San Clemente City Council
November 19, 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
5:00 p.m. - Closed Session
6:00 p.m. - Business Meeting

CITY OF SAN CLEMENTE
Tuesday, November 19, 2024
City Council
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 Regular Meeting Agenda November 19, 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 (5:00 P.M.)
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 1
Case Name: Harbor View Estates Homeowners Association v. City of San Clemente, Orange County Superior Court Case No.
30-2024-01371169-CU-WM-CXC
B. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION Whether to initiate litigation pursuant to Government Code section 54956.9(d)(4) Number of Cases: 1
BUSINESS MEETING (6:00 P.M.)

CALL TO ORDER
INVOCATION – Assistant Pastor, Steve Pascoe, Calvary Chapel San Clemente

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations

2. Council Member Reports

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

2 City Council Regular Meeting Agenda November 19, 2024 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. CONTINUANCE OF NO ACTION ON CONDITIONAL PERMIT 1021 RELATED TO THE PROPERTY LOCATED AT 616 DEL DIOS, ASSESSOR’S PARCEL NUMBER 690-552-05
Continued Public Hearing to consider whether to make changes to or revoke approved applications related to a telecommunications facility located at 616 Del Dios, including a Conditional Permit issued by the County of Orange in 1962 (as thereafter modified and approved by the City), Voluntary Compliance Agreement between American Tower Corporation and the City dated on or about July 6, 2023, and Wireless Communications Facilities Application Screening Form WMS 23-231 filed by Dish Wireless, LLC, a Colorado limited liability company, and may consider initiating litigation related to the same. The City Council will also consider whether any action that it takes that qualifies as a project is exempt from the California Environmental Quality Act, including, but not limited to, pursuant to State CEQA Guidelines Sections 15301, 15302, 15303, 15304, 15305 and 15321.

Staff Recommendation
Continue the public hearing indefinitely and extend the abeyance of the revocation of Conditional Permit 1021 indefinitely.

3 City Council Regular Meeting Agenda November 19, 2024 8B. INTRODUCTION (FIRST READING) OF AN ORDINANCE APPROVING ZONING AMENDMENT ZA24-193 TO TITLE 17 (ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE TO ADD CHAPTER 17.26 OBJECTIVE

DESIGN STANDARDS FOR MULTI-FAMILY RESIDENTIAL AND

RESIDENTIAL MIXED-USE DEVELOPMENT, AMENDING SECTION

17.32.030 RESIDENTIAL ZONE USES, AMENDING SECTION 17.36.020 COMMERCIAL ZONE USES, AMENDING SECTION 17.40.030 MIXED-USE ZONE USES, AND AMENDING SECTION 17.56.090 HOUSING OVERLAY TO

ADD CERTAIN SITES PREVIOUSLY IDENTIFIED IN THE HOUSING

ELEMENT, IN ACCORDANCE WITH CALIFORNIA HOUSING LAWS AND THE CITY OF SAN CLEMENTE’S CERTIFIED HOUSING ELEMENT; AND

FINDING THAT THE ZONING AMENDMENT IS EXEMPT FROM CEQA PER

THE COMMUNITY PLAN EXEMPTION PURSUANT TO PUBLIC RESOURCES CODE SECTION 21083.3 AND CEQA GUIDELINES SECTIONS 15183, 15060(C) AND 15061(B)(3)
Public Hearing for the City Council to consider an Ordinance approving Zoning Amendment ZA24-193 to Title 17 (Zoning) of the San Clemente Municipal Code to add Chapter 17.26 Objective Design Standards for Multi-Family Residential and Residential Mixed-Use Development, amending Section 17.32.030 Residential Zone Uses, Amending Section

17.36.020 Commercial Zone Uses, Amending Section 17.40.030 Mixed-Use Zone Uses, and Amending Section 17.56.090 Housing Overlay to add certain sites previously identified in the Housing Element, in accordance with California housing laws and the City of San Clemente’s certified Housing Element; and finding that the zoning amendment is exempt from CEQA per the Community Plan exemption pursuant to PRC Sec. 21083.3 and Guidelines Sections 15183, 15060(C) and 15061(B)(3).

Staff Recommendation

1. Determine that the zoning amendment is exempt from the California Environmental Quality Act (CEQA) per the Community Plan exemption pursuant to the Public Resources Code (PRC) Section 21083.3 and CEQA Guidelines Sections 15183, 15060(C) and 15061(B)(3).

2. Introduce and conduct the first reading of Ordinance No. 1784 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING ZONING AMENDMENT ZA24-193 TO TITLE 17 (ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE TO ADD
CHAPTER 17.26 OBJECTIVE DESIGN STANDARDS FOR MULTI-FAMILY

RESIDENTIAL AND RESIDENTIAL MIXED-USE DEVELOPMENT,
AMENDING SECTION 17.32.030 RESIDENTIAL ZONE USES, AMENDING SECTION 17.36.020 COMMERCIAL ZONE USES, AMENDING SECTION

17.40.030 MIXED-USE ZONE USES, AND AMENDING SECTION 17.56.090

HOUSING OVERLAY TO ADD CERTAIN SITES PREVIOUSLY IDENTIFIED

IN THE HOUSING ELEMENT, IN ACCORDANCE WITH CALIFORNIA

4 City Council Regular Meeting Agenda November 19, 2024 HOUSING LAWS AND THE CITY OF SAN CLEMENTE’S CERTIFIED
HOUSING ELEMENT; AND FINDING THAT THE ZONING AMENDMENT IS

EXEMPT FROM CEQA PER THE COMMUNITY PLAN EXEMPTION
PURSUANT TO PUBLIC RESOURCES CODE SECTION 21083.3 AND

CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTIONS 15183, 15060(C) AND 15061(B)(3).
8C. PROPOSITION 218 HEARING AND CONSIDERATION OF A RESOLUTION

APPROVING THE COST-OF-SERVICE STUDY, ADOPTING AND SETTING

SOLID WASTE COLLECTION RATES, APPROVING AND AWARDING A

SECOND AMENDED AND RESTATED AGREEMENT TO CR&R

INCORPORATED FOR SOLID WASTE HANDLING SERVICES, AND FINDING

THE CONTRACT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Public Hearing to consider adopting revised rates for collection, handling, and disposal of solid waste, including garbage, green waste, organics and recycling within the City (collectively, "solid waste services'').

Staff Recommendation
Conduct the Proposition 218 Hearing, and if there is no majority protest, adopt Resolution No. 24-167, which will:

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

2. Approve and adopt the Cost-of-Service Study (Attachment 3).

3. Set and adopt the Solid Waste and Recycling Rates as proposed (Exhibit A and Attachment A to Attachment 1).

4. If the rates are approved, award and authorize the City Manager to execute, Contract No. C24-65, a Second Amended and Restated Agreement, by and between the City of San Clemente and CR&R Incorporated, providing for Solid Waste Handling Services (Attachment 2).

5 City Council Regular Meeting Agenda November 19, 2024 8D. CONSIDERATION OF A RESOLUTION AMENDING THE EXISTING DEL MAR/DOWNTOWN AREA UNDERGROUND UTILITY DISTRICT 02-01,
CANCELING DISTRICT 02-02 AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
Public Hearing to consider the Del Mar Phase 1 and Phase 2 Underground Utility Districts No. 02-01 and 02-02 were established to convert overhead utilities within the public right-of-way to underground facilities within the area generally bounded by Avenida Cabrillo, Avenida Del Mar, Avenida Granada, the Community Center and El Camino Real.

The utility undergrounding is being designed by and will be conducted by San Diego Gas & Electric (SDG&E) under California Public Utilities Commission Rule 20A. At the public hearing, the City Council will consider removing several blocks from the district including Avenida Granada, the alley and easement north-northwest of Avenida Del Mar, and the alley east of Avenida Granada to address funding discrepancies connected with undergrounding of existing utilities in the original district area and allow the project to move forward. The City Council will also consider whether and to what extent the cost of installation of potential upgrades to customer service meter panels to accept underground service should be included in the undergrounding project.

Staff Recommendation

1. Find the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 2 (Replacement or Reconstruction, 14 CCR Section 15302(d)) of the State CEQA Guidelines.

2. Approve the amendment to reduce the Underground Utility District (UDD) 02-01 to the area as shown in Attachment 4.

3. Remove the Underground Utility District (UDD) 02-01 funding for upgrading private utility panels unless additional savings can be found during final construction.

4. Formally cancel the Underground Utility District (UDD) 02-02 for future consideration of undergrounding of overhead utility in the Avenida Granada utility easement.

6 City Council Regular Meeting Agenda November 19, 2024 8E. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION NO. 24-169,

APPROVING A REVISED ADMINISTRATIVE FEE FOR VEHICLE REMOVAL, IMPOUND, STORAGE OR RELEASE BY THE ORANGE COUNTY SHERIFF’S

DEPARTMENT FOR THE TRAFFIC VIOLATOR APPREHENSION PROGRAM (TVAP)
Public Hearing to consider amending the City’s Traffic Violator Apprehension Program vehicle impound rates with an annual adjustment.

Staff Recommendation

1. Open the public hearing, hear all public input and close the public hearing.

2. Following the public hearing, adopt Resolution No. 24-169 entitled A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, APPROVING A REVISED ADMINISTRATIVE

FEE FOR VEHICLE REMOVAL, IMPOUND, STORAGE OR RELEASE BY

THE ORANGE COUNTY SHERIFF'S DEPARTMENT FOR THE TRAFFIC

VIOLATOR APPREHENSION PROGRAM (TVAP) IN THE CITY OF SAN CLEMENTE.

3. Repeal Resolution No. 21-11.
8F. PUBLIC HEARING REGARDING THE FAILURE OF BROADMOOR SAN

CLEMENTE COMMUNITY ASSOCIATION TO ENFORCE CERTAIN

COVENANTS, CONDITIONS AND RESTRICTIONS (CC&RS)
Public Hearing to review the Covenants, Conditions and Restriction (CC&R) violations and determine whether the City of San Clemente shall assume enforcement duties as permitted under Article XII of the Broadmoor Homeowners Association Covenants, Conditions and Restriction (CC&Rs). Should the City take on enforcement responsibilities, the reasonable costs incurred, including reasonable attorney fees, may be assessed to the Homeowners Association, potentially leading to a uniform assessment against each lot within Broadmoor San Clemente.

Staff Recommendation

1. Open the public hearing, receive public testimony and comment, close the public hearing.

2. Determine that the Broadmoor Community Association has failed to enforce its covenants, conditions and restrictions (CC&Rs) and has failed to cure such non-performance and adopt Resolution No. 24-173 entitled A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

7 City Council Regular Meeting Agenda November 19, 2024

CLEMENTE, CALIFORNIA, DETERMINING THAT THE BROADMOOR SAN

CLEMENTE COMMUNITY ASSOCIATION HAS FAILED IN ITS
ENFORCEMENT DUTIES UNDER THE ASSOCIATION’S COVENANTS,

CONDITIONS, AND RESTRICTIONS AND FAILED TO CURE SUCH
FAILURE, AND ASSUMING AND ASSIGNING THE CITY’S

ENFORCEMENT AUTHORITY OF THE HEIGHT LIMITS FOR TREES ON PROPERTIES LOCATED BETWEEN 201 AND 327 CALLE DELICADA,
SAN CLEMENTE, CA 92672 TO THE OWNERS OF PROPERTIES
LOCATED BETWEEN 201 AND 337 CALLE FELICIDAD, SAN CLEMENTE, CA 92672.

9. Unfinished Business
None.

10. New Business
10A. APPOINTMENT OF THE CITY CLERK AND CITY TREASURER, AND

INTRODUCTION (FIRST READING) OF ORDINANCES MAKING THE CITY

TREASURER AND CITY CLERK POSITIONS APPOINTED BY THE CITY

MANAGER
Staff Recommendation

1. Adopt Resolution 24-170 appointing Laura Campagnolo to the office of City Clerk in accordance to Chapter 2.10 of the Municipal Code of the City of San Clemente.

2. Introduce and conduct the first reading of Ordinance No. 1783 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING CHAPTER 2.10 OF THE MUNICIPAL CODE OF THE CITY OF SAN CLEMENTE TO MODIFY SECTIONS 2.10.010 AND

2.08.090, VESTING AUTHORITY IN THE CITY MANAGER TO APPOINT THE CITY CLERK, and direct the City Manager to make such future appointments going forward.

3. Adopt Resolution 24-171 appointing Charlie Smith to the office of City Treasurer in accordance to Chapter 2.14 of the Municipal Code of the City of San Clemente.

8 City Council Regular Meeting Agenda November 19, 2024 10B. INTRODUCTION (FIRST READING) OF AN ORDINANCE, AMENDING MUNICIPAL CODE SECTIONS 8.48.070, 8.48.090, 12.34.020 AND 12.34.040

RELATED TO AMPLIFIED SOUND AND SPECIAL EVENT PERMITS, AND

FINDING THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Introduce and conduct a first reading of Ordinance No. 1785 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING MUNICIPAL CODE SECTIONS 8.48.070, 8.48.090,

12.34.020 AND 12.34.040 RELATING TO REQUIRING A SPECIAL EVENT

PERMIT TO ALLOW AMPLIFIED SOUND IN PUBLIC SPACES AND MAKING

RELATED MINOR CODE CLARIFICATIONS RELATING TO SPECIAL EVENT

PERMITS AND NOISE REQUIREMENTS, AND FINDING THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.
10C. CONSIDERATION OF ACCEPTING A DONATION FOR THE CONSTRUCTION OF A PUMP TRACK AT RICHARD T. STEED MEMORIAL PARK, AMENDING THE FY 2024-25 CAPITAL IMPROVEMENT PROGRAM, AND OPTIONS FOR

PROJECT SCOPE, AND MAKING FINDINGS UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Staff Recommendation

1. City Council to provide direction to staff concerning the size and development of a pump track at Richard T. Steed Memorial Park.

2. Adopt Resolution No. 24-172, which will:
a. Accept a donation of $200,000 from Shimano Inc., a donation of $100,000 from the Friends of San Clemente Beaches, Parks & Recreation Foundation, and a donation of $20,000 from the Orange County Mountain Bike Association to revenue Account No. 031-000- 36790.
b. Approve, and authorize the City Manager to execute, Contract No. C24- 66, a Funding Agreement, by and between the City of San Clemente, Shimano Inc., the Friends of San Clemente Beaches, Parks & Recreation Foundation, and Orange County Mountain Bike Association, that provides for Shimano's signature blue stripe to be painted along the edge of the asphalt track, permission for Shimano to feature the project as part of its community engagement marketing series, and recognition of Shimano, Orange County Mountain Bike Association and the Friends of San Clemente Beaches Parks and Recreation with a plaque at the site. c. Approve an amendment to the FY 2024-25 Capital Improvement Program to include a project for the design and construction of a pump track

9 City Council Regular Meeting Agenda November 19, 2024 recreation facility at Richard T. Steed Memorial Park at 18,000 square feet.
d. Determine that the project is consistent with the Steed Park Master Plan and is consistent with the environmental findings established in the IS/MND previously certified by the City Council.
e. Approve a supplemental appropriation of $100,000 from the Parks Acquisition Fund and $200,000 from CIP Project No. 15108, “Vista Hermosa Sports Park (VHSP) Meadows Development”, to Account No. 031-862-45300-000 (Parks Acquisition & Development) for the Richard T.

Steed Memorial Park Pump Track.
f. Direct staff to pursue additional funding sources through the Land and Water Conservation Fund for its next immediate funding cycle beginning in 2025.
10D. CONSIDERATION OF A RESOLUTION AWARDING A THREE-YEAR

MAINTENANCE SERVICES AGREEMENT WITH TWO OPTIONAL ONE-YEAR EXTENSIONS TO GREAT SCOTT TREE SERVICE, INC., AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 24-174, which will:

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

2. Award a Three-Year Maintenance Services Agreement, with two optional one-year renewals exercisable under the City Manager's discretion, to Great Scott Tree Service, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C24- 67, by and between the City of San Clemente and Great Scott Tree Service, Inc., providing for tree trimming services, in the amount of $310,619 for year one, $319,937.57 for year two and $329,535.70 for year three with up to an annual $60,000 per year supplement for emergency services.

10 City Council Regular Meeting Agenda November 19, 2024 10E. CONSIDERATION OF REVISING POLICY AND PROCEDURE 1201-8

RELATING TO LEGISLATIVE BODY REIMBURSEMENT
Staff Recommendation
Repeal Policy and Procedure 1208-1 Legislative Body Reimbursement (dated April 18, 2023) and adopt a new Policy and Procedure 1201-8 Legislative Body Reimbursement.
10F. ESTABLISHMENT OF CITY COUNCIL MEETING SCHEDULE FOR 2025 AND EARLY 2026 AND CONSIDERATION OF ADOPTING A RESOLUTION

MODIFYING THE START TIME OF CITY COUNCIL MEETINGS
Staff Recommendation

1. Cancel the City Council meetings of July 1, 2025 and July 15, 2025 as a regular legislative break.

2. Reschedule the January 21, 2025 City Council meeting to January 14, 2025.

3. Cancel the December 2, 2025 and December 16, 2025 City Council meetings and hold one meeting on December 9, 2025 to allow for the Mayor to serve a full year and participate in the City tree lighting ceremony in 2025.

4. Cancel the City Council meeting of January 6, 2026.

5. Adopt Resolution No. 24-175 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

ESTABLISHING THE DATE, TIME AND LOCATION OF CITY COUNCIL MEETINGS AND RESCINDING RESOLUTION NO. 22-48.

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 CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF OCTOBER 15, 2024.

11 City Council Regular Meeting Agenda November 19, 2024 B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
(1) INVESTMENT ADVISORY COMMITTEE SPECIAL MEETING MINUTES OF AUGUST 5, 2024.
(2) BEACHES, PARKS AND RECREATION COMMISSION REGULAR
MEETING MINUTES OF AUGUST 13, 2024.
(3) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF
SEPTEMBER 24, 2024.
(4) PLANNING COMMISSION REGULAR MEETING MINUTES OF
OCTOBER 2, 2024.
(5) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF
OCTOBER 17, 2024.
(6) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES
OF OCTOBER 23, 2024.

C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
3124 THROUGH 3129 AND WARRANT NOS.
599788 THROUGH 599920, PAID ON
10-4-24, IN THE AMOUNT OF $1,704,844.30
(2) APPROVE HANDWRITE NOS. 600096 THROUGH
600097, AND WIRE TRANSFER NOS.
3130 THROUGH 3131 AND WARRANT NOS.
599921 THROUGH 600095, PAID ON
10-11-24, IN THE AMOUNT OF $3,927,779.27
(3) APPROVE WIRE TRANSFER NOS.
3132 THROUGH 3136 AND WARRANT NOS.
600098 THROUGH 600309, PAID ON
10-18-24, IN THE AMOUNT OF $4,747,973.56
(4) APPROVE WARRANT NOS.
600310 THROUGH 600536, PAID ON
10-25-24, IN THE AMOUNT OF $1,784,011.75
(5) APPROVE WIRE TRANSFER NOS.
3137 THROUGH 3142 AND WARRANT NOS.
600537 THROUGH 600639, PAID ON
11-1-24, IN THE AMOUNT OF $1,520,359.93

12 City Council Regular Meeting Agenda November 19, 2024 (6) APPROVE WIRE TRANSFER NOS.
3143 THROUGH 3144 AND WARRANT NOS.
600640 THROUGH 600822, PAID ON
11-8-24, IN THE AMOUNT OF $3,482,887.46
TOTAL WARRANT REGISTER $17,167,856.27
Payroll Register
WARRANT NOS. 953 THROUGH 954, AND
AUTOMATIC DEPOSIT ADVISES 97738
THROUGH 98078, FOR THE PERIOD
9-16-24 THROUGH 9-29-24, PAID
ON 10-4-24, IN THE AMOUNT OF $519,285.96
WARRANT NOS. 955 THROUGH 956, AND
AUTOMATIC DEPOSIT ADVISES 98079
THROUGH 98411, FOR THE PERIOD
9-30-24 THROUGH 10-13-24, PAID
ON 10-18-24, IN THE AMOUNT OF $523,053.60
WARRANT NO. 957, AND AUTOMATIC
DEPOSIT ADVISES 98412 THROUGH
98736, FOR THE PERIOD 10-14-24
THROUGH 10-27-24, PAID ON 11-1-24,
IN THE AMOUNT OF $522,227.75
TOTAL PAYROLL REGISTER $1,564,567.31
11D. CONSIDERATION OF APPROVING PARKING MODIFICATIONS TO CREATE

DESIGNATED PASSENGER AND SCHOOL BUS LOADING ZONES FOR LAS

PALMAS ELEMENTARY SCHOOL AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
Planning Commission and Staff Recommendation
Adopt Resolution No. 24-176, which will:

1. Find 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.

2. Approve the parking modifications as illustrated in Attachment 2 as follows:
a. Convert the current temporary passenger loading zone into a permanent one on the south side of Avenida Aragon up to 134 feet in length. b. Convert the current 130-ft 1-hour parking zone into a school bus loading

13 City Council Regular Meeting Agenda November 19, 2024 zone marked by yellow curb on the west side of Calle Puente. 11E. CONSIDERATION OF A RESOLUTION TO APPROVE AN AFFORDABLE

HOUSING PROJECT, THAT INCLUDES AN AFFORDABLE HOUSING

AGREEMENT WITH FRIENDSHIP SHELTER INC, AN ANNUAL MONITORING

FEE, AND ZONING CONCESSIONS AND WAIVERS PURSUANT TO STATE

DENSITY BONUS LAW, AND TO DETERMINE THE PROJECT EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 24-177, which will:

1. Determine that the affordable housing project and agreement are exempt from the California Environmental Quality Act (CEQA) under California Public Resources Code (PRC) Section 21080.50 and direct staff to file a notice of exemption.

2. Approve the Project, including the three concessions/waivers requested under the State Density Bonus Law.

3. Approve, and authorize the City Manager to execute, Contract No. C24- 68, the Affordable Housing Agreement, by and between the City of San Clemente and Friendship Shelter Inc., included as Exhibit A of Resolution No. 24-177.
11F. COMMUNITY FACILITIES DISTRICT NO. 2006-01 (MARBLEHEAD COASTAL)

LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY ACT
REPORT (SB 165) FOR FISCAL YEAR ENDED JUNE 30, 2024
Staff Recommendation
Adopt Resolution No. 24-178 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING AND

RECEIVING THE CITY OF SAN CLEMENTE COMMUNITY FACILITIES DISTRICT NO. 2006-1 LOCAL AGENCY SPECIAL TAX AND BOND

ACCOUNTABILITY ACT COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.
11G. CONSIDERATION OF A RESOLUTION ADOPTING FISCAL YEAR 2023-2024 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE Staff Recommendation
Adopt Resolution No. 24-179 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, TO ADOPT THE FISCAL YEAR 2023-2024 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE.

14 City Council Regular Meeting Agenda November 19, 2024 11H. CONSIDERATION OF A RESOLUTION AWARDING SPORTS PARTNERSHIP

STATUS FOR THE SPRING PRIMARY SEASON SPORTS
Beaches, Parks and Recreation Commission and Staff Recommendation

1. Adopt Resolution No. 24-180 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AWARDING

RECREATIONAL YOUTH SPORTS PARTNERSHIP STATUS TO SAN
CLEMENTE LITTLE LEAGUE AND SAN CLEMENTE GIRLS SOFTBALL.

2. Approve, and authorize the Beaches, Parks and Recreation Director to execute, Contract No. C24-69, Recreation Sports Partnership Agreement, by and between the City of San Clemente and San Clemente Little League, Tier I Sports Partnership Status, for a three-year term.

3. Approve, and authorize the Beaches, Parks and Recreation Director to execute, Contract No. C24-70, Recreation Sports Partnership Agreement, by and between the City of San Clemente and San Clemente Girls Softball, Tier I Sports Partnership Status, for a three-year term.
11I. CONTRACT AWARD - LIFEGUARD TOWERS REPLACEMENT (2024), AND

FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 24-181, which will:

1. Find the Lifeguard Towers Replacement (2024), CIP Project No. 22104, categorically exempt from the California Environmental Quality Act (CEQA) under Class 2 of the State CEQA Guidelines, Section15302.

2. Award the Lifeguard Towers Replacement (2024), CIP Project No. 22104, construction contract to Pantheon Diversified, Inc. as the lowest responsible and responsive bidder.

3. Approve, and authorize the City Manager to execute, Contract No. C24- 71, by and between the City of San Clemente and Pantheon Diversified, Inc., providing for Lifeguard Towers Replacement, in the amount of $115,000, in a form substantially similar to Contract No. C24-71 (Attachment 2).

4. Approve a 15% project contingency of $17,250.

15 City Council Regular Meeting Agenda November 19, 2024 11J. CONTRACT AWARD - COMPLETION OF A PARKING AND

TRANSPORTATION DEMAND MANAGEMENT ANALYSIS AND POLICY

DEVELOPMENT FOR LOCAL COASTAL PROGRAM, ACCEPTING

RELATED GRANT FUNDING, MAKING A SUPPLEMENTAL

APPROPRIATION, AND FINDING THE PROJECT STATUTORILY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 24-182, which will:

1. Find the project statutorily exempt from the California Environmental Quality Act (CEQA) under Section 15262 (Feasibility and Planning Studies) and 15378 (No Potential for Impact) of the state CEQA Guidelines.

2. Award a professional consulting services agreement to Chen Ryan Associates, Inc., to conduct a parking and transportation demand management analysis for the downtown, North Beach, Pier Bowl, and other coastal areas.

3. Approve, and authorize the City Manager to execute, Contract No. C24- 72, by and between the City of San Clemente and Chen Ryan Associates, Inc., providing for a parking and transportation demand management analysis for the downtown, North Beach, Pier Bowl, and other coastal areas, in an in an amount not to exceed $250,000.

4. Accept grant revenues in the amount of $250,000 to Account No. 001-000 -33446 (Coastal Grant Revenue).

5. Approve a supplemental appropriation of $250,000 to Account No. 001- 433-43695 (Professional Studies).

16 City Council Regular Meeting Agenda November 19, 2024 11K. CONTRACT AWARD - BIOLOGICAL MONITORING AND INSPECTION

SERVICES FOR THE AVENIDA MONTALVO CANYON AND TRAIL

IMPROVEMENTS HABITAT RESTORATION, AND APPROVING A
SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $30,000
Staff Recommendation
Adopt Resolution No. 24-183, which will:

1. Approve a supplemental appropriation in the amount of $30,000 from the Local Drainage Facilities Fund into Account No. 033-832-45300-000- 16004.

2. Award a Professional Services Agreement to SWCA Environmental Consultants for monitoring and inspection services for the Avenida Montalvo Canyon and Trail Improvements Habitat Restoration, CIP Project No. 16004.

3. Approve, and authorize the City Manager to execute, Contract No. C24- 73, by and between the City of San Clemente and SWCA Environmental Consultants, providing for monitoring and inspection services for the Avenida Montalvo Canyon and Trail Improvements Habitat Restoration, in an amount not to exceed $89,828.
11L. CONTRACT AMENDMENTS - AS NEEDED BUILDING PLAN REVIEW

SERVICES
Staff Recommendation
Adopt Resolution No, 24-184, which will:

1. Approve the first amendment to the Professional Consulting Services Agreement with VCA Consultants, Inc. for Building Plan Review Services in an amount not to exceed $150,000.

2. Approve the first amendment to the Professional Consulting Services Agreement with West Coast Code Consultants, Inc. for Building Plan Review Services in an amount not to exceed $150,000.

3. Approve a supplemental appropriation in the amount of $130,000 to Account No. 001-421-43890-000-0000 and accept additional building revenues of $130,000 to Account No. 001-000-32210-000-00000.

4. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No. C24-03, by and between the City of San Clemente and with VCA Consultants, Inc., providing for Building Plan Review Services, in an

17 City Council Regular Meeting Agenda November 19, 2024 amount not to exceed $150,000.

5. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No. C24-02, by and between the City of San Clemente and with West Coast Code Consultants, Inc., providing for Building Plan Review Services, in an amount not to exceed $150,000.
11M. CONSIDERATION OF APPROVING THE SAN CLEMENTE LAND OUTFALL (PC 10) ASSET TRANSFER AND DISSOLUTION AGREEMENT, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
Staff Recommendation
Adopt Resolution No. 24-185, which will:

1. Approve, and authorize the City Manager to execute, Contract No. 24-74, San Clemente Land Outfall (PC 10) Asset Transfer and Dissolution Agreement.
11N. CONSIDERATION OF APPROVING FIVE SOUTH ORANGE COUNTY

WASTEWATER AUTHORITY (SOCWA) REORGANIZATION AGREEMENTS
Staff Recommendation
Adopt Resolution No. 24-186, which will:

1. Approve Amendment No. 1 to Joint Powers Agreement, Asset and Capacity Transfer Agreement (Agreement No. 1)(C24-75).

2. Moulton Niguel Water District - South Orange County Wastewater Authority Withdrawal Agreement (Agreement No. 4)(C24-76).

