearby cities, tourists and other people who come to San Clemente and this Measure will allow non-residents to contribute towards maintaining, protecting and restoring the local beaches and coastal waters that they enjoy when they visit our City; and
WHEREAS, Article XVI, section 6 of the California Constitution requires all funding to be spent locally for the benefit of the San Clemente community and cannot be taken by the County, State or Federal government; and
WHEREAS, the funds of this ordinance will be dedicated to be used for the following resident identified priorities: maintaining local beaches and beach access for residents, keeping sand on local San Clemente beaches, reducing beach erosion, protecting ocean water quality, protecting surfing and ocean swimming locations, and restoring and maintaining the beach trail, the City pier and City lifeguard lifesaving 36 equipment and facilities, all of which will help protect San Clement’s local beach economy, and will not be used for any other purposes; and
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.91 the City of San Clemente ("City") has the authority to levy a Transactions and Use (“Sales”) Tax for specific purposes that is subject to voter approval; and WHEREAS, Article XIIIC, section 2(d) of the California Constitution requires that this ordinance must be approved by a two-thirds vote of the voters voting on the issue; and
WHEREAS, on July 17, 2024, the City Council held a hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax; and
WHEREAS, on August 6, 2024, the City Council held a duly noticed public hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax; and
WHEREAS, on August 6, 2024, the City Council submitted this ordinance to the voters of the City of San Clemente to decide on November 5, 2024; and WHEREAS, the proposed Chapter 3.22 of the San Clemente Municipal Code, set forth below, establishes a transactions and use tax to be administered by the California Department of Tax and Fee Administration consistent with state law.

NOW THEREFORE, subject to approval by an affirmative, two-thirds vote of the qualified electors as required by law, the People of the City of San Clemente do ordain as follows:

SECTION 1. FINDINGS
The facts set forth in the recitals are true and correct and incorporated herein by this reference. The recitals constitute findings in this matter and, together with the staff report, other written reports, public testimony and other information contained in the record, are an adequate and appropriate evidentiary basis for the actions taken in this Ordinance.

SECTION 2. ADDITION OF CHAPTER 3.22
The San Clemente Municipal Code is hereby amended to add Chapter 3.22 as set forth below, thereby enacting a three-quarters of one percent special local transactions and use tax within the City of San Clemente, to be administered by the California Department of Tax and Fee Administration:

CHAPTER 3.22: SAN CLEMENTE BEACH PROTECTION, RESTORATION

AND CLEAN OCEAN SPECIAL TRANSACTIONS AND USE TAX
Sections:
37 3.22.010 Title.

3.22.020 Operative date.

3.22.030 Purpose.

3.22.040 Contract with state.

3.22.050 Transactions tax rate.

3.22.060 Place of sale.

3.22.070 Use tax rate.

3.22.080 Adoption of provisions of state law.

3.22.090 Limitations on adoption of state law and collection of use taxes.

3.22.100 Permit not required.

3.22.110 Exemptions and Exclusions.

3.22.120 Amendments of Revenue and Taxation Code.

3.22.130 Enjoining collection forbidden.

3.22.140 Amendments by City Council.

3.22.150 Use of proceeds; Expenditure Plan.

3.22.160 Independent Annual Audit.

3.22.170 Citizen Oversight Committee.

3.22.180 Severability.

3.22.010 Title.

The Ordinance codified in this chapter shall be known as the "San Clemente Beach Protection, Restoration and Clean Ocean Special Transactions and Use Tax." The City of San Clemente hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City.

3.22.020 Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance, the date of adoption being set forth below.

3.22.030. Purpose.
38 This Ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a specific purpose retail transactions and use tax, in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2, which authorizes the City to adopt this tax ordinance which shall be operative if a two-thirds vote of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a specific purpose retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

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

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

3.22.040 Contract with State.

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

3.22.050 Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.75 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of this Ordinance.

3.22.060 Place of Sale.

For the purposes of this Ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the 39 place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of a transactions tax proposed by this Ordinance shall be determined under rules and regulations prescribed and adopted or to be prescribed and adopted by the California Department of Tax and Fee Administration or under the Revenue and Taxation Code.

3.22.070 Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date of this Ordinance for storage, use or other consumption in said territory at the rate of 0.75 percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.22.080 Adoption of Provisions of State Law.

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

3.22.090 Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

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

1. The word "State" is used as part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

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

3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property that would not otherwise be exempt from this tax while such sales, storage, use or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that code. 40 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715 (except in relation to the Code of Civil Procedure and the Civil Code), 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 and in the definition of that phrase in Section 6203 of the Revenue and Taxation Code.

C. The word "City" shall be substituted for the word "state" in Revenue and Taxation Code Sections 6041 and 6044.

3.22.100 Permit/Registration Not Required.

A. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this Ordinance.

B. If a marketplace facilitator is registered or required to register with the California Department of Tax and Fee Administration under Chapter 2 (commencing with Section 6051), Chapter 3 (commencing with Section 6201), or under any other law that imposes a fee administered pursuant to Part 30 (commencing with Section 55001) of the Revenue and Taxation Code, no additional registration is required by this Ordinance.

3.22.110 Exemptions and Exclusions.

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

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

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

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

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

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

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

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

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

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

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this Ordinance.

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

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

6. Except as provided in subsection (7) of this section, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a 42 place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

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

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

3.22.120 Amendments of Revenue and Taxation Code.

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

3.22.130 Enjoining Collection Forbidden.

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

3.22.140 Amendments by City Council.

The following amendments to this Ordinance as codified in this chapter must be approved by the voters of the City: increasing the tax rate; revising the methodology for calculating the tax, such that a tax increase would result; imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminating the tax. The City Council may otherwise amend this Ordinance as codified in this chapter without submitting the amendment to the voters for approval in any manner that does not constitute a tax "increase" as that term is defined in Government Code section 53750(h).

3.22.150 Use of Proceeds; Expenditure Plan.

The proceeds from the tax imposed by this Chapter shall be used exclusively for the following specific purposes: the preservation of the City’s coastal resources, including, but not limited to, maintaining local beaches, maintaining beach access for residents, 43 keeping sand on local San Clemente beaches, reducing beach erosion, protecting ocean water quality, protecting surfing and ocean swimming locations, enhancing and maintaining clean local beaches, and restoring and maintaining beach infrastructure, including the beach trail, the City pier and City lifeguard lifesaving equipment and facilities.

All tax proceeds received pursuant to this Chapter shall be deposited into a special fund to be known as the Beach Protection, Restoration and Clean Ocean Fund.

3.22.160 Independent Annual Audit.

The proceeds resulting from this transactions and use tax shall be subject to the same independent annual audit requirements as other City revenues. The independent auditor's report, which shall include an accounting of the revenues received and expenditures made from the transactions and use tax, will be presented annually to the City Council and made available for public review.

3.22.170 Oversight Committee.

A. Committee Established. The City’s Investment Advisory Committee is hereby established an Oversight Committee with respect to this chapter.

B. Functions and Duties. The Oversight Committee’s functions and duties are to:

1. Review expenditures of special revenue collected pursuant to this Chapter only to determine whether such funds are expended for the purposes specified herein.

2. Issue reports on its findings to the City Council at least annually.

3. Review annual financial or performance audits performed by an independent auditor pursuant to Section 3.22.160.

C. Conduct of Committee. The Oversight Committee shall conduct itself and be subject to the same requirements as the Investment Advisory Committee as set forth in Chapter 2.43 of this Code and shall be subject to the rules and regulations regarding the conduct of meetings under state and City law and to the provisions of this Code and any other applicable ordinance or policy of the City.

3.22.180 Severability.

If any provision of this Ordinance as codified in this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The People of the City of San Clemente hereby declare that they would have adopted this Ordinance as codified in this chapter irrespective of the invalidity of any particular portion thereof and intend that the invalid portions should be severed, and the balance of the Ordinance be enforced.

SECTION 3. ENVIRONMENTAL REVIEW
44 The adoption of this Ordinance is not a "project" subject to the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Sections 21000 et seq.). CEQA Guideline 15378(b)(4) provides that the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment are not projects subject to the requirements of CEQA.

SECTION 4. IMPLEMENTATION
This Ordinance authorizes City of San Clemente officers and employees to take all steps necessary to implement this Ordinance in the manner required by law, including any applicable amendments to the laws of the State of California.

SECTION 5. ADOPTION
Pursuant to Elections Code Section 9217, this Ordinance shall be considered as adopted upon the date that the vote by the electorate of the City of San Clemente is declared by the City Council, and shall become effective ten (10) days after that date.

SECTION 6. CERTIFICATION
The City Clerk shall certify to the adoption of this Ordinance by the voters, cause it to be published as required by law, and forward a copy of the adopted Ordinance to the California Department of Tax and Fee Administration.

PASSED, APPROVED AND ADOPTED BY THE PEOPLE OF THE CITY OF SAN CLEMENTE this 5th day of November, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December __, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________
Mayor of the City of
San Clemente, California
ATTEST:
45 __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
__________________________
City Attorney of the City of
San Clemente, California
46 Attachment 2

RESOLUTION NO. 24-126

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALLING AN ELECTION IN THE CITY OF

SAN CLEMENTE TO BE CONSOLIDATED WITH THE
CITY’S NEXT GENERAL MUNICIPAL ELECTION ON
NOVEMBER 5, 2024, SUBMITTING TO THE ELECTORS A

BALLOT MEASURE TO ESTABLISH A ONE HALF CENT
(1/2¢) SPECIAL PURPOSE TRANSACTIONS AND USE
(SALES) TAX, ESTABLISHING THE POLICIES AND

PROCEDURES FOR SUCH AN ELECTION, REQUESTING

THAT ORANGE COUNTY PROVIDE ELECTION SERVICES,

DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF

REBUTTAL ARGUMENT
WHEREAS, San Clemente beaches have been deteriorating since the 1990s, but with recent extreme rainstorms and the erosion of beaches and bluffs, independent scientists now say the problem is getting worse; and WHEREAS, the San Clemente Beach Protection, Restoration, Clean Ocean Measure (the “Measure”) includes stringent fiscal accountability provisions and safeguards such as requiring public disclosure of all spending, an oversight committee and guaranteed annual independent audits to ensure funds are used efficiently, effectively, and as promised; and
WHEREAS, the funding from this Measure is dedicated to restoring San Clemente’s local beaches and keeping local beaches and coastal waters clean and in good condition for years to come and by law, funding cannot be taken for other purposes, so residents can know where their money is going; and WHEREAS, a significant portion of the funding from this Measure will come from residents of nearby cities, tourists and other people who come to San Clemente and this Measure will allow non-residents to contribute towards maintaining, protecting and restoring the local beaches and coastal waters that they enjoy when they visit our City; and
WHEREAS, Article XVI, section 6 of the California Constitution requires all funding to be spent locally for the benefit of the San Clemente community and cannot be taken by the County, State or Federal government; and WHEREAS, the funds of this Measure will be dedicated to be used for the following resident identified priorities: maintaining local beaches and beach access for residents, keeping sand on local San Clemente beaches, reducing beach erosion, 47 Resolution No. 24-126 Page 2

protecting ocean water quality, protecting surfing and ocean swimming locations, and restoring and maintaining the beach trail, the City pier and City lifeguard lifesaving equipment and facilities, all of which will help protect San Clemente’s local beach economy, and will not be used for any other purposes; and WHEREAS, pursuant to California Revenue and Taxation Code section 7285.91 the City of San Clemente ("City") has the authority to levy a Transactions and Use (“Sales”) Tax for specific purposes that is subject to voter approval; and WHEREAS, Article XIIIC, section 2(d) of the California Constitution and Revenue and Taxation Code section 7285.91 require that the Measure must be approved by a two-thirds vote of the voters voting on the issue; and WHEREAS, as required by Article XIIIC, section 2(d) of the California Constitution and Revenue and Taxation Code section 7285.91, the City Council desires that the voters of the City of San Clemente have the opportunity to decide on November 5, 2024 whether the Measure should be enacted.

WHEREAS, on July 17, 2024, the City Council held a hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax; and
WHEREAS, on July 17, 2024, the City Council adopted Resolution No. 24-108 calling the general municipal election to be consolidated with the statewide general election on November 5, 2024; and
WHEREAS, on August 6, 2024, the City Council held a duly noticed public hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of San Clemente does hereby resolve, declare, determine and order as follows, that:

SECTION 1. The above recitals are true and correct and incorporated herein as findings.

SECTION 2. The City Council finds and determines that this activity is not a "project" as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

SECTION 3. Pursuant to Elections Code section 9222, the City Council hereby calls a general municipal election at which it shall submit to the qualified voters of the City of San Clemente, a measure that, if approved, would enact a one 48 Resolution No. 24-126 Page 3

half of one percent (0.5%) special local transactions and use tax within the City of San Clemente. This measure shall be designated by letter by the Orange County Registrar of Voters.

SECTION 4. The ballot language for the proposed measure shall be as follows:

SAN CLEMENTE BEACH PROTECTION, RESTORATION,

CLEAN OCEAN MEASURE
Shall the measure restoring/keeping sand on the beach, maintaining beach access for residents, reducing beach erosion; protecting ocean water quality, surfing/ocean swimming locations; restoring/maintaining beach trail, pier and lifeguard lifesaving equipment, helping protect San Clemente’s local beach economy, by establishing a dedicated 1/2¢ sales tax providing approximately $6,750,000 annually until ended by voters; requiring public spending disclosure, independent audits, all funds used locally and cannot be taken for other purposes, be adopted? YES
NO
SECTION 5. The proposed measure submitted to the voters is as attached in Exhibit A to this Resolution, which is fully incorporated herein by this reference. The City Council hereby approves by a two-thirds vote of its body the proposed ordinance, in the form thereof, and its submission to the voters of the City at the November 5, 2024 election. The full text of the measure shall be printed in the ballot materials and be available for public inspection in the City Clerk’s office and on the City’s website: https://www.san-clemente.org
SECTION 6. The City Clerk is hereby directed to cause notice of the measure to be published once in the official newspaper of the City of San Clemente, in accordance with Section 12111 of the California Elections Code.

SECTION 7.
a) Pursuant to California Elections Code sections 10400 et seq., the election for this measure shall be consolidated with the established election to be conducted on November 5, 2024. The City Council hereby requests that the Orange County Board of Supervisors consolidate the election called by this resolution with the statewide election to be conducted on November 5, 2024 and order the election to be conducted by the Orange County Registrar of Voters. The City Council of the City of San Clemente acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section 10418. The City Council recognizes that additional cost will be incurred by Orange County by reason 49 Resolution No. 24-126 Page 4

of the consolidation of the election with the Statewide election and agrees to reimburse Orange County for any costs that are not reimbursed by the State, and the City Council hereby authorizes the City Manager to pay Orange County for said services in full. The City Clerk is directed to file a certified copy of this resolution with the Orange County Board of Supervisors and the Registrar of Voters on or before August 9, 2024.
(b) The election on the measure set forth in Section 3 shall be held and conducted, the voters canvassed and the returns made, and the results ascertained and determined as provided herein. The election shall be held in accordance with the Elections Code of the State of California.
(c) The election on the measure set forth in Section 3 shall be held in Orange County in the City of San Clemente on November 5, 2024, as required by law, and the Board of Supervisors of Orange County is authorized to canvass the returns of the election with respect to the votes cast in the City of San Clemente and certify the results to the City Council of the City of San Clemente. (d) At the next regular meeting of the City Council of the City of San Clemente occurring after the returns of the election for the measure set forth in Section 3 have been canvassed and the results have been certified to the City Council, or at a special meeting called for such purpose if allowed or required by law, the City Council shall cause to be entered in its minutes a statement of the results of the election.

SECTION 8. The City Clerk is hereby authorized and directed to take all steps necessary to place the measure on the ballot and to cause the ordinance or measure to be printed. A copy of the measure shall be made available to any voter upon request.

SECTION 9. Pursuant to California Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by August 9, 2024.

SECTION 10.
(a) Arguments for or against this measure shall be submitted not later than 5 p.m. on August 9, 2024 to the City Clerk signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. (b) Direct arguments shall not exceed three hundred (300) words and 50 Resolution No. 24-126 Page 5

shall be signed by not more than five (5) persons.
(c) Pursuant to California Elections Code section 9285(b), the City Council is hereby adopting provisions for the filing of rebuttal arguments for this measure. Accordingly, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the author(s) of the argument against it, and copies of the argument against it to the author(s) of the argument in favor. Rebuttal arguments shall not exceed 250 words and shall be filed no later than 5:00 p.m. on August 19, 2024.

SECTION 11. Should any section, subsection, clause or provision of this resolution for any reason be held to be invalid, then the remainder of the resolution shall be deemed valid, it being expressly declared that this resolution, and each and every section, subsection, clause and phrase hereof would have been prepared, proposed, approved, adopted and/or ratified even if any other section, subsection, sentence, clause or phrase of this resolution were declared invalid.

SECTION 12. The City Clerk shall certify to the passage and adoption of this resolution by a two-thirds vote of all members of the City Council and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED this ________ day of ___________, 2024.

MAYOR of the City of
San Clemente, California
ATTEST:

CITY CLERK of the City of
San Clemente, California
51 Resolution No. 24-126 Page 6

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-126 was adopted at a regular meeting of the City Council of the City of San Clemente held on the ___________ day of , 2024, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California this ____________ day of ________________, 2024.

CITY CLERK of the City of
San Clemente, California
Approved as to form:

Elizabeth A. Mitchell, City Attorney
52 4853-7402-1332 v1

EXHIBIT A TO
RESOLUTION NO. 24-126
ORDINANCE NO. 1777

AN ORDINANCE OF THE CITY OF SAN CLEMENTE,
CALIFORNIA, ADDING A NEW CHAPTER 3.22 TO THE

SAN CLEMENTE MUNICIPAL CODE ESTABLISHING

AND IMPOSING A DEDICATED ONE HALF OF ONE
PERCENT (0.5%) SPECIAL TRANSACTIONS AND

USE (SALES) TAX FOR MAINTAINING BEACH

ACCESS FOR RESIDENTS, KEEPING SAND ON

LOCAL SAN CLEMENTE BEACHES, REDUCING

BEACH EROSION, PROTECTING OCEAN WATER

QUALITY AND SURFING AND OCEAN SWIMMING

LOCATIONS, RESTORING AND MAINTAINING THE

BEACH TRAIL, PIER AND LIFEGUARD LIFESAVING

EQUIPMENT TO BE ADMINISTERED BY THE

CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION
WHEREAS, San Clemente beaches have been deteriorating since the 1990s, but with recent extreme rainstorms and the erosion of beaches and bluffs, independent scientists now say the problem is getting worse; and
WHEREAS, this ordinance includes stringent fiscal accountability provisions and safeguards such as requiring public disclosure of all spending and guaranteed annual independent audits to ensure funds are used efficiently, effectively, and as promised; and WHEREAS, the funding from this ordinance is dedicated to restoring San Clemente’s local beaches and keeping local beaches and coastal waters clean and in good condition for years to come and by law, funding cannot be taken for other purposes, so residents can know where their money is going; and
WHEREAS, a significant portion of the funding from this ordinance will come from residents of nearby cities, tourists and other people who come to San Clemente and this Measure will allow non-residents to contribute towards maintaining, protecting and restoring the local beaches and coastal waters that they enjoy when they visit our City; and
WHEREAS, Article XVI, section 6 of the California Constitution requires all funding to be spent locally for the benefit of the San Clemente community and cannot be taken by the County, State or Federal government; and
WHEREAS, the funds of this ordinance will be dedicated to be used for the following resident identified priorities: maintaining local beaches and beach access for residents, keeping sand on local San Clemente beaches, reducing beach erosion, protecting ocean water quality, protecting surfing and ocean swimming locations, and restoring and maintaining the beach trail, the City pier and City lifeguard lifesaving 53 equipment and facilities, all of which will help protect San Clemente’s local beach economy, and will not be used for any other purposes; and WHEREAS, pursuant to California Revenue and Taxation Code section 7285.91 the City of San Clemente ("City") has the authority to levy a Transactions and Use (“Sales”) Tax for specific purposes that is subject to voter approval; and WHEREAS, Article XIIIC, section 2(d) of the California Constitution requires that this ordinance must be approved by a two-thirds vote of the voters voting on the issue; and
WHEREAS, on July 17, 2024, the City Council held a hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax; and
WHEREAS, on August 6, 2024, the City Council held a duly noticed public hearing where all interested persons were heard on the matter of holding an election for the purpose of amending the San Clemente Municipal Code relating to a proposed Transactions and Use (Sales) Tax; and
WHEREAS, on August 6, 2024, the City Council submitted this ordinance to the voters of the City of San Clemente to decide on November 5, 2024; and WHEREAS, the proposed Chapter 3.22 of the San Clemente Municipal Code, set forth below, establishes a transactions and use tax to be administered by the California Department of Tax and Fee Administration consistent with state law.

NOW THEREFORE, subject to approval by an affirmative, two-thirds vote of the qualified electors as required by law, the People of the City of San Clemente do ordain as follows:

SECTION 1. FINDINGS
The facts set forth in the recitals are true and correct and incorporated herein by this reference. The recitals constitute findings in this matter and, together with the staff report, other written reports, public testimony and other information contained in the record, are an adequate and appropriate evidentiary basis for the actions taken in this Ordinance.

SECTION 2. ADDITION OF CHAPTER 3.22
The San Clemente Municipal Code is hereby amended to add Chapter 3.22 as set forth below, thereby enacting a one half of one percent special local transactions and use tax within the City of San Clemente, to be administered by the California Department of Tax and Fee Administration:

CHAPTER 3.22: SAN CLEMENTE BEACH PROTECTION, RESTORATION

AND CLEAN OCEAN SPECIAL TRANSACTIONS AND USE TAX
Sections:
54 3.22.010 Title.

3.22.020 Operative date.

3.22.030 Purpose.

3.22.040 Contract with state.

3.22.050 Transactions tax rate.

3.22.060 Place of sale.

3.22.070 Use tax rate.

3.22.080 Adoption of provisions of state law.

3.22.090 Limitations on adoption of state law and collection of use taxes.

3.22.100 Permit not required.

3.22.110 Exemptions and Exclusions.

3.22.120 Amendments of Revenue and Taxation Code.

3.22.130 Enjoining collection forbidden.

3.22.140 Amendments by City Council.

3.22.150 Use of proceeds; Expenditure Plan.

3.22.160 Independent Annual Audit.

3.22.170 Citizen Oversight Committee.

3.22.180 Severability.

3.22.010 Title.

The Ordinance codified in this chapter shall be known as the "San Clemente Beach Protection, Restoration and Clean Ocean Special Transactions and Use Tax." The City of San Clemente hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City.

3.22.020 Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance, the date of adoption being set forth below.

3.22.030. Purpose.
55 This Ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a specific purpose retail transactions and use tax, in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2, which authorizes the City to adopt this tax ordinance which shall be operative if a two-thirds vote of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a specific purpose retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

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

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

3.22.040 Contract with State.

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

3.22.050 Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.5 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of this Ordinance.

3.22.060 Place of Sale.

For the purposes of this Ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the 56 place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of a transactions tax proposed by this Ordinance shall be determined under rules and regulations prescribed and adopted or to be prescribed and adopted by the California Department of Tax and Fee Administration or under the Revenue and Taxation Code.

3.22.070 Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date of this Ordinance for storage, use or other consumption in said territory at the rate of 0.5 percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.22.080 Adoption of Provisions of State Law.

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

3.22.090 Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

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

1. The word "State" is used as part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

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

3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property that would not otherwise be exempt from this tax while such sales, storage, use or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that code. 57 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715 (except in relation to the Code of Civil Procedure and the Civil Code), 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 and in the definition of that phrase in Section 6203 of the Revenue and Taxation Code.

C. The word "City" shall be substituted for the word "state" in Revenue and Taxation Code Sections 6041 and 6044.

3.22.100 Permit/Registration Not Required.

A. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this Ordinance.

B. If a marketplace facilitator is registered or required to register with the California Department of Tax and Fee Administration under Chapter 2 (commencing with Section 6051), Chapter 3 (commencing with Section 6201), or under any other law that imposes a fee administered pursuant to Part 30 (commencing with Section 55001) of the Revenue and Taxation Code, no additional registration is required by this Ordinance.

3.22.110 Exemptions and Exclusions.

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

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

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

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

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

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

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

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

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

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

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this Ordinance.

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

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

6. Except as provided in subsection (7) of this section, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a 59 place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

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

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

3.22.120 Amendments of Revenue and Taxation Code.

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

3.22.130 Enjoining Collection Forbidden.

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

3.22.140 Amendments by City Council.

The following amendments to this Ordinance as codified in this chapter must be approved by the voters of the City: increasing the tax rate; revising the methodology for calculating the tax, such that a tax increase would result; imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminating the tax. The City Council may otherwise amend this Ordinance as codified in this chapter without submitting the amendment to the voters for approval in any manner that does not constitute a tax "increase" as that term is defined in Government Code section 53750(h).

