San Clemente City Council
June 17, 2025

910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
Mayor Knoblock
Mayor Pro Tem Enmeier
Councilmember Cabral
Councilmember Loeffler
Councilmember Wu
5:00 P.M. - Closed Session
5:30 p.m. - Business Meeting

CITY OF SAN CLEMENTE
Tuesday, June 17, 2025
City Council
Special and Regular Meeting Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

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

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

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

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

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

1 City Council Special and Regular Meeting Agenda June 17, 2025

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS
Pursuant to Government Code § 84308, City Council Members are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the City Council Member received more than $500 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City’s decision on the agenda item since January 1, 2023. Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $500 to a City Council Member since January 1, 2023, are required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration.

CLOSED SESSION (SPECIAL MEETING 5:00 P.M.)
A. CLOSED SESSION WITH AGENCY COUNSEL ON MATTERS POSING A

SECURITY THREAT
Closed Session with the City Attorney pursuant to Government Code section 54957(a) on matters posing a threat to the security of essential public services, a threat to the public’s right of access to public services, or a threat to critical infrastructure controls or critical infrastructure information relating to cybersecurity.

BUSINESS MEETING (5:30 P.M.)

CALL TO ORDER
INVOCATION – Ryder Steimle, San Clemente Stake Interfaith Specialist, Church of Jesus Christ of Latter-Day Saints

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
None.

2. Council Member Reports

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

2 City Council Special and Regular Meeting Agenda June 17, 2025 posed, request clarification or refer the item to staff.

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

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

6. Closed Session Report - City Attorney

7. Staff Communications

8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.
8A. DE NOVO APPEAL HEARING TO CONSIDER APPROVING PROJECT 24-328/ SHORT-TERM APARTMENT RENTAL PERMIT 24-329, WYATT

STAR, TO ESTABLISH TWO SHORT TERM RENTAL UNITS (UNITS B AND C), AND ONE MANAGER’S UNIT (UNIT A) LOCATED AT 166 AVENIDA ARAGON; AND FINDING THAT THE PROJECT IS CATEGORICALLY

EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTION 15301 (CLASS 1: EXISTING FACILITIES)
A de novo public hearing will be held to consider a City Council initiated appeal of the Zoning Administrator’s approval of Short-Term Apartment Rental (STAR)24-329, Wyatt STAR, 166 Avenida Aragon, which approved one short term apartment rental (Unit B), one long term rental (Unit C), and one manager’s unit (Unit A), located at 166 Avenida Aragon.

The City Council 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).

Staff Recommendation

1. Conduct a de novo public hearing.

2. Determine the project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

3. Adopt Resolution No. 25-84 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,
APPROVING PHP24-328, STAR24-329, TO ESTABLISH ONE SHORT

TERM RENTAL (UNIT B) ONE LONG TERM RENTAL (UNIT C), AND ONE MANAGER’S UNIT (UNIT A) LOCATED AT 166 AVENIDA

3 City Council Special and Regular Meeting Agenda June 17, 2025 ARAGON; AND FINDING THAT THE PROJECT IS CATEGORICALLY

EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES
SECTION 15301 (CLASS 1: EXISTING FACILITIES).

9. Unfinished Business
None.

10. New Business
10A. RECONSIDERATION OF A RESOLUTION TO INITIATE A ZONING

AMENDMENT RELATED TO THE AMORTIZATION PROCESS OF

SHORT-TERM LODGING UNITS, AND REQUEST FOR FURTHER

CONSIDERATION OF HOTEL-DEVELOPMENT OPPORTUNITIES FOR

ENHANCEMENT OF TRANSIENT OCCUPANCY TAX REVENUE
(Agendized by Councilmember Loeffler, with the support of Councilmember Wu and Mayor Pro Tem Enmeier at the June 3, 2025 City Council meeting.) Staff Recommendation
Adopt Resolution No. 25-85, which will:

1. Revoke the City Council’s previous direction on May 20, 2025 regarding initiation of a zoning amendment related to the amortization process of short-term lodging units and consideration of hotel-development opportunities for enhancement of transient occupancy tax revenue.