3. Assignment and Assumption Agreement (PC 5, Agreement No. 6)(C24- 77).

4. Transfer Price Allocation Memorandum of Understanding (C24-78).

5. Approve, and authorize the City Manager to execute said agreements.

18 City Council Regular Meeting Agenda November 19, 2024 11O. CONSIDERATION OF RESOLUTION NO. 24-187 AUTHORIZING AN

EXEMPTION TO THE FORMAL SOLICITATION PROCESS FOR THE
PURCHASE OF DELL SERVERS FROM SIDEPATH, INC. IN AN AMOUNT NOT TO EXCEED $72,175
Staff Recommendation
Adopt Resolution No. 24-187, which will:

Approve, and authorize the City Manager to execute, Contract No. C24-79, by and between the City of San Clemente and Sidepath, Inc., providing for the purchase of the Dell Servers under substantially the same terms and conditions of NASPO Contract No. 23026 and California State Participating Addendum No. 7-23-70-55-01, in an amount not to exceed $72,175, which includes four Dell servers and three years of maintenance and support.
11P. NOTICE OF COMPLETION - SAN CLEMENTE VILLAS BY THE SEA STORM

DRAIN REPAIR
Staff Recommendation
Adopt Resolution No. 24-188, which will:

1. Accept San Clemente Villas by the Sea Storm Drain Repair, Project No. 26001, from the contractor, GCI Construction, Inc.

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the completed San Clemente Villas by the Sea Storm Drain Repair.

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, GCI Construction, Inc.
11Q. CONSIDERATION OF RETURNING AN OVERPAYMENT OF BUSINESS

LICENSE TAX TO VILLA SAN CLEMENTE, LLC IN THE AMOUNT OF $87,359
Staff Recommendation
Adopt Resolution No. 24-189 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

RETURN OF OVERPAYMENT OF BUSINESS LICENSE TAXES TO VILLA SAN CLEMENTE, LLC IN THE AMOUNT OF $87,359.

19 City Council Regular Meeting Agenda November 19, 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 December 10, 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.

Note: The City Council meeting of December 3, 2024 was previously rescheduled to December 10, 2024.

20 City Council Regular Meeting Agenda November 19, 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.

21 910 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: November 19, 2024 Agenda Item: 8A.

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

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

Summary:

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

Background:

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

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

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

On March 5, 2024, the City Council further continued the abeyance to September 3, 2024; and on September 3, 2024, the City Council further continued the abeyance to November 19, 2024. The parties and the real parties in interest in the Harborview litigation have continued their confidential settlement discussions, and staff believes that these discussions are nearing a mutually acceptable conclusion. Therefore, Harborview and ATC have jointly requested and staff is 22 Meeting Date: November 19, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 2
recommending that the City Council continue the abeyance period until January 14, 2025 to complete these confidential discussions.

In the time since the September 3, 2024 City Council meeting, ATC has worked with City staff to secure its property from trespass and to address one of the community’s principal concerns related to the site:
 Staff approved plans for building permit (B24-1180) to allow ATC to replace the existing outer compound fence with a 6-foot tall light brown, heavy-gauge, coated mesh fence with 1-foot barbed-wire top to prevent further trespass. This fence type is “anti-climb” and “anti-cut” specifically intended to inhibit trespass. Construction of the new fence was completed in October and passed final inspection on October 31, 2024.  At staff’s recommendation, ATC agreed to install straw wattle lines between their fence and an adjacent hill to limit superficial erosion.
 Although not required under Conditional Permit 1021, ATC anticipates installing cameras and down-facing security lighting within the tower enclosure and has sought direction from City staff on these items.
 ATC granted the City access to the property through a Site Access Agreement (Attachment 4), executed on August 6, 2024, which provides authorization to the City’s Park Rangers to access the site, at the discretion of City Management, in response to complaints of trespass or vandalism.
 The City’s Code Compliance Division has not received new complaints related to this facility since March 5, 2024.
 The Orange County Sheriff’s Department has received two additional calls-for-service related to trespassing on the site and climbing the tower, one on August 19, 2024, and the other on August 31, 2024. No calls have been received subsequent to the installation of the new perimeter fence.

Council Options:
 Continue the public hearing to a date certain and extend the abeyance of the revocation of Conditional Permit 1021 for a date certain either before or after January 14, 2025, and direct staff to return with consideration of a resolution related to Conditional Permit 1021.  Continue the public hearing indefinitely and extend the abeyance of the revocation of Conditional Permit 1021 indefinitely. This would allow staff to return with the appropriate resolution after the pending settlement is finalized and implemented.  Continue the item and direct staff to provide additional information.

Environmental Review/Analysis:

Continuing to take no action is not a project under the California Environmental Quality Act. 23 Meeting Date: November 19, 2024 Agenda Item: 8A.

CITY OF SAN CLEMENTE 3
Recommended Actions:

Staff Recommendation ..recommendation
Continue the public hearing indefinitely and extend the abeyance of the revocation of Conditional Permit 1021 indefinitely.
..end
Attachment:

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

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

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

3. Minutes of the City Council Meeting of March 5, 2024, excerpted

4. Site Access Agreement between American Tower Management and the City of San Clemente

5. Minutes of the City Council Meeting of September 3, 2024, excerpted Notification:

Public notice previously published in the San Clemente Times, with notice provided to American Tower Corporation on behalf of American Tower Management, LLC, and to representatives of Harborview Estates Homeowners Association. As this item was continued to a date certain no further notice is required; however, these parties were notified by email of this agenda item. 24 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

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

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

Summary:

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

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

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

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

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

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

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

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

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

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

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

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

Section 6 of the Voluntary Complaint Agreement provides:

The City agrees that, following the reduction in the height of the tower, the Wireless Communications Facility will be in compliance with the 1962 CUP, and specifically that (i) the 1962 CUP is vested; (ii) the 1962 CUP does not contain an expiration date; and (iii) the 1962 CUP permits the current use of the Wireless Communications Facility for wireless telecommunication purposes; and (iv) the 1962 CUP permits a 70’ tower. As a result, the City shall not require a discretionary 262
Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
approval, including but not limited to a new CUP or renewal of the 1962 CUP, in connection with the reduction in height and ongoing operation of the Wireless Communications Facility consistent with the 1962 CUP.

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

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

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

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

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

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

Following Council’s December 5, 2023 action to initiate a public hearing, staff gathered additional information related to these allegations.
273
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CITY OF SAN CLEMENTE
First, City staff requested that the Owner provide verification of their access rights to the property.

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

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

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

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

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

Third, City staff reviewed complaint history received through its Code Compliance Division related to this site. There have been five nuisance cases opened since 2012, the accompanying descriptions are the complaints received which initiated the cases:
 CE2012-0536 Holes in fence
 CE2012-1479 Hole in fence surrounding cell tower
 CE2016-1519 RSC cell towers vandalized & security breached  CE2018-0245 Transient Break-in
 CE2020-0468 Graffiti on the Ridge Trail private cell site There have been three additional complaints received in 2023. These complaints did not result in code cases because underground cable work does not require a city permit and because the 284
Meeting Date: January 16, 2024 Agenda Item: 8C

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

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

Law Related to Public Nuisances
Under Civil Code section 3480, a public nuisance affects an entire community or neighborhood, or any considerable number of persons at the same time, although the extent of the annoyance or damage inflicted on individuals may be unequal. SCMC section 8.52.020 states: “No person shall allow, maintain or commit any public nuisance, or willfully fail to commit any legal duty relating to the removal of a public nuisance.”
While state law contains a definition of nuisance, under Government Code section 38771, cities are free to declare, by ordinance, what constitutes a nuisance. SCMC section 8.52.030 declares, in part, it “a public nuisance for any person owning, leasing, occupying or having charge or 295
Meeting Date: January 16, 2024 Agenda Item: 8C

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

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

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

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

8.52.030.

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

Council Options:

Following a public hearing:
 The City Council could decline to change or revoke Conditional Permit 1021.  The City Council could change Conditional Permit 1021 by adding/modifying conditions of approval or standards for development and operation of the site to mitigate the complaints and calls for service and make the site safer for the public and eliminate the public nuisance. 306
Meeting Date: January 16, 2024 Agenda Item: 8C

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

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

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

Recommended Actions:

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

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

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

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

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

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

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

7. The Owner shall defend and indemnify the City.
..end
317
Meeting Date: January 16, 2024 Agenda Item: 8C

CITY OF SAN CLEMENTE
Attachments:

1. Resolution 24-09

2. Conditional Permit 1021

3. Voluntary Compliance Agreement dated July 6, 2023

4. Wireless Screening Form No. WMS 23-231

5. Survey of Easement Access to Site

6. History of ATC Lease/License Agreements

7. ATC redacted Lease/License Agreements

8. ATC’s suggestions to improve site security

9. Public comments
Notification:

Public Hearing published in the San Clemente Times, posted near the site, mailed to Owner and all property owners within 300 feet of property, and provided electronically to Owner, Applicant, and adjacent HOAs.
328
ATTACHMENT 2
33 34
35 36
37 38
39 City Council Special and Regular Meeting Minutes March 5, 2024

88. CONSIDERATION OF AUTHORIZING A GRANT IMPLEMENTATION

AGREEMENT WITH THE COUNTY OF ORANGE FOR THE SOUTH ORANGE

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

CALIFORNIA DEPARTMENT OF WATER RESOURCES FOR THE RECYCLED

WATER QUALITY IMPROVEMENT PROJECT
Public Works Director/City Engineer Rebensdorf narrated a PowerPoint presentation entitled "Recycled Water Quality Improvement Project" and responded to Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Motion by Councilmember Duncan, second by Councilmember Knoblock, CARRIED 5-0, to:

Adopt Resolution No. 24-28, which will:

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

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

AYE: Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral NOE: None
8C. CONTINUANCE OF NO ACTION ON CONDITIONAL PERMIT 1021 RELATED TO THE PROPERTY LOCATED AT 616 DEL DIOS, ASSESSOR'S PARCEL NUMBER 690-552-05
Community Development Director Atamian reviewed the contents of the Administrative Report and responded to Council inquiries.

Bert Levesque, Harborview Homeowners Association, provided an update on meetings between Harborview and American Tower Corporation.

Tony Rubolino spoke on comments made by Councilmember Duncan.

Motion by Mayor Pro Tern Enmeier, second by Councilmember Knoblock, CARRIED 5-0, to continue the abeyance of the revocation of Conditional Permit 1021 until September 3, 2024, which would maintain the status quo until that date.

ATTACHMENT 3
40 City Council
AYE:

NOE:

Special and Regular Meeting Minutes March 5, 2024
Duncan, Enmeier, Knoblock, Loeffler and Mayor Cabral
None
8D. CONSIDERATION OF COUNCILMEMBER TRAVEL AND TRAINING

EXPENSES
Amanda narrated a PowerPoint presentation entitled "Duncan's DC Trip". A hard copy of the presentation is on file with the City Clerk.

Tony Rubolino narrated a PowerPoint presentation entitled "Oh, You Don't Say".

A hard copy of the presentation is on file with the City Clerk.

Motion by Mayor Pro Tern Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to authorize an expenditure of up to $110 related to City Councilmember Duncan's mileage reimbursement to attend at the 2024 March Cal Cities Governance, Transparency and Labor Relations Policy Committee Meeting.

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

9. New Business
None
9A. CONSIDERATION OF ITEMS FOR ESTABLISHING THE ARTS & CULTURE COMMITTEE 2024 WORK PLAN
Beaches, Parks and Recreation Director Wylie reviewed the contents of the Administrative Report and responded to Council inquiries.

Amanda narrated a PowerPoint presentation entitled "A & C". A hard copy of the presentation is on file with the City Clerk.

Motion by Mayor Pro Tern Enmeier, second by Councilmember Loeffler, CARRIED 4-1 (Councilmember Duncan voting NOE) to adopt Resolution No. 24-29 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, APPROVING THE ARTS AND CULTURE
COMMITTEE 2024 WORK PLAN, with the addition of surf culture where appropriate.

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

41 SITE ACCESS AGREEMENT
This SITE ACCESS AGREEMENT ("Agreement") is entered into by and between AMERICAN TOWER MANAGEMENT, LLC ("Owner"), and the CITY OF SAN CLEMENTE (the "City"). Owner and the City are sometimes referred to herein individually as a "Party" and together as the "Parties."

RECITALS
WHEREAS, Owner owns and operates a wireless communications facility (the "Facility") located at 616 Del Dios, Rancho San Clemente, California 92672, APN 690-552-05 (the "Property").

WHEREAS, Owner wishes to grant the park rangers in the City's Park Ranger Program, currently overseen by the Community Development Department, (hereinafter referred to as the "Park Rangers") access to the Property to assist in responding to and deterring trespassing, vandalism, and other alleged unpennitted activity on the Property, on the terms and conditions set forth herein.

TERMS AND CONDITIONS
NOW, THEREFORE, in consideration of the mutual covenants and promises herein, the Paities hereby agree as follows:

1. Rights Granted. Owner hereby grants to the Park Rangers a license to enter upon and access the Property to respond to calls, investigate, prevent, terminate, or otherwise appropriately respond to alleged trespassing, vandalism, and/or other alleged unpennitted activity at the Prope1ty. The foregoing activities of the Park Rangers are referred to herein collectively as the "Pennitted Activities." The City acknowledges that Owner's grant of license under the terms of this Agreement is limited to the Property and only those pmtions of the Property necessary for the Park Rangers to perform and complete the Permitted Activities. The rights granted under this Agreement are limited to the Pennitted Activities detailed above and do not include, inter alia, the entry onto the Property by any party other than the Park Rangers, including other City employees, agents, or representatives not connected to the Park Ranger Program, unless agreed to by Owner in advance. The City further acknowledges that the Permitted Activities shall be performed in a reasonable manner and with minimal disruption or damage to the Facility, surrounding environment, and community.

ATTACHMENT 4
42 2. Performance of the Permitted Activities.

2.1 All Permitted Activities, if the City in its sole and absolute discretion elects to perform them, shall be performed by the Park Rangers at the City's sole cost and expense (except for the proper application of the City's Repeat Nuisance Service-Call Fee, if any, pursuant to San Clemente Municipal Code Chapter 9.20) in a prompt, safe, efficient, and workmanlike manner and in compliance with all applicable federal, state, and local laws, regulations or ordinances, and permits, approvals and conditions granted or imposed by governmental agencies.

2.2 The Park Rangers may, but are under no obligation to, enter the Property for the purpose of performing the Permitted Activities at any time so long as the Park Rangers have legitimate reason to suspect that trespassing, vandalism, and/or other alleged unpermitted activities likely to be injurious to life or property are being conducted on the Property.

2.3 Except as may be otherwise permitted by the Rancho San Clemente Master Association and/or the Harbor View Estates Homeowners Association, the Park Rangers shall not access the Property via the entrance off Del Dios. The Park Rangers shall only access the Property via the utility access roads off Avenida Salvador, as identified in the survey attached hereto as Exhibit A. The American Tower lock to access the utility access roads off Avenida Salvador is the lock in middle of the chain with a red strip of tape wrapped around it.

2.4 If and when entering the Prope1ty and performing the Permitted Activities, the Park Rangers shall use reasonable efforts to minimize interference with, or impairment or disruption of, the current use, occupancy, and/or operation of any portion of the Property by Owner. Owner acknowledges, consents to, and agrees that some interference, impairment, or disruption of uses, occupancy or operations may occur as a result of the performance of the Permitted Activities, but does not consent or agree to Park Rangers engaging in dangerous or destructive activity, including but not limited to climbing the tower or touching equipment cabinets or electric boxes.

3. Effective Date. The Effective Date of this Agreement shall be immediately after both Pa1ties have executed the Agreement.

4. written notice.

Termination. This Agreement may be terminated at any time by either party upon

5. No Other Rights Granted. This Agreement shall not in any way entitle the City, the Park Rangers, nor any other public or private entity to pe1form any activities at the Property other than the Pennitted Activities, or as otherwise specifically authorized by this Agreement, without first obtaining Owner's prior written consent which may be granted or withheld in Owner's sole discretion.

6. Mutual Release. Owner agrees to and does hereby release the City and the Park Rangers from any and all actions, claims, costs, damages, penalties, assessments, and liability arising f
rom any incidental damage to the Facility or Property or operations at the Property that may reasonably occur in the ordinary course of completing the Permitted Activities. The City agrees to and does hereby release Owner from any and all actions, claims, costs, damages, penalties, assessments, and liability arising from any damage or harm that may befall the Park Rangers in the course of completing any Permitted Activities except for damage or harm 2 43
intentionally caused by Owner or its agents (including but not limited to the Park Rangers). The foregoing releases shall survive any tennination of this Agreement with respect to incidents occurring during the term of the Agreement.

7. Communications. The City shall notify Owner when it responds to any alleged trespassing, vandalism, and/or other alleged unpermitted activity likely to be injurious to life or property at the Property. The City shall notify Owner and provide it copies of any non-confidential written communications, including via electronic correspondence, between City and any government agency related to the fact of the Park Rangers performing any Permitted Activities.

Notifications to Owner shall be provided to:

American Tower Network Operations Center (NOC)
877-51 TOWER (877-518-6937)
[email protected]
With a copy to:

Emily Lane Murray Esq.

Allen Matkins Leck Gamble Mallory & Natsis LLP
865 South Figueroa Street, Suite 2800
Los Angeles, CA 90017-2543
(213) 622-5555
[email protected]

8. Applicable Law: Venue. This Agreement shall be interpreted, and any dispute arising hereunder shall be resolved, in accordance with the laws of the State of California, without reference to choice of law rules. Venue shall be exclusive in the state or federal Cou11s in Orange County, California and Owner waives any right that it may have under California Code of Civil Procedure section 394.

9. Integration. This document represents the entire agreement between the Parties on the subject matter contained herein. This Agreement supersedes and replaces any and all prior agreements between the Parties regarding the subject matter herein. No modification of the terms hereof shall be effective unless in writing and duly executed by the authorized representatives of the respective parties. Nothing in this Agreement shall have any effect on any other agreement or matter between the Pai1ies.

10. Severability. If any one or more of the provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, that invalidity, illegality or unenforceability shall not affect any other provision herein and this Agreement shall be construed as if the invalid, illegal or unenforceable provision had never been included; provided, however, in no event shall either Party be deprived of a material consideration by operation of this provision.

11. No Admission of Liability/Duty. Each of the Parties acknowledge and agree that this Agreement, the act of entering into it, and any act or omission pursuant hereto shall not be construed as an admission of any nature, nor shall anything in this Agreement be deemed to create a duty on the City's part to undertake any of the Permitted Activities. 3 44

12. Signatories. Each of the signatories hereto warrants and represents that he or she is competent and authorized to enter into this Agreement on behalf of the Party for whom he or she purpo1ts to sign.

13. Counterparts/Electronic Signatures. This Agreement may be executed in any number of counterpa,ts, which shall together shall constitute one complete agreement. This Agreement may be executed electronically with the same force and effect as an original, ink signature.
[SIGNATURES ON FOLLOWING PAGE]
4 45
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and effective as of the last date set fo1th below.

Dated 08/05/2024
Dated 08/06/2024
AME
_L.Jn�•�;;:;;::�· ����

AGEMENT, LLC
By: .:cc.:M•=====::.:.==-'-'------
Name: Margaret Robinson
Its: V.P., U.S. Tower Legal Ops.

APPROVED AS TO FORM:

Efl:lUjj Murr.
8 y: Emily Murray (Aug 5, 20241� EDT)
Name: Emily Murray
Its: Allen Matkins, Counsel

CITY OF SA

N CLEMENTE
. Andy Hall BY. Andy llaU {Aug 6, 2024 16;32 POD
Andy Hall, City Manager
APPROVED AS TO FORM:

By: c-%v"w�7;;::_·ci-A,�..a.(
Elizabeth A. Mitchell, City Attorney
ATTEST:

By: laur�JNgnolo(Aug!l,202411:lOPDll
Laura Campagnolo, City Clerk
5 46
City Council Regular Meeting Minutes September 3, 2024

88. CONTINUANCE OF NO ACTION ON CONDITIONAL PERMIT 1021 RELATED TO THE PROPERTY LOCATED AT 616 DEL DIOS, ASSESSOR'S PARCEL NUMBER 690-552-05
Mayor Cabral opened the Public Hearing.

There being no one desiring to speak, Mayor Cabral closed the Public Hearing.

Motion by Councilmember Knoblock, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to continue the abeyance of the revocation of Conditional Permit 1021 until November 19, 2024, which would maintain the status quo until that date.

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

9. Unfinished Business
None.

10. New Business
None
10A. CONSIDERATION OF A RESOLUTION AWARDING SPORTS PARTNERSHIP

STATUS FOR THE FALL/WINTER PRIMARY SEASON SPORTS
Beaches, Parks and Recreation Director Wylie reviewed the contents of the Administrative Report and responded to City Council inquiries.

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

Adopt Resolution No. 24-137, which will:

1. Grant Tier I Recreational Sports Partnership Status to American Youth Soccer Organization Region 111 for a one year term.

2. Grant Tier I Recreational Sports Partnership Status to Elite Soccer League for a three year term.

3. Grant Tier I Recreational Sports Partnership Status to South Coast Youth Football for a three year term.

4. Approve, and authorize the Beaches, Parks & Recreation Director to execute, Contract No. C24-49, Recreation Sports Partnership Agreement, by and between the City of San Clemente and American Youth Soccer Organization Region 111, Tier I Recreational Sports Partnership Status, for a one year term with an option to re qualify for a Tier I after year 1 of the Agreement.

ATTACHMENT 5
47 910 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: November 19, 2024 Agenda Item: 8B.

Submitted By: Planning Division
Prepared By: Zach Rehm, Principal Planner
Subject:
..titl e

INTRODUCTION (FIRST READING) OF AN ORDINANCE APPROVING ZONING AMENDMENT ZA24-193 TO TITLE 17 (ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE TO ADD CHAPTER 17.26 OBJECTIVE DESIGN STANDARDS FOR MULTI-FAMILY

RESIDENTIAL AND RESIDENTIAL MIXED-USE DEVELOPMENT, AMENDING SECTION

17.32.030 RESIDENTIAL ZONE USES, AMENDING SECTION 17.36.020 COMMERCIAL ZONE USES, AMENDING SECTION 17.40.030 MIXED-USE ZONE USES, AND AMENDING SECTION 17.56.090 HOUSING OVERLAY TO ADD CERTAIN SITES PREVIOUSLY

IDENTIFIED IN THE HOUSING ELEMENT, IN ACCORDANCE WITH CALIFORNIA HOUSING LAWS AND THE CITY OF SAN CLEMENTE’S CERTIFIED HOUSING ELEMENT; AND

FINDING THAT THE ZONING AMENDMENT IS EXEMPT FROM CEQA PER THE

COMMUNITY PLAN EXEMPTION PURSUANT TO PUBLIC RESOURCES CODE SECTION 21083.3 AND CEQA GUIDELINES SECTIONS 15183, 15060(C) AND 15061(B)(3) ..body
Fiscal Impact:

There are no direct fiscal impacts. The rezoning project is grant funded through the California Department of Housing and Community Development. If approved, there could be increases in property tax base if the rezoning encourages new development or redevelopment. There could also be sales tax reductions where housing developments occur on commercially zoned properties.

If not approved, the City would not meet its obligations under the Housing Element, and the California Department of Housing and Community Development would seek decertification of the City’s Housing Element, which would undermine the City’s ability to issue any permits and eliminate revenues from permit fees.

Summary:

The ordinance would amend San Clemente Municipal Code Title 17 – Zoning (“Zoning Code”) to implement goals and action items from the City’s Housing Element, which the City Council approved and the State certified in 2022. The project was initiated at two community workshops and a community survey in 2023, reviewed twice by the Design Review Subcommittee, and the Planning Commission held a study session on March 6, 2024 and public hearings on May 8, 2024 and October 2, 2024 to provide recommendations to the City Council. At the conclusion of the October 2, 2024 hearing, the Planning Commission voted unanimously (5-0 with two absent) to pass a resolution recommending the City Council adopt Objective Design Standards, which will apply to multi-family residential and mixed-use projects on a selection of sites previously identified in the Housing Element, and to recommend updates to the Zoning Code to comply with relevant State laws and incentivize mixed income housing within a Housing Overlay. 48 Meeting Date: November 19, 2024 Agenda Item: 8B.

CITY OF SAN CLEMENTE 2
Background:

The State of California continues to enact new laws to accelerate housing production by streamlining the approval of housing development at the local level. In 2017, the Housing Accountability Act (HAA) was significantly strengthened through the passage of three bills, SB 167, AB 678, and AB 1515. These bills were part of a comprehensive group of laws enacted by the State to address California’s housing shortage. In 2018, AB 3194 declared that when there are inconsistencies between the General Plan and zoning regulations, the General Plan policies take precedence. In 2018, SB 35 went into effect, requiring a streamlined and ministerial review process for multi-family housing projects meeting specific qualifications. In 2019, AB 2162 went into effect, requiring a streamlined and ministerial review process for supportive housing meeting specific qualifications. In 2020, SB 330, intended to streamline review and create certainty in the development of housing projects, went into effect and created restrictions on new local regulations. In 2022, SB 9 went into effect, requiring cities to ministerially approve, within single family residential zones, housing developments containing no more than two residential units and parcel maps for urban lot splits.

With certain limitations, the above-referenced laws permit the City to impose design standards on housing projects, so long as those standards are objective and involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.

When the City Council adopted the Housing Element Update on September 20, 2022 and the Department of Housing and Community Development (HCD) certified the City’s Housing Element in conformance with State law on October 12, 2022, the City committed to implementing the goals through a Housing Action Plan. Completion of the Objective Design Standards and expansion of the City’s existing “Affordable Housing Overlay” into a new “Housing Overlay,” with six “rezone sites” previously identified in the Housing Element to be added to the Housing Overlay, are programs identified in the Housing Action Plan. The Environmental Impact Report approved in support of the Housing Element considered the effects of implementation of these programs and identified them as consistent with the General Plan and necessary to comply with State housing laws.

The Objective Design Standards were drafted consistent with State housing laws as well as City documents that pertain to design standards for residential developments, including the Design Guidelines, Zoning Code, Specific Plans, and General Plan. Numerical standards were derived from review of best practices, analysis of existing development design features and constraints, and discussion with staff, consultants, the public, the Design Review Subcommittee, and the Planning Commission1.

In order to ensure that the Objective Design Standards can be satisfied and will result in attractive development compatible with the existing discretionary design guidelines, the consultant analyzed multi-unit residential and mixed-use projects that have been approved and developed in San Clemente, and found that those projects are generally consistent with the standards. Staff

1 Public outreach materials, DRSC and Planning Commission comments and revisions, and Planning Commission Study Session slides, and additional materials related to the Housing Action Plan may be reviewed on the City’s website: https://www.sanclemente.org/departments-services/planning-services/active-planning-projects 49 Meeting Date: November 19, 2024 Agenda Item: 8B.

CITY OF SAN CLEMENTE 3
and consultants also considered feedback from 40 residents and stakeholders who participated in two community workshops in February and March, 2023. Staff worked with the consultant to establish four Architectural Design Districts with more specific Objective Design Standards.

Architectural Design Districts would require either Spanish Colonial Revival (SCR) architecture, SCR or Mission architecture, eclectic industrial architecture within the Los Molinos Design District, or contemporary, Polynesian, Australian, or Seaside/Fishing architecture within the Surf Zone Design District. Objective Design Standards for Spanish Colonial Revival and Mission architecture are derived from the City’s Design Guidelines, Henry Lenny Design Guidelines, and General Plan Focus Areas. Objective Design Standards for Los Molinos architecture are derived from the West Pico Corridor Specific Plan. Objective Design Standards for Surf Zone architecture are derived from General Plan policies and the predominant design of existing development. The Objective Design Standards are proposed as a new Chapter 17.26 to be added to the Zoning Code, to supplement the development standards of the code and further the goals, policies, and implementation of the General Plan, which encourages an elevated design and fosters an enhanced quality of life through the built environment.

In addition to the Objective Design Standards and expanded Housing Overlay, the zoning amendment includes changes to the zoning tables to ensure Qualified Affordable Housing Development Projects and Senior Housing projects can be developed subject to ministerial review in areas where they are either currently restricted or require discretionary review. Projects within the Housing Overlay subject to the zoning table changes and represented on the maps would still be reviewed by City staff for consistency with the Objective Design Standards to ensure an attractive design and would only qualify for this ministerial review if they meet specific standards for design, density, and affordability. Chapter 17.56.090 contains the current standards for the Affordable Housing Overlay, which, through this process, will be amended and retitled the Housing Overlay. Between 20% and 40% of all units in a qualifying project must be restricted to low- or moderate-income households, and if units within a project are proposed to be sold as condominiums, then the affordable portion of the project must be sold as condominiums to a 501(c)3 non-profit housing development organization, which must rent out the enforceablyrestricted affordable units to households at the applicable income level. The project proponent would also be required to enter into a legal agreement with the City, approved by the City Council, to ensure management of the site and the affordable units.

Through the Housing Action Plan, the City committed to analyzing potential changes to the Zoning Code to encourage multi-family housing at all price and income levels, including marketrate higher-cost housing. However, based on the Annual Progress Reports completed for the first three years of the 2021-2028 Housing Element Cycle, the City is producing nearly enough market-rate housing to satisfy its Housing Element and Regional Housing Needs Assessment targets, without the application of code changes or incentives. Additionally, based on the proposed incentives for Qualified Affordable Housing Development Projects within the expanded Housing Overlay, including the six “rezone sites” added based on the analysis in the Housing Element, the City is likely to experience development of projects which provide a mix of marketrate and affordable housing units, increasing the City’s production of housing at all price and income levels. Thus, staff are not recommending changing the location or intensity of allowable development of housing projects which are entirely market-rate. 50 Meeting Date: November 19, 2024 Agenda Item: 8B.