3.22.150 Use of Proceeds; Expenditure Plan.

The proceeds from the tax imposed by this Chapter shall be used exclusively for the following specific purposes: the preservation of the City’s coastal resources, including, but not limited to, maintaining local beaches, maintaining beach access for residents, 60 keeping sand on local San Clemente beaches, reducing beach erosion, protecting ocean water quality, protecting surfing and ocean swimming locations, enhancing and maintaining clean local beaches, and restoring and maintaining beach infrastructure, including the beach trail, the City pier and City lifeguard lifesaving equipment and facilities.

All tax proceeds received pursuant to this Chapter shall be deposited into a special fund to be known as the Beach Protection, Restoration and Clean Ocean Fund.

3.22.160 Independent Annual Audit.

The proceeds resulting from this transactions and use tax shall be subject to the same independent annual audit requirements as other City revenues. The independent auditor's report, which shall include an accounting of the revenues received and expenditures made from the transactions and use tax, will be presented annually to the City Council and made available for public review.

3.22.170 Oversight Committee.

A. Committee Established. The City’s Investment Advisory Committee is hereby established an Oversight Committee with respect to this chapter.

B. Functions and Duties. The Oversight Committee’s functions and duties are to:

1. Review expenditures of special revenue collected pursuant to this Chapter only to determine whether such funds are expended for the purposes specified herein.

2. Issue reports on its findings to the City Council at least annually.

3. Review annual financial or performance audits performed by an independent auditor pursuant to Section 3.22.160.

C. Conduct of Committee. The Oversight Committee shall conduct itself and be subject to the same requirements as the Investment Advisory Committee as set forth in Chapter 2.43 of this Code and shall be subject to the rules and regulations regarding the conduct of meetings under state and City law and to the provisions of this Code and any other applicable ordinance or policy of the City.

3.22.180 Severability.

If any provision of this Ordinance as codified in this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The People of the City of San Clemente hereby declare that they would have adopted this Ordinance as codified in this chapter irrespective of the invalidity of any particular portion thereof and intend that the invalid portions should be severed, and the balance of the Ordinance be enforced.

SECTION 3. ENVIRONMENTAL REVIEW
61 The adoption of this Ordinance is not a "project" subject to the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Sections 21000 et seq.). CEQA Guideline 15378(b)(4) provides that the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment are not projects subject to the requirements of CEQA.

SECTION 4. IMPLEMENTATION
This Ordinance authorizes City of San Clemente officers and employees to take all steps necessary to implement this Ordinance in the manner required by law, including any applicable amendments to the laws of the State of California.

SECTION 5. ADOPTION
Pursuant to Elections Code Section 9217, this Ordinance shall be considered as adopted upon the date that the vote by the electorate of the City of San Clemente is declared by the City Council, and shall become effective ten (10) days after that date.

SECTION 6. CERTIFICATION
The City Clerk shall certify to the adoption of this Ordinance by the voters, cause it to be published as required by law, and forward a copy of the adopted Ordinance to the California Department of Tax and Fee Administration.

PASSED, APPROVED AND ADOPTED BY THE PEOPLE OF THE CITY OF SAN CLEMENTE this 5th day of November, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December __, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________
Mayor of the City of
San Clemente, California
ATTEST:
62 __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
__________________________
City Attorney of the City of
San Clemente, California
63 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 10A.

Submitted By: City Clerk
Prepared By: Laura Campagnolo, City Clerk
Subject:
..titl e

DESIGNATION OF VOTING DELEGATE AND ALTERNATE(S) TO REPRESENT SAN CLEMENTE ..body AT THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING Fiscal Impact:

No fiscal impact to appoint a voting delegate.

Summary:

The League of California Cities Annual Conference is scheduled for October 16-18, 2024 in Long Beach, California. A portion of the Annual Conference is the Annual Business Meeting that will take place on October 18, 2024. At this meeting, the League membership considers and takes action on resolutions that establish Cal Cities policy.

In order to vote at the Annual Business Meeting, the City Council must designate a voting delegate. City Council may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to do so.

At this time, staff requests that City Council determine whether or not to appoint a voting delegate/alternate(s) to represent the City at the Annual Business Meeting on October 18, 2024.

Council Options:
 Appoint a voting delegate and alternate(s) to represent San Clemente at the League of California Cities Annual Business Meeting.
 Determine to not select voting delegates or alternate(s).  Request staff to return to the September 3, 2024 City Council meeting with additional information.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Determine whether or not to appoint a voting delegate to represent the City at the Annual Business Meeting of the League of California Cities Annual Conference on October 18, 2024, and 64 Meeting Date: August 6, 2024 Agenda Item: 10A.

CITY OF SAN CLEMENTE 2
also determine whether or not to appoint an alternate(s) to vote on the City’s behalf in the event the voting delegate is unable to vote at the Annual Business Meeting. ..end
Attachment:

1. CalCities Voting Delegate Notice
Notification:

CalCities
65 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, July 10, 2024
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 16-18, 2024 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Oct. 18, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 25. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.

Council Action Advised by September 25, 2024
Attachment 1
66 For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 16, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 17, 7:30 a.m.-4:00 p.m. On Friday, Oct. 18, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 25. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly 67 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
68 Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). 69 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (1)
70 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Wednesday, July 17, 2024
City Council
Special and Adjourned Regular
Meeting Minutes
5:30 p.m. - Closed Session (Special Meeting)
6:00 p.m. - Business Meeting (Adjourned Regular Meeting) Mayor Cabral
Mayor Pro Tem Enmeier
Councilmember Duncan
Councilmember Knoblock
Councilmember Loeffler
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

A Special and Adjourned Regular Meeting of the San Clemente City Council was called to order by Mayor Cabral on July 17, 2024 at 5:30 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

PRESENT: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral STAFF PRESENT: Andy Hall, City Manager; Elizabeth Mitchell, City Attorney; Laura Campagnolo, City Clerk; Megan Jimenez, Deputy City Clerk

CLOSED SESSION
Motion by Councilmember Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to recess to Closed Session at 5:31 p.m. to discuss the following:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 1

1. Case Name: Brian Dick, et al. v. City of San Clemente, et al. Orange County Superior Court Case No.: 30-2024-01406991-CU-WM-CXC
AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
Closed Session concluded at 5:56 p.m.

BUSINESS MEETING
The meeting reconvened at 6:00 p.m. with all Councilmembers present.

INVOCATION
Assistant Pastor Matt Levchak, Calvary Chapel, San Clemente, gave the invocation.

71 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024

PLEDGE OF ALLEGIANCE
Suzanne Ruiz led the Pledge of Allegiance.

1. Special Presentations
None.

2. Council Member Reports
Mayor Cabral:
· Attended the Retired Senior Volunteer Program (RSVP) Luncheon on June 19, 2024.
· Met with the Lifeguard Foundation on June 20, 2024 concerning the proposed statue placement at Parque Del Mar.
· Met with CiviSocial regarding the City’s social media and public outreach efforts.
· Attended Island Nights at the Ole Hanson Beach Club on June 20, 2024. · Celebrated Rainbow Sandals 50th Anniversary on June 21, 2024. · Attended the Orange County Flag Day Event on June 14, 2024. · Spoke at the San Clemente Arts Association event.
· Attended the PierPride Community Outreach Session on June 24, 2024. · Commented on the Grants Pass Supreme Court case.
· Attended the City’s 4th of July events.
· Attended the Summer Beach Concert on July 11, 2024.
· Attended a conference at the University of California, Irvine concerning sand retention and methods.

Councilmember Loeffler:
· Attended the Summer Beach Concert on July 11, 2024.
· Announced the next Summer Concert is scheduled for July 18 at Linda Lane Park.

Councilmember Knoblock:
· Attended the San Clemente Ocean Festival Sponsor and Friends Appreciation Dinner on July 11, 2024.
· Announced the upcoming Ocean Festival on July 20-21, 2024. · Attended the Coastal Advisory Committee Liaison Group on July 12, 2024.

Mayor Pro Tem Enmeier:
· Acknowledged the 50th Anniversary of Rainbow Sandals. · Attended the Roos Studio ribbon cutting event on June 21, 2024. · Attended the Chamber of Commerce Government and City Affairs Meeting on June 26, 2024.
· Attended the Orange County Sheriff’s Department Technology Center ribbon cutting on June 27, 2024.

72 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 · Attended the City’s 4th of July events.
· Attended the South Orange County Economic Coalition Board Installation on July 10, 2024.
· Attended the 16th Annual Orange County Fire Authority’s Best and Bravest Awards on July 11, 2024.

Councilmember Duncan reported:
· Acknowledged the City’s successful 4th of July events. · Attended the 16th Annual Orange County Fire Authority’s Best and Bravest Awards on July 11, 2024.
· Hosted the Professional Pickleball Association (PPA) at Lifetime Fitness. · Acknowledged Bella Kenworthy’s win in the challenger’s series in South Africa.

3. Oral Communications (Part 1)
Amanda Quintanilla narrated a PowerPoint presentation entitled "Poll - General Election". A hard copy of the presentation is on file with the City Clerk.

Ira Horwitz, San Clemente, expressed concerns regarding unmaintained property owned by the City of San Clemente, adjacent to his property, as it relates to wildfire risk.

Suzanne Ruiz, San Clemente, expressed concerns regarding unlicensed taco carts in San Clemente.

Lois McNicoll commented on elected officials and their actions.

Tom Streeter, San Clemente, opined on how the City should address homelessness following the Supreme Court decision in the Grants Pass case.

Lisa Edone, San Clemente, commented on electric bicycle safety regulations and enforcement.

Maura Mikulec commented on the Grants Pass case as it relates to service resistant individuals.

Craig Borner, San Clemente, commented on his experience with electric bicycle riders.

Suzanne Mooneyham voiced concerns with unlicensed taco carts in San Clemente.

Mike Kay, San Clemente, commented on the Grants Pass case; opined that the City should adopt a zero tolerance policy on homelessness due to fire concerns and insurance costs for residents.

73 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024

4. Motion waiving reading in full of all Resolutions and Ordinances Motion by Mayor Pro Tem Enmeier, second by Councilmember Duncan, CARRIED 5-0, to waive reading in full of all Resolutions and Ordinances.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

5. Consideration of agendizing items requiring immediate action Mayor Pro Tem Enmeier requested that the City Council consider allocating funds for Marblehead Elementary to assist with fingerprinting school volunteers.

It was determined that this does not qualify as an item that can be considered for immediate action, and will be agendized for the August 6, 2024 City Council meeting.

6. Closed Session Report - City Attorney
City Attorney Mitchell announced that the following action was taken in Closed Session:

Direction given, no reportable action concerning:

Case Name: Brian Dick, et al. v. City of San Clemente, et al. Orange County Superior Court Case No.: 30-2024-01406991-CU-WM-CXC

7. Staff Communications
None.

8. Public Hearings
None.

9. Unfinished Business
None.

74 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024

10. New Business
10A. CONSIDERATION OF A RESOLUTION, CALLING AN ELECTION IN THE CITY OF SAN CLEMENTE TO BE CONSOLIDATED WITH THE CITY’S NEXT GENERAL MUNICIPAL ELECTION ON NOVEMBER 5, 2024, SUBMITTING TO THE ELECTORS A BALLOT MEASURE TO INCREASE THE CITY’S SALES AND USE TAX (“SALES TAX”) BY ONE CENT BY AMENDING SECTION

3.20.050 (RATE) OF CHAPTER 3.20 (SALES AND USE TAX) OF TITLE 3 OF

SAN CLEMENTE MUNICIPAL CODE, ESTABLISHING THE POLICIES AND

PROCEDURES FOR SUCH AN ELECTION, REQUESTING THAT ORANGE

COUNTY PROVIDE ELECTION SERVICES, DIRECTING THE CITY

ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AND AUTHORIZING THE FILING OF REBUTTAL ARGUMENT; AND CONSIDERATION OF A

RESOLUTION ADOPTING ADVISORY SPENDING GUIDELINES FOR THE

MEASURE ACCORDING TO RESIDENT IDENTIFIED PRIORITIES
City Manager Hall narrated a PowerPoint presentation concerning a proposed tax measure and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Amanda Quintanilla narrated a PowerPoint presentation entitled "Ballot Measure". A hard copy of the presentation is on file with the City Clerk.

Louise Herbert, San Clemente, spoke in support of the general tax; expressed concerns regarding potential politization of the proposed tax in City Council elections.

Ken Pozekaj, San Clemente, spoke in support of a special purpose tax.

Christopher Butler, North Beach Community Association, spoke in support of City efforts to place sand on the beaches; urged the City to invest in additional revenue generating opportunities and promote new development.

Cameron Cosgrove, San Clemente, spoke in support of the proposed general tax.

Michelle Brooks spoke in support of a special purpose tax.

Steve Lang, San Clemente, spoke in support of a tax measure.

Jeff Berg, Bring Back Our Beaches, spoke is support of a tax increase; commented on the potential benefits of beach tourism on the local economy with more sand on the beach.

Donna Vidrine, San Clemente, spoke in opposition to the proposed ballot measure.

75 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 Tim Brown, San Clemente, spoke on political courage and potential future impacts on the community; supports a special purpose tax.

Mayor Cabral narrated a PowerPoint presentation entitled "San Clemente Coastal Projects & Plans". A hard copy of the presentation is on file with the City Clerk.

Meeting Recessed
The meeting recessed at 8:22 p.m. and reconvened at 8:29 p.m. with all Councilmembers present.

Motion by Mayor Cabral, second by Councilmember Loeffler, to:

1. Reinstate the Regular City Council meeting of August 6, 2024.

2. Direct staff to return to the August 6, 2024 City Council meeting with an administrative report for the City Council to consider a special purpose tax ballot measure reduced from 1 cent to 3/4 cent designated specifically for sand and beach maintenance purposes.

Substitute motion by Councilmember Duncan, second by Councilmember Knoblock, FAILED 2-3 (Mayor Cabral, Councilmember Loeffler and Mayor Pro Tem Enmeier voting NOE) to table this item.

AYE: Duncan and Knoblock
NOE: Enmeier, Loeffler and Mayor Cabral
The original motion by Mayor Cabral, second by Councilmember Loeffler, was considered and CARRIED 3-2 (Councilmember Duncan and Councilmember Knoblock voting NOE) to:

1. Reinstate the Regular City Council meeting of August 6, 2024.

2. Direct staff to return to the August 6, 2024 City Council meeting with an administrative report for the City Council to consider a special purpose tax ballot measure reduced from 1 cent to 3/4 cent designated specifically for sand and beach maintenance purposes.

AYE: Enmeier, Loeffler and Mayor Cabral
NOE: Duncan and Knoblock

76 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 10B. CALLING THE GENERAL MUNICIPAL ELECTION OF NOVEMBER 5, 2024 City Clerk Campagnolo reviewed the contents of the Administrative Report and responded to City Council inquiries.

Motion by Councilmember Knoblock, second by Councilmember Loeffler, to:

1. Adopt Resolution No. 24-108 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, CALLING FOR

THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 FOR THE ELECTION OF CERTAIN

OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES.

2. Adopt Resolution No. 24-109 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, REQUESTING

THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 5, 2024, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE CALIFORNIA ELECTIONS CODE.

3. Adopt the State of California standard of resolving a tie vote by lot in lieu of adopting a Resolution calling for a Special Election.

Substitute motion by Mayor Pro Tem Enmeier, second by Mayor Cabral, FAILED 2-3 (Councilmember Duncan, Councilmember Loeffler and Councilmember Knoblock voting NOE) to:

1. Adopt Resolution No. 24-108 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, CALLING FOR

THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 FOR THE ELECTION OF CERTAIN

OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES.

2. Adopt Resolution No. 24-109 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, REQUESTING

THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 5, 2024, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE CALIFORNIA ELECTIONS CODE.

3. Adopt Resolution No. 24-110 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, PROVIDING FOR

THE CONDUCT OF A SPECIAL RUNOFF ELECTION FOR ELECTIVE

77 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 OFFICES IN THE EVENT OF A TIE VOTE AT ANY MUNICIPAL ELECTION.

AYE: Enmeier and Mayor Cabral
NOE: Duncan, Knoblock and Loeffler
The original motion by Councilmember Knoblock, second by Councilmember Loeffler, was considered and CARRIED 5-0, to:

1. Adopt Resolution No. 24-108 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, CALLING FOR

THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 FOR THE ELECTION OF CERTAIN

OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES.

2. Adopt Resolution No. 24-109 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, REQUESTING

THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 5, 2024, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE CALIFORNIA ELECTIONS CODE.

3. Adopt the State of California standard of resolving a tie vote by lot in lieu of adopting a Resolution calling for a Special Election.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

11. Consent Calendar
A. City Council Minutes
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:
(1) APPROVE THE ADJOURNED REGULAR CITY COUNCIL MEETING MINUTES OF JUNE 18, 2024.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

78 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 B. Commission/Committee Minutes
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to approve the following:
(1) BEACHES, PARKS & RECREATION COMMISSION REGULAR MEETING MINUTES OF APRIL 9, 2024.
(2) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF APRIL 24, 2024.
(3) PLANNING COMMISSION REGULAR MEETING MINUTES OF MAY 22, 2024. (4) PLANNING COMMISSION REGULAR STUDY SESSION MINUTES OF MAY 22, 2024.
(5) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF MAY 28, 2024.
(6) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF MAY 29, 2024.
(7) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF JUNE 6, 2024. (8) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF JUNE 20, 2024.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
C. Warrant Register
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:
(1) APPROVE WIRE TRANSFER NOS.
3060 THROUGH 3061 AND WARRANT NOS.
597072 THROUGH 597188, PAID ON
6-7-24, IN THE AMOUNT OF $5,102,693.31
(2) APPROVE WIRE TRANSFER NOS.
3062 THROUGH 3067 AND WARRANT NOS.
597189 THROUGH 597385, PAID ON
6-14-24, IN THE AMOUNT OF $890,524.22
(3) APPROVE WARRANT NOS.
597386 THROUGH 597544, PAID ON
6-21-24, IN THE AMOUNT OF $990,772.71
TOTAL WARRANT REGISTER $6,983,990.24
AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

79 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 Payroll Register
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to approve the following:

WARRANT NO. 937, AUTOMATIC
DEPOSIT ADVISES 94735 THROUGH
95116, FOR THE PERIOD 5-27-24
THROUGH 6-9-24, PAID ON 6-14-24,
IN THE AMOUNT OF $576,675.92
TOTAL PAYROLL REGISTER $576,675.92
AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
11D. ADOPT ORDINANCE NO. 1776 (SECOND READING) - PURCHASING

PROCEDURES
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to adopt Ordinance No. 1776 entitled AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN CLEMENTE MUNICIPAL CODE SECTIONS 3.40.010, 3.40.040, AND

3.40.050 AND ADDING SECTION 3.40.080, ALL RELATING TO PURCHASING PROCEDURES.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
11E. NOTICE OF COMPLETION - SIDEWALK REPAIRS AND IMPROVEMENTS Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 24-114, which will:

1. Accept the Sidewalk Repairs and Improvements, CIP Project Nos. 24304 and 22305, from the contractor, CJ Concrete Construction, Inc.

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the Sidewalk Repairs and Improvements, CIP Project Nos. 24304 and 22305.

3. Authorize the City Clerk to release the payment bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, CJ Concrete Construction, Inc.

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director in

80 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 the amount of 25% of the total construction cost.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
11F. CONSIDERATION OF RATIFYING AMENDMENTS TO A PROFESSIONAL

SERVICES AGREEMENT WITH COASTAL FRONTIERS CORPORATION
APPROVED ON MAY 7, 2024 FOR PHASE 1 OF REESTABLISHING A SAND

COMPATIBILITY AND OPPORTUNISTIC USE PROGRAM (SCOUP)
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 24-115, which will ratify the professional services agreement (C24-22), by and between the City of San Clemente and Coastal Frontiers Corporation, to provide technical assistance to the City in support of the re-establishment of the Sand Compatibility and Opportunistic Use Program (SCOUP) Phase 1 in its amended form, as executed by the City Manager.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
11G. CONTRACT AWARD - GEOTECHNICAL SUPPORT SERVICES FOR THE

CYPRUS SHORE GRADING, STORM DRAIN AND SEWER LIFT STATION

IMPROVEMENTS
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 24-116, which will:

1. Award a Professional Services Agreement to LGC Geotechnical, Inc. for geotechnical support services for the Cyprus Shore Grading, Storm Drain and Sewer Lift Station Improvements.

2. Approve, and authorize the City Manager to execute, Contract No C24-40, by and between the City of San Clemente and LGC Geotechnical, Inc., providing for geotechnical support services for the Cyprus Shore Grading, Storm Drain and Sewer Lift Station Improvements, in an amount not to exceed $88,000.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

81 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 11H. CONTRACT AWARD - DIGESTER NO. 2 CLEANING, RESIDUAL DISPOSAL

AND INSPECTION AND FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 24-117, which will:

1. Find Digester No. 2 Cleaning, Residual Disposal & Inspection, CIP Project No. 21203 categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award the Digester No. 2 Cleaning, Residual Disposal & Inspection, contract to M.P. Environmental Services, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C24-41, by and between the City of San Clemente and M.P. Environmental Services, Inc., providing for the Digester No. 2 Cleaning, Residual Disposal & Inspection, in an amount not to exceed $887,340 in a form substantially similar to Contract No. C24-41(Attachment 2).

4. Approve a 10% construction contingency of $88,734.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
11I. CONTRACT AWARD - PREPARATION OF THE 2025-2029 CONSOLIDATED

PLAN AND CONTINUED COMMUNITY DEVELOPMENT BLOCK GRANT

ADMINISTRATION SERVICES
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 24-118, which will:

1. Find Mike Linares, Inc. has unique familiarity with the project, subject area or possesses other attributes making them uniquely qualified to provide the 2025- 2029 Consolidated Plan, 2025-2026 Annual Action Plan, and Community Development Block Grant Administration Services (CDBG) that the City needs.

2. Award the Professional Services Agreement, as provided as Attachment 2, for the preparation of the 2025-2029 Consolidated Plan, 2024-2025 Annual Action Plan, and Community Development Block Grant Administration Services (CDBG) with Mike Linares, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C24-42, by and between the City of San Clemente and Mike Linares, Inc., providing for

82 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 the preparation of the 2025-2029 Consolidated Plan, 2024-2025 Annual Action Plan, and Community Development Block Grant Administration Services (CDBG), in an amount not to exceed $97,500.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
11J. CONTRACT AWARD - WATER RECLAMATION PLANT SOLIDS HANDLING

BUILDING CENTRIFUGE CONVEYOR MODIFICATIONS AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 24-119, which will:

1. Award the Water Reclamation Plant Solids Handling Building Centrifuge Conveyor Modifications, CIP Project No. 23203, construction contract to Jennette Company, Inc. as the lowest responsive and responsible bidder.

2. Approve, and authorize the City Manager to execute, Contract No. C24-43, by and between the City of San Clemente and Jennette Company, Inc., providing for the Water Reclamation Plant Solids Handling Building Centrifuge Conveyor Modifications in the amount of $156,800, in a form substantially similar to Contract No. C24-43 (Attachment 2).

3. Approve a 10% project contingency of $15,700.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

83 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 11K. CONTRACT AMENDMENT - STREET SWEEPING SERVICES AND FINDING

THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 24-119, which will:

1. Award the Water Reclamation Plant Solids Handling Building Centrifuge Conveyor Modifications, CIP Project No. 23203, construction contract to Jennette Company, Inc. as the lowest responsive and responsible bidder.

2. Approve, and authorize the City Manager to execute, Contract No. C24-43, by and between the City of San Clemente and Jennette Company, Inc., providing for the Water Reclamation Plant Solids Handling Building Centrifuge Conveyor Modifications in the amount of $156,800, in a form substantially similar to Contract No. C24-43 (Attachment 2).

3. Approve a 10% project contingency of $15,700.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None

12. Oral Communications (Part 2)
None.

13. Future Agenda Items
Consideration of Regulations and Enforcement of Unlicensed Food Vendors
Councilmember Knoblock, with the support of Mayor Cabral and Mayor Pro Tem Enmeier, agendized consideration of an Ordinance to address unlicensed food vendors and establish an enforcement protocol. The Administrative Report should include what other municipalities are doing to address unlicensed food vendors.

Consideration of an Appropriation of Funds for Marblehead Elementary Mayor Pro Tem Enmeier, with the support of Councilmember Duncan and Councilmember Loeffler, agendized for the August 6, 2024 City Council meeting, consideration of allocating funds in the amount of $1,800 for Marblehead Elementary to assist with fingerprinting school volunteers.

84 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024

14. Reports
A. Commissions and Committees
(1) RESIGNATION OF RICHARD KAY FROM THE BEACHES, PARKS AND

RECREATION COMMISSION
Motion by Councilmember Knoblock, second by Councilmember Loeffler, to appoint Teddy Kahn to the Beaches, Parks and Recreation Commission for a term set to expire June 30, 2026.