2. Initiate a zoning amendment to increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

3. Initiate a zoning amendment to expand the allowed areas or capacities for STLUs, with a focus on non-residential areas, such as mixed-use and commercial zones, and explore opportunities for a limited-term expansion related to the 2028 Olympics or other major regional events in such zones as well as residential zones.

4. Initiate an amendment to the Marblehead Coastal Specific Plan and carry out required environmental review to identify the hotel site on the Outlets property as a landmark building, and “fast track” the process by bringing the item directly back to the City Council for consideration and action.

5. Maintain the status quo in processing applications for short term lodging units (STLU) to short term apartment rentals (STAR) conversions on a first-come, first-served basis in the order in which such applications are deemed complete, not from the date upon which they are submitted and apply current 300-foot minimum separation requirements.

4 City Council Special and Regular Meeting Agenda June 17, 2025 10B. CONSIDERATION OF REVISING PURCHASING POLICY AND

INTRODUCTION AND CONDUCTING A FIRST READING OF ORDINANCE NO. 1793 AMENDING SECTIONS 3.40.050 AND 3.40.080 OF SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE

RELATING TO PURCHASING PROCEDURES
Staff Recommendation

1. Adopt the revised Purchasing Policy, Attachment 1 to the Administrative Report dated June 17, 2025 and on file with the City Clerk, to take effect if/when Ordinance No. 1793 is adopted.

2. Introduce and conduct a first reading of Ordinance No. 1793 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.40, SECTIONS 3.40.050 AND

3.40.080 RELATING TO PURCHASING PROCEDURES.
10C. ADOPTION OF SECTION 115 PENSION INVESTMENT POLICY
Staff Recommendation
Adopt the Section 115 Pension Investment Policy Number 202-3, effective June 17, 2025.
10D. CONSIDERATION OF A RESOLUTION TO SELECT PUBLIC AGENCY RETIREMENT SERVICES (PARS) AS THE CITY’S SECTION 115 PENSION

INVESTMENT TRUST ADMINISTRATOR AND IMPLEMENT AN INVESTMENT

STRATEGY ACCORDING TO THE RECOMMENDATIONS OF THE

INVESTMENT ADVISORY COMMITTEE
Staff Recommendation
Adopt Resolution No. 25-86, which will:

1. Approve, and authorize the City Treasurer to execute, Contract No. C25- 31, by and between the City of San Clemente and Public Agency Retirement Services (PARS), to administer the City’s Section 115 Pension Investment Trust Fund (115 Trust).

2. Approve the Investment Advisory Committee recommendation to select the Capital Appreciation portfolio within the Tactical Management investment strategy.

3. Authorize the preliminarily funding of the 115 Trust in the amount of $1.18 million from General Fund account number 001-203-48630.

4. Authorize and direct staff to take such other and further actions and

5 City Council Special and Regular Meeting Agenda June 17, 2025 execute such other and further documents as may be necessary to accomplish the purposes of this resolution.
10E. CONSIDERATION OF A RESOLUTION CONCERNING THE SAN CLEMENTE

LIFEGUARD STATUE MAINTENANCE AGREEMENT AND CLARIFICATION

OF COUNCIL INTENT REGARDING MAINTENANCE RESPONSIBILITIES Staff Recommendation
Adopt Resolution No. 25-87, which will:

1. Repeal and replace Resolution No. 24-139.

2. Adopt a new resolution approving the maintenance agreement for the San Clemente Lifeguard Statue and clarifying that the City of San Clemente shall assume responsibility for all ongoing maintenance.

3. Approve, and authorize the City Manager to execute, Contract No. C25- 32, by and between the City of San Clemente and San Clemente Lifeguard Foundation, providing for Donation, Installation and Maintenance of Public Artwork.