CITY OF SAN CLEMENTE 4
Finally, the proposed zoning amendment includes a provision to preserve motels and hotels within the coastal zone as required by the Coastal Act of 1976, and to preserve motels and hotels just outside the coastal zone but within the Housing Overlay along South El Camino Real, which the City relies on to support visitors, maintain stock of affordable overnight accommodations, and generate transient occupancy tax revenue. Qualified Affordable Housing Developments, Senior Housing, and market-rate residential projects would not be allowed to convert existing hotel/motel uses which have provided lower cost visitor serving accommodation in the last five years, unless the project provides equivalent new lower cost visitor serving accommodation or unless the proposed development is required to be approved pursuant to State law.

The Planning Commission recommended that the City Council adopt Objective Design Standards, which will apply to multi-family residential and mixed-use projects on a selection of sites previously identified in the Housing Element, and recommended updates to the Zoning Code to comply with relevant State laws and incentivize mixed income housing within a Housing Overlay. Those recommendations would be carried out through the attached Ordinance and Zoning Amendment. The Zoning Amendment has been modified since the Planning Commission meeting to incorporate Commissioner comments on the objective design standards, especially those specific to Spanish Colonial Revival architecture, for which there was Commissioner concurrence during the October 2, 2024 hearing. Staff also made revisions to correct typos, clarify existing approval processes, updated cells and footnotes within the zoning tables, and revised two sites on the map referenced in the Zoning Amendment Exhibit to be consistent with the adopted Housing Element.

Council Options:
 Introduce and conduct the first reading of Ordinance No. 1784 approving the Zoning Amendment.
 Continue the Item with direction to staff to revise the Zoning Amendment or provide additional information. Under this alternative, the City would still be obligated to approve affordable housing projects ministerially (e.g., SB 35 projects), but could not impose design standards until objective design standards are adopted into the Zoning Code.  Direct staff to close the project and abandon the Zoning Amendment. Under this alternative, the City would not meet its obligations under the Housing Element. The California Department of Housing and Community Development would seek decertification of the City’s Housing Element, which would undermine the City’s ability to issue any permits.

Environmental Review/Analysis:

The City, as Lead Agency, has conducted an environmental review of the proposed Ordinance for compliance with the CEQA and the State CEQA Guidelines. The SCMC amendments within the Ordinance are exempt from CEQA and/or not subject to further environmental review pursuant to Public Resources Code (PRC) Section 21083.3 and CEQA Guidelines Section 15183, as well as Guidelines Sections 15060(C) and 15061(B)(3). Since the project would adopt development standards consistent with the land uses and development intensities analyzed in the certified Environmental Impact Report (EIR) for the Housing Element Update, the SCMC amendments are eligible for the Community Plan exemption from CEQA pursuant to PRC Section 21083.3 and CEQA Guidelines Section 15183.
51 Meeting Date: November 19, 2024 Agenda Item: 8B.

CITY OF SAN CLEMENTE 5
Additionally, the project is covered by the general rule that CEQA applies only to projects which have the potential to cause a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment, the project is not subject to CEQA. The proposed zoning amendment involves a policy action that is administrative in nature, related to the requirements to implement Housing Element Programs. Therefore, it can be seen with certainty that there is no possibility that this project may have a significant effect on the environment and is not subject to CEQA. It is not possible to predict which properties in the City, if any, may be proposed to be developed with a project that is subject to the Objective Design Standards and Housing Overlay, whether any development or density will result from the proposed changes, whether any development or density will result that would not already have occurred under the existing Zoning Ordinance, whether any project may elect to submit eligible projects, or any possible significant environmental impacts peculiar to the adoption of the Housing Action Plan updates, and therefore will not result in any direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines Section 15060(c).) Finally, the project can be seen with certainty based on review of the facts to have no possible significant effect on the environment, including impacts to water or traffic (CEQA Guidelines Section15061(b)(3).)
Recommended Actions:
..recommendation

1. Determine that the zoning amendment is exempt from CEQA per the Community Plan exemption pursuant to PRC Section 21083.3 and CEQA Guidelines Sections 15183, 15060(C) and 15061(B)(3); and

2. Introduce and conduct a first reading of Ordinance No. 1784, approving Zoning Amendment ZA 24-193.
..end
Attachments:

1. Ordinance No. 1784

2. Exhibit A: Zoning Amendment ZA 24-193

3. Public Comments
Notification and Public Comments:

Public notices for the zoning amendment were distributed and posted per City and State requirements. Public comments received by the Planning Commission are included as Attachment 2. In those comments, the Kennedy Commission, the San Clemente Affordable Housing Coalition, and San Clemente residents opposed provisions in the zoning amendment that would restrict certain hotels and motels from being converted to affordable or market rate housing and would reduce the proportion of affordable units in qualified affordable housing development projects required to qualify for streamlined review within the proposed Housing Overlay.
52 Attachment 1
ORDINANCE NO. 1784

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING ZONING
AMENDMENT ZA24-193 TO TITLE 17 (ZONING) OF THE

SAN CLEMENTE MUNICIPAL CODE TO ADD CHAPTER

17.26 OBJECTIVE DESIGN STANDARDS FOR MULTIFAMILY RESIDENTIAL AND RESIDENTIAL MIXED-USE DEVELOPMENT, AMENDING SECTION 17.32.030

RESIDENTIAL ZONE USES, AMENDING SECTION

17.36.020 COMMERCIAL ZONE USES, AMENDING
SECTION 17.40.030 MIXED-USE ZONE USES, AND
AMENDING SECTION 17.56.090 HOUSING OVERLAY TO

ADD CERTAIN SITES PREVIOUSLY IDENTIFIED IN THE

HOUSING ELEMENT, IN ACCORDANCE WITH CALIFORNIA
HOUSING LAWS AND THE CITY OF SAN CLEMENTE’S
CERTIFIED HOUSING ELEMENT; AND FINDING THAT THE

ZONING AMENDMENT IS EXEMPT FROM CEQA PER THE

COMMUNITY PLAN EXEMPTION PURSUANT TO PUBLIC
RESOURCES CODE SECTION 21083.3 AND CALIFORNIA

ENVIRONMENTAL QUALITY ACT GUIDELINES SECTIONS
15183, 15060(C) AND 15061(B)(3)
WHEREAS, in 2017, the Housing Accountability Act (“HAA”) was significantly strengthened through the passage of three bills, Senate Bill (“SB”) 167, Assembly Bill (“AB”) 678, and AB 1515. These bills were part of a comprehensive group of laws enacted to address California’s housing shortage. This signaled a significant shift in the focus of the state’s housing policies from planning to production. In 2018, AB 3194 further amended and strengthened the HAA. As clarified by AB 3194, when there are inconsistencies between the General Plan and zoning regulations, the General Plan policies take precedence; and WHEREAS, on January 1, 2018, SB 35, intended to help address California’s housing shortage, went into effect, requiring a streamlined and ministerial review process for multi-family housing projects meeting specific qualifications; and WHEREAS, on January 1, 2019, AB 2162, intended to help address California’s need for supportive and emergency housing, went into effect, requiring a streamlined and ministerial review process for supportive housing meeting specific qualifications; and WHEREAS, on January 1, 2020, SB 330, intended to create certainty in the development of housing projects, went into effect, speeding up the review of these project, and created restrictions on new local regulations; and
WHEREAS, on January 1, 2022, SB 9 went into effect, that requires cities to ministerially approve, within single family residential zones, housing developments containing no more than two residential units and parcel maps for urban lot splits; and 53 Ordinance 1784 Page 2
WHEREAS, with certain limitations, the above-referenced laws permit the City to impose design standards on housing projects, so long as those standards are objective and involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. Staff developed the “Objective Design Standards for Multi-Family Residential and Residential Mixed-Use Development” (referred to as “Objective Design Standards”) to ensure new development maintains the unique character and quality of design expected within the City of San Clemente, while providing the City an avenue to process permits for qualifying projects administratively; and
WHEREAS, the City Council adopted the Housing Element Update on September 20, 2022 in accordance with State law and before the deadline of October 2022; and WHEREAS, the Department of Housing and Community Development (HCD) certified the City’s Housing Element on October 12, 2022; and WHEREAS, on September 20, 2022, as part of its action on the Housing Element, the City Council certified Program Environmental Impact Report SCH No. 2021020256 (“Housing Element and Safety Element EIR”) pursuant to the California Environmental Quality Act (“CEQA”), approved mitigation measures, and adopted a Statement of Overriding Considerations; and
WHEREAS this Ordinance, through the Zoning Amendment attached as Exhibit A, amends the San Clemente Municipal Code (SCMC) by adding Chapter 17.26 and amending Sections 17.32.030, 17.36.020, 17.40.030, and 17.56.090 with Objective Design Standards, zoning table amendments, and a Housing Overlay, that implement the requirements of State housing laws and the City of San Clemente’s certified Housing Element to effectuate the City Council’s directives on the same; and
WHEREAS, on September 27, 2023 and January 24, 2024, the Design Review Subcommittee (DRSC) conducted public hearings on the Housing Action Plan, focused on whether multiple drafts of the Objective Design Standards encompass all architectural features and design elements related to four architectural styles specified in the City’s Design Guidelines and Specific Plans, with specific numerical standards necessary to facilitate administrative review; and
WHEREAS, on March 8, 2024, the Planning Commission conducted a duly noticed study session to consider a presentation by staff and public testimony concerning the Housing Action Plan items including the Objective Design Standards, zoning amendments, and the Housing Overlay; and
WHEREAS, on May 8, 2024, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the Ordinance, provided direction to staff, and continued the hearing; and 54 Ordinance 1784 Page 3
WHEREAS, on October 2, 2024, the Planning Commission conducted the continued the public hearing to consider the staff report, recommendations by staff, and public testimony concerning the Ordinance, and recommended that the City Council approve the Ordinance and amend the zoning code; and
WHEREAS, on November 7, 2024, the City duly gave notice of a public hearing to be held by the City Council to consider this Ordinance by advertisement in a newspaper of general circulation; and
WHEREAS, on November 19, 2024, the City Council City Council held a dulynoticed public hearing and heard and considered the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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

Section 1. Incorporation of Recitals.

The City Council hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the City Council as fully set forth in this Ordinance.

Section 2. Compliance with the California Environmental Quality Act.

Based upon its review of the entire record, including, but not limited to, the staff report, any public comments or testimony, and all related information presented to the City, and the facts outlined below, the City Council finds the SCMC amendments included in the Ordinance are exempt from CEQA and/or not subject to further environmental review pursuant to Public Resources Code (PRC) Section 21083.3 and CEQA Guidelines Section 15183, as well as Guidelines Sections 15060(C) and 15061(B)(3). Since the project would adopt development standards consistent with the land uses and development intensities analyzed in the certified EIR for the Housing Element Update, the SCMC amendments are eligible for the Community Plan exemption from CEQA pursuant to PRC Section 21083.3 and CEQA Guidelines Section 15183.

Additionally, the project is covered by the general rule that CEQA applies only to projects which have the potential to cause a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment, the project is not subject to CEQA. The proposed zoning amendment involves a policy action that is administrative in nature, related to the requirements to implement Housing Element Programs. Therefore, it can be seen with certainty that there is no possibility that this project may have a significant effect on the environment and is not subject to CEQA. It is not possible to predict which properties in 55 Ordinance 1784 Page 4
the City, if any, may be proposed to be developed with a project that is subject to the Objective Design Standards and Housing Overlay, whether any development or density will result from the proposed changes, whether any development or density will result that would not already have occurred under the existing Zoning Ordinance, whether any project may elect to submit eligible projects, or any possible significant environmental impacts peculiar to the adoption of the Housing Action Plan updates, and therefore will not result in any direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines Section 15060(c).) Finally, the project can be seen with certainty based on review of the facts to have no possible significant effect on the environment, including impacts to water or traffic (CEQA Guidelines Section 15061(b)(3).) Section 3. Zoning Amendment Findings.

The City Council finds the following with respect to the Zoning Amendment ZA24- 193 attached hereto as Exhibit A, amending the SCMC:

A. The Zoning Amendment is consistent with the General Plan, in that:

1. The Amendment improves the effectiveness of processes that directly implement goals and policies Centennial General Plan (as adopted on February 14, 2014 and by subsequent amendments thereafter including the Housing Element adopted in 2022) pursuant to Government Code Section 65860(c);

2. The Objective Design Standards are consistent with the Land Use Element of the General Plan. Specifically, Land Use Element Policy LU-1.03 provides that the City should maintain neighborhood character by maintaining elements that unify and enhance the character of neighborhoods, including parkways, street trees, and compatible setbacks. This Ordinance is consistent with—and effectuates—Policy LU-1.04 by ensuring that projects within the Housing Overlay implement designs to convey a high level of architectural and landscape quality in accordance with the Urban Design Element and Zoning Code, and in consideration of the following: a) varied and distinct building elevations, facades, and masses (avoiding undifferentiated "box-like" structures); b) building scale and massing that is compatible with existing development; c) use of extensive site landscaping to complement the architectural designs of structures; d) reduced area and width of paving in front yards for driveway and garage access; and e) location and design of garages so that they do not dominate the appearance of the dwelling from the street. Collectively, this will facilitate housing projects with a variety of housing types, styles and densities in the City.

3. The Ordinance is consistent with, and in furtherance of, the General Plan as it implements Housing Action Plan programs identified in the City’s Sixth Cycle Housing Element, including the Objective Design Standards, Housing Overlay expansion to include parcels previously identified in the Housing Element, and zoning land use table changes to authorize Qualifying 56 Ordinance 1784 Page 5
Affordable Housing Development Projects and senior housing in medium and high density residential, commercial, and mixed-use zones.

B. The Zoning Amendment adopting the Objective Design Standards and amending the land use provisions of the zoning code as reflected in Exhibit A will not adversely impact the public health, safety, and welfare since they further the Centennial General Plan objectives of (1) meeting community values, needs, and conditions; (2) guiding long-term public and private land use, transportation, economic development, resource preservation, urban design, and other public policy actions; and (3) reflecting the Planning Commission’s review, direction, and independent judgement regarding land use. Adoption of this Ordinance is also consistent with—and contemplated by—the City’s Sixth Cycle Housing Element, the adoption which the City Council determined will not adversely impact the public health, safety and welfare. For these reasons, adoption of this Ordinance will not adversely affect the public health, safety, and welfare.

Section 4. SCMC Code Amendments. Title 17 (Zoning) of the San Clemente Municipal Code is hereby amended as set forth in Exhibit A, attached hereto and incorporated herein fully by reference.

Section 5. Severability.

If any section, subsection, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity or enforceability of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, and phrases would be declared invalid or unenforceable.

Section 6. The City Clerk shall certify to the passage of this Ordinance and publish the same in the manner required by law, and this Ordinance shall take effect as provided by law.

APPROVED, ADOPTED AND SIGNED this ___ day of _____________, _______.

ATTEST:
_______________________________ ___________________________ City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
57 Ordinance 1784 Page 6

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1784 having been regularly introduced at the meeting of __________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the ________________of _______________, _________ and said Ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _________ day of_______________, 2024 __________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
___________________________
Elizabeth A. Mitchell, City Attorney
58 Exhibit A: Zoning Amendment ZA24-193
Chapter 17.26 is proposed to be added to the Zoning Code in its entirety, as included on pages 2-26 of this Exhibit. Beginning on page 27 of this Exhibit, language proposed to be deleted from the Zoning Code is identified in strike-through. Language proposed to be added to the Zoning Code is identified in underline. Within the zoning tables, land uses with proposed revisions to permitted or conditional uses are identified in red text within each row in addition to strikethrough and underline within specific cells. (follows this page)
59 Exhibit A – Zoning Amendment ZA24-193

Zoning Code Chapter 17.26 Objective Design Standards for Multi-Family Residential and Residential Mixed-Use Development

17.26.010 Purpose and Intent.

The State of California continues to enact new laws that accelerate housing production by streamlining the approval of housing development at the local level. The Objective Design Standards supplement the development standards of the City of San Clemente Zoning Code and further the goals, policies, and implementation of the General Plan, which encourages an elevated design and fosters an enhanced quality of life through the built environment. The Objective Design Standards provide architectural and site design requirements for new multifamily residential and residential mixed-use development.

17.26.020 Applicability.

A. The design standards of this chapter apply to any project that is reviewed under the procedures set forth in the zoning code. The following multi-family residential projects qualify for ministerial review under the Objective Design Standards only, without the requirement for discretionary review or consideration of other design standards:

1. Affordable Housing and Senior Housing Projects, consisting of efficiency, studio, one-, two-, three-, and/or four-bedroom units, which meet the requirements of a “Qualified Affordable Housing Development Project” pursuant to Zoning Code Section 17.56.090 (Housing Overlay) and accompanying map.

2. Other multi-family residential development projects, where such use is permitted in the applicable zoning district and subject to ministerial processing pursuant to California Government Code Section 65913.4.

3. Any other housing-related project that qualifies for objective, ministerial, or administrative review pursuant to State law.

17.26.030 Development Project Review.

Multi-family residential development projects shall be reviewed consistent with the procedural and development requirements of Zoning Code Section 17.56.090 (Housing Overlay) or relevant State law, subject to the Objective Design Standards of this section. Projects meeting the applicability provisions are eligible for ministerial review and are statutorily exempt from environmental review pursuant to CEQA Section 16268. A Coastal Development Permit shall be required for projects within the Coastal Zone.

17.26.040 Development Allowances to Meet Housing Element Density Goals.

In order to ensure that there is potential for multi-family residential development projects within the Housing Overlay and for other projects subject to ministerial review to obtain the maximum density allowed pursuant to the Zoning Code, certain development allowances shall apply, in addition to any allowances or exceptions authorized by State law. These allowances shall apply to multi-family residential development projects on sites with identifiable constraints, which based 60 Exhibit A – Zoning Amendment ZA24-193

on a strict application of the Zoning Code could not be feasibly developed with 100% of the number of units allowed.

A. The minimum unit size within the Housing Overlay shall be 190 square feet, consistent with the “efficiency unit” category of accessory dwelling unit referenced in Zoning Code Section

17.88.030. No maximum unit size shall apply but the economic incentive to provide large units shall not be accepted as justification that it would be infeasible to provide the maximum number of units on a site.

B. Multi-family residential development projects shall conform to the development standards that apply to the underlying residential zoning district, mixed-use zoning district, or commercial zoning district in which the project is located, with the following exceptions:

1. The number of required vehicle parking spaces may be reduced to a minimum of one space per residential unit, or fewer spaces if the residential development is within ½ mile of public transit as defined by California Government Code Section 65863.2, in order to maximize housing density.

2. The required landscaping area may be provided at grade, in planter boxes, or as vertical planting on walls such as vines on a trellis, planting in gabions, or mounted plant boxes. Vertical planting area is calculated as wall surface area covered with plant material based on expected plant size at maturity, with vine specimens being expected to cover 10 square feet even if smaller at the time of planting.

17.26.050 Objective Design Standards.

A. Site Design Standards.

1. Open Areas. New development shall provide usable residential open areas (as defined by Title 17, Section 17.88 (Definitions), subject to the following standards. a. The greater of 60 square feet per residential unit or 20% of the total lot area shall be used for open areas; setback areas may be used to meet the open area requirement.

2. Parking Location, Access, and Design
a. Parking Location. Locate parking areas to the rear or internal locations of the property, using alley access where an alley exists. Where site conditions of severe topography or biological resources prevent parking areas from being located to the rear of the property, the following standards apply:
i. Locate parking areas to the interior side with a maximum horizontal dimension measured parallel to the sidewalk of 65 feet and setback 10 feet from property lines and 5 feet from the face of buildings. ii. Street frontage of a single parking area shall be limited to one double row with circulation aisle (65 feet maximum length still applies). A building shall be sited beyond the street fronting parking area before additional parking row(s) are added.
61 Exhibit A – Zoning Amendment ZA24-193

iii. The setback area shall be fully landscaped in accordance with Section

17.26.050(A)(4), unless used as a pedestrian walkway. If a pedestrian walkway is proposed, the walkway shall be a minimum width of 5-feet along the entire length of the setback area and be constructed of firm, stable, and slip-resistant materials (e.g., poured-in concrete), permeable paving, or concrete pavers.
b. Parking Access and Driveways. The number of driveway openings to public streets shall be limited to 1 driveway opening per 150 linear feet of lot area abutting a public street (street frontage). This limit does not apply to access from alleys.

Private street or alley access shall serve as the primary vehicular access to parking areas, if available. If not available, then public streets may provide access. When access is possible to access a site from more than one public street, use the street with the least traffic volume.
c. Internal Circulation (Larger Development). Larger development, defined as multifamily developments(30+ units) and mixed-use developments (10,000 square feet and larger), that proposes internal circulation (i.e., sidewalks, streets, and drives) internal to the site shall be subject to the following circulation standards. i. Align new streets and sidewalks with existing streets and sidewalks.

Connected sidewalk(s), shared driveways, shared access drives, or shared parking count toward this requirement.
ii. Provide a sidewalk on at least one (1) side of a private drive. The sidewalk shall be a minimum width of 5-feet along the entire length of the drive, compliant with Americans with Disabilities Act standards, and shall be constructed of firm, stable, and slip-resistant materials (e.g., poured-in concrete), permeable paving, or concrete pavers.
iii. Create landscaped buffer of minimum 5-feet between the buildings and the private drive(s) that include groundcover and shrubs a maximum of 30- inches in height after two years of growth and one (1) tree per 25 linear feet of adjacent building elevation.
d. Parking Design.
i. Parking Structures. Structured parking provides parking within a structure below, at, or above grade. If a parking structure is proposed, the following standards shall be required.

1. Locate parking structures to the rear or interior portions of the property. Where site conditions related to severe topography, or biological resources prevent a parking structure from being located to the rear or interior portions of the property:
a. Place the short dimensions of the parking structure at the street edge, measured horizontally from the street fronting 62 Exhibit A – Zoning Amendment ZA24-193

width of the garage and vertically from the ground to the top of the structure.
b. Utilize vertical planting on the portions of the parking structure along street frontage. If vertical planting including vines and trees planted within 5 feet of the building façade or along the building facade does not restrict at least 50% of the total view of the parking structure as observed from any street frontage, then architectural features, false facades, and/or screening devices shall be provided.
c. When the structure will serve a mixed-use development, locate storefronts, offices, or other commercial space along the ground level of street frontage. When this is not
possible, provide one of the following:
i. Parking structure with an integrated ground floor
shop.
ii. Parking structure with a planted visitor serving patio space that covers at least 50% of the horizontal
street frontage(s).
d. Garage entries, loading and service entries, utility rooms, stairs, elevators, and other similar elements shall occupy no more than 20% of the width of a building façade that fronts a public street.
ii. Parking Courts. A parking court is a type of parking area where parking is provided between the street and the building. Where 50 or more parking total parking stalls are proposed, then portions of those stalls shall be broken up within smaller parking courts in accordance with the following standards:

1. Parking courts shall consist of 25 or fewer spaces.

2. Parking courts shall be physically separated from each other using building structures, landscaped areas including parking diamonds, or pedestrian walkways.
iii. Parking Drives. A parking drive is a paved way located outside the public right-of-way that provides vehicular access between the street and parking area, that also incorporates open parking spaces, carports, or garage doors along the length. If parking drives are proposed, the following standards shall be required.

1. Arrange parking in bays. Separate each 8 spaces of continuous perpendicular or angled parking from others by planting areas not less than one parking space wide.
63 Exhibit A – Zoning Amendment ZA24-193

2. In Multi-family projects over 30 dwelling units, the location of Parking Drives shall be internal to the site and not located around the periphery or edge of the site adjacent to public street(s) where visible from public view.
iv. Covered Parking. When covered parking is required pursuant to Section

17.64.050 (Off-Street Parking Requirements by Land Use), then covered parking shall be provided by means of garages, carports, and trellised canopies.

1. Carports and garage door openings shall not be located adjacent to the primary street unless there is no other driveway access available onsite for parking.

2. When visible from the public street frontage, covered parking entrances shall be recessed by a minimum of 18 inches from the street-facing elevation and be accompanied by projecting elements such as porches, windows, trellises, architectural ornament, or landscaping. An extended or projected feature shall project a minimum of 2 feet and run horizontally for a minimum depth of 4 feet.

3. Garage entries, loading and service entries, utility rooms, stairs, elevators, and other similar elements shall occupy no more than 20% of the width of a public street facing building façade.

3. Streetscape Design.
a. Sidewalk Design. New development shall provide a sidewalk, measured from the front property line to the planned curb, in the entire area within the public right of way that is not dedicated to vehicle and bicycle circulation or other planned improvements, which may include street furniture and trees. Sidewalk materials and construction shall be provided as per City standard in consultation with Public Works staff. The walking surface shall be concrete finish in accord with the City Standard, with the exceptions for use of Historic Tile Sidewalk Materials specified in Zoning Code 12.08.030
b. Development proposed in a Pedestrian District shall provide widened sidewalk spaces for pedestrian seating and planting at select mid-block and corner locations. These improvements may be implemented by a future City streetscape program, or individually with new developments. Developers shall incorporate the required sidewalk space into the project plans and work with the City to determine if the project location is suitable for this type of improvement as part of the project or as part of a future City streetscape program.
c. Street Lighting. Street lighting shall be provided as per City Standard in consultation with Public Works staff. The single lamp fixture shall be used on all 64 Exhibit A – Zoning Amendment ZA24-193

streets in the Pedestrian District except for El Camino Real. A double lamp fixture shall be used on El Camino Real.
d. Street Furniture. Street furniture means the functional elements, objects, and pieces of equipment installed and mounted along streets including public art, seating benches, fountains, planters and planting pots, bicycle parking, and bins and trash containers. If proposed, street furniture shall only be located in widened sidewalk spaces that are more than 12 feet in width.

4. Landscaping. In addition to landscape standards contained in Chapter 17.68 (Landscape Standards) of the Zoning Code, projects shall conform to the following standards. a. Site Interior/Yard Planting. Landscaping shall be utilized for all required front, side, and rear yard areas that are not specifically used for parking, driveways, walkways, or open space (private, common, and pedestrian space) in accordance with the following standards.
i. Landscaping shall include groundcover and shrubs a maximum of 30-inches in height, after two years of growth, and one tree (minimum 24-inch box size) provided for each 300 square feet of yard area. Trees shall be spaced at a minimum of 25 feet on center.
ii. Projects shall utilize plant materials that are drought tolerant and primarily native to Coastal California, such as those identified in in Appendix A – Plant Selection Guide.
b. Parking Area Landscaping. In addition to standards contained in Section 17.64.060 (Design Standards for Off-Street Parking Facilities) of the Zoning Code, projects shall conform to the following standards, in addition to site line standards imposed by the Engineering Department required for vehicle safety. i. Perimeter Landscaping. Perimeter landscaping shall be provided to visually screen off-street surface parking areas from the public street view, adjacent properties, and open space (private, common, and pedestrian space).

Screening shall be in accordance with the following standards.

1. Screening shall be provided by planting or a combination of planting and low solid walls or earth berms up to 42 inches high. a. Screened perimeter areas shall be 10 feet deep along public streets and 5 feet deep along interior property lines.
b. Solid walls used for screening shall be accompanied by a minimum 5-foot-wide landscaped edge between the
property line and the wall, facing the street.
c. Landscaping shall include groundcover and shrubs a
maximum of 30-inches in height after two years of growth and one tree (minimum 24-inch box size) provided for each 300 square feet of perimeter area between the property
65 Exhibit A – Zoning Amendment ZA24-193

line and the parking area. Trees shall be spaced at a
minimum of 25 feet on center.
ii. Interior Landscaping. For surface parking lots greater than 5,000 square feet, an internal area of at least 10% of the total parking area shall be planted with a combination of trees and shrubs in accordance with the following standards.

1. Tree spacing shall be such that every designated parking space is within 30 feet of the trunk of a tree (minimum 24-inch box size).

Landscaped fingers or “planted breaks” may be used.

2. If palm trees are used for interior landscaping, then other tree species with large canopies shall also be used.

3. Projects shall utilize plant materials that are drought tolerant and primarily native to Coastal California, such as those identified in Appendix A – Plant Selection Guide
iii. Street Trees. Street trees along public streets shall be provided in consultation with Public Works staff and shall consist primarily of drought tolerant species native to Coastal California, such as those included in Appendix A – Plant Selection Guide.

1. Street trees shall be provided at an interval of 25 feet along the entire length of the property line adjacent to a public street, except where driveway or utility locations prohibit placement.

2. Street trees shall be planted with enough distance from the curb so a parked car door can open without hitting the tree.

