Agenda packet — San Clemente City Council, May 6, 2025 (part 3 of 5)

CITY OF SAN CLEMENTE
2015 SPECIAL TAX BONDS
BASE CUSIP 797214
NOTICE IS HEREBY GIVEN to the owners of the above-captioned obligations (the “2015 Bonds”) pursuant to a Fiscal Agent Agreement, dated as of December 1, 2015 (the “2015 Fiscal Agent Agreement”), by and between Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente (the “District”) and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “2015 Fiscal Agent”), that the District has deposited with the 2015 Fiscal Agent, acting as escrow agent, federal securities in an amount that is sufficient (as evidenced by the report of an independent accountant or verification agent delivered to the 2015 Fiscal Agent) to pay on September 1, 2025 the principal of all outstanding 2015 Bonds, plus accrued interest with respect thereto to such date. The 2015 Bonds were originally issued on December 3, 2015 and are described in the following table.

Principal
Payment Date
(September 1)
CUSIP®
†
(797214)
Principal
Amount Interest Rate
2025 BU6 $ 735,000 5.00%
2026 BV4 845,000 5.00
2027 BW2 965,000 5.00
2028 BX0 1,090,000 5.00
2029 BY8 1,225,000 5.00
2030 BZ5 1,365,000 5.00
2031 CA9 1,515,000 5.00
2032 CB7 1,675,000 5.00
2033 CC5 1,845,000 4.00
2034 CD3 2,005,000 4.00
2035 CE1 2,170,000 4.00
2040 CF8 12,630,000 5.00
2046 CG6 22,605,000 5.00
TOTAL $50,670,000
In accordance with the 2015 Fiscal Agent Agreement: (i) the 2015 Bonds have been legally defeased except as set forth therein; and (ii) all obligations of the District under the Continuing Disclosure Agreement, dated as of December 1, 2015, by and between the District and Koppel &

† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. Neither the District nor its agents or counsel assume responsibility for the accuracy of such numbers.
567
Exhibit B-2
4937-2247-8631v5/022806-0004
Gruber Public Finance, as dissemination agent, relating to the 2015 Bonds, have been terminated as of the date hereof.

The District and the 2015 Fiscal Agent shall not be responsible for, and no representation is made as to the correctness of the CUSIP number either as printed on any 2015 Bond or as contained herein and any error in the CUSIP number shall not affect the validity of the proceedings for redemption of the 2015 Bonds.

THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as 2015 Fiscal Agent
June ___, 2025
568
Stradling Yocca Carlson & Rauth
Draft of 4/25125
Attachment 4
PRELIMINARY OFFICIAL ST A TEMENT DA TED_, 2025
NEW ISSUE- BOOK-ENTRY ONLY Ratings: Insured Bonds: S&P " __ , Underlying: S&P "_"
See the caption "CONCLUDING INFORMATION-Ratings"
In the opinion of Stradling Yocca Carlson & Rauth LLP, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described in this Official Statement, interest (and original issue discount) on the Bonds is excluded from gross income for federa/ income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In thefi1rther opinion a/Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax. See the caption "CONCLUD!NG !NFORMATION-Tax Matters" with respect to tax consequences relating to the Bonds, including with respect to the alternative minimum tax imposed on certain large corporations.

COUNTY OF ORANGE STATE OF CALIFORNIA
$43,260,000*
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL)

OF THE CITY OF SAN CLEMENTE
2025 SPECIAL TAX REFUNDING BONDS
Dated: Date of Delivery Due: September I, as shown on the inside cover page The Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente 2025 Special Tax Refunding Bonds (the "Bonds") are being issued by Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the "CFD Act"), and a Bond Indenture, dated as of June I, 2025 (the "Indenture"), by and between the District and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), and will be secured as described herein. See the caption "SECURITY FOR THE BONDS." The Bonds are being issued: (i) together with other available funds, to refund the outstanding Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente 2015 Special Tax Bonds (the "2015 Bonds"); (ii) to pay the premium for a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the Reserve Account to fund 50% of the initial Reserve Requirement and fund a cash deposit for the remaining 50% of the initial Reserve Requirement; and (iii) to pay certain costs of issuance of the Bonds, including the premium for an insurance policy insuring the Insured Bonds (defined below).

The Bonds will be secured by special tax liens on taxable property within the District and certain funds held by the Trustee under the Indenture. The City of San Clemente (the "City") has detern1ined that it will not obligate itself to advance funds from its treasury to cover any delinquency on the Bonds. See the caption "SECURITY FOR THE BONDS."
The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., New York, New York, as nominee of TI1e Depository Trust Company ("DTC"), New York, New York. Interest on the Bonds will be payable on September I, 2025 and each March I and September I thereafter. Purchasers will not receive certificates representing their interest in the Bonds. Individual purchases of Bonds will be in principal amounts of$5,000 or in any integral multiple of$5,000. Payments ofptincipal and interest will be paid by the Trustee to DTC for subsequent disbursement to DTC Patticipants, which will remit such payments to the beneficial owners of the Bonds.

The Bonds are subject to optional redemption, mandatory sinking fund redemption and extraordinary redemption from Special Tax prepayments prior to maturity as set forth herein. See the caption "THE BONDS-Redemption."

ALL OBLIGATIONS OF THE DISTRICT UNDER THE INDENTURE AND THE BONDS ARE SPECLAL OBLIGATIONS OF THE DISTRICT, PAYABLE SOLELY FROM THE NET TAXES AND THE FUNDS PLEDGED THEREFOR UNDER THE INDENTURE. NEITHER THE FAITH AND

CREDIT NOR THE TAXING POWER OF THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE INDENTURE), THE CITY OR THE STA TE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. EXCEPT FOR THE NET TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS

OF THE CITY NOR GENERAL OBLIGATIONS OF THE DISTRICT BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM NET TAXES.
[The scheduled payment of principal of and interest on the Bonds maturing on September I of the years 20_ through 20 __, inclusive (collectively, the "Insured Bonds"), when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Insured Bonds by (the "Insurer" or.. "). The Insurer will also issue a debt service reserve insurance policy concurrently with the issuance of the Bonds to be credited to the Reserve Account for the Bonds to satisfy 50% of the initial Reserve Requirement. See "BOND INSURANCE" herein.] [INSURER'S LOGO]
See the captlon "SPECIAL RISK FACTORS" for a discussion of certain risk factors that should be considered in addition to the other matters set forth herein when evaluating the investment quality of the Bonds. This cover page contains certain infonnation for quick reference only. It is not a complete summary of the Bonds. Investors should read the entire Official Statement to obtain infonnation essential to the making of an infom1ed investment decision.

MATURITY SCHEDULE
(See inside cover)
The Bonds are offered, when, as and if issued and accepted by the Underwriter, subject to approval as to their validity by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the City by Burke, Williams & Sorensen, LLP, San Diego. California, as the City Attorney, and by Stradling Yocca Carlson & Rauth LLP , Newport Beach, California, Disclosure Counsel, for the Unde1writer by Anzel Galvan LLP, San Francisco, California, for the Insurer by its counsel and for the T111stee by its counsel. It is anticipated that the Bonds will be available for delive,y in book-entry fom1 through the facilities of DTC on or about ___ , 2025. [UNDERWRITER'S LOGO]
Dated: __ _ , 2025
• Preliminary, subject to change.
4900-3303-2494v6/022806-0004
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
639
640
641
642
643
644
645
646
647
648
649
650
651
652
653
654
AG Draft 4-28-2025 Attachment 5
$[PAR]
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL)

OF THE CITY OF SAN CLEMENTE
2025 SPECIAL TAX REFUNDING BONDS

BOND PURCHASE AGREEMENT
[Closing Date]
Community Facilities District No. 2006-1
(Marblehead Coastal)
of the City of San Clemente
910 Calle Negocio
San Clemente, California 92673
Attention: Chief Financial Officer
Ladies and Gentlemen:

Stifel, Nicolaus & Company, Incorporated, as underwriter (the “Underwriter”), acting not as a fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement (this “Purchase Agreement”) with Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente (the “Community Facilities District”), which upon acceptance will be binding upon the Underwriter and the Community Facilities District. The agreement of the Underwriter to purchase the Bonds (as hereinafter defined) is contingent upon the Community Facilities District satisfying all the obligations imposed upon it under this Purchase Agreement. This offer is made subject to the Community Facilities District’s acceptance by the execution of this Purchase Agreement and its delivery to the Underwriter at or before 11:59 p.m., local time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the Community Facilities District at any time prior to the acceptance hereof by the Community Facilities District. All capitalized terms used herein, which are not otherwise defined, shall have the meaning provided for such terms in the Bond Indenture, dated as of June 1, 2025 (the “Indenture”), by and between the Community Facilities District and The Bank of New York Mellon Trust Company, N.A. (the “Trustee”).

1. Purchase, Sale and Delivery of the Bonds. Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter hereby agrees to purchase from the Community Facilities District and the Community Facilities District hereby agrees to sell to the Underwriter all (but not less than all) of the $[PAR] aggregate principal amount of Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente 2025 Special Tax Refunding Bonds (the “Bonds”), dated the Closing Date (as hereinafter defined), bearing interest at the rates and maturing on the dates and in the principal amounts set forth in Exhibit A hereto. The purchase price for the Bonds shall be $__________ (being 100% of the aggregate principal amount thereof, plus original issue premium of $__________ and less an Underwriter’s discount of $__________). The Community Facilities District acknowledges that the Underwriter will on the Closing Date, on behalf of the Community Facilities District, wire a portion of the purchase price in the amount of $___________ representing the premiums for the Policy and the Reserve Policy (as such terms are defined herein), directly to _______________ (the “Insurer”). 655
2 2. The Bonds. The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable from the Net Taxes and certain other funds pledged therefor as provided in, the Indenture, the Preliminary Official Statement (as hereinafter defined), and the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California (the “State”)) (the “Community Facilities District Act”). The issuance of the Bonds has been duly authorized by the City Council of the City of San Clemente, California (the “City”), as the legislative body for the Community Facilities District, pursuant to a resolution adopted on May [6], 2025 (the “Community Facilities District Resolution of Issuance”).

The proceeds of the Bonds will be used to: (i) together with other available funds, refund the outstanding Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente 2015 Special Tax Bonds (the “2015 Bonds”); (ii) pay the premium for a Municipal Bond Debt Service Reserve Insurance Policy (the “Reserve Policy”) to be issued concurrently with the issuance of the Bonds by the Insurer; and (iii) pay certain costs of issuance of the Bonds, including the premium for a Municipal Bond Insurance Policy (the “Policy”) insuring the Bonds maturing on September 1 of the years 20___ through 20___, inclusive, September 1, 20___ and September 20___, to be issued by the Insurer concurrently with the issuance of the Bonds.

The 2015 Bonds will be refunded pursuant to an Escrow Agreement (2015 Bonds), dated as of June 1, 2025 (the “Escrow Agreement”), by and between the Community Facilities District and The Bank of New York Mellon Trust Company. N.A., as escrow agent (the “Escrow Agent”) and as 2015 Fiscal Agent (as such term is defined therein).

3. Public Offering and Establishment of Issue Price.

A. The Underwriter agrees to make a bona fide public offering of all of the Bonds initially at the public offering prices (or yields) set forth in Exhibit A attached hereto and incorporated herein by reference. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds subject to this Section 3, provided that the Underwriter shall not change the interest rates set forth in Exhibit A. The Bonds will be offered and sold to certain dealers at prices lower than such initial offering prices.

The Community Facilities District hereby acknowledges that the Underwriter is entering into this Purchase Agreement in reliance on the representations, warranties and agreements made by the Community Facilities District herein, and the Community Facilities District shall take all action necessary to enforce its rights hereunder for the benefit of the Underwriter and shall immediately notify the Underwriter if it becomes aware that any representation, warranty or agreement made by the Community Facilities District herein is incorrect in any material respect.

The Community Facilities District knowledges and agrees that with respect to the transaction contemplated hereby: (i) the Underwriter is not acting as a municipal advisor within the meaning of Section 15B of the Securities Exchange Act, as amended; (ii) the primary role of the Underwriter, as an underwriter, is to purchase securities, for resale to investors, in an arm’s length commercial transaction between the Community Facilities District and the Underwriter and the Underwriter has financial and other interests that differ from those of the Community Facilities District; (iii) the Underwriter is acting solely as a principal and is not acting as a municipal advisor, financial advisor or fiduciary to the Community Facilities District and has not assumed any advisory or fiduciary 656
3 responsibility to the Community Facilities District (irrespective of whether the Underwriter has provided other services or is currently providing other services to the Community Facilities District on other matters); (iv) the only obligations the Underwriter has to the Community Facilities District with respect to the transaction contemplated hereby are expressly set forth in this Purchase Agreement; and (v) the Community Facilities District has consulted its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it has deemed appropriate. The Community Facilities District acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (“MSRB”). The Community Facilities District further acknowledges and represents that it has engaged Fieldman, Rolapp & Associates, Inc., Irvine, California (the “Municipal Advisor”) as its municipal advisor within the meaning of Section 15B of the Securities Exchange Act, as amended, and will rely solely on the financial advice of the Municipal Advisor with respect to the Bonds.

B. The Underwriter agrees to assist the Community Facilities District in establishing the issue price of the Bonds and shall execute and deliver to the Community Facilities District at Closing (as defined below) an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form set forth in Exhibit C, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Community Facilities District and Bond Counsel (as such term is defined below), to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. All actions to be taken by the Community Facilities District under this Section to establish the issue price of the Bonds may be taken on behalf of the Community Facilities District by the Municipal Advisor and any notice or report to be provided to the Community Facilities District may be provided to the Municipal Advisor.

C. Except as otherwise set forth in Exhibit A, the Community Facilities District will treat the first price at which 10% of each maturity of the Bonds (the “10% test”), identified under the column “10% Test Used” in Exhibit A, is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Community Facilities District the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Community Facilities District the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until either: (i) the Underwriter has sold all of the Bonds of that maturity; or (ii), the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon the request of the Community Facilities District or Bond Counsel. For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. For clarity, and notwithstanding any other condition to Closing set forth in this Purchase Agreement, the sale of 10% of each maturity of the Bonds to the public prior to the Closing Date shall not be a condition to Closing.

D. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A, except as otherwise set forth therein.

Exhibit A also sets forth, identified under the column “Hold the Offering Price Rule Used,” as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the Community Facilities District and the Underwriter agree that the 657
4 restrictions set forth in the next sentence shall apply, which will allow the Community Facilities District to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:

1. the close of the fifth (5th) business day after the sale date; or

2. the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter will advise the Community Facilities District promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

E. The Underwriter confirms that:
(1) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group, and each brokerdealer that is a party to such third-party distribution agreement, as applicable, (A) (i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter; (B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public; and
(2) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.

F. The Community Facilities District acknowledges that, in making the representations set forth in this Section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer 658
5 who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The Community Facilities District further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds.

G. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this Section.

Further, for purposes of this Section:

1. “public” means any person other than an underwriter or a related party;

2. “underwriter” means (A) any person that agrees pursuant to a written contract with the Community Facilities District (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third party distribution agreement participating in the initial sale of the Bonds to the public);

3. a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and

4. “sale date” means the date of execution of this Purchase Agreement by all parties.

4. The Official Statement.

A. Pursuant to the authorization of the Community Facilities District, the Underwriter has distributed copies of the Preliminary Official Statement dated [POS Date], relating to the Bonds, which, together with the cover page, inside cover page and appendices thereto is herein called the “Preliminary Official Statement.” By its acceptance of this Purchase Agreement, the Community Facilities District hereby ratifies the use by the Underwriter of the Preliminary Official Statement, and the Community Facilities District agrees to execute a final official statement relating 659
6 to the Bonds (the “Official Statement”) which will consist of the Preliminary Official Statement with such changes as may be made thereto, with the approval of Stradling Yocca Carlson & Rauth LLP, as Bond Counsel (“Bond Counsel”), and as Disclosure Counsel (“Disclosure Counsel”), and the Underwriter, and to provide copies thereof to the Underwriter as set forth herein. The Community Facilities District hereby authorizes the Underwriter to use and promptly distribute, in connection with the offer and sale of the Bonds, the Preliminary Official Statement, the Official Statement and any supplement or amendment thereto. The Community Facilities District further authorizes the Underwriter to use and distribute, in connection with the offer and sale of the Bonds, the Indenture, the Continuing Disclosure Agreement, dated as of June 1, 2025, by and between the Community Facilities District and Koppel & Gruber Public Finance, as dissemination agent (in such capacity, the “Dissemination Agent”), relating to the Bonds, in substantially the form attached as Appendix C to the Official Statement (the “Continuing Disclosure Agreement”), the Escrow Agreement, this Purchase Agreement and all information contained herein, and all other documents, certificates and statements furnished by or on behalf of the Community Facilities District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement. This Purchase Agreement, the Indenture, the Bonds, the Escrow Agreement, and the Continuing Disclosure Agreement are collectively referred to herein as the “Community Facilities District Documents.” B. To assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the “Rule”), the Community Facilities District will undertake pursuant to the Continuing Disclosure Agreement to provide annual reports and notices of certain enumerated events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Official Statement.

5. Closing. Except as the Underwriter and the Community Facilities District may otherwise agree, the Community Facilities District will deliver to the Underwriter, at the offices of Bond Counsel in Newport Beach, California, or at such other location as may be mutually agreed upon by the Underwriter and the Community Facilities District, the documents hereinafter mentioned; and the Community Facilities District will deliver to the Underwriter through the facilities of The Depository Trust Company (“DTC”), the Bonds, in definitive form (all Bonds bearing CUSIP numbers), duly executed by the Community Facilities District and authenticated by the Trustee in the manner provided for in the Indenture and the Community Facilities District Act at 8:30 a.m. California time, on [Closing Date] (the “Closing Date”), and the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in paragraph (A) of this Section by wire transfer, payable in federal or other immediately available funds (such delivery and payment being herein referred to as the “Closing”). The Bonds shall be in fully registered book-entry form (which may be typewritten) and shall be registered in the name of Cede & Co., as nominee of DTC. The Bonds shall be made available to the Underwriter at least one (1) business day before the Closing Date for purposes of inspection.

6. Representations, Warranties and Covenants of the Community Facilities District. The Community Facilities District represents, warrants and covenants to the Underwriter on behalf of itself and the City that:

A. The City is duly organized and validly existing as a general law city under the Constitution and laws of the State and has duly authorized the formation of the Community Facilities District, the incurring of bonded indebtedness thereby and other matters relating to the Community Facilities District pursuant to resolutions duly adopted by the City Council, including Resolution No. 14-25, dated July 1, 2014, pursuant to which the original Rate and Method of Apportionment of Special 660
7 Tax of the Community Facilities District was amended and restated (collectively, the “Community Facilities District Formation Resolutions” and, together with the Community Facilities District Resolution of Issuance, the “Community Facilities District Resolutions”) and the Community Facilities District Act. The City Council, as the legislative body of the City and the Community Facilities District, has duly adopted the Community Facilities District Formation Resolutions and an ordinance of the City Council levying Special Tax within the Community Facilities District (the “Ordinance”), and has caused to be recorded in the real property records of the County of Orange, a notice of special tax lien, and any required amendments thereof (collectively, the “Notice of Special Tax Lien” and, together with the Community Facilities District Formation Resolutions and the Ordinance, the “Formation Documents”), and has duly adopted the Community Facilities District Resolution of Issuance. Each of its Formation Documents remains in full force and effect as of the date hereof and has not been amended or rescinded. The Community Facilities District is duly organized and validly existing as a community facilities district under the laws of the State. The Community Facilities District has, and at the Closing Date will have, as the case may be, full legal right, power and authority:
(i) to execute, deliver and perform its obligations under the Community Facilities District Documents, and to carry out all transactions contemplated by each of such agreements; (ii) to issue, sell and deliver the Bonds as provided herein; and (iii) to carry out, give effect to and consummate the transactions contemplated by the Formation Documents, the Community Facilities District Documents and the Official Statement.

B. The Community Facilities District and the City, as applicable, have each complied, and will at the Closing Date be in compliance in all material respects, with the Formation Documents and the Community Facilities District Documents, and any immaterial noncompliance by the Community Facilities District and the City, if any, will not impair the ability of the Community Facilities District and the City, as applicable, to carry out, give effect to or consummate the transactions contemplated by the foregoing. From and after the date of issuance of the Bonds, the Community Facilities District and the City Council of the City, as the legislative body of the Community Facilities District, will continue to comply with their respective covenants contained in the Community Facilities District Documents.

C. The Preliminary Official Statement was as of its date and at the date hereof, and the Official Statement is, and at all times subsequent to the date of the Official Statement up to and including the Closing will be, true and correct in all material respects, and the Preliminary Official Statement did not as of its date and at date the hereof, and the Official Statement does not and will not, at all times subsequent to the date of the Official Statement up to and including the Closing, contain any untrue statement of a material fact or omit to state a material fact that is necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading (other than statements pertaining to the book-entry system, and information regarding the Insurer, the Policy and the Reserve Policy, as to which no view is expressed).

D. Up to and including 25 days after the End of the Underwriting Period, the Community Facilities District will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not affect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The Community Facilities District will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise materially affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. As used herein, the term “End of the Underwriting Period” means the later of such time as: (i) the Bonds are delivered to the Underwriter; or (ii) the Underwriter does not retain, directly or as a member of an 661
8 underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the End of the Underwriting Period shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the Community Facilities District at or prior to the Closing Date, and shall specify a date (other than the Closing Date) to be deemed the “End of the Underwriting Period.” E. Except as described in the Preliminary Official Statement, the Community Facilities District is not, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance of its obligations under the Community Facilities District Documents and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Community Facilities District Documents or the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement.

F. Except as may be required under the “blue sky” or other securities laws of any jurisdiction, all approvals, consents, authorizations, elections and orders of, or filings or registrations with, any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the Community Facilities District of its obligations under the Community Facilities District Documents, and the performance of the conditions precedent to be performed by the Community Facilities District pursuant to this Purchase Agreement, have been or will be obtained at the Closing Date and are or will be in full force and effect at the Closing Date.

G. The Community Facilities District Documents conform as to form and tenor to the descriptions thereof contained in the Official Statement.

H. The Bonds are payable from the Net Taxes of the Community Facilities District, as set forth in the Indenture, the levy of which has been duly and validly authorized pursuant to the Community Facilities District Act and the Special Tax within the Community Facilities District will be fixed and levied in an amount which, together with other available funds, is required for the payment of the principal of, and interest on, the Bonds when due and payable, all as provided in the Indenture. The Community Facilities District has covenanted to cause the Special Tax to be levied and collected at the same time and in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine.

I. The Indenture creates a valid [first priority] pledge of and lien on the Net Taxes of the Community Facilities District, and in the moneys in the Special Tax Fund (exclusive of the 662
9 Administrative Expenses Account), established pursuant to the Indenture, on the terms and conditions set forth in the Indenture.

J. Except as disclosed in the Preliminary Official Statement, there are, to the best of the Community Facilities District’s knowledge, no entities with outstanding assessment liens against any of the properties within the Community Facilities District or which are senior to or on a parity with the Special Tax of the Community Facilities District.

K. The information contained in the Preliminary Official Statement and in the Official Statement (other than statements therein pertaining to the DTC and its book-entry system, and information regarding the Insurer, the Policy and the Reserve Policy, as to which no view is expressed) is true and correct in all material respects and such information does not and shall not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

L. The Preliminary Official Statement was deemed final by a duly authorized officer of the City, on behalf of the Community Facilities District, prior to its delivery to the Underwriter, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(1) of the Rule. The Community Facilities District hereby covenants and agrees that, within seven (7) business days from the date hereof, or upon reasonable written notice from the Underwriter within sufficient time to accompany any confirmation requesting payment from any customers of the Underwriter, the Community Facilities District shall cause a final printed form of the Official Statement to be delivered to the Underwriter in sufficient quantity to comply with Rule 15c2-12, rules of the MSRB and to meet potential customer requests for copies of the Official Statement.

M. At the time of acceptance hereof there is and as of the Closing there will be no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body (collectively and individually, an “Action”) pending (notice of which has been served on the City or the Community Facilities District) or to the best knowledge of the Community Facilities District or the City threatened, in which any such Action: (i) in any way questions the existence of the Community Facilities District or the titles of the officers of the City or the Community Facilities District to their respective offices; (ii) affects, contests or seeks to prohibit, restrain or enjoin the issuance or delivery of the Bonds or the payment or collection of Special Tax or any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contests or affects the validity of the Community Facilities District Documents or the consummation of the transactions on the part of the Community Facilities District contemplated thereby; (iii) contests the exemption of interest on the Bonds from federal or State income taxation or contests the powers of the Community Facilities District which may result in any material adverse change relating to the financial condition of the Community Facilities District; or (iv) contests the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserts that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and as of the time of acceptance hereof there is and, as of the Closing Date, there will be no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clauses (i) through (iv) of this sentence.
663
10 N. Any certificate signed on behalf of the Community Facilities District by any officer or employee of the Community Facilities District authorized to do so shall be deemed a representation and warranty by the Community Facilities District to the Underwriter on behalf of itself and the Community Facilities District as to the statements made therein.

O. At or prior to the Closing, the Community Facilities District will have duly authorized, executed and delivered the Continuing Disclosure Agreement in substantially the form attached as Appendix C to the Official Statement. Based upon a review of its previous undertakings, and except as disclosed in the Preliminary Official Statement, the City and its related entities, including the Community Facilities District, have not failed to comply in all material respects with any previous undertakings with regard to the Rule to provide annual reports or notices of enumerated events in the last five years.

P. The Community Facilities District will apply the proceeds of the Bonds in accordance with the Indenture and as described in the Preliminary Official Statement and Official Statement.

Q. Until such time as moneys have been set aside in an amount sufficient to pay all then outstanding Bonds at maturity or to the date of redemption if redeemed prior to maturity, plus unpaid interest thereon and premium, if any, to maturity or to the date of redemption if redeemed prior to maturity, the Community Facilities District will faithfully perform and abide by all of the covenants, undertakings and provisions contained in the Indenture.

R. Between the date of this Purchase Agreement and the date of Closing, the Community Facilities District will not offer or issue any bonds, notes or other obligations for borrowed money not previously disclosed to the Underwriter.

S. The City, on behalf of the Community Facilities District, has adopted local debt policies in accordance with Section 8855(i) of the California Government Code.

The Community Facilities District hereby approves the preparation and distribution of the Official Statement, consisting of the Preliminary Official Statement with such changes as are noted thereon and as may be made thereto, with the approval of Bond Counsel, Disclosure Counsel and the Underwriter, from time to time prior to the Closing Date.

The Community Facilities District hereby ratifies any prior use of and authorizes the future use by the Underwriter, in connection with the offering and sale of the Bonds, of the Preliminary Official Statement, the Official Statement, this Purchase Agreement and all information contained herein, and all other documents, certificates and written statements furnished by the City or the Community Facilities District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement.

The execution and delivery of this Purchase Agreement by the Community Facilities District shall constitute a representation by the Community Facilities District to the Underwriter that the representations and warranties contained in this Section 6 with respect to the Community Facilities District and the City are true as of the date hereof.

7. Conditions to the Obligations of the Underwriter. The obligation of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the 664
11 Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the Community Facilities District contained herein, to the accuracy in all material respects of the statements of the officers and other officials of the Community Facilities District and the City made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the Community Facilities District of its obligations to be performed hereunder at or prior to the Closing Date, and to the following additional conditions:

A. At the Closing Date, the Community Facilities District Resolutions and the Community Facilities District Documents shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the Bonds, and with the transactions contemplated thereby, and by this Purchase Agreement, all such actions as, in the opinion of Bond Counsel, shall be necessary and appropriate.

B. At the Closing Date, except as described in the Preliminary Official Statement, the Community Facilities District shall not be, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance by the Community Facilities District of its obligations under the Bonds, the Community Facilities District Resolutions, the Community Facilities District Documents, and any other instruments contemplated by any of such documents, and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed hereunder, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Community Facilities District Documents or the performance of the conditions precedent to be performed by the Community Facilities District hereunder.

C. The information contained in the Official Statement is, as of the Closing Date and will be as of the date of any supplement or amendment thereto pursuant hereto, true and correct in all material respects and does not, as of the Closing Date and will not as of the date of any supplement or amendment thereto, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

D. Between the date hereof and the time for Closing, this Purchase Agreement shall have not been terminated by the Underwriter pursuant to Section 8 hereof.

E. At or prior to the Closing Date, the Underwriter shall have received a counterpart original or certified copy of the following documents, in each case satisfactory in form and substance to the Underwriter:
665
12 1. The Official Statement, executed on behalf of the Community Facilities District by an authorized officer;

2. The Community Facilities District Documents, each duly executed and delivered by the respective parties thereto, with only such amendments, modifications or supplements as may have been agreed to in writing by the Underwriter;

3. A certificate dated as of the Closing Date of the City Clerk to the effect that the Formation Documents have not been amended, modified or rescinded since the date of their adoption and remain in full force and effect as of the Closing Date;

4. The Community Facilities District Resolution of Issuance, together with a certificate dated as of the Closing Date of the City Clerk to the effect that such resolution is a true, correct and complete copy thereof;

5. An unqualified approving opinion for the Bonds, dated the Closing Date and addressed to the Community Facilities District, of Bond Counsel, to the effect that (i) the Indenture has been duly executed and delivered by the Community Facilities District and, assuming due authorization, execution and delivery by the other parties thereto, constitutes the valid and binding obligations of the Community Facilities District, except to the extent that enforceability may be limited by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting creditors’ rights generally or by the exercise of judicial discretion in accordance with general principles of equity or otherwise in appropriate cases and by limitations on legal remedies against public agencies in the State, and (ii) the Bonds are the valid, legal and binding obligations of the Community Facilities District and that the interest thereon is excluded from gross income for federal income tax purposes and exempt from personal income taxes of the State, in substantially the form attached as Appendix B to the Official Statement, together with a letter of Bond Counsel, dated the Closing Date and addressed to the Underwriter and the Trustee, to the effect that such opinion addressed to the Community Facilities District may be relied upon by the Underwriter and the Trustee to the same extent as if such opinion was addressed to it;

6. A supplemental opinion or opinions of Bond Counsel dated the Closing Date and addressed to the Underwriter to the effect that:
(i) this Purchase Agreement and the Continuing Disclosure Agreement have been duly executed and delivered by the Community Facilities District and, assuming due authorization, execution and delivery by the other parties thereto, constitute the valid and binding obligations of the Community Facilities District, except to the extent that enforceability may be limited by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting creditors’ rights generally or by the exercise of judicial discretion in accordance with general principles of equity or otherwise in appropriate cases and by limitations on legal remedies against public agencies in the State; (ii) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended; and
(iii) the statements contained on the cover and in the Official Statement under the captions “INTRODUCTION” (other than information under the caption “– Risk Factors,” “THE REFUNDING PLAN,” “THE BONDS,” “SECURITY FOR THE BONDS,” (except 666
13 information under the caption “– Amended and Restated Rate and Method of Apportionment of Special Taxes” as to which no opinion is expressed), “CONCLUDING INFORMATION – Tax Matters,” Appendix B – “FORM OF BOND COUNSEL OPINION” and Appendix A – “SUMMARY CERTAIN PROVISIONS OF THE INDENTURE,” excluding any material that may be treated as included under such captions by cross-reference or reference to other documents or sources, insofar as such statements expressly summarize certain provisions of the Indenture and Bond Counsel’s final approving opinion, are accurate in all material respects.

7. A letter, dated the Closing Date and addressed to the Underwriter, of Disclosure Counsel, to the effect that such counsel is not passing upon and has not undertaken to determine independently or to verify the accuracy or completeness of the statements contained in the Preliminary Official Statement or in the Official Statement, and is, therefore, unable to make any representation to the Underwriter in that regard, but on the basis of its participation in conferences with representatives of the City, the City Attorney, as issuer’s counsel, Bond Counsel, Koppel & Gruber Public Finance, San Marcos, California, as special tax consultant to the Community Facilities District (in such capacity, the “Special Tax Consultant”), the Municipal Advisor, representatives of the Underwriter and others, during which conferences the content of the Preliminary Official Statement and the Official Statement and related matters were discussed, and its examination of certain documents, and, in reliance thereon and based on the information made available to it in its role as Disclosure Counsel and its understanding of applicable law, Disclosure Counsel advises the Underwriter as a matter of fact, but not opinion, that no information has come to the attention of the attorneys in the firm working on such matter which has led them to believe that the Preliminary Official Statement as of its date and the date hereof and the Official Statement as of its date and as of the Closing Date (in each case excluding therefrom the financial and statistical data, forecasts, charts, numbers, estimates, projections, assumptions and expressions of opinion included in the Preliminary Official Statement and the Official Statement, information regarding DTC and its book entry system, information regarding the Insurer, the Policy and the Reserve Policy, and the information set forth in Appendices A, B, C, D, E and F, as to all of which no opinion is expressed) contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

8. A certificate dated the Closing Date and signed by an authorized representative of the Community Facilities District or an authorized designee, on behalf of the Community Facilities District to the effect that: (i) the representations and warranties made by the Community Facilities District contained herein are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) the Community Facilities District Documents have been duly authorized and executed and are in full force and effect; (iii) to the best knowledge of such representative or designee, no event has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purpose for which it is to be used or which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (iii) the Community Facilities District has complied with all the agreements and satisfied all the conditions on its part to be satisfied under this Purchase Agreement, the Community Facilities District Resolutions, the Community Facilities District Documents and the Official Statement at or prior to the Closing Date; and (iv) all information in the Official Statement relating to the Community Facilities District (other than information therein provided by the Special Tax Consultant) is true and correct in all material respects as of the date of the Official Statement and as of the Closing Date;
667
14 9. An opinion of Burke, Williams & Sorensen, LLP, San Diego, California, City Attorney, dated the date of Closing and addressed to the Underwriter and the Community Facilities District, substantially in the form attached hereto as Exhibit B;

10. [Reserved.]