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

A. City Council Minutes
Staff Recommendation:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF JUNE 3, 2025.

B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
(1) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF MAY 8, 2025.
(2) PLANNING COMMISSION REGULAR MEETING MINUTES OF MAY 21, 2025.
(3) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF MAY 22, 2025.
(4) ZONING ADMINISTRATOR ADJOURNED MEETING MINUTES OF
JUNE 4, 2025.

6 City Council Special and Regular Meeting Agenda June 17, 2025 C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
3248 THROUGH 3255 AND WARRANT NOS.
604960 THROUGH 605134, PAID ON
5-30-25, IN THE AMOUNT OF $1,568,903.25
(2) APPROVE WARRANT NOS.
605135 THROUGH 605270, PAID ON
6-6-25, IN THE AMOUNT OF $1,478,189.24
TOTAL WARRANT REGISTER $3,047,092.49
Payroll Register
APPROVE WARRANT NOS. 979 THROUGH
982 AND AUTOMATIC DEPOSIT ADVISES
103330 THROUGH 103703, FOR THE PERIOD
5-12-25 THROUGH 5-25-25, PAID
ON 5-30-25, IN THE AMOUNT OF $552,274.89
TOTAL PAYROLL REGISTER $552,274.89
11D. ADOPT ORDINANCE NO. 1791 (SECOND READING) - AMENDING EXHIBIT "A" OF CHAPTER 8.22 OF THE SAN CLEMENTE MUNICIPAL CODE,

RELATING TO THE VERY HIGH, HIGH AND MODERATE FIRE HAZARD

SEVERITY ZONES
Staff Recommendation
Adopt Ordinance No. 1791 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING EXHIBIT “A” OF CHAPTER 8.22 OF THE SAN CLEMENTE MUNICIPAL CODE TO

INCLUDE UPDATES TO THE MAP CLASSIFICATION OF MODERATE, HIGH

AND VERY HIGH FIRE HAZARD SEVERITY ZONES WITHIN THE CITY OF SAN CLEMENTE.

7 City Council Special and Regular Meeting Agenda June 17, 2025 11E. NOTICE OF COMPLETION - CITY HALL STANDBY GENERATOR ADDITION

AND ELECTRICAL DISTRIBUTION SYSTEM UPGRADE
Staff Recommendation
Adopt Resolution No. 25-88, which will:

1. Accept the City Hall Standby Generator Addition and Electrical Distribution System Upgrade, CIP Project No. 14812, from the contractor, ACE Capital Engineering, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed City Hall Standby Generator Addition and Electrical Distribution System Upgrade.

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, ACE Capital Engineering, 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. 11F. CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2023-112, 229 AVENIDA MONTEREY CONDOMINIUM SUBDIVISION
Staff Recommendation
Adopt Resolution No. 25-89, which will:

1. Approve the Final Parcel Map 2023-112 as it conforms to the requirements set forth in the Subdivision Map Act and the previously approved Tentative Parcel Map.

2. Accept on behalf of the City of San Clemente the water rights as dedicated.

3. Authorize and direct the Public Works Director/City Engineer to execute the Final Parcel Map.

4. Authorize and direct the City Clerk to execute and submit the Final Parcel Map for recordation with the County of Orange Recorder’s Office.

8 City Council Special and Regular Meeting Agenda June 17, 2025 11G. CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2018-137, 3 LOT SUBDIVISION AT 143 NORTH LA ESPERANZA
Staff Recommendation
Adopt Resolution No. 25-90, which will:

1. Approve the Final Parcel Map 2018-137 as it conforms to the requirements set forth in the Subdivision Map Act and the previously approved Tentative Parcel Map.

2. Accept on behalf of the City of San Clemente the water rights as dedicated.

3. Authorize and direct the Public Works Director/City Engineer to execute the Final Parcel Map.

4. Authorize and direct the City Clerk to execute and submit the Final Parcel Map for recordation with the County of Orange Recorder’s Office..... 11H. CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2018-172, 405 PASADENA COURT CONDOMINIUM SUBDIVISION
Staff Recommendation
Adopt Resolution No. 25-91, which will:

1. Approve the Final Parcel Map 2018-172 as it conforms to the requirements set forth in the Subdivision Map Act and the previously approved Tentative Parcel Map.