3. Provide a 4-foot by 4-foot planting space or well under each tree.

4. The ground surface of the planting space or well shall be level with the sidewalk.

5. Use stone blocks or steel grates as approved by the City.

6. Low precipitation and drip-type systems shall be installed.

5. Building Equipment and Service Areas
a. Ground-Mounted Equipment on Private Property. Ground-mounted equipment, such as air conditioning units, landscape irrigation's controls, transformers, fuse boxes, telephone equipment, gas meters, water meters, stand pipes, and fire sprinkler connectors, shall be located underground if within the front yard setback, or screened from public view if outside the front yard setback. When no front yard setback is required, ground mounted equipment should not be located in the area between the street and the building closest to the street. b. Where ground-mounted equipment cannot be located outside the front yard due to topographical, biological, or minimum building density constraints, ground-mounted equipment located in the front yard shall be located where not visible from public view or shall be screened from public view. Screening of 66 Exhibit A – Zoning Amendment ZA24-193

ground-mounted equipment must be designed and constructed similar to adjacent landscaping, architecture and/or materials.
c. Roof-Mounted Equipment. All roof-mounted appurtenances including, but not limited to air conditioning units, and mechanical equipment shall be shielded and architecturally screened from view from on-site parking areas, adjacent public streets, and adjacent residentially zoned property. It shall be located in an equipment well which is screened by a screening wall, parapet wall or equipment well. The height of such equipment, mounted in the well, shall not exceed the height of the architectural element used to screen the well. To the extent that topographical, biological, or minimum building density constraints make the placement of equipment and screening as required above infeasible, visibility of equipment and screening shall be minimized to the greatest extent feasible.

Roof screens shall be sheathed in a matching or complementary material to the exterior building and may include metal panels, parapet walls or screens constructed of exterior grade plywood or other durable materials.

6. Outdoor Lighting All outdoor lighting shall comply with the following standards. For specific lighting requirements related to architectural styles, see Section 17.26.050(C). a. Step Lighting.
i. All step lighting within the residential development must incorporate a grate cover or directional light shield cover to direct and focus the emitted light towards the ground surface.
ii. The grate cover or directional cover must be constructed of durable and weather-resistant materials, meeting ASTM standards for outdoor use, to ensure longevity and performance in various environmental conditions. iii. The design of the grate cover or directional cover shall align with the overall architectural aesthetics of the development while prioritizing functionality and safety.
b. Exterior Light Fixtures.
i. Street facing Exterior light fixture illumination must be downward directed, limited to spillover within the property boundary, and employ light diffusion techniques, such as specialized glass treatments or diffusers, to evenly distribute and soften the emitted light.
ii. The glass treatments applied to exterior light fixtures shall adhere to industry-standard light transmission and diffusion properties, ensuring optimal illumination without causing glare or light pollution. iii. Light diffusion materials must be resistant to discoloration or degradation caused by environmental factors, guaranteeing consistent performance over time.
iv. Exterior light fixtures shall be selected based on the principles of sustainable lighting design, incorporating energy-efficient technologies and compliant with ENERGY STAR requirements.
67 Exhibit A – Zoning Amendment ZA24-193

v. The color temperature of exterior light fixtures shall align with recommended guidelines to create a visually comfortable and harmonious outdoor environment for residents and passersby.
vi. Lighting that is directed at neighboring properties is not permitted.

7. Signage. Sign design shall be consistent with the following standards:
a. Construction
i. Signs shall be constructed as to not obstruct line of sight for pedestrians, bicyclists or vehicular drivers.
ii. All permanent sign faces shall be constructed of permanent materials including, but not limited to, painted and/or sandblasted wood, ceramic tile, applied letters, carved wood, metal, plastic or other compatible, durable and waterproof material. No material more combustible than treated wood shall be used in the construction of any permanent sign. iii. All signs shall be constructed in accordance with all applicable Uniform Building Code and National Electrical Code provisions.
iv. Sign support hardware shall be of a compatible material with the sign it supports and shall complement the architecture and design of building to which it is affixed.
v. Signs shall be designed and oriented to minimize light or glare upon adjacent residential properties and public rights-of-way. b. Lighting of Signs
i. Electrical lines from buildings to signs shall be concealed from public view. Exposed raceways are prohibited.
ii. Light fixtures in planted areas or within support structures shall be screened so that light spillover is restricted to the sign area. iii. All external lighting shall be directed away from any adjacent residential uses and public rights-of-way.
iv. Internally lighted signs shall be a maximum of 200,000 lumens. v. Front lit channel letters shall be employed rather than halo lighted signs. c. Landscaping
i. Landscaped planters shall be required to be installed at the base of all permanent freestanding signs.
ii. The area of the landscaped planter shall be at least equal in size to the area of two sign faces for pole signs and one sign face for monument signs.
iii. All landscaped planters shall be irrigated and landscaped with living plant material. Drought tolerant, low maintenance plants shall be utilized wherever possible.
d. Signage size and location shall comply with the objective requirements of Section

17.84 (Sign Regulations).

B. Building Design Standards.

1. Building Form and Massing.
68 Exhibit A – Zoning Amendment ZA24-193

a. Scale down the street-facing facades of buildings more than two stories high in order to reduce apparent height. Achieve this by stepping back the third story and any additional stories at least 10 feet from the street-facing property line, or 5 feet beyond the lower street-facing portion of the building face, whichever setback is greater. The third story stepback is not required to be uniform. A variety of methods to achieve the stepback may be used.
b. Buildings over two stories in height that have frontages on a common open space or courtyard shall have their top story set back at least 5 feet from the building face at the courtyard.
c. For buildings with 2 or more stories, the first floor shall have the tallest plate height by a minimum of 10% higher than any other plates.
d. Buildings on sloping lots shall step down with the topography of the slope, where visible from public view, unless such design would make it infeasible to achieve the maximum density given the size of the lot.
e. Building frontages on public streets shall include defined projecting or recessed architectural elements such as building or unit entrances, bays, bay windows, stair towers, balconies, verandas, porches, trellises, overhangs, and loggias count toward this requirement. Such elements shall occur at a minimum of every 30 feet and each story shall have at least two of the following features:
i. A recessed feature that has a minimum depth of 6 feet used to define courtyards, entries, balconies, porches, loggias, or other outdoor spaces along the perimeter of the building.
ii. An extended or projected feature that projects a minimum of 2 feet and runs horizontally for a minimum depth of 4 feet used to emphasize architectural elements such as entrances, bays, stair towers, balconies, and verandas.
iii. Offsets of façade or roof line of 2 feet or greater in height. f. Roof lines shall not extend horizontally by more than 20 feet in length without at least one prominent change as described below.
i. Provide variation in roof height of at least 24 inches measured from the highest point of each roof line. Variation in roof height shall be accompanied by plan offsets.
ii. Provide variation in roof form such as gable, hipped, shed, or parapet, pitch (i.e., low to medium), or orientation. Variation in roof orientation shall be accompanied by plan offsets.
iii. Provide variation in architectural elements such molding, cornices, eaves, overhangs, corbels, and brackets.

2. Building Entrances. Entrances shall be oriented in accordance with the following standards.
a. Mixed-Use Buildings.
69 Exhibit A – Zoning Amendment ZA24-193

i. Buildings located adjacent to public streets shall have primary (main) pedestrian entrances for commercial uses oriented to face adjoining street(s).
ii. Buildings not located adjacent to public streets shall have primary (main) pedestrian entrances for commercial uses oriented to face parking areas, walkways, or open space such as courtyards or plazas.
iii. Buildings with more than 100 linear feet of public street frontage shall provide at least one building entrance for each 100 linear feet. iv. Entrances shall be recessed a minimum of 2 feet from the sidewalk rightof-way. v. Entrances shall be clearly recognizable from the street using one or more of the following methods:

1. Awnings or canopies above an entry with an 8-foot minimum height above the finished grade.

2. Architectural elements such as columns, porticos, overhanging roofs, or ornamental light fixtures.
vi. When non-residential and residential uses are in a vertical mixed-use structure, separate pedestrian entrances shall be provided for each use. vii. The entrance to residential portions of the building or additional commercial suites (upper floors) shall be accessed through a street level lobby, architecturally integrated entry corridor, from an adjacent alley, or from an internal parking area.
b. Multi-Family Residential Development.
i. Each unit entrance shall have a non-obstructed, direct sightline either toward the street or to an interior or exterior open space on the site such as verandas, open passages, outdoor courtyards, or gardens, or parking areas.
ii. When an outdoor courtyard or garden is used as an entrance to dwellings, the courtyard or courtyard entry shall open directly to the public street and sidewalk adjacent to the site.

3. Building-Street Edge. The building-street edge is defined as the configuration of buildings and open spaces along the street frontage of the site. Where a multi-story development is proposed, one of the following building-street edge configurations at the ground level shall be used.
a. Continuous uninterrupted building edge at the sidewalk for the length of the street frontage.
b. Continuous uninterrupted building edge with recessed or projected covered walkway, pedestrian plaza, courtyard, or a combined building and pedestrian open space (e.g., patio or veranda), built to the sidewalk for the length of the street 70 Exhibit A – Zoning Amendment ZA24-193

frontage. Any proposed recessed or projected features shall conform to Section

17.26.050(B)(1)(d)(i-ii).
c. A combination of building, pedestrian open space, and parking frontage, parallel to the sidewalk for the length of the street frontage. The street frontage of a single parking area shall be limited to one double row with circulation aisle (65 feet). A building or building element shall occur before an additional parking row is added. All parking areas shall be setback at least 10 feet from front and side street property lines, with the setback area fully landscaped.

4. Additional Building Design Standards Applicable to Mixed-Use Buildings. a. Storefront Transparency. All glass in windows and doorways shall be 90 percent clear for maximizing visibility into stores. A minimal amount (2 to 3 percent) of neutral tinting of glass to achieve sun control is acceptable if the glass appears essentially transparent when viewed from the outside. Opaque, reflective, or dark tinted glass that obstructs interior views at the street level is prohibited. b. Public Realm. At least 50 percent of the building frontage facing a public street, primary pedestrian way, or parking lot shall be devoted to pedestrian-oriented features (e.g., storefronts, pedestrian entrances to nonresidential uses; transparent display windows; landscaping).

C. Architectural Design Districts. There are distinct architectural styles and patterns of design that comprise San Clemente’s character. These are represented in four Architectural Design Districts: Spanish Colonial Revival, Mission, Los Molinos, and Surf Zone. All new development proposed within an Architectural Design District identified in Figure 17.26.050(C)shall comply with the standards for the applicable Architectural Design District. 71 72
Exhibit A – Zoning Amendment ZA24-193

1. Spanish Colonial Revival.
a. Background. The original architecture of San Clemente is expressive of the founder's vision of a "Spanish Village by the Sea" The historic image and identity of the community is reinforced through the design of buildings and gardens that reflect the traditions of California's Spanish Colonial Revival. b. Applicability. Properties designated as Spanish Colonial Revival on Figure 1 shall comply with the architectural design standards contained in this section, which are excerpted from the Henry Lenny Guidelines and interpreted in the context of the Henry Lenny Design Guidelines if a standard in this section is unclear. Properties designated as SCR or Mission on Figure 1 have the option to comply with either of the architectural design district standards. Development identified as Spanish Colonial Revival shall comply with these standards.
c. Form and Massing
i. Building facades shall be asymmetrical by incorporating:

1. A minimum of 2 or more roof planes; and

2. A minimum of 1 vertically oriented element (e.g., elements that are built upwards) and 1 horizontally oriented element (e.g., elements that are longer than they are tall).
ii. For buildings with 2 or more stories, the first floor shall have the tallest plate height, by a minimum of 10% higher than any other plates. d. Roof Design.
i. Roof Configuration. The following configurations are permitted.

1. The structure’s primary roof element shall be gabled, hipped, and shed roofs.

2. Flat roofs as accents on elements of the main building, such as roof decks, porches, and colonnades. Where visible from public view, flat roofs shall have a color and material that matches the tile used on pitched roofs on the same structure. This requirement does not apply to parapet walls which may be a different material.

3. Roof pitch shall be 3:12 or greater.
ii. Roof Materials. The following materials are permitted.

1. Terra cotta flat or barrel tiles.
iii. Roof Elements. Roofs shall incorporate ridges, hips, valleys, rakes, and eaves subject to the following standards.

1. Ridges. A horizontal line of intersection at the top between sloping planes of a roof.
a. Ridge tiles shall cap all adjacent roof sections and be packed with mortar.
b. Three to four booster tiles shall be used at the ends. 73 Exhibit A – Zoning Amendment ZA24-193

c. All flashing and waterproofing membrane materials shall be hidden from public view.

2. Valleys. A valley is an intersection of two inclined roof surfaces, toward which rainwater flows. Valleys shall be of either type:
a. A standard/cut valley treatment where tiles are cut and secured to the roof leaving a straight path for water to shed. b. A woven valley treatment where tiles are weaved back and forth across the midpoint from both sides of the valley.

3. Rakes. A rake is the inclined, occasionally projecting, edge of a sloping roof. On a tile roof, tiles shall be rolled over rakes in at least one of the following ways:
a. Plain rake-to-wall transition.
b. Slaked stucco to encapsulate the tile.
c. Rake terminated with rafter tail or cornice.

4. Eaves. An eave is the overhanging lower edge of the roof. a. Eaves shall have exposed rafter tails with spacing of no more than three times the width of the rafter.
b. Construct corbels/brackets of stone, wood, or stucco.

Carvings shall be a classical profile such as an ogee, cyma recta, or cyma reversa.
c. Bird stops shall be of mortar with weep or drain holes. iv. Roof drainage systems shall blend into the building through utilization of at least one of these systems:

1. Rain gutters shall either be cornice gutters (as referenced in the Henry Lenny Design Guidelines) or copper round gutters.

2. Downspouts shall be copper and vertical from the roof or gutter to the ground. When a downspout engages the wall, a copper leader box shall be used.

3. Scuppers shall use clay tiles, spouts, sculpted faces or gargoyles, or tapered canales.
e. Exterior Walls, Ceilings, and Flooring.
i. Exterior walls.

1. Walls shall be constructed to provide the appearance of a 12-24 inch thick wall at articulation points and door/window openings.

2. The total area of solid building façade (plain wall) shall be greater than the total area of door and window openings in the wall, except at storefront locations.

3. At least 80% of rectangular wall openings shall be vertically oriented. If horizontal openings are proposed, they shall be broken up vertically by using a loggia, arcade, or mullion placement. 74 Exhibit A – Zoning Amendment ZA24-193

4. Wall Finishes. The following finishes are permitted. a. Smooth finish stucco with or without scoring. Sprayed on, mixed or textured stucco finish is not permitted.
b. Whitewashed brick.
c. Cantera stone in warm tones.

5. Wall Colors. The following colors are permitted.
a. Primary wall colors shall be white or off-white.
b. Secondary wall colors shall be white, off-white, or earth tone.
c. Accents, trim, and highlighting features shall contrast with the white, off-white, or earth tone colors (e.g., dark blue, green, and brown).
ii. Exterior Ceilings.

1. Exterior ceilings shall have a minimum clearance of 9 feet.

2. Exterior Ceilings shall be vaulted, beamed, or covered.

3. If beamed ceilings are proposed, stained wood is required.

4. Coves, beams, and vaults shall correspond with the spacing of arcades or columns.
iii. Exterior Flooring and Hardscape Surfaces. The following flooring and hardscape surfaces are permitted.

1. Brick punctuated with glazed tiles.

2. Brick in herring bone, basket weave, or soldier course pattern.

3. Terra cotta or Lincoln tile (Mexican Clay).

4. Flag stone, stand stone, or limestone.

5. Plain concrete with scoring patterns or colored concrete in sand type, non-red colors.

6. Pebble mosaic tiles in black, gray, or sand type, non-red colors.

7. French style cement or ceramic tiles.
f. Windows and Doors.
i. Window Types, Materials, and Components.

1. Permitted window types include:
a. Casement with a single pane of glass or divided.
b. Double hung.
c. Decorative (e.g., vent, round, oval, quatrefoil).

2. Glass areas shall be broken up by mullions and transoms.

3. When proposed, focal windows shall be triple-arched or windows with parabolic shaped grills of wood, iron, or other elaborations.

4. Frames and mullions shall be metal, wood, or fiberglass; painted, or stained; stucco framing is acceptable.
75 Exhibit A – Zoning Amendment ZA24-193

5. Decorative metalwork shall be traditional Spanish Colonial Revival style steel.

6. Windows shall be set toward the interior to allow the wall thickness to be revealed on the exterior of the building. Insets shall be a minimum of 4 inches.
ii. Door Types and Components.

1. Permitted door types include:
a. Wood panel with or without glass.
b. Wood and glass.
c. Fiberglass
d. Antique or found doors.
e. Plank doors.

2. Frames and mullions shall be wood, painted, or stained; stucco or tile framing is acceptable.

3. Doors shall be set back in deeply recessed and arched openings.

Insets shall be a minimum of 6 inches.
g. Exterior Lighting.
i. Lanterns, pendants, sconces, gas lamps, and other decorative fixtures of Spanish Style (i.e., geometric and angular with points and spikes) shall be used on building exteriors.
ii. Placement of fixtures shall be restricted to entrances, passageways, pedestrian spaces, and arcades.
h. Architectural Elements. If included, where visible from public view, these architectural elements shall be designed as follows.
i. Balconies and Porches.

1. Balconies and porches shall be constructed of iron or wood coated with stucco, painted, or stained.

2. Design shall be one of the following:
a. Balcony or porch with supporting posts from ground to floor.
b. Cantilevered or projecting balcony or porch with posts supporting the roof.
c. Cantilevered or projecting balcony or porch and
cantilevered or projecting roof with no supporting posts. d. Recessed balconies or porches.
e. Open balconies over porches or loggias.
ii. Colonnades and Arcades.

1. Columns and Colonnades.
a. Columns shall be round or square in shape with no capital or base.
76 Exhibit A – Zoning Amendment ZA24-193

b. Column heights shall be between 7 and 10 times its width. c. Column spacing shall be no more than 6 times its width from center to center, and no less than 4 times its width from face to face.

2. Arcades and Arches.
a. Arcades shall be located against plain surfaces.
b. Arches shall be round or semi-circular; no flat arches. c. Arches and support column shall be a minimum of 18 inches deep, with an articulated column base.
iii. Awnings.

1. Awning fabric shall be canvas in natural colors, earth tones, deep jewel tones, or black.

2. Awnings shall be designed in a triangular shape in a catenary curve, open on the sides with either a pane or decorative valance.

3. Supports shall be wrought iron or wood.
iv. Exterior Staircase.

1. The tread shall be a decorative tile, stone, paver, or finished concrete.

2. The riser at the face of each stair shall be enhanced with a decorative tile.

3. The railing can be a stepped or rounded-stucco wall, wrought iron, wood, or tile cap that is a continuation of building form. No glass or chain link is permitted.
v. Towers/Chimneys/Cupolas

1. Projections shall be used to emphasize important architectural elements such as entrances, bays, stair towers, balconies, and verandas. Elements higher up on a building, such as a tower, shall be scaled up.

2. Decorative towers, chimneys, and cupolas shall incorporate stucco, brick, terra-cotta pipe, barrel tiles, or ironwork.
i. Character Defining Features. Projects with 10 or more units shall include a minimum of 1 of the features listed below.
i. Courtyard.
ii. Patio or Plaza.
iii. Colonnades and Arcades.

2. Mission.
a. Background. The Mission architectural design district is derived from the Mediterranean region and was often used in the design of the California Missions. 77 Exhibit A – Zoning Amendment ZA24-193

Common features of Mission architecture include stucco and plaster walls, low to medium pitched roofs, columns and archways, and exposed wood features. b. Applicability. Properties designated as Spanish Colonial Revival or Mission on Figure 1 have the option to comply with either of the architectural design district standards. Development identified as Mission shall comply with these standards. c. Form and Massing of building facades shall be asymmetrical by incorporating:
i. A minimum of 2 or more roof planes; and
ii. A minimum of 1 vertically oriented element (e.g., elements that are built upwards) and 1 horizontally oriented element (e.g., elements that are longer than they are tall).
iii. For buildings with 2 or more stories, the first floor shall have the tallest plate height by a minimum of 10% higher than any other plates. d. Roof Design
i. Roof Configuration. The following configurations are permitted.

1. The structure’s primary roof element shall be gabled and shed roofs with raised parapets.

2. Hipped roofs with straight or flared eaves for towers, turrets, and belvederes.

3. Flattened or semi-circular domes on towers.

4. Pointed caps on circular towers.

5. Flat roofs as accents on elements of the main building, such as roof decks, porches, and colonnades. Where visible from public view, flat roofs shall have a color and material that matches the tile used on pitched roofs.

6. Pent eave roofs with brackets.

7. Roof dormers with gable or hipped roofs, raised parapets.

8. Roof pitch shall be 3:12 or greater.
ii. Roof Materials. The following materials are permitted.

1. Terra cotta flat or barrel tiles.

2. Standing seam metal, painted plaster, or decorative tile may be used for dome roofs.
iii. Roof Elements. Elements shall be provided as follows.

1. Roof Elements. Roofs shall incorporate ridges, hips, valleys, rakes, and eaves subject to the following standards.
a. Ridges. A ridge is a horizontal line of intersection at the top between two sloping planes of a roof.
i. Ridge tiles shall cap all gables and be packed with
mortar.
ii. Three to four booster tiles shall be used at the ends. 78 Exhibit A – Zoning Amendment ZA24-193

iii. All flashing and waterproofing membrane materials
shall be hidden from public view.
b. Hips. A hip is the inclined projecting angle that is formed by the junction of two adjacent sloping sides of a roof.
i. Hip tiles shall be capped and packed with mortar.
ii. Three to four booster tiles shall be used at the ends. iii. If no hip cap is used, ridge tiles shall lap over hip tiles. c. Valleys. A valley is an intersection of two inclined roof surfaces, toward which rainwater flows. Valleys shall be of either type:
i. A standard/cut valley treatment where tiles are cut
and secured to the roof leaving a straight path for
water to shed.
ii. A woven valley treatment where tiles are weaved
back and forth across the midpoint from both sides
of the valley.
d. Rakes. A rake is the inclined, occasionally projecting, edge of a sloping roof. On a tile roof, tiles shall be rolled over rakes in at least one of the following ways:
i. Plain rake-to-wall transition.
ii. Slaked stucco to encapsulate the tile.
iii. Rake terminated with rafter tail or cornice.
e. Eaves. An eave is the overhanging lower edge of the roof. i. Eaves shall have exposed rafter tails with spacing of no more than three times the width of the rafter.
ii. Construct corbels/brackets of stone, wood, or
stucco. Carvings shall be a classical profile such as an ogee, cyma recta, or cyma reversa.
iii. Bird stops shall be of mortar with weep or drain
holes.

2. Roof drainage systems shall blend into the building through utilization of at least one of these systems:

3. Rain gutters shall either be cornice gutters (as referenced on page 71 of the Henry Lenny Design Guidelines) or copper round gutters. a. Downspouts shall be copper and vertical from the roof or gutter to the ground. When a downspout engages the wall, a copper leader box shall be used.
b. Scuppers shall use clay tiles, spouts, sculpted faces or gargoyles, or tapered canales.
e. Exterior Walls, Ceilings, and Flooring.
79 Exhibit A – Zoning Amendment ZA24-193

i. Exterior walls.

1. Wall Thickness. Walls are subject to the following standards. a. Walls shall be constructed to provide the appearance of a 12-24 inch thick wall at articulation points and
door/window openings.
b. The total area of solid building façade (plain wall) shall be greater than the total area of door and window openings in the wall, except at storefront locations.
c. At least 80% of rectangular wall openings shall be vertically oriented. If horizontal openings are proposed, they shall be broken up vertically by using a loggia, arcade, or mullion placement.

2. Wall Finishes. The following finishes are permitted. a. Adobe.
b. Smooth or pool trowel finish stucco with or without scoring; or painted or built-up brown coat finish stucco. Sprayed on, mixed or textured stucco finish is not permitted.
c. Stone masonry such as river rock veneer on cut stone, cast stone, or foundation walls, chimneys, and front porch
balustrades.
d. Clay tile.
e. Wrought iron in Mission Revival, Arts and Crafts, or traditional design.
f. Cement plaster with spatter dash finish or sand finish. g. Wood paneling (when used for accent trim, framing, and decorative elements). Oak paneling with dropped panels on walls and soffits of a recessed main entrance.

3. Wall Colors. The following colors are permitted.
a. Light earth tone, white, or off-white.
b. Accents, trim, and highlighting features shall contrast with the light earth tone, white, or off-white colors (e.g., dark blue, green, and brown).
ii. Exterior Ceilings.

1. Exterior ceilings shall have a minimum clearance of 9 feet.

2. Exterior Ceilings shall be vaulted, beamed, or covered.

3. If beamed ceilings are proposed, stained wood is required.

4. Coves, beams, and vaults shall correspond with the spacing of arcades or columns.
iii. Exterior Flooring and Hardscape Surfaces. The following flooring and hardscape surfaces are permitted.
80 Exhibit A – Zoning Amendment ZA24-193

1. Brick punctuated with glazed tiles.

2. Brick in herring bone, basket weave, or soldier course pattern.

3. Terra cotta or Lincoln tile (Mexican Clay).

4. Flag stone, stand stone, or limestone.

5. Plain concrete with scoring patterns or colored concrete in sand type, non-red colors.
f. Windows and Doors.
i. Window Types and Components.

1. Permitted window types include:
a. Casement with a single pane of glass or divided.
b. Double hung.
c. Decorative (e.g., vent, round, oval, quatrefoil).

2. Glass areas shall be broken up by mullions and transoms.

3. When proposed, focal windows shall be triple-arched or windows with parabolic shaped grills of wood, iron, or other elaborations.

4. Frames and mullions shall be metal, wood, or fiberglass; painted, or stained; stucco framing is acceptable.

5. Decorative metalwork shall be traditional Mission style steel.

6. Windows shall be set toward the interior to allow the wall thickness to be revealed on the exterior of the building. Insets shall be a minimum of 4 inches.
ii. Door Types and Components.

1. Permitted door types include:
a. Wood panel with or without glass.
b. Wood and glass.
c. Fiberglass
d. Antique or found doors.
e. Plank doors.

2. Frames and mullions shall be wood, painted, or stained; stucco or tile framing is acceptable.

3. Doors shall be set back in deeply recessed and arched openings.

Insets shall be a minimum of 6 inches.
g. Exterior Lighting.
i. Lanterns, pendants, sconces, gas lamps, and other decorative fixtures of Spanish Style (i.e., geometric and angular with points and spikes) or Arts and Crafts style shall be used on building exteriors.
ii. Recessed lighting is permitted if the cans are treated with wrought iron or a painted shroud (wrapping around and extending vertically beyond the light bulb).
81 Exhibit A – Zoning Amendment ZA24-193

iii. Placement of fixtures shall be restricted to entrances, passageways, pedestrian spaces, and arcades.
h. Architectural Elements. See Spanish Colonial Revival. i. Character Defining Features. Projects with 10 or more units shall include a minimum of 1 of the features listed below.
i. “Companario.” A scalloped wall pierced for the hanging of bells. ii. Ornamented Openings. Lavish embellishments at entrances. iii. “Corredor.” Outdoor arcade for shaded protection, gathering, and walking. iv. Bell Tower. Tiered vertical element.
v. Quadrangle – Courtyard or Patio with water element (e.g., fountain, pool). vi. Colonnades and Arcades.

3. Surf Zone Design District.
a. Background. The Surf Zone Design District is located along South El Camino Real (East of I-5). The design standards for this area feature an eclectic mix of architectural styles, which together can be described as “Surf Zone” architecture.

This is a mixture of Contemporary, Polynesian, Australian, and Seaside/Fishing. b. Applicability. Properties designated as Surf Zone in Figure 1 shall comply with the architectural design standards contained in this section. c. Roof Design.
i. Roofs shall be a combination of at least two pitch types (e.g., steep gable roofs of 10:12 or greater and low hipped roofs of 3:12 or greater with long overhangs).
ii. Isosceles (sharp) triangular forms and shapes shall be used for the composition of gabled or hipped roofs.
iii. Wood beams shall be used to highlight roof lines and angular details including roof lines and entryways.
d. Materials and Colors.
i. Materials and Textures. A minimum of 2 different materials shall be used for building exteriors:

1. Wood: unfinished lumber, finished and coated lumber, and laminated wood.

2. Steel: stainless, corten, galvanized.

3. Masonry: brick, stone.

4. Stucco.

5. Concrete.

6. Bamboo, pill grass, sugar cane

7. Tiki style fiberglass.
ii. Base Colors.
82 Exhibit A – Zoning Amendment ZA24-193

1. The base tone of the building shall be associated with earth tones, or colors found on the beach (e.g., sandy beige and hues of soft blues, grays, and greens).

2. No two buildings shall share the same color scheme if they are next to or adjacent to each other. Adjacency does not include buildings behind primary structures or buildings across the street.

3. On walls visible from public rights-of-way with no windows or architectural features, a mural or vertical planting is permitted. iii. Accent Colors. Accent colors that contrast with the base color shall be used for front doors, window/door frames, railings, mailboxes, lettering and numbering, and other framing details. These details shall not be the same color as the building.
e. Decorative Accents and Details.
i. Awnings.

1. Fabric or cloth in an accent color that contrasts with that of the building. Awnings shall not be the same color as the building.

2. Metal or wood awnings.

4. Los Molinos Design District.
a. Background. The Los Molinos Design District is an eclectic industrial district center for the local surfing industry, manufacturing, arts and crafts, and business incubation. Most buildings with this style will be 1-2 stories in height with vaulted roofs, allowing for ample light to flood the interior of the building. b. Applicability. Los Molinos is generally defined as properties within Los Molinos Industrial Park, Bonita Canyon Park (west of Calle Bonito), and residential parcels on Avenida De La Estrella and Calle Bonita. Properties designated in Figure 1 as Los Molinos shall comply with architectural design standards contained in this section and detailed in the West Pico Corridor Specific Plan.
c. Roof Design. Roofs shall be designed subject to the following standards. i. Varied roof-pitch is acceptable.
ii. Built-up roofs shall be accompanied by parapets.
iii. Roof aggregate shall be earth tone colors (warm and muted shades of brown, gray, beige, red) and applied to cover the entire roof. iv. Metal roofing systems are acceptable with earth colors (warm and muted shades or brown, gray, beige red), or finished black, or clear coasted patina. v. Roof equipment shall be screened from public view through enclosures that match the architectural style of the primary structure and are painted to match the roof color. Equipment that contributes to the architectural character of the site and district (e.g., windmills, water towers, cisterns) are exempt from this requirement.
83 Exhibit A – Zoning Amendment ZA24-193

d. Exterior Walls, Flooring, and Signage.
i. Exterior walls.