11. A certificate dated the Closing Date from Koppel & Gruber Public Finance, as Special Tax Consultant and Dissemination Agent, addressed to the Community Facilities District and the Underwriter to the effect that: (i) the Special Tax, if levied and collected in the maximum amounts permitted pursuant to the Rate and Method of Apportionment of Special Tax of the Community Facilities District, as of the Closing Date, would generate at least 110% of the annual debt service payable with respect to the Bonds plus the Administrative Expenses Cap, based on such assumptions and qualifications as shall be acceptable to the Underwriter; (ii) the statements in the Preliminary Official Statement and the Official Statement provided by the Special Tax Consultant concerning the Special Tax and all information supplied by it for use in the Official Statement were as of the date of the Preliminary Official Statement, the date of the Official Statement and are as of the Closing Date true and correct, and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; and (iii) the Special Tax Consultant is duly authorized to execute and deliver the Continuing Disclosure Agreement in its capacity as dissemination agent thereunder, and the Special Tax Consultant has duly executed and delivered the Continuing Disclosure Agreement;

12. Certified copies of the general resolution of the Trustee authorizing the execution and delivery of certain documents by certain officers of the Trustee, which resolution authorizes the execution of the Indenture and the authentication of the Bonds;

13. A certificate of The Bank of New York Mellon Trust Company, N.A. (the “Bank”), as Trustee and Escrow Agent, dated the date of Closing, addressed to the Underwriter, and the Community Facilities District, to the effect that: (a) the Bank is a national banking association organized and existing under and by virtue of the laws of the United States, having the full power and being qualified to enter into and perform its duties under the Indenture and the Escrow Agreement and to authenticate and deliver the Bonds to the Underwriter; (b) the Bank is duly authorized to enter into the Indenture and the Escrow Agreement and to authenticate and deliver the Bonds to the Underwriter pursuant to the Indenture; (c) when delivered to and paid for by the Underwriter at the Closing, the Bonds will have been duly authenticated and delivered by the Bank; (d) the execution and delivery of the Indenture and the Escrow Agreement and compliance with the provisions on the Bank’s part contained therein, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, note, resolution, agreement or other instrument to which the Bank is a party or is otherwise subject (except that no representation, warranty or agreement is made with respect to any federal or state securities or blue sky laws or regulations), which conflict, breach or default would materially impair the ability of the Bank to perform its obligations under the Indenture and the Escrow Agreement, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets held by the Bank pursuant to the liens created by the Indenture and the Escrow Agreement under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Indenture; and (e) to the best of the knowledge of the Bank, it has not been served with any action, suit, proceeding, inquiry or 668
15 investigation in law or in equity, before or by any court, governmental agency, public board or body, nor is any such action or other proceeding threatened against the Bank, affecting the existence of the Bank, or the titles of its officers to their respective offices or seeking to prohibit, restrain, or enjoining the execution and delivery of the Bonds or the collection of revenues to be applied to pay the principal, premium, if any, and interest with respect to the Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Indenture or the Escrow Agreement, or contesting the powers of the Bank or its authority to enter into, adopt or perform its obligations under any of the foregoing to which it is a party, wherein an unfavorable decision, ruling or funding would materially adversely affect the validity or enforceability of the Indenture or the Escrow Agreement or the power and authority of the Bank to enter into and perform its duties under the Indenture and the Escrow Agreement and to authenticate and deliver the Bonds to or upon the order of the Underwriter;

14. An opinion of counsel to Bank, dated the Closing Date and addressed to the Underwriter, substantially to the effect that:
a. The Bank is a national banking association duly organized, validly existing and in good standing under the laws of the United States having full power and authority and being qualified to enter into, accept and administer the trust created under the Indenture and the Escrow Agreement and to enter into the Indenture and the Escrow Agreement. b. The Indenture and the Escrow Agreement have been duly authorized, executed and delivered by the Bank and, assuming due authorization, execution and delivery by the other parties thereto, constitute the legal, valid and binding obligations of the Trustee, enforceable against the Bank in accordance with their respective terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting enforcement of creditors’ rights generally and by the application of equitable principles if equitable remedies are sought. c. To such counsel’s knowledge, no authorization, approval, consent, or order of any governmental agency or regulatory authority having jurisdiction over the Bank, except for such authorizations, approvals or consents previously obtained, is required for the authorization, execution and delivery by the Bank of the Indenture and the Escrow Agreement. d. An authorized representative of the Trustee has duly authenticated the Bonds in accordance with the Indenture.

15. A certificate of the Community Facilities District dated the Closing Date, in a form acceptable to Bond Counsel and the Underwriter, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended;

16. An opinion of Anzel Galvan LLP, San Francisco, California, counsel to the Underwriter, dated the date of Closing and addressed to the Underwriter in form and substance acceptable to the Underwriter;

17. A certificate of the Municipal Advisor dated the date of Closing to the effect that the Municipal Advisor has participated in the preparation of the Preliminary Official Statement and the Official Statement and nothing has come to the attention of the Municipal Advisor which would lead it to believe that the Preliminary Official Statement or the Official Statement contain any untrue statement of a material fact or omits to state a fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; 669
16 18. A copy of the Community Facilities District’s executed Blanket Letter of Representation to DTC;

19. A copy of the Blue Sky Survey dated the date of Closing with respect to the Bonds;

20. A defeasance opinion dated the date of Closing and addressed to the Underwriter substantially to the effect that (a) the Escrow Agreement has been duly executed and delivered by the Community Facilities District and, assuming due authorization, execution and delivery by the other parties thereto, constitutes the valid and binding obligation of the Community Facilities District, except to the extent that enforceability may be limited by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting creditors’ rights generally or by the exercise of judicial discretion in accordance with general principles of equity or otherwise in appropriate cases and by limitations on legal remedies against public agencies in the State; and (b) the requirements of the 2015 Fiscal Agent Agreement (as defined in the Escrow Agreement) have been satisfied with respect to the discharge of the outstanding 2015 Bonds and the pledge of the [Net Taxes (as defined in the Escrow Agreement)] and any other amounts held by the 2015 Fiscal Agent thereunder and all other obligations of the Community Facilities District under the 2015 Fiscal Agent Agreement with respect to the 2015 Bonds have ceased and terminated, except as expressly provided therein;

21. A verification report of Causey Demgen & Moore P.C. with respect to the sufficiency of amounts deposited with the Escrow Agent under the Escrow Agreement to defease and redeem the outstanding 2015 Bonds in accordance with the terms of the Escrow Agreement;

22. Evidence satisfactory to the Underwriter that the Trustee has received the Policy and the Reserve Policy from the Insurer;

23. An opinion of counsel to the Insurer, dated the Closing Date, in form and substance satisfactory to the Underwriter and Bond Counsel, with respect to, among other matters, the Policy, and disclosures relating thereto in the Official Statement;

24. A certificate of the Insurer, dated the Closing Date, in form and substance satisfactory to the Underwriter and Bond Counsel, with respect to, among other matters, the Policy and the Reserve Policy, and disclosures relating thereto in the Official Statement; and

25. Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the material representations and warranties of the Community Facilities District contained herein, and of the statements and information contained in the Official Statement and the due performance or satisfaction by the Community Facilities District at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by the Community Facilities District in connection with the transactions contemplated hereby and by the Indenture and the Official Statement.

All of the opinions, letters, certificates, instruments and other documents mentioned in this Purchase Agreement will be deemed to be in compliance with the provisions of this Purchase Agreement if, but only if, they are in form and substance satisfactory to the Underwriter. If the Community Facilities District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Purchase 670
17 Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and neither the Community Facilities District nor the Underwriter shall be under any further obligation hereunder, except that the respective obligations of the Underwriter and the Community Facilities District set forth in Section 9 hereof shall continue in full force and effect.

8. Termination Events. In recognition of the desire of the Community Facilities District and the Underwriter to effect a successful public offering of the Bonds, and in view of the potential adverse impact of any of the following events on such a public offering, this Purchase Agreement shall be subject to termination in the discretion of the Underwriter by notification, in writing, to the Community Facilities District prior to delivery of and payment for the Bonds, if between the date hereof and the time of Closing, in the Underwriter’s sole and reasonable judgment any of the following events shall occur (each a “Termination Event”):

A. the market price or marketability of the Bonds, or the ability of the Underwriter to enforce contracts for the sale of the Bonds, shall be materially adversely affected by any of the following events:

1. legislation shall have been enacted by the Congress of the United States or the legislature of the State or shall have been favorably reported out of committee of either body or be pending in committee of either body, or shall have been recommended to the Congress for passage by the President of the United States or a member of the President’s Cabinet, or a decision shall have been rendered by a court of the United States or the State or the Tax Court of the United States, or a ruling, resolution, regulation or temporary regulation, release or announcement shall have been made or shall have been proposed to be made by the Treasury Department of the United States or the Internal Revenue Service, or other federal or state authority with appropriate jurisdiction, with respect to federal or state taxation upon interest received on obligations of the general character of the Bonds;

2. there shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or

3. a general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of U.S.

Securities and Exchange Commission (“SEC”) or any other governmental authority having jurisdiction; or

4. legislation shall have been enacted by the Congress of the United States or shall have been favorably reported out of committee or be pending in committee, or shall have been recommended to the Congress for passage by the President of the United States or a member of the President's Cabinet, or a decision by a court of the United States shall be rendered, or a ruling, regulation, proposed regulation or statement by or on behalf of the SEC or other governmental agency having jurisdiction of the subject matter shall be made, to the effect that any obligations of the general character of the Securities, or the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, 671
18 as amended and as then in effect, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or

5. except as disclosed in or contemplated by the Official Statement, any material adverse change in the affairs of the Community Facilities District shall have occurred; or

6. any rating of the Bonds, any rating of the Insurer or the rating of any obligations of the Community Facilities District payable from Special Taxes shall have been downgraded, withdrawn or placed on credit watch with negative outlook by any major credit rating agency; or
B. any event or circumstance shall exist that either makes untrue or incorrect in any material respect any statement or information in the Official Statement (other than any statement provided by the Underwriter) or is not reflected in the Official Statement but should be reflected therein in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and, in either such event, the Community Facilities District refuses to permit the Official Statement to be supplemented to supply such statement or information, or the effect of the Official Statement as so supplemented is to materially adversely affect the market price or marketability of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or C. a general banking moratorium shall have been declared by federal or State authorities having jurisdiction and be in force; or
D. a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or
E. any new restriction on transactions in securities materially affecting the market for securities (including the imposition of any limitation on interest rates) or the extension of credit by, or a charge to the net capital requirements of, underwriters shall have been established by the New York Stock Exchange, the SEC, any other federal or State agency or the Congress of the United States, or by Executive Order; or
F. a decision by a court of the United States shall be rendered, or a stop order, release, regulation or no-action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Bonds, including the underlying obligations as contemplated by this Purchase Agreement or by the Official Statement, or any document relating to the issuance, offering or sale of the Bonds, is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Indenture Act of 1939; or G. the commencement of one or more Actions.

Subject to Section 14, upon the occurrence of a Termination Event and the termination of this Purchase Agreement by the Underwriter, all obligations of the Community Facilities District and the Underwriter under this Purchase Agreement shall terminate, without further liability. 672
19 9. Expenses. Whether or not the Bonds are sold to the Underwriter as set forth herein:

A. The Underwriter shall be under no obligation to pay any expenses incident to the performance of the obligations of the Community Facilities District hereunder. If the Bonds are delivered by the Community Facilities District, the Community Facilities District shall pay, from the proceeds of the Bonds or from other funds of the Community Facilities District, the following expenses: (a) the cost of preparing, duplicating or printing, mailing and delivering the Community Facilities District Documents, the Preliminary Official Statement, the Official Statement and all other agreements and documents that are contemplated hereby (and drafts of any thereof); (b) the cost of preparation and printing of the definitive Bonds; (c) the fees and expenses of the Community Facilities District, the Trustee, Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Special Tax Consultant, the Dissemination Agent, any entity performing continuing disclosure compliance research or providing continuing disclosure compliance reports and any other experts or consultants retained by the Community Facilities District; (d) the charges of any rating agency with respect to the Bonds; (e) reimbursement to the Underwriter for payment of any fees and expenses reasonably incurred in connection with the initial offering, sale and delivery of the Bonds, including but not limited to industry fees (e.g., DTC, DAC, IPREO, CUSIP and Day Loan fees) only if the Community Facilities District and Underwriter have previously discussed and approved the allocation of proceeds towards these fees, and meal and travel expenses of the personnel of the Community Facilities District, but not including entertainment expenses or those to be paid by the Underwriter pursuant to the last paragraph of this Section 9, and (f) all other fees and expenses, not including entertainment expenses, reasonably incurred in connection with the preparation of the Community Facilities District Documents, the Preliminary Official Statement, the Official Statement and all other agreements and documents that are contemplated hereby (and drafts of any thereof) and/or the initial offering, sale and delivery of the Bonds. The Community Facilities District has authorized, and does hereby authorize, the Underwriter to pay such expenses on behalf of the Community Facilities District from proceeds of the Bonds at Closing as further described in the closing memorandum relating to the Bonds.

B. If the Bonds are sold to the Underwriter by the Community Facilities District, the Community Facilities District shall pay out of the proceeds of the Bonds the discount of the Underwriter or the purchase price paid for the Bonds shall reflect such discount.

Except as otherwise provided in this Section 9, the Underwriter shall pay the cost, if any, of qualifying the Bonds for sale in the various states chosen by the Underwriter, all advertising expenses in connection with the public offering of the Bonds and all other expenses incurred by it in connection with its public offering and distribution of the Bonds, not described above.

10. Use of Documents. The Community Facilities District hereby authorizes the Underwriter to use, in connection with the public offering and sale of the Bonds, this Purchase Agreement, the Preliminary Official Statement, the Official Statement and the Community Facilities District Documents, and the information contained herein and therein.

11. Qualification of Bonds. The Community Facilities District will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and to provide for the continuance of such qualification; provided, however, that the Community Facilities District will not be required to qualify as a foreign corporation or to file any general or special consents to service of process under the laws of any state. 673
20 12. Notices. Any notice or other communication to be given to the Community Facilities District under this Purchase Agreement may be given by delivering the same in writing to the City of San Clemente, 910 Calle Negocio, San Clemente, California 92673, Attention: Chief Financial Officer; any notice or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Stifel, Nicolaus & Company, Incorporated, 2121 Avenue of the Stars, Suite 2150, Los Angeles, California 90067, Attention: Sara Brown.

13. Benefit. This Purchase Agreement is made solely for the benefit of the Community Facilities District and Underwriter (including any successors or assignees of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof. Except as otherwise expressly provided herein, all of the agreements and representations of the Community Facilities District contained in this Purchase Agreement and in any certificates delivered pursuant hereto shall remain operative and in full force and effect regardless of: (i) any investigation made by or on behalf of the Underwriter; (ii) delivery of and payment for the Bonds hereunder; or (iii) any termination of this Purchase Agreement.

14. Survival of Representations and Warranties. The representations and warranties of the Community Facilities District under this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the Community Facilities District and regardless of delivery of and payment for the Bonds.

15. Execution in Counterparts. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

16. Effective. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance.

17. No Prior Agreements. This Purchase Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements, prior writings and representations with respect thereto.

18. Waiver of Jury Trial. THE COMMUNITY FACILITIES DISTRICT HEREBY

IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,

ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF

OR RELATING TO THIS PURCHASE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

19. Governing Law. This Purchase Agreement shall be governed by the laws of the State. [Signature Page Follows]
674
S-1

20. Effective Date. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance.

Very truly yours,

STIFEL, NICOLAUS & COMPANY,

INCORPORATED
By:

Its: Managing Director
The foregoing is hereby agreed to and
accepted as of the date first above written:

COMMUNITY FACILITIES DISTRICT NO. 2006-1
(MARBLEHEAD COASTAL) OF THE CITY OF SAN CLEMENTE
By:

Authorized Officer
Time of Execution: _____________ California time
675
A-1

EXHIBIT A
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL)

OF THE CITY OF SAN CLEMENTE
2025 SPECIAL TAX REFUNDING BONDS

MATURITY SCHEDULE
Maturity
(September 1)
Principal
Amount
Interest
Rate Yield Price
10% Test
Used
10% Test
Met
Hold-TheOfferingPrice Used
_________________
T: Term Bond.

C: Priced to optional redemption date of September 1, 20__, at par. 676
A-2

REDEMPTION PROVISIONS
Optional Redemption. The Bonds with stated maturities on or after September 1, 20__ are subject to redemption prior to their respective stated maturities, as a whole or in part, as directed by the Community Facilities District in a written request provided to the Trustee at least 35 days (or such lesser number of days acceptable to the Trustee in the sole discretion of the Trustee, such notice for the convenience of the Trustee) prior to redemption, by lot within each maturity in integral multiples of $5,000, on September 1, 20__ or any date thereafter, at a redemption price equal to the principal amount thereof plus accrued interest thereon to the date fixed for redemption, without premium.

Mandatory Sinking Fund Redemption. The Bonds maturing on September 1, 20__ (the “Term Bonds”) shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account, on September 1, 20___, and September 1, 20___, in accordance with the schedule of Sinking Fund Payments set forth below. The Term Bonds so called for redemption shall be selected by the Trustee by lot and shall be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:

Term Bonds Maturing September 1, 20__
Redemption Date (September 1) Principal Amount
*
* Maturity.

Special Mandatory Redemption from Special Tax Prepayments. The Bonds are subject to extraordinary redemption as a whole, or in part by lot, on any Interest Payment Date, and shall be redeemed by the Trustee, from Prepayments deposited to the Redemption Account, plus amounts transferred from the Reserve Account, among maturities as directed in writing by the Community Facilities District, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date:

Redemption Date Redemption
Price
Any Interest Payment Date from (and including) September 1, 20__ through (and including) March 1, 20__
___%
September 1, 20__ and March 1, 20__ ___
September 1, 20__ and March 1, 20__ ___
September 1, 20__ and any Interest Payment Date thereafter ___ 677
B-1

EXHIBIT B
FORM OF OPINION OF THE ISSUER’S COUNSEL
[Closing Date]
Community Facilities District No. 2006-1
(Marblehead Coastal) of the City of San Clemente
San Clemente, California
Stifel, Nicolaus & Company, Incorporated
Los Angeles, California
ISSUER’S COUNSEL OPINION
Re: $[PAR] Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente 2025 Special Tax Refunding Bonds
Ladies and Gentlemen:

We serve as the City Attorney of the City of San Clemente (the “City”), and in such capacity we have acted as counsel (“Issuer’s Counsel”) to Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente (the “Community Facilities District”) in connection with the issuance of the above-referenced bonds (the “Bonds”). This opinion is rendered at the request of the Community Facilities District in satisfaction of the condition set forth in Section 7(F)(9) of that certain Bond Purchase Agreement, dated [Closing Date] (the “Bond Purchase Agreement”), by and between Stifel, Nicolaus & Company, Incorporated, as underwriter, and the Community Facilities District, relating to the Bonds. All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Bond Purchase Agreement.

In rendering this opinion, we have examined and relied upon originals or copies of the following upon which, with your permission, we are relying, without further inquiry or investigation :
(i) the Community Facilities District Resolution of Issuance; (ii) the Formation Documents, including Resolution No. 07-03 adopted by the City Council of the City on January 9, 2007, pursuant to which the City formed the Community Facilities District, and Resolution No. 14-25, dated July 1, 2014, pursuant to which the original Rate and Method of Apportionment of Special Tax of the Community Facilities District was amended and restated; (iii) the Community Facilities District Documents; and (iv) the Official Statement, relating to the Bonds. In rendering this opinion, we have made such other investigations of law and facts as we have deemed necessary, and as to questions of fact material to our opinions, we have relied upon representations of the Community Facilities District contained in the Community Facilities District Documents and in the certified proceedings and other certifications of public officials and others furnished in connection with the closing of the subject transaction, without undertaking to verify the same by independent investigation.

Acceptance of this opinion letter by you shall conclusively operate as your acknowledgement that this opinion letter is limited to and addresses all of the specific legal issues that are to be dealt with in our opinions set forth herein and no opinions are implied or may be inferred beyond the matters expressly stated herein. The opinions expressed herein may be affected by actions taken or omitted or 678
B-2
events occurring after the date hereof. We have not undertaken any duty, and we expressly disclaim any responsibility, to advise you as to actions taken or omitted or events occurring after the date hereof with respect to the Bonds or other matters concerning the Community Facilities District or the City.

In our examination, we have assumed, without independent investigation, the authenticity and completeness of all documents submitted to or reviewed by us as originals, the conformity in all respects to authentic originals of all documents submitted to or reviewed by us as certified or photostatic copies, and the accuracy of the statements and representations contained in such documents. In addition, we have assumed that each party to the documents referenced herein, other than the Community Facilities District and the City, has the power to enter into and perform its obligations thereunder and has duly authorized, executed, and delivered such documents.

Whenever a statement herein is qualified by “to our knowledge,” it shall be deemed to indicate that, during the course of our representation of the Community Facilities District in connection with this transaction, no information that would give us current actual knowledge of the inaccuracy of such statement has come to our attention. We have not, however, undertaken any independent investigation to determine the accuracy of such statements, and any limited inquiry undertaken by us during the preparation of this opinion letter should not be regarded as such investigation. No inference as to our knowledge of any matters bearing upon the accuracy of any such statements should be drawn from the fact of our representation of the Community Facilities District or the City.

Our opinions set forth herein do not extend to, and we express no opinions herein with respect to, any laws other than the laws of the State of California, but exclusive of the tax and securities laws, rules and regulations of the State of California and the laws of the State of California relating to debt limitations and restrictions applicable to public entities.

On the basis of, and subject to and in reliance upon, the foregoing and the other qualifications and limitations set forth in this opinion letter, we are of the opinion that:

1. The City is a municipal corporation and general law city, duly organized and existing under the Constitution and the laws of the State of California.

2. The Community Facilities District is duly organized and validly existing as a community facilities district under and by virtue of the Constitution and laws of the State of California.

3. The Community Facilities District Resolution of Issuance and the Formation Documents have been duly adopted at meetings of the City Council of the City acting as the legislative body of the Community Facilities District, which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the Community Facilities District Resolution of Issuance and the Formation Documents are in full force and effect and have not been modified, amended, rescinded or repealed since the respective dates of their adoption.

4. The Community Facilities District Documents and the Official Statement have been duly authorized, executed and delivered by the Community Facilities District

5. Except as may be stated in the Official Statement, to our knowledge, there is no action, suit, proceeding or investigation before or by any court, public board or body pending (proper notice or process of which has been served on the City or the Community Facilities District) or overtly 679
B-3
threatened in writing : (a) challenging the creation, organization, existence or powers of the City or the Community Facilities District, or the titles of their members and officers to their respective offices; or (b) challenging the validity of the Community Facilities District Documents or seeking to restrain or enjoin the repayment of the Bonds or contesting the validity of the Community Facilities District Documents or contesting the authority of the Community Facilities District to enter into or perform its obligations under any of the Community Facilities District Documents; or (c) questioning the right of the Community Facilities District to use Special Tax levied within the Community Facilities District for the repayment of the Bonds or the right or ability of the Community Facilities District to collect or pledge the Special Tax levied within the Community Facilities District for the repayment of the Bonds;

6. To our knowledge, the execution and delivery of the Bonds and the Community Facilities District Documents, and compliance with the provisions of each, will not conflict with or constitute a breach of or default under any loan agreement, note, ordinance, resolution, indenture, contract, agreement or other instrument of which the Community Facilities District is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Community Facilities District to perform its obligations under the Bonds or the Community Facilities District Documents.

7. To our knowledge, the Community Facilities District is not in breach of or default under any applicable law or administrative regulation of the State or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject, which breach or default would materially adversely affect the Community Facilities District’s ability to enter into or perform its obligations under the Community Facilities District Documents.

This letter is furnished by us as Issuer’s Counsel. Other than the City and the Community Facilities District, no attorney-client relationship has existed or exists between us and you in connection with the Bonds or by virtue of this letter. We disclaim any obligation to update this letter.

This letter is delivered to you, is solely for your benefit and is not to be used, circulated, quoted or otherwise referred to or relied upon for any other purpose or by any other person; provided, however, an information copy may be included in the transcript of the proceedings for the Bonds. This letter is not intended to, and may not, be relied upon by owners of the Bonds.

We bring to your attention the fact that our conclusions are an expression of professional judgment and are not a guarantee of a result.

Burke, Williams & Sorensen, LLP
680
C-1

EXHIBIT C
$[PAR]
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL)

OF THE CITY OF SAN CLEMENTE
2025 SPECIAL TAX REFUNDING BONDS

FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Stifel, Nicolaus & Company, Incorporated (“Stifel”) hereby certifies as set forth below with respect to the sale and delivery of the above-captioned obligations (the “Bonds”).

1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.

2. Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) Stifel offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B.
(b) As set forth in the Bond Purchase Agreement, dated [Pricing Date], by and between Stifel, as the Underwriter (as defined below), and the Issuer (as defined below), Stifel has agreed in writing that: (i) for each Maturity of the Hold-the-Offering-Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offeringprice rule”); and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any third-party distribution agreement shall contain the agreement of each broker-dealer who is a party to the third-party distribution agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.

3. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(b) Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturities.” (c) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (which Sale Date is [Pricing Date]), or (ii) the date on which Stifel has sold at least 10% of 681
C-2
such Hold-the-Offering-Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold-the-Offering-Price Maturity.
(d) Issuer means Community Facilities District No. 2006-1 (Marblehead Coastal) of the City of San Clemente.
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.

The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is [Closing Date]. (h) Underwriter means: (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public; and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the Public).

The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Stifel’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. The certifications contained herein are not necessarily based on personal knowledge, but may instead be based on either inquiry deemed adequate by the undersigned or institutional knowledge (or both) regarding the matters set forth herein.

STIFEL, NICOLAUS & COMPANY,

INCORPORATED
By:

Name:

By:

Name:

Dated: [Closing Date]
682
C-3

SCHEDULE A

SALE PRICES OF THE GENERAL RULE MATURITIES AND INITIAL OFFERING

PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES
(Attached)
683
C-4

SCHEDULE B

PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)
684
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: May 6, 2025 Agenda Item: 9C.

Submitted By: City Manager
Prepared By: Andy Hall, City Manager
Leslea Meyerhoff, Contract Coastal Administrator
Subject:
..titl e

DISCUSSION AND POSSIBLE DIRECTION ON THE OFFSHORE SAND SOURCE INVESTIGATION PROJECT ..body
Fiscal Impact:

The San Clemente Offshore Sand Source Investigation is funded by an $800,000 grant from the California Coastal Commission awarded to the City in 2024. The Orange County Transportation Authority (OCTA) has indicated that they will contribute an additional $180,000 to expand the project to ensure additional potential sites can be evaluated.

Summary:

Following a presentation by the consultant team hired to conduct the sand source investigation on April 15, 2025, members of the City Council requested that the item be placed on the next agenda to discuss the strategy in relation to site selection for further study.

Background and Discussion:

The Coastal Commission funded sand source investigation to determine if adequate sand to conduct beach nourishment can be found in closer proximity to the receiving beaches in San Clemente than the current site located in North Orange County and referred to as Surfside Sunset. If an adequate sand borrow site can be located closer to the receiving beaches, the environmental impacts of transporting the sand will be reduced and there will be significant savings in the transport costs.

There are many elements in selecting an effective sand source, but two of the more important factors are the characteristics of the material and the volume of material in the potential borrow site. The sand must be compatible in grain size with the natural beach and there must be enough beach quality sand to address the need.

The consultant team prepared a draft exploration plan outlining a sediment sampling program to investigate multiple candidate borrow sites. A total of 11 potential borrow sites were identified and the draft exploration plan presented on April 15 would explore up to six of the nearest sites in late-Summer/early-Fall 2025 at varying levels of detail. The draft exploration plan presented to the City Council was focused on proximity to the City as a first priority for exploration based on the fact that the closer the sand source, the lower the cubic yard cost of the sand, all other variables being equal.
685
Meeting Date: May 6, 2025 Agenda Item: 9C.

CITY OF SAN CLEMENTE 2
Previous studies, underwater geology and features such as river mouths indicate that there is a low probability that there is a significant sand source immediately adjacent to San Clemente.

However, if a site could be located near the City, the financial reward could be significant.

After it was explained that there is a low probability of finding an adequate source near the City, the City Council wanted to further explore whether the strategy should be changed to test the sites with a higher probability of containing adequate sand.

The City Council was informed that a low to very low probability does not mean zero probability of finding appropriate sand. Based on the City’s previously expressed desire to look for sand offshore of the City, some sites with a very low probability were included in the draft exploration plan in order to eliminate the possibility of sand near the City before looking to other more expensive potential sites elsewhere. The current strategy is to conduct a screening level exploration (2-3 cores per site) at the six candidate sites located from Dana Point to San Onofre, followed by more extensive exploration at the most promising sites (based on findings in the field). The proposed plan represents a balance between the City’s desire to explore all potential borrow sites in the Capistrano Bight and the low probability of finding suitable sand at these locations.

With additional funding from OCTA, which was not confirmed at the time of the last meeting, the City could now expand or modify the search to include areas off shore of Camp Pendleton and north of Dana Point. Given this new information, the City Council will be able to provide additional direction about the search strategy. Of importance to OCTA, is the need to identify a site with 100% confidence to provide 240,000 cubic yards of sand in a very short timeframe.

The next step in the process is obtaining a geologic sampling permit from the California State Lands Commission, which is scheduled to be heard on their June 2025 agenda. A Sampling and Analysis Plan (SAP) is also being prepared for agency review and approval. Once the permit and SAP approval have been obtained, the sampling effort is planned to commence shortly thereafter.

A draft report will be prepared summarizing the findings of the sampling effort and staff will report back to the City Council in late-2025 with the results of the sand source investigation.

Given the amount of grant funding and the high number of potential sites to be explored offshore, the 6 closest sites were proposed to be explored at the April 15, 2025 City Council meeting. The consultant team proposes to conduct a screening level investigation of the 6 closest sites and then focus on the best one(s). This plan represents the consultant’s effort to balance the City’s desire to explore all potential borrow sites in the Capistrano Bight and the low probability of finding suitable sand in certain locations within the existing budget constraints.

Council Options:
 There is no action required for this item. However, the City Council may, by majority vote, choose to modify the strategy for selection of potential sites or confirm the proposed plan.

Environmental Review/Analysis:

This discussion is not a project as defined by the California Environmental Quality Act (CEQA).

The Offshore Sand Source Investigation study was previously determined to be exempt from 686
Meeting Date: May 6, 2025 Agenda Item: 9C.

CITY OF SAN CLEMENTE 3
CEQA under Class 6 (Information Collection, 14 § 15306), Section 15306 of the state CEQA Guidelines.

Recommended Actions:

Staff Recommendation ..recommendation
Staff is seeking direction from the City Council to confirm or modify the strategy for selecting sites for exploration of an adequate offshore sand source site. ..end
Attachment:

None.

Notification:

None.
687
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: May 6, 2025 Agenda Item: (1)
688
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Tuesday, April 15, 2025
City Council
Regular Meeting Minutes
4:30 p.m. - Closed Session
5:30 p.m. - Business Meeting
Mayor Knoblock
Mayor Pro Tem Enmeier
Councilmember Cabral
Councilmember Loeffler
Councilmember Wu
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

A Regular Meeting of the San Clemente City Council was called to order by Mayor Knoblock on April 15, 2025 at 4:30 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

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

CLOSED SESSION
The City Council agreed to consider Closed Session Item B first.

Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to recess to Closed Session at 4:32 p.m. to discuss the following:

A. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION Whether to initiate litigation pursuant to Government Code section 54956.9(d) (4)
Number of Cases: 1
B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Discussion concerning real property transactions in compliance with Government Code section 54956.8 regarding:

APN: None
Property: Potential lease of City Right-of-Way located between 242 Avenida Del Mar and 218 Avenida Del Mar (Farmers Market)
City Negotiators: Andy Hall, City Manager and Samantha Wylie, Beaches, Parks and Recreation Director
Negotiating Parties: Introduction Unlimited, Inc.

Under Negotiations: Price and terms for potential lease for the Farmers Market

Page 1 of 16 ends

689
City Council Regular Meeting Minutes April 15, 2025
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Councilmember Wu left Closed Session at 4:54 p.m.

Closed Session concluded at 5:22 p.m.

BUSINESS MEETING
The Business Meeting reconvened at 5:30 p.m. with all City Councilmembers present.

INVOCATION
Ryder Steimle, San Clemente Stake Interfaith Specialist, Church of Jesus Christ of Latter-Day Saints, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Loeffler led the Pledge of Allegiance.

1. Special Presentations
A. Presentation of Commendation - John Kiger
The Mayor, with the City Council, presented a commendation to John Kiger for his bravery and heroism in identifying the alleged suspect involved in the stabbing of an Orange County Sheriff Deputy at North Beach.

2. Oral Communications (Part 1)
Dr. James Wilson, San Clemente, narrated a PowerPoint presentation concerning technology to track panga boats off the coast of San Clemente. A hard copy of the presentation is on file with the City Clerk.

Amanda Quintanilla spoke on the California Coastal Commission emergency permit for the Orange County Transportation Authority (OCTA) projects in San Clemente.

Pamela Brashear, San Clemente, commented on the "Hands Off" protest held on April 5, 2025.

Nancy Brashier, San Clemente, commented on the "Hands Off" protest held on April 5, 2025.

Reva Buck spoke on the ongoing Broadmoor Homeowners Association action concerning trees that exceed 17 feet.

Paul Buck, San Clemente, commented on the ongoing Broadmoor Homeowners Association action concerning trees that exceed 17 feet; submitted documents to be included in the record, which are on file with the City Clerk.

Page 2 of 16 ends

690
City Council Regular Meeting Minutes April 15, 2025
Lois McNicoll narrated a video presentation concerning conditions at San Clemente beaches. A copy of the presentation is on file with the City Clerk.

George Gregory, San Clemente, spoke in opposition to local church groups distribution of food, goods and services at North Beach.

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

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

4. Consideration of agendizing items requiring immediate action None.

5. Closed Session Report - City Attorney
City Attorney Mitchell provided the following Closed Session Report:

Direction given, no reportable action concerning:

A. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION Whether to initiate litigation pursuant to Government Code section 54956.9(d) (4)
Number of Cases: 1
Direction given, no reportable action concerning:

B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Discussion concerning real property transactions in compliance with Government Code section 54956.8 regarding:

Under Negotiations: Price and terms for potential lease for the Farmers Market

6. Staff Communications
Public Works Director/City Engineer Rebensdorf announced the upcoming grand opening of the San Clemente Pump Track on April 26, 2025 at 11:00 a.m., and the San Clemente Earth Day Beach Clean-up and Educational Fair held at the Pier and Parque Del Mar on April 26, 2025 from 9:00 a.m. to 1:00 p.m.

Page 3 of 16 ends

691
City Council Regular Meeting Minutes April 15, 2025

7. Public Hearings
7A. PUBLIC HEARING ON 2025 WEED ABATEMENT - ORDER TO ABATE

NUISANCES BY HAVING WEEDS, RUBBISH, AND REFUSE, REMOVED

FROM VACANT AND UNOCCUPIED, DEVELOPED PROPERTIES, AND

FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Mayor Knoblock opened the Public Hearing.

Community Development Director Atamian reviewed the contents of the Adminsitrative Report and responded to City Council inquiries.

Tom Streeter, San Clemente, spoke in support of expanding the weed abatement program; urged the City Council to require homeowners to rid their property of certain plants.

There being no others desiring to speak, Mayor Knoblock closed the Public Hearing.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to adopt Resolution No. 25-39 entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ORDERING

THE DIRECTOR OF COMMUNITY DEVELOPMENT TO ABATE THE

NUISANCES BY HAVING WEEDS, RUBBISH, REFUSE AND DIRT REMOVED

FROM VACANT PROPERTIES AND UNOCCUPIED, DEVELOPED

PROPERTIES WITHIN THE CITY, NOTIFYING THE STATE, COUNTY, OR

ANY OTHER PUBLIC AGENCY AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) UNDER SECTIONS 15301, 15308, AND 15321 OF THE CEQA GUIDELINES (14 CCR § 15301(h), CLASS 1: EXISTING FACILITIES, 15308, CLASS 8: ACTIONS BY REGULATORY AGENCIES FOR
PROTECTION OF THE ENVIRONMENT, AND 15321, CLASS 21:

ENFORCEMENT ACTIONS BY REGULATORY AGENCIES).

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

Page 4 of 16 ends

692
City Council Regular Meeting Minutes April 15, 2025

8. Unfinished Business
8A. OFFSHORE SAND SOURCE INVESTIGATION PROJECT STATUS UPDATE Greg Hearon, Coastal Frontiers, narrated a PowerPoint presentation entitled "City of San Clemente Offshore Sand Source Investigation Project Update" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

By consensus, the City Council moved to receive and file the Administrative Report dated April 15, 2025 and on file with the City Clerk.