Substitute motion by Mayor Pro Tem Enmeier, second by Councilmember Duncan, FAILED 2-3 (Councilmember Knoblock, Councilmember Loeffler and Mayor Cabral voting NOE) to appoint Douglas Juvinall to the Beaches, Parks and Recreation Commission for a term set to expire June 30, 2024.

AYE: Duncan and Enmeier
NOE: Knoblock, Loeffler and Mayor Cabral
The original motion by Councilmember Knoblock, second by Councilmember Loeffler, was considered and CARRIED 4-1 (Mayor Pro Tem Enmeier voting NOE) to appoint Teddy Kahn to the Beaches, Parks and Recreation Commission for a term set to expire June 30, 2024.

AYE: Duncan, Knoblock, Loeffler and Mayor Cabral
NOE: Enmeier
B. Council Subcommittee Updates
San Onofre Nuclear Generating Station (SONGS)
Mayor Cabral announced that the San Onofre Nuclear Generating Station (SONGS) will be conducting an additional canister shake test in San Diego on July 18, 2024.

C. City Attorney
None.

85 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024 D. City Manager
Contracts Executed Under the City Managers Authority
City Manager Hall reported that he executed the following contracts under his signature authority:

1. UltraSystems Environmental providing for Professional Environmental Consulting Services in the amount of $19,680.

2. ASSI Security providing for Orange County Sheriff's Department Secure Parking at City Hall in the amount of $23,423.

3. Sancon Technologies, Inc. providing for Sewer Line Rehabilitation PN. 28206 in the amount of $41,874.

4. Powerhouse Combustion and Mechanical Corporation providing for Boiler/Sludge Heater in the amount of $13,996.

5. Willdan Engineering providing for Commercial Stormwater Compliance Inspection in the amount of $19,000.

6. Duncan Engineering providing for the Marine Pier Structural Assessment in the amount of $32,353.

7. Theresa Dobbs providing for the First Amendment CDBG Housing Rehabilitation in the amount of $25,000 (an increase of $3,000).

8. LSA Associates, Inc. providing for the Montalvo Canyon Outlet Improvements in the amount of $9,920.

9. Royal Access providing for the Orange County Sheriff's Department Secure Parking at City Hall in the amount of $47,245.

10.Solis Lighting and Electrical Services providing for the Orange County Sheriff's Department Secure Parking at City Hall in the amount of $32,195.

86 City Council Special and Adjourned Regular Meeting Minutes July 17, 2024

15. Adjournment
Motion by Councilmember Knoblock, second by Councilmember Loeffler, CARRIED 5-0, to adjourn at 9:13 p.m. The next Regular Meeting will be held on August 6, 2024. Closed Session will begin at 5:00 p.m.The Business Meeting will commence at 6:00 p.m. The meeting will take place at City Hall Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
_______________________________
MAYOR of the City of
San Clemente, California
_______________________________
CITY CLERK of the City of
San Clemente, California

87 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (1)
88 89
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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 1
Meeting Date: August 6, 2024 Agenda Item: (2)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR STUDY SESSION MINUTES OF MAY 22, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

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

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (3)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR MEETING MINUTES OF MAY 22, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

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

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (4)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR MEETING MINUTES OF JUNE 5, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
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2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (5)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION SPECIAL MEETING MINUTES OF JUNE 26, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

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

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (6)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
HUMAN AFFAIRS COMMITTEE REGULAR MEETING MINUTES OF JULY 9, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
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CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

HUMAN AFFAIRS COMMITTEE
JULY 9, 2024

1. CALL TO ORDER/ROLL CALL
Chair Edone called the Regular Meeting of the City of San Clemente Human Affairs Committee to order on July 9, 2024, at 3:30 p.m. The meeting was held at San Clemente City Hall, First Floor Community Room located at 910 Calle Negocio, San Clemente, California.

Committee
Members Present: Chair Lisa Edone, Vice Chair Rosemary Salas, and Members Stuart Anderson, Cord Bauer, Tyler Boden and
Dick Veale
Members Absent: Member Michelle Brooks
Guests: Tom Streeter, Resident
Staff Present: Tamara Tatich, Office Specialist

2. PLEDGE OF ALLEGIENCE
The Pledge was led by Tom Streeter.

3. APPROVAL OF MINUTES
A. Approve Minutes from the June 11, 2024 Regular Meeting of the Human Affairs Committee.

MOTION BY VICE CHAIR SALAS, SECONDED BY MEMBER BODEN AND CARRIED 6-0, MEMBER BROOKS ABSENT, to approve the minutes from the June 11, 2024 Meeting of the Human Affairs Committee, as submitted.

4. SPECIAL OR PUBLIC PRESENTATION
None.

5. UNFINISHED BUSINESS AND UPDATES
A. FY 2023-2024 Work Plan
123

Minutes of the Regular Meeting of the Human Affairs Committee of July 9, 2024 Review and finalize Homelessness Strategy Report, to accompany other previously-approved FY 2023-2024 Work Plan Project reports, to be submitted to City Council in conjunction with proposed FY 2024-2025 Work Plan.

Member Anderson indicated the subcommittee would finalize the report.

Member Dick Veale suggested Member Anderson be recognized for his work on the report.

Member Anderson indicated the report would be finalized by August 5, 2024, for approval at the August 13, 2024 HAC meeting.

Resident Tom Streeter discussed the Supreme Court decision regarding homelessness.

6. NEW BUSINESS
A. Nomination and Selection of Human Affairs Committee Chair and ViceChair Annually, at the first meeting after the newly appointed Committee members assume office in July, the Committee is required to select a chair and vice- chair from among its members.

MOTION BY VICE CHAIR SALAS, SECONDED BY MEMBER ANDERSON AND CARRIED 6-0, MEMBER BROOKS ABSENT, to appoint Lisa Edone as Chair.

MOTION BY CHAIR EDONE, SECONDED BY MEMBER BODEN AND CARRIED 6-0, MEMBER BROOKS ABSENT, to appoint Rosemary Salas as Vice Chair.

B. Consideration of Establishing New Meeting Schedule and Location of Meetings
The Committee reviewed the Calendar and approved the proposed schedule.

C. Consideration and Development of Human Affairs Committee FY 2024- 2025 Work Plan
Review and discussion by the Committee related to City Council’s direction to develop a committee work plan to be submitted to Council by October 1, 2024.

Office Specialist Tatich presented the staff report.

The Committee discussed the need to complete the Senior Center project and funding for the Senior Center and the “Every 15 Minutes” event. 124

Minutes of the Regular Meeting of the Human Affairs Committee of July 9, 2024 Chair Edone suggested the members bring one to two project proposals at the next meeting, focused on humanitarian needs.

Member Bauer discussed the AI poll.

Member Boden discussed the Committee’s task to act as a sounding board for the community’s needs.

7. ORAL AND WRITTEN COMMUNICATION
None.

8. COMMUNICATIONS FROM COMMITTEE MEMBERS AND STAFF
Member Boden announced that the two rotary clubs had merged which would provide additional funds to Character Counts.

Member Veale announced the FAM golf tournament on August 5, 2024.

ADJOURNMENT
CHAIR EDONE ADJOURNED THE MEETING AT 4:08 P.M. TO THE REGULAR HUMAN AFFAIRS COMMITTEE MEETING TO BE HELD ON AUGUST 13, 2024, AT 3:30 P.M. AT SAN CLEMENTE CITY HALL, FIRST FLOOR COMMUNITY ROOM, LOCATED AT 910 CALLE NEGOCIO, SAN CLEMENTE, CALIFORNIA.

Respectfully submitted,
______________________________
Lisa Edone, Chair
Attest: ______________________________
Tamara Tatich, Office Specialist
125
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (7)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF JULY 18, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
126

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING

OF THE ZONING ADMINISTRATOR
JULY 18, 2024
San Clemente City Hall
First Floor Community Room
910 Calle Negocio
San Clemente, California 92673

1. CALL TO ORDER
Zoning Administrator (ZA) Adam Atamian called the Regular Meeting of the City of San Clemente Zoning Administrator to order on July 18, 2024 at 3:00 p.m. The meeting was held in the First Floor Community Room of City Hall, 910 Calle Negocio, San Clemente, California.

Staff Present: Adam Atamian, Zoning Administrator
Zach Rehm, Principal Planner
David Carrillo, Associate Planner
Tamara Tatich, Office Specialist

2. MINUTES
A. Minutes from the Zoning Administrator Regular Meeting of July 18, 2024.

ZA Atamian received and filed the minutes for the regular meeting of July 18, 2024.

3. ORAL AND WRITTEN COMMUNICATION
None.

4. PUBLIC HEARING
A. Public Hearing Project (PHP) 24-054, Happy Coffee Outdoor Beer and Wine Service and Off-Site Parking Agreement, 114 Avenida Victoria
The Zoning Administrator considered a request to allow Minor Conditional Use Permit (MCUP) 24-057 for outdoor beer and wine service at a café, and an off-site parking agreement between the City and the café for use of parking spaces at a City-owned parking lot located at 118 Avenida Rosa.

The Zoning Administrator also considered whether the project is categorically exempt from CEQA pursuant to State CEQA Guidelines §15301 (Class 1: Existing Facilities).

Assistant Planner David Carrillo summarized the staff report. 127
Minutes of the Zoning Administrator Regular Meeting July 18, 2024 Page 2 Applicant Mikael Sanchez stated that staff presented a thorough report, and Cameron Houle, owner of Happy Coffee concurred with Mr.

Sanchez.

ZA Atamian opened the public hearing and asked the applicant to describe the food service at the café. Mr. Sanchez stated that the menu was previously provided to staff and consists of paninis and basic café fare.

ZA Atamian called out Condition 4.12 stating a need to modify the Condition since the request is to serve beer and wine, and therefore must be a FSE.

ZA Atamian inquired if there has been any conversation with Senior Center staff on the parking schedule. Staff stated that the Senior Center staff are in support providing there is a Condition that parking be restricted to only Senior Center use during their operations; and that parking is available after 4:00 p.m. and on weekends when the Senior Center is closed.

ZA Atamian acknowledged that there have been issues with trespassing at the Senior Center, and that they have been placing “no trespassing” signs when the Senior Center is closed. ZA Atamian asked how this is anticipated to work with the signage, as the request is to allow for public access to the property between the time that the Senior Center is closed and the café would also be closed. ZA Atamian recognized the potential of a situation where signs are not in place and therefore no enforcement of trespassing. ZA Atamian requested that staff ensure this be covered in the Parking Lease Agreement.

ZA Atamian asked how will the public know that there is intermittent parking available at the Senior Center, and to ensure this is also in the Parking Lease Agreement.

ZA Atamian stated that off-site parking generally aims to be available at all times. It seems that the plans call for daily seating modifications. The seating plan identifies 8 outdoor seats and 16 indoor seats in the morning; and then 16 outdoor and 32 indoor seats in the evening. ZA Atamian confirmed with the applicant that the plan is to move chairs each day. ZA Atamian questioned the applicant if they were confident that this is a task that would occur each day. Staff stated that the applicant will be returning to request parking waivers after this approval to be able to operate at full capacity using waivers during day and parking at the Senior Center in the evenings and on the weekends when the center is closed.

A discussion on placement of unused chairs ensued and the applicant explained that the daytime is intended to be more counter service where 128
Minutes of the Zoning Administrator Regular Meeting July 18, 2024 Page 3 food and coffee are “grab and go;” while the beer and wine service with food in the evenings and on weekends would require seating. The applicant stated that they would find a location to store the chairs until the waivers are obtained.

ZA Atamian stated that he is comfortable with the Conditions with the understanding that the stated concerns are outlined are incorporated in the Parking Lease Agreement with the Senior Center and a request to the City Council to make them aware of those concerns.

ZA Atamian inquired if Engineering had any concerns of cars maneuvering in and our of the last parking stall with the location of the bike parking area. Staff stated that no comments were made.

Having no further questions, ZA Atamian closed the public hearing.

ZA Atamian stated the use and proposed operations of business are permitted in the subject zone; and the investment in the property will revitalize the area and help the esthetics of the street.

ZA Atamian acknowledged that the DMT reviewed the project and was supportive.

ZA Atamian determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines §15301 (Class 1: Existing Facilities).

Action: The Zoning Administrator adopted Resolution ZA24-012, approving Minor Conditional Use Permit 24-057, Happy Coffee Outdoor Beer and Wine Service and Off-Site Parking, 114 Avenida Victoria, subject to following modifications to the Conditions of Approval:

1. Condition 4.12: The applicant shall submit, and must obtain approval from the Utilities Director, plans depicting the Fats, Oils, and Greases (FOG) controls, with the plans and design approved by the Orange County Health Care Agency, for the Food Service Establishment (FSE).

2. Condition 7.17: If the shared parking agreement/lease is approved (reference COA 4.11), the maximum seating count is increased during the hours where shared parking spaces are available. The business and/or property owner may request an amendment to these hours, to be reviewed by the Zoning Administrator, with the benefit of a parking survey that demonstrates surplus parking at the Senior Center parking lot during operating hours of the Senior Center. Until the parking agreement/lease is approved by the City Council, seating shall be limited to 16 indoor and 8 outdoor. If the parking agreement/lease is not approved by the City Council, plans shall be 129
Minutes of the Zoning Administrator Regular Meeting July 18, 2024 Page 4 revised to remove any tables identified on Sheet A-1.2.1 and the space shall be reconfigured such that additional seating beyond that described above is not available.
a. Public Hearing Project (PHP) 24-024, Tentative Parcel Map (TPM) 2023-201, 501 Elena Lane Condominium Subdivision
The Zoning Administrator considered a request to allow a duplex condominium subdivision for individual ownership of two dwelling units at 501 Elena Lane in the Residential Medium (RM) Zoning District.

The Zoning Administrator also considered whether the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines §15315 (Class 15: Minor Land Divisions) and §15301 (Class 1: Existing Facilities).

Principal Planner Zach Rehm summarized the staff report and explained that a review by the California Coastal Commission (CCC) will be necessary for the subdivision.

ZA Atamian invited the applicants to make a presentation, of which Joshua Lewis, applicant and architect responded that the sidewalk development was discussed with staff and that they would not be requesting a sidewalk waiver.

ZA Atamian opened the public hearing and stated that the report and attachments have been reviewed.

ZA Atamian disclosed that he drove by the property.

ZA Atamian asked how far along they were in the development process, and Mr. Lewis replied that they are about a week or two away from rough inspections and will then begin insulation followed by dry wall. Mr. Lewis confirmed that the framing was completed and that they do not anticipate any changes to the project’s elevation going forward.

ZA Atamian stated that he didn’t see a Condition of Approval indicating that the Final Map cannot be approved until the project gets a Final Building Permit. Staff stated that there will be time to get the Final Building Permit, as they will also need to get through the CCC process, and then explained to George Stambuk, owner of the property, that the duplex doesn’t require CCC review, but that CCC review is required for any subdivision of property in this zone. Staff offered to assist with the CCC process.

ZA Atamian stated that there is a section in the Staff Report that discusses the Coastal Act and indicates that this project is required for 130
Minutes of the Zoning Administrator Regular Meeting July 18, 2024 Page 5 review, and confirmed with staff that the subdivision would most likely be issued a CDP waiver.

Having no further questions, ZA Atamian closed the public hearing.

ZA Atamian stated the Findings can be made. ZA Atamian stated the project is a major improvement and the sidewalk will be beneficial in the pedestrian-friendly neighborhood.

ZA Atamian determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines §15315 (Class 15: Minor Land Divisions) and 15301 (Class 1: Existing Facilities).

Action: The Zoning Administrator adopted Resolution ZA24-011, approving Public Hearing Project 24-024 for Tentative Tract Map 24- 030, 501 Elena Lane Condominium Subdivision, subject to the Conditions of Approval with the following addition:

Condition 2.1: Prior to final Parcel Map approval, the owner shall obtain final approval of all building permits, including, but not limited to, B22-0658, required for the development of the duplex.

5. NEW BUSINESS
None

6. OLD BUSINESS
None

7. ADJOURNMENT
The meeting adjourned at 3:41 p.m. to the Regular Meeting of the Zoning Administrator, which will be held Thursday, August 22, 20024 at 3:00 p.m. at Community Development Department, City Hall, First Floor Community Room, located at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,

SAN CLEMENTE ZONING ADMINISTRATOR
__________________________________
Adam Atamian, Zoning Administrator
131
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (1)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3068 through 3073 and Warrant Nos.
597545 through 597748, paid on
6-28-24, in the amount of $1,127,393.42 ..end
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133
134
135
136
137
138
139
140
141
142
143
144
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (2)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3074 through 3075 and Warrant Nos.
597749 through 597904, paid on
7-5-24, in the amount of $4,332,970.62
..end
145
146
147
148
149
150
151
152
153
154
155
156
157
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (3)
..ag endizedby
..end
Subject:
..titl e
Approve Handwrite No. 598028,
Wire Transfer Nos. 3076 through
3083 and Warrant Nos. 597905
through 598027, paid on 7-12-24,
in the amount of $3,302,333.57
..end
158
159
160
161
162
163
164
165
166
167
168
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: (4)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3084 through 3086 and Warrant Nos.
598029 through 598233, paid on
7-19-24, in the amount of $3,708,385.02
TOTAL WARRANT REGISTER $12,471,082.63 ..end
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Warrant No. 938 and Automatic
Deposit Advises 95117 through
95499, for the period 6-10-24
through 6-23-24, paid on 6-28-24,
in the amount of $572,917.17 ..end
185
186
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Warrant No. 939 and Automatic
Deposit Advises 95500 through
95885, for the period 6-24-24
through 7-7-24, paid on 7-12-24,
in the amount of $589,545.83
TOTAL PAYROLL REGISTER $1,162,463.00 ..end
187
188
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 11D.

Submitted By: City Manager
Prepared By: Andy Hall, City Manager
Subject:
..titl e

CONSIDERATION OF APPROVAL OF A LETTER OF OPPOSITION TO ASSEMBLY BILL 2560 REQUIRING LOCAL COASTAL PROGRAMS TO INCLUDE HOUSING PROVISIONS,

INCLUDING DENSITY BONUSES, AND REDUCING LOCAL CONTROL OF HOUSING BY

GIVING OVERSIGHT TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND THE CALIFORNIA COASTAL COMMISSION ..body Fiscal Impact:

There is no direct fiscal impact, however, changes in housing regulations in the Coastal Zone could result in significant fiscal impacts due to the loss of visitor serving establishments and potential decrease in property values.

Summary:

At the current time, California State housing regulations in the Coastal Zone, and specifically density bonuses, require applications to be in harmony with the California Coastal Act. The Act prioritizes items such as the protection of coastal resources, public access, parking and view impacts. The proposed bill would modify the regulations to specifically allow density bonuses and to require all Local Coastal Programs to include housing policies and programs, essentially placing housing regulations in the hands of the California Coastal Commission in the Coastal Zone.

Background:

California housing density bonus law requires local governments to provide additional housing units, concessions, waivers, reduction of parking and other requirements, and other incentives to affordable housing projects if there is a minimum number of affordable units proposed in the project. The current regulations have exceptions to address the unique characteristics of the Coastal Zone that coincide with the priorities of the Coastal Commission, primarily coastal access and lower cost visitor accommodations. If passed, the new regulations would result in the Coastal Zone being more attractive for lower income housing developments, with density bonuses inconsistent with the existing development pattern. The regulations would also have to be included in the Local Coastal Program (LCP) of each community.

The very nature of the proposed Assembly Bill (AB) 2560 is inconsistent with long standing State priorities. Housing has always been the lowest priority of the Coastal Commission because without visitor accommodations and visitor serving uses, access to the coastal areas will be severely impacted. As amended, AB 2560 would eliminate existing regulations that exempt LCPs from mandating housing policy and programs. Once housing provisions are required, housing 189
Meeting Date: August 6, 2024 Agenda Item: 11D.

CITY OF SAN CLEMENTE 2
policy will essentially rest with the Coastal Commission who has sole approval authority over a coastal community’s LCP.

Additionally, because each LCP would be required to include housing and be addressed in the mandated Housing Element of the General Plan, the State Department of Housing and Community Development would erode even further any local control of housing in the coastal areas.

As a final note, the requirement to update the LCP is yet another unfunded mandate. The cost to update an LCP can be in the many hundreds of thousands of dollars. No funding has been identified to assist cities in updating their LCPs or Housing Elements to reflect the proposed modifications.

Council Options:
 Direct staff to submit a letter of opposition to AB 2560.  Direct staff to provide additional information.
 Take no action, receive and file the report.

Environmental Review/Analysis:

This is not a project as defined by the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
If the City Council concludes that the provisions of AB 2560 are inconsistent with the land use policies and priorities of the community, staff recommends submitting a letter of opposition. ..end
Attachment:

1. Assembly Bill 2560, as amended

2. Letter of Opposition to Assembly Bill 2060

3. Resolution 24-121
190
Attachment 1

LEGISLATIVE COUNSEL'S DIGEST
AB 2560, as amended, Alvarez. Density Bonus Law: California Coastal Act of 1976.

Existing law, referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housing development within the city or county with a density bonus and other incentives or concessions, as specified, if the developer agrees to construct specified percentages of units for lower income households or very low income households, and meets other requirements. Existing law, the California Coastal Act of 1976 (act), regulates development, as defined, in the coastal zone, as defined, and requires a new development to comply with specified requirements. The Density Bonus Law provides that its provisions do not supersede or in any way alter or lessen the effect or application of the act, and requires that any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled under the Density Bonus Law be permitted in a manner consistent with the act.

This bill would provide that any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled under the Density Bonus Law be permitted notwithstanding the act if the development is not located on any of specified sites. instead provide that, in the coastal zone, the Density Bonus Law does not relieve a project from the requirement to obtain a coastal development permit, as specified. The bill would require any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled to be permitted in a manner that is consistent with the Density Bonus Law and does not result in significant adverse impacts to coastal resources and public coastal access, as specified.

Existing law, the California Coastal Act, requires each local government lying, in whole or in part, within the coastal zone to prepare a local coastal program, as specified. Existing law specifies that a local coastal program is not required to include housing policies and programs.

This bill would repeal that provision and instead require, on or by July 1, 2026, any local government in the coastal zone to submit an amendment to the local government’s local coastal program that harmonizes the Density Bonus Law and the California Coastal Act, as specified. The bill would require this amendment to be processed as de minimis, as specified, if certain conditions are met. By requiring local governments to submit an amendment to its local coastal program, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
191
Digest Key
Vote: majority Appropriation: no Fiscal Committee: noyes Local Program: noyes Bill Text

THE PEOPLE OF THE STATE OF CALIFORNIA DO
ENACT AS FOLLOWS:

SECTION 1.