1. Wall Finishes. Exterior walls shall have the look of raw exposed materials and textures as described below.
a. Pre-cast concrete.
b. Brick.
c. Split-faced block and ribbed finished corrugated metal (e.g., acid washed or painted).
d. Stone.
e. Steel Beams.

2. Wall Colors.
a. Earth tone (warm and muted shades of brown, gray, beige, red, blue), white, or off-white.
b. Accents, trim, and highlighting features shall contrast with the light earth tone, white, or off-white colors (e.g., dark blue, green, and brown).
c. On walls visible from public rights-of-way with no windows or architectural features, a mural or vertical planting is permitted.
ii. Flooring and Hardscape Surfaces. Project entries and interior pedestrian areas shall utilize decorative paving consisting of any of the following:

1. Brick.

2. Tile.

3. Pavers.

4. Stamped concrete.
iii. Building Signage.

1. Building signage shall appear handcrafted (i.e., not manufactured) in the style of one or more of the following sign types:
a. Projecting signs on decorative metal brackets.
b. Pinned-off metal or wooden letters applied to a wall. c. Signs painted directly on a wall, awning, or window. d. Wood sandblasted signs.
e. Handcrafted or carved signs.

2. Lighting of signs shall be shielded and indirect (versus face-lit internal letters). If external lighting is used, fixtures shall be nonobtrusive and match the architectural style of the building. 84 Exhibit A – Zoning Amendment ZA24-193

Zoning Code Section 17.56.090 Affordable Housing Overlay District A. Purpose and Intent. The purpose of this section is to provide for the development of qualified affordable housing development, including rental and for sale housing, in residential, commercial and mixed-use zones. The intent is to facilitate the development of affordable housing, enable the City to meet its housing goals, and ensure that affordable developments will be compatible with surrounding land uses by establishing an overlay district and standards.

B. Applicability. This section applies to properties in the Affordable Housing [AH] Overlay [H].

Maps. Properties are identified on the Zoning Map by a "AH" “H” label after the base zone.

For example, NC 2 (AH).

C. Project Qualification. A "Qualified Affordable Housing Development" shall mean a multi-ple family rental or for sale housing project consisting of efficiency, studio, one-, two-, three-, and/or four-bedroom units, which meets the following requirements:

1. The housing units on site shall provide at least the following percentage of affordable housing units, based on a minimum of 51 percent of the housing units for households earning no greater than 50 percent of Orange County Median Income by household size, and a maximum of 49 percent the remainder of the units may be market rate rental units or sold as market rate condominiums. i. At least 20% of the housing units are restricted to low-income households; or ii. At least 40% of the housing units are restricted to moderate-income households
All affordable housing units may be in a single category (very low, low, or moderate) or part of a mixture of affordable housing types. An in-lieu fee may replace up to ½ of a single housing that would otherwise be provided1, but shall not be used in lieu of providing actual affordable housing units on site. Once a qualifying percentage of affordable housing units have been provided, the remaining units on site may be market rate rental units or sold as market rate condominiums.
2 3. If units within a project are proposed to be sold as condominiums, then the affordable portion of the project must be sold as condominiums to a 501(c)3 nonprofit housing development organization. The non-profit organization must rent out the 1 e.g. if 2.4 units of low-income housing were required as part of a 12 unit project, the applicant could replace 2 /5 of
one required low-income unit with an in-lieu fee and provide two low-income units. This provision does not supersede application of the State Density Bonus law, which requires provision of actual affordable housing units rounded up to the nearest whole number.
85 Exhibit A – Zoning Amendment ZA24-193

enforceably restricted affordable units to households at the applicable income level earning no greater than 50 percent of median income.

3. The development shall provide a residential density of not less than 20 dwelling units per acre, up to the maximum number of units allowed by the residential zoning standards identified in this section item D. below.

3. 4. Market rate All condominiums must be regulated by a legal homeowner’s association for the maintenance of the units.

D. Review Requirements. Affordable housing projects are a permitted use in the [AH] Housing Overlay. Refer to use tables in Sections 17.32.030 (Residential Use Regulations),

17.36.030 (Commercial Zone Uses) and 17.40.030 (Mixed-Use Zone Uses). Qualified Affordable Housing Development shall be eligible for ministerial review, subject to the applicable objective design standards contained in Chapter 17.26 (Objective Design Standards for Multi-Family Residential and Residential Mixed-Use Development).

E. Affordable housing projects in commercial and mixed-use zones require either a Cultural Heritage Permit or Architectural Permit per Section 17.16.100, Depending on the project, other discretionary processes may apply per Chapter 17.16.

F. Minimum Standards. Affordable housing projects shall conform to applicable the underlying development standards of the underlying zone, with the exception of incentives, concessions and density bonuses as required by Government Code § 65915 or other applicable State law.the following exceptions below:

1. Neighborhood Commercial Zones. Affordable housing projects located in Neighborhood Commercial zones shall conform to the same development standards that apply to RM zoning districts (Residential Medium Density).

2. Mixed-Use Zones (MU 3.1, MU 3.2). Affordable housing projects located in the MU 3.1 and MU 3.2 zones shall conform to development standards for mixed-use projects. Affordable housing projects outside of the Coastal Zone may be located at street level.

G. Affordable Housing Agreement. In addition to subsection D. above, the following shall apply to all qualified affordable housing projects proposed within the [AH] Overlay:

A Qualified Affordable Housing Development project shall have a legally binding agreement between the applicant and the City, which shall be required to be executed, upon approval by the City Council, and be recorded against the property on which the Qualified Affordable Housing Development project is to be constructed to ensure that the requirements of this chapter are satisfied. The Affordable Housing Agreement shall be recorded against the Development Site prior to issuance of building permits for the Qualified Affordable Housing Development. The Affordable Housing Agreement shall be 86 Exhibit A – Zoning Amendment ZA24-193

binding on all future owners and successors in interest. The Affordable Housing Agreement shall include, but not be limited to, the following:

1. Term. A term consistent with the of a minimum number of 30 years specified by State law or applicable project funding source, or greater, depending upon whether non-City funding sources require a longer affordability term. Where other public financing has a longer term, the longest term of affordability shall prevail.

2. Property Management. A requirement that the owner shall provide for professional property management of the development including the owner's policies and procedures for renting, managing; maintaining and operating the affordable units.

Property management shall also monitor the use of parking spaces within the development to assure that the parking spaces are provided, maintained and used in accordance with the terms of the Affordable Housing Agreement;

3. Occupancy. A requirement that the occupancy of each unit in the development shall be limited so that it does not exceed more than two persons per bedroom plus one additional person;

4. Priority of San Clemente residents. The obligation of the owner to provide first priority to people who live or work in the City to rent the qualified affordable units to the extent the project is funded with San Clemente Developer's In-lieu fees or other housing funds, as permitted by law.

5. Definitions of household income. Means those persons and families whose household income does not exceed the qualifying limits for acutely low, extremely low, very low, and low, and moderate income families as established and amended from time to time by the Secretary of Housing and Urban Development and defined in Section 5.603(b) of Title 24 of the Code of Federal Regulations and Section 50106 of the California Health and Safety Code. In the event the federal standards are discontinued, the City shall use the definitions set by the California Department of Housing and Community Development.
87 88
Exhibit A – Zoning Amendment ZA24-193

Zoning Code Section 17.32.030 (Residential Zone Uses)
Use RVL RL RML RM RH

1. Agricultural
Animals, Commercial Grazing of Large Species1 C
Apiaries (Bee Farming) C
Crop and Tree Farming C
Marijuana Cultivation
Nurseries (Farming Only) C

2. Lodging
Bed-and-Breakfast Inns:2
a. 5 or Fewer Guest Rooms C C MC MC MC
b. 6 or More Guest Rooms C C C C C
Boardinghouse18 C
22 C22
STLU19 - O
20 STAR19, 21 O O O O O

3. Public/Quasi-Public and Institutional
Arboretums (Public/Private) C
Churches C C C C C
Congregate Care Facility3 C C C
Convalescent Care C C C
Day Care Facilities, Children's:4
a. Small-Family Day Care Home5 P P P P P
b. Large-Family Day Care Home5 P P P P P
c. Day Care Center C C C
Home Occupations9 P P P P P
Parking Lots6 C C C C
Parks7 O O O O
Preserves (Archaeological, Botanical, Geological, Wildlife) C C C C C Public Utilities8
a. City-Initiated Project O O O O O
b. Projects Initiated by Outside Agencies
i. Major Utilities C C C C C
ii. Minor Utilities P P P P P
Recreational/Uses (Public/Private, Nonprofit) C C C C C Schools (Public/Private) C C C C C

4. Residential Uses
Accessory Dwelling Units13 P P P P P
Accessory Uses (Pools, Detached Garages, Tool and Garden Sheds, Gazebos, Patio Covers, Barbecues)

P P P P P
a. Stables C
Guesthouses C P
Home Occupation Permits9 P P P P P
Mobile Homes11
a. Units C C C C C
b. Subdivisions and Parks12 C C C C C
Multi Family Dwellings Market Rate Residential Project:
89 Exhibit A – Zoning Amendment ZA24-193

a. 2-4 Units24, 25 P P P
b. 5 Units or More24, 25 C C C
Residential Care Facilities, when licensed to serve six or fewer persons

P P P P P
Qualified Affordable Housing Development Projects23, 25 P P P Senior Housing Projects14, 23, 25 C P C P C P
Single-Family Dwellings C P P P P

5. Unclassified Uses
Accessory Buildings, Residential15 Detached, Over 15 Feet in Height

C C C C C
a. All Others P P P P P
b. Accessory Buildings, Nonresidential16 C C C C C
Grading17 (Not Accompanying a Development Request):
a. Emergency P P P P P
b. Major C C C C C
c. Minor P P P P P
Marijuana Delivery
Marijuana Dispensary
Marijuana Manufacturer
Marijuana Testing Laboratory
1 Refer to Section 17.28.060, Animals, Commercial Grazing and Raising of Large Species, of this title, for special provisions for the commercial grazing of large species. 2 Refer to Section 17.28.090, Bed and Breakfast Inns, of this title, for special provisions for bed and breakfast inns. 3 Refer to Section 17.28.110, Congregate Care Facilities, of this title for special provisions for congregate care facilities.
4 Refer to Section 17.28.100, Child Day Care Facilities, of this title for special provisions for day care facilities. 5 Small-family and Large-family day care homes are permitted in a detached single-family dwelling, a townhouse, a dwelling unit within a dwelling, or a dwelling unit within a covered multi-family dwelling in which the underlying zoning allows for residential uses, or a legal non-conforming single-family dwelling unit in nonresidential zone.

Small-family day care and large-family daycare homes only shall operate in buildings that were lawfully constructed.
6 Refer to Section 17.28.220, Parking Lots, of this title for special provisions for single-use parking lots. 7 Refer to Section 17.28.230, Public Park Facilities, of this title for review requirements for parks. 8 Refer to Section 17.28.240, Public Utilities, of this title for review requirements for public utilities/buildings. 9 Refer to Section 17.28.160, Home Occupations, of this title for special provisions for Home Occupations. 10 Reserved.
11 Refer to Section 17.28.190, Mobile homes, of this title for special provisions for mobile homes. 12 Refer also to Section 17.56.040, Planned Residential District Overlay, of this title, for special provisions for planned residential developments.
13 Refer to Section 17.28.270, Accessory Dwelling Units (ADUs), of this title for special provisions for ADUs. 14 Refer to Section 17.28.280, Senior Housing Projects, of this title for special provisions for senior housing projects.
90 Exhibit A – Zoning Amendment ZA24-193

15 Refer to Section 17.24.040, Accessory Buildings, of this title for special provisions for accessory buildings. 16 Refer to Section 17.24.040, Accessory Buildings, of this title for special provisions for accessory buildings. 17 Refer to Section 17.28.130, Grading, of this title, for special provisions for grading requests that are not accompanying development requests.
18 A boardinghouse may not be located within three hundred (300) feet of any other boardinghouse measured by following a straight line without regard to intervening buildings from the nearest point of the parcel on which the proposed boardinghouse is to be located to the nearest point of the parcel that contains the existing boardinghouse. No more than one (1) boardinghouse is allowed on a legal parcel. 19 Refer to Section 17.28.292, STLUs, of this title for special provisions for STLUs including STARs. 20 STLUs are only permitted on lots that are designated for STLUs on the City's current adopted "Short-Term Lodging Units (STLU) Allowed Areas" map in Appendix C of this title. 21 STARs are permitted in all zones where STLUs are permitted with an STLU zoning permit in accordance with Section 17.16.45. STARs that are located in residential zones where STLUs are not permitted require a STAR permit in accordance with Section 17.16.146.
22 But if the boardinghouse is a Residential Care Facility (as defined by Section 17.88.030), allowed administratively under Chapter 5.38 (Residential Care Facility Boardinghouse—Streamlined Administrative Approval).

23. Qualified Affordable Housing Developments and Senior Housing Projects are permitted uses on all properties in the Housing Overlay but not on all Residentially zoned properties. Refer to Section 17.56.090, Housing Overlay Zone for projects in Residential Zones of this title.

24. Market rate residential projects proposing 4 or fewer units that meet the applicable objective design standards contained in Chapter 17.26 shall be permitted ministerially. Market rate residential projects proposing 5 or more units and those that do not meet the objective design standards shall be considered as part of a discretionary review process.

25. Qualified Affordable Housing Developments, Senior Housing, and Market Rate Residential or Mixed Use projects shall not be allowed to convert existing hotel/motel uses which have provided lower cost visitor serving accommodation in the last five years, unless the project provides equivalent new lower cost visitor serving accommodation or unless required to be approved pursuant to State law.

Zoning Code Section 17.36.020 (Commercial Zone Uses)
Use Zones

1. Commercial NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Antiques (Retail Sales) P P P P P P P P P
Art Galleries P P P P P P P P P
Bakery Goods/Sales (No
Wholesale Distributors)

P P P P P P P P P
Barber Shops P P P P P P P P P
Bicycle Shops P P P P P P P P P
Bookstores P P P P P P P P P
Carpet Sales MC MC P P P P P P P
Ceramics (Retail Sales) MC MC P P P P P P P
91 Exhibit A – Zoning Amendment ZA24-193

Cleaners &
Laundromats (No Linen
Service)

P P P P P P P P P
Clothing (Retail Sales) P P P P P P P P P
Confectionery Stores
(Small Scale Production
with Retail Sales)

P P P P P P P P P
Convenience Stores C C C C C C C C C 1
Drugstores/Pharmacies P P P P P P P P P
Electronics (Retail Sales
and Repair)

P P P P P P P P P
Fabric Stores P P P P P P P P P
Florists (Retail Sales) P P P P P P P P P
Floor Covering Stores MC MC P P P P P P P
Furniture Stores (Retail
Sales)

MC MC P P P P P P P
Glass/Mirror Sales MC MC P P P P P P P
Grocery/Food Stores
(Not Convenience
Stores)

P P P P P P P P P
Gunsmith/Gun Shops C C C C C C C
Hardware Stores P P P P P P P P P
Home Appliance Stores
(Retail Sales and Repair)

MC MC P P P P P P P
Ice Cream Parlors (Retail
Sales with Small
Production)

P P P P P P P P P
Interior Decorating
Stores

MC MC P P P P P P P
Janitorial Supplies P P P P P P P
Jewelry Stores P P P P P P P P P
Lawnmower
Sales/Service

MC MC P P P P P P P
Liquor Sales:
a. Hard Alcohol C C C C C C C C C
b. Beer and Wine (OffSite Consumption Only) MC MC MC MC MC MC MC MC MC Locksmith Shops MC MC P P P P P P P
Mail-Order Stores MC MC P P P P P P P
Marijuana Cultivation
Marijuana Delivery
Marijuana Dispensary
Marijuana
Manufacturer
Marijuana Testing
Laboratory
Medical/X-Ray
Equipment (Sales Only)

P P P P P P P
Music Sales P P P P P P P P P
92 Exhibit A – Zoning Amendment ZA24-193

Newsstands (On Private
Property)

P P P P P P P P P
Nurseries (Indoor
Garden Retail Sales)

MC MC P P P P P P P
Nurseries (Outdoor
Garden Retail Sales)

C C C C C C C
Office
Equipment/Supplies

C C P P P P P P P
Paint/Wallpaper Sales MC MC P P P P P P P
Patio/Outdoor Furniture
Sales

MC MC P P P P P P P
Pawn Shops C C C C C C C
Pet Shops MC MC MC MC MC MC MC MC MC
Pet Supply Stores MC MC P P P P P P P
Photographic
Equipment Sales

MC MC P P P P P P P
Pottery (Retail Sales
with Small Production)

MC MC P P P P P P P
Shoe Stores (Retail Sales
and Repair)

P P P P P P P P P
Smoke or Tobacco
Shops
C C C C C 1
Specialty Food Stores P P P P P P P P P
Sporting Goods (Retail
Sales)

MC MC P P P P P P P
Stationery Stores P P P P P P P P P
Surfboard (Custom
Manufacturing)

C C C C C C C
Swimming Pool
Accessory Shops

MC MC P P P P P P P
Tailors/Dressmakers P P P P P P P P P
Use Zones

2. Hospital Uses NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Ambulance Services C C C C
Accessory Uses to
Hospital (e.g.
laboratories, medical
offices, florists, and
parking lots).

P 2
Hospital C
Specialty Hospital C
Use Zones

3. Lodging NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
93 Exhibit A – Zoning Amendment ZA24-193

Bed and Breakfast
Inns:
3 a. Five or Fewer
Guest Rooms

P P P P P P P P
b. Six to 10 Guest
Rooms

MC MC MC MC MC MC MC MC
c. Over 10 Guest
Rooms

C C C C C C C C
Hotel and Ancillary
Uses

C C C C C C C C
Motels C C C C C C C
Timeshares C C C C C C C C
Use Zones

4. Personal Services NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Barber, beauty, nail,
and tanning services

P P P P P P P P P
Body Art
Establishments
1 Body Piercing Studios P P P P P P P P P 1
Tattoo Parlors P P P P P P P P P 1
Use Zones

5. Professional
Offices, Financial
Institutions and
Related Uses
NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Ambulance Services
(Office Only)

P P P P P P P P P
Banks/Financial
Institutions

P P P P P P P P P
Banks/Financial
Institutions with
Drive-Through
Facilities

C C C C C P P P P
Newspaper
Publication and
Office

P P P P P P P P
Employment
Agencies

P P P P P P P P
Offices, Medical P P P P P P P P P
Offices, Professional P P P P P P P P P
Offices,
Veterinary/Animal
Hospitals

MC MC P P P P P P P
Secretarial Services P P P P P P P P P
94 Exhibit A – Zoning Amendment ZA24-193

Telemarketing
Services

P P P P P P P P
Travel Agencies MC MC P P P P P P P
Use Zones

6. Public/Quasi
Public and
Institutional Uses
NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Churches C C C C C C C C C
Clubs/Social
Organizations

C C C C C C C C C
Congregate Care
Facilities
C C C C C C C C 4
Convalescent Homes C C C C C C C C
Day Care Facilities: 5
a. Small-Family Day
Care Home
P P P P P P P P P 6
b. Large-Family Day
Care Home
P P P P P P P P P 6
c. Day Care Centers C C C C C C C C C
Group Instruction MC MC MC MC MC MC MC MC MC
Group Counseling C C 7
Libraries P P P P P P P P P
Parking Lots MC MC MC MC MC MC MC MC MC 8
Parking Structures C C C C C C C C C
Parks O O O O O O O O O 9
Public Utilities: 10
a. City-Initiated
Projects

O O O O O O O O O O
b. Projects Initiated
by Outside Agencies:
i. Major Utilities C C C C C C C C C C
ii. Minor Utilities P P P P P P P P P P
Schools, Public and
Private

C C C C C C C C C
Transportation
Facilities

C C C C C C C
Use Zones

7. Residential Uses NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Qualified Affordable
Housing
Development
Projects
P P P P P P 11,
25 Senior Housing
Projects
C P C P C P C P C C P C C P 11,
12 25
95 Exhibit A – Zoning Amendment ZA24-193

Use Zones

8. Restaurants and
bars
NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Bars, cocktail
lounges (with or
without dancing
and/or
entertainment)

C C C C C C C C C
Microbreweries
(with limited
production up to
5,000 barrels and
tasting room) as
defined in Section

17.88 C C C C C C C C C
Taprooms as defined
in Section 17.88

C C C C C C C C C
Restaurants:
a. With drivethrough C C C C C C C 13
b. With no on-site
consumption of
liquor, no dancing,
no entertainment

P P P P P P P P P
c. With on-site sale
of beer and wine:
i. Indoors MC MC MC MC MC MC MC MC MC
ii. Outdoors with
up to 16 outdoor
seats or four tables

MC MC MC MC MC MC MC MC MC
iii. Outdoors with
more than 16
outdoor seats
and/or four tables

MC MC MC MC MC MC MC MC MC
d. With on-site sale
of hard alcohol:
i. Indoors C C C C C C C C C
ii. Outdoors with
up to 16 outdoor
seats or four tables
MC/C MC/C MC/C MC/C MC/C MC/C MC/C MC/C MC/C 14,
15 iii. Outdoors with
more than outdoor
16 seats and/or four
tables
C C C C C C C C C 14,
15 e. With dancing
and/or
entertainment that
has:
i. No amplified
sound

MC MC MC MC MC MC MC MC MC
96 Exhibit A – Zoning Amendment ZA24-193

ii. Amplified sound C C C C C C C C C
Use Zones

9. Unclassified Uses NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Accessory Buildings C C C C C C C C C C
Alcohol Beverage
Sales Concurrent with
Motor Vehicle FuelConvenience Store
Sales
C C C C C C C C C 16
Amusement Centers C C C C C C C C C 17
Animal Grooming
Shops

MC MC MC P P P P P P
Bowling Alleys C C C C C C C
Drive-Thru Facilities,
When in Conjunction
with a Use Permitted
or Conditionally
Permitted in this
Zone

C C C C C C C
Grading, Not
Accompanying a
Development
Request:
18 a. Emergency P P P P P P P P P P
b. Major C C C C C C C C C C
c. Minor P P P P P P P P P P
Health/Fitness/Sports
Clubs and Facilities

C C C C C C C C C
Massage C C C C C C C 19
Accessory Massage MC MC MC MC MC MC MC MC MC 19
Mortuaries C C C C C C C
Pool Halls C C C C C C C 20
Recycling Facilities: 21
a. Reverse Vending
Machines

P P P P P P P P P
b. Small Collection C C P P P P P P P
c. Large Collection C C C C C C C
Theaters C C C C C C C
Urban Private
Storage
Wine Tasting (Only as
an Accessory Use to
establishments
selling wine or wine
related products as a
primary use)

MC MC MC MC MC MC MC MC MC
97 Exhibit A – Zoning Amendment ZA24-193

Use Zones

10. Vehicle-Related
Uses
NC

1.1 NC

1.2 NC

1.3 NC 2 NC 3 CC 1 CC 2 CC 3 CC 4 RMF
1 NOTE
Car Washes C C C C C C C 24
Service Stations C C C C C C C C C 22
Vehicle Parts Stores P P P P P P P
Vehicle Dealerships C C C C C C C 23
Vehicle Sales [fewer
than 10 vehicles on
site]
MC MC MC MC MC MC MC 23
Vehicle Sales [10 or
more vehicles on site]
C C C C C C C 23
Vehicle Rental [5 or
fewer vehicles on
site]
P P P P P P P 23
Vehicle Rental [6 or
more vehicles on site]
MC MC MC MC MC MC 23
Vehicle Service and
Repair-Related
Facilities/Vehicle
Repair, Minor or
Major
C C C C C C C 24

1. Refer to Chapter 17.28, Special Uses, of this title for special provisions for the referenced land use.

2. Refer to Section 17.28.220, Parking Lots, of this title, for special provisions for single-use parking lots.

3. Refer to Section 17.28.090, Bed and Breakfast Inns, of this title, for special provisions for bed and breakfast inns.

4. Refer to Section 17.28.110, Congregate Care Facilities of this title for special provisions for congregate care facilities.

5. Refer to Section 17.28.100, Child Day Care Facilities, this title, for special provisions for day care facilities.

6. Small-family and large-family day care homes are permitted in a detached single-family dwelling, a townhouse, a dwelling unit within a dwelling, or a dwelling unit within a covered multi-family dwelling in which the underlying zoning allows for residential uses, or a legal non-conforming single-family dwelling unit in a nonresidential zone.

Small-family and large-family day care homes only shall operate in buildings that were lawfully constructed.

7. A group-counseling use is conditionally permitted in an RMF 1 zone only if it is integrated into, and secondary in nature to, a Hospital facility. The group-counseling use must serve the primary use of the site as a general Hospital that serves the broader community.

8. Refer to Section 17.28.220, Parking Lots, of this title, for special provisions for parking lots.

9. Refer to Section 17.28.230, Public Park Facilities, of this title for review requirements for parks.

10. Refer to Section 17.28.240, Public Utilities, of this title, for special provisions for public utilities.

11. Qualified Affordable Housing Developments and Senior Housing Projects are permitted uses in the subject zoning district only if the property is located within the Housing Overlay. Refer to Section 17.56.090, Affordable Housing Overlay Zone, for projects in Commercial and Mixed-Use Zones, of this title, for special provisions for Affordable Housing Projects.
98 Exhibit A – Zoning Amendment ZA24-193

12. Refer to Section 17.28.280, Senior Housing Projects, of this title, for special provisions for senior housing projects.

13. Refer to Section 17.28.260, Restaurants, Drive-In, Drive-Through, of this title, for special provisions for drivein/drive-thru restaurants.

14. When a restaurant has an approved CUP for the service of alcohol indoors and a CUP is required for the service of alcohol outdoors, then the applicant may request an amendment to the existing CUP to extend service outdoors. When a restaurant has an approved CUP for the service of alcohol indoors and an MCUP is required for the service of alcohol outdoors, an MCUP is the only application necessary (an amendment to the existing CUP shall not be necessary).

15. If a CUP has been previously approved for service of hard alcohol indoors, then that service may be extended outdoors for outdoor facilities with no more than 16 seats or four tables with the approval of an MCUP. If no CUP has been approved for service of hard alcohol indoors, then any service of hard alcohol outdoors requires a CUP.

16. Refer to Section 17.28.040, Alcoholic beverages and motor vehicle fuel, concurrent sale of, of this title, for special provisions for concurrent sales of motor fuel and alcoholic beverages.

17. Refer to Section 17.28.050, Amusement Centers, of this title, for special provisions for arcades/amusement centers.

18. Refer to Section 17.28.130, Grading, of this title, for special provisions for grading requests that are not accompanying development requests.

19. Massage is subject to Section 5.28 of the City of San Clemente Municipal Code. Refer to Section 17.28.185, Massage Establishments, of this title, for special provisions for massage establishments and accessory massage establishments.

20. The provisions for amusement centers shall apply to pool halls. Please refer to Section 17.28.050, Amusement Centers, for special provisions for amusement centers.

21. Refer to Section 17.28.250, Recycling Facilities, of this title, for special provisions for recycling facilities.

22. Refer to Section 17.28.290, Service Stations, of this title, for special provisions.

23. Refer to Section 17.28.310, Vehicle Dealerships, Rental, and Sales of this title, for special provisions for vehicle dealerships.

24. Refer to Section 17.28.320, Vehicle Service and Repair-Related Facilities, of this title, for special provisions. 25 Qualified Affordable Housing Developments, Senior Housing, and Market Rate Residential projects shall not be allowed to convert existing hotel/motel uses which have provided lower cost visitor serving accommodation in the last five years, unless the project provides equivalent new lower cost visitor serving accommodation or unless required to be approved pursuant to State law.