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

9. New Business
9A. CONSIDERATION OF A RESOLUTION ACCEPTING A $25,000 DONATION

FROM PIERPRIDE FOUNDATION FOR THE REPLACEMENT AND

PURCHASE OF THE HOLIDAY TREE AT THE END OF THE PIER
Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

1. Adopt revised Resolution No. 25-40 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ACCEPTING A DONATION OF $25,000 FROM THE PIERPRIDE FOUNDATION FOR

THE PURCHASE OF A REPLACEMENT ARTIFICIAL HOLIDAY TREE FOR THE END OF THE PIER.

2. Approve the allocation of funds for the purchase of the tree as outlined in the Administrative Report, dated April 15, 2025.

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

Page 5 of 16 ends

693
City Council Regular Meeting Minutes April 15, 2025
9B. DISCUSSION ABOUT CITY COUNCILMEMBER PARTICIPATION AT CITY EVENTS AND A POSSIBLE AMENDMENT TO CITY POLICY NO. 1201-11 TO

DEFINE PROPER SPEAKING ETIQUETTE AT AND/OR ATTENDANCE AT

CERTAIN CITY EVENTS AND MEETINGS OF LEGISLATIVE BODIES
Amanda Quintanilla narrated a PowerPoint presentation entitled "SC Policy Change". A hard copy of the presentation is on file with the City Clerk.

Lois McNicoll opined that City Councilmembers should not express their opinions regarding ballot measures.

Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to table this item and take no action.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
9C. CONSIDERATION OF RE-RATIFICATION OF RESOLUTION NO. 24-12

ENTITLED A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, ADOPTING A STATEMENT OF INTENT FOR

EACH COUNCILMEMBER TO ACT IN THE BEST INTERESTS OF THE

ENTIRE CITY FOLLOWING THE IMPLEMENTATION OF COUNCIL

ELECTION DISTRICTS
Amanda Quintanilla opined on the proposed changes to Resolution No. 24-12.

Motion by Councilmember Wu, DIED FOR A LACK OF SECOND, to add language to Resolution No. 24-12 to include “The City Council governs the whole City with all Councilmembers sharing the responsibilities. No Councilmember has his or her exclusive jurisdiction, regardless the implementation of the by-district election system.”
Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 4-1 (Councilmember Wu voting NOE), to table this item and take no action.

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

Page 6 of 16 ends

694
City Council Regular Meeting Minutes April 15, 2025
9D. SCHEDULING OF A MEETING TO INTERVIEW AND APPOINT INDIVIDUALS

TO SERVE ON VARIOUS CITY COMMISSIONS AND COMMITTEES AND

RELATED DIRECTION
Amanda Quintanilla opined that Coastal Advisory Committee members should continue their unexpired terms on the Beaches, Parks and Recreation Commission.

John Dolegowski, San Clemente, expressed concerns regarding focus on coastal issues; suggested that the City Council assign specific tasks to a coastal subcommittee.

Susan Ambrose, San Clemente, opined on the Coastal Advisory Committee duties being consolidated with the Beaches, Parks and Recreation Commission.

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

1. Authorize and direct the City Clerk to advertise to fill 14 total vacancies on the Arts and Culture Committee, Beaches, Parks and Recreation Commission, Community Safety and Welfare Committee, Golf Course Committee, Investment Advisory Committee and Planning Commission for two-year terms to expire June 30, 2027.

2. Schedule interviews for June 17, 2025 at 1:00 p.m. to appoint individuals to fill the upcoming vacancies.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
9E. FISCAL YEAR 2024-2025 SECOND QUARTER REPORT AND MID-YEAR

BUDGET ADJUSTMENTS
Administrative Services Director Brower and Finance Manager Mariano narrated a PowerPoint presentation entitled "Mid-Year Financial Report FY 2024-25 as of December 31, 2024" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Lois McNicoll suggested that the City have additional Long Term Financial Plan presentations to inform the community on the financial status of the City.

Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

1. Adopt Resolution 25-41 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADOPTING AND

APPROVING THE MID YEAR ADJUSTMENTS TO THE CITY OF SAN

Page 7 of 16 ends

695
City Council Regular Meeting Minutes April 15, 2025
CLEMENTE MUNICIPAL BUDGET FOR FISCAL YEARS 2024-25.

2. Receive and file the FY 2024-25 2nd Quarter Report.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
9F. CONSIDERATION OF A RESOLUTION APPROVING CLASSIFICATION

CHANGES SUPPORTING DEPARTMENTAL REORGANIZATION AND OTHER

VARIOUS CHANGES FOR ORGANIZATIONAL EFFECTIVENESS AND A

REVISED SALARY SCHEDULE
Amanda Quintanilla narrated a PowerPoint presentation entitled "Commission and Committees". A hard copy of the presentation is on file with the City Clerk.

Lois McNicoll commented on the financial status of the City as it relates to duties assigned to regraded positions.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to adopt Resolution No. 25-42 to approve the reorganization and classification changes and approve the revised salary schedule.

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

10. Consent Calendar
Item 10H was removed from the Consent Calendar for discussion.

A. City Council Minutes
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF APRIL 1, 2025.
(2) APPROVE THE SUCCESSOR AGENCY TO THE SAN CLEMENTE
REDEVELOPMENT AGENCY SPECIAL MEETING MINUTES OF APRIL 1, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
B. Commission/Committee Minutes
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to receive and file:
(1) DESIGN REVIEW SUBCOMMITTEE SPECIAL MEETING MINUTES OF MARCH 26, 2025.

Page 8 of 16 ends

696
City Council Regular Meeting Minutes April 15, 2025
(2) PLANNING COMMISSION REGULAR MEETING MINUTES OF APRIL 2, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
C. Warrant Register
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to:
(1) APPROVE WARRANT NOS.
603540 THROUGH 603665, PAID ON
3-28-25, IN THE AMOUNT OF $965,207.13
(2) APPROVE WIRE TRANSFER NOS.
3218 THROUGH 3225 AND WARRANT NOS.
603666 THROUGH 603879, PAID ON
4-4-25, IN THE AMOUNT OF $1,705,619.73
TOTAL WARRANT REGISTER $2,670,826.86
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Payroll Register
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to:

APPROVE WARRANT NOS. 975
THROUGH 977 AND AUTOMATIC
DEPOSIT ADVISES 101935
THROUGH 102285, FOR THE PERIOD
3-17-25 THROUGH 3-30-25, PAID
ON 4-4-25, IN THE AMOUNT OF $544,663.76
TOTAL PAYROLL REGISTER $544,663.76
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

Page 9 of 16 ends

697
City Council Regular Meeting Minutes April 15, 2025
10D. ADOPT ORDINANCE NO. 1789 (SECOND READING) - AMENDING CHAPTERS 2.28, 2.29, 2.40, 2.45, AND 2.46 OF THE MUNICIPAL CODE OF

THE CITY OF SAN CLEMENTE, RELATING TO THE BEACHES, PARKS AND

RECREATION COMMISSION, COASTAL ADVISORY COMMITTEE, HUMAN

AFFAIRS COMMITTEE, ARTS AND CULTURE COMMITTEE, AND PUBLIC

SAFETY COMMITTEE
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to adopt Ordinance No. 1789 entitled AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING CHAPTERS 2.28, 2.29, 2.40, 2.45, AND 2.46 OF THE MUNICIPAL CODE OF

THE CITY OF SAN CLEMENTE, RELATING TO THE BEACHES, PARKS AND

RECREATION COMMISSION, COASTAL ADVISORY COMMITTEE, HUMAN

AFFAIRS COMMITTEE, ARTS AND CULTURE COMMITTEE, AND PUBLIC SAFETY COMMITTEE, RESPECTIVELY.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10E. NOTICE OF COMPLETION - WATER RECLAMATION PLANT (WRP)

SPLITTER BOX REHABILITATION
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-43, which will:

1. Accept the WRP Splitter Box Rehabilitation, Project No. 14206, from the contractor, Jennette Company, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed WRP Splitter Box Rehabilitation.

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, Jennette Company, Inc.

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director/City Engineer in the amount of 25% of the total construction cost.

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

Page 10 of 16 ends

698
City Council Regular Meeting Minutes April 15, 2025
10F. CONTRACT AWARD - POCHE BEACH WATER RECLAMATION PROJECT

DIVERSION DESIGN PROJECT AND APPROVING RELATED

APPROPRIATIONS
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-44, which will:

1. Award a Professional Consultant Services Agreement to BKF Engineers for the design of a dry-weather urban runoff diversion as part of the Poche Beach Water Reclamation Project.

2. Approve, and authorize the City Manager to execute, Contract No. C25-17, by and between the City of San Clemente and BKF Engineers, providing for the Poche Beach Water Reclamation Project Diversion Design Project, in an amount not to exceed $279,440.

3. Authorize an appropriation of $250,000 from an Orange County Transportation Authority (OCTA) Environmental Cleanup Program Grant to Account No. 057-543-45300-000-16006.

4. Approve a transfer of $57,000 from Account No. 057-541-43890 (Clean Ocean Program Stormwater Compliance - Other Contractual Services) to Account No. 057-543-45300-000-16006.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10G. CONSIDERATION OF APPROVING GRANT APPLICATIONS FOR THE LAND

AND WATER CONSERVATION FUND FOR THE VISTA HERMOSA SPORTS

PARK MEADOWS PROJECT AND THE RALPHS SKATE COURT SKATE

PARK EXPANSION PROJECT
Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 5-0, to:

1. Adopt Resolution No. 25-45, entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING

THE GRANT APPLICATION FOR THE LAND AND WATER

CONSERVATION FUND VISTA HERMOSA SPORTS PARK MEADOWS
DEVELOPMENT PROJECT.

2. Adopt Resolution No. 25-46, entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING

THE GRANT APPLICATION FOR THE LAND AND WATER
CONSERVATION FUND SKATE COURT EXPANSION PROJECT.

Page 11 of 16 ends

699
City Council Regular Meeting Minutes April 15, 2025
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
10H. CONSIDERATION OF SUBMITTING A LETTER OF OPPOSITION TO THE CALIFORNIA LEGISLATURE REGARDING ASSEMBLY BILL 820 (PELLERIN) - A BILL TO ADD SECTION 50206 TO THE CALIFORNIA HEALTH AND

SAFETY CODE RELATING TO HOMELESSNESS TRANSPORT
Tom Streeter, San Clemente, urged the City Council to support the bill as written.

Donna Vidrine, San Clemente, spoke in support of the proposed bill as written.

Community Development Director Atamain reviewed the contents of the Administrative Report and responded to City Council inquiries.

Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 4-1 (Mayor Pro Tem Enmeier voting NOE) to approve, and authorize the Mayor to execute, and staff to submit a letter, in opposition to Assembly Bill 820 (Pellerin) to the State Legislature.

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

11. Oral Communications (Part 2)
None.

12. Future Agenda Items
Coastal Frontiers Sand Source Investigation
Councilmember Cabral, with the support of Mayor Pro Tem Enmeier and Councilmember Loeffler, agendized a report to address the upcoming sand investigation with Coastal Frontiers to have recommended sites for best locations/opportunities for locating suitable sand for beach nourishment.

Weed Abatement Program Changes
Councilmember Cabral, with the support of Councilmember Loeffler and Mayor Knoblock, agendized consideration of expansion of the weed abatement program to increase the 100 foot fire break for homeowners association properties.

Page 12 of 16 ends

700
City Council Regular Meeting Minutes April 15, 2025
Supervisor Foley's Sand Committee
Mayor Knoblock to report back to the City Council, once information is available, Supervisor Foley’s Sand Committee to determine if the City will participate and who the representative will be.

Failed Tax Measure BB
Councilmember Loeffler requested that the City Manager prepare a memo to inform the City Council if Measure BB (specific tax for sand and beach nourishment) had passed, how much money the City would have received from January - July 2025.

13. Reports
A. Council Member Reports
Councilmember Cabral:
· Announced that the City of San Clemente has been selected as the surfing contest location for the 2028 Olympics.
· Spoke on transportation for the 2028 Olympics and partnerships with the Orange County Transportation Authority (OCTA) and others within the city. · Presented at the April 2, 2025 Planning Commission meeting. · Attended the California Insider program.
· Attended the California Coastal Commission meeting on April 9, 2025. · Met with the Orange County Transportation Authority (OCTA). · Attended the San Clemente Leadership program on April 10, 2025. · Attended the University of California, Irvine presentation concerning cost effective methods for delivering sand to San Clemente on April 10, 2025. · Attended the Cal Cities meeting on April 11, 2025.
· Wrote letters concerning upcoming legislation to the California legislature. · Attended a Chamber of Commerce awards ceremony event at Disneyland. · Announced that the Orange County Transportation Authority (OCTA) was awarded their emergency permit for projects within San Clemente. · Attended the Jesus Christ of Latter-day Saints Palm Sunday concert.

Councilmember Enmeier:
· Attended the University of California, San Diego School of Policy concerning issues within San Clemente on April 9, 2025.
· Attended the University of California, Irvine presentation concerning cost effective methods for delivering sand to San Clemente on April 10, 2025. · Visited with the goats clearing the brush on April 11, 2025.

Page 13 of 16 ends

701
City Council Regular Meeting Minutes April 15, 2025
Councilmember Loeffler:
· Met with Senator Blakespear concerning collaborating with San Diego Association of Governments (SANDAG) for beach nourishment. · Attended Leadership San Clemente on April 3, 2025.
· Met with Marblehead Homeowners Association and toured the Pico Canyon concerning overgrown vegetation on April 3, 2025.
· Attended the Chamber of Commerce Community Update Luncheon on April 3, 2025.
· Attended the Luxor Real Estate meet and greet mixer.
· Attended the University of California, Irvine presentation concerning cost effective methods for delivering sand to San Clemente on April 10, 2025. · Spoke at Laurie Davies Fire Mitigation Workshop on April 10, 2025. · Attended the 30th Anniversary celebration for Syrens Hair Parlor on April 11, 2025.
· Attended the Aura Skinfit Ribbon Cutting on April 11, 2025. · Met with Seascape residents concerning a pedestrian island on Mira Costa. · Met with Shorecliffs residents concerning errant golf balls. · Recognized Police Services Captain Chevalier for his exemplary service to the City.

Councilmember Wu:
· Addressed the Orange County Transportation Authority (OCTA) Coastal Commission approval for areas 1-3 (Mariposa Bridge).

Mayor Knoblock:
· Attended the University of California, Irvine presentation concerning cost effective methods for delivering sand to San Clemente on April 10, 2025. · Announced that the goat grazing pilot program concluded on April 15, 2025. · Announced that his name was passed onto the Senate Rules Committee for consideration of possible appointment to the California Coastal Commission. · Met with Customs and Border Protection concerning camera placement within the City on April 3, 2025.

B. City Attorney
None.

C. City Manager
2028 Summer Olympics
City Manager Hall commented on San Clemente being selected for the 2028 Summer Olympics surf competition.

Page 14 of 16 ends

702
City Council Regular Meeting Minutes April 15, 2025
Orange County Transportation Authority (OCTA) Projects within the City City Manager Hall commented on the Orange County Transportation Authority (OCTA) project and the collaboration with the City on proposed projects within the City.

City Manager Executed Contracts
City Manager Hall reported that the following contracts were executed under his signature authority:

1. First Amendment with Digital Mapping Incorporated providing for Aerial Data Collection Services in an amount not to exceed $56,393.01.

2. Michael Baker International, Inc. providing for a Biological Survey in the amount of $3,360.

3. Kelsoe and Associates, Inc. providing for the preparation of legal documents for grant of easement for Storm Drain and Sanitary Sewer for Cyprus Shore in the amount of $9,210.

4. Financial Credit Network providing for Collection Agency Services in the amount of $5,000 annually.

5. Engineering Solutions Services providing for the Costero Risco Pressure Reducing Station Rehabilitation in the amount of $25,750.

6. BOA Architecture providing for San Clemente Community Center Restroom Rehabilitation in the amount of $28,000.

Mayor Knoblock requested additional information concerning the Michael Baker International, Inc. Biological survey contract.

Page 15 of 16 ends

703
City Council Regular Meeting Minutes April 15, 2025

14. Adjournment
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adjourn at 8:17 p.m. in recognition of Holy Week. The next Regular Meeting will be held on May 6, 2025. Closed Session will begin at 4:30 p.m.The Business Meeting will commence at 5:30 p.m. The meeting will take place at City Hall Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

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

Page 16 of 16 ends

704
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: May 6, 2025 Agenda Item: (1)
705

CITY OF SAN CLEMENTE
Investment Advisory Committee Minutes
Regular Meeting – January 27, 2025
A Regular Meeting of the City of San Clemente Investment Advisory Committee was called to order by City Treasurer, Charlie Smith, on January 27, 2025, at 6:00 p.m. in the Community Conference Room at City Hall, 910 Calle Negocio, San Clemente. (1) PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Charlie Smith.
(2) ROLL CALL
PRESENT: Investment Advisory Committee Members:

Charlie Smith, Victor Cabral, Jeff Willardson, Matthew Koelliker Staff:

Sandee Chiswick, Melissa Anderson, Brian Brower
ABSENT: Art Carter

CHANDLER
REPRESENTATIVE: Jayson Schmitt
PUBLIC: None
(3) APPROVAL OF MINUTES
Motion by Victor Cabral, seconded by Matthew Koelliker to approve the November 4, 2024 minutes. Approved 4-0.
(4) APPROVE 2
nd QUARTER FY 2024-25 INVESTMENT REPORT
Jayson Schmitt, Chandler Asset Management representative, reviewed the second quarter investment report and responded to questions raised by committee members. Motion by Victor Cabral, seconded by Jeff Willardson, to approve the 2 nd Quarter FY 2024-25 Investment Report. Approved 4-0. (5) SECTION 115 TRUST
Matthew Koelliker made a motion that the IAC will go with PARS subject to a fee review for the 115 Trust and made a motion to review the IPS for CSCERP.

Seconded by Jeff Willardson, approved 4-0.
706
Investment Advisory Committee Minutes January 27, 2025 Page 2 (6) ANNUAL INVESTMENT POLICY REVISIONS
There were no changes recommended to the City’s Investment Policy at this time.

Motion was made by Jeff Willardson, seconded by Matthew Koelliker to accept the Investment Policy with no changes. Approved 4-0.
(7) PENSION POLICY REVIEW
None.
(8) PORTFOLIO ALLOCATION, CURRENT ECONOMIC ENVIRONMENT

AND OTHER RELATED TOPICS
None.
(9) PUBLIC INPUT
None.
(10) ADJOURNMENT
Motion was made by Matthew Koelliker, seconded by Victor Cabral, carried 4-0, to adjourn to a Regular Meeting to be held on April 28, 2025, at 5:30 p.m. at City Hall located at 910 Calle Negocio, San Clemente, California. _________________________________
Charlie Smith
Chair-Investment Advisory Committee
Future Meeting Dates:

April 28, 2025
July 28, 2025
October 27, 2025
707
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: May 6, 2025 Agenda Item: (2)
708
709
710
711
712
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: May 6, 2025 Agenda Item: (3)

..ag endizedby
..end
Subject:
..titl e
PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF MARCH 25, 2025 ..body ..recommendation
..end
713
These minutes will be considered for approval at the Public Safety Committee Meeting of 4/22/2025.

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

PUBLIC SAFETY COMMITTEE
MARCH 25, 2025
City Hall
Council Chambers, 2nd Floor
910 Calle Negocio
San Clemente, CA 92673

1. CALL TO ORDER
Chair Berkuta called the Regular Meeting of the Public Safety Committee of the City of San Clemente to order at 3:00 p.m.

2. PLEDGE OF ALLEGIANCE
Member Rhoden led the Pledge of Allegiance.

3. ROLL CALL
Committee
Members Present: Chair Nick Berkuta
Vice Chair Michael Greenwald
Tom Hazelton
Mark Rhoden
Captain Justin Chevalier (Arrived at 4:02 p.m.)
Chief Rod Mellott
Chief Cheyne Maule
Committee
Members Absent: None
Staff Present: Adam Atamian, Community Development Director Rachel Perez, Administrative Assistant, Public Works
Natanya Wilcher, Office Specialist II

4. SPECIAL ORDERS OF BUSINESS / PRESENTATIONS
Presentation by OCFA Fire Prevention Specialist Nathan Babbitt, on the Ready, Set, Go! Program
OCFA Fire Prevention Specialist Nathan Babbitt and Assistant Fire Marshall Ryan Aloi presented the Ready, Set, Go! Program.
714

Page 2 ends

Minutes of the Regular Meeting of the Public Safety Committee of March 25, 2025 In response to Committee questions, Assistant Fire Marshall Aloi, OCFA Fire Prevention Specialist Babbitt, and Community Development Director Atamian explained the process to request an inspection or presentation; availability of the Fire Hazard Severity Zone Map; and public input on Cal Fire maps.

5. MINUTES
A. Minutes from the Regular Public Safety Committee Meeting of February 25, 2025

MOTION BY VICE CHAIR GREENWALD, SECOND BY MEMBER HAZELTON, AND CARRIED UNANIMOUSLY, to approve the minutes.

6. ORAL AND WRITTEN COMMUNICATION
Mike Kay, San Clemente Resident, discussed his experience in firefighting and discussed the pilot project utilizing goats for weed abatement.

In response to Committee questions, Mr. Kay discussed visitor and volunteer opportunities; support from the community; and Steve, the guard donkey.

Dennis Ordiway, San Clemente Resident, discussed loud, speeding vehicles at the intersection of Camino de Los Mares and Diamante.

7. REVEWS AND RECOMMENDATIONS
A. Code Compliance Performance Measures FY2025 Q1
Community Development Director Atamian explained the transition of the Code Compliance Division and provided an overview of the Performance Measures.

In response to Chair Berkuta, Community Development Director Atamian discussed the recommendation to move the Park Rangers under Public Safety; and the difference between Code Compliance and Park Rangers’ enforcement.

B. Park Rangers Performance Measures FY2025 Q1
Community Development Director Atamian provided an update on the Park Ranger Program.

Chair Berkuta discussed a recent golf cart parking incident.

8. NEW BUSINESS
None.
715

Page 3 ends

Minutes of the Regular Meeting of the Public Safety Committee of March 25, 2025

9. UNFINISHED BUSINESS
A. Public Safety Committee Annual Work Plan FY2024-2025 (1) Communications and Disaster Preparedness Project Update Chair Berkuta presented a public service announcement regarding tsunamis.

Community Development Director Atamian announced the upcoming tsunami drill.
(2) Homelessness and Best Management Practices for Public Safety Personnel Project Update
None.
(3) Neighborhood Watch
Vice Chair Greenwald discussed recent Neighborhood Watch meetings and recruitment of additional block captains.
(4) Statistical Information and Review
None.
(5) Human Trafficking
None.
(6) E-Bicycle/Traffic Safety
None.
(7) Technology Review
None.
(8) Review of Urgent Matters
None.
(9) Park Ranger Program
Community Development Director Atamian reported on efforts on enforcement training and development of body armor policy and procedures. 716

Page 4 ends

Minutes of the Regular Meeting of the Public Safety Committee of March 25, 2025

10. REPORTS OF COMMITTEE MEMBERS AND STAFF
A. Police Services – Orange County Sheriff’s Department Capt. Chevalier Captain Justin Chevalier provided an update on Police Services.

B. Fire Services – Orange County Fire Authority, Chief Maule Chief Maule discussed opportunities to obtain a home assessment under the Ready, Set, Go! Program; recent trainings and drills; and the memorial service for Fire Fighter Kevin Skinner.

C. Marine Safety – Marine Safety Division Chief. Mellott Chief Mellott provided an overview of recent statistics; notable incidents; lifeguard training; and special event permits.

In response to Chair Berkuta, Chief Mellott explained the shift of sand from the new fill.

D. Committee Chair
None.

E. Committee members
None.

F. City Staff
Community Development Director Atamian reported on the Council’s adoption of the Local Hazard Mitigation Plan, including the Community Wildfire Protection Plan, stakeholder meetings, and Hazard Mitigation Grant Fund; Weed Abatement Program; Council consideration to reorganize City Commissions and Committees, including changes to reduce the required attendance of non-voting members of the Sheriffs, Fire and Marine Safety Departments.

Chair Berkuta commented on the importance of having a representative of OCFA, Police Services, and Marine Safety in attendance at the Committee’s meetings.

11. ADJOURNMENT

MOTION BY VICE CHAIR GREENWALD, SECOND BY MEMBER HAZELTON, AND CARRIED UNANIMOUSLY, to adjourn the meeting at 4:59 p.m., to a Regular Meeting of the Public Safety Committee scheduled to be held on Tuesday, April 717

Page 5 ends

Minutes of the Regular Meeting of the Public Safety Committee of March 25, 2025 22, 2025, at 3:00 p.m. at City Hall in Council Chambers at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,
______________________________
Nick Berkuta, Chair
Attest:
_______________________________
Adam Atamian, Community Development Director
718
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: May 6, 2025 Agenda Item: (4)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF APRIL 9, 2025 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
719

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

DESIGN REVIEW SUBCOMMITTEE
APRIL 9, 2025
Subcommittee Members

Present:

Chair M. Steven Camp, Vice Chair Bart Crandell and
Committee Member Cameron Cosgrove
Subcommittee Members

Absent:

None.

Staff Present: John Ciampa, Contract Planner
Adam Atamian, Community Development Director
Chair Camp called to order the Design Review Sub-Committee Regular Meeting for City of San Clemente at 3:00 p.m. on April 9, 2025.

1. MINUTES
A. Review and file minutes of the Design Review Subcommittee (DRSC) on March 26, 2025.

There being no changes to the March 26, 2025 Special Meeting of DRSC, Subcommittee Member Cosgrove moved to approve the Minutes. Vice Chair Crandell seconded the motion and the Motion carried 3-0.

2. ARCHITECTURAL REVIEW OF THE FOLLOWING ITEMS:

A. Master Project (MP) 22-324, The Hanson Hotel, 1801 N. El Camino Real A request for the Design Review Subcommittee to review the design and provide recommendations for a three-story boutique hotel that includes 61 rooms, rooftop restaurant, café, subterranean parking garage, and associated site improvements at on a vacant lot at 1801 North El Camino Real.

Contract Planner, John Ciampa, summarized the staff report, and provided a presentation on the project.

Chair Camp opened the item for public comments.

Jorden Segraves, Architect, and Theodore Hannegan, Landscape Architect,, summarized the architectural and landscape modifications to the project since it was last reviewed by the DRSC, including coordination with the California Coastal 720
Design Review Subcommittee Meeting Minutes April 9, 2025 Page 2 Commission. Changes included the addition of 12 rooms to bring the room count to 61, a new loading area, mechanical screening, stepped design (with one story adjacent to Avenida Pico then stepped up to three stories at the inland northeast corner of the lot) to open up the view corridor, and enhanced landscaping and public area near the near the corner of Avenida Pico and N. El Camino Real.

Larry Culbertson, representative of the San Clemente Historic Society, expressed support for the project and its potential benefits to the area, but commented that inadequate analysis was provided for the assessment of the project and its compatibility with the North Beach Historic District and the adjacent historic structures.

Wayne Eggleston expressed support for the project but commented that the north elevation was too plain and needed to create more visual interest due to the project’s prominent location at the entrance of the City. He also recommended that a video simulation driving the Avenida Pico Corridor should be provided that shows the current and proposed project conditions to assess potential impacts on the view corridor.

The Design Review Subcommittee (DRSC) discussed the project, and made the following comments either individually or as a group:

General
• The DRSC supported the project overall and the modifications incorporated into the design since it was reviewed in 2022 noting a high-quality architectural design and stepped design away from Avenida Pico to limit visual obstructions in the Avenida Pico View Corridor.

Site Planning and Public Realm
• Sidewalk: The proposed four-foot six-inch sidewalk should be widened to a minimum of six feet, per the City's Pedestrian Master Plan and Public Works input with the approved interlocking pavers specified for this area. • Street Trees: The applicants proposed New Zealand Christmas Trees and Phoenix dactylifera (date palms) instead of the larger California sycamore or fan palms for their scale, maintenance benefits, suitability as street trees, and reduced view obstructions. DRSC supported the proposed trees.

View Corridor and Massing
• Visual Assessment: Avenida Pico is identified as a view corridor in the General Plan. Consider providing a video simulation driving west bound on Avenida Pico with and without the project to assess visual obstruction. • 3D Modeling / Context Study: A 3D model or masking study is recommended to assess the project’s relationship to the North Beach Historic District and adjacent historic resources. Commissioners expressed that contextual elevations or street views would be beneficial, particularly for members of the public not accustomed to interpreting site plans and elevations. 721
Design Review Subcommittee Meeting Minutes April 9, 2025 Page 3 • Rear Elevation Articulation: Consider stepping back the third story on the rear elevation to reduce massing and improve articulation.

Architecture and Design Detailing
• North Wall Design: The north-facing wall is flat and lacking visual interest.

Suggestions include architectural variation and landscape screening (e.g., palm trees, Italian cypress, vines).
• Chimneys: Faux chimneys used for screening utilities on the third-floor roof should be differentiated in height, width, and articulation to reduce visual bulk and add architectural authenticity.
• Window Recess: Rear elevation windows should include a minimum 6-inch recess. Other walls may allow a minimum of three inches if design compatibility is achieved.
• Materials & Colors: Specify stucco color on elevation sheets and clarify any painted wood vs. stucco treatments for long-term maintenance. • Tower Elements: Consider modifying the wood finish of the tower elements to stucco to reduce the maintenance of the feature as a result of harsh coastal environment conditions.
• Plate Height: The proposed method for measuring the plate height was supported.

Landscape Design
• Rear Landscaping: Incorporate palm trees and vertical trees like Italian cypress to soften the wall and blend with the natural landscape on the other side of the channel.
• Planter Boxes: Explore opportunities for planter boxes at the base of towers or along the northern frontage to provide dimension and soften hardscape areas.

Signage and Public Art
• Signage Location: Identify the location for proposed signage on the north elevation, if proposed in the future.
• Public Art Integration: Consider incorporating tile mosaics or artwork panels along the blank walls in partnership with the City.
• Signage Program: A signage consultant will be engaged in the next design phase; the current square footage allowance is nearly maximized.

The Subcommittee supports the project moving forward to the Planning Commission with consideration of the proposed modifications to enhance the project design.
722
Design Review Subcommittee Meeting Minutes April 9, 2025 Page 4

3. NEW BUSINESS
None.

4. OLD BUSINESS
None.

5. ORAL AND WRITTEN COMMUNICATION
None.

6. ADJOURNMENT
Adjourned to the next Regular Design Review Subcommittee meeting on April 23, 2025 at 3:00 p.m., San Clemente City Hall, First Floor Community Room, 910 Calle Negocio, San Clemente, CA.

Respectfully submitted,
_______________________________
M. Steven Camp, Chair
Attest:
_______________________________
Adam Atamian, Community Development Director
723
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: May 6, 2025 Agenda Item: (5)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF APRIL 17, 2025 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
724

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING

OF THE ZONING ADMINISTRATOR
April 17, 2025
San Clemente City Hall
First Floor Community Room
910 Calle Negocio
San Clemente, California 92673

1. CALL TO ORDER
Zoning Administrator (ZA) Adam Atamian called the Regular Meeting of the City of San Clemente Zoning Administrator to order on March 20, 2025 at 3:00 p.m. The meeting was held in the First Floor Community Room of City Hall, 910 Calle Negocio, San Clemente, California.

Staff Present: Adam Atamian, Zoning Administrator
Zach Rehm, Principal Planner
Araceli Mejia, Assistant Planner
Tamara Tatich, Administrative Assistant

2. MINUTES
A. Minutes from the Zoning Administrator Regular Meeting of March 20, 2025.

ZA Atamian received and filed the minutes for the regular meeting of March 20, 2024.

B. Minutes from the Zoning Administrator Special Meeting of March 24, 2025.

ZA Atamian received and filed the minutes for the special meeting of March 24, 2024.

3. ORAL AND WRITTEN COMMUNICATION
None.

4. PUBLIC HEARING
A. Public Hearing Project (PHP) 25-111, Temporary Use Permit (TUP) 25- 085, Circus Vargas 2025, 101 W Avenida Vista Hermosa
A public hearing to request the Zoning Administrator to approve Temporary Use Permit (TUP) 25-085 to operate a circus event at the Outlets at San Clemente from May 2-5, 2025 and May 7-12, 2025. Setup for the event, including temporary circus structures, is from April 29-May 1, 2025, and breakdown is on May 13, 2025.

The Zoning Administrator will also consider whether the project is Categorically Exempt from the requirements of the CEQA pursuant to DRAFT
725
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 2 CEQA Guidelines § 15301 (Class 1: Existing Facilities) and §15311 (Class 11: Accessory Structures).

Assistant Planner Mejia summarized the staff report that highlighted the following:
• Site has been used for similar events in the past.
• Dates: April 29 - May 13.
• Shows Duration: 1 hour 45 minutes
• Estimated Attendance: 300-500 people per show.
• No games of chance, mechanical rides, performing animals, pyrotechnics, alcohol, or outside vendors.
• Site plan includes: Entrance tent, ticket booths, restrooms, management and parking.
• Security: 8-member crew.
• Waste management: 25-member crew.
• Amplified sound limited to inside the tent.

Priscilla Iverson attended on behalf of the applicant.

ZA Atamian opened the public hearing and asked the applicants if they would like to make a presentation.Priscilla Iverson affirmed the staff presentation on behalf of the applicant.

ZA Atamian stated he reviewed the staff report and is familiar with the project. Assistant Planner Mejia advised that the event is similar to last year, but 2024 event was smaller and was hosted "American Circus.” The footprint is the same as previous circus.

ZA Atamian advised the applicant that there has been an issue with drainage in the past, and to be prepared in the event of rain.

There being no further questions of staff or the applicant, ZA Atamian closed the public hearing.

ZA Atamian determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines §15301 (Class 1: Existing Facilities) and §15311 (Class 11: Accessory Structures).

Action: The Zoning Administrator adopted Resolution ZA25-008 approving Temporary Use Permit 25-085, Circus Vargas at San Clemente Outlets 2025, 101 Avenida Vista Hermosa, subject to the Conditions of Approval.

B. Public Hearing Project (PHP)24-219; and Cultural Heritage Permit (CHP) 24-101, Wach Historic Residence Improvements, 217 Esplanade A public hearing to request the Zoning Administrator to allow the addition of a 55 sq. ft. bathroom, new windows, exterior improvements, and maintenance items to an approximately 2,156 sq. ft. historic home nonconforming to required side setbacks and parking located at 217 Esplanade.

DRAFT
726
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 3 The improvements are required pursuant to a previously approved Historic Property Preservation Agreement (HPPA).

The Zoning Administrator will also consider whether the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

Principal Planner Rehm summarized the staff report that highlighted the following:
• Location: 217 Esplanade is a historic home with Historic Preservation Agreement and Mills Act contract.
• Request: 45 sq. ft. bathroom addition, new windows, exterior improvements and maintenance.
• Proposed bathroom bumpout is on the side of the house right behind the historic garage.
• Revisions made based on feedback from and the Cultural Heritage Subcommittee.
• Applicant committed to HPPA improvements, including stucco repairs to front wall.
• Wall encroaches on sidewalk by up to three inches, repairs or improvements require minor encroachment permit.
• Condition of Approval: Applicant to provide staff with written evidence of compliance with nine HPPA items during construction.