2. Accept on behalf of the City of San Clemente the sidewalk and pedestrian access easement as dedicated.

3. Accept on behalf of the City of San Clemente the water rights as dedicated.

4. Authorize and direct the Public Works Director/City Engineer to execute the Final Parcel Map upon verification that the conditions, covenants and restrictions (CC&Rs) and payment of the review fees have been completed and approved by the City Attorney and City Planner.

5. Authorize and direct the City Clerk to execute and submit the Final Parcel Map for recordation with the County of Orange Recorder’s Office...recommendation

9 City Council Special and Regular Meeting Agenda June 17, 2025 11I. CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY TO ENTER

INTO A REGIONAL CONTRACT BETWEEN THE SOUTH ORANGE COUNTY WASTEWATER AUTHORITY (SOCWA), JCI JONES CHEMICAL, INC., AND

SOCWA ENTITIES FOR SUPPLY OF SODIUM HYPOCHLORITE TO THE

WATER RECLAMATION PLANT FOR WASTEWATER TREATMENT
Staff Recommendation
Adopt Resolution No.25-92, which will:

1. Authorize the City to enter into the regional contract with South Orange County Wastewater Authority (SOCWA), JCI Jones Chemical, Inc., and South Orange County Wastewater Authority (SOCWA) entities for a one-year term for the supply of Sodium Hypochlorite to the City’s Water Reclamation Plant and authorize the City Manager to execute the contract in an amount not to exceed $185,400 for the initial one-year term.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 33, by and between the City of San Clemente and South Orange County Wastewater Authority (SOCWA), JCI Jones Chemical, Inc., South Orange County Wastewater (SOCWA) entities, providing for a supply of Sodium Hypochlorite to the Water Reclamation Plant for wastewater treatment, in an amount not to exceed $185,400 for the initial one-year term.

3. Authorize the Public Works Director to approve up to three one-year renewals to the contract for amounts not to exceed the approved budget amounts for this chemical in each appropriate fiscal year. 11J. CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY TO ENTER

INTO A REGIONAL CONTRACT BETWEEN THE SOUTH ORANGE COUNTY WASTEWATER AUTHORITY (SOCWA), NORTHSTAR CHEMICAL, INC., AND

SOCWA ENTITIES FOR SUPPLY OF SODIUM HYDROXIDE TO THE WATER

RECLAMATION PLANT FOR WASTEWATER TREATMENT
Staff Recommendation
Adopt Resolution No. 25-93, which will:

1. Authorize the City to enter into the regional contract with South Orange County Wastewater Authority (SOCWA), NorthStar Chemical, Inc., and South Orange County Wastewater Authority (SOCWA) entities for a one-year term for the supply of Sodium Hydroxide to the City’s Water Reclamation Plant.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 34, by and between the City of San Clemente and South Orange County Wastewater Authority (SOCWA), NorthStar Chemical, Inc., and South

10 City Council Special and Regular Meeting Agenda June 17, 2025 Orange County Wastewater Authority (SOCWA) entities providing for the supply of Sodium Hydroxide to the City’s Water Reclamation Plant, in an amount not to exceed $37,320 for the initial one-year term.

3. Authorize the Public Works Director/City Engineer to approve up to three one-year renewals to the contract for amounts not to exceed the approved budget amounts for this chemical in each appropriate fiscal year. 11K. CONTRACT AWARD - ENGINEERING SERVICES RELATED TO THE

CALAFIA COMPLETE STREETS, ACCEPTING GRANT FUNDING AND

MAKING A SUPPLEMENTAL APPROPRIATION RELATED THERETO
Staff Recommendation
Adopt Resolution No. 25-94, which will:

1. Accept the federal Complete Streets Program grant for the Project Approval & Environmental Documents (PA&ED) and Plans, Specifications & Estimate (PS&E) project phases in the amount of $176,000 (Revenue Account No. 011-000-33180-000-15319).