Section 65915 of the Government Code is amended to read:
65915.
(a) (1) When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall comply with this section. A city, county, or city and county shall adopt an ordinance that specifies how compliance with this section will be implemented. Except as otherwise provided in subdivision (s), failure to adopt an ordinance shall not relieve a city, county, or city and county from complying with this section.
(2) A local government shall not condition the submission, review, or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. This subdivision does not prohibit a local government from requiring an applicant to provide reasonable documentation to establish eligibility for a requested density bonus, as described in subdivision (b), and parking ratios, as described in subdivision (p). (3) In order to provide for the expeditious processing of a density bonus application, the local government shall do all of the following:
(A) Adopt procedures and timelines for processing a density bonus application. (B) Provide a list of all documents and information required to be submitted with the density bonus application in order for the density bonus application to be deemed complete. This list shall be consistent with this chapter. (C) Notify the applicant for a density bonus whether the application is complete in a manner consistent with the timelines specified in Section 65943. (D) (i) If the local government notifies the applicant that the application is deemed complete pursuant to subparagraph (C), provide the applicant with a determination as to the following matters:
(I) The amount of density bonus, calculated pursuant to subdivision (f), for which the applicant is eligible.
192
(II) If the applicant requests a parking ratio pursuant to subdivision (p), the parking ratio for which the applicant is eligible.
(III) If the applicant requests incentives or concessions pursuant to subdivision (d) or waivers or reductions of development standards pursuant to subdivision (e), whether the applicant has provided adequate information for the local government to make a determination as to those incentives, concessions, waivers, or reductions of development standards.
(ii) Any determination required by this subparagraph shall be based on the development project at the time the application is deemed complete. The local government shall adjust the amount of density bonus and parking ratios awarded pursuant to this section based on any changes to the project during the course of development. (b) (1) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (f), and, if requested by the applicant and consistent with the applicable requirements of this section, incentives or concessions, as described in subdivision (d), waivers or reductions of development standards, as described in subdivision (e), and parking ratios, as described in subdivision (p), if an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following:
(A) Ten percent of the total units of a housing development, including a shared housing building development, for rental or sale to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(B) Five percent of the total units of a housing development, including a shared housing building development, for rental or sale to very low income households, as defined in Section 50105 of the Health and Safety Code.
(C) A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. For purposes of this subparagraph, “development” includes a shared housing building development.
(D) Ten percent of the total dwelling units of a housing development are sold to persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (E) Ten percent of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph are subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units.
(F) (i) Twenty percent of the total units for lower income students in a student housing development that meets the following requirements:
(I) All units in the student housing development shall be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the 193
Accrediting Commission for Community and Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the city, county, or city and county that the developer has entered into an operating agreement or master lease with one or more institutions of higher education for the institution or institutions to occupy all units of the student housing development with students from that institution or institutions. An operating agreement or master lease entered into pursuant to this subclause is not violated or breached if, in any subsequent year, there are insufficient students enrolled in an institution of higher education to fill all units in the student housing development. (II) The applicable 20-percent units shall be used for lower income students. (III) The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a single-room occupancy unit type.
(IV) The development shall provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this subclause. (ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this section means one rental bed and its pro rata share of associated common area facilities. The units described in this subparagraph are subject to a recorded affordability restriction of 55 years.
(G) One hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. For purposes of this subparagraph, “development” includes a shared housing building development.
(2) For purposes of calculating the amount of the density bonus pursuant to subdivision (f), an applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), (D), (E), (F), or (G) of paragraph (1).
(c) (1) (A) An applicant shall agree to, and the city, county, or city and county shall ensure, the continued affordability of all very low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.
(B) (i) Except as otherwise provided in clause (ii), rents for the lower income density bonus units shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(ii) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), rents for all units in the development, including both base density and density bonus units, shall be as follows:
194
(I) The rent for at least 20 percent of the units in the development shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code. (II) The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee. (2) (A) An applicant shall agree to ensure, and the city, county, or city and county shall ensure, that a for-sale unit that qualified the applicant for the award of the density bonus meets one of the following conditions:
(i) The unit is initially sold to and occupied by a person or family of very low, low, or moderate income, as required, and it is offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code and is subject to an equity sharing agreement.
(ii) If the unit is not purchased by an income-qualified person or family within 180 days after the issuance of the certificate of occupancy, the unit is purchased by a qualified nonprofit housing corporation that meets all of the following requirements pursuant to a recorded contract that satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code:
(I) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.
(II) The nonprofit corporation is based in California.
(III) All of the board members of the nonprofit corporation have their primary residence in California.
(IV) The primary activity of the nonprofit corporation is the development and preservation of affordable home ownership housing in California that incorporates within their contracts for initial purchase a repurchase option that requires a subsequent purchaser of the property that desires to resell or convey the property to offer the qualified nonprofit corporation the right to repurchase the property prior to selling or conveying that property to any other purchaser pursuant to an equity sharing agreement or affordability restrictions on the sale and conveyance of the property that ensure that the property will be preserved for lower income housing for at least 45 years for owneroccupied housing units and will be sold or resold only to persons or families of very low, low, or moderate income, as defined in Section 50052.5 of the Health and Safety Code. (B) For purposes of this paragraph, a “qualified nonprofit housing corporation” is a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special no-interest loan program.
(C) The local government shall enforce an equity sharing agreement required pursuant to clause (i) or (ii) of subparagraph (A), unless it is in conflict with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source. The following apply to the equity sharing agreement:
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(i) Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’s proportionate share of appreciation. (ii) Except as provided in clause (v), the local government shall recapture any initial subsidy, as defined in clause (iii), and its proportionate share of appreciation, as defined in clause (iv), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership.
(iii) For purposes of this subdivision, the local government’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (iv) For purposes of this subdivision, the local government’s proportionate share of appreciation shall be equal to the ratio of the local government’s initial subsidy to the fair market value of the home at the time of initial sale.
(v) If the unit is purchased or developed by a qualified nonprofit housing corporation pursuant to clause (ii) of subparagraph (A) the local government may enter into a contract with the qualified nonprofit housing corporation under which the qualified nonprofit housing corporation would recapture any initial subsidy and its proportionate share of appreciation if the qualified nonprofit housing corporation is required to use 100 percent of the proceeds to promote home ownership for lower income households as defined by Section 50079.5 of the Health and Safety Code within the jurisdiction of the local government.
(3) (A) An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are located or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entity’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
(i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subdivision (b). (ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household. (B) For the purposes of this paragraph, “replace” shall mean either of the following:
(i) If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data 196
from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. For unoccupied dwelling units described in subparagraph (A) in a development with occupied units, the proposed housing development shall provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (ii) If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, it shall be rebuttably presumed that low-income and very low income renter households occupied these units in the same proportion of low-income and very low income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (C) Notwithstanding subparagraph (B), for any dwelling unit described in subparagraph (A) that is or was, within the five-year period preceding the application, subject to a form of rent or price control through a local government’s valid exercise of its police power and that is or was occupied by persons or families above lower income, the city, county, or city and county may do either of the following:
(i) Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2).
(ii) Require that the units be replaced in compliance with the jurisdiction’s rent or price control ordinance, provided that each unit described in subparagraph (A) is replaced.

Unless otherwise required by the jurisdiction’s rent or price control ordinance, these units shall not be subject to a recorded affordability restriction. (D) For purposes of this paragraph, “equivalent size” means that the replacement units contain at least the same total number of bedrooms as the units being replaced. 197
(E) Subparagraph (A) does not apply to an applicant seeking a density bonus for a proposed housing development if the applicant’s application was submitted to, or processed by, a city, county, or city and county before January 1, 2015. (d) (1) An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of any of the following:
(A) The concession or incentive does not result in identifiable and actual cost reductions, consistent with subdivision (k), to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c).
(B) The concession or incentive would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low-income and moderateincome households. (C) The concession or incentive would be contrary to state or federal law. (2) The applicant shall receive the following number of incentives or concessions:
(A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in a development in which the units are for sale.
(B) Two incentives or concessions for projects that include at least 17 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a development in which the units are for sale.
(C) Three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a development in which the units are for sale.
(D) Five incentives or concessions for a project meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b). If the project is located within one-half mile of a major transit stop or is located in a very low vehicle travel area in a designated county, the applicant shall also receive a height increase of up to three additional stories, or 33 feet.
(E) One incentive or concession for projects that include at least 20 percent of the total units for lower income students in a student housing development. (F) Four incentives or concessions for projects that include at least 16 percent of the units for very low income households or at least 45 percent for persons and families of moderate income in a development in which the units are for sale. 198
(3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. This subdivision shall not be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. This subdivision shall not be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying out this section that shall include legislative body approval of the means of compliance with this section.
(4) The city, county, or city and county shall bear the burden of proof for the denial of a requested concession or incentive.
(e) (1) In no case may a city, county, or city and county apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. Subject to paragraph (3), an applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted under this section, and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. This subdivision shall not be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. This subdivision shall not be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law.
(2) A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). (3) A housing development that receives a waiver from any maximum controls on density pursuant to clause (ii) of subparagraph (D) of paragraph (3) of subdivision (f) shall only be eligible for a waiver or reduction of development standards as provided in subparagraph (D) of paragraph (2) of subdivision (d) and clause (ii) of subparagraph (D) of paragraph (3) of subdivision (f), unless the city, county, or city and county agrees to additional waivers or reductions of development standards. (f) For the purposes of this chapter, “density bonus” means a density increase over the otherwise maximum allowable gross residential density as of the date of application by the applicant to the city, county, or city and county, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. 199
The amount of density increase to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b).
(1) For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:

Percentage Low-Income Units Percentage Density Bonus
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29
17 30.5
18 32
19 33.5
20 35
21 38.75
22 42.5
23 46.25
24 50
(2) For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:

Percentage Very Low Income Units Percentage Density Bonus 5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
200
11 35
12 38.75
13 42.5
14 46.25
15 50
(3) (A) For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of senior housing units.
(B) For housing developments meeting the criteria of subparagraph (E) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of the type of units giving rise to a density bonus under that subparagraph. (C) For housing developments meeting the criteria of subparagraph (F) of paragraph (1) of subdivision (b), the density bonus shall be 35 percent of the student housing units. (D) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), the following shall apply:
(i) Except as otherwise provided in clauses (ii) and (iii), the density bonus shall be 80 percent of the number of units for lower income households. (ii) If the housing development is located within one-half mile of a major transit stop, the city, county, or city and county shall not impose any maximum controls on density. (iii) If the housing development is located in a very low vehicle travel area within a designated county, the city, county, or city and county shall not impose any maximum controls on density.
(4) For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:

Percentage Moderate-Income Units Percentage Density Bonus 10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
201
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
41 38.75
42 42.5
43 46.25
44 50
(5) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval.
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(g) (1) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to a city, county, or city and county in accordance with this subdivision, the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density for the entire development, as follows:

Percentage Very Low Income Percentage Density Bonus
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
(2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number.

Nothing in this subdivision shall be construed to enlarge or diminish the authority of a 203
city, county, or city and county to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met:
(A) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (B) The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development.
(C) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by adequate public facilities and infrastructure. (D) The transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government before the time of transfer.
(E) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of the transfer. (F) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer.
(G) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development.
(H) A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application.
(h) (1) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a childcare facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following:
(A) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the childcare facility. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facility. (2) The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur:
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(A) The childcare facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to subdivision (c).
(B) Of the children who attend the childcare facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income pursuant to subdivision (b).
(3) Notwithstanding any requirement of this subdivision, a city, county, or city and county shall not be required to provide a density bonus or concession for a childcare facility if it finds, based upon substantial evidence, that the community has adequate childcare facilities.
(4) “Childcare facility,” as used in this section, means a child daycare facility other than a family daycare home, including, but not limited to, infant centers, preschools, extended daycare facilities, and schoolage childcare centers.
(i) “Housing development,” as used in this section, means a development project for five or more residential units, including mixed-use developments. For the purposes of this section, “housing development” also includes a subdivision or common interest development, as defined in Section 4100 of the Civil Code, approved by a city, county, or city and county and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
(j) (1) The granting of a concession or incentive shall not require or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, study, or other discretionary approval. For purposes of this subdivision, “study” does not include reasonable documentation to establish eligibility for the concession or incentive or to demonstrate that the incentive or concession meets the definition set forth in subdivision (k). This provision is declaratory of existing law. (2) Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not require or be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards.
(k) For the purposes of this chapter, concession or incentive means any of the following:
(1) A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part

2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in 205
identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c).
(2) Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.
(3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (l) Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements. (m)Any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled under this section shall be permitted notwithstanding the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code) if the development is not located on a site that is any of the following:
(1)An area of the coastal zone subject to paragraph (1), (2), or (3) of subdivision (a) of Section 30603 of the Public Resources Code.
(2)An area of the coastal zone that is not subject to a certified local coastal program. (3)An area of the coastal zone that is vulnerable to five feet of sea level rise, as determined by the National Oceanic and Atmospheric Administration, the Ocean Protection Council, the United States Geological Survey, the University of California, or a local government’s coastal hazards vulnerability assessment. (4)In a parcel within the coastal zone that is not zoned for multifamily housing. (5)In a parcel in the coastal zone and located on either of the following:
(A)On, or within a 100-foot radius of, a wetland, as defined in Section 30121 of the Public Resources Code.
(B)On prime agricultural land, as defined in Sections 30113 and 30241 of the Public Resources Code.
(m) In the coastal zone, this section does not relieve a project relying on the provisions of this section from the requirement to obtain a coastal development permit as required by Section 30600 of the Public Resources Code. Any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which the applicant is entitled under this section shall be permitted in a manner that is consistent with this section and does not result in significant adverse impacts to coastal 206
resources and public coastal access pursuant to Chapter 3 (commencing with Section 30200) of Division 20 of the Public Resources Code.
(n) If permitted by local ordinance, nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section. (o) For purposes of this section, the following definitions shall apply:
(1) “Designated county” includes the Counties of Alameda, Contra Costa, Los Angeles, Marin, Napa, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Mateo, Santa Barbara, Santa Clara, Solano, Sonoma, and Ventura, and the City and County of San Francisco.
(2) “Development standard” includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite openspace requirement, a minimum lot area per unit requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation that is adopted by the local government or that is enacted by the local government’s electorate exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the local government. (3) “Located within one-half mile of a major transit stop” means that any point on a proposed development, for which an applicant seeks a density bonus, other incentives or concessions, waivers or reductions of development standards, or a vehicular parking ratio pursuant to this section, is within one-half mile of any point on the property on which a major transit stop is located, including any parking lot owned by the transit authority or other local agency operating the major transit stop.
(4) “Lower income student” means a student who has a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in paragraph (1) of subdivision (k) of Section 69432.7 of the Education Code. The eligibility of a student to occupy a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolled or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver from the college or university, the California Student Aid Commission, or the federal government.
(5) “Major transit stop” has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(6) “Maximum allowable residential density” or “base density” means the greatest number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, means the greatest number of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to the project. Density shall be determined using dwelling units per acre. However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the local agency shall calculate the number of units by:
207
(A) Estimating the realistic development capacity of the site based on the objective development standards applicable to the project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories, building setbacks and stepbacks, public and private open-space requirements, minimum percentage or square footage of any nonresidential component, and parking requirements, unless not required for the base project. Parking requirements shall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide a base density study and the local agency shall accept it, provided that it includes all applicable objective development standards.
(B) Maintaining the same average unit size and other project details relevant to the base density study, excepting those that may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study. (7) (A) (i) “Shared housing building” means a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. (ii) A “shared housing building” may include other dwelling units that are not shared housing units, provided that those dwelling units do not occupy more than 25 percent of the floor area of the shared housing building. A shared housing building may include 100 percent shared housing units.
(B) “Shared housing unit” means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that meets the “minimum room area” specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations), and complies with the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. (8) (A) “Total units” or “total dwelling units” means a calculation of the number of units that:
(i) Excludes a unit added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
(ii) Includes a unit designated to satisfy an inclusionary zoning requirement of a city, county, or city and county.
(B) For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, “unit” means one shared housing unit and its pro rata share of associated common area facilities.
(9) “Very low vehicle travel area” means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, “area” may include a travel analysis zone, hexagon, or grid. For the purposes of determining 208
“regional vehicle miles traveled per capita” pursuant to this paragraph, a “region” is the entirety of incorporated and unincorporated areas governed by a multicounty or singlecounty metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization.
(p) (1) Except as provided in paragraphs (2), (3), and (4), upon the request of the developer, a city, county, or city and county shall not require a vehicular parking ratio, inclusive of parking for persons with a disability and guests, of a development meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios:
(A) Zero to one bedroom: one onsite parking space.
(B) Two to three bedrooms: one and one-half onsite parking spaces. (C) Four and more bedrooms: two and one-half parking spaces. (2) (A) Notwithstanding paragraph (1), if a development includes at least 20 percent lowincome units for housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b) or at least 11 percent very low income units for housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per unit. Notwithstanding paragraph (1), if a development includes at least 40 percent moderate-income units for housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and the residents of the development have unobstructed access to the major transit stop from the development then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per bedroom. (B) For purposes of this subdivision, “unobstructed access to the major transit stop” means a resident is able to access the major transit stop without encountering natural or constructed impediments. For purposes of this subparagraph, “natural or constructed impediments” includes, but is not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit.
(3) Notwithstanding paragraph (1), if a development meets the criteria of subparagraph (G) of paragraph (1) of subdivision (b), then, upon the request of the developer, a city, county, or city and county shall not impose vehicular parking standards if the development meets any of the following criteria:
(A) The development is located within one-half mile of a major transit stop and there is unobstructed access to the major transit stop from the development. (B) The development is a for-rent housing development for individuals who are 55 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. 209
(C) The development is either a special needs housing development, as defined in Section 51312 of the Health and Safety Code, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code. A development that is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (4) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide onsite parking through tandem parking or uncovered parking, but not through onstreet parking. (5) This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at the request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this subdivision pursuant to subdivision (d).
(6) This subdivision does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for development projects of any type in any location. (7) Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or an independent consultant has conducted an areawide or jurisdictionwide parking study in the last seven years, then the city, county, or city and county may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low-income and very low income individuals, including seniors and special needs individuals. The city, county, or city and county shall pay the costs of any new study. The city, county, or city and county shall make findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio.
(8) A request pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). (q) Each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number.

The Legislature finds and declares that this provision is declaratory of existing law. (r) This chapter shall be interpreted liberally in favor of producing the maximum number of total housing units.
(s) Notwithstanding any other law, if a city, including a charter city, county, or city and county has adopted an ordinance or a housing program, or both an ordinance and a housing program, that incentivizes the development of affordable housing that allows for density bonuses that exceed the density bonuses required by the version of this section effective through December 31, 2020, that city, county, or city and county is not required to amend or otherwise update its ordinance or corresponding affordable housing incentive program to comply with the amendments made to this section by the act adding this subdivision, and is exempt from complying with the incentive and concession calculation amendments made to this section by the act adding this subdivision as set forth in 210
subdivision (d), particularly subparagraphs (B) and (C) of paragraph (2) of that subdivision, and the amendments made to the density tables under subdivision (f). (t) When an applicant proposes to construct a housing development that conforms to the requirements of subparagraph (A) or (B) of paragraph (1) of subdivision (b) that is a shared housing building, the city, county, or city and county shall not require any minimum unit size requirements or minimum bedroom requirements that are in conflict with paragraph (7) of subdivision (o).
(u) (1) The Legislature finds and declares that the intent behind the Density Bonus Law is to allow public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning ordinance in exchange for affordable units. It further reaffirms that the intent is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional public subsidy. (2) It is therefore the intent of the Legislature to make modifications to the Density Bonus Law by the act adding this subdivision to further incentivize the construction of very low, low-, and moderate-income housing units. It is further the intent of the Legislature in making these modifications to the Density Bonus Law to ensure that any additional benefits conferred upon a developer are balanced with the receipt of a public benefit in the form of adequate levels of affordable housing. The Legislature further intends that these modifications will ensure that the Density Bonus Law creates incentives for the construction of more housing across all areas of the state. (v) (1) Provided that the resulting housing development would not restrict more than 50 percent of the total units to moderate-income, lower income, or very low income households, a city, county, or city and county shall grant an additional density bonus calculated pursuant to paragraph (2) when an applicant proposes to construct a housing development that conforms to the requirements of paragraph (1) of subdivision (b), agrees to include additional rental or for-sale units affordable to very low income households or moderate-income households, and meets any of the following requirements:
(A) The housing development conforms to the requirements of subparagraph (A) of paragraph (1) of subdivision (b) and provides 24 percent of the total units to lower income households.
(B) The housing development conforms to the requirements of subparagraph (B) of paragraph (1) of subdivision (b) and provides 15 percent of the total units to very low income households.
(C) The housing development conforms to the requirements of subparagraph (D) of paragraph (1) of subdivision (b) and provides 44 percent of the total units to moderateincome households. (2) A city, county, or city and county shall grant an additional density bonus for a housing development that meets the requirements of paragraph (1), calculated as follows:

Percentage Very Low Income Units Percentage Density Bonus 211
5 20
6 23.75
7 27.5
8 31.25
9 35
10 38.75
Percentage Moderate-Income Units Percentage Density Bonus 5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
12 38.75
13 42.5
14 46.25
15 50
(3) The increase required by paragraphs (1) and (2) shall be in addition to any increase in density granted by subdivision (b).
(4) The additional density bonus required under this subdivision shall be calculated using the number of units excluding any density bonus awarded by this section.

SEC. 2.

Section 30500.1 of the Public Resources Code is repealed. 30500.1.

No local coastal program shall be required to include housing policies and programs.

SEC. 3.

Section 30500.1 is added to the Public Resources Code, to read:
30500.1.
212
(a) It is the intent of the Legislature that this division and the Density Bonus Law in Section 65915 of the Government Code be harmonized so as to achieve the goal of increasing the supply of housing in the coastal zone while also protecting coastal resources and public coastal access.
(b) On or by July 1, 2026, any local government in the coastal zone that has not done so already shall submit to the commission for certification an amendment to the local government’s local coastal program that harmonizes the applicable provisions of the density bonus law and this division pursuant to subdivision (m) of Section 65915 of the Government Code .
(c) If a local government submits to the commission for certification an amendment to the local government’s local coastal program that would add a provision stating that any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which the applicant is entitled under this section shall be permitted in a manner that is consistent with the policies of the local coastal program to the greatest extent feasible and does not result in significant adverse impacts to coastal resources and public coastal access, and would make no other changes to the local coastal program, the amendment shall be processed as de minimis pursuant to subdivision (d) of Section 30514.

SEC. 4.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
213
ATTACHMENT 2
City Hall ● 910 Calle Negocio, San Clemente CA 92673 ● (949) 361-8200 ● www.san-clemente.org

OFFICE OF THE MAYOR

AND CITY COUNCIL
Victor Cabral
Mayor
Mark Enmeier
Mayor Pro Tem
Chris Duncan
Steve Knoblock
Rick Loeffler
910 Calle Negocio
San Clemente, CA 92673
Phone: (949) 361-8200
“The Spanish Village
by the Sea”
August 6, 2024
The Honorable Juan Carrillo
Chair, Assembly Local Government Committee
1020 N St, Room 157
Sacramento, CA 95814
RE: AB 2560 (Alvarez) Density Bonus Law: California Coastal Act of 1976 Notice of Opposition
Dear Chair Carrillo,
The City of San Clemente regretfully must oppose measure AB 2560 (Alvarez) because it is inconsistent with long established priorities in the Coastal Zone previously supported and approved consistent with the provisions of the Coastal Act. In fact, passage of the bill would undermine the very nature of the Coastal Act intended to provide access through visitor serving activities and accommodations, by increasing the amount of housing and private residences in areas traditionally preserved for all persons hoping to enjoy the coastal resources of our state. The proposed density bonuses, elimination of parking requirements, developer concessions and other provisions will further impact the ability of communities to provide access to beaches and other coastal amenities.

For decades, cities have worked with HCD to draft housing plans that accommodate housing in communities. However, consistent with the priorities of the Coastal Act, coastal cities have established infrastructure and land use patterns intended to promote visitor accommodations and amenities. A modification of the regulations will have significant impacts on coastal access, parking, visitor accommodations, and user experiences that should be available to all residents and visitors, not just those lucky enough to secure housing and parking in the Coastal Zone.

The requirement to include coastal housing provisions in a Local Coastal Program and Housing Element is a departure from almost every tenant of the Coastal Act. This unfunded mandate will not only be burdensome, but place the local land use decision making in the hands of two State agencies with little knowledge of local priorities with a one size fits all approach that is unlikely to produce the intended result. Developers will benefit from density bonuses requiring only a minimal amount of affordable housing, while parking and other amenities will be reduced for visitors.

CELEBRATING 90 YEARS OF INCORPORATION
214

_______________________________
Kathleen Ward
Mayor, City of San Clemente
The City of San Clemente believes that AB 2560 is counterproductive. As coastal communities grapple with the impacts of climate change and sea level rise, trying to accommodate more housing and density in coastal areas is simply another obstacle in this effort.

If you have any questions, do not hesitate to contact me at [email protected] or by calling (949) 361-8200.

Sincerely,
Victor Cabral
Mayor
City of San Clemente
Cc: The Honorable David A. Alvarez (via e-mail)
Members, Assembly Committee on Local Government (via e-mail) Linda Rios, Senior Consultant, Assembly Committee on Local Government (via e-mail) Senator Janet Nguyen (via e-mail)
Assemblywoman Laurie Davies (via e-mail)
League of California Cities (via e-mail)
215
ATTACHMENT 3
RESOLUTION NO. 24-121

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

MAYOR TO EXECUTE A LETTER IN OPPOSITION TO
ASSEMBLY BILL 2560 (ALVAREZ) AND CAUSE THE

DELIVERY OF SAID LETTER TO THE CHAIR OF THE
CALIFORNIA STATE ASSEMBLY’S LOCAL GOVERNMENT

COMMITTEE
WHEREAS, Assembly Bill (AB) 2560, as proposed, is inconsistent with the longstanding provisions of the California Coastal Act and the land use regulations of the City of San Clemente; and
WHEREAS, AB 2560, as proposed, will transfer local housing authority to the California Coastal Commission by requiring each Local Coastal Program to include provisions for housing, density bonuses and other provisions that must be approved by the California Coastal Commission; and
WHEREAS, AB 2560, as proposed, will transfer further local housing authority to the California Department of Housing and Community Development by requiring each City to make accommodations for housing in coastal areas in future General Plan Housing Elements; and
WHEREAS, AB 2560, because of the inconsistencies between housing programs and the provisions of the California Coastal Act promoting visitor accommodations, activities, and coastal access, the Coastal Commission was relieved of its housing authority within the first five years of the Coastal Act being codified in 1976; and WHEREAS, AB 2560, as proposed, will prevent cities from achieving housing goals by having dueling direction from two state agencies for how to plan and develop housing along the coast; and
WHEREAS, AB 2560, as proposed, requires all coastal cities to update their Local Coastal Programs – an unfunded state mandate costing millions of dollars – in a truncated year and a half when most programs take many years to develop.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Clemente that:

Section 1. The City Council of the City of San Clemente opposes AB 2560 based on the findings of the recitals above and on the following grounds:
216
Resolution No. 24-121 Page No. 2

1. It applies a one size fits all approach to the complexities of the California coastline with decisions being removed from local elected officials who know the needs of their communities far better than State agencies.