Principal Planner Rehm introduced the applicant and owner, Christian Wach, and designer Dustin Morris.

ZA Atamian opened the public hearing and asked the applicants if they would like to make a presentation. Mr. Wach stated that the goal was to restore the historic wall rather than replacing it, as that is a significant feature of the home. Mr. Wach further explained that the addition is to accommodate a downstairs shower in a current half-bath.

ZA Atamian called for public comments:

Larry Culbertson, representative of the San Clemente Historical Society, stated that Mr. Wach provided tours of the home and two others that he had restored to members of the Historical Society, and expressed his support of the addition.

ZA Atamian stated he reviewed the staff report and is familiar with the project’s HPPA agreement. ZA Atamian stated that the addition is modest and will not be visible from the public right-of-way; and that he was pleased the feedback from the Subcommittee had been incorporated into the plans.

There being no further questions of staff or the applicant, ZA Atamian closed the public hearing.

ZA Atamian determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines §15301.

DRAFT
727
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 4 Action: The Zoning Administrator adopted Resolution ZA25-009 approving Cultural Heritage Permit 25-101, Wach Historic Residence Improvements, 217 Esplanade, subject to the Conditions of Approval.

C. Public Hearing Project (PHP)24-328; and Short Term Apartment Rental (STAR) 24-329, Wyatt STAR, 166 Avenida Aragon
A public hearing to request the Zoning Administrator to allow two short term apartment rental units within an existing duplex building with an existing accessory dwelling unit (ADU). Unit B and Unit C would be converted into short-term rentals for overnight accommodations of less than 30 days, and the ADU would be occupied by an on-site property manager.

The Zoning Administrator will also consider whether the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

Assistant Planner Mejia summarized the staff report that highlighted the following:
• The project is to establish short-term rentals at unit B and unit C, and one manager's unit at unit A.
• The property is a duplex with an ADU, and the two STAR units (B and C) would each be a 3-bed, 2-bath with an eight-person occupancy.
• The on-site property manager is required to be on-site 24/7 when the STARs are being operated.
• The site is in the residential medium zone, the coastal zone, and is located across from Max Berg Plaza Park, and a few houses down from St. Clément’s Church and Las Palmas School.
• The property went through a major remodel around 2021, with final permits in March 2024.
• There was a code complaint and enforcement case for driveway inconsistency with the building permit, but the case was closed in October 2024 after improvements were made.
• No other STARs would be allowed within a 300 ft radius.

Principal Planner Rehm discussed code definitions and interpretations with respect to STARs:
• There were two precedents for this STAR that staff reviewed: Two other multi-family dwelling units in the RM zone were allowed to have two STARs with an apartment manager on site.
• Code section interpretation: The code states a STAR must be located at least 300 ft from any other STAR or STLU.
• There is a question of whether the code intended to only have one STAR per property.
• The definition of a STAR in the code (§17.88) says "a unit or units is part of a STAR," implying that you can have more than one STAR on a property.

DRAFT
728
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 5 • Two Resolutions were provided to give the ZA the option to approve one instead of two STARs based on this interpretation or the code required findings to approve any STAR.

Assistant Planner Mejia introduced the applicant and owner, Will Wyatt at the conclusion of the staff report.

ZA Atamian opened the public hearing and asked Mr. Wyatt if he would like to make a presentation.

Mr. Wyatt gave a brief history of the property that was purchased in 2020 as a future empty nester home. The purchase and profitability strategy of three separate units that were located in a locally and federally designated “opportunity zone” meant they could tackle the renovation project in pieces.

Mr. Wyatt stated that in July 2024, a STAR permit application was formally submitted, and that they leased the rear ADU unit to a full-time on-site tenant/manager.

ZA Atamian thanked the applicant and opened the public comments:

Taran Rodriguez Colby, neighboring resident: Expressed privacy concerns due to the property facing into her backyard; nuisance of anonymous people coming in and out of the units; the lack of background checks on short-term renters and potential safety issues, especially given the proximity to the school and Max Berg Park; and parking issues, traffic congestion, and the safety of the community, especially concerning elderly residents, families, and children.

Adriana Lyon, neighboring resident: Expressed concerns for safety and adverse impact on the community, especially given the proximity to a school with many children walking in the area; allowing anonymous transient visitors increases risk and hurts community-building efforts to tackle issues like crime and gang activity in Max Berg Park; and the property is listed on Zillow for a 30-day rental as one unit for 10 guests at $16,000 per month, which is not permitted by the city.

John Lyons, neighboring resident: Expressed his concern that the City's STLU and STAR map defines tourist areas, and Max Berg Park is far from those areas; considers the proposal a harm to homebuyers who bought in the area knowing that Airbnbs would not be nearby; worries about the perpensity for noise, nuisance, and safety issues associated with short-term rentals; expressed concern of relying on an on-site property manager to deal with community issues; questioned the applicant's residency and the identity of the property manager, cited conflicting information on the Airbnb site.

Louisa “Lisa” Spinelli, neighboring resident: Expressed concerns about the lights on the property, noise, and the placement of garbage cans and air conditioner units; noted a conversation with the current renter who stated that she is not officially the property manager according to her lease; DRAFT
729
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 6 mentioned issues with parking and questioned the intended use of garage space for parking a car or a short-term rental; expressed opposition to the idea of people coming in and out all night and day.

Larry Culbertson, resident: Opposed the project due to under-parking and adverse impact on the residential neighborhood surrounding Plaza Park; questioned the number of parking spaces and the use of a space labeled as a garage being used as a living space; questioned the placement of the HVAC unit, which took away at least one parking space; argued that allowing two STAR units on one property goes against the intent of the municipal code, which requires a 300 ft distance between STAR/STLU units.

Juan Luna, neighboring resident: Echoed concerns about parking and the importance of investment in the neighborhood; argued that long-term residents are more invested in the neighborhood and its well-being; and highlighted the emotional and practical issues, including parking and the proximity to a school.

Susan Ambrose, neighboring resident: Expressed concerns about parking issues, especially near the playground and soccer field; congestion due to parents dropping off/picking up kids from school; parking restrictions on Max Berg Plaza Park: no parking daily from 10 PM to 6 AM; and stated that she is an organizer for the Neighborhood Watch Program.

ZA Atamian asked the applicant if he would like to respond to comments made by his neighbors. Mr. Wyatt stated the following:
• Lisa Spinelli’s concerns about lighting was addressed by replacing the light and adding automatic dimmers.
• Taran Colby’s fencing was repaired.
• The two units will be marketed as family units and will have a noise monitor in each unit with Ring® cameras on the outside. • The City set up “opportunity zones” and STAR zones to encourage outside investment.

ZA Atamian stated, or confirmed with staff/applicant the following:
• Confirmed by staff the guests are limited to eight per unit. • Confirmed by the applicant that the ADU tenant is contracted as the property manager the entire time short-term renters are on site. • Confirmed with staff that the code violations and non-compliance with City regulations have been rectified.
• Expressed concern with the applicant’s statement that the purchase of the property was partially predicated on the possibility of providing short-term rentals. ZA Atamian discussed the City’s enforcement process as it relates to STLUs and STARs, read pertinent sections of the City’s municipal code that provide for revocation of such permits, and indicated that the City has years of experience addressing problematic short-term rental properties, including the revocation of permits and licenses for these uses.

DRAFT
730
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 7 • Noted that a few of the issues raised by the neighbors have already been addressed by the applicant.
• Noted that the City receives complaints for long-term rental tenants and residents in multi-family properties as well as for short-term rentals, and the City has enforcement processes to deal with such tenancy issues.
• Noted that this is a unique part of town that draws in people from other parts of town. The school, church and park drive a lot of traffic to the area where there is limited parking opportunities. • Understands the need for safety and parking in this area, and that the Code and Conditions of Approval are designed to address the safety concerns and ensure these uses do not negatively impact residential neighborhoods.
• Expressed concerns in that the property was a legal non-conforming use, the change from long-term to short-term operations gives the City an opportunity to rectify the non-conforming issues. The lack of available parking is concerning. A few years ago, the City modified the parking requirements around the park to prohibit overnight parking. Staff has recently provided the City Council a report on parking program options for this area to be used by residents. If this should occur, the short-term renters would have to park on the property.
• Stated concern with two STAR units on the proposed property. • The Zoning Administrator indicated that he could not make the findings to support two STAR units on the property and presented the applicant with options:
o The ZA could approve only one STAR unit, Unit B, the bottom unit and replace the glass garage doors with a regular garage door. Unit A would be the manager’s unit and Unit C would be required to remain for long-term occupancy only. An
application for Unit C could be resubmitted for request to convert to a STAR unit in one-year; or
o Should the first option occur, the applicant would have an opportunity for further review by appealing the ZA’s decision to the City Council; or
o The ZA could refer the project to the Planning Commission for review of the applicant’s request for two STAR units. The Planning Commission would have the opportunity to approve no STAR units, one STAR unit, or two STAR units, and that decision would then be subject to appeal to the City Council for final determination if the outcome were not to their, or the public’s, satisifaction. This process could take several months.

The applicant expressed preference for approval at the subject hearing and committed to replacing the garage door with a roll up garage door.

There being no further questions of staff or the applicant, ZA Atamian closed the public hearing.

DRAFT
731
Minutes of the Zoning Administrator Regular Meeting April 17, 2025 Page 8 ZA Atamian determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines §15301 (Class 1: Existing Facilities).

Action: The Zoning Administrator adopted the alternate Resolution ZA25- 007 approving Short Term Apartment Rental 24-329, Wyatt STAR, 166 Avenida Aragon, subject to the Conditions of Approval with the following modifications to the Resolution and Conditions of Approval:
• New Resolution Title block: "A Resolution of the Zoning Administrator of the City of San Clemente, California approving Short Term Apartment Rental 24-329 to establish one short-term rental (unit B), one long-term rental (unit C), and one manager unit (unit A) located at 166 Avenida Aragon."
• Modify Resolution Section 3(B): “The site is suitable for the type of use that is proposed, but the intensity of the use must be reduced to one STAR unit to avoid adverse impacts to adjacent public uses, neighbors, and City resources, in that:”
• Add Resolution Section 3(C)(5): “The requested use has been reduced to allow for only one STAR (Unit B) on the property.” • Add Resolution Section 3(G): “The Zoning Administrator denies the Short Term Apartment Rental unit in Unit C, with prejudice.” • Modify COA 7.15: "One STAR in Unit B on the property is authorized on the site."
• Add COA 7.19: “The garage doors of Unit B shall be replaced with an automatic roll-up door prior to issuance of the Short Term Lodging Unit Operating License.”

5. NEW BUSINESS
None.

6. OLD BUSINESS
None.

7. ADJOURNMENT
The meeting adjourned at 4:45 p.m. to a Regular Meeting of the Zoning Administrator, which will be held Thursday, May 8, 2025 at 3:00 p.m. at Community Development Department, City Hall, First Floor Community Room, located at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,

SAN CLEMENTE ZONING ADMINISTRATOR
_____________________________________
Adam Atamian, Zoning Administrator
DRAFT
732
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: May 6, 2025 Agenda Item: (1)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer No.
3226 and Warrant Nos.
603880 through 604020, paid on
4-11-25, in the amount of $3,886,911.08
..end
733
734
735
736
737
738
739
740
741
742
743
744
745
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: May 6, 2025 Agenda Item: (2)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3227 through 3232 and Warrant Nos.
604021 through 604267, paid on
4-18-25, in the amount of $1,636,316.88
TOTAL WARRANT REGISTER $5,523,227.96 ..end
746
747
748
749
750
751
752
753
754
755
756
757
758
759
760
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: May 6, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Automatic Deposit Advises
102286 through 102631, for the period
3-31-25 through 4-13-25, paid
on 4-18-25, in the amount of $531,663.24
TOTAL PAYROLL REGISTER $531,663.24 ..end
761
762
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: May 6, 2025 Agenda Item: 10D.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e

CONSIDERATION OF A RESOLUTION ACCEPTING A DONATION FROM PIERPRIDE

FOUNDATION, APPROVING THE REPLACEMENT OF THE MUNICIPAL PIER TOP RAIL

MATERIAL, APPROVING A ONE-TIME EXPENSE AND FINDING THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body
Fiscal Impact:

The total project cost, including installation and materials, is estimated at $80,000. Currently, the Maintenances Services Division allocates $25,000 to paint the pier every two years. PierPride Foundation has committed to contributing $20,000 towards the total cost. The remaining $60,000 will be funded from the current general pier maintenance budget (001-636-45700-000-24102), with a current fund balance of $73,540.

Summary:

Staff recommends the City Council approve the replacement of the existing wood top railing on the municipal pier with a composite material. The proposed material would be identical in color and size to the existing railing. This change would eliminate the need for biannual repainting, and the anticipated lifespan of the composite railing is a minimum of 10 years, with many installations lasting longer.

Background:

Currently, the pier’s top rail is constructed of wood, which requires frequent maintenance due to weather exposure, paint degradation, and general wear. Over time, repainting and repairs have become a recurring challenge, increasing long-term maintenance costs and staff labor. The images below demonstrate current conditions with the railing being painted on August 30, 2024. 763
Meeting Date: May 6, 2025 Agenda Item: 10D.

CITY OF SAN CLEMENTE 2
In light of ongoing maintenance costs and a desire to enhance the longevity of the pier's infrastructure, a proposal has been made to replace the wooden railing with a composite material.

Composite materials offer a durable, low-maintenance alternative that does not require regular repainting or refinishing. These materials are resistant to saltwater, weathering, and UV exposure, making them an ideal solution for the coastal environment.

A similar product is currently in use at the Cayucos Pier, where it has received positive feedback regarding its resilience and aesthetic appeal. The image below represents current conditions, with the railing being installed in 2015.

The Beaches, Parks & Recreation Commission considered the proposed project at its February 11, 2025 meeting and recommended that the City Council approve the project as presented.

Council Options:
 Adopt Resolution No. 25-49, which will approve the replacement of the wooden pier railing with composite material, authorize the one-time use of funds from Capital Improvement Project No. 24102, General Pier Repairs, accept a $20,000 donation from the PierPride Foundation to be dedicated towards the project, and find the project exempt from the California Environmental Quality Act under Class 2 (Replacement or Reconstruction, 14 CCR §15302) of the state CEQA Guidelines.
 Amend and adopt the Resolution.
 Provide alternate direction to staff.
 Take no action.
764
Meeting Date: May 6, 2025 Agenda Item: 10D.

CITY OF SAN CLEMENTE 3
Environmental Review/Analysis:

The proposed replacement of the wooden pier railing with composite material is categorically exempt under the California Environmental Quality Act (CEQA). Specifically, it qualifies for exemption under CEQA Guideline Section 15302 (Class 2, 14 CCR §15302), which pertains to the replacement or reconstruction of existing structures and facilities where the new construction will be located on the same site and will have the same purpose and capacity as the existing structure.

This project involves the replacement of an existing railing with a new, functionally similar material and does not involve significant environmental impacts. As such, it is categorically exempt from further environmental review under CEQA.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-49, which will:

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

2. Approve the replacement of the wooden pier railing with composite material;

3. Authorize the one-time use of funds from Capital Improvement Project No. 24102, General Pier Maintenance; and

4. Accept a $20,000 donation from the PierPride Foundation to be dedicated towards the project. ..end
Attachment:

1. Resolution No. 25-49
Notification:

PierPride Foundation
765
Attachment 1
RESOLUTION NO. 25-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

REPLACEMENT OF THE MUNICIPAL PIER TOP RAILING

WITH COMPOSITE MATERIAL, FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT UNDER CLASS 2
(REPLACEMENT OR RECONSTRUCTION, 14 CCR §15302)
SECTION 15302 OF THE CEQA GUIDELINES, ACCEPTING
A DONATION OF $20,000 FROM THE PIERPRIDE

FOUNDATION IN SUPPORT OF THE PROJECT AND

APPROVING A ONE TIME EXPENSE
WHEREAS, the San Clemente Municipal Pier is an iconic structure that serves as a central point for community engagement, tourism, and local recreation, and requires periodic maintenance to ensure its continued safety, functionality, and aesthetics; and WHEREAS, the top railing of the San Clemente Municipal Pier is currently made of wood, a material that requires frequent maintenance, and has a limited lifespan with frequent maintenance, which is costly and resource-intensive, impacting the overall budget allocated for pier maintenance; and
WHEREAS, the composite material has been identified as a durable, lowmaintenance alternative that would eliminate the need for periodic painting and refinishing, and offer a minimum lifespan of 10 years, potentially lasting longer, providing a more costeffective solution for the City; and WHEREAS, replacing the railing with composite material will significantly reduce long-term maintenance costs and improve the overall condition of the pier.

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

Section 1. Based on a review of the record as a whole, the City Council finds that the project is categorically exempt from California Environmental Quality Act review under Class 2, Section 15302 (14 CCR §15302), Replacement or Reconstruction, of the CEQA Guidelines because the project involves the replacement of an existing railing with a new, functionally similar material and does not involve significant environmental impacts.

Section 2. The City Council hereby approves the replacement of the wooden top railing of the San Clemente Municipal Pier with composite material at an estimated cost of $80,000, as outlined in the administrative report dated April 15, 2025.

Section 3. The City Council acknowledges and accepts the generous donation of $20,000 from the PierPride Foundation toward the project, expressing its gratitude for this donation and continued support of the pier’s ongoing infrastructure needs. The City Council further approves a one-time expense from the General Pier Maintenance (PN 24102) to 766
Resolution No. 25-49 Page 2
fund the remaining cost of the project.

Section 4. The Beaches, Parks & Recreation Director is hereby authorized and directed to proceed with all the necessary steps to replace the railing, including the preparation and execution of all relevant contracts, agreements and procedures to complete the project, and to accomplish the purposes of this resolution.

Section 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California 767
Resolution No. 25-49 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-49 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
768
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: May 6, 2025 Agenda Item: 10E.

Submitted By: City Treasurer
Prepared By: Charlie Smith, City Treasurer
Brian Brower, Assistant City Manager
Subject:
..titl e
ADOPTION OF CITY INVESTMENT POLICY ..body
Fiscal Impact:

None.

Summary:

The City’s Investment Policy was adopted on January 27, 2025 and has been reviewed by the Investment Advisory Committee (IAC) in accordance with Section 5.6 of the policy. The policy, with no proposed recommended changes, is submitted to City Council for approval, as is required on an annual basis.

Background:

Government Code Section 53646(a)(2) allows the City Treasurer to annually submit to the City Council and any oversight committee a statement of investment policy, which shall be considered by the City Council at a public meeting. After review of the current Investment Policy by Investment Advisory Committee members, City Treasurer Charlie Smith, and the City’s external investment advisory firm, the IAC voted 5-0 to recommend that no further changes be made to the Investment Policy that was adopted on January 27, 2025.

Council Options:
 Adopt Investment Policy Number 202-1, which would be effective beginning January 27, 2025.
 Adopt Investment Policy Number 202-1, with modifications.  Continue the item with direction to provide additional information.

Environmental Review/Analysis:

Not a “project” pursuant to the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Investment Policy Number 202-1, effective January 27, 2025.
..end
769
Meeting Date: May 6, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE 2
Attachment:

1. Proposed Investment Policy
Notification:

None.
770
Attachment 1
Table of Contents
Section Page

1.0 Purpose.................................................................................................................. 1

2.0 Organizations Affected .........................................................................................1

3.0 References.............................................................................................................1

4.0 Policy......................................................................................................................1

4.1 Scope ........................................................................................................1

4.2 Objective..................................................................................................... 2

4.3 Prudence .................................................................................................... 3

4.4 Delegation of Authority................................................................................ 3

4.5 Ethics and Conflict of Interest..................................................................... 4

4.6 Authorized Financial Dealers and Institutions ............................................. 4

4.7 Authorized and Suitable Investments.......................................................... 5

4.8 Safekeeping & Collateralization .................................................................. 8

4.9 Safekeeping & Custody ..............................................................................9

4.10 Diversification and Maturity Limitations ....................................................9

4.11 Marking to Market.................................................................................. 11

4.12 Pools...................................................................................................... 11

5.0 Procedure………………………………………………………………………………...11

5.1 Internal Control .......................................................................................... 11

5.2 Performance Standards............................................................................. 11

5.3 Competitive Bids ........................................................................................ 12

5.4 Reporting ................................................................................................... 12

5.5 Investment Advisory Committee................................................................. 12

5.6 Investment Policy Adoption........................................................................ 13

5.7 Investment Policy Distribution .................................................................... 13

6.0 Definitions............................................................................................................ 13 Management Directive to External Money Manager.................................................18 California Government Code..................................................................................... 20 City of San Clemente-Broker/Dealer Questionnaire ................................................ 34 771

Page 2 ends

POLICY AND PROCEDURE
Subject: Investment Policy Index: Treasurer
Number: 202-1
EffectiveDate: February 20, 2024
January 27, 2025
Prepared By: Finance and
Administrative
Services/City Treasurer
Supersedes: December 5, 2023
February 20, 2024
Approved
By:

1.0 PURPOSE: The purpose of the City's Investment Policy is to provide comprehensive guidelines for the responsible management of the City's funds that are available for investment. These may include, but are not limited to, temporarily idle cash, reserve funds, trust, agency, and capital funds.

2.0 ORGANIZATIONS AFFECTED:

All departments/divisions

3.0 REFERENCES:

3.1 Civil Code Section 2261, et seq.

3.2 Government Code Section 53600, et seq.

3.3 Code of Ethics Policy, Administrative Policy #102-1

4.0 POLICY: It is the policy of the City of San Clemente ("the City") to invest public funds in a manner which will provide the maximum security of principal consistent with a market rate of return while meeting the cash flow needs of the City and conforming to all applicable State and City statutes governing the investment of public funds, as referenced in section 3.0. Every effort will be made to match investment maturities to cash flow needs.

4.1 SCOPE: This investment policy applies to all financial assets of the City. These funds are accounted for in the City of San Clemente's Comprehensive Annual Annual Comprehensive Financial Report and include:

4.1.1 FUNDS:

4.1.1.1 General Funds

4.1.1.2 Special Revenue Funds

4.1.1.3 Capital Project Funds
772

Page 3 ends

4.1.1.4 Enterprise Funds

4.1.1.5 Internal Services Funds

4.1.1.6 Trust and Agency Funds

4.1.1.7 Debt Service Funds

4.1.1.8 Redevelopment Agency Funds

4.1.1.9 Any new fund created by the City Council

4.1.2 BOND PROCEEDS: The investment of bond proceeds will be made in accordance with applicable bond indentures.

4.2 OBJECTIVE: The primary objectives, in priority order, of the City of San Clemente's investment activities shall be:

4.2.1 Safety: Safety of principal is the foremost objective of the City.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

4.2.1.1 Credit Risk: Credit Risk is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by:

4.2.1.1.1 Limiting investments authorized by this Policy by maturity and credit ratings.

4.2.1.1.2 Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City will do business; and

4.2.1.1.3 Diversifying the investment portfolio so that potential losses on portfolio securities will be minimized.

4.2.2.1 Interest Rate Risk: Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by:

4.2.2.1.1 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing
operations, thereby avoiding the need to sell securities on the open market prior to maturity, and

4.2.2.1.2 By investing operating funds primarily in shorter- term securities.

4.2.2 Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

4.2.3 Return on investment: The City's investment portfolio shall be designed with the objective of attaining a market rate of return 773

Page 4 ends

throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio.

4.3 Prudence: Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
"...all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency.

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

4.4 Delegation of Authority: The City Council, by adoption of this Investment Policy, delegates investment authority to the City Treasurer.

In accordance with Government Code Section 53607, investment authority may be delegated for a one-year period by the City Council. In accordance with Government Code Section 53607, investment authority may be revoked by the City Council before that one year period is over.

4.4.1 External Investment Advisor: The City Treasurer may review and evaluate the services of registered external investment advisors to manage all or a part of the City's investment portfolio.

Investment advisors shall make all investment decisions in accordance with State law and the City's investment policy.

Selection of broker/dealers used by an external investment advisor retained by the City will be at the discretion of the investment advisor, unless the City Council, under advisement of the Investment Advisory Committee determines one or more of the broker/dealers being used to be unsuitable for any reason.

4.4.1.1 Selection of External Investment Advisor: The
Investment Advisory Committee shall, after review of
external investment advisors qualifications, recommend to the City Council the selection of one or more firms to
774

Page 5 ends

manage City investments, or recommend the replacement
of an existing firm.

4.4.2 The City Treasurer, with approval by the Finance & Administrative Services Director, shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures will include reference to safekeeping, Public Securities Association (PSA) Master Repurchase Agreements, wire transfer agreements, collateral and deposit agreements, banking service contracts, broker/dealer questionnaire and certification, and other investment related activities.

4.4.3 No person may engage in an investment transaction except as provided under terms of this Policy and the procedures established herein.

4.4.4 The City Treasurer with approval by the Finance & Administrative Services Director shall establish a system of controls to regulate the investment activities of subordinate officials.

4.4.5 The Finance & Administrative Services Director or his/her designee, is designated as the acting investment officer of the City when the primary investment officer is unavailable.

4.5 Ethics and Conflicts of Interest: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

4.5.1 Officers and employees involved in the investment process shall abide by the City's adopted Code of Ethics policy, which by reference is incorporated into this Policy.

4.6 Authorized Securities Dealers: The City Treasurer will maintain a list of securities dealers ("Securities Dealers"), as approved either by the Investment Advisory Committee, or subject to the Automatic Inclusion Criteria.

A Securities Dealer must either: (i) complete a Broker / Dealer Questionnaire and Certification at relationship initiation and provide annual confirmation of no material change in financial condition or broker's standing, or (ii) be subject to the Automatic Inclusion Criteria. For a Securities Dealer subject to the Automatic Inclusion Criteria, the following must be ascertained annually: (i) an audited annual report ("Form 10-K"), and (ii) a review of the designated broker as provided by FINRA. 775

Page 6 ends

4.5.2 Annual Review: An annual review of the financial condition and registrations of the Securities Dealers with whom the City does business which will be conducted by the City's Investment Advisory Committee.

4.5.3 Audited Financial Statement: A current audited financial statement is required to be on file in the City Clerk's Office for each financial institution and Securities Dealer with whom the City does business, including external money managers, banks, custodians of securities and broker/dealers.

4.5.4 Counterparty Risk: Financial institutions with whom the city does business should be well capitalized and credit worthy to minimize Counterparty Risk. For avoidance of doubt, the City takes on no specific Counterparty Risk given its delivery vs. payment investment policy.

4.6 Authorized and Suitable Investments:

4.6.1 Authorized Investments: In accordance with State law, investments may be made in the following media (California Government Code Section 16429.1, 53600-53609 and 53630- - Exhibit attached): The City seeks to further restrict eligible investments to the guidelines listed below. In the event an apparent discrepancy is found between this Policy and the Government Code, the most restrictive parameters will take precedence. Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.

Any investment currently held at the time the Policy is adopted which does not meet the new Policy guidelines can be held until maturity, and shall be exempt from the new Policy. At the time of the investment's maturity or liquidation such funds shall be reinvested only as provided in the most current Policy.

4.6.1.1 U.S. Treasury Securities or

4.6.1.2 Federal Agency Securities

4.7.1.1.1 Federal Home Loan Bank (FHLB)

4.7.1.1.2 Federal National Mortgage Association
(FNMA)

4.7.1.1.3 Federal Home Loan Mortgage Corporation
(FHLMC)
776

Page 7 ends

4.7.1.1.4 Federal Farm Credit Bank (FFCB)

4.7.1.1.5 Tennessee Valley Authority (TVA)

4.6.1.3 Collateralized or insured Passbook Savings Accounts & Demand Deposits.

4.6.1.4 Collateralized or insured Certificates of Deposits (or Time Deposits) placed with commercial banks and/or
savings and loan companies.

4.6.1.5 Bankers Acceptances with banks whose short term obligations are rated A-1/P-1 or higher, or the
equivalent, by at least one nationally recognized
statistical rating organization (NRSRO). Banks may not
be on "negative credit watch" by any NRSRO.

Maturities may not exceed 180 days.

4.6.1.6 Commercial Paper purchases may not exceed 270
days maturity nor represent more than 10% of the
outstanding paper of an issuing corporation.

Investments in any single issuer shall not exceed 5%
of the total portfolio market issued by institutions
whose short term obligations are rated "A-1/P-1" or
higher, or the equivalent, by at least one NRSRO; and
whose long-term obligations, if any, are rated "A2/A" or higher by at least one NRSRO. They must be issued
by a corporation organized and operating within the
United States with more than $500 million in total
assets; or issued by an issuer organized within the
United States as a special purpose corporation, trust,
or limited liability company with programwide credit
enhancement including, but not limited
to, overcollateralization, letters of credit, or a surety bond.

4.6.1.7 Corporate Debentures (including Medium Term Notes issued by corporations organized and operating in the
U.S.). Investments in any single issuer, when
combined with any investments in negotiable
certificates of deposit, shall not exceed 3% of the total portfolio market value. Corporate issues purchased by
an investment advisor hired by the City for their credit evaluation process must be rated at least in the "A"
category or equivalent by at least one NRSRO at the
time of purchase. Corporate issues purchased by the
Treasurer must be rated as follows:
777

Page 8 ends

4.6.1.7.1 For maturities of three years or less in the
"A2/A" category or higher at time of
purchase.

4.6.1.7.2 For maturities of greater than three years
to five years in the "Aa3/AA-" category or
higher at time of purchase.

4.6.1.8 Repurchase agreements whose underlying
collateral consists of the foregoing, provided a signed PSA Master Repurchase Agreement is on file with the
counterpart bank or broker/dealer. Direct investments in Reverse Repurchase agreements are prohibited.

4.6.1.9 Local Agency Investment Fund (State of California Pool).Money market mutual funds whose portfolio
consists of investments listed in Section 4.7.1. Money
market mutual funds must be AAA rated by at least 2 of
the 3 largest rating agencies.

4.6.1.10 Asset-Backed Securities where the securities are rated "AA" or higher by a NRSRO. The maximum legal final
maturity may not exceed five (5) years.

4.6.1.11 Negotiable Certificates of Deposit (NCDs issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank). Purchases of eligible NCDs in any single issuer, when combined with any investments in corporate
debentures, shall not exceed 3% of the total portfolio
market value. NCO issues purchased in an amount
above the FDIC insured limit must be rated in the "A2/A" category or higher by at least one NRSRO; or have
short term debt obligations rated "A-1/P-1" or higher, or the equivalent, by at least one NRSRO. The maturities
of NCDs may not exceed 5 years, if the amount is within the FDIC insured limit. When purchased in the City's
internally managed portfolio the issuer must have an
IDC ranking of "Excellent" or higher at time of purchase.

4.6.1.12 Orange County Investment Pool (OCIP).

4.6.1.13 Supranational Securities, provided that the
securities are US-dollar denominated senior unsecured
778

Page 9 ends

obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and
Development, International Finance Corporation, or
Inter-American Development Bank, and are rated in the
"AA" category or higher by a NRSRO. No more than 5%
of the portfolio may be invested in a single issuer.

4.6.2 Bank Savings Accounts and Certificates of Deposit: No funds will be invested in an institution which has at the time the deposit or investment is made, a regulatory capital rating of less than "adequately capitalized."

4.6.3 Prohibited Investment Vehicles and Practices:

4.6.3.1 State law notwithstanding, any investments not
specifically described herein are prohibited, including, but not limited to futures and options.

4.6.3.2 In accordance with Government Code Section
53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.

4.6.3.3 Investment in any security not issued or backed by the US government that could result in a zero interest
accrual if held to maturity is prohibited.

4.6.3.4 Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

4.6.3.5 Purchasing or selling securities on margin is prohibited.

4.6.3.6 The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is
prohibited.

4.6.3.7 The purchase of foreign currency denominated
securities is prohibited.

4.6.4 Pool Investments: With the exception of Local Agency Investment Fund (LAIF), a thorough investigation of the pool fund is required prior to investing, and on an annual basis. This investigation will address and document the following items:

4.6.4.1 A description of eligible investment securities, and a written statement of investment policy and objectives.

4.6.4.2 A description of interest calculations and how it is 779

Page 10 ends

distributed, how gains and losses are treated, and
the fees charged

4.6.5 Credit Rating Downgrade: In the event that an issue is later downgraded to a level below the quality required for purchase by this investment policy, the Treasurer will assess the risk exposure to the City and will make a decision regarding course of action and will advise the Investment Advisory Committee accordingly. If a security purchased by an external investment advisor is downgraded below the requirements of this policy, making the security ineligible for additional purchases, any actions taken by the external investment advisor will be communicated to the Treasurer in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the Investment Advisory Committee.

4.7 Safekeeping & Collateralization:

4.7.1 Repurchase Agreements: Collateral is required for all repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be a minimum of 102% of market value of principal and accrued interest. Collateral will always be held by an
independent third party with whom the City has a current custodial agreement. The independent third party custodian must be a major financial institution, with at least $5 billion in assets plus a long term rating of A or better. The third party custodian shall be required to issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. The right of collateral substitution is granted for repurchase agreements.

Collateral securities shall be equal in quality and may only consist of Those securities listed as authorized investments in sections

4.7.1.1 Through 4.7.1.5.

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

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

4.8 Safekeeping & Custody: All security transactions, including collateral for repurchase agreements, certificates of deposit, demand deposits, and time deposits entered into by the City shall be conducted on a 780

Page 11 ends

delivery-versus- payment (DVP) basis. Securities will be held by a third party qualified custodian designated by the City and will be evidenced by safekeeping receipts. Certificates of Deposit will be held in the City's vault.

4.9 Diversification and Maturity Limitations:

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

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

U.S. Treasury 100%
U.S. Agency 75%
Collateralized or insured Passbook
Savings & Demand Deposits
30%
Collateralized or insured
Certificates of Deposits
30%
Negotiable Certificates of Deposits
(NCDs)
20%
Bankers Acceptances 30%
Commercial Paper 15%
Corporate Debentures
(Including Medium Term Notes
and Bank Notes)
20%
Repurchase Agreements 30%
Local Agency Investment Fund
(LAIF) (but not to exceed $ 75
million)
50%
Money Market Mutual Funds 20%
Asset-Backed Securities 10%
Supranational Securities 10%
Orange County Investment Pool 10%
No more than 30% of the total portfolio may be invested in any one Federal Agency issuer.

The combined exposure in callable U.S. Agency securities shall not exceed 20% of the total market value of the
portfolio.
781

Page 12 ends

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

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

4.9.1.1.1 US Treasury and Agency securities

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

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

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

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

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

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

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

5.0 PROCEDURE:
782

Page 13 ends

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

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

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

The investment portfolio shall be designed to attain a total return commensurate with the risk constraints outlined by the City's Investment Policy. The benchmark for the City's portfolio are:
• BofA Merrill Lynch 1-3 Year US Treasury & Agency
Index (primary)
• BofA Merrill Lynch AAA-A Corporate & Government
Index (reference)
It is understood that the portfolio's total return can and will differ from the index through different market cycles as the investment portfolio's priority is to meet the liquidity needs of the City.