2. Approve a supplemental appropriation in the amount of $149,196 from the State SB-1 Road Maintenance Rehabilitation Account (RMRA) Funds to project expenditure Account No. 011-864-45300-000-15319.

3. Award a Professional Services Agreement to Chen Ryan Associates, Inc. for engineering support services for the Calafia Complete Streets Project, CIP Project No. 15319.

4. Approve, and authorize the City Manager to execute, Contract No. C25- 35, by and between the City of San Clemente and Chen Ryan Associates, Inc., providing for engineering support services for the Calafia Complete Streets Project, in an amount not to exceed $279,196.

5. Authorize the City Manager and/or the Public Works Director/City Engineer to execute all necessary applications, tentative agreements, and/or other such documents/actions required to complete the design and permitting of the project with the California Coastal Commission, California State Parks, and any other necessary parties.

11 City Council Special and Regular Meeting Agenda June 17, 2025 11L. CONTRACT AWARD - WATER QUALITY ANALYSIS LABORATORY

SERVICES
Staff Recommendation
Adopt Resolution No. 25-95, which will:

1. Award a three-year Professional Services Agreement to Sierra Analytical Labs, Inc. for Water Quality Analysis Laboratory Services for a total amount not to exceed $418,923 during the first three years, plus two additional one-year options.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 36, by and between the City of San Clemente and Sierra Analytical Labs, Inc., providing for Water Quality Analysis Laboratory Services - Routine and On-Call, in an amount not to exceed $ 418,923 (Attachment 3).

3. Authorize the City Manager to administratively approve up to two, one-year extensions to the Agreement that do not exceed the City Council approved budgeted amounts for each fiscal year.
11M. CONTRACT AWARD - FY 2026 ARTERIAL STREET IMPROVEMENT

PROGRAM, AND FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-96, which will:
..recommendation

1. Find the FY 2026 Arterial Street Improvement Program, CIP Project No. 16317, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award the FY 2026 Arterial Street Improvement Program, CIP Project No. 16317, contract to American Asphalt South, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C25- 37, by and between the City of San Clemente and American Asphalt South, Inc., providing for the FY 2026 Arterial Street Improvement Program, in an amount not to exceed $714,938, in a form substantially similar to Contract No. 25-37 (Attachment 3).

12 City Council Special and Regular Meeting Agenda June 17, 2025 11N. CONTRACT AWARD - PURCHASE OF ARCTICWOLF SECURITY

SOFTWARE AND SERVICES
Staff Recommendation
Adopt Resolution No. 25-97, which will:

1. Award Bid IT-25-01 to Savant Solutions, Inc.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 38, by and between the City of San Clemente and Savant Solutions, Inc., for the purchase of the ArcticWolf Security Solution under substantially the same terms and conditions of State of California Contract SLP-23-70- 0276O, in an amount not to exceed $65,641, which includes all services, equipment and software, training, maintenance, and support.

3. Authorize City staff to accept the ArcticWolf Master Services Agreement and other related service agreements with ArcticWolf.
11O. CONTRACT AMENDMENT - WATER CONSERVATION PARTICIPATION

AGREEMENT BETWEEN THE CITY OF SAN CLEMENTE AND THE

MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC), AND

FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-98, which will:

1. Determine that this project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 7 of the state CEQA Guidelines Section 15307 (14 CCR Section 15307, Actions By Regulatory Agencies For Protection Of Natural Resources).

2. Approve the Second Amendment to the Water Conservation Participation Agreement with the Municipal Water District of Orange County, extending the Agreement from July 1, 2025 through June 30, 2035.

3. Approve, and authorize the City Manager to execute, Amendment No. 2 to Contract No. AC-733, by and between the City of San Clemente and the Municipal Water District of Orange County, to the Water Conservation Participation Agreement, extending the Agreement from July 1, 2025 through June 30, 2035. (Attachment 1).