Zoning Code Section 17.40.030 (Mixed-Use Zone Uses)

USE ZONES

1. Commercial Uses MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Antiques P P P P P P P
Art Galleries P P P P P P P
99 Exhibit A – Zoning Amendment ZA24-193

Bakery Goods/Sales (No
Wholesale Distributors)

P P P P P P P
Barber Shops P P P P P P P
Bicycle Shops P P P P P P P
Bookstores P P P P P P P
Ceramics (Retail Sales) P P P P P P P
Cleaners and Laundromats
(No Linen Service)

P P P P P P P
Clothing Stores P P P P P P P
Confectionery Stores (Small
Scale Production with Retail
Sales)

P P P P P P P
Convenience Stores C C C C C C 1
Drugstores/Pharmacies P P P P P P P
Electronics (Retail Sales and
Repair)

P P P P P P P
Fabric Stores P P P P P P P
Floor Covering Stores P P P P P P P
Florists (Retail Sales) P P P P P P P
Furniture Stores (Retail
Sales)

P P P P P P P
Grocery/Food Stores (Not
Convenience Stores)

P P P P P P P
Gunsmith/Gun Shops C C C C C C C
Hair Salons P P P P P P P
Hardware Stores P P P P P P P
Home Appliance Stores
(Retail Sales and Repair)

P P P P P P P
Ice Cream Parlors (Retail
Sales with Small Production)

P P P P P P P
Interior Decorating Stores P P P P P P P
Jewelry Stores P P P P P P P
100
Exhibit A – Zoning Amendment ZA24-193

Liquor Sales:
a. Hard Alcohol C C C C C C C
b. Beer and Wine (Off-Site
Consumption Only)

MC MC MC MC MC MC MC
Locksmith Shops P P P P P P P
Mail-Order Stores P P P P P P P
Marijuana Cultivation
Marijuana Delivery
Marijuana Dispensary
Marijuana Manufacturer
Marijuana Testing
Laboratory
Medical/X-Ray Equipment
(Sales Only)
P P
Medical Marijuana
Dispensaries
Music Sales P P P P P P P
Newsstands (On Private
Property)

P P P P P P P
Nurseries (Indoor Garden
Retail Sales)

P P P P P P P
Nurseries (Outdoor Garden
Retail Sales)

C C C C C C C
Office Equipment/Supplies P P P P P P P
Paint/Wallpaper Sales P P P P P P P
Patio/Outdoor Furniture
Sales

P P P P P P P
Pawn Shops C C C C C C C
Pet Shops MC MC MC MC MC MC MC
Pet Supply Stores P P P P P P P
Photographic Equipment
Sales

P P P P P P P
101
Exhibit A – Zoning Amendment ZA24-193

Pottery (Retail Sales with
Small Production)

P P P P P P P
Shoe Stores (Retail Sales and
Repair)

P P P P P P P
Smoke or Tobacco Shops
Specialty Food Stores P P P P P P P
Sporting Goods (Retail Sales) P P P P P P P
Stationery Stores P P P P P P P
Swimming Pool Accessory
Shops

P P P P P P P
Tailors/Dressmakers P P P P P P P

USE ZONES

2. Lodging MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Bed and Breakfast Inns: 2
a. Five or Fewer Guest
Rooms
O P O P P P P 2
b. Six to 10 Guest Rooms O MC O MC MC MC MC 2
c. Over 10 Guest Rooms C C C C C C C
Boardinghouse C 29, 31
STLU O O O O O O 30
STAR O O O O O O 30
Hotel and Ancillary Uses C C C C C C C
Motels C C
Timeshares C C C C C C C

USE ZONES

3. Personal Services MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Barber, beauty, nail, and
tanning services

P P P P P P P
102
Exhibit A – Zoning Amendment ZA24-193

Body Art Establishments
Body Piercing Studios O P O P P P P 3
Tattoo Parlors O MC O MC MC MC MC 3

USE ZONES

4. Professional Offices,
Financial Institutions and
Related Uses
MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE
Ambulance Services (Office
Only)
O P O P P P P 3
Banks/Financial Institutions P P P P P P P
Employment Agencies O P O P P P P 3
Offices, Medical:
a. Optometrists with Retail
Space

P P P P P P P
b. Optometrists without
Retail Space
O P O P P P P 3
c. Other Offices O P O P P P P 3
Offices, Professional and/or
General:
a. Realtors P P P P P P P
b. Other Offices O P O P P P P 3
Offices, Veterinary/Animal
Hospitals

C C C C C C C
Secretarial Services O P O P P P P 3
Telemarketing Services O P O P P P P 3
Travel Agencies P P P P P P P

USE ZONES

5. Public/Quasi Public and
Institutional Uses
MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE
Churches C C C C C C C
103
Exhibit A – Zoning Amendment ZA24-193

Clubs/Social Organizations C C C C C C C
Congregate Care Facilities C C C C C C C 4
Convalescent Homes C
Day Care Facilities: 5
a. Small Day Care Homes P P P P P P P 6
b. Large Day Care Homes P P P P P P P 6
c. Child Day Care Centers C C C C C C C
Group Instruction MC MC MC MC MC MC MC 3
Group Counseling
Libraries P P P P P P P
Parking Lots MC MC MC MC MC MC MC 7
Parking Structures C C C C C C C
Parks O O O O O O O 8
Public Utilities 9
a. City-Initiated Projects O O O O O O O
b. Projects Initiated by
Outside Agencies:
i. Major Utilities C C C C C C C
ii. Minor Utilities P P P P P P P
Schools, Public and Private
1-12 Individuals

MC MC MC MC MC MC MC
Greater than 12 Individuals C C C C C C C
Transportation Facilities C C C C C C C

USE ZONES

6. Residential Uses MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Qualified Affordable
Housing Development
Projects
P P P P P P P 10, 33
Manufactured Homes MC
104
Exhibit A – Zoning Amendment ZA24-193

Mobile Homes: C 11
a. Units C
b. Subdivisions and Parks 12
Market Rate Residential
Units
2-4 Units P P P P P P P 13, 14,
32, 33
5 Units or More C C C C C C C 13, 14,
32, 33
Senior Housing Projects C C P C C P C P C C P 10, 15,
33 Stand Alone Residential P P P 14

USE ZONES

7. Restaurants and bars MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Bars, cocktail lounges (with
or without dancing and/or
entertainment)

C C C C C C C
Microbreweries (with
limited production up to
5,000 barrels and tasting
room) as defined in 17.88

C C C C C C C
Taproom as defined in 17.88 C C C C C C C
Restaurants:
a. With drive-through C 16
b. With no on-site
consumption of liquor, no
dancing, no entertainment

P P P P P P P
c. With on-site sale of beer
and wine:
i. Indoors MC MC MC MC MC MC MC
ii. Outdoors with up to 16
outdoor seats or four tables

MC MC MC MC MC MC MC
105
Exhibit A – Zoning Amendment ZA24-193

iii. Outdoors with more
than 16 outdoor seats
and/or four tables

C C C C C C C
d. With on-site sale of hard
alcohol:
17, 18,
19 i. Indoors C C C C C C C
ii. Outdoors with up to 16
outdoor seats or four tables

MC/C MC/C MC/C MC/C MC/C MC/C MC/C
iii. Outdoors with more
than outdoor 16 seats
and/or four tables

C C C C C C C
e. With dancing and/or
entertainment that has:
i. No amplified sound MC MC MC MC MC MC MC
ii. Amplified sound C C C C C C C

USE ZONES

8. Unclassified Uses MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Accessory Buildings,
Residential
20 a. Detached, Over 15 Feet
in Height
C
b. All Others P
Accessory Buildings,
Nonresidential
C C C C C C C 20
Alcohol Beverage Sales
Concurrent with Motor
Vehicle Fuel-Convenience
Store Sales
C 21
Amusement Centers C C C C C C C 22
Animal Grooming Shops MC
Bowling Alleys C
Drive-Thru Facilities, When
in Conjunction with a Use
C 16
106
Exhibit A – Zoning Amendment ZA24-193

Permitted or Conditionally
Permitted in this Zone
Grading, Not Accompanying
a Development Request:
23 a. Emergency P P P P P P P
b. Major C C C C C C C
c. Minor P P P P P P P
Health/Fitness/Sports Clubs
and Facilities

C C C C C C C
Massage 24
Accessory Massage MC MC MC MC MC MC MC 24
Mortuaries C
Pool Halls C C C C C C C 25
Recycling Facilities: Reverse
Vending Machines
MC MC MC MC MC MC MC 26
Theaters C C C C C C C
Urban Private Storage C C C C C C 27
Wine Tasting (Only as an
Accessory Use to
establishments selling wine
or wine related products as
a primary use)

MC MC MC MC MC MC MC

USE ZONES

9. Vehicle-Related Service MU 1 MU 2 MU 3.0 MU 3.1 MU 3.2 MU 3.3 MU 5 NOTE Car Washes C 28
Vehicle Parts Stores P P P P P P P 28
1 Refer to Section 17.28.120, Convenience Stores/Retail Establishments Selling Convenience Items, of this title. 2 Refer to Section 17.28.090, Bed and Breakfast.

3. Refer to Section 17.56.030 Central Business (-CB) Overlay District. This use is potentially subject to locational criteria within a structure based on its compatibility with the objectives of creating or maintaining pedestrianoriented space in the Central Business Overlay District. A Minor Conditional Use Permit is required to allow nonpedestrian uses in pedestrian-oriented space, as defined in Section 17.56.030. 107
Exhibit A – Zoning Amendment ZA24-193

4 Refer to Section 17.28.110, Congregate Care Facilities. 5 Refer to Section 17.28.100, Child Day Care Facilities. 6 Small-family and large-family day care homes are permitted in a detached single-family dwelling, a townhouse, a dwelling unit within a dwelling, or a dwelling unit within a covered multi-family dwelling in which the underlying zoning allows for residential uses, or a legal non-conforming single-family dwelling unit in a nonresidential zone.

Small-family and large-family day care homes only shall operate in buildings that were lawfully constructed. 7 Refer to Section 17.28.220, Parking Lots.
8 Refer to Section 17.28230, Public Park Facilities.
9 Refer to Section 17.28.240, Public Utilities.

10. Qualified Affordable Housing Developments and Senior Housing Projects are a permitted uses in the subject zoning district only if the properties are located in the Affordable Housing Overlay, pursuant to Section 17.56.090.

Also, for projects in the MU 5 zone, refer to Section 17.40.50(A) for other applicable use restrictions Qualified Affordable Housing Development Projects may provide residential units on the ground floor if necessary to meet density allowances as set forth in Objective Design Standards Section 17.56.090.

11. Refer to Section 17.28.190, Mobile Homes.

12. Refer to Section 17.36.040, Planned Residential District Overlay.

13. Refer to Section 17.40.0230.A.2 for special use requirements that apply to residential uses.

14. Residential uses may be located on the ground level in the MU 3.1, MU 3.3, and MU 5 zones. For residential uses in the MU 5 zone, please refer to Section 17.40.050(A), Residential Use Restrictions for MU 5.

15. Refer to Section 17.28.280, Senior Housing Projects.

16. Refer to Section 17.28.260, Drive-Throughs.

17. When a restaurant has an approved CUP for the service of alcohol indoors and a CUP is required for the service of alcohol outdoors, then the applicant may request an amendment to the existing CUP to extend service outdoors.

18. When a restaurant has an approved CUP for the service of alcohol indoors and an MCUP is required for the service of alcohol outdoors, an MCUP is the only application necessary (an amendment to the existing CUP shall not be necessary).

19. If a CUP has been previously approved for service of hard alcohol indoors, then that service may be extended outdoors for outdoor facilities with no more than sixteen (16) seats or four (4) tables with the approval of an MCUP. If no CUP has been approved for service of hard alcohol indoors, then any service of hard alcohol outdoors requires a CUP.

20. Refer to Section 17.24.040, Accessory Buildings.

21. Refer to Section 17.28.040, Alcoholic beverages and motor vehicle fuel, concurrent sale of, of this title, for special provisions for concurrent sales of motor fuel and alcoholic beverages.

22. Refer to Section 17.28.050, Amusement Centers.

23. Refer to Section 17.28.130, Grading.

24. Massage is subject to Section 5.28 of the City of San Clemente Municipal Code. Refer to Section 17.28.185, Massage Establishments, of this title, for special provisions for massage establishments. To the extent otherwise allowed, Accessory Massage is permitted only in the commercial portion of a mixed-use building.

25. The provisions for amusement centers shall apply to pool halls. Refer to Section 17.28.050, Amusement Centers.
108
Exhibit A – Zoning Amendment ZA24-193

26. Refer to Section 17.28.250, Recycling Facilities.

27. Refer to Section 17.28.305, Urban Private Storage.

28. Refer to Section 17.28.320, Vehicle Service and Repair-Related Facilities.

29. A boardinghouse may not be located within three hundred (300) feet of any other boardinghouse measured by following a straight line without regard to intervening buildings from the nearest point of the parcel on which the proposed boardinghouse is to be located to the nearest point of the parcel that contains the existing boardinghouse. No more than one (1) boardinghouse is allowed on a legal parcel.

30. Refer to Section 17.28.292, Short-Term Lodging Units, of this title for special provisions for STLUs and STARs.

31. But if the boardinghouse is a Residential Care Facility (as defined by Section 17.88.030), allowed administratively under Chapter 5.38 (Residential Care Facility Boardinghouse—Streamlined Administrative Approval).

32. Market Rate Residential or Mixed Use projects proposing 4 or fewer units that meet the applicable objective design standards contained in Chapter 17.26 shall be permitted ministerially. Market Rate Residential or Mixed Use projects proposing 5 or more units and those that do not meet the objective design standards shall be considered as part of a discretionary review process.

33. Qualified Affordable Housing Developments, Senior Housing, and Market Rate Residential projects shall not be allowed to convert existing hotel/motel uses which have provided lower cost visitor serving accommodation in the last five years, unless the project provides equivalent new lower cost visitor serving accommodation or unless required to be approved pursuant to State law.
109

PUBLIC COMMENTS

HOUSING ELEMENT ACTION PLAN -

OBJECTIVE DESIGN STANDARDS
Attachment 2
110
111
The proposed standards should not create barriers for development of new affordable housing developments. By creating requirements on conversion of motels to have equivalent new lower cost visitor serving accommodations or unless required to be approved pursuant to State law, it creates an impediment to the transition of these properties to create affordable housing opportunities.

Additionally, Program D3 outlines that In Lieu Fees “could be used to acquire existing apartments, construct new apartments, or the purchase and conversion of old motels.” Yet, the City's changes to the Housing Overlay are obstructing these options, thereby impeding overall housing development. In program 5 of the Housing Element, Affordable Housing Overlay, states that the City will “prioritize inclusionary in lieu fees for lower income affordable housing projects proposed in the affordable housing overlay/ housing overlay…” The City has committed to using their in-lieu fees for projects within the housing overlay, which included motel conversions, but the new changes in the zoning amendment will remove this option, further complicating efforts to meet housing goals.

Furthermore, the staff report doesn’t have an analysis that supports how the revisions will impact the City’s current Housing Element goals for housing opportunities. San Clemente needs to address this issue by providing an analysis on the changes the proposed revisions to the Zoning Amendment will create. The Kennedy Commission requests that the city honor its commitments in their Housing Element to facilitate affordable developments on motel sites. Zoning Amendments should not create barriers for redevelopment or conversion of these sites.

Hindering the conversion of motels will prematurely affect future sites of affordable housing. As noted in The Kennedy Commission’s letter on December 7, 2021, the Commission expressed concerns of the Candidate Sites for Rezoning stating that “sites listed for lower income have existing structures on them, rendering these sites unlikely to redevelop into affordable housing.” Allowing the conversion of motels will create more opportunities for affordable housing since the opportunity sites may not have the potential to create affordable developments. Motel sites need to be identified as potential opportunity sites in order to realistically meet RHNA goals and housing needs.

RHNA Progress
Addressing the Zoning Amendment change is critically important given that the City’s RHNA Progress has not shown any advancement in reaching its goal. San Clemente’s RHNA goal is 282 units for Very Low, 184 units for Low, 188 units for Moderate, and 348 units for Above Moderate. The City only has 1 unit for Very Low and 14 units for Low, which are all non-deed restricted. Compared to Moderate and Above Moderate, the city has made more progress (216 units) in these income levels than the rest. By restricting the conversion of motels it hinders the 2 112
113
September 17, 2024
San Clemente Planning Commission
City of San Clemente
910 Calle Negocio, Suite 100
San Clemente, CA 92673
RE: Item 8C- Housing Element Action Plan- Objective Design Standards and Zoning Code Amendment ZA24-193
Dear Chairman Cosgrove and San Clemente Planning Commissioners, The San Clement Affordable Housing Coalition (the Coalition) is a grassroots association of individuals and organizations committed to advocating for increased affordable housing opportunities for San Clemente’s lower-income residents. To that end, our group was deeply involved in all stages of the city’s adoption of its recent Housing Element (September 20, 2022 and approved by HCD on October 12, 2022). We remain intensely interested in the city’s progress in meeting the goals stated in this document.

In light of that experience and commitment, we write to express our strong opposition to the proposed Zoning Code Amendment ZA24-193, Item 8C of the agenda for the Planning Commission Meeting on September 19, 2024. We believe certain parts of the proposed Zoning Code Amendment (the Amendment) conflict with provisions of the city’s certified Housing Element. Accordingly, if the city adopts the Amendment as proposed, the Zoning Code will be inconsistent with the General Plan, putting the city at legal peril. At the least, the city will be in the cross-hairs of the enforcement arm of the California Department of Housing and Community Development. Not a good place to be, as San Clemente well knows.

What are the problems with the proposed Amendment? At least two are immediately apparent.

1. The Amendment Guts the Affordable Housing Overlay Zone.

Under the guise of implementing the Housing Element’s “Housing Action Plan,” the city proposes to gut the existing Affordable Housing Overlay Zone set forth in section 17.56.90 of the Municipal Code. The tip off, of course, is the proposed name change. The city wants to rename the code section “Housing Overlay,” dropping the words “Affordable Housing” and 114
thereby signaling a huge change in intent. As amended, the section will no longer encourage affordable housing for very low-income residents. Instead, the code section will allow developers of market rate housing to take advantage of its provisions without providing any lower income affordable housing.

Here's the proof: At page 27 of “Attachment 2-Redline of Zoning Amendment ZA24-193,” under “C. Project Qualification,” the Amendment defines “Qualified Affordable Housing Development” to include “multi-family rental or for sale housing” in which “At least 40% of the housing units are restricted to moderate-income households.” The Amendment would allow the developer of such a project to rent or sell the other 60% of the units at market rate.

The effect of this proposed change is staggering. Where the existing Affordable Housing Overlay Zone requires a developer to provide “a minimum of 51 percent of the housing units for households earning no greater than 50 percent of Orange County Median Income” – i.e., very low-income households – the new Housing Overlay requires zero very low-income units or lowincome units. Of course, a developer could choose to qualify for the Housing Overlay’s benefits by providing “At least 20% of the housing units . . . restricted to low-income households,” but the lure of the more lucrative other route – providing 40% moderate-income units—will be hard for developers to ignore. The very likely result is that any future residential development in the new Housing Overlay will not include any lower-income affordable housing.

San Clemente has a dire need for very low-income affordable housing, which is the most expensive housing for a developer to include in a mixed-income project. That’s why the provisions of the existing Affordable Housing Overlay Zone were so promising: They specifically incentivized exactly the sort of housing the community desperately needs. With the proposed Amendment, that promise will be lost.

And that loss creates a big legal problem for San Clemente. Many of the programs, goals, strategies and polices of the certified Housing Element are based on and incorporate the existing provisions of section 17.56.90. The proposed Amendment throws everything off, including the RHNA assumptions underlying the list of the Candidate Sites for Rezoning. Which brings up the second obvious problem with the Amendment . . . .

2. The Amendment Creates Barriers to Converting Motels Into Affordable Housing The proposed Amendment to section 17.56.090 will restrict the conversion of motels for use as Qualified Affordable Housing Developments. (See note 25 on pp. 33, 41; note 33 on p. 51.) More specifically, the Amendment would effectively outlaw the conversion of motels into affordable housing or permanent supportive housing, with just two exceptions. Those exceptions are (1) if the motel conversion includes an equivalent amount of new, lower-cost visitor-serving accommodations, or (2) if approval of the motel conversion is “required to be approved pursuant to State law.” (The latter exception is left conveniently undefined.) Of course, neither “exception” is easily met. Instead, the Amendment creates a huge impediment to transitioning aging motel properties into affordable housing. Accordingly, this 115
proposed revision conflicts with the Housing Element in several ways, creating further legal peril for San Clemente.

For example, the Amendment conflicts with affordable housing strategies in Housing Element Goal 5.3. Strategy 5.3.1 states: The city will “Encourage redevelopment and adaptive reuse of infill sites and properties in Affordable Housing Overlay Zone, such as conversion of residential motels to apartments.” Contrary to the Housing Element’s express intent here to encourage such redevelopment and adaptive reuse of the motels in the Affordable Housing Overlay Zone, the Amendment creates significant barriers.

Program 5 of the Housing Element, “Affordable Housing Overlay,” states that the city will “prioritize inclusionary in lieu fees for lower income affordable housing projects proposed in the affordable housing overlay/ housing overlay…” Program D3 of the Housing Element states that In Lieu Fees “could be used to acquire existing apartments, construct new apartments, or the purchase and conversion of old motels.” In other words, in these provisions the city has committed to using its in-lieu fees for projects within the housing overlay, specifically including motel conversions, but the Amendment would obstruct these options, thereby impeding affordable housing development.

Significantly, the staff report does not include an analysis of how these revisions will impact the city’s current Housing Element goals for housing opportunities. This is a fatal flaw. San Clemente needs to address this issue by providing an analysis of the changes that will flow from the proposed Amendment and the consequences of those changes on the city’s ability to meet its obligations under the Housing Element.

The Coalition requests that the city honor its commitments in its Housing Element to facilitate affordable lower-income developments on motel sites and as prescribed in the Affordable Housing Overlay. These sites and the existing Overlay are critical to addressing affordable housing needs in the city. The proposed restrictions on the conversion of motels into affordable housing, and the changes to the Affordable Housing Overlay, will hinder the city’s attainment of its lower-income RHNA goals, and directly limit potential affordable housing developments.

Thank you for considering our concerns on these important issues. We urge you to vote no on the proposed Amendment to section 17.56.090.

Sincerely,
Kathy Esfahani
Kathy Esfahani,
San Clemente resident and Chair, San Clemente Affordable Housing Coalition cc: Andy Hall, San Clemente City Manager
Mr. Paul McDougall & Marissa Prasse - CA Dept. of Housing and Community Dev.

Cesar Covarrubias, Kennedy Commission
Richard Walker, Public Law Center
116
117
October 2, 2024
San Clemente Planning Commission
City of San Clemente
910 Calle Negocio, Suite 100
San Clemente, CA 92673
RE: Item 8D- Housing Element Action Plan- Objective Design Standards and Zoning Code Amendment ZA24-193
Dear Chairman Cosgrove and San Clemente Planning Commissioners, The San Clemente Affordable Housing Coalition (the Coalition) submits this letter as a follow-up to our September 17, 2024, public comment on the proposed Zoning Code Amendment ZA24-193. We write to elaborate on two main points and to ask a few questions.

1. The Proposed New Housing Overlay is Inconsistent with the Housing Action Plan.

There is a big flaw in the proposed new Housing Overlay. Where the existing Affordable Housing Overlay provides a developer with the benefit of ministerial approval for a project with 51% of its units designated for very low-income households, the new Housing Overlay provides that valuable incentive to developments with zero lowerincome units.

At page 27 of “Attachment 2-Redline of Zoning Amendment ZA24-193,” under “C.

Project Qualification,” the Amendment defines “Qualified Affordable Housing Development” to include “multi-family rental or for sale housing” in which “i. At least 20% of the housing units are restricted to low-income households; or ii. At least 40% of the housing units are restricted to moderate-income households.” Of course, a developer could choose to qualify for the Housing Overlay’s benefits by providing at least 20% lower income units, but that choice is unlikely. It is far more lucrative for a developer to provide 40% moderate-income units. According, the likely 118
result of adopting this overly broad definition of “Qualified Affordable Housing Development” is that any future residential development in the new Housing Overlay will not include any lower-income affordable housing.

This proposed “40% moderate-income units” requirement brings the new Housing Overlay into direct conflict with important parts of the Housing Action Plan. For example, Program 5: “Affordable Housing Overlay” includes as one of its “Objectives” the following:

“Concurrently with the housing overlay in Program 1, and by-right approvals in Program 2A, modify the Affordable Housing Overlay Zone to improve the effectiveness of the Overlay Zone and make amendments as necessary.

Specifically, evaluate the effectiveness and create one Housing Overlay (H) with objective design standards, minimum levels of affordable housing units, and byright approval if 20 percent of the units are set aside for lower income (very low and low) households (see Program 2A).”
Notably, the Housing Action Plan says nothing about allowing moderate-income housing to qualify for the Affordable Housing Overlay’s “by-right approval” benefit.

Similarly, this proposed change is also inconsistent with “Program 2A—By-Right Approval for Projects with 20 Percent Affordable Units.” In that program, the City commits to the following:
“[T]he City will amend the Zoning Ordinance and apply a Housing Overlay (H) to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower income (very low and low) households, on the following types of sites for meeting the City’s RHNA:
● Sites being used to meet the 6th cycle RHNA that represent a ‘reuse’ of sites previously identified in the 4th and 5th cycles Housing Element. The ‘reuse’ sites are specifically identified in the inventory (Table 4-4). ● Candidate sites that are rezoned within three years from the statutory deadline of the 6th cycle Housing Element (Table 4-6).”
Again, the City’s Housing Action Plan does not express any intention to expand the Affordable Housing Overlay’s by-right approval benefit to moderate income housing.

Moreover, as explained above, expanding the Overlay’s benefits to moderate income housing will siphon off potential opportunities for developing lower-income units at sites within the Housing Overlay. That change will interfere with the City’s ability to meet its Housing Element obligations, and thus get the City in trouble with the Department of Housing and Community Development.
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2. Moderate-income Units Should Not Qualify as Affordable Housing for Purposes of the New Housing Overlay.

The Housing Element itself shows why the City should focus its efforts on facilitating the development of low- and very low-income housing, not moderate-income housing.

The RHNA numbers are a good starting point. In this Planning Period, San Clemente must plan for 448 lower-income units, but only 188 moderate-income units. Making matters worse, the “residential site inventory” falls far short of meeting the lower income RHNA numbers, while that same inventory comes close to meeting the moderate income RHNA numbers. As noted in Program 1 of the Housing Action Plan, the City must rezone additional “candidate sites with a housing overlay (H) . . . to accommodate the City’s RHNA shortfall of 244 lower income units, 21 moderate income units . . .” In other words, rezoning enough sites for lower income units is a much greater need than rezoning sites for moderate income units.

The Housing Element further illustrates the need for focusing City efforts on lowerincome housing with two tables. Table 2-24 (HE-18) shows that “affordable” monthly rents for a four-person household are: $689 for extremely low-income households; $1329 for very low-income households; $2289 for low-income households; $2818 for moderate-income households.

Table 2-23 (HE-17) shows that average rent in San Clemente for a two-bedroom apartment is $2549 ($2484 on Craigslist, $2832 on Zillow).

What these two tables show is that “moderate-income” rents are essentially market rate rents. These rents are already available in San Clemente. It is lower-income housing that is in critically short supply. Consequently, the City will miss a crucial opportunity to expand its supply of critically-needed affordable housing by including “moderate income” units in its definition of Qualified Affordable Housing for purposes of the Housing Overlay.

3. The Amendment Creates Barriers to Converting Motels Into Affordable Housing
The proposed Amendment to section 17.56.090 will restrict the conversion of motels for use as Qualified Affordable Housing Developments. (See note 25 on pp. 33, 41; note 33 on p. 51.) More specifically, the Amendment would effectively outlaw the conversion of motels into affordable housing or permanent supportive housing, with just two exceptions. Those exceptions are (1) if the motel conversion includes an equivalent amount of new, lower-cost visitor-serving accommodations, or (2) if the motel conversion is “required to be approved pursuant to State law.” 120
Of course, neither “exception” is easily met. Instead, the Amendment creates a huge impediment to transitioning aging motel properties into affordable housing. Accordingly, this proposed revision conflicts with the Housing Element in several ways, creating further legal peril for San Clemente. These conflicts were specifically addressed in our letter of September 17.

Here, we would like to ask the Planning Commission a few questions related to this proposed restriction on motel conversions into affordable housing:

1. Why is the City proposing to adopt this restriction on motel conversions if the Coastal Commission does not require such an ordinance?

2. Why does the proposed restriction apply to motels outside of the Coastal Zone, given the fact that the Housing Element commits the City to “Encourage redevelopment and adaptive reuse of infill sites and properties in Affordable Housing Overlay Zone, such as conversion of residential motels to apartments.” (Housing Action Plan, Strategy 5.3.1.)
Conclusion
The Coalition requests that the City honor its commitments in its Housing Element to facilitate affordable lower-income developments on motel sites and as prescribed in the Affordable Housing Overlay. These sites and the existing Overlay are critical to addressing affordable housing needs in the city. The proposed restrictions on the conversion of motels into affordable housing, and the changes to the Affordable Housing Overlay, will hinder the city’s attainment of its lower-income RHNA goals, and directly limit potential affordable housing developments.

Thank you for considering our concerns on these important issues. We urge you to vote no on these specific changes proposed in the Amendment to section 17.56.090.

Sincerely,
Kathy Esfahani
Kathy Esfahani,
San Clemente resident and Chair, San Clemente Affordable Housing Coalition cc: Andy Hall, San Clemente City Manager
Mr. Paul McDougall & Marissa Prasse - CA Dept. of Housing and Community Dev.

Cesar Covarrubias, Kennedy Commission
Richard Walker, Public Law Center
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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: November 19, 2024 Agenda Item: 8C.

Submitted By: Public Works
Prepared By: David Rebensdorf, Public Works Director/City Engineer Subject:
..titl e
PROPOSITION 218 HEARING AND CONSIDERATION OF A RESOLUTION APPROVING THE

COST-OF-SERVICE STUDY, ADOPTING AND SETTING SOLID WASTE COLLECTION

RATES, APPROVING AND AWARDING A SECOND AMENDED AND RESTATED

AGREEMENT TO CR&R INCORPORATED FOR SOLID WASTE HANDLING SERVICES, AND

FINDING THE CONTRACT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ..body ACT
Fiscal Impact:

Customer rates and City revenue will remain unchanged until December 31, 2024. Customer rates will increase or decrease beginning January 1, 2025 depending upon customer type and service frequency if there is not a majority protest and the rates are approved by the City Council.