2. It would hinder the City’s ability to implement the provisions of the California Coastal Act to provide access to all, and visitor accommodations and amenities.

Section 2. The City Council authorizes the Mayor to execute and cause the delivery a the letter in opposition to AB 2560 in a form substantially similar to that presented to the City Council on August 6, 2024.

Section 3. 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 ____________________, 2024.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
217
Resolution No. 24-121 Page No. 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-121 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
218
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 11E.

Submitted By: City Manager
Prepared By: Andy Hall, City Manager
Subject:
..titl e
CONSIDERATION TO SUBMIT A LETTER OF OPPOSITION FOR ASSEMBLY BILL 2557 I
..bodyMPACTING THE COSTS FOR PROVIDING CONTRACT SERVICES TO MUNICIPALITIES Fiscal Impact:

If passed, the cost to provide municipal services could increase significantly due to added restrictions placed on contractors.

Summary:

There are more than 4,800 local agencies in California that depend on the professional expertise of trusted local businesses in the community to deliver core services. These services range from public safety such as ambulance service, to landscape maintenance such as tree trimming.

Often, these services can be provided in a more fiscally efficient manner by specialized companies who often hire local residents. This bill would not only increase costs for local contractors by adding burdensome regulations on reporting, salaries and other technical issues, but result in fewer companies being interested in public bidding due to the open reporting of business operations that places these companies at a competitive disadvantage in their field of expertise.

Background:

Assembly Bill (AB) 2557 is an unnecessary legislative effort. Proponents of the bill claim that the bill would reduce instances of public entities hiring less qualified staff, paying lower wages and lowering standards for working conditions. In the City of San Clemente, this simply is not true and, in fact, it is just the opposite.

A majority, if not all, of the contracts let by the City of San Clemente are to accomplish tasks for which existing City employees do not possess the skill sets, expertise or experience to conduct.

Additional considerations include economies of scale such as the purchase and maintenance of equipment, or only an occasional need for the service.

SEIU, a Union that represents many municipal employees, claims that “Public sector jobs were once considered the backbone of the middle class, but decades of low funding and government austerity measures have led to the decline of the stable union jobs that once sustained communities. In efforts to cut costs, governments contract out public work to the lowest bidder and an array of unaccountable service providers. Public services, including substance abuse treatment, foster youth care, and health services, are increasingly contracted out to private entities that do not have to meet the same workforce and performance standards that public agencies do.” Once again, a one size fits all approach in Sacramento fails to recognize that every 219
Meeting Date: August 6, 2024 Agenda Item: 11E.

CITY OF SAN CLEMENTE 2
community is different. In San Clemente, the City has no capacity or a demonstrated need to provide substance abuse treatment, foster youth care or health services. Due to the economy of scale, these services are provided by nonprofit organizations or at the County level in our area.

Traditional public partners such as the United Way also oppose the bill and have stated that nonprofit organizations “have historically filled service gaps because we are uniquely qualified to meet specific community needs. We are troubled by any characterization that such partnership negatively impacts service provision and do not think that reflects reality. What’s more, there are major shortages in various professions that are making it very hard for employers of all types to hire qualified people needed to provide critical services.” “AB 2557 has the potential to dramatically impede nonprofits' ability to pursue or renew partnered efforts and to reduce the flow of public dollars to already under-resourced communities.” Again, this is simply an unneeded legislative effort. Cities are already required to follow rigorous contacting regulations, pay prevailing wages, and ensure that tax payer funds are being directed to the lowest qualified bidder.

Council Options:

The City Council may:
 Direct staff to submit a letter of opposition to AB 2557.  Direct staff to provide additional information.
 Take no action, receive and file the report.

Environmental Review/Analysis:

This is not a project as defined by the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
If the City Council concludes that the provisions of AB 2557 are inconsistent with the responsible expenditure of tax payer dollars, staff recommends submitting a letter of opposition. ..end
Attachments:

1. Assembly Bill 2557, as amended

2. Letter of Opposition

3. Resolution 24-122
220
AB 2557 Text Attachment 1

THE PEOPLE OF THE STATE OF CALIFORNIA DO
ENACT AS FOLLOWS:

SECTION 1.

The Legislature finds and declares all of the following:
(a) Local governments are increasingly relying on private contractors to provide public services customarily performed by the civil service workforce. (b) The delivery of quality public services and goods requires a capable and efficient workforce who receives fair compensation.
(c) Transparent contracting processes allow for thorough public scrutiny to ensure that quality services and goods are delivered to California communities. (d) There is a statewide interest in ensuring that public funds are used effectively and ethically and that the replacement of bargaining unit work with private contractors does not undermine public employee relations.

SEC. 2.

Section 31000.01 is added to the Government Code, immediately following Section 31000, to read:
31000.01.
(a) As of July 1, 2025, each board of supervisors that solicits for and enters into a contract under Section 31000 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b) As of July 1, 2026, each contract with the board of supervisors pursuant to Section 31000 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1) The objectives, deliverables, and goals of the contract. (2) A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3) The number of each contractor’s and subcontractor’s employees associated with the delivery of the contracted services, organized by job category, and the number of each contractor’s and subcontractor’s independent contractors associated with delivery of the contracted services organized by job category.
221
AB 2557 Text Attachment 1
(4) (A) The names of any subcontractors providing services under the contract. (B) The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification. (c) (1) Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. (2) A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications. (3) This subdivision shall not apply in the event of an emergency. (d) At least 30 days before the modification or renewal of a contract specified in subdivision (c), the board of supervisors, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions. (f) This section shall not apply to any contracts that meet both of the following criteria:
(1) A contract for an amount less than one hundred thousand dollars ($100,000). (2) A contract to provide services for work not usually performed by public employees. (f)
(g) For purposes of this section, the following definitions apply:
(1) “Deliverables” means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2) “Emergency” means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3) “Total compensation” means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4) “Work not usually performed by public employees” means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity. (g)
222
AB 2557 Text Attachment 1
(h) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (h)
(i) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties. (i)
(j) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 3.

Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4, to read:
31000.4.5.
(a) As of July 1, 2025, each board of supervisors that solicits for and enters into a contract under Section 31000.4 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b) As of July 1, 2026, each contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 for functions that are currently, or were in the prior five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1) The objectives, deliverables, and goals of the contract. (2) A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3) The number of each contractor’s and subcontractor’s employees associated with the delivery of the contracted services, organized by job category, and the number of each contractor’s and subcontractor’s independent contractors associated with the delivery of the contracted services, organized by job category.
(4) (A) The names of any subcontractors providing services under the contract. (B) The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification. 223
AB 2557 Text Attachment 1
(c) (1) Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. (2) A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications. (3) This subdivision shall not apply in the event of an emergency. (d) At least 30 days before the modification or renewal of a contract specified in subdivision (c), the board of supervisors, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions. (f) This section shall not apply to any contracts that meet both of the following criteria:
(1) A contract for an amount less than one hundred thousand dollars ($100,000). (2) A contract to provide services for work not usually performed by public employees. (f)
(g) For purposes of this section, the following definitions apply:
(1) “Deliverables” means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2) “Emergency” means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3) “Total compensation” means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4) “Work not usually performed by public employees” means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity. (g)
(h) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (h)
224
AB 2557 Text Attachment 1
(i) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties. (i)
(j) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 4.

Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:
37103.1.
(a) As of July 1, 2025, each legislative body that solicits for and enters into a contract under Section 37103 for functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b) As of July 1, 2026, each contract with the legislative body pursuant to Section 37103 for functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1) The objectives, deliverables, and goals of the contract. (2) A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3) The number of each contractor’s and subcontractor’s employees associated with the delivery of the contracted services, organized by job category, and the number of each contractor’s and subcontractor’s independent contractors associated with the delivery of the contracted services, organized by job category.
(4) (A) The names of any subcontractors providing services under the contract. (B) The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification. (c) (1) Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. 225
AB 2557 Text Attachment 1
(2) A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications. (3) This subdivision shall not apply in the event of an emergency. (d) At least 30 days before the modification or renewal of a contract specified in subdivision (c), the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions. (f) This section shall not apply to any contracts that meet both of the following criteria:
(1) A contract for an amount less than one hundred thousand dollars ($100,000). (2) A contract to provide services for work not usually performed by public employees. (f)
(g) For purposes of this section, the following definitions apply:
(1) “Deliverables” means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2) “Emergency” means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3) “Total compensation” means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4) “Work not usually performed by public employees” means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity. (g)
(h) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (h)
(i) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
226
AB 2557 Text Attachment 1
(i)
(j) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 5.

Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:
53060.01.
(a) As of July 1, 2025, each legislative body that solicits for and enters into a contract under Section 53060 for functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website. (b) As of July 1, 2026, each contract with a legislative body pursuant to Section 53060 for functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1) The objectives, deliverables, and goals of the contract. (2) A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3) The number of each contractor’s and subcontractor’s employees associated with delivery of the contracted services, organized by job category, and the number of each contractor’s and subcontractor’s independent contractors associated with delivery of the contracted services, organized by job category.
(4) (A) The names of any subcontractors providing services under the contract. (B) The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification. (c) (1) Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2) A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications. (3) This subdivision shall not apply in the event of an emergency. 227
AB 2557 Text Attachment 1
(d) At least 30 days before the modification or renewal of a contract specified in subdivision (c), the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions. (f) This section shall not apply to any contracts that meet both of the following criteria:
(1) A contract for an amount less than one hundred thousand dollars ($100,000). (2) A contract to provide services for work not usually performed by public employees. (f)
(g) For purposes of this section, the following definitions apply:
(1) “Deliverables” means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2) “Emergency” means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3) “Total compensation” means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4) “Work not usually performed by public employees” means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity. (g)
(h) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (h)
(i) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(i)
228
AB 2557 Text Attachment 1
(j) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 6.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
229
ATTACHMENT 2
City Hall ● 910 Calle Negocio, San Clemente CA 92673 ● (949) 361-8200 ● www.san-clemente.org

OFFICE OF THE MAYOR

AND CITY COUNCIL
Victor Cabral
Mayor
Mark Enmeier
Mayor Pro Tem
Chris Duncan
Steve Knoblock
Rick Loeffler
910 Calle Negocio
San Clemente, CA 92673
Phone: (949) 361-8200
“The Spanish Village
by the Sea”
August 6, 2024
The Honorable Juan Carrillo
Chair, Assembly Local Government Committee
1020 N St, Room 157
Sacramento, CA 95814
RE: AB 2557 (Ortega) Contracts for Special Services and Temporary Help Notice of Opposition
Dear Chair Carrillo,
The City of San Clemente regretfully must oppose measure AB 2557 (Ortega).

Municipalities in California must follow comprehensive requirements prior to contracting with any business providing municipal services in the community.

Prevailing wage must be included as well as a demonstrated ability to complete the assigned work in a professional manner.

Given the current regulations placed on municipal contracts, AB 2557 appears to be an unnecessary legislative action intended to increase the number of municipal employees. However, in a small community like San Clemente, many tasks do not require full time employment or lack the economies of scale to be completed in a manner that is the most fiscally responsible use of tax payer dollars.

If you have any questions, do not hesitate to contact me at cabralv@sanclemente.org or by calling (949) 361-8200.

Sincerely,
Victor Cabral
Mayor
City of San Clemente
Cc: Members, Assembly Committee on Local Government (via e-mail) Linda Rios, Senior Consultant, Assembly Committee on Local Government (via e-mail)
Senator Janet Nguyen (via e-mail)
Assemblywoman Laurie Davies (via e-mail)
League of California Cities (via e-mail)
CELEBRATING 90 YEARS OF INCORPORATION
230
ATTACHMENT 3
RESOLUTION NO. 24-122

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

MAYOR TO EXECUTE A LETTER IN OPPOSITION TO
ASSEMBLY BILL 2557 (ORTEGA) AND CAUSE THE

DELIVERY OF SAID LETTER TO THE CHAIR OF THE
CALIFORNIA STATE ASSEMBLY’S LOCAL GOVERNMENT

COMMITTEE
WHEREAS, Assembly Bill (AB) 2557, as proposed, is an unnecessary legislative effort that places more governmental burden on legitimate community partners and contractors raising the cost of services provided to residents; and WHEREAS, AB 2557, as proposed, will expose local businesses and their employees to unwarranted public scrutiny and place them at a competitive disadvantage to companies choosing not to provide services to local agencies.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Clemente that:

Section 1. The City Council of the City of San Clemente opposes AB 2557 based on the findings of the recitals above and on the following grounds:

1. It applies a one size fits all approach to the variety of California cities that vary greatly in the capacity and need to provide municipal services to residents.

2. It would increase costs and reduce economies of scale in exploring strategies to provide necessary services in the most efficient manner possible.

Section 2. The City Council authorizes the Mayor to execute and cause the delivery of a letter in opposition to AB 2557 in a form substantially similar to that presented to the City Council on August 6, 2024.

Section 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
231
Resolution No. 24-122 Page No. 2
PASSED AND ADOPTED this _____ day of ____________________, 2024.

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

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-122 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
232
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 11F.

Submitted By: City Manager
Prepared By: Courtney Farrell, Executive Analyst
Subject:
..titl e
CONSIDERATION OF MAYOR CABRAL’S TRAVEL EXPENSES ..body
Fiscal Impact:

Up to $550 related to the Mayor’s attendance at Senator Nguyen’s California Surf Day.

Summary:

In accordance with City Council Policy 1201-8, Attachment 1 provides anticipated expenses related to travel and training for City Councilmembers.

Background:

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

Travel and training expenses will be related to Mayor Cabral attending California Surf Day in Sacramento, CA. Mayors of coastal cities have been invited to the Capital to receive a California Surf Day resolution.

Council Options:
 Authorize travel and training expenses detailed in Attachment 1.  Request additional information.
 Deny the request for travel and training.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Authorize an expenditure of up to $550 related to Mayor’s attendance at Senator Nguyen’s California Surf Day event.
..end
233
Meeting Date: August 6, 2024 Agenda Item: 11F.

CITY OF SAN CLEMENTE 2
Attachment:

1. Itemized travel for Mayor Cabral
Notification:

None.
234
ATTACHMENT 1
Itemized Travel and Training Expenses
Councilmember Victor Cabral
Training/Conference California Surf Day
Date(s) August 12, 2024
Location Sacramento, CA
Registration Fees $0
Flight/Travel Expense Estimated $400
Hotel Expense $0
Ground Transportation Estimated $100
Incidentals Estimated $50
Total Not to Exceed $550
235
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 11G.

Submitted By: Public Works
Prepared By: Masako Hennequin, Associate Civil Engineer Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO ONYX PAVING COMPANY, INC. FOR FY 2025 ARTERIAL AND LOCAL STREET IMPROVEMENT PROGRAM, CIP PROJECT NOS. 15317 AND 15322, IN AN AMOUNT NOT TO EXCEED $1,639,000, AUTHORIZING THE CITY MANAGER TO EXECUTE THE

CONSTRUCTION CONTRACT, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM ..body THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Fiscal Impact:

The estimated total construction cost of $1,884,850 is within the total approved budget amount of $1,887,000 from a combined fund of $750,000 from Account No. 012-861-45300-000-15317 Arterial Street Improvement Program, $750,000 from Account No. 012-861-45300-000-15322 Local Street Improvement Program, $87,000 from Account No. 052-466-43470-000-21403 Reservoir Pavement Rehabilitation, and $300,000 from Account No. 042-848-45300-000-12305 Alley Pavement Rehabilitation.

Summary:

Before the City Council is the award of a construction contract to ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, and approval of a 10% project contingency, for the FY 2025 Arterial and Local Street Improvement Program.

Background:

The FY 2025 Arterial and Local Street Improvement Program project includes asphalt pavement and concrete repair work on various arterial and local streets, alleys, and reservoir access roads in need of repairs. The pavement work will consist of removing and replacing deteriorated pavement sections at numerous locations throughout the City as listed in Attachment 2.

Existing Cross Gutter Existing Asphalt Pavement
236
Meeting Date: August 6, 2024 Agenda Item: 11G.

CITY OF SAN CLEMENTE 2
On June 20, 2024, staff reached out to local contractors, published a notice inviting bids for this project in the SC Times, and published a bid solicitation on PlanetBids. Bids were opened on July 11, 2024, and the results are presented in the table below. Bids ranged from $1,639,000 to $4,201,263. There were no bidders from any businesses based in San Clemente. The lowest responsive and responsible bidder is ONYX Paving Company, Inc. of Anaheim, California with a total bid amount of $1,639,000.

Table 1. Bid Summary
Company Name Company Location Amount
ONYX Paving Company, Inc. Anaheim, CA $1,639,000.00
Diamond Construction La Habra, CA $1,757,831.00
LC Paving & Sealing Escondido, CA $1,850,286.50
PALP dba Excel Long Beach, CA $1,939,600.00
All American Asphalt Corona, CA $2,302,203.20
Hardy & Harper, Inc. Lake Forest, CA $4,201,263.00
Based on the lowest bid, the total estimated project construction cost is $1,884,850 as summarized below:

Table 2. Cost Summary
Construction Management and Inspection $ 81,950
Construction $1,639,000
Contingency (10%) $ 163,900
Total Estimated Construction Cost $1,884,850
As required by state law and City policy, the ONYX Paving Company will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 3). Project plans and specifications are on file in the City Clerk’s office.

Council Options:
 Adopt Resolution No. 24-123 (Attachment 1), awarding the FY 2025 Arterial and Local Street Improvement Program contract to ONYX Paving Company, Inc., authorizing the City Manager to execute a construction contract an amount not to exceed $1,639,000, approving a 10% project contingency of $163,900, and finding the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.  Modify and adopt Resolution No. 24-123.
 Continue the item and direct staff to provide additional information.  Do not award the contract or construct the sidewalk improvements. 237
Meeting Date: August 6, 2024 Agenda Item: 11G.

CITY OF SAN CLEMENTE 3
Environmental Review/Analysis:

This project is exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of repairs to existing City facilities, involves negligible or no expansion of existing or former use and there is no possibility of a direct or reasonably foreseeable indirect effect on the environment.

Recommended Actions:

Staff Recommendation
Staff recommends that the City Council adopt Resolution No. 24-123, which will:
..recommendation

1. Find the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322, categorically exempt from the CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines;

2. Award the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322, contract to ONYX Paving Company, Inc.;

3. Authorize the City Manager to execute a contract with ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, in a form substantially similar to Contract No. 24-44 (Attachment 3) for the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322; and

4. Approve a 10% construction contingency of $163,900 for this project. ..end
Attachment:

1. Resolution No. 24-123

2. Proposed Asphalt Pavement and Concrete Repair Locations

3. Contract No. 24-44
Notification:

All bidders
238
Attachment 1
RESOLUTION NO. 24-123

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AWARDING A

CONSTRUCTION CONTRACT TO ONYX PAVING
COMPANY, INC. TO PERFORM FY 2025 ARTERIAL AND

LOCAL STREET IMPROVEMENT PROGRAM IN AN
AMOUNT NOT TO EXCEED $1,639,000, PLUS A 10%

PROJECT CONTINGENCY, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONTRACT AND FINDING

THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR
SECTION 15301) OF THE STATE CEQA GUIDELINES
WHEREAS, the City conducted formal competitive bidding for the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322 (Project); and WHEREAS, on July 11, 2024, the City received six (6) responsive bids ranging from $1,639,000 to $4,201,263 for the Project; and
WHEREAS, ONYX Paving Company, Inc. was the lowest responsive and responsible bidder with a bid of $1,639,000.

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 herein.

SECTION 2. That based upon substantial evidence in the record as a whole, the Project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of repairs to existing City facilities, involves negligible or no expansion of existing or former use and there is no possibility of a direct or reasonably foreseeable indirect effect on the environment.

SECTION 3. That the Construction Contract Agreement for the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322, is hereby awarded to ONYX Paving Company, Inc.

SECTION 4. That the City Manager is authorized and directed to execute a construction contract for the FY 2025 Arterial and Local Street Improvement Program, CIP Project Nos. 15317 and 15322 with ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, in a form substantially similar to that presented to City Council on August 6, 2024.

SECTION 5. That a 10% project contingency of $163,900 is hereby approved. 239
Resolution No. 24-123 Page 2
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 August, 2024.