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

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

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

5.4.1 Investment type, issuer, date of maturity, par value and dollar 783

Page 14 ends

amount invested in all securities, and investments and monies held by the City;

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

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

5.4.4 Monthly transactions for the period; and

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

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

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

5.5.1 Members (Voting):

5.5.1.1 City Treasurer (Chair)

5.5.1.2 Council member representative

5.5.1.3 Two citizen representatives

5.5.1.4 One Industry Specialist
Three (3) voting members will constitute a quorum.

5.5.2 Staff (Non-Voting):

5.5.2.1 Finance & Administrative Services Director or designee (Staff)

5.5.3 Role:

5.5.3.1 To review and recommend City investment policies

5.5.3.2 To review the investment portfolio and practices for performance and conformance to adopted policies and
procedures.

5.5.4 Meetings:

5.5.4.1 The Investment Advisory Committee shall meet no less than quarterly.

5.5.5 Reports:
784

Page 15 ends

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

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

5.7 Investment Policy Distribution: A copy of the City's adopted investment policy will be distributed to the Investment Advisory Committee, City Treasurer, Deputy Administration Finance & Administrative Services Director, brokers, financial auditors, primary bank, and City Attorney. A copy will be posted on the City's web site and be on file in the City Clerk's office. 785

Page 17 ends

6.0 DEFINITIONS

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

6.2 AGENCIES: Federal agency securities.

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

6.4 AUTOMATIC INCLUSION CRITERIA: means a Bank with a securities dealer subsidiary, classified as either a Systematically Important Financial Institution ("SIFI"), and/or a Globally Systemically Important Financial Institution ("G-SIFI").

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

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

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

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

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

6.10 COMMERCIAL PAPER: An unsecured promissory note with a fixed maturity of no more than 270 days. Commercial paper is normally sold at a discount from face value.
786

Page 18 ends

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

6.12 COUNTERPARTY: One of the counterparts (participants) in a financial transaction.

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

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

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

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

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

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

6.19 DURATION: A measure of the timing of the cash flows to be received from a security that provides the foundation for a measure of the interest rate sensitivity of a bond. Duration is an elasticity measure and represents the percentage change in price divided by the percentage change in interest rates. A high duration measure indicates that for a given level of movement in interest rates, prices of securities will vary considerably.
787

Page 19 ends

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

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

6.22 FINRA: Financial Industry Regulation Authority

6.23 FORM 10-K: an SEC form, filed annually as required by the U.S.

Securities and Exchange Commission, that gives a comprehensive summary of a company's financial performance.

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

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

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

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

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

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

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

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

6.1 MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
788

Page 20 ends

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

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

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

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

6.5 NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): is a credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission permits other financial firmsto use for certain regulatory purposes.

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

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

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

6.9 PORTFOLIO: Collection of securities held by an investor.

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

6.11 PRIMARY DEALER: A group of government securities dealers that submit 789

Page 21 ends

daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

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

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

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

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

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

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

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

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

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

6.21 TREASURY BOND: Long-term U. S. Treasury securities having initial maturities of more than ten years.
790

Page 22 ends

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

6.23 UNDERCAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC's amended assessment regulation. Neither Well Capitalized nor Adequately Capitalized.

6.24 UNQUALIFIED OPINION: An independent external auditor report that concludes the company's financial statements present fairly, or give a true and fair view, in all material respects and in accordance with applicable accounting standards.!

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

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

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

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

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

Along with selecting a strategy we also discussed additional clarifying items in the City's investment policy:

Section 4.10.1.2.1 - Chandler will maintain an allocation of at least 25% to securities that mature less than 2 years. Inclusive of the Chandler portfolio and the City's internally managed portfolio's allocation to liquidity vehicles and shorter maturity securities, the entire portfolio will maintain 50% of its securities maturing in less than 2 years.
791

Page 23 ends

• Although the investment policy states the benchmark for the City's entire portfolio is the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index, starting October 1, 2019 the Chandler managed portfolio will use the ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index to compare both portfolio performance and characteristics. • Starting October 1, 2019, the City's internally managed portfolio will use the ICE Bank of America Merrill Lynch US 1-Year Treasury Bill to compare both portfolio performance and characteristics.

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

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

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

CALIFORNIA GOVERNMENT CODE
California Government Code
792

Page 24 ends

Sections 16429.1, 53600-53610, 53630
(a) There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund.
(b) Notwithstanding any other law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(c) Notwithstanding any other law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi-governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(d) Notwithstanding any other law or provision of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds. (e) The local governmental unit, the nonprofit corporation, or the quasi-governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer.
(f) The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer.
(g) The Local Investment Advisory Board shall determine those quasi-governmental agencies which qualify to participate in the Local Agency Investment Fund. (h) The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state's portfolio. (i) The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3.

U) Money in the fund shall be invested to achieve the objective of the fund which is to 793

Page 25 ends

realize the maximum return consistent with safe and prudent treasury management. (k) All instruments of title of all investments of the fund shall remain in the Treasurer's vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank.
(I) Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi-governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of 5 percent of the earnings of this fund and not to exceed the amount appropriated in the annual Budget Act for this function, shall be deducted from the earnings prior to distribution. However, if the 13-week Daily Treasury Bill Rate, as published by the United States Department of the Treasury on the last day of the state's fiscal year is below 1 percent, then the above-noted reasonable costs shall not exceed a maximum of 8 percent of the earnings of this fund for the subsequent fiscal year, shall not exceed the amount appropriated in the annual Budget Act for this function, and shall be deducted from the earnings prior to distribution. The amount of the deduction shall be credited as reimbursements to the state agencies, including the Treasurer, the Controller, and the Department of Finance, having incurred costs in carrying out the provisions of this section. (m) The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month.
(n) As used in this section, "local agency," "local governmental unit," and "local governmental official" includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721, 89722, and 89725 of the Education Code.
53600. As used in this article, "local agency" means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.
53600.3. Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the 794

Page 26 ends

circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

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

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

The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery.

For purposes of this section, "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:
795

Page 25 ends

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

This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code). (h) Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. 796

Page 25 ends

(B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO.
(2) The entity meets the following criteria:
797

Page 26 ends

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

Eligible commercial paper shall have a maximum maturity of 270 days or less.

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

U) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section.
(2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. (3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
798

Page 26 ends

(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale.
799

Page 27 ends

(B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio.
(C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
(4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state- chartered bank that has or has had a significant banking relationship with a local agency.
(B) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank:
(i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities.
(iii) eptance of a local agency's securities or funds as deposits. (5) (A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third- party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book-entry account may be used for book-entry delivery.
(B) "Securities," for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. (D)) "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the 800

Page 27 ends

collateral.
(E) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way
801

Page 28 ends

of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.
(k) Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated "A" or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
(I) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions
(m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily.
(2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
802

Page 29 ends

(5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1).
(m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.
(n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
(o) A mortgage passthrough security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivablebacked bond of a maximum of five years' maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by an NRSRO and rated in a rating category of "AA" or its equivalent or better by an NRSRO. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency's surplus moneys that may be invested pursuant to this section.
(p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions
(a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million 803

Page 30 ends

dollars ($500,000,000).
(q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and
804

Page 31 ends

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

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

The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank. (a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgagederived, interest-only strips. (b) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (I) of Section 53601.

Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:
(a) The local agency shall choose a nationally or state chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose. (c) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring both of the following:
805
(1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable.
(d) The selected depository institution shall serve as a custodian for each such deposit.
(e) On the same date that the local agency's funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b). (f) Notwithstanding subdivisions (a) to (e), inclusive, a credit union shall not act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section.
(h) The deposits placed pursuant to this section and Section shall not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose.
(i) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds may, at its discretion, invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, provided that the purchases of certificates of deposit pursuant to this section, Section 53635.8, and subdivision (i) of Section 53601 do not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose. The following conditions shall apply:
(a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may submit the funds to a private sector entity that assists in the placement of certificates of deposit with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States for the local agency's account. The full amount 806 of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (c) The selected depository institution shall serve as a custodian for each certificate of deposit that is issued with the placement service for the local agency's account. (d) At the same time the local agency's funds are deposited and the certificates of deposit are issued, the selected depository institution shall receive an amount of deposits from other commercial banks, savings banks, savings and loan associations, or credit unions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution for investment.
(e)Notwithstanding subdivisions (a) to (e), inclusive, no credit union may act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more certificate of deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (f) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (g) This section shall become operative on January 1, 2021. 53602. The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a fourfifths vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. 53603. The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued. 53604. The legislative body may sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased.
53605. From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency.
53606. The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled.

While held uncanceled, the bonds may be resold.
53607. The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a oneyear period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those 807 transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year. • 53608. The legislative body of a local agency may deposit for safekeeping with a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited.

The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer. 53609. Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency's employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested in the types of investments set forth in Sections 53601 and 53602 of this code, and may additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property.

Nothing herein shall be construed to permit any type of investment prohibited by the Constitution.

Deferred compensation funds are public pension or retirement funds for the purposes of Section 17 of Article XVI of the Constitution. 5361O. (a) For purposes of this section, "Proposition 1A receivable" means the right to payment of moneys due or to become due to a local agency, pursuant to clause (iii) of subparagraph (B) of paragraph
(1) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the Revenue and Taxation Code.
(b) Notwithstanding any other law, a local agency may purchase, with its revenue, Proposition 1A receivables sold pursuant to Section
53999.
(c) A purchaser of Proposition 1A receivables pursuant to this section shall not offer them for sale pursuant to Section 6588.
53630. As used in this article:
(a) "Local agency" means county, city, city and county, including a chartered city or county, a community college district, or other public agency or corporation in this state. (b) "Treasurer" means treasurer of the local agency.
(c) "Depository" means a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited. 808 (d) "Agent of depository" means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657. (e) "Security" means any of the eligible securities or obligations listed inSection 53651. (f) "Pooled securities" means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies. (g) "Administrator" means the Administrator of Local Agency Security of the State of California.
(h) "Savings association or federal association" means a savings association, savings and loan association, or savings bank as defined by Section 5102 of the Financial Code. (i) "Federally insured industrial loan company" means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation.

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

Broker/Dealer Questionnaire
809

CITY OF SAN CLEMENTE, CALIFORNIA

BROKER/DEALERQUESTIONNAIRE
Date: _________________________
Firm Name: _________________________________________________ CRDNumber: ________________________________________________ Local office servicing account: _______________________________________________ Address: ________________________________________________ Phone: ________________________________________________ Corporate office: ________________________________________________ Address: ________________________________________________ Phone: ________________________________________________ Primary Representative: ________________________________________________ Please attach resumes of primary and secondary representatives covering this account.

Telephone: ________________________________________________ Fax: ________________________________________________
E-Mail: ________________________________________________ CRDNumber: __________________________________________________ Secondary Representative or sales assistant: __________________________ Telephone: ________________________________________________ Fax: ________________________________________________
E-Mail: ________________________________________________ CRDNumber: __________________________________________________ 810

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

Telephone:

Fax:

E-Mail:

CRD Number:

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

Entity name, contact and phone number.

1. 2.

3. What are the market sectors in which your firm specializes? Please feel free to provide additional information regarding your firm's involvement in these sectors.

Us Treasuries US Agencies
___________________________
MBS
CP/BA
Corporate
CD's
Other
811
Page - 1 -

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

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

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

CITY OF SAN CLEMENTE, CALIFORNIA
812
Page - 2 -
BROKER/DEALER QUESTIONNAIRE- Page 4
Firm Name:

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

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

Qualified Representative(s) of the Firm
Signed: ____________________________
Name: ____________________________
Title: _____________________________
Date: _____________________________
813
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: May 6, 2025 Agenda Item: 10F.

Submitted By: Public Works
Prepared By: Dustin Burnside, Utilities Manager
Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO ACCEPT AND FILE A NOTICE OF COMPLETION

FOR THE WATER RECLAMATION PLANT (WRP) SODIUM HYPOCHLORITE TANK REPLACEMENT, CIP PROJECT NO. 23405 ..body
Fiscal Impact:

The total construction cost of $440,531 is under the approved project budget of $484,825 from the Water Fund Depreciation Reserve, Account No. 052-466-43420-000-23405.

Summary:

Before the City Council is a Resolution (Attachment 1) and Notice of Completion (Attachment 2) for the WRP Sodium Hypochlorite Tank Replacement project. These tanks are used to store Sodium Hypochlorite liquid with a concentration of 12.5% for recycled water tertiary treatment prior to distribution to City customers. The existing tank was at the end of its useful. It was replaced with two new tanks to ensure adequate and safe delivery of Sodium Hypochlorite liquid for the current demands at the WRP.

Background:

On October 18, 2022, the City Council awarded a construction contract to Jennette Company, Inc. for the WRP Sodium Hypochlorite Tank Replacement (Attachment 3). The existing tank was leaking despite several repair attempts and no longer had the capacity to meet the current WRP demands. The improvements consisted of replacing the existing tank with two new tanks, including a new foundation, piping, valves, liquid level indicators, and a new containment wall constructed around both tanks to prevent any chemical spills onto the surrounding area in the event of an accident.
814
Meeting Date: May 6, 2025 Agenda Item: 10F.

CITY OF SAN CLEMENTE 2
A summary of the total construction expenditures is provided below:

Construction Management, Inspection, and Materials
Testing
$ 26,500
Construction $ 414,031
Total Project Construction cost $ 440,531
All work has now been completed to the satisfaction of the Public Works Director.

Council Options:
 Adopt Resolution No. 25-50 (Attachment 1), which would accept the completed construction work for the Water Reclamation Plant Sodium Hypochlorite Tank Replacement, CIP Project No. 23405.
 Adopt Resolution No. 25-50 with modifications.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

This project was previously determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Section 15302, Class 2 Replacement or Reconstruction, of the State CEQA Guidelines.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-50, which will:

1. Accept the Water Reclamation Plant Sodium Hypochlorite Tank Replacement, CIP Project No. 23405, from Jennette Company, Inc.;

2. Authorize the City Clerk to execute and record the Notice of Completion for the Water Reclamation Plant Sodium Hypochlorite Tank Replacement; and

4. Authorize the City Clerk to release the Performance Bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.
..end
Attachments:

1. Resolution No. 25-50

2. Notice of Completion

3. Staff Report dated October 18, 2022
815
Meeting Date: May 6, 2025 Agenda Item: 10F.

CITY OF SAN CLEMENTE 3
Notification:

None.
816
Attachment 1
RESOLUTION NO. 25-50

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ACCEPTING AS

COMPLETE THE WATER RECLAMATION PLANT SODIUM

HYPOCHLORITE TANK REPLACEMENT, CIP PROJECT
NO. 23405
WHEREAS, on October 18, 2022, the City Council awarded a construction contract to Jennette Company, Inc. for the Water Reclamation Plant Sodium Hypochlorite Tank Replacement, CIP Project No. 23405; and
WHEREAS, the work consisted of replacing a leaking 10,000 gallon tank with two 6,000 gallon tanks, and constructing a containment wall to protect against accidental spillage of sodium hypochlorite liquid onto the surrounding area; and WHEREAS, Jennette Company, Inc. has completed the work to the satisfaction of the Public Works Director.

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

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

SECTION 2. That the City Council accepts as complete the Water Reclamation Plant Sodium Hypochlorite Tank Replacement, CIP Project No. 23405, from Jennette Company, Inc.

SECTION 3. That the City Council authorizes the City Clerk to execute and record a Notice of Completion for CIP Project No. 23405.

SECTION 4. That the City Council authorizes the City Clerk to release the Payment Bond for this project 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against Jennette Company, Inc.

SECTION 5. That the City Council authorizes the City Clerk to release the Performance Bond for this project upon receipt of a Warranty Bond in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.

SECTION 6. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2025. 817
Resolution No. 25-50 Page 2
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-50 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
818
Attachment 2
Recording Requested By:

City of San Clemente
When Recorded, Mail To:

City Clerk Department
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Recorded for the benefit of the City of San
Clemente and exempt from recording fees
pursuant to Government Code Section 27383.

Space above this line is for Recorder’s Use Only

NOTICE OF COMPLETION
Notice is hereby given by the City of San Clemente, a Municipal Corporation, that a public work of improvement has been completed as follows:

1. Project title or description of work: Water Reclamation Plant Sodium Hypochlorite Tank Replacement, CIP Project No. 23405

2. Date of completion: January 31, 2025

3. Street address or legal description of the project site: 380 Avenida Pico, San Clemente, CA 92673

4. Name of owner: City of San Clemente

5. Interest or estate of owner: City of San Clemente

6. Address of owner: 910 Calle Negocio, Suite 100, San Clemente, CA 92673

7. Name and address of contractor: Jennette Company, Inc., 9235 Trade Place, Suite B, San Diego, CA 92126
I am the Public Works Director/City Engineer for the City of San Clemente, a Municipal Corporation, the owner of the indicated interest or estate in the property described above.

I make this verification on behalf of the City of San Clemente. I have read this Notice of Completion and know its contents. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on __________________________ in San Clemente, California. ________________________________________
Laura Campagnolo, City Clerk
City of San Clemente
819

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 10/18/2022 Agenda Item: 4I
Department: Utilities
Prepared By: David Rebensdorf, Utilities Director
Subject:

CONSTRUCTION CONTRACT AWARD TO JENNETTE COMPANY, INC. FOR WATER RECLAMATION PLANT (WRP) SODIUM HYPOCHLORITE TANK REPLACEMENT, PROJECT NO. 23405.

Fiscal Impact:

Yes. The original approved project budget is $350,000 from the Water Fund Depreciation Reserve.

The estimated total project cost for this project is $484,825. A supplemental appropriation is recommended in the amount of $134,825 from the Water Fund Depreciation Reserve to account number 052-466-43420-000-23405 to complete the project.

Summary:

Staff recommends approval of a construction contract with Jennette Company, Inc., in the amount of $394,614 for the WRP Sodium Hypochlorite Tank Replacement.

Background:

Sodium Hypochlorite liquid, with a concentration of 12.5%, is stored in a tank at the Water Reclamation Plant (WRP) and is used for tertiary treatment prior to distribution of recycled water to City customers. The existing double wall fiberglass Sodium Hypochlorite storage tank was installed as part of the WRP Recycled Water Expansion Project, but has been subject to leaks and is at the end of its useful life. Currently, a rental storage tank placed in a temporary containment area with temporary piping is being used to disinfect recycled water at the WRP.

To maintain proper storage of chemicals meeting regulatory requirements and maintain recycled water service, MBF Consulting prepared plans and specifications to replace the storage tank with two High Density Polyethylene (HDPE) storage tanks, piping, and a concrete wall that surrounds both tanks to provide a more reliable method of containment. Use of two storage tanks provides staff the ability to order and store bulk material in a timely manner when one of the tanks runs out of Sodium Hypochlorite. This will improve operations and provide additional storage needed for future production of recycled water upon completion of the Advanced Water Treatment Facility.

Discussion:

The Sodium Hypochlorite Tank Replacement Project was advertised for public bidding on Planet Bids and eight electronic bids were received on August 16, 2022. The result from the bid opening is presented in the attached Bidder’s Listing. The lowest responsive and responsible base bid of $394,614 was received from Jennette Company, Inc.

The project was budgeted for $350,000 from the Water Fund Depreciation Reserve. To realize CITY OF SAN CLEMENTE Page 1 of 3 Printed on 10/12/2022
powered by Legistar™ 1
Attachment 3
820
Meeting Date: 10/18/2022 Agenda Item: 4I
construction of the project, a supplemental appropriation in the amount of $134,825 is required. The increase in project costs are due to addition of the second storage tank for additional storage as described above and recent increases in material and labor costs due to inflation and lack of available materials.

Based on the low bid, project costs are estimated as follows:

Administration, and Engineering Design $ 24,250
Construction Management and Inspection 26,500
Construction 394,614
Construction Contingency (approx. 10%) 39,461
Total Estimated Project Cost $ 484,825
As required by City Policy and State Law, the contractor will be required to provide performance and payment bonds simultaneously with execution of the construction contract. A warranty bond will also be required prior to City Council acceptance of the project.

Plan and Policy Consistency:

The project is consistent with the following General Plan Goals and Policies:
 Goal: Maintain and improve a comprehensive system of potable water supply, storage and distribution, and wastewater treatment, reclamation, and reuse to meet daily and emergency needs in San Clemente.
 Policy: PSFU-5.10. Wastewater System. We provide and maintain a system of wastewater collection and treatment facilities to adequately convey and treat wastewater generated in the City of San Clemente service area.

Council Strategy:

The project is consistent with Council Strategy 3 - Update and maintain infrastructure that reflects best available technology and service - in that the project replaces a tank at the end of its useful life and implements an alternate tank to increase the life expectancy of the replaced asset.

Recommended Actions:

Staff Recommendation
Staff Recommends that the City Council:

1. Approve the Plans and Specifications for WRP Sodium Hypochlorite Tank Replacement, Project No. 23405.

2. Approve a supplemental appropriation in the amount of $134,825 to Account No. 052-466- 43420-000-23405 from the Water Fund Depreciation Reserve.

3. Approve and authorize the Utilities Director to execute, Contract ________, by and between the City of San Clemente and Jennette Company, Inc., providing for the WRP Sodium Hypochlorite Tank Replacement, in the amount of $394,614.

Attachment:

1. Location Map
CITY OF SAN CLEMENTE Page 2 of 3 Printed on 10/12/2022
powered by Legistar™8212
Meeting Date: 10/18/2022 Agenda Item: 4I

2. Bidder’s Listing

3. Contract without attachments
Notification:

None.

CITY OF SAN CLEMENTE Page 3 of 3 Printed on 10/12/2022
powered by Legistar™8223
$WWDFKPHQW
8234
BIDDER’S LISTING
BID OPEN TIME: 2:00 PM
BID OPEN DATE: 08/16/2022
PRESENT: Electronic Bid (Planet Bids)
Subject: Bid Opening
Project: WRP Sodium Hypochlorite Tank Replacement – Project 23405 No. of Bids: 8
Company Information Bid
Bond,
Etc.

City Bidder is
from
Addendums Amount
1 Jennette Company Inc. √ San Diego $394,614.00
2 Tharsos Inc. √ La Mesa $439,000.00
3 RE Chaffee Construction Inc √ Wrightwood $447,520.00
4 Spiess Construction Co., Inc. √ Santa Maria $476,470.00 5 Vicon Enterprise Inc √ Anaheim $522,000.00
6 Houalla Enterprises, Ltd. √ Newport
Beach $561,521.00
7 Ferreira Construction Co, Inc √ Rancho
Cucamonga $567,132.00
8 C E WATERBURY

CORPORATION, INC
√ Corona $583,980.00
$WWDFKPHQW
8245
55452.01510\32905704.2
33 SECTION 00500

CONTRACT
SECTION 00500

CONTRACT
THIS CONTRACT is made this _____ day of _________, 2022, in the County of Orange, State of California, by and between the City of San Clemente hereinafter called City, and -(11(77(&203$1<,1& hereinafter called Contractor. City and the Contractor for the considerations stated herein agree as follows:

ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:
:5362',80+<32&+/25,7(7$1.5(3/$&(0(17352-(&71R The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 25 working days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of 7KUHH +XQGUHG 1LQHW\ )RXU 7KRXVDQG 6L[ +XQGUHG DQG )RXUWHHQ 'ROODUV

.

Payment shall be made as set forth in the General Conditions.

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

ARTICLE 4. LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay City the sum of $500 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event that Liquidated Damages are not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.

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

Notice Inviting Bids
Instructions to Bidders
Bid Form
$WWDFKPHQW
8256
SECTION 00500

CONTRACT
55452.01510\32905704.2
34 SECTION 00500

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

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

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

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

ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at City Clerk Office or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.

IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures. 8267
SECTION 00500

CONTRACT
55452.01510\32905704.2
35 SECTION 00500

CONTRACT

CITY OF SAN CLEMENTE
By:________________________________
ATTEST: Its:_______________________________
______________________________ Dated: ____________________, 20____ CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:

BEST BEST & KRIEGER
____________________________
City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
________________________________
Finance Authorization
-HQQHWWH&RPSDQ\,QF
(“CONTRACTOR”)
By:_____________________________
Its:_____________________________
Dated: __________________, 20____

END OF CONTRACT
8278
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: May 6, 2025 Agenda Item: 10G.

Submitted By: Public Works
Prepared By: Shawn Ryan, P.E., Deputy Public Works Director Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO ACCEPT AND FILE NOTICE OF COMPLETION FOR THE DIGESTER NO. 2 CLEANING, RESIDUAL DISPOSAL AND INSPECTION, CIP PROJECT NO. 21203 ..body
Fiscal Impact:

The total construction cost of $937,590 was under the approved construction budget of $991,074 from the Sewer Fund Depreciation Reserve, Account No. 054-476-43420-000-21203.

Summary:

Before the City Council is a Resolution (Attachment 1) and Notice of Completion (Attachment 2) for the Digester No. 2 Cleaning, Residual & Inspection Project, as shown below.

Background:

On July 17, 2024, the City Council awarded a construction contract to MP Environmental Services, Inc. for the Digester No. 2 Cleaning, Residual Disposal and Inspection Project. (Attachment 3). The work consisted of cleaning out and inspecting Anaerobic Digester Tank No.

2. A summary of the total construction expenditures is provided below:

Construction Management and Inspection $ 10,500
Construction 927,090
Total Project Construction Cost $937,590
828
Meeting Date: May 6, 2025 Agenda Item: 10G.

CITY OF SAN CLEMENTE 2
Council Options:
 Adopt Resolution No. 25-51 (Attachment 1) to accept the completed work for the Digester No. 2 Cleaning, Residual Disposal Project No. 21203.
 Adopt Resolution No. 25-51 with modifications.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

This project was previously determined to be categorically exempt from the 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.

Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 25-51, which will:

1. Accept the Digester No. 2 Cleaning, Residual Disposal and Inspection, CIP Project No. 21203, from M.P. Environmental Services, Inc.;

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed Digester No. 2 Cleaning, Residual Disposal and Inspection, CIP Project No. 21203;

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.
..end
Attachment:

1. Resolution No. 25-51

2. Notice of Completion

3. Staff Report to Award the Project, dated July 17, 2024 Notification:

None
829
Attachment 1
RESOLUTION NO. 25-51

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ACCEPTING AS
COMPLETE THE DIGESTER NO. 2 CLEANING,

RESIDUAL DISPOSAL AND INSPECTION, CIP PROJECT
NO. 21203
WHEREAS, on July 17, 2024, the City Council awarded a construction contract to M.P. Environmental Services, Inc. for the Digester No. 2 Cleaning, Residual Disposal and Inspection, CIP Project No. 21203; and
WHEREAS, the work consisted of cleaning out and inspecting Anaerobic Digester Tank No. 2; and
WHEREAS, M.P. Environmental Services, Inc. has completed the work to the satisfaction of the Public Works Director/City Engineer.

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

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

SECTION 2. That the City Council accepts as complete the Digester No. 2 Cleaning, Residual & Inspection, Project No. 21203, from M.P. Environmental Services, Inc.

SECTION 3. That the City Council authorizes the City Clerk to execute and record a Notice of Completion for Project No. 21203.

SECTION 4. That the City Council authorizes the City Clerk to release the payment bond for this project 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against M.P.

Environmental Services, Inc.

SECTION 5. That the City Council authorizes the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.

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

PASSED AND ADOPTED this _____ day of ____________________, 2025.

ATTEST:
830
Resolution No. 25-51 Page 2
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-51 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
831
Attachment 2
Recording Requested By:

City of San Clemente
When Recorded, Mail To:

Space above this line is for Recorder’s Use Only

NOTICE OF COMPLETION
Notice is hereby given by the City of San Clemente, a Municipal Corporation, that a public work of improvement has been completed as follows:

1. Project title or description of work: The Digester No. 2 Cleaning, Residual & Inspection Project No. 21203.

2. Date of completion: February 10, 2025.

3. Street address or legal description of the project site: City of San Clemente Utilities, 380 Avenida Pico, City of San Clemente, CA 92672.

4. Name of owner: City of San Clemente.

5. Interest or estate of owner: City of San Clemente

6. Address of owner: 910 Calle Negocio, Suite 100, San Clemente, CA 92673

7. Name and address of contractor: M.P. Environmental Services, Inc., 3400 Manor Street, Bakersfield, CA 93308.

I am the Public Works Director / City Engineer for the City of San Clemente, a Municipal Corporation, the owner of the indicated interest or estate in the property described above.

Executed on __________________________ in San Clemente, California. _________________________________
Laura Campagnolo, City Clerk
City of San Clemente
832
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: July 17, 2024 Agenda Item: 11H
Submitted By: Public Works
Prepared By: Shawn Ryan, Senior Civil Engineer
Subject:
..titl e
CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO M.P.

ENVIRONMENTAL SERVICES, INC. FOR THE DIGESTER NO. 2 CLEANING, RESIDUAL DISPOSAL AND INSPECTION, CIP PROJECT NO. 21203, IN AN AMOUNT NOT TO EXCEED $887,340, AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT, AND

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

The estimated total construction cost of $991,074 is within the approved budget amount of $1,133,890 from the Sewer Fund Depreciation Reserve, Account Number 054-476-43420-000- 21203.

Summary:

Before the City Council is the award of a construction contract to M.P. Environmental Services, Inc. in an amount not to exceed $887,340, plus a 10% construction contingency in the amount of $88,734, for the Digester No. 2 Cleaning, Residual Disposal and Inspection Project.

Digester No. 2 is one of two anaerobic digester units at the Water Reclamation Plant that require periodic cleaning. Digesters process the sludge for volume reduction before sludge is hauled away to landfills for disposal.

Background:

Digester No. 2 is one of two anaerobic digester units at the Water Reclamation Plant. The digesters biologically process wastewater sludge received from the physical and
mechanical treatment processes to reduce the volume of
waste requiring landfill disposal. Digester No. 2 has
accumulated a significant amount of residual waste since it was last cleaned over 10 years ago. Periodic cleaning and inspection ensures high wastewater treatment efficiency and assurance against failure of internal digester components.

This project also includes the cleaning and inspection of the Water Reclamation Plants Sludge Holding Tank No. 1.

On March 19, 2024, staff published a notice inviting bids in the SC Times and published a bid solicitation on Planet Bids.

Bids were opened on April 8, 2024, and the results are presented in Table 1 below. Bids range 1 Attachment 3
833
Meeting Date: July 17, 2024 Agenda Item: 11H

CITY OF SAN CLEMENTE
from $887,340 to $893,780. Staff notified all local qualified businesses of the project; however, there were no bidders based in San Clemente. The lowest responsive and responsible bidder is M.P. Environmental Services, Inc. of Bakersfield, California with a total bid amount of $887,340.

Table 1. Bidder’s Summary
Company Name Company Location Amount
M.P. Environmental Services Bakersfield, CA 887,340.00
Kay Construction Company Santee, CA 893,780.00
Based on the lowest responsive and responsible bidder, a summary of the estimated expenditures is provided in Table 2. Below:

Table 2. Expenditure Summary
Construction Management and Inspection $15,000
Construction $887,340
Contingency (10%) $88,734
Total Estimated Construction Cost $991,074
As required by City policy and state law, the Contractor will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 2).

Project plans and specifications are on file in the City Clerk’s Office.

Council Options:
 Adopt Resolution No. 24-117, awarding the construction contract to M.P. Environmental Services, Inc, authorizing the City Manager to execute a construction contract an amount not to exceed $887,340, authorizing a 10% construction contingency of $88,734, and finding the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.
 Modify and adopt Resolution No. 24-117.
 Continue the item with direction to provide additional information.  Do not award the contract or perform the work on Digester No. 2.

Environmental Review/Analysis:

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

Recommended Actions:

Staff recommends that the City Council adopt Resolution No. 24-117 which will:
..recommendation
8342
Meeting Date: July 17, 2024 Agenda Item: 11H

CITY OF SAN CLEMENTE

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

2. Award the Digester No. 2 Cleaning, Residual Disposal and Inspection, CIP Project No. 21203, contract to M.P. Environmental Services, Inc;

3. Authorize the City Manager to execute a contract with M.P. Environmental Services, Inc., in an amount not to exceed $887,340 in a form substantially similar to Contract No. C24-40 (Attachment 2) for the Digester No. 2 Cleaning, Residual Disposal and Inspection, CIP Project No. 21203; and

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

1. Resolution No. 24-117

2. Contract No. C24-40 (without attachments)
Notification:

All bidders.
8353
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: May 6, 2025 Agenda Item: 10H.

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

CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO ROY ALLAN SLURRY SEAL, INC. FOR FY 2025 MAJOR STREET MAINTENANCE, CIP PROJECT NO. 25303, IN AN AMOUNT NOT TO EXCEED $370,517, AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT, APPROVING A 15% PROJECT

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

The estimated total construction cost of $471,094 is within the approved budget of $550,000 from the General Fund, Account No. 001-416-45720-000-25303, Major Street Maintenance Program.

Summary:

Before the City Council is the award of a construction contract to Roy Allan Slurry Seal, Inc. in an amount not to exceed $370,517 and approval of a 15% project contingency for the FY 2025 Major Street Maintenance.

Background:

The FY 2025 Major Street Maintenance project includes slurry sealing, crack filling, and restriping on various streets as shown on the Location Map (Attachment 2).

Existing Street Existing Street
836
Meeting Date: May 6, 2025 Agenda Item: 10H.

CITY OF SAN CLEMENTE 2
On March 20, 2025, staff contacted local contractors, published a notice inviting bids for this project in the SC Times, and published a bid solicitation on PlanetBids. Bids were opened on April 10, 2025, and the results are presented in the table below. Bids ranged from $370,516.83 to $546,000.00. There were no bidders from businesses based in San Clemente.

The lowest responsive and responsible bidder is Roy Allan Slurry Seal, Inc. of Santa Fe Springs, California, with a total bid of $370,516.83.

Table 1. Bid Summary
Company Name Company Location Amount
Roy Allan Slurry Seal, Inc. Santa Fe Springs, CA $370,516.83 American Asphalt South, Inc. Riverside, CA $444,158.06
Pavement Coatings Co. Jurupa Valley, CA $456,281.33
All American Asphalt Corona, CA $496,404.00
Union Pavement Services, Inc. Jurupa Valley, CA $546,000.00 Based on the lowest bid, the total estimated project construction cost is $471,094, as summarized below in Table 2:

Table 2. Cost Summary
Construction Management and Inspection $ 45,000
Construction $ 370,517
Contingency (15%) $ 55,577
Total Estimated Construction Cost $ 471,094
As required by state law and City policy, Roy Allan Slurry Seal will be required to provide performance and payment bonds simultaneously with the execution of the construction contract (Attachment 3). Project plans and specifications are on file in the City Clerk’s office.

Council Options:
 Adopt Resolution No. 25-52 (Attachment 1), awarding the FY 2025 Major Street Maintenance contract to Roy Allan Slurry Seal, Inc., authorizing the City Manager to execute a construction contract an amount not to exceed $370,517, approving a 15% project contingency of $55,577, and finding the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.
 Modify and adopt Resolution No. 25-52.
 Continue the item and direct staff to provide additional information.  Do not award the contract or construct the street maintenance. 837
Meeting Date: May 6, 2025 Agenda Item: 10H.