Per the existing Contract Amendment Number Two, a Consumer Price Index (CPI) change of

7.75 percent was anticipated on July 1, 2024. Rates will be adjusted by a lower percentage according to the proposed revised rates and will reflect a 3.38 percent increase to make up for the adjustment and will be applied to customer bills from January 1 to June 30, 2025.

If the new Second Amended and Restated Agreement for Solid Waste Handling Services (Agreement) is approved following the Proposition 218 Hearing, the City would receive approximately $600,000 per year as a Program Fee to administer and enforce its Solid Waste and Recycling Program, and for the contractor’s use within the public right-of-way. In addition, approximately $448,000 per year will be used to fund Street Sweeping for the removal of trash and debris from public streets and catch basins.

Summary:

The City must adjust services to comply with recent California law including Senate Bill 1383 which imposes significant obligations with regard to the collection and processing of organic materials.

The City has been in the process of negotiating a revision of its current Franchise Agreement with CR&R Incorporated (CR&R) to comply with California law and to modernize and standardize its Franchise Agreement and collection rates with CR&R. The revised Agreement includes continuing existing services consisting of automated curbside, bin collection, and roll-off box service. In addition, performance standards are updated, waste and recycling trucks will be replaced, liquidated damages for non-performance is added, revenue for the City to perform Street Sweeping Services is included and continued use of CR&R’s Anaerobic Digester in Perris is provided to assist the City in meeting its recycling and diversion requirements by turning organics into compost and natural gas.
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Meeting Date: November 19, 2024 Agenda Item: 8C.

CITY OF SAN CLEMENTE 2
The City’s current agreement with CR&R was entered into in 2011. Since that time, it has been amended four times primarily due to regulatory changes and time extensions. Based on recommendations from a report prepared by MSW Consultants in June of 2022, the City and CR&R have been negotiating a new Agreement for solid waste and recycling services (Attachment 4).

A Cost-of-Service Study was completed by R3 Consulting Group, Inc. (Attachment 3) which confirmed and documented recommendations for a Program Fee related to the City’s costs to administer the program and impacts to the public right-of-way for solid waste and recycling services.

In addition, Street Sweeping, currently funded by the General Fund, is recommended to be funded through the solid waste and recycling program to remove trash and debris from City streets and catch basins. This will reduce the burden on the General Fund since Street Sweeping was previously funded by the Clean Ocean Fee. The cost for this service is reflected in the proposed customer rates.

The proposed Agreement provides services and rates commensurate with cities in south Orange County with similar services and ensures that the City will continue to meet State mandated SB 1383 regulatory requirements. The Agreement provides for a ten-year term with an option to extend for two five-year periods, replacement of the majority of fleet of approximately 22 vehicles will be completed by July 1, 2026 when compressed natural gas (CNG) becomes available at CR&R’s facility off Ortega Highway, and liquidated damages if service levels are not maintained.

Subject to the Proposition 218 Hearing, the rate structure is proposed to be set equal to the median rates for services charged by the following nine cities: Aliso Viejo, Dana Point, Laguna Beach, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, Rancho Santa Margarita, and San Juan Capistrano. The majority of the proposed rates have a nominal increase or a modest decrease. Those multiple service days per week for multi-family bin and commercial accounts are going to experience the largest increases. This is primarily caused by current rates that were established in 2011, and have been adjusted to consumer price index (CPI), but have not taken into account costs to provide multiple service days per week. In an attempt to lower rates for multi-day service, customers should evaluate their trash and recycling use to ensure their service level is right sized for their use.

Before the City Council at this time is the Proposition 218 Hearing; notice of the proposed rates was mailed to property owners and current CR&R customers on October 4, 2024, which was at least 45 days prior to the Public Hearing on November 19, 2024. The proposed Agreement with CR&R is contingent upon approved rates following the Proposition 218 Hearing and the number of protests received. If the proposed rates are approved, and there is not a majority protest, the Agreement would begin on January 1, 2025, with median rates adjusted on July 1, 2025, since several contracts in south Orange County are still under negotiation. Future annual rate adjustments will occur on July 1 and will be based on CPI through June 30, 2030. A portion of the rate increase will adjust for collection costs that were not captured due to the delay in the planned rate increase on July 1, 2024.
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Meeting Date: November 19, 2024 Agenda Item: 8C.

CITY OF SAN CLEMENTE 3
Background:

In June of 2022, MSW Consultants prepared a report titled “Recommendation Regarding the City’s Solid Waste and Franchise Agreement with CR&R” (Attachment 5) which provided information related to trends within the industry, information about the market, a list of companies providing solid waste and recycling services within Orange County, an overview of the franchise agreements, and recommendations for the City. Based on the report, the recommendation was to negotiate with CR&R. Unfortunately, negotiations, analysis, and a Cost-of-Service Study took longer than anticipated. The Cost-of-Service Study confirmed and documented in connection with the Proposition 218 Hearing, recommendations for a Program Fee related to the City’s costs to administer the program and impacts to the public right-of-way for solid waste and recycling services. The proposed Program Fee is approximately $600,000 per year to fund the program.

Street Sweeping was previously funded through the City’s Clean Ocean Program, but due to the expiration of the fee, is subsidized through the General Fund. Since Street Sweeping includes trash and debris removal from the City public right-of-way and catch basins, it is common practice to fund or provide service through the Solid Waste and Recycling Program. Based on a current cost to implement Street Sweeping at approximately $600,000 per year with revenue of $265,000 from parking enforcement, the net cost needed to fund Street Sweeping is $335,000 per year.

Accordingly, City staff recommends $450,000 per year to fund Street Sweeping and cleaning of catch basin and vortex units to ensure materials do not reach canyons and beaches throughout the City.

The new Agreement with CR&R will enable the City to comply with the requirements of SB 1383 and will include services, such as, multi-family organics collection (food waste), contamination monitoring, enhanced education and outreach, procurement assistance, reporting, and monitoring. In addition, the proposed Agreement includes the same services customers are currently accustomed to, including: four bulky item pickups per year of up to four items each time, household special waste collection, implementation of household pharmaceutical waste collection, walkout service for disabled customers, and organic waste collection.

A critical factor to assist the City in achieving compliance with current regulations is CR&R’s ability to achieve diversion and procurement goals. Examples include Anaerobic Digestion, CR&R’s state-of-the-art facility located in Perris, CA, which converts green waste and food waste into high-grade organic soil amendment (nutrient), and through the anaerobic digestion process, methane gas is captured and converted into clean renewable natural gas (RNG), which is used to power their fleet.

CR&R’s Perris Anarobic Digester for Organic Waste Recycling 124
Meeting Date: November 19, 2024 Agenda Item: 8C.

CITY OF SAN CLEMENTE 4
The proposed term of the Agreement is for ten years with an option to extend for two additional five-year periods, if mutually agreed upon. One of the reasons for the long term is to accommodate the replacement of the service vehicles to CNG to conform with state requirements and to ensure proper service.

One key factor added to the Agreement is a section to assist the City in holding the contractor accountable if they do not meet service requirements; the City will have the ability to assess liquidated damages if service levels are not maintained as described within the Agreement.

The rate structure is proposed to be set equal to the median rates for services charged by the following nine cities: Aliso Viejo, Dana Point, Laguna Beach, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, Rancho Santa Margarita, and San Juan Capistrano. According to the Costof-Service Study, which is presented as Attachment 4 in connection with the Proposition 218 Hearing, the proposed City Program Fee does not exceed the cost-of-service.

Before being approved, rates are subject to Proposition 218 and a 45-day notice which was sent on October 4, 2024 to property owners and customers prior to the Public Hearing to set rates. If a majority protest is not received and the rates are approved by the City Council following the Proposition 218 Hearing, the new rates would go into effect on January 1, 2025.

Proposed rates between January 1, 2025 to June 30, 2025 will include a 3.38 percent increase due to the delay in increasing rates planned for July 1, 2024 based on CPI. In addition, a median rate adjustment is proposed take place on July 1, 2025 since several contracts in south Orange County are still under negotiation. The July 1, 2025 rates as shown in Attachment 2 will be the maximum rates, with actual rates established through a median rate analysis of the nine south Orange County cities which will be set at the maximum rate or lower. In the future, rates will be increased based on CPI through June 30, 2030. Another rate adjustment based on median rates as described above will be conducted on July 1, 2030, subject to the Proposition 218 process.

Impacts to the most common customer rates are shown below (see Exhibit A and Attachment A for all other rates):
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CITY OF SAN CLEMENTE 5
Customer Type Current Rate January 1, 2025 July 1, 2025 Max.

Res. 35 gal cart $25.33 $25.60 $25.63
Res. 65 gal cart $26.17 $26.74 $26.78
MF 95 gal set $37.31 $27.58 $27.48
MF/Comm 3 yard bin
x1/week
$184.06 $179.79 $178.90
MF/Comm 3 yard bin
x2/week
$224.70 $277.26 $296.45
The majority of rates have a nominal increase (Residential 65-gallon cart increase $0.57 per month) or decrease (for Multi-family 95 gallon cart will be reduced by $9.73 per month since they will be categorized as residential). Multiple service days per week for multi-family bin and commercial accounts are going to experience higher increases (Multi-family/Commercial 3-yard bin with 2 days per week service increases $52.56 per month). This is primarily caused by current rates that were established in 2011, and have been adjusted to consumer price index (CPI), but have not taken into account costs to provide multiple service days per week. The prices reflect the current market costs for the service types. Customers may want to consider reducing their service frequency, if their bins are not adequately full before service or reduce waste disposal and increase recycling to potentially reduce costs.

Council Options:
 After conducting the Proposition 218 Hearing, adopt Resolution No. 24-167 approving and setting rates as proposed, approving the Agreement with CR&R, and finding the project categorically exempt from the California Environmental Quality Act under Class 1.  Modify and adopt Resolution No. 24-167.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council conduct the Proposition 218 Hearing, and if there is no majority protest, adopt Resolution No. 24-167, which will:

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

2. Approve and adopt the Cost-of-Service Study (Attachment 3); 126
Meeting Date: November 19, 2024 Agenda Item: 8C.

CITY OF SAN CLEMENTE 6

3. Set and adopt the Solid Waste and Recycling Rates as proposed (Exhibit A and Attachment A to Attachment 1); and

4. If the rates are approved, award and authorize the City Manager to execute a Second Amended and Restated Agreement between the City of San Clemente and CR&R Incorporated for Solid Waste Handling Services (Attachment 2). ..end
Attachment:

1. Resolution No. 24-167
Exhibit A - Proposition 218 Notice
Attachment A - Rates

2. Second Amended and Restated Agreement between the City of San Clemente and CR&R Incorporated for Solid Waste Handling Services

3. R3 Consulting Group, Inc. Cost-of-Service Study

4. MSW Consultants report titled Recommendation Regarding the City’s Solid Waste and Franchise Agreement with CR&R

5. Amended and Restated Agreement for Solid Waste Handling Services (the "2011 Agreement")

6. Amendment No. 1 to the 2011 Agreement

7. Amendment No. 2 to the 2011 Agreement

8. Amendment No. 3 to the 2011 Agreement

9. Amendment No. 4 to the 2011 Agreement
Notification:

Published in the OC Register and Proposition 218 Notices were provided to all property owners and customers.
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RESOLUTION NO. 24-167

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN CLEMENTE, CALIFORNIA, APPROVING THE COSTOF-SERVICE STUDY, APPROVING AND SETTING SOLID

WASTE COLLECTION RATES, APPROVING AND

AWARDING A SECOND AMENDED AND RESTATED

AGREEMENT TO CR&R INCORPORATED FOR SOLID

WASTE HANDLING SERVICES, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENT AND

FINDING THE CONTRACT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR
15301), SECTION 15301 OF THE STATE CEQA

GUIDELINES
WHEREAS, City and CR&R Incorporated entered into that certain Amended and Restated Agreement for Solid Waste Handling Services (the "2011 Agreement”) dated January 1, 2011; and
WHEREAS, City and CR&R entered into that certain Amendment No. 1 to the 2011 Agreement on June 13, 2016 (“First Amendment”); and
WHEREAS, City and CR&R entered into that certain Amendment No. 2 to 2011 Agreement on November 9, 2021 (“Second Amendment”); and WHEREAS, on September 26, 2022, City issued to CR&R a Notice of Termination of the automatic renewal of the 2011 Agreement, as amended, which resulted in an expiration date of June 30, 2024; and
WHEREAS, on July 1, 2024, City and CR&R entered into that certain Amendment No. 3 to the 2011 Agreement (“Third Amendment”), which extended the term through October 31, 2024; and
WHEREAS, on October 1, 2024, City and CR&R entered into that certain Amendment No. 4 to the 2011 Agreement (“Fourth Amendment”), which extended the term through December 31, 2024; and
WHEREAS, the 2011 Agreement as amended by the First, Second, Third and Fourth Amendments are referred to hereafter as the “Franchise Agreement”; and WHEREAS, the City must adjust services to comply with recent California law including Senate Bill 1383 which imposes significant obligations with regard to the collection and processing of organic materials; and
WHEREAS, in June of 2022, MSW Consultants prepared a report titled “Recommendation Regarding the City’s Solid Waste and Franchise Agreement with Attachment 1
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CR&R”, which provided information related to trends within the industry, information about the market, a list of companies providing solid waste and recycling services within Orange County, an overview of the franchise agreements, and recommendations for the City, including a recommendation to negotiate with CR&R for a revised agreement; and WHEREAS, the City has been in the process of negotiating a revision of its Franchise Agreement with CR&R to comply with California law and to modernize and standardize its Franchise Agreement and collection rates; and WHEREAS, in October 2024, R3 Consulting completed a Program Fee Cost-ofService Study in connection with setting new rates; and WHEREAS, the City and CR&R desire to amend their Agreement to comply with SB 1383 and other applicable state law; and
WHEREAS, CR&R will provide services to implement the SB 1383 Regulations; and
WHEREAS, the City has determined that it is necessary to impose new, increased or modified rates for solid waste service charges (collectively herein, the “Charges”); and
WHEREAS, the rate structure for solid waste, recycling and organics collection includes three customer classes – residential, multi-family, and commercial, based on the container size, type of service, and frequency of collection; and WHEREAS, the revenues derived from the Charges will not exceed the funds required to provide the services for which the Charges are imposed, and will be used exclusively for the provision of the City’s solid waste services; and WHEREAS, the Charges are equitable to all customer classes; and WHEREAS, the amount of the Charges will not exceed the proportional cost of the service attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the Charges will not be imposed on a parcel unless the service for which such Charge is imposed, is actually used by, or immediately available to, the owner of the parcel; and
WHEREAS, Article XIII D, Section 6 of the California Constitution (“Article XIII D”) requires that prior to imposing any increase to the Charges, the City shall provide written notice (the “Notice”) by mail of the new or increased Charges to the record owner of each parcel upon which the Charges are proposed for imposition and any tenant directly liable for payment of the Charges, the amount of the Charges proposed to be imposed on each parcel, the basis upon which the Charges were calculated, the reason for the Charges, and the date time and location of a public hearing (the “Hearing”) on the proposed Charges; and
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WHEREAS, pursuant to Article XIII D, such Notice is required to be provided to the affected property owners and any tenant directly liable for the payment of the Charges not less than 45 days prior to the Hearing on the proposed Charges, and the City provided such Notice in compliance with Article XIII D; and WHEREAS, the Hearing was noticed for November 19, 2024; and WHEREAS, at the Hearing, the City Council heard and considered all oral testimony, written materials, and written protests received concerning the establishment and imposition of the proposed rate increases for the Charges, and at the close of the Hearing, the City did not receive written protests against the establishment and imposition of the proposed rate increases for the Charges from a majority of the affected parcel owners subject to Charges; and WHEREAS, the City Council now desires to establish and impose the proposed Charges as set forth in Exhibit A hereto, which is fully incorporated herein by this reference.

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

Section 1. That the above recitals are true and correct and incorporated herein fully as findings.

Section 2. That this 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 the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, and there is no reasonable possibility that the activity will have a significant direct or foreseeable indirect effect on the environment.

Section 3. That the October 2024 Program Fee Cost-of-Service Study completed by R3 Consulting Group, Inc. is hereby approved and adopted as presented.

Section 4. Adoption of Solid Waste Service Charges. The City Council hereby sets and adopts the solid waste service charges, to take effect on the dates, in the amounts and at the rates set forth in Exhibit A hereto with future increases as set forth in the Proposition 218 Notice.

Section 5. That a solid waste handling services agreement is hereby awarded to CR&R Incorporated. The City Manager is authorized and directed to execute a Second Amended and Restated Agreement with CR&R Incorporated for Solid Waste Handling Services in a form substantially similar to that presented to the City Council on November 19, 2024.

Section 6. That the City Clerk shall certify to the passage and adoption of this 130
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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
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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. 24-167 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
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Exhibit A
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2 nd AMENDED AND RESTATED AGREEMENT

BETWEEN THE
CITY of SAN CLEMENTE
AND

CR&R INCORPORATED

FOR SOLID WASTE HANDLING SERVICES

EFFECTIVE -----
ATTACHMENT 2
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FINAL REPORT
City of San Clemente
submitted electronically on November 7, 2024
Solid Waste Franchise Fee
Cost of Service Study
Attachment 3
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1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com October 7, 2024
Mr. Eric Vail
City Attorney – City of San Clemente
Burke, Williams, & Sorenson, LLP
submitted via email: [email protected]
SUBJECT: Solid Waste Franchise Fee Study – R3 Report
Dear Mr. Vail,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached report of Solid Waste Franchise Fee Study (Study) to the City of San Clemente (City). This report presents our analytical methodology, results and findings, and recommendations regarding the solid waste Franchise Fee paid by the City’s contracted solid waste collection service provider, CR&R Incorporated (Contractor), per the Agreement for Solid Waste Handling Services (Agreement) between the City and the Contractor.

The purpose of this Study was to comprehensively analyze and calculate the following:

City’s Costs: The annual costs to the City for performing its management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.

Property Use Charges: The annual use charge to the Contractor for its special and lasting access to use government property in the public right-of-way for placement of solid waste containers and collection of the solid waste contents.

Pavement Impacts: The annualized costs for pavement repair, maintenance, and rehabilitation resulting from the unique impacts to City street pavement caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service.

We then compared the calculated values to the annual Franchise Fee paid by the Contractor to the City per the Agreement. We found that the City’s current and projected Franchise Fee revenues are less than the sum of the City’s Costs and government Property Use Charges calculated in this Study. Based on these results, we conclude that the City’s Franchise Fee is not more than necessary to cover the City’s costs in managing and administering the Agreement and the sanitation system plus the value of the Contractor’s use of the public right-of-way. We also calculated values for Pavement Impacts in this Study and note that the City is not currently compensated for Pavement Impacts.

We appreciate the opportunity to be of service to the City. If you have any questions regarding this report or need additional information, please contact me.

Sincerely,
Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | [email protected]
259

TABLE OF CONTENTS
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report toc - i

1. Executive Summary
page 1

2. Methodology & Calculations
page 4

3. Findings & Conclusions
page 17

4. Recommendations
page 18
260

1. EXECUTIVE SUMMARY
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 1 of 18 Background
The City’s Agreement with the Contractor is for the collection, processing, and disposal of solid waste from Contractor’s solid waste service subscribers in the City. The Agreement provides the Contractor with the exclusive right to provide critical aspects of the City’s sanitation system, including solid waste collection and the other services and programs included in the Agreement. The Agreement specifies that the Contractor will charge solid waste service subscribers, with the Contractor billing and collecting revenues from subscribers and the City authorizing the maximum rates that the Contractor may charge pursuant to the rate adjustment methodology included in the Agreement.

Per the Agreement, the Contractor pays the City a Franchise Fee. Franchise Fees paid to the City cover the costs incurred by the City in managing, administering, enforcing, and supplementing the services provided in the Agreement, as well as the charge for the use of the public right-of-way for the special and lasting access to use it for set-out and collection of solid waste containers.

Purpose
The purpose of this Study is to identify the amounts that may be reasonably recovered through the Franchise Fee paid by the Contractor to the City are exempt from consideration as taxes. In terms of the applicable legal framework, this analysis seeks to quantify whether amounts that may be reasonably recovered through the Franchise Fees paid by the Contractors to the City fall within an exemption to the definition of a tax per Article XIII C, Section 1(e) of the California Constitution (“Proposition 26”).

There are four primary exceptions to the Proposition 26 definition of tax that are relevant:

Exception 1: “A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.” Exception 2: “A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” Exception 3: “A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.” Exception 4: “A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.” The Franchise Fee is a fee with two components. The first component includes the City’s proportionate costs (City’s Costs). The second component includes the proportionate charges for the Contractor’s use of the public right-of-way (Property Use Charges).

Methodology and Findings
To complete this Study, R3 reviewed and analyzed information provided by the City and the Contractor pertaining to the City’s Costs, Property Use Charges, and Pavement Impacts. Using that information, we then calculated the proportionate amounts necessary to cover the City’s costs, including staffing and other costs; use of government property in the public right-of-way; and pavement repair, maintenance, and rehabilitation costs caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service. All calculated amounts in this Study are in current Fiscal Year (FY) 2023-24 dollars.

City’s Costs
The annual costs for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the 261
Executive Summary
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 2 of 18 sanitation system includes: staffing salary and benefits, contracted services, and overhead for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Staffing costs are calculated based on estimated time allocations (based on historical experience and the assessment of current City employees) and maintenance contractor costs are calculated based on estimated share allocations associated with the sanitation system, with distributed overhead applied to both.

The calculation results are $76,141 in annual staffing costs and $95,442 in annual maintenance contractor costs for annual total City Costs of $171,583.

Property Use Charges
The annual charge to the Contractor for use of government property in the public right-of-way is calculated as a function of estimates for the number of solid waste accounts setting out solid waste collection containers in the right-of-way, the set-out area used, the amount of time it is used, and the market value for the per square foot use of the public right-of-way.

The calculation result for the use of the public right-of-way is an annual total Property Use Charge of $574,330.

Pavement Impacts
The annualized costs for pavement repair, maintenance, and rehabilitation is calculated based on the proportionate impact to pavement from solid waste collection vehicles compared to other sources of impacts. This calculation accounts for annual repair costs, five-year projections for capital improvement costs, and five-year projections for growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation result for the Pavement Impacts caused by Contractor’s solid waste collection vehicles during the course of providing sanitation service is an annualized total repair, maintenance, and rehabilitation cost of $338,807.

Conclusions
Franchise Fee
The FY 2022-23 Franchise Fee paid by the Contractor to the City was $530,795 and the projection for FY 2023-24 is $557,334. The sum of FY 2023-24 annual City’s Costs and amounts for Property Use Charges calculated in this Study is $745,913, which is $188,578 (34%) higher than the projected FY 2023-24 Franchise Fee payments.

The amount of the Franchise Fee is therefore not more than necessary to cover the City’s costs incurred in managing and administering the Agreement and the sanitation system plus the value of the Contractor’s use of the public right-of-way.

Though this Study calculates Pavement Impacts caused by Contractor’s solid waste collection vehicles during the course of providing sanitation service, the City is not compensated for such impacts.

Reasonableness of Estimates and Assumptions
In performing calculations, it was necessary to estimate certain values for which reasonable ranges exist.

Where assumptions were necessary for completing calculations, our objective was to apply assumptions on the lower end of the reasonable range. Had we used other higher assumptions, the results of this Study would have been higher calculated Franchise Fee amounts. Therefore, we conclude that the calculated fee amounts are not higher than necessary to cover the City’s reasonable costs plus the reasonable value of the Contractor’s use of the public right-of-way. 262
Executive Summary
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 3 of 18 Limitations
This Study relies on information provided by the City and the Contractor, which we have reviewed and analyzed for reasonableness and accuracy but did not independently audit or verify.

As stated above, it was necessary to estimate certain values for which reasonable ranges are known to exist. Though changes to estimates and other underlying assumptions may materially change the calculations, we have elected to apply estimates on the low end of reasonable ranges, thus minimizing the potential that changes in calculations would result in different ultimate findings. We have reviewed estimates and assumptions with City staff and legal counsel and have mutual concurrence on applicability and reasonableness of all such values in this Study.

Finally, the methodology employed by this Study calculates the reasonable values for the Franchise Fee within the context of current laws, regulations, and court rulings. Changes in the legal framework may require revisions to the methodology and findings contained in this Study. 263

2. METHODOLOGY & CALCULATIONS
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 4 of 18 City’s Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund costs incurred for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.

These costs include and may not be limited to:

Staffing costs, including salaries and benefits.

Contracted maintenance services.

Overhead for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Using the total annual salary, benefits, and other cost information provided by the City, we estimated the proportion of costs associated with management and administration of the agreement and the sanitation system. We then calculated the proportionate totals and categorized them by the functions listed in the sections below.

Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are dedicated to management and administration of the Agreement and the sanitation system (including time supervising others with primary responsibility for these duties), the amount by which funding of salaries and benefits is paid by the General Fund, and the applicable amount of General Fund overhead.

The estimated time allocation by position category used in this Study (and based on historical experience) is shown in Table 1, below and on the following page, along with the explanation for the allocation values.

Table 1: Allocations of Staffing Time by Position
Positions Time
Allocation Explanation
City Manager, Deputy City Clerk, Code
Compliance Officers (2), Sr. Code Compliance
Officer, Public Works Director, Maintenance
Operations Supervisor, Maintenance Manager.
5%
Estimated allocation based on
estimated minimum overall time
spent in management and
administration of the Agreement and
the sanitation utility.

Associate Civil Engineer, Assistant Engineer, Sr.

Civil Engineer, Maintenance Worker I,
Maintenance Worker II, and Maintenance Lead
worker.
21%
Calculated value based on the
percentage of time spent on
pavement rehabilitation, repair and
improvement projects applicable to
Contractor’s operations in the City.

R3 verified with City staff that the salaries and benefits included in this Study are paid by the General Fund – any non-General Fund portions of positions included in Table 1 have been excluded from the calculations. A General Fund overhead rate of 10% (the low end estimate provided by R3 based on historical experience for the for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs.
264
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 5 of 18 It should be noted that the City’s Environmental Services Coordinator position, which has direct responsibility for management and administration of the Agreement is not included in the staffing costs calculated via this Study because that position is already funded via dedicated funding and is not funded by the Franchise Fee.

Analysis
Direct Management and Administration
This category includes City staffing costs for direct management and administration of the Agreement and the sanitation system. Direct annual staffing costs calculated by this Study are $24,281.

Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including supervision of those responsible for direct management and administration of the Agreement and the sanitation system and associated responsibilities. Indirect annual staffing costs calculated by this Study are $29,835.

Code Enforcement
This category includes City staffing costs for enforcing the solid waste provisions of the City’s Municipal Code, which includes illegal solid waste accumulations, illegal dumping, littering, improper waste collection setouts, nuisances, and the associated investigations, warnings, notices of violation, and administration of penalties. Annual code enforcement staffing costs calculated by this Study are $22,025.

Street Sweeping
The Contractor provides street sweeping services to the City, with those services being funded by a separate funding mechanism per the Agreement. Street sweeping services are not funded by the Franchise Fee and therefore the costs for street sweeping services are not included in this Study.

Catch Basin Waste Removal
Catch basin waste removal services are funded by the City’s Storm Drain Operating Fund. Catch basin waste removal services are not funded by the Franchise Fee and therefore the costs for those services are not included in this Study.

Illegal Dumping Clean-up
Illegal dumping waste removal and clean-up services are funded by other City funding sources. Illegal dumping clean-up services are not funded by the Franchise Fee and therefore the costs for those services are not included in this Study.

Waste Removal from Public Locations
The City hires maintenance contractors for a variety of maintenance services (including waste and litter removal) which are performed in City parks, trails, beaches and pier. The City tracks total annual costs for parks maintenance services performed by such contractors. For the purposes of this Study, we estimate that 25% of the total annual maintenance costs are for removal of waste and litter (an assumption which is based on our prior experience managing such contracts for local governments) except in cases where line-item costs for waste and litter removal are known (in which case the calculated proportion of annual costs is 26%). Based on this assumption, the City’s estimated annual costs for waste and litter removal from the City’s parks, trails, beaches and pier are $406,327 (and approximately 25% of total annual contracted maintenance costs).
265
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 6 of 18 Of that amount, this Study assumes that only 20% of the waste and litter removal costs are attributable to waste generators receiving solid waste services from the Contractor. This assumption is based on the likelihood that most waste and litter disposed in the City’s parks, trails, beaches and pier is not generated by Contractor’s customers. Applying this assumption results in an annual cost of waste and litter removal estimated by this Study of $89,392.

Waste Collection from City Events
The City’s maintenance contractors (mentioned above) also provide for maintenance and waste removal services at City events. The City tracks total annual costs for maintenance and waste removal services at City events. For the purposes of this Study, we estimate that only 25% of the total annual maintenance costs are for removal of waste and litter, which is the same assumption as referenced in the prior section.

Based on this assumption, the City’s estimated annual costs for waste and litter removal from the City’s events are $27,500.

Of that amount, this Study assumes that only 20% of the City event waste and litter removal costs are attributable to waste generators receiving solid waste services from the Contractor. This is the same assumption referenced in the section above. Applying this assumption results in an annual cost of City event waste and litter removal estimated by this Study of $6,050.