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

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-123 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of August, 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 August, 2024. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
240
APPENIX 5
COLD MILL (0.35 '- 0.50')
#'s Address width length SF Depth
1 Ave. Buena Ventura WB at S. ECR STOP legend 10 13 130 2 120 Ave. Calafia 6 30 180
3 Across from 120 Ave. Calafia 5 28 140
4 Across from 120 Ave. Calafia 6 10 60
5 Ave. Calafia at Ave. Montalvo cross gutter 4 16 64
6 202 Ave. Calafia 4 10 40
7 206 Ave. Calafia 5 10 50
8 206 Ave. Calafia 5 26 130
9 Across from 206 Ave. Calafia 4 25 100
10 229-231 Ave. Montalvo at Type 1 arrow 6 6 36
11 229-231 Ave. Montalvo 6 3 18
12 223 Ave. Lobiero 5 10 50
13 Ladera Lane at E. Ave. Cordoba 6 18 108
14 E. Ave. De Los Lobos Marinos at Calle Alcazar 11 11 121 15 213 E. Ave. Ramona (tree roots) 4 4 16
16 S. Ola Vista SB south of Ave. Valencia 9 5 45
17 S.Ola Vista SB south of Ave. Valencia 13 4 52
18 S. El Camino Real NB No. 2 lane under I-5 overpass 6 99 594 19 S. El Camino Real NB No. 2 lane under I-5 overpass 4 11 44 20 S. El Camino Real NB No. 2 lane under I-5 overpass 4 13 52 21 alley behind 1010 S. El Camino Real (near Ave. Santiago) 19 112 2,128 22 211 Esplanade 4 5 18
23 412 Montery Lane 4 30 120
24 414 Monterey Lane 7 38 266
25 416 Monterey Lane 4 6 24
26 E. Ave. Marquita at alley 20 30 600
27 E. Ave. Marquita between alley & N. El Camino Real 10 26 260 28 E. Ave. Marquita WB at STOP legend 12 10 120
29 E. Ave. Marquita EB east of N. El Camino Real 12 12 144 30 across from 612 Calle Puente SB before La Paloma 7 14 98 31 W. Canada (200 block) before Ave. Del Poniente at gutter 4 4 16 32 127 W. Canada 6 3 18
33 136 W. Canada 5 5 25
34 139 W. Canada 6 5 30
35 alley behind 712 N. El Camino Real 6 25 150
36 alley behind 712 N. El Camino Real 4 10 40
37 alley behind 920 N. El Camino Real 4 20 80
38 alley behind 102 Ave. Pelayo 4 8 32
39 alley behind 102 Ave. Pelayo 6 10 60
40 alley behind 1306 N. El Camino Real 4 28 112
41 alley behind 1310 N. El Camino Real 5 5 25
42 alley behind 1614-1616 Calle Las Bolas 4 22 88
43 alley behind 1616-1618 Calle Las Bolas 4 26 104
44 alley behind 1620-1622 Calle Las Bolas 4 12 48
45 alley behind 1624 Calle Las Bolas 4 8 32
46 alley between Ave. Del Mar and Ave. Granada 7 8 56
47 alley between Ave. Del Mar and Ave. Granada 6 10 60
48 alley between Ave. Del Mar and Ave. Granada 5 8 40
49 alley between Ave. Del Mar and Ave. Granada 6 5 30
50 alley between Ave. Granada and Ave. Victoria 2 2 4
51 alley between Ave. Granada and Ave. Victoria 3 25 75 52 121 Ave. de la Grulla 2 3 6
53 Ave. de la Grulla at Ave. Florencia 8 3 24
241
APPENIX 5
COLD MILL (0.35 '- 0.50')
#'s Address width length SF Depth
54 Ave. La Pata NB left turn lane at Ave. Pico 10.50 85 892.50 55 Ave. Vista Hermosa EB at beginning of RTL to Via Suerte 7 20 140 56 W. Ave. Pico westbound west of N. El Camino Real 8 8 64 57 W. Ave. Pico westbound west of N. El Camino Real 4 8 32 58 W, Ave. Pico west of N. El Camino Real at double yellow 8 28 224 59 W. Ave. Pico westbound east of Calle Deshecha 4 14 56 60 W. Ave. Pico westbound east of Calle Deshecha 8 6 48 61 W. Ave. Pico east of Calle Deshecha at double yellow 18 20 360 62 W. Ave. Pico at Calle Deschecha intersection 30 10 300 63 120 W. Ave. Pico at centerline 6 60 360
64 120 W. Ave. Pico at double yellow before Boca de la Playa 4 6 24 65 403 Ave. Salvador 4 10 40
66 N. El Camino Real NB at bluff near north end of slough wall 6 130 780 67 Camino De Los Mares WB No. 3 lane at Calle Agua intersection 4 12 48 68 603 Calle Real 14 15 210
69 603 - 605 Calle Real 12 39 468
70 611 Calle Real 7 27 189
71 611 Calle Real 13 8 104
72 Calle Real northbound before Via Manzana 18 10 180
73 Calle Real northbound before Via Manzana 13 32 416
74 Calle Real southbound after Via Manzana 8 13 104
75 Calle Reata reservoir access road at gate 10 40 400
76 2934 Calle Gaucho 7 4 28
77 2719 Carretera 7 20 140
78 behind 607 Calle Canasta at alley (tree roots) 10 7 70 79 1010 Calle Recodo (tree roots) 4 8 32
80 1010 Calle Recodo (tree roots) 4 7 28
81 900 Calle Negocio (tree roots) 4 4 16
82 across from 900 Calle Negocio (tree roots) 4 6 24
12,740.50
242
Appendix 6
(0.20') MILL FILL LOCATIONS
#'s Address width length SF
1 120 Ave. Calafia WB 5 16 80
2 Ave. Calafia at Montalvo cross gutter 5 15 75
3 202 Ave. Calafia WB 7 18 126
4 202-206 Ave. Calafia WB 4 45 180
5 Ave. Calafia EB at driveway to timeshare 4 20 80
6 Ave. Calafia EB across from 202 Ave. Calafia 4 27 108 7 Ave. Calafia EB across from 206 Ave. Calafia 4 26 104 8 Ave. Calafia EB across from 120 Ave. Calafia 4 20 80
9 S. Ola Vista NB at Ave. Calafia cross gutter 10 10 100 10 Ave. Del Presidente NB & SB at hump north of Ave. San Luis Rey 21 20 420 11 229 Ave. Montalvo 9 6 54
12 229 Ave. Lobiero 14 3 42
13 across from 238 Ave. Lobiero 4 20 80
14 236 - 238 Ave. Lobiero 4 100 400
15 242 Ave. Lobiero 4 16 64
16 Ave. De La Riviera at S. Ola Vista STOP legend 7 8 56 17 2445 S. Ola Vista at AHEAD legend 10 6 60
18 E. Ave. Magdalena WB east of Golf Clubhouse 18 10 180 19 E. Ave. Magdalena WB at east parking lot entrance along gutter 4 20 80 20 across from 102 Ave. San Luis Rey 8 20 160
21 across from 106 Ave. San Luis Rey 8 24 192
22 116 Ave. San Luis Rey at gutter 8 10 80
23 Ave. Santa Inez at alley 8 26 208
24 Ave. Santa Inez at S. ECR STOP legend 12 12 144
25 226-230 W. Ave. Alessandro 4 30 120
26 112 Ave. Del Presidente 14 45 630
27 112 Ave. Del Presidente 10 43 430
28 112 Ave. Del Presidente 6 10 60
29 112 Ave. Del Presidente 5 20 100
30 102 Ave. Valencia 7 14 98
31 104 Ave. Valencia 5 18 90
32 106 Ave. Valencia 5 75 375
33 218 Ave. Valencia 4 3 12
34 109 Ave. Valencia 4 3 12
35 E/B Ave. Valencia at alley 6 12 72
36 E/B Ave. Valencia at alley 6 13 78
37 Across from 135 W. Ave. Valencia at WB cross gutter 11 22 242 38 205 Ave. Valencia EB adjacent to STOP legend at S. Ola Vista 6 4 24 39 229 Ave. Valencia EB 4 29 116
40 231 Ave. Valencia EB 4 6 24
41 233 Ave. Valencia EB 4 24 96
42 S. Ola Vista NB past Ave. Princesa 5 40 200
43 160 Ave. Victoria 26 8 208
44 207 Ave. Victoria 2 36 72
45 226 Ave. Victoria 5 25 125
46 226 Ave. Victoria 5 25 125
47 228-230 Ave. Victoria 4 70 280
48 234-236 Ave. Victoria 4 20 80
49 236-244 Ave. Victoria 4 150 600
50 Westbound Ave. Victoria at upper Monterey Lane 4 20 80 51 Westbound Ave. Victoria at lower Monterey Lane 7 4 28 243
Appendix 6
(0.20') MILL FILL LOCATIONS
#'s Address width length SF
52 Eastbound Ave. Victoria at Ave. Santa Barbara STOP legend 9 11 99 53 Eastbound Ave. Victoria across from 402 Ave. Victoria 6 50 300 54 Eastbound Ave. Victoria across from 404 Ave. Victoria 4 50 200 55 Eastbound Ave. Victoria at Elena Lane 4 13 52
56 505 Ave. Victoria 4 20 80
57 602 - 604 Ave. Victoria 4 4 16
58 across from 608 Ave. Victoria 2 2 4
59 416 Monterey Lane 4 10 40
60 501 Monterey Lane 6 10 60
61 503 Monterey Lane 6 14 84
62 504 Monterey Lane 5 13 65
63 E. Ave. Cabrillo westbound at Ave. De La Estrella curb ramp 4 5 20 64 E. Ave. Cabrillo eastbound before STOP legend 8 6 48 65 E. Ave. Cabrillo westbound at right turn arrow 6 18 108 66 WB W. Cabrillo at N. ECR curb ramp 2 4 8
67 EB W. Cabrillo at N. ECR curb ramp 2 8 16
68 EB W. Cabrillo at N. ECR limit line 4 7 28
69 W. Cabrillo at DY near top ONLY legend 10 5 50
70 WB W. Cabrillo at N. ECR alley 6 30 180
71 102 W. Cabrillo at DY at parking lot dwy. 4 28 112
72 102-104 W. Cabrillo at DY between parking lot dwys. 2 60 120 73 EB W. Cabrillo across from 122 W. Cabrillo dwy. 2 12 24 74 150-160 W. Cabrillo at DY 4 90 360
75 170 W. Cabrillo (tree roots) 10 7 70
76 161 W. Cabrillo at DY 6 5 30
77 163 W. Cabrillo at DY 4 5 20
78 EB W. Cabrillo across from 170 W. Cabrillo 13 2 26
79 WB at 180 W. Cabrillo (depressed trench) 20 4 80
80 180 W. Cabrillo before N. Ola Vista STOP legend 13 32 416 81 EB W. Cabrillo 200 block at N. Ola Vista STOP legend 16 4 64 82 WB at 206 W. Cabrillo 4 37 148
83 WB at 208-210 W. Cabrillo 4 62 248
84 WB at 216 W. Cabrillo 4 8 32
85 EB W. Cabrillo at Community Center parking lot dwy. 5 5 25 86 EB W. Cabrillo at Community Center parking lot dwy. 5 4 20 87 EB W. Cabrillo east of catch basin 4 60 240
88 WB W. Cabrillo across from 246 W. Cabrillo 4 14 56
89 WB W. Cabrillo near MH west of 248 W. Cabrillo 4 16 64 90 EB W. Cabrillo just east of N. Calle Seville 5 15 75 91 E. Palizada WB thru lane at Ave. De La Estrella crosswalk 10 10 100 92 W. Palizada EB at N. Ola Vista 4 8 32
93 W. Palizada EB at N. Ola Vista at DY 5 16 80
94 W. Palizada EB at N.O.V. pocket 4 4 16
95 149 W. Palizada EB 4 6 24
96 145 W. Palizada EB 8 10 80
97 133 W. Palizada EB 5 5 25
98 111 W. Palizada EB before alley 5 6 30
99 111 W. Palizada EB before alley 5 5 25
100 W. Palizada EB at alley 8 7 56
101 W. Palizada east of alley 10 8 80
102 W. Palizada WB at 7-Eleven 10 4 40
103 W. Palizada WB at 7-Eleven 10 10 100
244
Appendix 6
(0.20') MILL FILL LOCATIONS
#'s Address width length SF
104 W. Palizada WB at 7-Eleven 4 18 72
105 W. Palizada WB at 7-Eleven 4 8 32
106 W. Palizada WB at alley 10 4 40
107 W. Palizada WB before "25" legend 8 14 112
108 W. Palizada WB before "MPH" 10 16 160
109 W. Palizada WB before Loma Lane 8 10 80
110 W. Palizada WB at Loma Lane 8 10 80
111 W. Palizada WB before "AHEAD" 8 13 104
112 W. Palizada WB after "AHEAD" 4 20 80
113 152-160 W. Palizada WB 4 60 240
114 160 W. Palizada WB 4 20 80
115 162 W. Palizada WB 6 5 30
116 W. Palizada WB after "STOP" at N. Ola Vista 4 7 28
117 W. Palizada WB after limit line at N. Ola Vista 8 8 64 118 Calle Puente SB between W. Mariposa and La Paloma 4 60 240 119 Calle Puente at SB at W. Mariposa cross gutter 12 6 72 120 Calle Puente NB before W. Mariposa STOP legend 4 48 192 121 154 Ave. Aragon EB before El Prado 14 12 168
122 across from 202 Ave. Aragon 4 10 40
123 Calle Colina WB before Buena Vista 12 25 300
124 1519 Buena Vista 4 22 88
125 Ave. Florencia N/B n.o. Ave. Pelayo before 1st Sharrow 4 10 40 126 W. Ave. Pico westbound west of N. El Camino Real 8 8 64 127 W. Ave. Pico westbound west of N. El Camino Real 4 8 32 128 W, Ave. Pico west of N. El Camino Real at double yellow 8 28 224 129 W. Ave. Pico westbound east of Calle Deshecha 4 14 56 130 W. Ave. Pico westbound east of Calle Deshecha 8 6 48 131 W. Ave. Pico east of Calle Deshecha at double yellow 18 20 360 132 W. Ave. Pico at Calle Deschecha intersection 30 10 300 133 120 W. Ave. Pico at centerline 6 60 360
134 120 W. Ave. Pico at double yellow before Boca de la Playa 4 6 24 135 Ave. Estacion just north of Calle Deschecha 4 8 32
136 108 Ave. Caballeros 4 12 48
137 N. La Esperanza southbound south of Ave. De La Paz 5 20 100 138 N. La Esperanza southbound south of Ave. Pizarro 6 30 180 139 N. La Esperanza southbound south of Ave. Pizarro 4 25 100 140 N. La Esperanza southbound south of Ave. Pizarro 4 22 88 141 N. La Esperanza southbound south of El Levante 4 15 60 142 N. La Esperanza northbound before El Levante 6 6 36 143 401 E. Ave. Cordoba 4 7 28
144 across from 403-405 E. Ave. Cordoba 7 137 959
145 403-405 E. Ave. Cordoba 10 51 510
146 across from 407 E. Ave. Cordoba 9 15 135
147 407 E. Ave. Cordoba 5 15 75
148 407 E. Ave. Cordoba 5 35 175
149 411 E. Ave. Cordoba 6 50 300
150 417 E. Ave. Cordoba 17 14 238
151 421 Ave. Arlena (also needs water valve can adjustment) 7 5 35 152 Ave. Pizarro before STOP legend 5 8 40
153 403 Ave. Salvador at MPH legend 5 8 40
154 403 Ave. Salvador 4 14 56
155 Calle Mendoza just before Ave. Presidio cross gutter 4 5 20 245
Appendix 6
(0.20') MILL FILL LOCATIONS
#'s Address width length SF
156 Ave. Presidio NB at Calle Empalme cross gutter 4 14 56 157 Ave. Presidio NB north of Calle Empalme along gutter 4 20 80 158 Ave. Presidio NB at curb ramp across from lower Miguel 4 25 100 159 Calle Miguel northbound at Calle Felicidad 8 57 456 160 Calle Miguel northbound before Calle Delicada 4 35 140 161 207 S. El Camino Real No. 2 lane NB 4 6 24
162 N. El Camino Real NB just north of Ave. Estacion between arrows 4 25 100 163 N. El Camino Real NB at natural bluff area before road widens 5 35 175 164 N. El Camino Real NB just before road widens at Berri Bros. station 15 5 75 165 Portico Del Sur NB just n.o. Avenida Fortuna 5 20 100 166 Portico Del Sur NB n.o. Avenida Fortuna 6 6 36
167 Portico Del Sur NB n.o. Roberto 6 40 240
168 Portico Del Sur NB n.o. Roberto near fire hydrant 6 42 252 169 Portico Del Sur NB main travel lane near Sombreado left turn pocket 4 45 180 170 Portico Del Sur NB n.o. Estampida near fire hydrant 10 28 280 171 Portico Del Sur SB across from Roberto 6 86 516
172 Portico Del Sur SB s.o. Avenida Fortuna 6 30 180
173 Portico Del Sur SB s.o. Avenida Fortuna 6 28 168
174 Across from 3200-3202 Portico Del Norte NB (sag) 8 12 96 175 Camino De Estrella EB just east of Sprouts driveway 4 8 32 176 Camino De Los Mares EB No. 1 and No. 2 lanes just east of Ave. Vaquero 20 55 1,100 177 Camino De Los Mares EB No. 1 lane at Cm. Vera Cruz intersection 12 15 180 178 Camino De Los Mares EB across from Estancia intersection 4 4 16 179 Camino De Los Mares EB before roundabout at Camino Del Rio 2 3 6 180 Camino De Los Mares WB west of roundabout at Camino Del Rio 2 3 6 181 Camino De Los Mares WB No. 2 lane at Cm. Vera Cruz intersection 2 2 4 182 Camino De Los Mares WB No. 1 lane across from 840 Cm. De Los Mares 10 6 60 183 Camino De Los Mares WB left turn pocket at Ave. Vaquero 10 70 700 184 Camino De Los Mares WB No. 1, No. 2 and bike lane at Ave. Vaquero 22 26 572 185 Camino Vera Cruz NB No. 2 lane before Plaza Pacifica 10 55 550 186 Camino Vera Cruz NB No. 1 lane above Calle Paradiso 10 10 100 187 Camino Vera Cruz NB bike lane north of Arbolado 4 60 240 188 Camino Vera Cruz SB south of Bello Panorama 4 4 16
189 Camino Vera Cruz SB Nos. 1, 2 and bike lanes before Plaza Pacifica 36 32 1,152 190 Camino Vera Cruz SB No. 2 lane at Plaza Pacifica 10 80 800 191 Camino Vera Cruz SB No. 2 lane S/O Plaza Pacifica between arrows 10 40 400 192 1000 Calle Recodo 7 28 196
193 1003 - 1005 Calle Recodo 12 40 480
194 1003 - 1005 Calle Recodo 10 50 500
195 1010 Calle Recodo 7 30 210
196 Calle Sombra (south) at limit line 18 4 72
197 Calle Sombra (south) above fire hydrant 11 14 154
198 Calle Amanecer eastbound at Calle Sombra 4 5 20
199 Calle Amanecer eastbound at Calle Sombra ECR 6 58 348 200 Calle Amanecer eastbound east of Calle Sombra 7 10 70 201 Calle Amanecer eastbound east of Calle Sombra 5 12 60 202 Calle Amanecer eastbound before 1st street light east of Sombra 4 90 360 203 Calle Amanecer after 1st street light east of Sombra 4 118 472 204 Calle Amanecer before downdrain east of Sombra 10 14 140 205 Calle Amanecer eastbound at SIGNAL AHEAD sign before La Pata 10 30 300 206 Calle Amanecer eastbound after SIGNAL AHEAD sign before La Pata 10 13 130 207 Calle Amanecer eastbound after SIGNAL AHEAD sign before La Pata 4 30 120 208 Calle Amanecer westbound at just west of Ave. La Pata crosswalk 10 18 180 246
Appendix 6
(0.20') MILL FILL LOCATIONS
#'s Address width length SF
209 Calle Amanecer westbound west of Ave. La Pata 4 50 200 210 Calle Amanecer westbound at Calle Sombra ECR 15 18 270 211 Calle Amanecer westbound west of Calle Sombra 5 29 145 212 Calle Amanecer westbound at Calle Recodo 4 20 80
213 Calle Negocio eastbound just east of Calle Amanecer 4 16 64 214 Calle Saluda eastbound at crosswalk 13 13 169
215 Calle Saluda remainder of crosswalk at Ave. La Pata 10 41 410 216 Calle Saluda eastbound from crosswalk 18 32 576
217 Calle Saluda crosswalk at Ave. La Pata 13 54 702
218 Calle Saluda WB before Ave. La Pata crosswalk 40 30 1,200 219 Calle Saluda WB at Ave. La Pata left turn lane 10 30 300 220 Camino Del Rio WB bike lane before Brillante 5 6 30 221 Ave. La Pata NB No. 1 lane past last MSL before Del Cerro (at sewer MH) 10.50 14 147 222 Ave. La Pata NB No. 2 lane at north end of Calle Amanecer intersection 10.50 16 168 223 Ave. La Pata NB before 2nd merge arrow north of Ave. Vista Hermosa 6 4 24 224 Ave. La Pata NB No. 1 lane at 3rd MSL before Calle Saluda 4 4 16 225 Ave. La Pata NB No. 2 lane before Calle Saluda 10 30 300 226 Ave. La Pata NB No. 2 lane at Calle Saluda intersection 11 75 825 227 Ave. La Pata NB bike/sharrow lane at Calle Saluda intersection 19 46 874 228 Ave. La Pata NB No. 2 lane before Camino Del Rio traffic detection loops 38 70 2,660 229 Ave. La Pata NB at left turn pocket to Camino Del Rio 10 10 100 230 Ave. La Pata SB No. 3 lane before Fire Station No. 59 4 4 16 231 Ave. La Pata SB No. 3 lane near catch basin south of Fire Sta. No. 59 4 3 12 232 Ave. Vista Hermosa eastbound right turn lane into Outlets at S.C. (west) 14 7 98 233 Ave. Vista Hermosa eastbound No. 2 lane east of Ave. Costa Azul 10 10 100 234 Ave. Vista Hermosa eastbound No. 2 lane east of Outlets at S.C. (east) 10 10 100 235 Ave. Vista Hermosa EB No. 1 lane at 1st median tree east of Cm. Laurel 10 10 100 236 Ave. Vista Hermosa EB No. 1 lane at 6th median tree before Via Turqueza 10 18 180 237 Ave. Vista Hermosa EB No. 1 lane near SMH before Via Turqueza 2 12 24 238 Ave. Vista Hermosa EB No. 1 lane at 5th median tree before Via Turqueza 10 25 250 239 Ave. Vista Hermosa EB all lanes before Via Turqueza 36 75 2,700 240 Ave. Vista Hermosa WB No. 2, bike & right turn lanes before La Pata loops 23 62 1,426 241 Ave. Vista Hermosa westbound all lanes just before Target intersection 51 70 3,570 242 Ave. Vista Hermosa westbound No. 2 lane at last MSL before Cm. Vera Cruz 5 25 125 243 Ave. Vista Hermosa all lanes just before Camino Vera Cruz intersection 44 70 3,080 244 Ave. Vista Hermosa all lanes at Calle Frontera to remove ladder crosswalk 106 13 1,378 245 Ave. Vista Hermosa westbound No. 2 lane W.O. bridge near Outlets of S.C. 10.50 8 84 246 Ave. Pico eastbound No. 1 lane just east of N. El Camino Real 9 10 90 247 Ave. Pico eastbound No. 3 lane just east of McDonald's exit driveway 4 20 80 248 Ave. Pico eastbound No. 2 lane before SCHS driveway 4 4 16 249 Ave. Pico eastbound No. 2 lane east of Triton Way 10.50 70 735 250 Ave. Pico eastbound No. 1 lane just east of Del Cerro crosswalk 10.50 10 105 251 Ave. Pico eastbound No. 2 lane east of Del Cerro at MSL No. 2 10.50 35 367.50 252 Ave. Pico eastbound No. 3 lane east of Del Cerro at median pass thru 4 4 16 253 Ave. Pico eastbound No. 1 lane at Calle Amanecer intersection 4 4 16 254 Ave. Pico eastbound No. 1 lane east of Vera Cruz at SIGNAL legend 10.50 20 210 255 Ave. Pico EB No. 3 lane before advance loops for Plaza Pacifica (east) 10.50 10 105 256 Ave. Pico EB No. 1 lane east of Plaza Pacifica (east) at MSL No. 1 10.50 10 105 257 Ave. Pico EB No. 1 lane east of Plaza Pacifica (east) before MSL No. 2 10.50 30 315 258 Ave. Pico EB No. 3 lane before Ave. La Pata 10.50 55 577.50 259 Ave. Pico EB bike / right turn lane before La Pata 9 120 1080 260 Ave. Pico westbound No. 1 lane west of the Courtyards before Ave. La Pata 10.50 20 210 261 Ave. Pico westbound No. 2 lane at crosswalk at Ave. La Pata (west side) 10.50 3 31.50 247
Appendix 6
(0.20') MILL FILL LOCATIONS
Address width length SF
262 Ave. Pico westbound No. 1 lane at crosswalk at Ave. La Pata (west side) 10.50 28 294 263 Ave. Pico westbound No. 3 lane west of Ave. La Pata 10.50 10 105 264 Ave. Pico westbound No. 3 lane before Plaza Pacifica (east) advance loops 10.50 60 630 265 Ave. Pico westbound No. 3 lane before Plaza Pacifica (east) 4 10 40 266 Ave. Pico westbound No. 3 lane before Plaza Pacifica (east) 4 10 40 267 Ave. Pico westbound before Calle Amanecer at traffic detection loops 44 35 1540 268 Ave. Pico westbound left turn pocket before Calle Amanecer 10 60 600 269 Ave. Pico westbound at Continental crosswalk 54 13 702 270 Ave. Pico westbound No. 2 lane W.O. Calle Amanecer 10.50 10 105 271 Ave. Pico westbound No. 1 between 4th & 5th MSLs west of Amanecer 10.50 50 525 272 Ave. Pico westbound No. 2 lane at 6th MSL west of Calle Amanecer 10.50 40 420 273 Ave. Pico westbound No. 2 lane before 7th MSL west of Calle Amanecer 10.50 6 63 274 Ave. Pico westbound No. 1 lane west of 7th MSL west of Calle Amanecer 10.50 28 294 275 Ave. Pico westbound No. 1 lane west btn. 8-10 MSL west of Calle Amanecer 10.50 223 2,341.50 276 Ave. Pico westbound No. 2 lane btn. MSL 10-11 before Del Cerro advance loops 10 10 100 277 Ave. Pico westbound No. 1 lane after Del Cerro advance loops 10 72 720 278 Ave. Pico WB at end of bike lane west of Del Cerro 10 12 120 279 Ave. Pico WB No. 4 lane west of Gateway Village 4 450 1800 280 Ave. Pico WB No. 4 lane before Calle Frontera 10.50 55 577.50 281 Ave. Pico WB No. 1 lane before Calle Frontera 10.50 100 1050 282 Ave. Pico westbound No. 2 lane before Calle Frontera intersection 10.50 90 945 283 Ave. Pico westbound No. 3 lane before Calle Frontera intersection 10.50 100 1050 284 Ave. Pico westbound at beginning of left turn lane for Presidio at arrow 10 12 120 285 Ave. Pico westbound No. 4 lane near local depression west of SCHS 5 50 250 286 Ave. Pico westbound thru lane at N. El Camino Real cross gutter 10 20 200 Total estimated Mill & Fill (0.20') 73,165.50
248
Attachment 3
4868-6848-4561 v1
SECTION 00500

CONTRACT
THIS CONSTRUCTION CONTRACT FY 2025 ARTERIAL AND LOCAL STREET IMPROVEMENT PROGRAM, PROJECT NOS. 15317 AND 15322 (“Contract”) is made this _____ day of _________, 2024, in the County of Orange, State of California, by and between the City of San Clemente, a municipal corporation (“City”), and ONYX Paving Company, Inc., a California corporation with its principal place of business at 2890 E. La Cresta Avenue, Anaheim, California, 92806 (“Contractor”). City and the Contractor for the considerations stated herein agree as follows:

ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:

FY 2025 ARTERIAL AND LOCAL STREET IMPROVEMENT PROGRAM, Project Nos. 15317 and 15322
The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 100 working days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Million Six Hundred Thirty-Nine Thousand Dollars ($1,639,000). Payment shall be made as set forth in the General Conditions.

At any time during the term of the Contract, City may, pursuant to the terms and provisions of the Contract Documents, request that the Contractor perform additional work. Contractor shall not perform, nor be compensated for, additional work without prior written authorization from the City pursuant to the terms and provisions of the Contract Documents.

ARTICLE 4. LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. In accordance with government code section 53069.85, it is agreed that the Contractor will pay city the sum of $500 for each and every calendar day of delay beyond the time prescribed in the contract documents for finishing the work, as liquidated damages and not as a penalty or forfeiture. In the event that liquidated damages are not paid, the Contractor agrees city may deduct that amount from any money due or that may become due the Contractor under the contract. This article does not exclude recovery of other damages specified in the contract documents.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Notice Inviting Bids
249
Attachment 3
4868-6848-4561 v1
Instructions to Bidders
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Contract
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project.