CITY OF SAN CLEMENTE 3
Environmental Review/Analysis:

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

Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 25-52, which will:
..recommendation

1. Find the FY 2025 Major Street Maintenance, CIP Project No. 25303, categorically exempt from the CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines;

2. Award the FY 2025 Major Street Maintenance, CIP Project No. 25303, contract to Roy Allan Slurry Seal, Inc.;

3. Authorize the City Manager to execute a contract with Roy Allan Slurry Seal, Inc. in an amount not to exceed $370,517, in a form substantially similar to Contract No. 25-18 (Attachment 3), for the FY 2025 Major Street Maintenance, CIP Project No. 25303; and

4. Approve a 15% construction contingency of $55,577 for this project. ..end
Attachment:

1. Resolution No. 25-52

2. Location Map

3. Contract No. C25-18 (without attachments)
Notification:

All bidders.
838
Attachment 1
RESOLUTION NO. 25-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AWARDING A

CONSTRUCTION CONTRACT TO ROY ALLAN SLURRY
SEAL, INC. TO PERFORM FY 2025 MAJOR STREET
MAINTENANCE, CIP PROJECT NO. 25303, IN AN AMOUNT
NOT TO EXCEED $370,517, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONTRACT, APPROVING A
15% PROJECT CONTINGENCY, AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR
SECTION 15301) OF THE STATE CEQA GUIDELINES
WHEREAS, the City conducted formal competitive bidding for the FY 2025 Major Street Maintenance, CIP Project No. 25303 (Project); and WHEREAS, on April 10, 2025, the City received five (5) responsive bids ranging from $370,516.83 to $546,000.00 for the Project; and
WHEREAS, Roy Allan Slurry Seal, Inc. was the lowest responsive and responsible bidder with a bid of $370,516.83.

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

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

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

SECTION 3. That the Construction Contract Agreement for the FY 2025 Major Street Maintenance, CIP Project No. 25303, is hereby awarded to Roy Allan Slurry Seal, Inc.

SECTION 4. That the City Manager is authorized and directed to execute a construction contract for the FY 2025 Major Street Maintenance, CIP Project No. 25303 with Roy Allan Slurry Seal, Inc. in an amount not to exceed $370,517, in a form substantially similar to that presented to City Council on May 6, 2025.

SECTION 5. That a 15% project contingency of $55,577 is hereby approved and may be utilized to the extent that the City Manager determines it necessary and 839
Resolution No. 25-52 Page 2
proper.

SECTION 6. That the City Manager is authorized and directed to take such other and further actions as are necessary and proper to accomplish the purposes of this resolution and complete the project.

SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of May, 2025.

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

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-52 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of May, 2025, 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 May, 2025. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
840

PUERTO ROYAL

AVE TALEGA

MARBLEHEAD

ELEMENTARY
SCHOOL
PA4 SEWER LIFT STATION

CM FORESTAL

AVE MESITA

VIA DURAZNO

VIA PECANA

VIA CLAVEL

VIA IRIS

VIA VINA

VIA HELECHO

VIA PIMPOLLO

VIA PETUNIA

VIA TULIPAN

VIA CALENDULA

BRILLANTE CL FINO CLARETE

DIAMANTE

LEGENDARIO

CEPA UNO

CARTA DE PLATA

CL SIN RIVAL

CARTA TAZA

AVE IMPERIAL

VINA VIAL

SANGRE DE TORO
RIOJA

PENEDES

CARRETERA

CM VERA CRUZ

COSTERO VISTA

COSTERO RISCO COSTA SALADA

SARMENTOSO

VIA SOLANA

SARMENTOSO

CRESTA BABIA

MAR ESCARPA

AIRE DE LA SAL

COSTA ESPUMA

CM ESCOLLO

CM COSTADO

AQUA DEL CABALLETE CM CACHONES

COSTA ESCONDIDA

COSTA MARITIMA

VISTA DE OLMO

CM BOSQUECILLOCM MOJADO

S CL POLVOROSA

N CL POLVOROSA CM NUBES

CM ROCOSO

CM TIERRA

CM MARINERO

TERRAZA ESCONDIDA

CL DEL CIMA

COLINA PUESTA CM CRESTA

COLINA PACIFICA

CM DE LOS MARES

PORTICO DEL SUR

CL CARMELITA

CL DOMINGO

CL VECINO

CL CLASICO CL PORTADA CL MARDARINA

CL PROSPERO

AV FORTUNA

DOMADOR

MIRA DEL SUR MIRA DEL NORTEMIRA DEL OESTE

MIRA VELERO MIRA ADELANTE

MIRA ALLENDE

MIRA LAS OLAS

MIRA COLLADO MIRA PUERTA

TRES RIOS

MALANCHA

PENASCO

VILLAMAR

VIA AMAPOLA

CL VALLARTA

CL HERALDO

CL ESTEBAN

CL FRONTERA

CL EMBOCADURA

CL AMABLE

CL DULCE

CL CONTENTA

CL BRISA

CL GANADERO CL HIDALGO

CL VALLARTA

CL FIERROS

VIA MORADA

CL GUADALAJARA

CL CUMBRE

VIA BELLOTA

CL PIEDRAS

CL DONCELLA

VIA BLANCO

CL HERALDO

PAVOREAL
OTERO

CL GUADALAJARA
ARROYO

PANADERO

CAMINANTE

NOVILUNIO

RIACHUELO
CERCA
LLANO

RIACHUELO

ENSENADA

GERALDO
CADENA

ALDEANO
ALTURA

DEL CABO

INCLANADO

ROBERTO

ROSALINDA

ESTAMPIDA

AFLORAMIENTO

SOMBREADO

CABALLISTA DEL SUR

CERCADO

LAS POSAS

VIA SAGE
GANADO
FELIPE

ANABELLA

ENRIQUE

NOVILLA

ESTANCIAHIERRO
ARREOS

VIA HOMBRE CL EMILIA

PANTANO

VIA SAGE

VIA NARCISO

VIA VIOLETA

DOMADOR

BONANZA
VACUNO

ESTRIBO

EMINENCIA DEL NORTE

PORTICO DEL NORTE

BONANZA

ALFORJA OBRAJERO

CABALLISTA DEL NORTE

JINETE REBANO

COSTERO RISCO

ACANTILADO

ARBOLADO

CM VERA CRUZ

CAMPO RASO
CHARCO
COSTA

VIA TULIPAN

VIA SOLANA VIA VIEJO

VIA FAISAN VIA ZAFIRO

CL ONICE CL JADE

CL AQUAMARINA

CORTE TOPACIO

CL OPALO

VIA MERO

CORTE AMATISA CL ONICE

AVE PICO

COAST HWY

VIA SOCORRO

CL DE LOS MOLINOS

EBB TIDE DR BREAKER DR

PALM DR SEA BREEZE DR BEACH DR

CM SAN CLEMENTE

CL ESMERALDA

AVE PICO

VIA SAN ANDREAS VIA BALLENA

AVE MASTIL

AVE ESPADA CL TINAJA

VIA SENDA

VIA CHALUPA CL BURROCL CUADRA

VIA ARBOLEDA

VIA MONTECITO VIA SANTO TOMAS

VIA VISTOSA

VIA CASA LOMA

VIA VERBENA

VIA MONTEZUMA

AVE VAQUERO

VIA MONTEGO

VIA BANDITA VIA LADO

VIA MONTECITO

CL VISTA TORITOVIA MONTEGO

VIA ALEGRE

CL BARANDA CL GAUCHO CL DESCANSO

CL JUAREZ VIA JUAREZ

CL MACHO CL LUEGO

CL FRONTERA

CL AMIGO

VIA HIDALGO

CL LOBINA

VIA SARGO

AVE MAREJADA CL BALANDRA

VIA MERLUZA VIA MERLUZA

CM FARO

CM GALEON

CM ANCLA

CL PAISANO

CL CHUECA

VIA CHUECA

CL REATACL GUADALAJARA

CL CORRAL

CM CORSO RIO CM BUCANERO

CL ALMIRANTE

AVE DE LA ESTRELLA AVE SIERRA

CL DE INDUSTRIAS AVE NAVARRO

CL OLA VERDE VIA MANTARAYA VIA CONCHA

AVE FACETA

CM LAUREL

VIA TECA

VIA AGUILA

VIA GAVILAN

AVE PLATANAR

CL CIDRA

AVE OLIVA VIA CEREZA

VIA PALMITO

VIA PERA

VIA ZUMAQUE

CL CHAYOTE

VIA GOLONDRINA

PASEO LARO

VIA MANGO

VIA MERLA

VIA NAUTILA

CORTE CARDELINA

AVE AZOR

AVE VISTA HERMOSA VIA TURQUEZA

VIA CASCADITA

SANDY DR

AVE VAQUERO

VIA MALAGA

VIA MARBRISA

CL CAMPANERO

VIA ONDA

AVE LA PATA

PLAZA VIA SOL

CL PORTOFINO

PLAZA CABANA PLAZA LOS CORALES

CL BOTANICO

CL SALUDA

CL BOTANICO

VIA LOS TILOS

VIA MONTE PICAYO

VIA SONRISA

CL PRECIPICIO

TIERRAS ALTAS

COSTERO VIENTOS

CM VENTOSA

CM DEL VISTAZO

LADERA BRISA

CL MARAVILLA
CHICO
CL SOL

VIA ESPIRITU

VIA PACIFICA

AVENIDA MERIDA

AVE PICO

AVE VISTA MONTANA

VIA PALACIO

VIA ASALEA CL PARADISO

CL EMPALME CL MIGUEL

AVE PRESIDIO

CL ESCUELA CL FIESTA CL NEBLINA

CL DEL JUEGO

CL SALIDA

CL SANDIA

CL EMPALME

CL DEL CERRO

MARACAY

BURRIANA

CARTAGENA

SEGOVIA

CL PESCADOR

CL VILLARIO

CL DORADO

CL FELICIDAD

AVE SALVADOR

CL FAMILIA

CL DELICADA

CL PUEBLO

CL ROBLES CL FAMILIA

CL MENDOZA

AVE PRESIDIO

PUERTO MORANT

PUERTO CARAVACA

PUERTO VALDEMO

MONTILLA

CL AGUILLA

CL AMANECER

CL NEGOCIO
LORCA

VIA OTONO VIA NUBLADO

CL VENEZIA

VIA UMBROSO

CM IBIZA

VIA AMENO

VIA VILLAGIO

VIA DE ANGELES

AVE TRANQUILA

VIA VISALIA

AVE DE VERDESAVE DE NOGALES
AVE

CL SOMBRA CL RECODO

CL TREPADORA

VIA SONRISA

COSTA RUSTICO

VIA TULIPAN

BRILLANTE

AVE VISTA MONTANA
CL SOL
ARISTA

TERRAMAR

DEL CABO

JULIANA RENALDO

VIA PRESA

TELEGA GOLF COURSE

SHORECLIFFS

MARBLEHEAD

COASTAL

CRESCENTA
CM

PASEO VISTA

PASEO ROSA

PASEO DEL REY

PASEO LUNA

PASEO VERDE

AVE PICO

CM FARO

AVE VISTA HERMOSA

BERNICE AYER MIDDLE SCHOOL

AVE TALEGA

AVE VISTA HERMOSA

CL CAMPANERO

CL SALUDA

SAN GORGORNIO PARK

SHORECLIFFS GOLF COURSE

LIBERTY PARK

VIA SUERTE

TRUMAN BENEDICT ELEMENTARY SCHOOL

VISTA DEL MAR

ELEMENTARY & MIDDLE
SCHOOL

SHORECLIFFS MIDDLE SCHOOL
ORENSE

CITY LIMIT

CL VALLARTA

CL FRONTERA

CL GAUCHO

VIA BLANCO

THE COURTYARDS

AVE FACETA

AVE FRONTERA

CL VALLARTA AVE VAQUERO

MIRA PUERTA

CL NUEVO

CL GUADALAJARA
5 CL MIGUEL

CL CORDILLERA

CL AMANECER

CL FIESTA CL NEBLINA

CL PUEBLO

CL FAMILIA CL DELICADA

CM DE LOS MARES

CM DEL RIO

EMINENCIA DEL SUR

AVE VISTA HERMOSA

JIM JOHNSON MEMORIAL PARK

VISTA HERMOSA

SPORTS PARK

BELLO PANORAMA

VERDE PARK

FORSTER RANCH

COMMUNITY PARK

CL DE LOS MOLINOS

CM SAN CLEMENTE

AVENIDA LA PATA

AVENIDA VISTA HERMOSA

CALLE SALUDA

CAMINO DEL RIO

CORTE MERLANGO CALAMAR
CORTE
VIA

BARRACUDA

INCLANADO

CM VERA CRUZ PLAZA PACIFICA

COLINA RODANTE

MONTANA DEL SOL

CL SORPRESO

CL FRONTERA

C I T Y O F S A N C L E M E N T E
910 CL Negocio, Suite 100
San CLEMENTE, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316

LOCATION MAP
i:\cd\engineering\secure\projects\pn 25303 - fy25 major street maintenance\14-design\cad\pn25303 fy2025 msm location map.dwg 3.17.2025 ATTACHMENT 1
FY 2025 MAJOR STREET MAINTENANCE
Project No. 25303
Attachment 2
841
Attachment 3
SECTION 00500

CONTRACT
THIS CONSTRUCTION CONTRACT FY 2025 MAJOR STREET MAINTENANCE, CIP PROJECT NO. 25303 is made this _____ day of _________, 2025, in the County of Orange, State of California, by and between the City of San Clemente, a municipal corporation (“City”), and Roy Allan Slurry Seal, Inc., a California corporation with its principal place of business at 12643 Emmens Way, Santa Fe Springs, California 90670 (“Contractor”). City and the Contractor for the considerations stated herein agree as follows:

FY 2025 Major Street Maintenance, Project No. 25303
The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract and the Work, which includes everything that is reasonably foreseeable related thereto, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Three Hundred Seventy Thousand Five Hundred Sixteen Dollars and Eighty-Three Cents ($370,516.83). Payment shall be made as set forth in the General Conditions.

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

Notice Inviting Bids
Instructions to Bidders
842
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Non-Collusion Declaration Form
Contractor Information and Experience Form
List of Subcontractors Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Contract
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.

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

ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at CITY CLERK, CITY OF SAN CLEMENTE or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.
[SIGNATURES ON FOLLOWING PAGE]
843
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 20____
_____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization
Roy Allan Slurry Seal, Inc., a
California corporation
(“CONTRACTOR”)
By:_____________________________
Wyatt Lawrence Allan, Chief Executive
Officer, Chief Financial Officer
Dated: __________________, 20____
By:_____________________________
Lance Royal Allan, Secretary, Vice
President
Dated: __________________, 20____

END OF CONTRACT
844
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: May 6, 2025 Agenda Item: 10I.

Submitted By: Public Works
Prepared By: Masako Hennequin, Associate Civil Engineer Ryan Kim, Senior Traffic Engineer
Dave Rebensdorf, Public Works Director / City Engineer
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO ONYX PAVING COMPANY, INC. FOR THE SOUTH EL CAMINO REAL LANE

RECONFIGURATION AND BUFFERED BIKE LANE PROJECT FROM AVENIDA MENDOCINO TO SOUTH CITY LIMIT, FEDERAL PROJECT NO. CML-5274(039), FTIP NO. ORA 190914, CITY CIP PROJECT NO. 11308, IN AN AMOUNT NOT TO EXCEED $1,639,000, APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $848,900, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT, AND MAKING FINDINGS UNDER ..body THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Fiscal Impact:

The estimated total construction cost of $2,068,900 is not within the approved budget of $1,220,000 from Account No.012-861-45300-000-11308. A supplemental appropriation of $848,900 is needed from the Gas Tax Fund to fund the project. There is available fund balance of approximately $5,500,000 within the Gas Tax Fund for this expenditure. A Federal Grant Congestion Mitigation and Air Quality (CMAQ) Program Fund of $1,075,000 was approved in November 2024. The grant funding will be distributed back to the City over the course of the project, reducing the total cost to the City Gas Tax Fund to $993,900.

Summary:

Before the City Council is the award of a construction contract to ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, and approval of a 10% ($163,900) project contingency, for the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project from Avenida Mendocino to South City Limit. Construction will result in a project that modifies the southerly segment of the South El Camino Real from four vehicle travel lanes to two vehicle travel lanes, a center turning lane, and new Class II bike lanes on each side of the street.

Background:

The project is identified in the City’s Bicycle and Pedestrian Master Plan, which was approved with the 2014 Centennial General Plan. The project was evaluated under CEQA in the Environmental Impact Report prepared for the 2014 Centennial General Plan (SCH No. 2013041021). The project is also included in OCTA’s Orange County Bike Connectors (OC Loops) Gap Closure Feasibility Study Segment 49C of El Camino Real (Corridor 49).

On November 7, 2018, City Council approved Resolution No. 18-42 (Attachment 2) including authorizing an application for funds from the Bicycle Corridor Improvement Program funded with 845
Meeting Date: May 6, 2025 Agenda Item: 10I.

CITY OF SAN CLEMENTE 2
Congestion Mitigation and Air Quality Improvement Program funding under the fixing America’s Surface Transportation Federal Transportation Act for South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project.

On February 16, 2021, the City amended its General Plan (Resolution 21-003) to reclassify South El Camino Real from Avenida Mendocino to its southerly terminus at the South City Limit. The reclassification modified this South El Camino Real section from a Four-Lane Secondary Arterial to a Divided Collector. The City determined that these amendments to the General Plan did not constitute significant changes to the Project, the surrounding circumstances, or new information that created the potential for any new or more severe impacts that were not already evaluated and considered in the 2014 General Plan EIR, and that the amendments fell within the Class 1 exemption to CEQA review in any event. The project has also obtained a required OCTA amendment to the Orange County Master Plan of Arterial Highways (MPAH) to reclassify the roadway segment.

The project was budgeted in Fiscal Year 2020/21. The proposed design will keep the existing roadway width as required by the General Plan amendment to provide adequate emergency access during regional emergencies. This project will reconfigure travel lanes and create new Class II buffered bike lanes in the northbound and southbound directions by reducing travel lanes from four to two lanes with a continuous two-way left turn lane and/or exclusive left turn lane. This will reduce greenhouse gas emissions by providing more access for bicycle use and improving safety for bicycle riders and drivers. (See Attachment 3 for supporting documents.) Caltrans approved the federal funding on November 26, 2024, and the City must procure this project as soon as possible to submit the first invoice to Caltrans by May 26, 2025. Otherwise, the federal fund may be lost.

The project also includes asphalt pavement resurfacing and slurry sealing, concrete repair work on sidewalks, curb ramps, curb and gutter, cross gutter, driveway approaches, guardrail repair, utility adjustments, and installation of signs and striping.

Existing Roadway Project Location Map
846
Meeting Date: May 6, 2025 Agenda Item: 10I.

CITY OF SAN CLEMENTE 3
On January 23, 2025, staff published a Notice Inviting Bids in the SC Times, reached out to local contractors, and published a bid solicitation on PlanetBids. Bids were opened on February 27, 2025, and the results are presented in Table 1 Bid Summary below. Bids ranged from $1,639,000 to $1,889,465. A bid was received by local contractor Diamond Construction & Design, and staff analyzed the local vendor preference amount per San Clemente Municipal Code section

3.40.030(E). According to the local vendor preference calculation, Diamond Construction & Design’s bid of $1,705,654 is less than 107% of the apparent low bid of $1,639,000 submitted by ONYX Paving Company, Inc., making Diamond Construction and Design the apparent low bidder; however, Diamond Construction’s bid was non-responsive.

This federally funded project requires a Disadvantaged Business Enterprise Requirement (DBE) of 22%. The Caltrans DBE Program is intended to ensure a level playing field and to foster equal opportunity in federal-aid contracts. Caltrans LAPM Exhibits 15-G and 15-H provided in the PlanetBids bid package require that the Prime Contractor list the CONSTRUCTION CONTRACT DBE COMMITMENT and PROPOSER/CONTRACTOR GOOD FAITH EFFORTS, respectively.

Failure of the Prime Contractor to meet Caltrans LAPM could result in loss of project funding.

Staff carefully reviewed and evaluated all required bid forms submitted by contractors and found that Diamond Construction and Design did not meet the DBE requirements per the Caltrans 2025 Local Assistance Procedures Manual (LAPM), providing zero percent DBE commitment in LAPM Exhibit 15-G and not providing any good faith efforts in LAPM Exhibit 15-H. Additionally, LAPM Exhibit 12-B, Part 2: Bidder’s List of Subcontractor (DBE and Non-DBE) required the contractor to “list all subcontractors who provided a quote or bid but were not selected to participate as a subcontractor on this project.” Diamond Construction and Design left LAPM Exhibit 12-B (Part 2) completely blank.

The LAPM states that failure to commit to achieving the DBE contract goals or demonstrate good faith efforts to do so is among the reasons a bid may be considered non-responsive and be precluded from reading. (See Attachment 4 for LAPM Exhibits 15-G, 15-H, and 12-B submitted by Diamond Construction and Design.) Staff believes that failure to meet DBE contract goals or demonstrate good faith efforts in compliance with the LAPM is a material bid defect that cannot be waived because it would potentially give a competitive advantage and result in the City’s loss of grant funding.

Diamond Construction and Design’s bid also had two other minor defects (expiration of City business license and discrepancy between the written bid price and the numerical bid price). It is discretionary whether the City insists on strict conformance to all bid requirements; trivial irregularities that do not result in any unfair competitive advantage can be waived.

Based on the findings above, staff recommends that Diamond Construction and Design’s bid for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project be rejected as non-responsive.

The next lowest bidder, ONYX Paving Company, provided a DBE commitment of 22.05%, which exceeds the DBE goal of 22%. ONYX Paving Company also demonstrated and submitted all supporting documents of Good Faith Effort. (See Attachment 5 for LAPM Exhibits 15-G and 15-H submitted by ONYX Paving Company.) Therefore, staff recommends that the City Council find 847
Meeting Date: May 6, 2025 Agenda Item: 10I.

CITY OF SAN CLEMENTE 4
that the lowest responsive and responsible bidder is ONYX Paving Company, Inc. of Anaheim, California, with a total bid amount of $1,639,000.

Table 1. Bid Summary
Company Name Company Location Amount
ONYX Paving Company, Inc. Anaheim, CA $1,639,000.00
All American Asphalt Corona, CA $1,724,427.10
Diamond Construction & Design San Clemente, CA (*Note 1) $1,705,954.00
Diamond Construction & Design San Clemente, CA $1,725,954.00 PALP dba Excel Long Beach, CA $1,783,437.80
LC Paving & Sealing Escondido, CA $1,837,743.20
R.J. Noble Company Orange, CA $1,889,464.90
(*Note 1: Total Bid Price in Numerical Form was $1,725,954, however Total Bid Price in Written Form was read as $1,705,954. Per the specifications bid form, the written price prevails in case of discrepancy between the written price and the numerical price.) Based on the lowest responsive bid, the total estimated project construction cost is $2,068,900, as summarized below:

Table 2. Cost Summary
Construction Management, Inspection, and Material Testing $ 266,000 Construction $1,639,000
Contingency (10%) $ 163,900
Total Estimated Construction Cost $2,068,900
As required by state law and City policy, the ONYX Paving Company will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 6). Project plans and specifications are on file in the City Clerk’s office.

Council Options:
 Reject Diamond Construction & Design’s bid as non-responsive and adopt Resolution No. 25- 53 (Attachment 1), awarding the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project contract to ONYX Paving Company, Inc. as the lowest responsive and responsible bidder, approving a supplemental appropriation in the amount of $848,900 from the Gas Tax Fund, authorizing the City Manager to execute a construction contract in an amount not to exceed $1,639,000, approving a 10% project contingency of $163,900, and making findings under the California Environmental Quality Act.  Waive all Diamond Construction & Design’s bidding irregularities based on a finding that the defects were trivial and did not result in any competitive advantage, award the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project contract to Diamond Construction and Design, Inc., approve a supplemental appropriation in the amount of 848
Meeting Date: May 6, 2025 Agenda Item: 10I.

CITY OF SAN CLEMENTE 5
$930,000 from the Gas Tax Fund, authorize the City Manager to execute a construction contract in an amount not to exceed $1,705,954, approve a 10% project contingency of $170,595, and make findings under the California Environmental Quality Act. The estimated total construction cost will increase by $74,000 to be $2,142,549 and the project may no longer qualify for federal funding.
 Modify and adopt Resolution No. 25-53.
 Continue the item and direct staff to provide additional information.  Do not adopt Resolution No. 25-53 and put the project on hold.

NOTE: Per the 2025 Local Assistant Procedures Manual (LAPM), the Local Public Agency must submit the first invoice by May 26, 2025 to avoid being classified as inactive and jeopardize federal funding. Unsuccessfully award the construction contract on May 6, 2025 may cause loss of federal funds.

Environmental Review/Analysis:

This Project was previously fully analyzed and considered as part of the 2014 Centennial General Plan EIR (SCH No. 2013041021), and none of the conditions set forth in Public Resources Code section 21166 or CEQA Guidelines section 15162 apply that would require the City to prepare subsequent or supplemental environmental analyses of the Project. There are no changes to the Project, the circumstances surrounding the Project, or new information that indicate that the Project would have any new or more severe environmental impacts beyond those that were analyzed in the 2014 EIR. Additionally, the Project was previously determined to be exempt from the California Environmental Quality Act (CEQA) under Class 1 (Repair and Maintenance of Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines. A Notice of Exemption was filed with the County of Orange Recorder’s Office on February 7, 2025 for this Project. (See Attachment 7.)
Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 25-53, which will:

1. Make findings under the California Environmental Quality Act that no further environmental review is required;

2. Approve a supplemental appropriation of $848,900 from the Gas Tax Fund into Account No. 012-861-45300-000-11308;

3. Reject Diamond Construction & Design, Inc.’s bid as non-responsive and Award the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, Federal Project No. CML5274(039), FTIP No. ORA 190914, City CIP Project No. 11308, contract to ONYX Paving Company, Inc. as the lowest responsive and responsible bidder;

4. Authorize the City Manager to execute a contract with ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, in a form substantially similar to Contract No. 25-19 849
Meeting Date: May 6, 2025 Agenda Item: 10I.

CITY OF SAN CLEMENTE 6
(Attachment 6) for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, Federal Project No. CML-5274(039), FTIP No. ORA 190914, City CIP Project No. 11308; and

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

1. Resolution No. 25-53

2. Staff Report dated November 7, 2018

3. Supporting Documents

4. Diamond Construction and Design LAPM Exhibits 15-G, 15-H, and 12-B

5. ONYX Paving Company LAPM Exhibits 15-G and 15-H

6. Contract No. 25-19

7. Notice of Exemption
Notification:

All bidders.
850
Attachment 1
4934-5186-3603 v3
RESOLUTION NO. 25-53

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AWARDING A

CONSTRUCTION CONTRACT TO ONYX PAVING
COMPANY, INC. TO PERFORM SOUTH EL CAMINO REAL

LANE RECONFIGURATION AND BUFFERED BIKE LANE

PROJECT FROM AVENIDA MENDOCINO TO SOUTH CITY
LIMIT IN AN AMOUNT NOT TO EXCEED $1,639,000,

APPROVING A SUPPLEMENTAL APPROPRIATION IN THE
AMOUNT OF $848,900, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONTRACT, APPROVING A
10% PROJECT CONTINGENCY, AND MAKING FINDINGS

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
WHEREAS, the 2014 adoption of the Centennial General Plan and Bicycle and Pedestrian Master Plan included candidate project number 4 to add Class II bike lanes on South El Camino Real from Avenida Mendocino to its southerly terminus; and WHEREAS, the potentially significant environmental impacts of the 2014 Centennial General Plan and the Bicycle and Pedestrian Master Plan were fully analyzed and evaluated under the California Environmental Quality Act (CEQA) in an Environmental Impact Report, SCH No. 2013041021, including candidate project number 4 to add Class II bike lanes on South El Camino Real from Avenida Mendocino to its southerly terminus; and WHEREAS, on November 7, 2018, the City adopted Resolution 18-42 authorizing the application for federal grant funds from the Congestion Mitigation and Air Quality Improvement Program Fund; and
WHEREAS, on February 16, 2021, the City adopted Resolution 21-003 approving a General Plan Amendment to authorize the reclassification of South El Camino Real from Avenida Mendocino to its southerly terminus from a Secondary to a Divided Collector; and WHEREAS, the City determined that the February 16, 2021 amendments to the General Plan did not constitute changes to the Project or circumstances or new information that could create new or more severe environmental impacts needing subsequent or supplemental environmental analysis beyond the analysis contained in the 2014 Environmental Impact Report and that the amendments were exempt from CEQA in any event; and
WHEREAS, the Orange County Transportation Authority (OCTA) has amended the Orange County Master Plan of Arterial Highways (MPAH) map to reclassify the segment of South El Camino Real from Avenida Mendocino to the southerly terminus as a Divided Collector; and
WHEREAS, extensions for project funding were granted by Caltrans and OCTA due 851
Resolution No. 25-53 Page 2
4934-5186-3603 v3
to regulatory permitting delays, COVID, project staffing, and project timeline conflicts with concurrent Caltrans projects on the I-5 Freeway; and
WHEREAS, per the Amended General Plan approval, the project design will not modify the physical layout of the roadway segment and only include pavement marking modifications so that adequate emergency access can still be provided; and WHEREAS, the City conducted formal competitive bidding for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, Federal Project No. CML5274(039), FTIP No. ORA 190914, City CIP Project No. 11308 (Project); and WHEREAS, on July 11, 2024, the City received six (6) responsive bids ranging from $1,639,000 to $1,889,465 for the Project; and
WHEREAS, ONYX Paving Company, Inc. was the lowest responsive and responsible bidder with a bid of $1,639,000.

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

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

SECTION 2. Based on the record as a whole, this Project was previously fully analyzed and considered as part of the 2014 Centennial General Plan EIR (SCH No. 2013041021), and none of the conditions set forth in Public Resources Code section 21166 or CEQA Guidelines section 15162 apply that would require the City to prepare subsequent or supplemental environmental analyses of the Project. There are no changes to the Project, the circumstances surrounding the Project, or new information that indicate that the Project would have any new or more severe environmental impacts beyond those which were analyzed in the 2014 EIR.

Additionally, based on the record as a whole, the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of minor alteration of existing public structures, facilities, or topographical features, involving negligible or no expansion of existing or former use.

SECTION 3. That a supplemental appropriation in the amount of $848,900 from the Gas Tax Fund into Account No. 012-861-45300-000-11308 is hereby approved.

SECTION 4. That the Construction Contract Agreement for the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project, Federal Project No.

CML-5274(039), FTIP No. ORA 190914, City CIP Project No. 11308, is hereby awarded to ONYX Paving Company, Inc.

SECTION 5. That the City Manager is authorized and directed to execute a construction contract for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, Federal Project No. CML-5274(039), FTIP No. ORA 190914, City 852
Resolution No. 25-53 Page 3
4934-5186-3603 v3
CIP Project No. 11308 with ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, in a form substantially similar to that presented to City Council on April 15, 2025.

SECTION 6. That a 10% project contingency of $163,900 is hereby approved and may be used to the extent deemed necessary and advisable by the City Manager.

SECTION 7. That the City Manager or his designee is authorized and directed to execute such other documents and take such other and further actions as may be necessary and proper to accomplish the purposes of this resolution.

SECTION 8. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of May, 2025.

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

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-53 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of May, 2025, 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 ___________, 2025. __________________________
CITY CLERK of the City of
San Clemente, California
853
Resolution No. 25-53 Page 4
4934-5186-3603 v3
Approved as to form:
_____________________________
Elizabeth A. Mitchell, City Attorney
854
11-7-18 / 6W-1
$WWDFKPHQW
855
11-7-18 / 6W-2 856
11-7-18 / 6W-3 857
11-7-18 / 6W-4 858
11-7-18 / 6W-5 859
11-7-18 / 6W-6 860
11-7-18 / 6W-7 861
11-7-18 / 6W-8 862
11-7-18 / 6W-9 863
Exhibit E
Master Plan of Arterial Highways
Supporting Documentation
23 Attachment 3
864
The City of San Clemente will obtain the required MPAH amendment with process used on similar projects including N. El Camino Real, Camino Del Rio, Camino Capistrano, Camino Mira Costa, etc.

The current daily traffic volume on S. El Camino Real, within the project limits, is approximately 7,700 vehicles per day. Future model projections developed for the City’s Centennial General Plan, forecast the same segment to serve between 8,000 and 11,000 vehicles per day in the buildout/longͲrange scenario depending on land use and development patterns that may occur over time. Further south toward the south City limits, forecast traffic volumes are estimated at approximately 5,000 vehicles per day.

As shown in the OCTA MPAH Capacity Values table below, the segment of S. El Camino Real is well under capacity based on current and forecast traffic projections. The City of San Clemente will pursue an MPAH amendment for this portion of roadway to utilize the crossͲsection to better serve alternate modes of travel.

5,000
(LOS A)
8,000
(LOS A)
11,000
(LOS B)
ExistingÆ
Proposed Æ
24 865
Exhibit F
Bicycle and Pedestrians Safety
Enhancements Supporting Documentation
25 866
26 Map of Total Collisions
S. El Camino Real from Ave Mendocino to City Limit
Total Vehicle/Pedestrian or Bicyclist =
10 867
2019 BCIP Call for Project Pedestrian and Bicycle Collision Report South El Camino Real
from Avenida Mendocino to South City Limit
COLLISION_DAT
E
TIME DAY_OF_
WEEK PRIMARY_RD SECONDARY_RD DIST. DIR. WEATHER COLLISION_S EVERITY NUMBER_I NJURED PARTY_ COUNT PCF_VIOL_CATEGORY PCF_VIOLATION TYPE OF COLLISION MVIW PED_ACTION LIGHTING 5/20/2006 725 Saturday SOUTH EL CAMINO REAL AVENIDA DOLORES 98 S Cloudy Injury (Severe) 3 3 Unsafe Speed 22350ͲUnsafe speed for prevailing conditions (use for all prima facie limits). Vehicle/ Pedestrian Pedestrian In Road, Including Shoulder Daylight 9/10/2007 945 Monday SOUTH EL CAMINO REAL AVENIDA MENDOCINO 0 Clear Injury (Other Visible) 1 2 Unknown Sideswipe Bicycle No Pedestrian Involved Daylight 3/28/2008 745 Friday SOUTH EL CAMINO REAL SAN LUIS REY 0 Clear Injury
(Complaintof Pain)
1 2 Pedestrian Right of Way 21950ͲCrosswalks, failure to yield to pedestrians within. Vehicle/ Pedestrian Pedestrian Crossing in Crosswalk at Intersection Daylight 3/5/2009 1830 Thursday SOUTH EL CAMINO REAL AVENIDA SAN LUIS REY 0 Clear Injury (Other Visible) 1 2 Pedestrian Right of Way 21950ͲCrosswalks, failure to yield to pedestrians within. Vehicle/ Pedestrian Pedestrian Crossing in Crosswalk at Intersection DarkͲStreet Lights 3/31/2009 828 Tuesday SOUTH EL CAMINO REAL CRISTIANITOS RD 306 N Clear Injury (Other Visible) 1 2 Improper Turning 22107ͲUnsafe turn, and/or without signalling. Bicycle No Pedestrian Involved Daylight 12/22/2009 1513 Tuesday SOUTH EL CAMINO REAL SAN LUIS REY 0 S Clear Injury (Severe) 2 2 Unsafe Lane Change 21658ͲLaned roadways (2 or
more lanes in direction of travel),
straddling or changing when
unsafe.