Annual Total of City’s Costs
Table 3, below, shows the total of the City’s Costs for management and administration of the Agreement and the sanitation system as calculated in this Study, by category.

Table 3: City’s Annual Costs by Category and in Total
Category Staffing Costs Maintenance
Contractor Costs Total
Direct Management and Administration $24,281 $ - $24,281 Indirect Management and Administration $29,835 $ - $29,835 Code Enforcement $22,025 $ - $22,025
Waste Removal from Public Locations $ - $89,392 $89,392 Waste Collection from City Events $ - $6,050 $6,050
Total Annual City’s Costs $76,141 $95,442 $171,583
Property Use Charges
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to Property Use Charges for Contractor’s use of the public right-of-way for collection of solid waste collection containers.

They then calculated the annual Property Use Charges based on:

The setout area used for collection of solid waste containers (in square feet).

The amount of time that the area is used.

The market value for use of the public right-of-way (in dollars per square foot). 266
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 7 of 18 The number of solid waste subscribers setting out collection containers in the public right-ofway.

Using these values, we calculated the market value for the Contractor’s use of government property in the City.

Variables, Estimates, and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection containers, usually carts with wheels and lids, with one each for garbage, recycling, and organics waste streams. The setout area needed for placement of these containers is inclusive of the width of each container (typically two feet) as well as minimum required space between the containers and other objects such as cars (minimum of one feet). The set-out area also takes up available parking space and is, thus, assumed to extend six feet out from the curb. Taken altogether, the area for residential setouts is calculated as three containers that are each two feet wide, plus one foot between each container and other objects, for a total area ten feet wide times six feet in depth. The result is 60 square feet of setout area per serviced singlefamily residential property.

The amount of area used for commercial setouts (in this Study, use of the term commercial also always includes multi-family) can vary widely, as there is no standard commercial subscription size profile – each commercial solid waste subscriber can select from a range of container sizes, with most of them being larger than the containers used in residential areas. Given this complexity, this Study assumes that the average commercial setout area is twice that of the residential setout area, for 120 square feet.

Commercial solid waste containers, especially the metal bin-type containers, range in size from one cubic yard to four cubic yards (which are approximately two to eight times the volume of the largest residential containers) and are thus typically much larger in footprint area than residential containers.

Additionally, commercial subscribers can and often do use a greater number of containers than residential customers. For these reasons we conclude that our assumption of 120 square feet for commercial setouts (twice the residential setout) is likely lower than the average setout area needed in commercial areas and is, therefore, conservative. If detailed information about the number and type of commercial containers were available, it is likely that information would support setout areas larger than the 120 square feet assumed in this Study.

Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential containers are set out the evening prior to collection and are removed from the public right-of-way the following afternoon.

Thus, for the purposes of this Study, we assume that collection containers are in the public right-of-way for an average of 18 hours per day, one day per week, which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by 7 days per week).

Commercial solid waste subscription setout times can vary widely – just as there is no standard commercial subscription size profile, likewise there is no standard collection frequency. Commercial solid waste subscribers can select collection frequency between once and six times per week, and with different frequencies for different waste streams. Given this complexity, this Study assumes that the average commercial collection frequently is twice weekly, for 21.42% of the time. As with the setout area, this estimate is likely lower than the average commercial collection frequency and is, therefore, conservative.
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Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 8 of 18 Market Value for Use of Public Right-of-Way
To establish the market value for use of the public right-of-way, R3 conducted an online survey of recent purchases of bare land in the City and locally in Orange County. R3 sampled 27 recent sales of bare land which were sold at a median price of $131.01 per square foot. To that value, R3 added the per square foot value of the City’s street pavement, which is calculated as a function of the total replacement value of the City’s streets ($568,400,000) divided by the area of the streets in square feet (30,627,122) both of which are contained in the City’s 2023 PMP (see next section). The resultant value of the street improvements is $18.56 per square foot, which, when added to the median $131.01 market value of bare land, yields $149.57 per square foot.

This value is then divided by a rental realization rate of 14.49, which was established via online survey of 25 parking space rentals in and around the City, resulting in a total annual per square foot use charge for the public right-of-way of $10.32. This value is then divided by 2, for extra reasonableness, yielding a per square foot property use charge for the purpose of this Study of $5.16. R3 believes this value to be conservative – other methodologies that could have been applied would have resulted in a higher estimated market value for the use of the public right-of-way. For example, had this Study used “parklet rental fee” charges established in other California communities, with an approximate average annual per square foot value of $15.00 per square foot, the results from this Study would be higher than estimated herein.

Number of Subscriptions Setting Out Containers
The Contractor reports that there are 18,985 residential and 1,251 commercial solid waste service subscribers in the City. However, not all subscribers set out their containers in the public right-of-way for collection all the time. To account for non-setouts (either because subscribers don’t have waste materials to set out or because they receive on-premises service) we assume that only 90% of residential solid waste subscribers set out containers on a regular basis, for a resulting total of 17,062 average residential setouts. It is also understood that most commercial subscribers do not set out containers in the public right-of-way, and therefore we conservatively assume that only 5% of commercial subscribers set out containers on a regular basis, for a resulting total of 63 average commercial setouts. It should be noted that the 90% set-out estimate for residential customers may be low, and the 5% set-out rate for commercial customers is almost certainly low – were one to take field observations for these values, we believe that the actual rates of set-out would be higher than used for the purposes of this Study.

Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 4, below.

Table 4: Calculation of Total Annual Property Use Charges Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 60 SF 120 SF
Setout Time Usage 10.71% 21.42%
Annual Use Charge $5.16 per SF $5.16 per SF
Number of Setouts 17,062 63
Total Annual Property
Use Charges $565,971 $8,359 $574,330
268
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 9 of 18 Pavement Impacts
Methodology
R3 reviewed and analyzed information provided by the City pertaining to Pavement Impacts from the Contractor’s solid waste collection vehicles. We then calculated estimates of the proportionate share of the average annual pavement repair, maintenance, and rehabilitation costs associated with solid waste collection vehicles based on the proportionate impact to pavement from solid waste collection vehicle compared to other sources of impacts.

The calculation accounts for the City’s annual repair costs, five-year projections for capital improvement costs, and five-year projections for annualized growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation proportionately allocates the average annual pavement management costs to solid waste vehicles based on:

The equivalent single-axle load and proportionate impacts from speed for those vehicles compared to other vehicles.

The number of vehicle trips on City streets.

The proportion of vehicle trips that are made by trucks versus automobiles.1 Variables, Estimates, and Assumptions
The weight, loading, slow speed, and frequent stops that characterize solid waste collection vehicle operations impose unique and quantifiable impacts on the City’s street pavement. It is important to understand that, while calculation of vehicle impacts to pavement can be precise for individual vehicles, out of necessity we made certain assumptions about overall blended pavement impacts associated with several categories of vehicle types for the purposes of this Study. This is because we sought to calculate estimated impacts to all street pavement in the City, covering all vehicle uses, and precise traffic information at that scale is not currently available. Thus, we make informed assumptions regarding several variables necessary for this Study.

For each of these variables, there is a range of potentially reasonable values that may be used. We have selected values at the low end of the reasonable range to present findings that conservatively calculate estimated values of the pavement impacts associated with the Contractor’s solid waste collection vehicles during the course of providing sanitation service.

Assumptions used are described in the following subsections, which reference sources supporting the summary provided here. We must note that changes in assumptions may result in material changes in calculation results and findings.

Factors Impacting Pavement Conditions
Street pavement repair, maintenance, and rehabilitation needs and their resulting costs are affected by several factors, including vehicle usage and trench cuts and subsurface activities related to underground utilities.
1 Our analysis accounts for the distribution of vehicles among the 13 Federal Highway Administration vehicle classifications, which include passenger cars, SUVs/pick-ups, buses, and multiple truck and truck/trailer axle combinations.
269
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 10 of 18 Environmental conditions such as light and water also contribute to pavement repair, maintenance, and rehabilitation needs in combination with the primary impacts from vehicles, trench cuts (for maintenance and repairs to underground utilities), and subsurface activities related to underground utilities. This Study only focuses on the impacts to street pavement from vehicles, and the proportion of those impacts that are attributable to the Contractor’s solid waste collection vehicles as they perform sanitation service.

City’s Costs for Pavement Repair, Maintenance and Rehabilitation The City regularly projects its costs for repair, maintenance, and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in Pavement Management Technical Assistance Program (PMP) reports which the City commissions with engineering consultants. Per the City’s May 2023 PMP report, the City’s projected average annual pavement maintenance and rehabilitation costs from 2023 through 2027 for its entire street network, are approximately $5.5 million. Of that, the City has budgeted $800,000 per year to be paid from the General Fund.

Axle Loading
Our methodology for calculating the proportionate amount of pavement maintenance, and rehabilitation impacts for the Contractor’s vehicles is grounded in the fact that all vehicles, including solid waste collection vehicles, degrade pavement during use. Measurement of that impact – also known as “vehicle loading” – can be estimated, quantified, and expressed as an Equivalent Single Axle Load (ESAL), which is a function of the vehicle’s weight and the distribution of that weight over the vehicle’s axles.

It is important to note that heavier vehicles (including solid waste vehicles) have more impacts on pavement and have a higher vehicle loading ESAL value. It is also important to note that ESAL values are associated with vehicle loading only, and not the speed of the vehicle; it is therefore assumed that relative ESAL values between vehicle types are based on vehicles travelling at the same rate of speed. For this analysis, R3 used the vehicle categories and average ESAL values shown in Table 5, below. Table 5 explains and cites supporting information for how the ESAL for each vehicle type was determined. It should be noted that solid waste collection vehicles are much heavier than most other typical vehicles on City roadways.

Table 5: ESAL Value Assumptions by Vehicle Type
Vehicle Type ESAL
Value Source
Automobiles (Passenger Cars) 0.0008
AASHTO (American Association of State Highway and
Transportation Officials) Design Guide with ESALs by
Vehicle Type
Average of All Other Trucks2 0.0171
Calculated Value Using AASHTO Design Guide with
ESALs by Vehicle Type, Federal Highway Administration
ESALs by Vehicle Type, Comparative Traffic Counts
Solid Waste Vehicle (Garbage) 1.0000
Calculated Values by Type Using Example Axle Weights
and AASHTO Axle Load Equivalency Factors Solid Waste Vehicle (Organics) 1.0000 Solid Waste Vehicle (Recycling) 0.7500
2 “All other trucks” means all vehicles with high loading and impact on street pavement other than solid waste vehicles, including pickup trucks, vans, box trucks, and a variety of other trucks with a lower average ESAL than solid waste collection vehicles.
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Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 11 of 18 Given the assumed ESAL values in Table 5, a solid waste vehicle collecting garbage has 1,250 times the impact of an automobile. We are aware of other research concluding that the impacts of solid waste collection vehicles may be as high as 8,000-9,000 times the impact of passenger cars; thus, our assumed ESAL of “1” for garbage collection vehicles is on the low end of the reasonable range of ESALs for such vehicles.

Speed Impact
Impacts to flexible pavements (which are typical for residential streets) are also influenced by vehicle speeds, with impacts being exponentially higher when a load carrying vehicle is moving at a very slow speed.3 This is demonstrated in Chart 1, on the following page.

Chart 1: Exponential Relationship Between Speed and Pavement Impacts Unlike typical traffic on residential streets, which tends to travel at or near the posted speed limit (25 miles per hour [mph] in the City), solid waste vehicles slow and stop for collection in front of each household, averaging approximately 4 mph to 8 mph.4 At these low speeds, and as shown in Chart 1, vehicles have approximately 2.2 to 2.6 times the impact to the pavement than they would travelling only at the 25 mph speed limit.

In this Study we conservatively assume that solid waste vehicles in the City may be travelling at a faster 10 mph average speed, and we thus assume that the relative impact of speed is a factor of 2, not the higher

2.2 to 2.6 factors corresponding with slower speeds as noted above. We apply this speed factor of 2 as a multiplier to the ESAL loading for solid waste collection vehicles in our analysis of impacts to residential streets only; the factor is not applied to the ESAL loading for arterial and collector streets, as those streets are not typically comprised of flexible pavements, solid waste collection vehicles stop less frequently on those streets (and thus have a higher average speed).
3 Effect of truck speed on the response of flexible pavement systems to traffic loading; International Journal of Pavement Engineering, July 2020; Michael R. S. Mshali and Wynand JvdM. Steyn. 4 Real-world activity, fuel use, and emissions of heavy-duty compressed natural gas refuse trucks; Science of the Total Environment 761, 2021; Gurdas S. Sandhu, H. Christopher Frey, Shannon Bartelt-Hunt, Elizabeth Jones.

0.00 0.50

1.00 1.50

2.00 2.50

3.00 3.50
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Relative Impact
Average Speed (MPH)
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Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 12 of 18 Vehicle Passes Per Day
By estimating the number and type of vehicles (i.e., solid waste collection vehicles, automobiles, and all other trucks) that travel on a street, and the average pavement impacts (measured in ESAL loading) associated with each vehicle type (described in the prior subsection), the total impacts that the pavement will experience can be estimated in a mathematical calculation. Our analysis makes informed assumptions about the number of vehicle passes (meaning trips down streets) by type for the two major types of streets identified by the City in its PMP. Those two types of streets are: high-traffic-volume streets (namely arterial and collector streets) and low-traffic-volume streets (residential streets). Specific data for the City relating to the number of vehicle passes per day and the proportion of those passes that are comprised of trucks was not available for this Study.

For the low-traffic residential streets, we used 2,132 vehicle passes per day, which is based on figures provided by the City from a 2024 traffic study. We also estimated that 5% of residential traffic trips were made by trucks. For arterial and collector streets, we used 13,426 passes per day, also based on figures provided by the City from the same 2024 traffic Study. For the percentage of those trips that are trucks, we used a calculated value based on comparative traffic counts from the City of Torrance in 2023 and which is the same dataset that we used to estimate the average ESAL for “All other trucks” in Table 5. That dataset calculates the average daily traffic counts for all vehicles on commercial streets in that city, with 87.7% of the average daily traffic count being comprised of passenger cars and motorcycles and the remaining

12.3% being comprised of trucks.

For the purposes of this Study, we have assumed an even higher percentage of arterial and collector street traffic being trucks, at 15% of the average daily traffic. As with the prior assumptions, this value is conservative in that it returns a low proportionate value for the impacts to streets from the Contractor’s solid waste vehicles. Table 6, below, is a summary of the assumptions used in this Study related to average daily vehicles passes and the percentage that are trucks assumptions used in this Study.

Table 6: Vehicle Passes Per Day by Street Type
Street Type Vehicle Passes Per Day Percentage of Vehicle Passes That Are Trucks
Residential 2,132 5%
Arterial and Collector 13,426 15%
Vehicle Passes By Vehicle Type
The variables described in the prior subsection provide the overall number of vehicle passes per day, and the percentage of those passes that are trucks. To isolate the vehicle loading impacts to pavement associated with solid waste collection vehicles, we need to determine the number of passes that those vehicles make per day. This is a relatively simple calculation based on the weekly schedule of collections for solid waste collection services.

For the low-traffic residential streets, solid waste collection operations are on a weekly schedule. Since weekly collections are on both sides of the street, each street is driven twice (once in each direction) by a minimum of one of each type of solid waste collection vehicle. For the purposes of this Study, we assume that each solid waste collection vehicle makes two passes per week, or 0.286 passes per day, on residential streets. This value does not account for the fact that some streets are driven on during nonroute days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above. 272
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 13 of 18 Using the lower passes per week is conservative in that it returns a lower result for the street impacts from the Contractor’s solid waste vehicles. For the high-traffic arterial and collector streets, which are primarily commercial, the schedule for solid waste collection can vary. Solid waste collection services may be provided up to five or six times a week for larger waste generators and may be as low as weekly for smaller generators. Additionally, because solid waste generators in commercial areas are not all on the same collection schedules as residential accounts are, vehicles in commercial areas pass over the same streets multiple times to serve accounts with different collection schedules.

For the purposes of this Study, for arterial and collector streets, we assume that solid waste collection vehicles collecting garbage for landfill disposal pass over each street two times per day (once in each direction), while solid waste collection vehicles for organics and recycling pass over each street once per day (one half in each direction). Total passes for organics and recycling collection vehicles are less because it is generally the case that service levels for garbage are at least twice those of the corresponding organics or recycling service level. As with the number of passes on residential streets, this value does not account for the fact that some streets are driven on during non-route days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above. Using the lower passes per week is conservative in that it returns a lower result for the pavement impacts from the Contractor’s solid waste vehicles.

The number of passes per day for the remaining vehicle types – automobiles and other trucks – are simply calculated as a function of the total number of daily passes, the total number of those that are trucks (based on the percentages discussed in the prior section), and the number of passes for solid waste collection vehicles. For example, for the City’s residential streets, given 2,132 passes per day and 5% (~106.617) of those being trucks, there are ~2,025.717 automobile passes per day (2,132 x 95%).

With three types of solid waste collection vehicles each passing 0.286 times per day (as described above), the total passes per day are 0.857 (3 x 0.286). The number of passes for all other trucks is 105.76 (106.617 minus 0.857). Table 7, below, provides a summary of vehicle passes per day by street type.

Table 7: Vehicle Passes Per Day by Vehicle Type and Street Type Vehicle Type Residential Streets Arterial and Collector Streets Automobiles (Passenger Cars) 2,025.717 11,411.755
Average of All Other Trucks 105.760 2,010.982
Solid Waste Vehicle (Garbage) 0.286 1.429
Solid Waste Vehicle (Organics) 0.286 0.714
Solid Waste Vehicle (Recycling) 0.286 0.714
Total 2,132 13,426
Percentage of Streets by Type
A final variable that needs to be addressed in the percentage of streets by type. This information is included in the City’s PMP, including the relative area by street type, as shown in Table 8, on the following page.
273
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 14 of 18 Table 8: Percentage of Streets by Type
Street Type Area (Square Feet) Percentage of Area
Residential 20,941,289 68.4%
Arterial and Collector 9,296,485 30.4%
Alleys 389,348 1.3%
Total 30,627,122 100%
Analysis
Percentage Impact for Solid Waste & Street Sweeping Vehicles by Street Type With the variables for ESAL by vehicle type, the multiplication factor for the relative impacts of speed for solid waste collection vehicles on residential streets, and the number of passes by vehicle type established, we then calculate the relative percentage impact associated with each vehicle type. This is calculated as a function of ESAL multiplied by speed factor (residential streets only) multiplied by the number of weekly passes, multiplied by ESAL, with the product being the total vehicle loading pavement impact by vehicle type per week.

Totaling the weekly total vehicle loading by vehicle types yields the total estimated loading experienced by each street type (residential vs. arterial and collector). From there, we calculate the percentage contribution to total vehicle loading for solid waste collection vehicles, which is the total weekly ESAL loading associated with solid waste collection vehicles divided by the total ESAL loading for the street.

Table 9, below, and Table 10, on the following page, show these calculations and the results.

Table 9: Calculation of Solid Waste Pavement Impacts – Residential Streets

A B C D E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table
5)
Relative
Impact
from
Speed
Passes /
Day /
Vehicle
Type
(Per Table
7)
Passes /
Week /
Vehicle
Type
(C x 7)
Total
Weekly
ESAL
Loading
(A x B x D)
Percent of
Total
ESAL
Loading
(E / 35)
Automobiles 0.0008 1x 2,025.717 14,180 11.34 32.41%
All Other Trucks 0.0171 1x 105.760 740 12.66 36.17%
Garbage Vehicles 1.0000 2x 0.286 2 4.00 11.43%
Organic Material Vehicles 1.0000 2x 0.286 2 4.00 11.43% Recycling Vehicles 0.7500 2x 0.286 2 3.00 8.57%
Total 2,132 14,926 35.00 100%
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Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 15 of 18 As shown in Table 9, for the City’s residential streets we calculated the percentage impacts for solid waste vehicles to be 31.43% of total impacts to residential street pavement (11.46% times 2 plus 8.57%).

Table 10: Calculation of Solid Waste Vehicle Impacts – Arterial and Collector Streets

A B C E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table 5)
Passes /
Day /
Vehicle Type
(Per Table 7)
Passes /
Week /
Vehicle Type
(B x 7)
Total Weekly
ESAL
Loading
(A x C)
Percent of
Total ESAL
Loading
(E / 323.37)
Automobiles 0.0008 11,411.755 79,882 63.91 19.76%
All Other Trucks 0.0171 2,010.982 14,077 240.71 74.44%
Garbage Vehicles 1.0000 1.429 10 10.00 3.09%
Organic Material Vehicles 1.0000 0.714 5 5.00 1.55%
Recycling Vehicles 0.7500 0.714 5 3.75 1.16%
Total 13,426 93,979 323.37 100%
For the City’s arterial and collector streets, Table 10 calculates the percentage impact from solid waste vehicles to be 5.8% of the total impacts (3.09% plus 1.55% plus 1.16%).

Average Annual Pavement Expenses
Per the PMP report, the City is projected to spend $5.5 million per year on pavement repair, maintenance, and rehabilitation. Of that, only $800,000 is planned for payment from the General Fund. Additionally, the City spends approximately $814,227annually for staffing related to PMP pavement projects and also on spot repair work not included in the PMP. Therefore, the total annual estimated City costs for pavement repair are $1,614,227.

Reduction for Pavement Subsurface Impacts
The City’s projected expenditures for pavement maintenance repair are assumed to include impacts to pavement caused by vehicles, trench cutting, and subsurface activities, as well as the environmental impacts associated with those same sources of primary impacts. We roughly estimate the impacts of trench cutting and subsurface activities on the City’s streets to be 10% of all pavement repair, maintenance, and rehabilitation costs. This leaves 90% of the average annual pavement management costs and average annualized deferred maintenance needs associated with vehicle impacts.

This is demonstrated in Table 11, on the following page. 275
Methodology & Calculations
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 16 of 18 Table 11: Average Annual Pavement Impacts from Vehicles Category Amount of Impacts
from All Sources
Reduction for
Subsurface Activities
Amount of Impacts
from Vehicles
Average Annual
Pavement Expenses $1,614,227 -10% $1,452,804
Table 12, below, shows the breakdown of the average annual pavement impacts from all vehicles by street type, using the total from Table 11.

Table 12: Total Pavement Impacts from Vehicles by Street Type Variable Residential Arterial, Collector and
Alley Total
Percentage of Streets
by Type (From Table 8) 68.4% 31.6% 100%
Total $993,355 $459,450 $1,452,804
Total Annual Pavement Impacts
Calculating the total annual Pavement Impacts using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 13, below.

Table 13: Calculation of Total Pavement Impacts from Contractor’s Vehicles Variables Residential Arterial and Collector
Grand Total
Annual Pavement Impacts
from Vehicles (From
Table 12)
$993,355 $459,450
Percentage Impacts from
Contractor’s Vehicles
(From Tables 9 and 10)

31.43% 5.80%
Total $312,167 $26,640 $338,807
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3. FINDINGS & CONCLUSIONS
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 17 of 18 Franchise Fee
The FY 2022-23 Franchise Fee paid to the City was $530,795 and the projection for FY 2023-24 is $557,334.

R3 calculated estimates of the City’s Costs and Property Use Charges based on actual and estimated cost information provided by the City, and with conservative assumptions for estimated values.

The sum of FY 2023-24 annual City’s Costs ($171,583) and Property Use Charges ($574,330) amounts calculated in this Study is $745,913.

Where assumptions were necessary to complete the analysis in this Study, attempts were made to apply conservative assumptions given a range of possible inputs.

The calculated amounts bear a reasonable relationship to the Contractor’s burdens on the City resulting from the management and administration of the Agreement and the sanitation system, and the reasonable value of the Contractor’s use of the public right-of-way. The City’s Costs have been reviewed and confirmed by City staff as being representative of the actual time and costs incurred for these activities. Amounts of Property Use Charges are proportionately allocated to the Contractor with due recognition of the realities of the Contractor’s operations.

The amounts calculated in this Study are $188,578 (34%) higher than the projected FY 2023- 24 Franchise Fee payments. It is highly unlikely, given the justification provided herein, that FY 2023-24 Franchise Fee payments exceeded the amounts calculated in this Study.

The projected FY 2023-24 Franchise Fee is less than would be justified by the calculations in this Study.

It is reasonable to assume that the City’s Costs and Property Use Charges will not decrease in FY 2024-25. Likewise, it is also reasonable to assume based on historical trends that Franchise Fee revenues will only increase slightly in FY 2024-25. It is highly unlikely given prior trends that the FY 2024-25 Franchise Fee payments will exceed the amounts calculated in this Study.

The Franchise Fee therefore is not more than necessary to cover the City’s costs incurred in managing and administering the Agreement and the sanitation system plus the value of the Contractor’s use of the public right-of-way.
277

4. RECOMMENDATIONS
City of San Clemente | Solid Waste Franchise Fee Study – R3 Report 18 of 18 Restate Franchise Fee
The current franchise fee payments from the Contractor to the City are calculated as a percentage of gross revenues collected from billings in the City. While these payments do not exceed the City Costs and Property Use Charges values calculated in this Study, the City would be better served by restating the Franchise Fee to be a dollar value instead of a percentage of gross revenues.

We recommend that the City consider amending the Agreement with the Contractor to set the Franchise Fee at a dollar value not to exceed the sum of the City Costs and Property Use Charges values calculated by this Study.

Sources and Uses Accounting
Currently, the City’s Costs and Property Use Charges are not tied to Franchise Fee revenues in the City’s accounting system. The City could implement project code accounting and/or enterprise fund accounting for the Franchise Fee to better track source revenues and their uses. In either case, allocated and/or direct staffing and other costs could be tied to source revenues, while the Property Use Charges could be transferred out for general use.

R3 recommends the City consider implementing sources and uses accounting practices for Franchise Fee revenues, City’s Costs, and Property Use Charges.

Periodic Recalculation
Over time, the City’s Costs associated with the Agreement and the sanitation system, the value of Property Use Charges for use of the public right-of-way, and the annualized costs associated with Pavement Impacts from the Contractor’s solid waste collection vehicles may change in ways that vary from the annual change in the CPI. Additionally, changes in City policies, programs, procedures, organization, geopolitical boundaries, laws, regulations, court rulings, and/or other factors may also trigger a need for recalculating fees.

R3 recommends the City consider updating this Study periodically (e.g., every five years) or more frequently if needed to recalculate fees in response to other factors. 278
4 Attachment 4
Recommendation Regarding
the City's Solid Waste Franchise Agreement with CR&R
Prepared by
SolidWaste Consultants
to Local Government
June 7, 2022
279
5 Page intentionally left blank
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6 Table of Contents
1 EXECUTIVE SUMMARY ........................................................................................................................................................1 2 RECENTTRENOS IN THE SOLID W/!ISTE INDUSTRY.......................................................................................................... 2

2.1 SB 1383-SHORT-UVEDCUMATEPOLLUTANTS.................................................................................................. 2

2.2 FACTORSCREATING UPWARD PRESSUREON OPERATINGCOSTS .............................................................................. 3 3 SOLID WASTE MARKET IN ORANGE COUNTY................................................................................................................. 4

3.1 HAULER MARKET SHARE ANO MAJOR SOLID WASTEFACILITIES................................................................................ 4

3.2 RECENTEVENTSAND CIRCUMSTANCES................................................................................................................ 5

3.3 RATE COMPARISON.............................................................................................................................................. 7 45AN CLEMENTFSAGREEMENTWITH CR&R ...................................................................................................................9

4.1 2010FRANCHISEAGREEMENT ........................................................................................................................... 9 5 BASIS FOR RECOMMENDATION...........................................................................................................................................11

5.1 GENERALPROSANDCONSOF NEGOTIATINGVS. ISSUING AN RFP .........................................................................11

5.2 APPLICATION OFGENERALPROSANDCONSTOTHECITYOFSAN CLEMENTE.........................................................12

5.3 CONSIDERATION OF PROS AND CONSOFGIVINGNOTICETO ENDAUTOMATICEXTENSION......................................12 6 SUMMARY OF RECOMMENDATIONS ............................................................................................................................. 15 281
Page1 of 15
7 1Executive Summary
In March 2022, the City retained our firm to provide a recommendationto the City whether it should either:
• Enter into sole-source negotiations for a new solid waste franchise agreement with its current waste hauler, CR&R Incorporated (CR&R) or;
• Issue an RFP and solicit competitive proposals a new agreement.

In developing our recommendation, we:

1. Considered recent trends in the solid waste industry.

2. Surveyed the solid waste market in Orange County.

3. Reviewed the City's current solid waste agreement.

4. Outlined the general pros and cons of conducting sole-source negotiations vs. issuing an RFP.

5. Analyzed those pros and cons in relation to the City's current agreement.

Based on our review and analysis, we recommend that theCity:
• Enter into negotiations now with CR&R, for a period not to exceed six (6} months. • In addition, prior to June 30, 2022, give CR&R a notice of termination of the automatic renewal of the term of the current franchise agreement. As a result of this action, the term of the current agreement will be set to end on June 30, 2024.

If the City does not give notice of automatic termination on or before June 30, 2022, due to provisions in the agreement, the term of the current agreement will automatically be extended for an additional year to June 30, 2025. • If the City and CR&R are not able to successfully negotiate a new agreement within six (6) months, conduct a competitive procurement process by developing and issuing an RFP to other qualified firms.
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