ARTICLE 7. INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at CITY CLERK, CITY OF SAN CLEMENTE or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.
[SIGNATURES ON FOLLOWING PAGE]
250
Attachment 3
4868-6848-4561 v1
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the date first indicated above.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST:
______________________________ Dated: ____________________, 20____ 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

ONYX Paving Company, Inc.,
a California corporation
(“CONTRACTOR”)
By:_____________________________
Corey Kirschner, Chief Executive
Officer, Secretary, Chief Financial
Officer
Dated: __________________, 20____

END OF CONTRACT
251
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 6, 2024 Agenda Item: 11H.

Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director Subject:
..titl e
RESPONSE TO 2023-2024 ORANGE COUNTY GRAND JURY REPORT “E-BIKES FRIEND OR FOE” ..body
Fiscal Impact:

It is uncertain if implementation of the recommendations will result in any costs to the City.

Summary:

On June 13, 2024, the City was sent a copy of the 2023-2024 Orange County Grand Jury report, “E-bikes Friend or Foe.” The focus of the report is the increasing use of electric bicycles (E-bikes) and the impacts on the public due to the higher risks of accidents and injuries when compared to the use of conventional bicycles. Challenges identified in the report include the need to have consistent ordinances for the regulation and enforcement of safe E-bike use in all cities, school districts, parks, and unincorporated areas. The Grand Jury requires a response from the City on three Findings and three Recommendations in the report, and the responses must be submitted to the Presiding Judge of the Superior Court by September 19, 2024, unless an extension for additional time to further analyze the subject, up to six months, is requested.

Background:

The 2023-2024 Orange County Grand Jury report, “E-bikes Friend or Foe” is provided as Attachment 1. The attached report is marked “Confidential”, however, it was only confidential until June 20, 2024 when the report was released to the public. The report is no longer confidential.

The report identifies challenges jurisdictions in Orange County, as well as the public, face in understanding the different classes of E-bikes, how fast they can go, and any applicable restrictions or regulations that govern their use, especially as automobiles must now share the road with E-bike riders. The challenges, the report states, come from a proliferation in the use of E-bikes without a corresponding increase in robust training, enforcement measures, and methods of socializing E-bike use in affected communities. The result, the report states, is not only issues related to their operation, but also an escalation in the severity of accidents involving E-bikes and lack of awareness of the incidence and prevalence of E-bike injuries and fatalities at the local level.

The report identifies three Findings (p. 12 of 24 of report) and three Recommendations (p. 13 of 24 of report). California Penal Code Section 933 requires the City to provide a response to each of the Findings and Recommendations in the report. California Penal Code Section 933.05 specifies the exact manner in which the responses and comments on the Findings and Recommendations are to be made. The applicable California Penal Code provisions are included 252
Meeting Date: August 6, 2024 Agenda Item: 11H.

CITY OF SAN CLEMENTE 2
in Attachment 2. The responses must be submitted to the Presiding Judge of the Superior Court by September 19, 2024.

Staff has prepared draft responses below for the City Council’s consideration. The proposed responses are based on staff’s knowledge of the City’s experience with E-bike usage and regulations.

Findings
In accordance with California Penal Code Sections 933 and 933.05, the 2023-2024 Grand Jury requires responses from each agency affected by the findings. Based on its investigation titled "E-bikes Friend or Foe," the 2023-2024 Orange County Grand Jury has arrived at three principal findings. Below are the Findings and proposed responses:

F1 The majority of Orange County’s 34 cities do not have ordinances or policies in place, which makes it difficult to address the safe operation and regulation of E-bikes leading to confusion.

Staff Recommended Response:

Agree; however, the City of San Clemente has not conducted an independent survey to confirm this finding.

F2 Due to the increasing incidence of E-bike injuries and deaths, there is a need for consistent and accurate tracking by law enforcement and first responders, which does not exist now.

Staff Recommended Response:

Agree.

F3 Training and education on E-bike use and safety varies from city to city causing confusion amongst bike riders
Staff Recommended Response:

Agree; however, the City of San Clemente has not conducted an independent survey to confirm this finding.

Recommendations
In accordance with California Penal Code Sections 933 and 933.05, the 2022-2023 Grand Jury requires responses from each agency affected by the recommendations presented in this section.

Each Recommendation lists the associated Finding in parentheses “()”.

Based on its investigation titled, "E-bikes Friend or Foe," the 2023-2024 Orange County Grand Jury makes the following three recommendations:

R1 Each Orange County city should have specific policies that define the rules of the road for use of E-bikes in their communities by December 1, 2024. (F1) Staff Recommended Response:
253
Meeting Date: August 6, 2024 Agenda Item: 11H.

CITY OF SAN CLEMENTE 3
The Recommendation has been implemented in specific areas of the City, such as Beaches and Trails, and further implementation is contemplated through future amendments to the San Clemente Municipal Code to address areas in the City’s right-of-way by December 1, 2024.

R2 Each Orange County city should have a mechanism in place to report accidents, injuries and deaths involving E-bikes by December 1, 2024. (F2)
Staff Recommended Response:

This Recommendation requires implementation by the City’s contracted public safety personnel, specifically the Orange County Sheriff’s Department and the Orange County Fire Authority because those agencies are responsible for traffic enforcement and medical responses within the City of San Clemente, and subsequent reporting of such activities. The City of San Clemente will support these agencies in implementing this recommendation to the extent possible by December 1, 2024.

R3 Each Orange County city should research and develop outreach and education programs regarding the safe operation of E-bikes for their residents by December 1, 2024. (F3) Staff Recommended Response:

The Recommendation has been implemented. The City, along with the Orange County Sheriff’s Department staff conducts bicycle/E-bike training at various events throughout the year, including a Bicycle Rodeo and trainings at local schools.

Council Options:
 Adopt Resolution No. 24-124, approving the staff-recommended responses to the 2023-2024 Orange County Grand Jury report, “E-bikes Friend or Foe”.  Modify and adopt Resolution No. 24-124 by making modifications to the staff-recommended responses to the 2023-2024 Orange County Grand Jury report, “E-bikes Friend or Foe” and approve such responses as modified.
 Continue the item and provide staff with alternative direction.

Environmental Review/Analysis:

The proposed action is not a “project” pursuant to California Environmental Quality Act Guidelines Sections 15378. (14 CCR § 15378.)
Recommended Actions:

Staff Recommendation ..recommendation
Adopt Resolution No. 24-124, entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALIFORNIA, APPROVING RESPONSE TO FINDINGS AND RECOMMENDATIONS IN THE REPORT OF THE ORANGE COUNTY GRAND JURY – ‘EBIKES FRIEND OR FOE’”, and authorizing and directing the Mayor to respond to the findings and recommendations noted in the report by submitting a letter to the Presiding Judge of the Superior 254
Meeting Date: August 6, 2024 Agenda Item: 11H.

CITY OF SAN CLEMENTE 4
Court by September 19, 2024 in substantially the same form as attached to the Resolution as Exhibit A.
..end
Attachments:

1. 2023-2024 Orange County Grand Jury report, “E-bikes Friend or Foe”

2. Copy of California Penal Code Section 933

3. Proposed Resolution No. 24-124, with Exhibit A - City of San Clemente’s Response to Findings and Recommendations of the 2023-2024 Orange County Grand Jury report, “E-bikes Friend or Foe”
Notification:

None.
255
June 13,2024
The Honorable Victor Cabral
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Dear Mayor Cabral:

ORANGE COUNTY GRAND JURY
700 CIVIC CENTER DRIVE WEST • SANTA ANA, CALIFORNIA 92701 • 714/834-3320 www.ocgrandjury.org • FAX 714/834-5555
Enclosed is a copy of the 2023-2024 Orange County Grand Jury repo11, E-bikes Friend or Foe. Pursuant to Penal Code 933.0S(f), a copy of the rep011 is being provided to you at least two working days prior to its public release. Please note that under that subsection, "No officer, agency, department, or governing body of a public agency shall disclose any contents of the repo11 prior to the public release of the final report." (Emphasis added.) It is required that you provide a response to each of the findings and recommendations of this repo11 directed to your office in compliance with Penal Code 933 .0S(a) and (b), a copy is enclosed.

Please distribute this report to your governing body.

For each Grand Jury recommendation accepted and not implemented, provide a schedule for future implementation. In addition, by the end of March of each subsequent year, please report on the progress being made on each recommendation accepted but not completed. These annual reports should continue until all recommendations are implemented.

Please mail the response to the recommendations to Maria Hernandez, Presiding Judge of the Superior Cou11, 700 Civic Center Drive West, Santa Ana, CA 9270 l, with a separate copy mailed to the Orange County Grand Jury, 700 Civic Center Drive West, Santa Ana, CA 9270 l, no later than 90 days after the public release date, June 20, 2024, in compliance with Penal Code 933, copy enclosed. The due date then is September 19, 2024.

Should additional time for responding to this repo11 be necessary for fu11her analysis, Penal Code 933.05(b)(3) permits an extension of time up to six months from the public release date. Such extensions should be advised in writing, with the information required in Penal Code 933.05(b)(3), to the Presiding Judge of the Superior Court, with a separate copy of the request to the Grand Jury.

We tentatively plan to issue the public release on June 20, 2024. Upon public release, the report will be available on the Grand Jury website at www.ocgrandjury.org.

Very truly yours,
��Michael J. Ver/{ngia, Foreperson
2023-2024 ORANGE COUNTY GRAND JURY
MJV:jm
Enclosures: Grand Jury Report
Penal Code 933, 933.05
Cc: Andy I !all, City Manager
ATTACHMENT 1
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Table of Contents
SUMMARY...................................................................................................................... 1 BACKGROUND.............................................................................................................. 1 REASON FOR THE STUDY........................................................................................... 3 METHOD OF STUDY...................................................................................................... 3 INVESTIGATION AND ANALYSIS................................................................................. 4 Orange County Transportation Authority................................................................ 4 Orange County Sheriff’s Department....................................................................... 4 Cities Survey .............................................................................................................. 4 COMMENDATIONS...................................................................................................... 12 FINDINGS..................................................................................................................... 12 RECOMMENDATIONS................................................................................................. 13 RESPONSES................................................................................................................ 13 REQUIRED RESPONSES......................................................................................... 14 REFERENCES.............................................................................................................. 18 GLOSSARY.................................................................................................................. 20 APPENDICES............................................................................................................... 21 APPENDIX 1.............................................................................................................. 21 Current County of Orange E-Bike Laws - Unincorporated Areas .................... 21 APPENDIX 2.............................................................................................................. 22 California Vehicle Code Section 312.5 as of December 23, 2023 ..................... 22 APPENDIX 3.............................................................................................................. 23 California Assembly Bills..................................................................................... 23 APPENDIX 4.............................................................................................................. 24 County of Orange Ordinance No. 18-002............................................................ 24 258
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SUMMARY
The use of electric bicycles (E-bikes) has increased as our communities look to new and novel ways to commute and to reduce our reliance on automobiles. E-bikes are a cost-effective alternative. However, they bring higher risks of accidents and injuries when compared to conventional bicycles. The public deserves education and safety regulations to mitigate this concern.

The 2023-2024 Orange County Grand Jury (OCGJ) investigation into E-bike regulation, education, and safety focused on what, if any, pertinent regulations have been adopted by Orange County cities. The OCGJ investigation revealed that outside of the California Vehicle Code, the 34 cities, 13 of which are contract cities with the Orange County Sheriff’s Department (OCSD), vary significantly in their regulation, safety (accidents, fatalities, etc.), enforcement, and education on E-bikes. The Orange County Transportation Authority (OCTA) oversees E-bike safety, education, and public outreach for all unincorporated areas. OCTA holds quarterly meetings with all 34 cities in the county to discuss transportation issues including E-bike regulation, safety, education, and enforcement.

There is an urgent need to have consistent ordinances for the regulation and enforcement of safe E-bike use in all cities, school districts, parks, and unincorporated areas. Currently, there are significant differences in policy across cities. The recent surge in E-bike usage calls for immediate action to strengthen city oversight of this issue. This report will highlight the differences between cities’ approaches and make recommendations to attain realistic and practical policies for their respective jurisdictions.

BACKGROUND
The modern E-bike was introduced in the 1990s as a pedal assist bike with a batterypowered motor. The OCGJ focused on the 3 classes of E-bikes (see table below).

In most cases, it is hard to tell the difference between a Class 1, 2, or 3 E-bike, as there may be no apparent distinction to the naked eye. It is important that Orange County residents understand the different classes of E-bikes, how fast they can go, and any applicable restrictions or regulations that govern their use. This is particularly pertinent as automobile and bus commuters must now share the road with E-bike riders. 259
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The ease of use, relatively low price, and convenience of E-bikes have led to their proliferation throughout Orange County. It is estimated that the sales of E-bikes rose by 145% during 2020-to-2021 (World Economic Forum March 12, 2021).

However, along with the proliferation of E-bikes have come inevitable issues regarding their use, including:
• riding on sidewalks
• riding against traffic
• speeding
• bike vs pedestrian collisions
• bike vs motorized vehicle conflicts
• the ability to make unauthorized modifications to the electric motors which allows the E-bikes to exceed their maximum intended speed
There are also issues regarding E-bike rider injuries in accidents, which can be more serious than injuries of riders in bicycle accidents (US Consumer Product Safety Commission October 17, 2023). According to the OCGJ survey sent to city mayors, many do not track or have awareness of the incidence and prevalence of E-bike injuries and fatalities in their respective cities.
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The OCGJ sent a survey to all Orange County cities to learn each city’s policies, availability of safety education, and enforcement of E-bikes. The responses from the cities that answered indicate a wide variety of differences - with some cities having robust training, enforcement measures, and methods of socializing E-bike use in their communities.

The OCGJ recognizes that there cannot be a “one size fits all” approach to the regulation of E-bikes, as all cities in Orange County are unique and have different needs. For example, a large beachside city will have its own unique policies as compared to smaller inland cities. The rapidly expanding use of E-bikes compels cities to ensure a safe environment for riders of E-bikes and all citizens of Orange County.

REASON FOR THE STUDY
As E-bike sales have increased by almost 145% worldwide (World Economic Forum Mar. 12, 2021) over the past 2 years, the regulation of their use does not seem to have kept up. Accidents and incidents with E-bikes are on the rise, as are complaints from citizens of Orange County about E-bike riders (Voice of OC Sept. 2023). Accordingly, the OCGJ determined that an investigation into E-bikes was needed to bring public awareness to the safe use of E-bikes and the importance of having city-relevant “rules of the road” in place.

This report seeks to press Orange County cities to actively seek common-sense rules for E-bikes to ensure their safe operation among conventional bicycles, pedestrians, and vehicles.

METHOD OF STUDY
Information from this investigation was collected and verified through multiple sources and statements made during interviews and includes extensive research of current online and print articles regarding E-bikes in Orange County. The OCGJ conducted the following activities:
• In-person interviews of representatives from:
o A major retail bike shop that sells both E-bikes and standard bicycles o The Orange County Transportation Authority
o The Orange County Sheriff’s Department
o The Central Newport Beach Community Association
• In-person attendance and online viewing of several city council meetings • In-person attendance at a training session hosted by a local city • Review of proposed State legislation that failed, passed, or is in committee 261
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• Direct observance of E-bike riders, where they are riding, use of protective gear, passengers, dangerous maneuvers, etc.
• An online survey was distributed to the mayors of 34 cities in Orange County.

Unincorporated areas/divisions were not included in this survey. Mayors and/or representatives from 22 cities responded to this survey

INVESTIGATION AND ANALYSIS
Through interviews and surveys, the OCGJ determined that there is wide variation of rules on E-bikes and limited information regarding the reporting of E-bike incidents, accidents, injuries, and basic rules of the road for E-bikes.

Several news outlets (newspapers, magazines, television, online forums) have published stories about E-bikes. While many acknowledge the benefits of E-bikes, they also detail significant issues for cities to address.

Speeding, unsafe, or reckless operation, riders under 18 years of age not wearing helmets and toddlers riding on the back or front without proper child safety seats present common E-bike regulation and enforcement challenges for law enforcement.

Orange County Transportation Authority
OCTA has published on their website a comprehensive list of regulations listed by city regarding bicycles and E-bikes. As with the OCGJ survey, there are several different rules for E-bike riders dependent on what city they are riding in due to the differences in cities such as availability of bike lanes and the speed at which E-bikes are permitted to travel.

Orange County Sheriff’s Department
OCSD enforces the California Vehicle Code (CVC) Section 312.5 regarding electric bicycles. In addition, the Sheriff’s Department works closely with OCTA to provide E-bike outreach and education to the residents of Orange County. The OCSD Training Bulletin 23-01, issued January 4, 2023, provides the current E-bike enforcement criteria for Sheriff’s Deputies.

Cities Survey
OCGJ sent a list of survey questions to all city mayors in Orange County regarding policies in their cities with respect to E-bikes. Of the 34 surveys sent, 22 were completed and returned to the Grand Jury. A sampling of the survey results follows:
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• Do you track injuries/deaths from E-bike accidents, injuries, fatalities? Tracking of E-bike injuries, deaths, property damage and battery fires, 11 of the 22 cities answered that they tracked these items on E-bikes.

The entity responsible for tracking these items varied within each city among law enforcement organizations, city government offices, and local hospitals. There is no standard way to compile and publish accident/incident information on E-bikes.

To properly track trends in E-bike operation, a robust incident and accident tracking mechanism must be in place. Items that need to be tracked include but are not limited to class of E-bike involved, estimated speed of the E-bike, direction of travel, age of the rider, whether helmets were used, and any injuries sustained. In the process of accident reporting, most police agencies do not distinguish whether the bicycle involved was a conventional bike or an E-bike.
• In your city, who, if anyone, is authorized to enforce infractions? Please select all that apply:
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Of the 22 cities that completed the survey, 100% indicated that some form of law enforcement was the agency authorized to enforce/cite infractions for E-bike riders.

Police Departments, OCSD, or Park Rangers were the organizations authorized for E-bike enforcement.
• In your city, are E-bikes allowed:
10 cities indicated that E-bikes were authorized on sidewalks, 4 cities answered unknown, and the remaining cities answered that E-bikes were prohibited from sidewalks.
21 cities indicated that E-bikes were authorized in bike lanes with one city responding as unknown.
13 cities indicated that E-bikes are allowed on park trails, 5 cities indicated that E-bikes were prohibited from using park trails, and 4 cities indicated that park trail policy for E-bikes was unknown.
16 cities indicated that E-bikes were authorized in vehicle lanes and 6 cities answered unknown.
5 cities answered no, 8 cities answered unknown, and 9 cities indicated that E-bikes were allowed on highways.

Riding on sidewalks was found to be a contentious issue. One city cited California Assembly Bill 825 (which would have barred local agencies from prohibiting bike use on sidewalks but has since been vetoed) as a reason not to prohibit E-bikes on sidewalks.

When there is no defined bike lane, E-bike riders will ride on sidewalks as a matter of safety. E-bikes, depending on the class, can go up to 28 miles per hour, which is typically faster than a conventional bicycle and much faster than a walking pedestrian. 264
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Although most current laws give the bicyclist and pedestrians the right of way, the reaction time for an E-bike rider going over 10 miles per hour on the sidewalk generally does not give the rider adequate opportunity to avoid pedestrians walking on the sidewalk or cars coming out of driveways.
• Does your city have posted speed limits for E-bikes?
100% of the cities that answered the OCGJ survey indicated that they do not post speed limits for E-bikes. No reasons were cited as to why they are not posted for E-bikes even though their top speed can be as high as 28 miles per hour or faster if the rider disables speed restrictive devices thus allowing the E-bike to almost double its speed.

There are obvious issues involving where to place speed limit signs for E-bikes. They are allowed to travel in bike lanes, on sidewalks, and in some jurisdictions even allowed to ride in opposition to traffic.
• In your city, are E-bikes expected to travel in the same direction or opposite direction from street traffic?
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Some cities have authorized E-bikes to ride against the flow of traffic. As stated in the OCTA website (in a section entitled “Wrong Way Riding”), riding against traffic is inherently dangerous due to:
➢ Oncoming cars approach at a much higher speed
➢ Drivers cannot see E-bike riders when turning left
➢ E-bike rider is unable to make right turns
➢ Traffic signals cannot be seen
• Is safety training offered by the city for E-bike riders? Safety education and/or training for E-bike riders is available only sporadically and is, in most cases, optional. As noted in the survey, only 8 cities indicated that safety training was offered. The Orange County Register published a story (OC Register Jan 3, 2024) about a San Juan Capistrano resident who has taken on educating new E-bike riders as a result of her son being injured on an E-bike. An OCGJ visit to a local retailer of E-bikes found there was no formal training for E-bike purchasers or riders, and the only information to purchasers of E-bikes was a pamphlet. The Huntington Beach Police Department has a safety class every other month which focuses on E-bike safety.

OCTA holds safety “bike rodeos” for E-bike riders. These are a few examples of the education available for E-bike riders, but none is mandatory prior to purchasing or riding an E-bike. Therefore, grass-roots efforts are another important step in promoting education and safety.

The OCGJ interviewed a member of the Central Newport Beach Community Association as to their concerns about education, safety, and enforcement regarding E-bikes. The Association has been active in monitoring E-bike use, specifically on the Balboa peninsula. Its focus has been on a perceived lack of enforcement of existing ordinances and the CVC on streets and the beach boardwalk. Along with education and safety training, the Association prefers active enforcement using radar guns, tickets, and increased law enforcement presence.
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• Do the schools/school districts in your city offer safety information and/or certification for student E-bike users on campus?
There are 28 school districts spread across the 34 cities of Orange County. Cities were asked whether schools in their jurisdictions offer safety information to student E-bike riders. Of the 22 cities that responded to the survey, 7 answered yes and 2 answered no. The concerning number that leaps to the eye is that 13 survey respondents stated that they were unaware of their school district’s participation in E-bike regulation. At the time of this report, the 5 districts (per district website) that currently require safety training and registration are:
➢ Capistrano Unified
➢ Los Alamitos Unified
➢ Huntington Beach Union
➢ Irvine Unified
➢ Ocean View
• Are there any other persons/groups that might be able to provide meaningful or relevant information regarding E-bikes to the Grand Jury? At least 6 cities referred this question to the OCSD. 6 others referred this question to their own police department. Interestingly, at least 6 suggested that their jurisdictional park rangers (if these are in place in their city) would be able to answer the question. 267
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• Is there outreach by the city being conducted to inform your community of any regulations and safety training?
Of the 34 cities in Orange County, 22 responded to this question: 10 cities said “yes,” 10 cities said “no,” and 2 cities indicated “unknown.”
An example of outreach is the City of Irvine’s Police Department. The outreach has several elements which includes High Visibility Enforcement (HVE) operations to issue administrative citations to juveniles violating vehicle codes on E-bikes. It also hosts E-bike safety courses, E-bike rodeos, and community presentations on E-bike safety.

There are also plans for Public Safety in collaboration with the Irvine Unified School District to implement a parking permit program which will require students riding E-bikes to school to attend workshops on E-bike safety before being issued a parking permit to park their E-bike on campus.
• Does your city regulate the use of E-bikes?
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There were 15 cities who responded that they do not regulate E-bikes or their usage.

The OCGJ felt that this statistic, on its own, warranted further investigation and, possibly, further action by such cities.

GENERAL COMMENTS FROM SURVEY RESPONDENTS
“I personally promote safe e-bike texts on local Facebook groups... about 16,000 members. I promote e-bike safety every council meeting.” “State and local legislation is lagging far behind e-bike technology and there is a lot of confusion amongst e-bike users and police regarding what is lawful and what is unlawful when it comes to e-bikes.”
“Thank you for looking into this. I am a relatively new mayor and although I consider eBikes an issue, we have so many other issues that are taking priority. I would like to see e-Bikes banned from all trails that were previously used for bicycles and pedestrians only. They function more like scooters than bicycles.”
“E-bikes and bike safety, in general, are very big topics in the community right now and our Police Department is currently doing A LOT to address these items. Besides conducting weekly High Visibility Enforcement (HVE) operations, IPD’s traffic staff oftentimes issue administrative citations to juveniles who commit vehicle code violations on their bicycles, including E-bikes and E-scooters. In fact, approximately 50% of our administrative citations are issued to E-bike and E-scooter operators. Rather than paying a fine similar to conventional traffic citations, our administrative citations require the juvenile to attend a 2-hour long bike safety course with a parent or guardian on the weekend at City Hall.”
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“Our city will soon be meeting with reps from OCSD in reference to providing additional educational tools for e-bike riders. I have made contact with our local elected officials in reference to securing funds for e-bike enforcement and education.” “The issue with E-bike safety is an active project in our traffic safety unit. Currently we are looking at any municipal codes which will assist with safety for e-bike riders and motorists.”

COMMENDATIONS
The following agencies contributed to the OCGJ’s investigation into the use of E-bikes in Orange County:
• Orange County Transportation Authority has taken a leadership role in outreach and education to all 34 Orange County cities
• Orange County Sheriff’s Department has been very proactive in keeping up with the everchanging rules of the road for E-bikes
• Central Newport Beach Community Association provided important data and various studies on E-bike usage in Newport Beach

FINDINGS
In accordance with California Penal Code Sections 933 and 933.05, the 2023-2024 Grand Jury requires (or, as noted requests) responses from each agency affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation titled “E-bikes- Friend or Foe,” the 2023-2024 Orange County Grand Jury has arrived at three principal findings, as follows:

F1. The majority of Orange County’s 34 cities do not have ordinances or policies in place, which makes it difficult to address the safe operation and regulation of E-bikes leading to confusion.