Broadside Bicycle No Pedestrian Involved Daylight
1/8/2010 1735 Friday NORTH EL CAMINO REAL CANADA D SAN JOAQUIN 9 S Clear Injury(Complaintof Pain)
1 2 Pedestrian Right of Way 21950ͲCrosswalks, failure to yield to pedestrians within. Vehicle/ Pedestrian Pedestrian Crossing in Crosswalk at Intersection Daylight 2/7/2011 1800 Monday SOUTH EL CAMINO REAL AVENIDA MENDOCINO 5 N Clear Injury (Other Visible) 1 2 Unknown Vehicle/ Pedestrian Pedestrian Crossing in Crosswalk at Intersection DuskͲDawn 3/18/2012 1945 Sunday SOUTH EL CAMINO REAL AVENIDA MENDOCINO 4 N Clear Injury(Complaintof Pain)
1 2 Unknown Vehicle/ Pedestrian Pedestrian Crossing in Crosswalk at Intersection
DarkͲStreet
Lights
6/29/2015 2250 Monday SOUTH EL CAMINO REAL CALLE DEL COMERCIO 589 S Clear Injury (Severe) 1 2 Pedestrian Violation 21954ͲPedestrian yield, upon roadway outside crosswalk. Vehicle/ Pedestrian Pedestrian Crossing Not in Crosswalk DarkͲNo Street Lights 10 Total Collistions Involved Pedestrian or Bicyclist from 2006Ͳ2017:

Data source: SWITRS
I:\cd\Engineering\secure\Transportation\OCTA\Bicycle Corr Imp Program Grant\2018\Traffic Data\Ped & Bike Accident data from TIMS.xlsx 27 868

PROVEN SAFETY

COUNTERMEASURES
Road Diets

5RDGZD\5HFRQÀJXUDWLRQ

4-LANE Î3-LANE

ROAD DIET

CONVERSIONS
19-47%
Source: Evaluation of Lane Reduction “Road Diet”
Measures on Crashes, FHWA-HRT-10-053.

BEFORE AFTER
Source: City of Orlando, Florida
A Road Diet typically involves converting an existing four-lane undivided roadway to a three-lane roadway consisting of two through lanes and a center two-way left-turn lane (TWLTL).

Benefits of Road Diet installations may include:
An overall crash reduction of 19 to 47 percent.
Reduction of rear-end and left-turn crashes due to the dedicated left-turn lane. Reduced right-angle crashes as side street motorists cross three versus four travel lanes.
Fewer lanes for pedestrians to cross.
Opportunity to install pedestrian
refuge islands, bicycle lanes, on-street
parking, or transit stops.
Traffic calming and more consistent
speeds.
A more community-focused,
“Complete Streets” environment that
better accommodates the needs of all
road users.

A Road Diet can be a low-cost safety
solution when planned in conjunction
with a simple pavement overlay, and the
reconfiguration can be accomplished at
no additional cost. Source: Leidos
A “Road Diet,” or roadway
reconfiguration, can improve
safety, calm traffic, provide
better mobility and access for
all road users, and enhance
overall quality of life.

Reduction in total crashes
SAFETY BENEFIT:

ÎFor more information on this and other FHWA Proven Safety Countermeasures, please visit https://safety.fhwa.dot.gov/provencountermeasures.

FHWA-SA-17-066
Before and after photos of a Road Diet project.

Road Diet project in Honolulu, Hawaii.
http://safety.fhwa.dot.gov
28 869
www.safety.fhwa.dot.gov
FHWA Safety Program
Road Diet
Informational Guide
29 870
30 871
31 872
32 873
33 874
34 875
35 876

!"# $
%"" " &
'("
)
* +#"%," -

.
)

/
0 "
"
. " 121
34 56789:;< => ?@A5 BCD5 97E;8;FG 87HIJFK< 7H; <L=MF JF E7HJ=N< >JKNH;< JF GLJ< OL79G;HP Q9GJ=FR
3S Q9GJ=F7: M=HTU 7HH=M 7FT <V8W=: 87HIJFK< MJGL T;G7J:< 7< <L=MF JF XJKNH; YZ[3 87V W; N<;TP \]^^_`_a \bcdce_ fgh_i
jN99=HGR
3k C WN>>;H;T WJOVO:; :7F; J< 7 WJOVO:; :7F; GL7G J< <;97H7G;T >H=8 GL; 7Tl7O;FG K;F;H7:[9NH9=<; :7F; =H 97HIJFK :7F; WV 7 97GG;HF => <G7FT7HT :=FKJGNTJF7: 87HIJFK<P mL; WN>>;H 7H;7 8JKLG JFO:NT; OL;EH=F =H TJ7K=F7: 87HIJFK<P mL; WN>>;H 7H;7 MJTGL JFO:NT;< GL; MJTGL => GL; 97H7::;: MLJG; :JF;<P
3Y n7HIJFK< >=H WN>>;H;T WJOVO:; :7F;< 7H; <L=MF JF XJKNH; YZ[opqrZCst qp u7E;8;FG 87HIJFK< O7F T;<JKF7G; 7 WN>>;H 7H;7 W;GM;;F 7 WJOVO:; :7F; 7FT 7Tl7O;FG K;F;H7: 9NH9=<; :7F; 7FTv=H 97HIJFK :7F;P C WN>>;H 7H;7 9H=EJT;< 7 KH;7G;H <;97H7GJ=F W;GM;;F GL; WJOVO:; :7F; 7FT 7Tl7O;FG :7F;< GL7F J< 9H=EJT;T WV 7 <JFK:; F=H87: =H MJT; :7F; :JF;P
Q9GJ=FR
qo C WJOVO:; :7F; WN>>;H 7H;7 87V W; N<;T G= <;97H7G; 7 WJOVO:; :7F; >H=8 7F 7Tl7O;FG K;F;H7:[9NH9=<; :7F; 7FTv=H 97HIJFK :7F;P
wxghag`ay
z{ |^ ]i_a} g ~]^^_` g`_g ~_x__h g ~bcdce_ egh_ gha _h_`ge]`i_ egh_ ` g`bh egh_ i gee ~_ a_ebh_gx_a ~d
h`ge
bx_ ehbx]abhge g__hx g`bhi

¡¢ £t¤ ¥¢t
¦ § ¢ ¢ ¢ ¨ ¢© ¢ ¢ ª« ¢ « ¢t
jN99=HGR
q¬ @FOH;7<;T JFG;HJ=H OL;EH=F =H TJ7K=F7: 87HIJFK >H;N;FOV O7F JFOH;7<; 8=G=HJ<G O=89:J7FO;P Q9GJ=FR
q4 mL; OL;EH=F =H TJ7K=F7: 87HIJFK< 87V W; =8JGG;T >H=8 WJOVO:; :7F; WN>>;H 7H;7< :;<< GL7F q >;;G MJT;P
® ¦ ¯ ¢ © ¢ ¢ ¢ § ¢ ¢¢ t ° ±©¢ ¢ ¢ ¢ ¯ § ¢ t ° ¢ ¢ ±¢§ ¢ t
² ³ ¢ ¢ ©© ¢ ¢ ¢¢ ¢¢ ¥ ¯ ¯ ´ µ¶·ª«¸¶¹ºt
»hx`g^e \bcdce_ fgh_i
jN99=HGR
qY C O=FGH7>:=M WJOVO:; :7F; J< 7F 7H;7 => GL; H=7TM7V T;<JKF7G;T G= 7::=M >=H GL; :7M>N: N<; WV WJOVO:J<G< G= GH7E;: JF GL; =99=<JG; TJH;OGJ=F >H=8 GH7>>JO =F 7 H=7TM7V GL7G 7::=M< GH7>>JO G= GH7E;: JF =F:V =F; TJH;OGJ=FP ¬p n7HIJFK< >=H O=FGH7>:=M WJOVO:; :7F;< 7H; <L=MF JF XJKNH; YZ[op¬rZCst wxghag`ay
¼½ ¾
_`_ ]i_a} g chx`g^e ~bcdce_ egh_ i
gee ~_ g`_a h x
_ e_^x iba_ ^ x`g_e egh_i i x
gx chx`g^e ~bcdce_
x`g_e bi h x
_ e_^x ^ ibh x`g^^bc
¼{ ¾
_`_ ]i_a} g chx`g^e ~bcdce_ egh_ i
gee ~_ i_g`gx_a ^` ibx_ab`_cxbh x`g_e ~d ]i_ ^ g ieba a]~e_ d_ee c_hx_` ebh_ g`bh} g gbhx_a _abgh biegha} ` `gbi_a _abgh biegha ¼¿ ¾
_`_ bhx_`i_cxbh x`g^^bc chx`ei geh x
_ ix`__x _Àbix} Á_} ix ibhi} ^egi
bh eb
x ibhgei} ` x`g^^bc
ibhgeiÂ} g``bgx_ a_bc_i i
gee ~_ `b_hx_a xg`a ~bcdcebixi bh x
_ chx`g^e egh_
¼z Ã chx`g^e ~bcdce_ egh_ i
gee hx ~_ bhixgee_a h g xgd `gagd

¨¨ ¹ © ¡¢ £t¤ ¢ ©¢ ¢ ¢¯ ¥¢ ¢ ¢ ©¢ © « © t

¨Ä ° © ¢ ¢ ¢ ¢¢ ¯ ¢¢ ¢¢ ¯¢ ¯ ¢¢ ¢¯ § Å ° ¸ÆÄ·ª ÆÄ·¤º ¢ t Ç¢ ¸Æ·ª Æ·¤º ¯¢ ©©¢ 36 877

!"# $
%"" " &
'("
)
* +#"%," -

.
)

/
0 "
"
. "

37 878
Exhibit G
Air Quality Calculations / Justification
38 879
Bicycle Facilities
Project Name: S.El Camino Real Buffered Bike Lane Project Bicycle paths (Class 1) or bicycle lanes (Class 2) that are targeted to reduce commute and other non-recreational auto travel. Class 1 facilities are paths that are physically-separated from motor vehicle traffic. Class 2 facilities are striped bicycle lanes giving preferential or exclusive use to bicycles. Bike lanes should meet Caltrans' full-width standard depending on street facility type.

Definition:

Annual Average Daily Traffic (ADT): 9,000
Local Government Name: SC San Clemente Use pull
down
menus
Need to know: Funding dollars
Number of operating days per year
Average length of bicycle trips
Average daily traffic volume on roadway parallel to bicycle project City population
Types of activity centers in the vicinity of the bicycle project Length of bicycle project (path or lane)
Class 1 projects: 20 years
Class 2 projects: 15 years
Days (D): 200 days of use/year Consider local climate.

Average Length (L) of bicycle trips: 1.10 Miles per trip in one direction Default based on NPTS.

Trips per day
Two-direction traffic volumes on roadway parallel to bike project.

ADJUSTMENT FACTORS

BIKE FACILITY
CLASS

AVERAGE DAILY

TRAFFIC (ADT)

LENGTH OF BIKE

PROJECT (IN ONE

DIRECTION)

ADJUSTMENT

FACTORS FOR CITIES
WITH
POPULATION>250,000

ADJUSTMENT FACTORS

FOR UNIVERSITY TOWNS
WITH
POPULATION<250,000
*and non-university towns < 250,000
Class 1 ( path)
and
Class 2 (lane)
Class 2 (lane)
ADT < 12,000 vehicles
per day
12,000<ADT<24,000
vehicles per day
24,000<ADT<30,000
vehicles per day
<1 mile
>1 and <2 miles
> 2 miles
.0019
.0029
.0038
.0014
.0020
.0027
.0010
.0014
.0019
.0104
.0155
.0207
.0073
.0109
.0145
.0052
.0078
MAXIMUM IS 30,000 .0104
MAXIMUM IS 30,000
Class 1 ( path)
and
Class 2 (lane)
<1 mile
>1 and <2 miles
> 2 miles
<1 mile
>1 and <2 miles
> 2 miles
Please use descriptive project name that fits in box.

Motor Vehicle Funding (MVFees): $0 dollars
15 years
CMAQ Funding (CMAQ): $0 dollars
Moyer Funding (Moyer): $0 dollars
Other CoFunding (CoFund): $1,475,765 dollars
Project Life (Life):

Description:
(Issues/Comments)
Reconfigure existing 1.1-mile travel lanes and add buffered zones for existing Class 2 bike lanes on S. El Camino Real.

Implementing Agency: City of San Clemente Is the agency private?:

Category: (8) Bicycles
Subcategory: (8a) Bicycle Lanes and Trails (also bridges) Use pull
down menus.

Number of category must match number of subcategory.

MSRC Funding (MSRC): $0 dollars
Suggested Life Defaults:
(Subvention Funds)
(Discretionary
Funds)
39 880
Bicycle Facilities

0.555

0.307

0.008
ROG Factor: 0.200
NOx Factor: 0.220
PM10 Factor: 0.051
Emission Factors Auto Trip End Factors
grams
per trip
grams
per
mile
Auto VMT Factors
Adjustment (A) on ADT for auto trips replaced by
bike trips from the bike facility: 0.0155
Use table above. Adjustments are based on facility class, ADT, project length, and community characteristics.

Credit (C) for Activity Centers near the project: 0.0020 Use Activity Centers table below.

Reductions in Reactive Organic Gases (ROG): 54
Reductions in Nitrogen Oxides (NOx): 38
Reductions in Particulates (PM10): 4
Emission Reductions pounds per year
Annual Emission Reductions in pounds per year (ROG, NOx, PM10, and CO/7) = [(Annual Auto Trips Reduced) * (Auto Trip End Factor) + (Annual Auto VMT Reduced * (Auto VMT Factor)]/454 0 0
0 kilograms per day
Daily Emission Reductions in kilograms per day (ROG, NOx, PM10, and CO/7) = Annual Emission Reductions in pounds per year/ (2.2 * 365) TOTAL EMISSION REDUCTIONS: 166 0
When evaluating the impact of a new bike project, it is important to consider the location of the bike facility. What types of destinations are accessible from the project? How many of these activity centers are within one-half mile of the facility? How many are within a quarter of a mile? Examine the activity centers in the vicinity of the project and compare them to the list above. Select the Credit (C) factor that corresponds to the number of activity centers in the surrounding area.

ACTIVITY CENTER CREDITS
Types of activity centers: Bank, church, hospital or HMO, light rail station (park and ride), office park, post office, public library, shopping area or grocery store, university or junior college.

Count your activity centers. If there
are:

Credit (C) Credit (C)
Within 1/2 mile Within 1/4 mile
At least 3
More than 3 but less than 7
7 or more
.0005
.0010
.0015
.0010
.0020
.0030
Annual Auto Trip Reduced 31,500 = (D) * (ADT) * (A + C) Annual Auto VMT Reduced 34,650 = (Annual Auto Trips Reduced) * (L) dollars per lb.

MVFees CE = ((MVFees + MSRC + Moyer) * CRF)/(ROG + NOx + PM10) CMAQ Cost-Effectiveness: $0.00 dollars per lb.
dollars per lb.

CMAQ CE = (CMAQ * CRF)/(ROG + NOx + PM10)
Total CE = ((MVFees + MSRC + Moyer + CMAQ + CoFund) * CRF)/(ROG + NOx + PM10) Cost-Effectiveness
MVFees Cost-Effectiveness: $0.00
Total Cost-Effectiveness: $1,283.55
CO Factor: 4.472 2.338
Reductions in Carbon Monoxide (CO/7): 70 0
dollars per lb.
$0.00 dollars per lb.
dollars per lb.
$0.00
$744.12
Based on ROG + NOx + PM10 Based on ROG + NOx + PM10 + CO/7 For average auto
emission factors,
see Emission
Factors Menu,
Table 3. For Class
2 facilities use
factors for 11-15
years. For Class 1
facilities, use factors
for 16-20 years.
40 881
Exhibit H
BCIP Agency Resolution
41 882
42 883
Attachment 3
RESOLUTION NO._______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE AUTHORIZING APPLICATION FOR FUNDS FOR THE

BICYCLE CORRIDOR IMPROVEMENT PROGRAM FUNDED WITH

CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT
PROGRAM FUNDING UNDER THE FIXING AMERICA’S SURFACE
TRANSPORTATION FEDERAL TRANSPORTATION ACT FOR S. EL

CAMINO REAL LANE RECONFIGURATION AND BUFFERED BIKE LANE PROJECT.

WHEREAS, the United State Congress enacted the Fixing America’s Surface Transportation (FAST) Federal Transportation Act on December 4, 2015, which makes Congestion Mitigation and Air Quality Improvement Program (CMAQ) funds available to the Orange County Transportation Authority (OCTA); and
WHEREAS, OCTA has established the procedures and criteria for reviewing proposals; and WHEREAS,the City of San Clemente possesses authority to nominate bicycle projects funded using Congestion Mitigation and Air Quality Improvement Program funding and to finance, acquire, and construct the proposed project; and WHEREAS, by formal action the City Council authorizes the nomination of S. El Camino Real Lane Reconfiguration and Buffered Bike Lane Project, including all understanding and assurances contained therein, and authorizes the person identified as the official representative of the City of San Clemente to act in connection with the nomination and to provide such additional information as may be required; and
WHEREAS, the City of San Clemente will maintain and operate the property acquired, developed, rehabilitated, or restored for the life of the resultant facility(ies) or activity; and WHEREAS, with the approval of the California Department of Transportation (Caltrans) and/or OCTA, the City of San Clemente or itssuccessorsin interest in the property may transfer the responsibility to maintain and operate the property; and WHEREAS, the City of San Clemente will give Caltrans and/or OCTA'srepresentatives access to and the right to examine all records, books, papers or documents related to the bicycle project; and

WHEREAS,the City of San Clemente will cause project work to commence within six months following notification from the State or OCTA that funds have been authorized to proceed by the Federal Highway Administration or Federal Transit Administration and that the project will be carried to completion with reasonable diligence; and

43 884
Resolution No. Page 2
WHEREAS, the City of San Clemente commits (MATCH DOLLAR VALUE) of (MATCHING FUND SOURCE) and will provide(PERCENT LOCAL AGENCY MATCH) of the total project cost as match to the requested (REQUESTED CMAQDOLLAR VALUE) inOCTA CMAQfundsfor a total project cost estimated to be (TOTAL PROJECT COST).

WHEREAS, the City of San Clemente may elect to commit additional funds to S. El Camino Real Lane Reconfiguration and Buffered Bike Lane Project to fund an expanded scope which provides additional quantifiable benefits. The City of San Clemente is required to notify OCTA to grant approval prior to commencing on the additional scope; and WHEREAS, the City of San Clemente will comply where applicable with provisions of the California Environmental Quality Act, the National Environmental Policy Act, the American with Disabilities Act, Federal Title VI, Buy America provision, and any other federal, state, and/or local laws, rules and/or regulations;
WHEREAS,the City of San Clemente's City Council authorizesthe execution of any necessary cooperative agreements between the City of San Clemente and OCTAto facilitate the delivery of the project; and
WHEREAS, the City of San Clemente will amend the agency Capital Improvement Program (CIP) to include the project if selected for funding; and NOW, THEREFORE, BE IT RESOLVED the City of San Clemente hereby authorizes Thomas Frank as the official representative of the City of San Clemente to apply for the Congestion Mitigation and Air Quality Improvement Program funding under the Fixing America’s Surface Transportation Act for S. El Camino Real Lane Reconfiguration and Buffered Bike Lane Project.

BE IT FURTHER RESOLVED, that the City of San Clemente agrees to fund its share of the project costs and any additional costs over the identified programmed amount.

PASSED AND ADOPTED this _____ day of November, 2018
ATTEST:

_______________________________ _____________________________ City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE )§

CITY OF SAN CLEMENTE )
44 885
Resolution No. Page 3
I, JOANNE BAADE, City Clerk ofthe City of San Clemente, California, do hereby certify that Resolution No. _________ was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. ___________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
City Attorney
i:\cd\engineering\secure\transportation\octa\bicycle corr imp program grant\2018\draftreso.docx 45 886
Exhibit I
Letters of Support
46 887

!($47-534;
&+!
&
&& .!$
-$ %"!$&&! $
$
<43

!!

&-/<59:6
$#'
!
#
##!$ !#!#(

$!#

$!

!#
$
$/$
-
$)$& &!%'""!$&&$ &' ""
&! %'&&
+&&+!
&
&!$! '$% &!!'&
!
'$

%)

! &$& !&!$(

%&!!
$&! !&$(
/ %)

% &
+"$!($!)+! &! %!$&!'% %!+
%&% '

+/
!'&
!
%"!$& &'%&%!&!$
!$$!$)& +
$%&'$ &%-$%- $
&%/
!$!($-&! &%&!% &% !$!!%
%&!08&!! !$
&$+!!
-
&&&"$!' -
%%&!)!$
!'%%&$%&
%-
!$- !&&! 1%
! &/
'$$ &
+-&$$ !

% !$&!' ! !'&
!
-%!+
%&%'%&
!'"+& &$!&&(
!&$(
&!(!&!!$,! !"$
$%/

!&!$%&%$!& $%%(&!)$+
%&% &&$&
-%"&&"$% !

&"%%
/
!'&!' -

*%&%!($"$&!&$!)+-'&&)'&&$" $!% '"! +
%&%1"&-$& %'%& &
,$+"!& &

+$ &$ &$!)
&+
%&&!&$!'
&!( $%/&+1%"
%!$ )

%)

$+&&- !&$%%'%-+% & )-'$ &+)&!'&%'"$!
%/
&"&&"$!"!%"$!
&)

!'$+
&$(!
'+! &
$
'$%
$+$!$/
&+

%&$ !' &&$!5343
47 888

$!$%! + +
%&%&&5"!"
)$ &"
&%/"!$& &
+-&!' &
&
$&! !&$(
&& &$%&! !($%& &!%

$% &-%!)

!)&%!'$
!&! ! +
%&%&!!'&
!
/!

!) &
"$!(%
% &( !*%& '%.

,*+*#
&
"#"#)!
(

#%!"#
#"
' +-"$
4; <044// 799
%+-
+8 90<// 449
%+-
+8 709"// 448

.

-/.
&+!
&%$(%! &! !$"
' &&$-%$-
!$#'&
+ $$!)+%/

% $% &%-

-$'
&!

&$ %"!$&&! % !&
'%& &+!$)-'&% %%&+!$

'%$%!&
&$ %"!$&&! &)!$
/$!&'$$!

+%$(&!& )
%%4!
!$&

!
'$!'%'$

% &&+1%
!$!!%-)1$

!!
!$)$&!'
&!
'&'$!$
&/
&'%%&

+$! &!'&
!
! '$&! '$
+

$!
&' &!&*'!' &"!%%
/
$
+-
$

$-
!' $-

$ 2+&$%&/!$

&
'+%
*'&($&!$-

$ !' &++
!
&!
"&( '+%2!*/ &

48 889
Exhibit J
Documents that Include Proposed Project
49 890
Prepared by
2013
50 891
Candidate Projects
28 2013
Table 3.4: Candidate El Camino Real Alternatives
Class 3 Bicycle Route Alternative
Enhanced Class 3 Bicycle Route Alternative
Roadway Segment
Length
(Miles) Limits
Avg
Slope
Max
Slope
Install
Sharrows
El Camino Real 2.8 Ave Pico and Calle Del Comercio 3% 5% Yes ,_PZ[PUNWH]LTLU[^PK[O!

»
0UZ[HSS:OHYLK3HUL4HYRPUNZVY¸:OHYYV^Z¹[OYV\NOV\[ *VUULJ[Z[VJVYLJVTTLYJPHSKPZ[YPJ[HUK0

0UJYLHZLIPJ`JSLWHYRPUNIPJ`JSLH^HYLULZZZPNUHNLHUKKPYLJ[PVUHSZPNUHNLHSVUN[OPZYV\[L *VUZPKLYJVTWSL[LZ[LL[ZJVUJLW[ZHSVUN[OPZYV\[L
Roadway Segment
Length
(Miles) Limits
Avg
Slope
Max
Slope
Install
Sharrows
El Camino Real 2.8 Ave Pico and Calle Del Comercio 3% 5% Yes ,_PZ[PUNWH]LTLU[^PK[O!

»
7YVWVZLKHSPNUTLU[!.YLLU3HUL^P[O:OHYLK3HUL4HYRPUNZZPTPSHY[V:LJVUK:[YLL[PU3VUN)LHJO*(;YLH[TLU[HS- lows on-street parking to remain while providing facility for cyclists *VUULJ[Z[VJVYLJVTTLYJPHSKPZ[YPJ[
0UJYLHZLIPJ`JSLWHYRPUNIPJ`JSLH^HYLULZZZPNUHNLHUKKPYLJ[PVUHSZPNUHNLHSVUN[OPZYV\[L *VUZPKLYJVTWSL[LZ[LL[ZJVUJLW[ZHSVUN[OPZYV\[L
Class 2 Bicycle Lane Alternative
Roadway Segment
Length
(Miles) Limits
Avg
Slope
Max
Slope
El Camino Real 2.8 Ave Pico and Calle Del Comercio 3% 5% ,_PZ[PUNWH]LTLU[^PK[O!

»
9VHKKPL[ULLKLK[VHJJVTTVKH[LIPJ`JSLSHULZ,_PZ[PUNMV\Y[YH]LSSHULZHUKVUZ[YLL[WHYRPUNVUIV[OZPKLZ 9VHKKPL[HSPNUTLU[![^V»[YH]LSSHULZVUL»JLU[LY[\YUSHUL[^V »WHYRPUNSHULZ[^V
»IPJ`JSLSHULZ
*VUULJ[Z[VJVYLJVTTLYJPHSKPZ[YPJ[HUK0

0UJYLHZLIPJ`JSLWHYRPUNIPJ`JSLH^HYLULZZZPNUHNLHUKKPYLJ[PVUHSZPNUHNLHSVUN[OPZYV\[L 47(/KLZPNUH[PVUYVHKKPL[VYV[OLYYLJVUMPN\YH[PVU^PSSYLX\PYL6*;(HWWYV]HSMVYJVU[PU\LK4LHZ\YL4M\UKPUN ;VPUJYLHZLLMMPJPLUJ`VMJ`JSPZ[TV]LTLU[ZHSVUN[OPZYV\[LJVTWSL[LZ[YLL[ZJVUJLW[ZLNYV\UKHIV\[ZJHUILJVUsidered as intersection control El Camino Real 0.9 Calle Del Comercio and City limit 1% 3% ,_PZ[PUNWH]LTLU[^PK[O!

»
=HYPL[`VMYVHKKPL[VW[PVUZJHUIL\[PSPaLK[VHJJVTTVKH[L*SHZZMHJPSP[` *VUZPKLYJVTWSL[LZ[YLL[ZJVUJLW[ZHSVUN[OPZYV\[L
*VUULJ[Z[VJVTTLYJPHSKPZ[YPJ[*VUJVYKPH7LKLZ[YPHU)YPKNL;YLZ[SLZHUK0 JYVZZPUNZ^P[OV\[PU[LYJOHUNLZ
0UJYLHZLIPJ`JSLWHYRPUNIPJ`JSLH^HYLULZZZPNUHNLHUKKPYLJ[PVUHSZPNUHNLHSVUN[OPZYV\[L 51 892
Safe Routes to School
128 2013
Figure 6.1 Candidate SRTS Project Locations
52 893
City of San Clemente Bicycle and Pedestrian Master Plan 133
Concordia Elementary School
7VSPJLLUMVYJLTLU[ULLKLKHSVUN(]LUPKH+LS7YLZPKLU[LK\L[VKYP]- ers speeding, parking in the bicycle lane and not stopping at stop signs. -PSSPUZPKL^HSRNHWZ^P[OPU[OLíTPSL^HSRPUNKPZ[HUJLMYVT[OLZJOVVS 0U]LZ[PNH[L[OLULLKMVYJYVZZPUNN\HYKZH[(]LUPKH+LS7YLZPKLU[LH[:HU Luis Rey and at the school entrance. Drivers tend to block the crosswalks and do not pay attention to crossing cyclists and pedestrians. 0TWSLTLU[IPJ`JSLSHULWYVQLJ[VU,S*HTPUV9LHS
Implement bicycle route project on San Luis Rey and Avenida Santa Margarita. 4PZZPUNZPKL^HSRZ^P[OPUíTPSL!MLL[
TPSLZ
5VU(+(JVTWSPHU[J\YIYHTWZ^P[OPUíTPSL!
Concordia Elementary
Ave del Presidente
S El Camino Real
Ave Califia
Ave Montalvo
Ave Santa Margarita
Ave San Luis Rey
Vista Azul
Ave Cota
Ave Lobeiro
Calle Ariana
Ave Dolores
Calle del Comercio
Via Rancho
Ave de Las Palmera
Ave Lucia
Ave Costanso
Calle Potro
Ave San Dimas
Ave San Diego
Ave Buena Ventura
Via Adelia
Ave San Fernando
Calle Campesino
Ave Dominguez
Ave Vista del Oceano
Calle Tiburon
Ave Santa Inez
Calle del Establo
Vista Blanca
Ave Carmelo
Ave Pala
Calle Bahia
Calle Isabella
Via Calandria
Calle Potranca
Ave la Costa
Calle Tiara
Ave Amadis
Via Jazmin
Calle de Las Focas
Calle Capri
Ave Santa Margarita
Non-ADA Compliant Curb Ramps
Missing Sidewalks
Existing Bicycle Facilities
Class 1: Bike Path
Class 2: Bike Lane
Class 3: Bike Route
Recommended Bikeways
Class 1: Bike Path
Class 2: Bike Lane
Class 3: Bike Route
Distance from school
1/4 Mile
1/2 Mile
Figure 6.5: Concordia Elementary School
53 894

!"#

$
%

!"&

54 895
§¨¦5
§¨¦5
N El Camino Real
Avenida Pico
Coast Hwy
San Juan Creek Rd
S El Camino Real
Avenida la Pata
Camino de Estrella
Del Obispo St
Camino Capistrano
Camino de Los Mares
Valle Rd
Avenida Pico
Avenida del Presidente
Camino Capistrano
Portico del Norte
Calle del Cerro
Avenida Pico
Avenida Vista Hermosa
La Novia Ave

BIKEWAYS MAP
Existing Bike Facilities
Class 1: Bike Path
Class 2: Bike Lane
Class 2: Bike Lane (One Side only)
Class 3: Bike Route
Wide Sidewalks
Recommended Bikeways
Class 1: Bike Path
Class 2: Bike Lane
Class 3: Bike Route
Class 2: Bike Lane One Side Only
Wide Sidewalks
City Boundary
Figure M-3 0 2,500 5,000 1,250 Feet
55 6/30/2015 896
§¨¦5
S El Camino Real Avenida del Presidente
56 897
DISTRICT 5

BIKEWAYS FEASIBILITY STUDY
Final Report: August 2015 August 2015 0DUPCFS KOA Corporation 57 898

2.0 CORRIDOR A: Pacific Coast Highway
DISTRICT 5 BIKEWAYS FEASIBILITY STUDY OCTA – Orange County Transportation Authority KOA Corporation 24 Figure 2.1: Corridor A – Segment Overview Map
58 899

2.0 CORRIDOR A: Pacific Coast Highway
DISTRICT 5 BIKEWAYS FEASIBILITY STUDY
OCTA – Orange County Transportation Authority KOA Corporation 83 Exhibit 2.25: Corridor A – Segment 25
Name:
x El Camino Real (Avenida Magdalena to San
Clemente east city limits)
Agencies:
x San Clemente
Background:
x This portion of El Camino Real is identified
as a Secondary Arterial on the OCTA Master
Plan of Arterial Highways.
x The average daily traffic volumes along El
Camino Real between Avenida Magdalena to
San Clemente east city limits are 6,000 to
9,000 vehicles according to the OCTA
2013/2014 Traffic Flow Map.

Opportunities:
x The speed limit along El Camino Real is 35
mph.
x This segment of the corridor is a major route
to provide access to San Diego County
Constraints:
x The roadway provides two lanes in each
direction with on-street parking along both
sides of the street.

Figure 2.25: Corridor A – Segment 25

A: Pacific Coast Highway

SEGMENT
25 59 900
U=UPPER
L=LOWER
Orange County District 5 Bikeway Feasibility Study
Corridor A: Pacific Coast Highway
Conceptual Striping Plan Keymap
1"=1000'
4 / 4
60 901
41 / 42
0 50' 25'
1'=50'
100' 50'

GRAPHIC SCALE
Seg 25: El Camino Real (Avenida Magdalena to Christianitos Rd) Avenida San Luis Rey to Avenida Lucia, San Clemente, CA I-5 San Diego Fwy
El Camino Real
Avenida San
Luis Rey
Avenida
Santa Inez
Avenida
Dominguez
Segment 25
El Camino Real
I-5 San Diego Fwy
Avenida
San Dimas
Avenida San
Fernando
Avenida Buena
Ventura
Avenida
Dolores
Avenida
San Diego
Avenida Lucia
Segment 25
INSTALL 'ROAD DIET': RESTRIPE TO PROVIDE A

TWO-WAY LEFT TURN LANE WITH ONE LANE IN

EACH DIRECTION AND CLASS II BIKE LANESRETAIN EXISTING CURBSIDE PARKING INSTALL 'ROAD DIET': RESTRIPE TO PROVIDE A

TWO-WAY LEFT TURN LANE WITH ONE LANE IN

EACH DIRECTION AND CLASS II BIKE LANESRETAIN EXISTING CURBSIDE PARKING Orange County District 5 Bikeway Feasibility Study
Conceptual Striping Plan
1"=50' Corridor A: Pacific Coast Highway
61 902
March 2015
KOA Corporation
KTU+A
62 903
COUNTY
COUNTY

COUNTY IRVINE
LAGUNA
WOODS
ALISO
VIEJO
LAGUNA

HILLS MISSION
VIEJO
LAGUNA
NIGUEL
DANA
POINT

SAN JUAN

CAPISTRANO
SAN

CLEMENTE
LAGUNA
BEACH

NEWPORT
BEACH

EL TORO

LAGUNA CANYON

CAMINO DE ESTRELLA

AVENIDA VAQUERO

JUNIPERO SERRA

TRABUCO CREEK

WOOD CANYON

ALISO CREEK

GLENWOOD ANTONIO

PACIFIC COAST

LIPAZ A

PACIFIC COAST

GLENNEYRE
FOREST

AVENIDA TALEGA

DEL OBISPO
ALICIA

CLUB HOUSE

MARINA HILLS
SELVA
W
D
A
O
R
B
YA

PACIFIC PARK ALISO VIEJO

CAMINO CAPISTRANO
LA PAZ
NIGUEL

RANCHO VIEJO

EY N VALL OW CR

STONEHILL

OSO MOULTON

HIGHLANDS

DEL R OI

AVERY MARGUERITE

PASEO DE COLINAS

DEL PRADO
BOT CA

EL CAMINO REAL

AVENIDA VISTA HERMOSA CAMINO DE LOS MARES VERA CRUZ

AVENIDA LA PATA

CAMINO MIRA COSTA

DOHENY PARK

DANA POINT HARBOR

STREET OF THE GOLDEN LANTERN

CAMINO DEL AVION BEACON HILL

PACIFIC ISLAND

SAN JUAN CREEK

LA PATA
ORTEGA

LA NOVIA

AVENIDA PICO
C

MA NI O LAS RAMBLAS
GREENFIELD 73
5 5
Pacific
Ocean
CORRIDOR A: PACIFIC COAST HIGHWAY
OCTA District 5 Bikeways Collaborative

PLANNED CORRIDOR
Existing BikewayProposed Bikeway

EXISTING BIKEWAYS
Class IClass IIClass III

PROPOSED BIKEWAYS
Class IClass IIClass IIISchoolsTransportation CenterRailCity BoundaryDistrict 5 BoundaryParks / Open Space Figure 3-2
Source: OCTA
LEGEND
YA W
D
A
O
R
Connection to Corridor B
Connection to Corridor E Connection to Corridor I Connection to Corridor F Connec on t ti o Corridor H H F I E
B

FORYA W
D
A
Connection to Corridor C
C
Parks within
1/4-mile Served
35 9
Schools within
1/4-mile Served
People within 1/4-mile
Served (approx.)
53K
Of Total
Corridor Length
19miles
Corridor ABikeway Corridor Details1.6 miles of existing Class I4.6 miles of existing Class II7.9 miles of existing Class III Estimated
Project Cost
$11.5-14.1million
63 904
905
906
907
908
909
910
Attachment 5
911
912
913
914
915
916
917
918
919
920
921
922
923
924
925
926
927
928
929
930
931
932
933
934
935
936
937
938
939
940
941
942
943
944
945
946
947
948
949
950
951
952
953
954
955
956
957
958
Attachment 6
SECTION 00500

CONTRACT

THIS CONSTRUCTION CONTRACT SOUTH EL CAMINO REAL LANE RECONFIGURATION & BUFFERED BIKE LANE PROJECT, FEDERAL PROJECT NO. CML-5274(039), FTIP NO. ORA 190914, CITY CIP PROJECT NO. 11308 (“Contract”) is made this _____ day of _________, 2025, in the County of Orange, State of California, by and between the City of San Clemente, a municipal corporation (“City”), and ONYX Paving Company, Inc., a California corporation with its principal place of business at 2890 E. La Cresta Avenue, Anaheim, California, 92806 (“Contractor”). City and the Contractor for the considerations stated herein agree as follows:

ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility work to replace the existing pull boxes with new ones while maintaining the same grade, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:

SOUTH EL CAMINO REAL LANE RECONFIGURATION & BUFFERED BIKE LANE PROJECT FROM AVENIDA MENDOCINO TO SOUTH CITY LIMIT, FEDERAL PROJECT NO. CML5274(039), FTIP NO. ORA 190914, CITY PROJECT NO. 11308 The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

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

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

ARTICLE 4. LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. In accordance with government code section 53069.85, it is agreed that the contractor will pay city the sum of $800 for each and every calendar day of delay beyond the time prescribed in the contract documents for finishing the work, as liquidated damages and not as a penalty or forfeiture. In the event that liquidated damages are not paid, the contractor agrees city may deduct that amount 959
SECTION 00500

CONTRACT
from any money due or that may become due the contractor under the contract. This article does not exclude recovery of other damages specified in the contract documents.

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

Notice Inviting Bids
Instructions to Bidders
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Non-Collusion Declaration form
Information Required of Bidders
Designation of Subcontractors
Iran Contracting Act Certification
Public Works Contractor Registration Certification
LAPM EXHIBIT 12-G-Required Federal-Aid Contract Language LAPM EXHIBIT 12-H-Certification and Disclosure Forms
FHWA-1273
LAPM EXHIBIT 15-G-Construction Contract DBE Commitment
LAPM EXHIBIT 12-B-Bidder’s List of Subcontractor
Contract
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.

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

ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at CITY 960
SECTION 00500

CONTRACT
CLERK, CITY OF SAN CLEMENTE or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.
[SIGNATURES ON FOLLOWING PAGE]
961
SECTION 00500

CONTRACT
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST:
______________________________ Dated: ____________________, 20____ CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
____________________________
Elizabeth A Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
________________________________
Finance Authorization

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

END OF CONTRACT
962
Attachment 5
963
964
965
966
967
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: May 6, 2025 Agenda Item: 10J.

Submitted By: Public Works
Prepared By: David Rebensdorf, Public Works Director
Julie Schmidt, Sr. Management Analyst
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A PROFESSIONAL SERVICES

AGREEMENT TO WATER RESOURCES ECONOMICS, LLC FOR A COST-OF-SERVICE STUDY FOR THE CITY’S WATER UTILITY, AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT FOR AN AMOUNT NOT TO EXCEED $73,465, AND APPROVING AN..body8.9% PROJECT CONTINGENCY
Fiscal:

In Fiscal Year 2024, a Decision Package was approved for $80,000 for a water cost- of-service study. The study was not able to be completed in Fiscal Year 2024, and the funds were carried forward to Fiscal Year 2025, with funding available for this Agreement in the Water Operating Fund, Account No. 052-461-43690.

Summary:

Before the City Council is the award of a Professional Services Agreement to Water Resources Economics, LLC to perform a comprehensive cost-of-service study for the City’s Water Utility.

To establish water rates and to ensure fair and equitable rates, water utilities typically perform cost-of-service studies every five to ten years. The last study was completed in 2017, which implemented rate increases through 2022. An adjustment to rates needs to be evaluated at this time.

As a result of a Request for Proposal process conducted by City staff, Water Resources Economics, LLC is recommended to perform the study for the City for an amount not to exceed $73,465 for the Agreement with an 8.9% contingency amount of $6,535 for potential outreach and tasks related to AB 2257, if necessary. There is an optional task included in the Agreement to evaluate and develop a water rate model to address future operation and maintenance costs as well as capital costs for the City’s potential participation in the Doheny Desalination Project. If the City decides at a later date not to participate in the Project, that task will be removed from the study.

Background:

A cost-of-service study is performed to examine the cost of providing water services with the objective of maintaining fair and equitable rates so that users pay in proportion to the cost of service. Typically, a study is performed every five to ten years, and the City's most recent Study was completed in 2017, which resulted in rate increases for a five-year period through 2022. 968
Meeting Date: May 6, 2025 Agenda Item: 10J.

CITY OF SAN CLEMENTE 2
The goal of this cost-of-service study is to examine the City’s existing rate structure, examine the cost to provide water services for potable and recycled water, and to review existing practices in the industry within California and recent changes in the law, with the objective of developing a fair, equitable, and legally sound rate model to recover the cost of services.

Rates need to be adequate to recover the expenses of the Enterprise Fund, while ensuring that costs are equitably and legally allocated, so that rates correlate to the cost of services. The study will also include an evaluation of the City’s other Water Fees contained in Resolution No. 10-48 (Attachment 5). The Study will include a public workshop and public hearings at City Council meetings to solicit input from the community to develop a rate structure and methodology to manage the water utility for a five-year timeframe. The anticipated timeline for the Study is to finalize the new rate model by December 2025, with implementation in early 2026.

Proposition 218 requires local agencies to follow specific procedures when implementing new fees and charges such as Water Rates, including providing notices, holding public hearings, and offering protest opportunities. On January 1, 2025, Assembly Bill 2257 (AB 2257) went into effect, which enhanced the accountability and transparency of local agencies when adopting, increasing, or extending fees and assessments. This new legislation establishes an “exhaustion of administrative remedies” procedure aimed at fostering transparency, reducing litigation risks (and costs associated therewith), and enhancing trust and communication between local agencies and their ratepayers. It is optional for agencies to implement and follow AB 2257, and the recommendation is that the City implement and follow this process. A contingency amount of $6,535 is included for potential tasks that may arise due to AB 2257 and for public outreach, if needed.

Staff searched for local consultants and posted a Request for Proposal (Attachment 1) for a Costof-Service Study for the City’s Water Utility on PlanetBids on January 7, 2025. Six companies submitted proposals ranging from $62,780 to $115,100. All proposals were evaluated by City staff and ranked based on criteria provided in the Request for Proposals, and all six consultants were interviewed. The recommendation from City staff is to award the agreement to Water Resources Economics, LLC. This consultant provided the best proposal due to the significant experience of the staff recommended to work on the project, record of success on similar projects, and the presentation provided by the team and their responses to questions during the interview. Staff is not aware of any local vendors that perform these services.

CONSULTANT PROPOSAL AMOUNT
(INCLUDING EVALUATION OF OTHER

WATER FEES CONTAINED IN
RESOLUTION NO. 10-48)
1 Black & Veatch Corporation $96,485
2 HF&H Consultants, LLC $115,100
3 IB Consulting, LLC $102,538
4 Raftelis Financial Consultants, Inc. $81,900
5 Water Resources Economics, LLC $73,465
6 Willdan Financial Services $62,780
969
Meeting Date: May 6, 2025 Agenda Item: 10J.

CITY OF SAN CLEMENTE 3
Council Options:
 Adopt Resolution No. 25-54, which would award a Professional Services Agreement to Water Resources Economics, LLC for a Cost-of-Service Study for the City’s Water Utility for an amount not to exceed $73,465, authorize the City Manager to execute the agreement and authorize an 8.9% project contingency of $6,535 to be approved by the City Manager, if needed.
 Modify and adopt Resolution No. 25-54.
 Continue the item and direct staff to provide additional information.  Do not adopt Resolution No. 25-54 to award the contract to Water Resources Economics, LLC and give direction to staff.

Environmental Review/Analysis:

Not a “project” under the California Environmental Quality Act Guidelines section 15378 (14 CCR section 15378). The approval of the Agreement for a Cost-of-Service Study for the City’s Water Utility has no potential result in either a direct or physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council Adopt Resolution No. 25-54, which would:

1. Award a Professional Services Agreement to Water Resources Economics, LLC for a Cost-ofService Study for the City’s Water Utility for an amount not to exceed $73,465;

2. Authorize the City Manager to execute the Professional Services Agreement with Water Resources Economics, LLC (Attachment 3); and

3. Authorize the City Manager to approve amendments for additional services up to an 8.9% project contingency of $6,535, if needed.
..end
Attachment:

1. Request for Proposal for a Cost-of-Service Study for the City’s Water Utility

2. Water Resources Economics LLC Proposal

3. Professional Services Agreement with Water Resources Economics, LLC

4. Resolution No. 25-54

5. Resolution No. 10-48
Notification:

All proposers.
970

CITY OF SAN CLEMENTE

REQUEST FOR PROPOSAL
INVITATION # UT 2425-01

COST-OF-SERVICE STUDY FOR
THE CITY’S WATER UTILITY
JANUARY 7, 2025

CITY OF SAN CLEMENTE

UTILITIES DIVISION
380 AVENIDA PICO, BLDG. N
SAN CLEMENTE, CA 92672
PHONE: (949) 366-1553
Attachment 1
971

CITY OF SAN CLEMENTE

REQUEST FOR PROPOSAL

COST-OF-SERVICE STUDY FOR
THE CITY’S WATER UTILITY
JANUARY 7, 2025
Prospective Contractors:

The City of San Clemente (City) is interested in receiving proposals from Professional Services Contractors (Contractors) to conduct a Comprehensive Cost-of-Service Study for the City’s Water Utility as described in detail in the attached Request for Proposal (RFP).

Schedule of Events from Issuance of the RFP to Award of Contract:

Issue RFP January 7, 2025
Written Inquiries Due (via Planetbids.com) January 21, 2025 – 4:00 p.m.

Proposals Due (Electronically via PlanetBids) February 11, 2025 – 4:00 p.m.

Proposal Reviews Completed February 20, 2025
Interviews February 27, 2025
Selection February 27, 2025
City Council Award March 18, 2025 (estimated)
Contract Implementation Date April 1, 2025 (estimated)
Cost of Service Study Finalized October 1, 2025
City Point of Contact:

The sole source of contact regarding this RFP is Julie Schmidt, Sr. Management Analyst (949) 361-6198. Individuals or firms interested in submitting a proposal are asked not to contact other members of the City of San Clemente staff or Councilmembers in connection with the RFP prior to the announcement of the consultant selected.

Questions and Clarifications:

All questions and clarification requests regarding this Request for Proposal must be submitted using the Q&A option of the City of San Clemente Planet Bids System website at www.san-clemente.org/vendorbids, and will be accepted until 4:00 p.m. on January 21, 2025 (PST). Questions received by any other means will not receive a response. 972
Proposal Closing Date:

Proposals must be submitted electronically via PlanetBids, and will be accepted until 4:00 P.M. on February 11, 2025.

Proposals will become part of the official files of the City of San Clemente and cannot be returned.

Sincerely,
Dustin Burnside
Utilities Manager
973

CITY OF SAN CLEMENTE

REQUEST FOR PROPOSAL

COST-OF-SERVICE STUDY FOR
THE CITY’S WATER UTILITY

TABLE OF CONTENTS
INTRODUCTION ............................................................................................................. 1 BACKGROUND ................................................................................................................ 2 PROJECT OBJECTIVES ................................................................................................... 3 DELIVERABLES .............................................................................................................. 4 SCHEDULE ....................................................................................................................... 4 INSTRUCTIONS & GENERAL CONDITIONS .............................................................. 5 PROPOSAL FORMAT & CONTENT .............................................................................. 7 SUMMARY OF MAJOR COMPLIANCE REQUIREMENTS ...................................... 11

EXHIBITS

1. Sample Professional Services Agreement (PSA) – the selected contractor will be required to execute a Professional Services Agreement with the City. 974
1 CITY OF SAN CLEMENTE

REQUEST FOR PROPOSAL

COST-OF-SERVICE STUDY FOR
THE CITY’S WATER UTILITY
Background about the City and the project, as well as information about the Scope of Work to be undertaken are discussed in this section of the RFP.

A. INTRODUCTION
The City of San Clemente is located in the County of Orange in Southern California. The City encompasses 18.45 square miles and has a population of approximately 66,250. The City of San Clemente Utilities Division oversees and maintains the daily operations of the water, sewer, storm drain, clean ocean, and solid waste divisions.

The City of San Clemente is seeking proposals from qualified contractors to perform a Cost-Of-Service Study for the City’s Water Utility including potable and recycled water, to include the following tasks:

1. Review the existing Water and Conservation Ordinances and evaluate said ordinances from a policy perspective, to develop a fair and equitable rate structure based on cost of service, water usage, and classification of customers.

2. Download historical consumption for the past three-year period. Analyze customer usage patterns and determine, by customer classification and by season (winter and summer), their peak to average ratios. Evaluate potential changes to the current rate structure by customer class for system peaking factors.

3. Review the City’s existing rate structure and determine whether rates are appropriate based on actual customer consumption patterns. This should also include the potable and non-potable (recycled) water rates.

4. Review the wholesale water supply pass-through rate structure and update the current pass-through rate and propose any changes to future passthrough rate adjustments in the future. 975
2 5. Review and present current industry practices compliant with California law for setting rates. Present potential fee structure alternatives to the City.

6. Provide alternative strategies to respond to future drought conditions (i.e., Demand Management Rates).

7. Facilitate public workshop(s) and public hearing(s) to consider and develop policy recommendations consistent with stakeholder interests.

8. Evaluate future Membrane Filtration Reverse Osmosis (MFRO) capital, operation and maintenance costs. Develop and recommend rates to fund operation and maintenance costs for the project. Build a model to reconcile future recycled water rates. Evaluate three options for loan and grant impacts to the recycled water operating costs and rates.

9. Evaluate and develop a water rate model to address future operation and maintenance costs as well as capital costs for the Doheny Ocean Desalination Project.

10.Evaluate the City’s rate structure for other water fees per Resolution No. 10-48 (i.e., Backflow Testing Administration Fee, Meter Installation Fees, Water Application Fee, Hydrant Meter Rentals, etc.). List this as a separate task with a separate cost in the Proposal. This is an optional add-on that will be evaluated during proposal reviews.

B. BACKGROUND

The City periodically reviews and modifies its water rates. City Ordinances provide for annual rate adjustments, as calculated by an existing rate model, based on the current year’s budget and a five-year financial forecast prepared annually by Finance and Utility personnel. The City is interested in proposing a 5-year rate structure.

The last comprehensive Cost-of-Service Study was completed in 2017. The financial model developed as part of that study is updated periodically and is the basis for rate modifications each year.

The goal of this Cost-of-Service Study is to examine the City’s existing rate structure, review existing practices in the industry within California, and develop a fair and equitable rate model to recover the cost of services for a five-year timeframe. Historically, droughts in California occur, and have altered consumption significantly. The rate structure should address potential for long 976
3 term water use reductions as well as model possible future drought impacts to full cost recovery. To address drought conditions in the past, a Demand Management Rate was implemented.

Contract
Upon completion of the selection process, the selected consultant will be awarded a contract agreement. The contract term is anticipated to commence after City Council award of the contract and upon receipt and approval of all required insurance documents. All services provided, and all payments made for services, shall be in accordance with the executed contract agreement.

C. PROJECT OBJECTIVES
Directly related objectives include:

1. Review existing policy: Review of existing ordinances and supporting documentation.

2. Public Workshops: Facilitate workshops to solicit public, staff, and Council input on policy issues developed above.

3. Evaluate Industry Standards in California: Analyze and compare the City’s existing rate structure to other water agencies/best practices within California.

4. Water Rate Structure: Evaluate the current methodology and make recommendations to the current flat rate structure based on customer class.

Develop rate model and rate structure to recover the fixed and variable costs to provide water service in 2025 which allows for future rate changes as needed.

5. Drought Rate Structure: Examine and recommend methodologies to incorporate a Demand Management Rate into the future water rate structure.

6. Funding for Affordability: Present options for funding for the City to address affordability options or assistance to low-income individuals.

7. Presentation of Materials: Consultant shall present information at brief meetings with City staff during the development of the study. In addition, upon completion of the Draft Cost-of-Service Study, consultant shall be 977
4 prepared to present the study at a public meeting and may include up to two public workshops.

8. Finalize Report: Based on direction from staff and City Council, consultant shall finalize the Cost-of-Service Study, provide a digital format acceptable to the City and the rate model.

D. DELIVERABLES
The contractor will be responsible for the following deliverables: Based on direction from staff and City Council, consultant shall finalize the Cost-of-Service Study, and provide a digital format acceptable to the City and the rate model.

E. SCHEDULE
Issue RFP January 7, 2025
Written Inquiries Due (via Planetbids.com) January 21, 2025 – 4:00 p.m.

Proposals Due (Electronically via PlanetBids) February 11, 2025 – 4:00 p.m.

978
5 CITY OF SAN CLEMENTE

REQUEST FOR PROPOSAL

COMPREHENSIVE COST-OF-SERVICE STUDY FOR
THE CITY’S WATER UTILITY

INSTRUCTIONS AND CONDITIONS
The following instructions and conditions apply to this RFP:

A. GENERAL CONDITIONS

1. Pre-Contractual Expenses
Pre-contractual expenses are defined as expenses incurred by the Professional Services Contractor (contractor) in:
 Preparing a proposal in response to this RFP
 Submitting that proposal to the City of San Clemente
 Negotiating with the City of San Clemente on any matter related to this RFP, proposal and/or contractual agreement
 Any other expenses incurred by the contractor prior to the date of an executed contract
The City of San Clemente shall not, in any event, be liable for any precontractual expenses incurred by any contractor. In addition, no contractor shall include any such expenses as part of the price proposed to conduct the scope of work for this project.

2. Authority to Withdraw RFP and/or Not Award Contract
The City of San Clemente reserves the right to withdraw this RFP at any time without prior notice. Further, the City makes no representations that any agreement will be awarded to any contractor responding to this RFP.

The City expressly reserves the right to postpone the opening of proposals for its own convenience and to reject any and all proposals in response to this RFP without indicating any reasons for such rejection(s). 979
6 3. Pricing Approach
The City of San Clemente intends to award a fixed price contract, based on an estimate of consultant hours and hourly rates, for the conduct of this project. In no event shall the City pay an amount in excess of the dollar value negotiated in the contractual agreement with the successful contractor.

4. Right to Reject Proposals
The City of San Clemente reserves the right to reject any or all proposals submitted. Any award made for this engagement will be made to the contractor which, in the opinion of the City, is best qualified to conduct the project.

5. Proposal Evaluation Criteria
Proposals will be evaluated on the basis of their response to all provisions of this RFP. The City of San Clemente may use some or all of the following criteria in its evaluation and comparison of proposals submitted.

The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to indicate their relative importance:
a. Previous experience
b. Demonstrated record of success on work previously performed for the City or similar work performed for others
c. Project Lead
d. Educational background of project lead and staff
e. Staff to perform work within the specified time
f. Methodology proposed to accomplish the work
g. Ability to make effective public presentations of the report and/or design required
h. Ability to work effectively with City staff, other public agencies and related parties as directed during the course of the design, study or other services
980
7 i. Pertinent new ideas which may be presented during the course of the selection process
j. Adequate knowledge of local conditions
k. Availability, experience and knowledge of all subcontractors hired to complete the job or study
l. Additional work performed by the contractor which may have a direct and substantial physical relationship or conflict to the proposed project m. Retention of original contractor on projects modified due to the original contractor’s detailed knowledge of the work or on the grounds of cost n. Previous history of completing projects within budget B. PROPOSAL FORMAT AND CONTENT
Proposals should be typed as brief as possible. They should not include any elaborate or unnecessary promotional material. The following order and content of proposal sections should be adhered to by each contractor.

1. Cover Letter
A cover letter not to exceed three pages in length should summarize key elements of the contractor’s proposal. The letter must be signed by an individual authorized to bind the contractor. The letter must stipulate that the proposed price will be valid for a period of at least 90 days. Indicate the address and telephone number of the contractor’s office located nearest to San Clemente, California, and the office from which the project will be managed.

I. Background and Approach
The Background and Approach Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished.
981
8 II. Methodology(ies)
This section should clearly describe the methodology or methodologies you plan to use to carry out the specific work tasks described in the Work Plan.

III. Work Plan
Describe the sequential work tasks you plan to carry out in accomplishing this project. Indicate all key deliverables and their contents. Identify how much of the work will be done on site.

IV. Project Organization and Staffing
Describe your approach and methods for managing the project.

Provide an organization chart showing all proposed project team members. Describe the responsibilities of each person on the project team. Identify the Project Director and/or Manager and the person who will be the key contact with the City of San Clemente. Indicate how many hours each team member will devote to the project by task, along with a statement indicating the availability of the members of the project team for the duration of the project. Include resumes for each member of the project team. Include information and staff support required from City personnel. If utilizing a Citypaid intern is possible to address data collection or routine work assignments, identify that opportunity and related cost savings.

V. Related Experience
Describe recent, directly related experience. Include on each listing the name of the client; description of the work done; primary client contact, address and telephone number; dates for the project; name of the Project Director and/or Manager and members of the proposed project team who worked on the project, as well as their respective responsibilities.

At least three references should be included. For each reference, indicate the reference's name, organization affiliation, title, complete mailing address and telephone number. The City of San Clemente reserves the right to contact any of the organizations or individuals listed.
982
9 VI. Project Schedule
Provide a schedule for completing each task in the work program, including deadlines for preparing all project deliverables.

VII. Cost Data
Indicate the total cost for which you will conduct the project by phase. Identify by project team member: name, classification, and the number of hours each member will spend on each work task.

Indicate separately, total cost for fees and expenses, including any proposed fee discount.

VIII. Statement of Compliance
Contractors must submit a Statement of Compliance with all parts of the Request for Proposal and Draft Agreement terms and conditions, or a listing of exceptions and suggested changes, along with a description of any cost implications or schedule changes the exceptions and/or changes cause. The Statement of Compliance must declare either:

A. This proposal is in strict compliance with the Request for Proposal and Draft Agreement and no exceptions to either are proposed; or
B. This proposal is in strict compliance with the Request for Proposal and Draft Agreement except for the items listed.

For each exception and/or suggested change, the contractor must include:

1. The suggested change in the RFP or rewording of the
contractual obligations.

2. Reasons for submitting the proposed exception or
change.

3. Any impact the change or exception may have on
project costs, scheduling or other considerations.
983
10 IX. Other Information
Include any other information you consider to be relevant to the proposal.

X. Consultant agrees that in carrying out its responsibilities under this agreement, and in particular with regard to the employment of persons and sub-contractors working on the project, it will not discriminate on the basis of race, color, creed, national origin, religion, sex, age, or handicap. In the event any of the work performed by consultant hereunder is sub-contracted to another person or firm (with approval of the City as required herein), subcontract shall contain a similar provision.

984
11 SUMMARY OF MAJOR COMPLIANCE REQUIREMENTS
The following highlights the key compliance elements contained in the City contract:

Meetings
This is a suggested schedule which is open to discussion.

1. Attend weekly progress meetings with the City's Project Manager.

2. Attend monthly meetings with Department Heads.

3. Conduct general meetings (2 - 3) open to employees, boards, and commissions for overview and discussion of study.

Reporting

1. Bi-weekly project report to City Project Manager including:
 Monthly report to Department Heads.
 Summary of work completed during previous two weeks.
 Discussion of any significant problems encountered or issues arising during the project.
 Percentage of project completion by work task.
 Explanation of variance between actual work task completed vis-a-vis the work plan.

2. Oral briefings/summary of project findings for presentation to City Project Manager.

3. Copies of the Draft Final Report, including Executive Summary, findings for presentation to City Project Manager.

4. Oral presentation of findings and recommendations to the City Council, City Manager, and employee groups.

Insurance Coverage
Prior to commencement of any project activities, consultant is to secure worker's compensation insurance, so as to be in compliance with State statutes and comprehensive general liability insurance, including auto and contractual liability coverage, in an amount not less than $1 million.
985
12 Please refer to the attached sample Professional Services Agreement for additional information regarding insurance requirements.

City of San Clemente Business License
The selected contractor will be required to have a current City business license as part of the Agreement. Please contact the City’s Business License office at (949) 361-6166 for additional information.
986
1 55452.01100\31193624.5

CITY OF SAN CLEMENTE

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 2025, by and between the City of San Clemente, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 910 Calle Negocio , San Clemente, California, 92673 ("City") and [INSERT NAME OF COMPANY], a [INSERT TYPE OF BUSINESS; I.E.,

CORPORATION (INCLUDE STATE OF INCORPORATION), LIMITED LIABILITY COMPANY, SOLE PROPRIETORSHIP, ETC.], with its principal place of business at [INSERT ADDRESS] ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional [INSERT TYPE] consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional [INSERT TYPE] consulting services to public clients, is licensed in the State of California, if applicable, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such professional [INSERT TYPE] consulting services for the [INSERT NAME OF PROJECT, AND CONTRACT NUMBER, IF APPLICABLE] project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional [INSERT TYPE] consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from [INSERT DATE] to [INSERT DATE], unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the 987
2 55452.01100\31193624.5
means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control, the City being only concerned with the finished results of the work being performed. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be solely responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Neither Consultant nor Consultant's employees shall in any event be entitled to any benefits to which City employees are entitled, including, but not limited to, overtime, retirement benefits, workers’ compensation benefits, injury leave or other leave benefits. Consultant is solely responsible for all such matters, as well as compliance with social security and income tax withholding and all other regulations and laws governing such matters.

3.2.2 PERS Eligibility and Employee Payments Indemnification. In the event that Consultant's employee providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions that would otherwise be the responsibility of the City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant's employees providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contributions to be paid by City for employer contributions and/or employee contributions for PERS benefits. Consultant agrees to defend and indemnify the City for any obligation, claim, suit or demand for tax, retirement contribution including any contribution to the PERS, social security, salary or wages, overtime payment, or workers’ compensation payment that the City may be required to make for work done under this Agreement. The provisions of this section 3.2.2 are continuing obligations that shall survive expiration or termination of this Agreement.

3.2.3 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.4 Endorsement on PS&E/ Other Data. Consultant shall sign all plans, specifications, estimates (PS&E) and engineering data furnished by Consultant, and where appropriate will indicate Consultant’s authorized signature and professional registration number.

3.2.5 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
988
3 55452.01100\31193624.5

3.2.6 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: [INSERT NAME AND TITLE].

3.2.7 City's Representative. The City hereby designates [INSERT NAME AND TITLE], or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.8 Consultant's Representative. Consultant hereby designates [INSERT NAME AND TITLE], or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.9 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.10 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed 989
4 55452.01100\31193624.5
from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.11 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Insurance. Consultant agrees to procure and maintain, at Consultant’s expense all insurance specified in Exhibit “C” attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "D" attached hereto and incorporated herein by reference. The total compensation shall not exceed [INSERT AMOUNT WRITTEN OUT] ($[INSERT NUMBER]) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any 990
5 55452.01100\31193624.5
expenses unless authorized in writing by City, or included in Exhibit "D" of this Agreement.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “D” may be adjusted each year at the time of renewal as set forth in Exhibit “D.”

3.3.6 Labor Code Requirements.

3.3.6.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.6.2 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code sections 1725.5 and 1771.1 shall not apply to Services performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code sections 1725.5 and 1771.1.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement.
991
6 55452.01100\31193624.5

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time, with or without cause, by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: [INSERT BUSINESS NAME]
[INSERT STREET ADDRESS]
[INSERT CITY STATE ZIP]
ATTN: [INSERT NAME AND TITLE]
City: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
ATTN: [INSERT NAME AND TITLE]
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents 992
7 55452.01100\31193624.5
and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.

3.5.6 Indemnification.

3.5.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the 993
8 55452.01100\31193624.5
Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.5.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other 994
9 55452.01100\31193624.5
default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City, state and federal grant requirements and related programs, policies and guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts/Electronic Signatures. This Agreement may be signed in counterparts, each of which shall constitute an original. This Agreement may be signed with the same force and effect as original ink signatures.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
995
10 55452.01100\31193624.5
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 2025
____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization

__________________________
(“CONSULTANT”)
By:_____________________________
(Name, Title)
Dated: __________________, 2025
By:_____________________________
(Name, Title)
Dated: __________________, 2025
996
11 55452.01100\31193624.5
EXHIBIT "A"

SCOPE OF SERVICES
Consultant shall perform the following services for the City (collectively, the “Services”):
997
12 55452.01100\31193624.5
EXHIBIT "B"

SCHEDULE OF SERVICES
Consultant shall diligently perform the services to the City’s satisfaction and as set forth in the attached proposal from [INSERT NAME OF COMPANY] dated [INSERT DATE OF PROPOSAL], which is incorporated fully herein by this reference. 998
55452.01100\31193624.5
13 EXHIBIT “C”

INSURANCE REQUIREMENTS

3.2.12 Insurance.

3.2.12.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.12.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. [***NOTE:

If Consultant does not own any company vehicles or may not be able to purchase a Business Automobile Insurance Policy, the requirement may be satisfied by providing either of the following: (1) a Personal Automobile Liability policy for the Consultant's own vehicle stipulating "Automobile Liability Insurance with a limit of not less than $1,000,000 each accident"; and (2) a non-owned auto endorsement to the Commercial General Liability policy if Consultant uses vehicles of others (e.g., vehicles of employees). (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000 per claim. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial 999
55452.01100\31193624.5
14 Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. (E) Cyber Liability Insurance with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

3.2.12.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

3.2.12.4 Professional Liability (Errors & Omissions):
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.

3.2.12.5 Workers' Compensation:
1000
55452.01100\31193624.5
15 (A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

3.2.12.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.12.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.2.12.8 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention greater than $5,000 must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.12.9 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.12.10 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.

3.2.12.11 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A- VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
1001
55452.01100\31193624.5
16 3.2.12.12 Enforcement of Agreement Provisions (non estoppel).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.2.12.13 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

3.2.12.14 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

1002
55452.01100\31193624.5
17 EXHIBIT “D”

COMPENSATION
In full compensation for the Services rendered by the Consultant under the Agreement, the City shall pay the Consultant the following lump sum, fixed price: $ There are no reimbursable expenses under this Agreement. 1003
55452.01100\31193624.5
18 WORKER’S COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION

I hereby affirm under penalty of perjury one of the following declarations:

(ONE OF THE BOXES BELOW MUST BE CHECKED)
I have and will maintain a certificate of consent from the California Labor Commission to self-insure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract.

I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract. My workers' compensation insurance carrier and policy number are:

Carrier____________________________________________________ Policy Number______________________________________________

I certify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of San Clemente and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and property damage arising out of my failure to provide such worker’s compensation insurance. I further agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.

WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION

COVERAGE IS UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO

CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY’S FEES.
1004
55452.01100\31193624.5
19 Dated: ________________________, 20____
________________________________
(“CONSULTANT”)
By: ________________________________
________________________________
Title
________________________________
Address
________________________________
1005
Water Resources Economics, LLC
Request for Proposal
#UT 2425Ͳ01
City of San Clemente
Cost of Service Study for
City’s Water Utility
Due Date: February 11, 2025 at 4pm
Contact: Sanjay Gaur
Water Resources Economics, LLC
10830 Pickford Way Culver City, CA 90230
sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405
$WWDFKPHQW
1006
This page intentionally left blank
1007
Water Cost of Service Study
City of San Clemente

Water Resources Economics / sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405 February 10, 2025
Dustin Burnside
Utilities Manager
City of San Clemente
Utilities Division
Subject: City of San Clemente Cost of Service Study for City’s Water Utility (#UT 2425Ͳ01) Dear Mr. Burnside,
Water Resources Economics, LLC (WRE) is pleased to submit this proposal to the City of Clemente (City) to conduct a Water Cost of Service Study. The City is seeking a consultant that is an expert in conducting water cost of service studies in California and that understands the challenges that agencies face in adopting rates. WRE is wellͲqualified to provide this service.

I have conducted hundreds of utility rate studies over the last 25 years throughout California, and my expertise is in developing rates that can withstand different financial and legal challenges. Through this experience I have developed a deep understanding of the various technical, political, and regulatory standards associated with designing utility rates. I have included my resume showing the agencies I have worked with over the last two decades, along with numerous published articles I have authored on this subject. I will be assisted by either Hannah Phan, Nancy Phan, and/or Charles Diamond in the role of Project Analyst. All three of these individuals have at least eight years of consulting experience providing financial planning, rateͲsetting, and miscellaneous fees development services to numerous public utilities in California.

I believe our combined experience uniquely qualifies us for this engagement. We understand the various technical, political, and regulatory standards associated with designing utility rates and have assisted many similar agencies with successfully implementing rates that comply with Proposition 218 requirements.

I am authorized to negotiate and execute contracts on behalf of WRE. This proposal is a firm and irrevocable offer for 90 days. If you have any questions, please contact me at 213Ͳ327Ͳ4405 or by email at sgaur@waterͲeconomics.com. We appreciate the opportunity to submit our proposal, and it would be our pleasure to assist the City on this important project.

Sincerely,
Sanjay Gaur, President
10830 Pickford Way Culver City, CA 90230
sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405

1008
Water Cost of Service Study
City of San Clemente

Water Resources Economics / sgaur@waterͲeconomics.com / 213Ͳ327Ͳ4405

TABLE OF CONTENTS
BACKGROUND AND APPROACH............................................................................................................. 3 METHODOLOGY ..................................................................................................................................... 3 WORK PLAN ........................................................................................................................................... 4 PROJECT ORGANIZATION AND STAFFING ............................................................................................ 11 RELATED EXPERIENCE .......................................................................................................................... 14 QUALIFICATIONS AND EXPERIENCE ..................................................................................................... 16 SCHEDULE ............................................................................................................................................ 19 COST PROPOSAL .................................................................................................................................. 20 STATEMENT OF COMPLIANCE.............................................................................................................. 21 RESUMES ............................................................................................................................................. 22
1009
Water Cost of Service Study
City of San Clemente

Page 3 ends

San Clemente City CouncilMay 6, 2025

San Clemente City Council
May 6, 2025