F2. Due to the increasing incidence of E-bike injuries and deaths, there is a need for consistent and accurate tracking by law enforcement and first responders, which does not exist now.

F3. Training and education on E-bike use and safety varies from city to city causing confusion amongst bike riders.
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RECOMMENDATIONS
In accordance with California Penal Code Sections 933 and 933.05, the 2023-2024 Grand Jury requires responses from each agency affected by the recommendations presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court.

Based on its investigation described herein, the 2023-2024 Orange County Grand Jury makes the following recommendations:

R1. Each Orange County city should have specific policies that define the rules of the road for use of E-bikes in their communities by December 1, 2024.

R2. Each Orange County city should have a mechanism in place to report accidents, injuries and deaths involving E-bikes by December 1, 2024.

R3. Each Orange County city should research and develop outreach and education programs regarding the safe operation of E-bikes for their residents by December 1, 2024.

RESPONSES
California Penal Code Section 933 requires the governing body of any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the governing body. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court). Additionally, in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official shall comment on the findings and recommendations pertaining to the matters under that elected official’s control within 60 days to the Presiding Judge with an information copy sent to the Board of Supervisors.

Furthermore, California Penal Code Section 933.05 specifies the manner in which such comment(s) are to be made as follows:
(a) As to each Grand Jury finding, the responding person or entity shall indicate one of the following:
(1) The respondent agrees with the finding.
(2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefore. 271
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(b) As to each Grand Jury recommendation, the responding person or entity shall report one of the following actions:
(1) The recommendation has been implemented, with a summary regarding the implemented action.
(2) The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six months from the date of publication of the Grand Jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation, therefore.
(c) If a finding or recommendation of the Grand Jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the Board of Supervisors shall respond if requested by the Grand Jury, but the response of the Board of Supervisors shall address only those budgetary or personnel matters over which it has some decision-making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department.

REQUIRED RESPONSES
Comments to the Presiding Judge of the Superior Court in compliance with Penal Code Section 933.05 are required from:

Findings – 90 Day Response Required
City Councils of:

Aliso Viejo F1, F2, F3
Anaheim F1, F2, F3
Brea F1, F2, F3
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Buena Park F1, F2, F3
Costa Mesa F1, F2, F3
Cypress F1, F2, F3
Dana Point F1, F2, F3
Fountain Valley F1, F2, F3
Fullerton F1, F2, F3
Garden Grove F1, F2, F3
Huntington Beach F1, F2, F3
Irvine F1, F2, F3
La Habra F1, F2, F3
La Palma F1, F2, F3
Laguna Beach F1, F2, F3
Laguna Hills F1, F2, F3
Laguna Niguel F1, F2, F3
Laguna Woods F1, F2, F3
Lake Forest F1, F2, F3
Los Alamitos F1, F2, F3
Mission Viejo F1, F2, F3
Newport Beach F1, F2, F3
Orange F1, F2, F3
Placentia F1, F2, F3
Rancho Santa Margarita F1, F2, F3
San Clemente F1, F2, F3
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San Juan Capistrano F1, F2, F3
Santa Ana F1, F2, F3
Seal Beach F1, F2, F3
Stanton F1, F2, F3
Tustin F1, F2, F3
Villa Park F1, F2, F3
Westminster F1, F2, F3
Yorba Linda F1, F2, F3
Recommendations – 90 Day Response Required
City Councils of:

Aliso Viejo R1, R2, R3
Anaheim R1, R2, R3
Brea R1, R2, R3
Buena Park R1, R2, R3
Costa Mesa R1, R2, R3
Cypress R1, R2, R3
Dana Point R1, R2, R3
Fountain Valley R1, R2, R3
Fullerton R1, R2, R3
Garden Grove R1, R2, R3
Huntington Beach R1, R2, R3
Irvine R1, R2, R3
La Habra R1, R2, R3
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La Palma R1, R2, R3
Laguna Beach R1, R2, R3
Laguna Hills R1, R2, R3
Laguna Niguel R1, R2, R3
Laguna Woods R1, R2, R3
Lake Forest R1, R2, R3
Los Alamitos R1, R2, R3
Mission Viejo R1, R2, R3
Newport Beach R1, R2, R3
Orange R1, R2, R3
Placentia R1, R2, R3
Rancho Santa Margarita R1, R2, R3
San Clemente R1, R2, R3
San Juan Capistrano R1, R2, R3
Santa Ana R1, R2, R3
Seal Beach R1, R2, R3
Stanton R1, R2, R3
Tustin R1, R2, R3
Villa Park R1, R2, R3
Westminster R1, R2, R3
Yorba Linda R1, R2, R3
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REFERENCES
2 On Your Side: “Orange County Sees Spike in E-bike Accidents” KCAL NEWS, Nov 3, 2021
https://www.bing.com/videos/search?q=ebike+injurys+in+orange+county+CA&docid=60 3525694912734209&mid=D1537F514A8F881DE2A9D1537F514A8F881DE2A9&view= detail&FORM=VIRE
Biesiada, Noah , “Orange County Cities Struggle to Handle Electronic Bike Regulations” Voice of OC , Dec 20, 2022 https://voiceofoc.org/2022/12/orange-county-cities-struggleto-handle-electric-bike-regulations/ Biesiada, Noah, “Orange County Cities Crack Down on E-bikes with Stricter Regulations” Voice of OC, Sep 28, 2023 https//Orange County Cities Crack Down on EBikes With Stricter Regulations (voiceofoc.org) Connelly, Laylan, “E-bike Lady educates new riders before hitting streets on electric bikes” Orange County Register, Jan 3, 2024, https//E-bike lady’ educates new riders before hitting streets on electric bikes – Orange County Register (ocregister.com) DMV Motorcycle Handbook, Two Wheel Vehicle Operation, Electric Bicycles https://www.dmv.ca.gov/portal/handbook/motorcycle-handbook/two-wheel-vehicleoperation/ “E-Scooter and E-bike-Injuries Soar-2022 Injuries Increased nearly 21%” Consumer Product Safety Commission, Oct 17, 2023
E-Scooter and E-Bike Injuries Soar: 2022 Injuries Increased Nearly 21% | CPSC.gov Fleming, Shawn “Electric Bike Sales grew by 145% in the US Last Year” World Economic Forum, Mar 12, 2021
Sales of electric bicycles are up all over the world | World Economic Forum (weforum.org)
Fry, Hannah, “On Orange County Beaches, proliferation of e-bikes brings battle to the boardwalk” Los Angeles Times, Jan 16, 2023
https://www.latimes.com/california/story/2023-01-16/mayhem-on-the-boardwalk-orangecounty-cities-tackle-e-bikes-with-varying-results Irvine Watchdog, ”Irvine Transportation Commission to propose E-bike safety ordinance” May 14,2023 https://irvinewatchdog.org/city-hall/transportationcommission/irvine-transportation-commission-to-propose-e-bike-safety-ordinance/ Kelly, Charles M., “Council approves introduction of e-bike ordinance City of Seal Beach” Sun News, May 10, 2023, https://www.sunnews.org/council-approvesintroduction-of-e-bike-ordinance/ 276
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OC Bike, E-Bikes
https://octa.net/getting-around/active/oc-bike/e-bikes/ Orange County Public Works, E-Bike Safety in the County of Orange https://ocip.ocpublicworks.com/e-bike
Orange County Sheriff’s Department, E-bike Safety The focus for National Bike Safety Month https://www.ocsheriff.gov/news/e-bike-safety-focus-national-bike-safety-month Orange County Sheriff’s Office Training Bulletin, Jan 4, 2023 https://www.ocsheriff.gov/sites/ocsd/files/2023-01/Bulletin%2023- 01%20Enforcement%20and%20Handling%20of%20Electric%20Bicycles%2C%20Motor cycles%20and%20Motorized%20Scooters_Redacted.pdf
Pimental, Joseph, “In Los Alamitos students will need a permit to ride e-bikes to and from school”, Spectrum News Jan 23,2023 https://spectrumnews1.com/ca/lawest/public-safety/2023/01/20/in-los-alamitos—students-will-need-a-permit-to-ride-ebikes-to—from-school 277
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GLOSSARY
CNBCA Central Newport Beach Community Association
CVC California Vehicle Code
E-bike Electric bicycle
HVE High Visibility Enforcement
OCGJ Orange County Grand Jury
OCSD Orange County Sheriff’s Department
OCTA Orange County Transportation Authority
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APPENDICES
APPENDIX 1
Current County of Orange E-Bike Laws - Unincorporated Areas 1 • All E-bikes are required to have a label that describes classification, top assisted speed, and motor wattage.
• Helmets are recommended for all E-bike users. If you are under 18, it’s required! • It is illegal to carry passengers on your E-bike unless your bike has an extra permanent seat or when using a child safety seat.
• E-bikes shall not be operated in excess of their designed speed or the speed limit, whichever is lower, on the road, and in no event in excess of 10 miles per hour on paved trails.
• E-bike shall not be operated in excess of 5 miles per hour on sidewalk. • Riding on the road against the flow of traffic is prohibited. 1 Orange County Public Works. 2024. "E-bike Safety in the County of Orange." Accessed May

22. 2024. https://www.ocgov.com .
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APPENDIX 2
California Vehicle Code Section 312.5 as of December 23, 2023 An electric bicycle is a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts. Three classes of electric bicycles have been established:
• Class 1: A low speed pedal-assisted electric bicycle equipped with a motor which provides assistance only when the rider is pedaling and ceases to provide assistance when a speed of 20 mph is reached.
• Class 2: A low speed throttle-assisted electric bicycle equipped with a motor used exclusively to propel the bicycle and NOT capable of providing assistance when a speed of 20 mph is reached.
• Class 3: A low speed pedal-assisted electric bicycle equipped with a speedometer, and a motor which provides assistance only when the rider is pedaling and ceases to provide assistance when a speed of 28 mph is reached.

The operator of a Class 3 electric bicycle:
• Must be 16 years old or older.
• Must wear a bicycle safety helmet.
• Must not transport passengers.
• May ride an electric bicycle in a bicycle lane if authorized by local authority or ordinance.

All electric bicycle classes are exempt from the motor vehicle financial responsibility, driver’s license, and license plate requirements (CVC § 24016). 280
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APPENDIX 3
California Assembly Bills
Listed below are some of the bills introduced into the State legislature, as published by LegiScan, that have a variety of proposed regulations regarding E-bikes. This is by no means a comprehensive list, and in the interest of brevity we do not include the text of each bill.

AB 458 10/08/2023 Chaptered-Regulation of insurance requirements for businesses renting micro mobility vehicles, a category which includes E-bikes.

AB 1773 04/01/2024 In committee-Where E-bikes are permitted to operate.

AB 1774 04/09/2024. This bill would prohibit a person from selling a product or device that can modify the speed capability of an electric bicycle such that it no longer meets the definition of an electric bicycle.

AB 2234 04/01/2024 In committee: The bill will require anyone over the age of 12 without a valid driver’s license to take an online e-bike safety training course and pass a written test to prove they understand traffic safety rules. Those without a valid driver’s license must have a state-issued ID to operate an E-bike.

SB 295 06/16/2023 In committee. Allows Public Agency authority to regulate E-bikes, et. al. on public property.

SB 381 10/13/2023 Chaptered-Comprehensive study of E-bikes.

SB 1271 04/11/2024. This bill would clarify that an electric bicycle is a bicycle equipped with fully operable pedals and an electric motor with continuous rated mechanical power of not more than 750 watts. The bill would, if an electric bicycle is capable of operating in multiple modes, require a manufacturer and distributor to include on the label the classification number of the highest classes of which it is capable of operating. Also requires lab accreditation of micro mobility batteries. 281
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APPENDIX 4
County of Orange Ordinance No. 18-002

AN ORDINANCE OF THE COUNTY OF ORANGE, CALIFORNIA AMENDING SECTION 2-5-29(n) OF THE CODIFIED ORDINANCES OF THE COUNTY OF ORANGE, REGARDING PROHIBITED MOTORIZED WHEELED CONVEYANCES.

The Board of Supervisors of the County of Orange ordains as follows:

SECTION 1. Section 2-5-29(n) of the Codified Ordinances of the County of Orange is hereby amended to read as follows:

Sec. 2-5-29.- Vehicle regulation.
(n) Motorized Wheeled Conveyance prohibited. No person shall operate or drive any electric or combustible motorized skateboard, scooter, dirt bike, mini bike, mini motor bike, mini motorcycle, go-kart, go-ped, all-terrain vehicle, quad runner, dune buggy or any similar electric or combustible motorized conveyance in any park, beach or recreational area, with the exception of Class 1 and Class 2 electric bicycles, as defined by the California Vehicle Code, on those regional paved, off-road bikeways designated for such use by the Director of OC Parks, with the approval of the Board of Supervisors.
282
California Penal Code Sections §933 and §933 .05
(Note: To reduce grand jury requests for add itional response information, the grand Jury has bolded those words in §933.05 which should be appropriately included in a response:)
933. (a) Each grand jury slwll sl1brn.1t to the presiding judge of the superior court a final report of its_ findings ancl - ·--recommendat_ions that pe1tain to _county govenunent matters during the fiscal or ca_lenc!ar year. Final repo1ts on any appropriate subject may be submitted to the presiding judge of the superior cornt at any time during the term of se1vice of a grand jury. A final repo1t may be_ submitted for comnient to responsible officers, agencies, or depa1tments, including the county board ofsupe1visors, when applicable, upon finding of the presiding judge that the report is in ·.:
. _Q.QQ1p_li�ns:§:l'61htllistttlt,.:Fot!l:� !hlYJ;�J'W, the_ end of the term, the foreperson and his or her designees shall, U)J'on _ �-.
. reas_onable notice, 1;,e available to clarify the recommendations of the rep01t. .. :.::(b).:Q@_QQpy: Qf\l.Mhfini.l1�pJlJt;'togeJl:let:w.ithJhe responses thereto, found to be in_ compliance with this title shall be . ' pla,Qed o•Lfile_With.tlie cleI'k'bf. tne·courLaild remain on file in the office of the clerk: The clerk shall immediately . .fQrwa:n! atr;1e. e_ojiy •o.f:the.rnp_o1tand.Jhetespol)ses to the State Mchivist who shall retain that repo1t and all responses . in perpetuity. • ...
. (,) :.No_ lati;i: -th.an:-90. day_s •afkLthe:grandj\rry,sµbmits a final repmi on the operations of any public agency subject to iis .
• .. :.::m1Je.wb;ig artthorit)'; tht.goy�rrtirg ;body .o.f:th.e. public agency shall comment to the ·presiding judge of the superior court : • :_ :�·::� :·otiJhe_::flac!i!lgtAnc!;re,Qm,:n,.t1datl9.1is_ p�rtaining . .to matters under the control of the governing body, and every elected county office_r:or age(wy head for whJt.h-the grand jury has responsibility pursuant to Section 914. 1 shall co1nment ': .wi!hlI1 60.·days ,to the.-presidh1gjudge of:the:superior court, with an information copy sent to the board of supe1visors, • 01:i-the;finding� a11d recomme.MationsJert�itiJngJo. 1natters under the control of that county officer or agency head and • _ _ . !lny agenG)l:0t:age.n.ci�s:WhLch:thatoff\cer or agency head supervises or controls. In any city and county, the mayor : : _s.haU :al�o colnment.9n:tlwJJt1dirigs .a11.d re_¢Qtnmendations. All of these comments and reports shall fo1ihwith be sllbmitt.ed ·\q the presidi11gjtldge_:0HhErnuperiorqoµrt who impaneled the grandjmy. A copy of all responses to grand .. jury re.ports shall b.e .placed on file.:Wi.thJhe.de.r.k.-ofthe public agency and the office of the county clerk, or the mayor •
•
• '.whe1rnpp!icable, ahd s_liiiJl rM1ain 011 file-ill those. offices. One copy shall be placed on file with the applicable grand • jLiryJjnal report by, and.in th,. contriiLo.f.the ctirrently impaneled grand jury, where it shall be maintained for a minimum of five years.
(d) As used in this section "agency" includes a department. 933.0:L (a) For p41'.pose_s'9f-su.lid[yis.iog (h) ofSection 9]]; as to each grand jury finding, the responding person or entity shall indicate one of the following:
(I) The respondent _agrees with the fit1ding .
. _::c.(2.) ,The:te.spondent:disagrees ,vholly o,r:partial!ywith the finding, in which case the response shall specify the portion , _ __ _ ·of the findingthat is· disputed and shall include an explanation of the reasons therefor. _ _
- :_, � .{b} _Fg!· purpose_s oJ.suJ,'1.i'lision (b) of��stion:933, as1Q_ta,.hgra11djury recom111,e.nc\ati9n, the rnipondlng persgn or entity shall report one of the following actions:
_. _: �: .. ::::·:JD c'.\]WJ�g°-@neni'!JJ.tfo11:lrn� b��IJ implemented, with a summaiy regarding the implemented action . . _ ",c; .--.:.(2) ,Th,ie9Qmm,Go.datiohb/l.s. no_t,ye(b.efn:i111plemented, but will be implemented in the future, with a timeframe for implementation.
_:::(1J· [email protected]:uires.furtlie!' analysis; with an explanation and the scope and parameters of an analysis • · -: :or.sti:1dy; and a timdia:tn_e :fonhe: tr1Ettter to be prepared for discussion by the officer or head_ of the agency or - - ·
:::: 9CJ?1Ui\nei:tib:eing.investigate_d .or.re;:i�wed; inGludlng the governing body of the public agency when applicable. This - •• .t.imefr:am.e.:sl:@ltnot exce.�d six months from the date of publication of the grand jury report . . -:(4)" 'Fhe·recommendati.onwill·n:<It .be Jrop:l.emented because it is not warranted or is not reasonable, with an explanation therefor.
: . • • :(Q).:-.Ho.we.v�r, i_f.:a-fhiding:or.rflcommendation·of-the grand jmy addresses budgetary or personnel matters of a county .. ·: : -c: agencycor,d_epartm�ntheaded.:by.an:ch,cteq offker; both the agency or department head and the board of supervisors - : .. ,hall:te�pqt)di(r�q\lllS.ted.:b.)(thi\:grandjpry_;b\lt the response of the board of supe1visors shall address 011,ly those • b_r,(lgetary or p_erso.Mel !11'1tters ovetwhkh it has:s_ome decision makirrg authority. The response of the efected agency or depilrtJi:lent.beJd.slialL-a.d.dressa!Laspects of the findings or recommendations affecting his or her agectcy or department. • • • , • •
• (d} }, grnnd;jury may.request-,ac.subjectpers·on or.entity to come before the grand jury for the purpose of reading and ::diJCLts_sipgtli� findLngs:of the,graMJury_,report that relates to that person or entity it1 order to verify the accuracy of the findings prior to their release.
(e) , [)urlng·an inve,tigation, [he grand jury shall m.eet with the subject of that investigation regarding the investigation, Uliless the COLUt, either oµ· its own detenuJnation or upon request of the foreperson of the grand ju,y, determines that such a meeting would be detrimental.
• (f) •• A grand jury-shall ·provide to the· affected age1wy_f! copy of the portion of the grand jury rep mt relating to that person or • entlty two worldng ·days pi·ioO◊ its piib!ic release and after the approval of the presiding judge. No officer, agency, ;�-- , , , dep_artment, or govemhig body of a pub-lie agency shall diselose any contentll·pf• .tbe·'refJ0�t prlor{o the pMblic.release of
ATTACHMENT 2
283
ATTACHMENT 3
RESOLUTION NO. 24-124

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING RESPONSE

TO FINDINGS AND RECOMMENDATIONS IN THE REPORT
OF THE ORANGE COUNTY GRAND JURY - “E-BIKES
FRIEND OR FOE”
WHEREAS, on June 13, 2024, the City of San Clemente was sent a copy of the 2023- 2024 Orange County Grand Jury report, “E-bikes Friend or Foe”; and WHEREAS, the focus of the report is the increasing use of electric bicycles (E-bikes) and the impacts on the public due to the higher risks of accidents and injuries when compared to the use of conventional bicycles and the challenges cities face in their regulation; and
WHEREAS, California Penal Code Section 933 requires the City to provide a response to each of the findings and recommendations in the report; and WHEREAS, California Penal Code Section 933.05 specifies the manner in which the responses and comments on the findings and recommendations are to be made; and WHEREAS, the City values the opportunity to respond to the report, share our perspective, and provide firsthand knowledge to each of the issues requested by the Grand Jury; and
WHEREAS, the responses must be submitted to the Presiding Judge of the Superior Court by September 19, 2024; and
WHEREAS, the City Council has reviewed the report.

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

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

Section 2. That the Mayor is authorized and directed to respond to the findings and recommendations noted in the report by submitting a letter to the Presiding Judge of the Superior Court by September 19, 2024 in substantially the same form as attached to this Resolution as Exhibit A, which is incorporated fully herein by this reference.

Section 3. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this day of , 2024.
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Resolution No. 24-124 Page 2
ATTEST:

City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-124 was adopted at a regular meeting of the City Council of the City of San Clemente held on the day
of , , by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this day of , .

CITY CLERK of the City of
San Clemente, California
Approved as to form:

Elizabeth A. Mitchell, City Attorney
285
Resolution No. 24-124

OFFICE OF THE MAYOR

AND CITY COUNCIL
Victor Cabral
Mayor
Mark Enmeier
Mayor Pro Tem
Chris Duncan
Rick Loeffler
Steve Knoblock

CITY MANAGER
Andy Hall
910 Calle Negocio
San Clemente, CA 92673
Phone: (949) 361-8200
CELEBRATING 90 YEARS OF INCORPORATION
August 20, 2024
The Honorable Michael J. Verrengia,
Presiding Judge of the Superior Court
Orange County Grand Jury
700 Civic Center Drive West
Santa Ana, CA 92701
Subject: Report of the Orange County Grand Jury - “E-bikes Friend or Foe” Dear Presiding Judge Verrengia,
The City of San Clemente (City) appreciates the time and effort the Grand Jury spent on the development of their report, “E-bikes Friend or Foe”.

The City Council has reviewed the report and authorized the attached response to the findings and recommendations noted in the report. The City values the opportunity to respond to the report, share our perspective, and provide firsthand knowledge to each of the issues requested by the Grand Jury.

If the City of San Clemente can provide additional information or clarification of our response, please do not hesitate to contact City Manager Andy Hall at [email protected].

Sincerely,
Victor Cabral, Mayor
City of San Clemente
Enclosure: City of San Clemente’s Response to Findings and Recommendations
“The Spanish Village
by the Sea”
cc: City of San Clemente Council Members
Andy Hall, City Manager

EXHIBIT A
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Resolution No. 24-124
City of San Clemente Responses to Finding & Recommendations: 2022-2023 Orange County Grand Jury report, “E-bikes Friend or Foe”:

Findings and Responses
F1 The majority of Orange County’s 34 cities do not have ordinances or policies in place, which makes it difficult to address the safe operation and regulation of E-bikes leading to confusion.

City’s Response:

Agree; however, the City of San Clemente has not conducted an independent survey to confirm this finding.

F2 Due to the increasing incidence of E-bike injuries and deaths, there is a need for consistent and accurate tracking by law enforcement and first responders, which does not exist now.

City’s Response:

Agree.

F3 Training and education on E-bike use and safety varies from city to city causing confusion amongst bike riders
City’s Response:

Agree; however, the City of San Clemente has not conducted an independent survey to confirm this finding.

Recommendations and Response
R1 Each Orange County city should have specific policies that define the rules of the road for use of E-bikes in their communities by December 1, 2024. (F1) City’s Response:

The Recommendation has been implemented in specific areas of the City, such as Beaches and Trails, and further implementation is contemplated through future amendments to the San Clemente Municipal Code to address areas in the City’s right-of-way by December 1, 2024.

R2 Each Orange County city should have a mechanism in place to report accidents, injuries and deaths involving E-bikes by December 1, 2024. (F2)
City’s Response:

This Recommendation requires implementation by the City’s contracted public safety personnel, specifically the Orange County Sheriff’s Department and the Orange County Fire Authority because those agencies are responsible for traffic enforcement and medical responses withing the City of San Clemente, and subsequent reporting of such activities.

The City of San Clemente will support these agencies in implementing this recommendation to the extent possible by December 1, 2024. 287
Resolution No. 24-124
R3 Each Orange County city should research and develop outreach and education programs regarding the safe operation of E-bikes for their residents by December 1, 2024. (F3) City’s Response:

The Recommendation has been implemented. The City, along with the Orange County Sheriff’s Department staff conducts bicycle/E-bike training at various events throughout the year, including a Bicycle Rodeo and trainings at local schools. 288