13 City Council Special and Regular Meeting Agenda June 17, 2025 11P. CONTRACT AMENDMENT - STREET SWEEPING SERVICES FOR ONE

YEAR, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-99, which will:

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

2. Approve, and authorize the City Manager to execute, Amendment No. 2 to Contract No. C21-22, by and between the City of San Clemente and Sweeping Corporation of America (SCA), providing for Street Sweeping services, for a one-year term, in the amount of $598,138. 11Q. CONSIDERATION OF A RESOLUTION APPROVING A PARKING

AGREEMENT BETWEEN CHABAD JEWISH CENTER AND THE CITY OF

SAN CLEMENTE
Staff Recommendation
Adopt Resolution No. 25-100, which would approve, and authorize the City Manager to execute, Contract No. C25-39, the Parking Agreement, by and between the City of San Clemente and Chabad Jewish Center, included as Exhibit A to the proposed Resolution (Attachment 1) for an initial annual license fee of $1,000 and an initial term of five years with one five-year option exercisable in the City Manager’s discretion.
11R. CONSIDERATION OF A RESOLUTION REGARDING RED CURB

INSTALLATION AT THE DRIVEWAY OF THE SEVILLE SENIOR COMMUNITY LOCATED AT 2421 CALLE FRONTERA, 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
Planning Commission and Staff Recommendation
Adopt Resolution No. 25-101, which will:

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

2. Approve the red curb installation as illustrated in Attachment 1 of the Administrative Report dated June 17, 2025 and on file with the City Clerk.

14 City Council Special and Regular Meeting Agenda June 17, 2025 11S. ACCEPTANCE OF GRANT FROM CALIFORNIA COASTAL COMMISSION,

AUTHORIZING AN APPROPRIATION, AND AWARDING PROFESSIONAL

SERVICES AGREEMENTS
Staff Recommendation
Adopt Resolution No. 25-102 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ACCEPTING A GRANT

AWARD FROM THE CALIFORNIA COASTAL COMMISSION FOR FUNDING

TO CONDUCT A BEACH ATTENDANCE AND FISCAL IMPACT ANALYSIS OF

THE BEACH STUDY, AWARDING PROFESSIONAL SERVICES

AGREEMENTS TO CETO CONSULTING, LLC AND SURFLINE/WAVETRAK, INC. RELATED THERETO AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENTS.
11T. CONSIDERATION OF A RESOLUTION DIRECTING STAFF TO NEGOTIATE NECESSARY BUDGET REVISIONS TO A $1.8 MILLION GRANT AWARD FOR CLEAN MOBILITY OPTIONS (CMO) VOUCHER PILOT PROGRAM’S 2023 MOBILITY PROJECT VOUCHER, TO ENABLE THE PURCHASE OF

ALTERNATIVE, QUALIFYING ELECTRIC VEHICLES, AND FINDING THE

PROJECT STATUTORILY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT UNDER CALIFORNIA PUBLIC
RESOURCES CODE § 21080.25.

Staff Recommendation
Adopt Resolution No. 25-103, which will:

1. Direct the City Manager, or designee, to negotiate necessary budget revisions to the Clean Mobility Options (CMO) Voucher Pilot Program Grant, to enable the purchase of the alternative, qualifying vehicles consistent with City Council recommendation and requirements of the grantor.

2. Find the Clean Mobility Options (CMO) Voucher Pilot Program, as modified, statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to California Public Resources Code § 21080.25.

15 City Council Special and Regular Meeting Agenda June 17, 2025 11U. CONSIDERATION OF A RESOLUTION TO ACCEPT OCTA MEASURE M2 PROJECT V GRANT FUNDING OF $8,235,081, APPROVE FIRST

AMENDMENT TO TWO PROFESSIONAL SERVICES AGREEMENTS WITH

LAZ PARKING CALIFORNIA LLC FOR ADDITIONAL TROLLEY OPERATION

SERVICES, APPROVE A SOLE SOURCE PURCHASE OF A TROLLEY FROM HOMETOWN MANUFACTURING, INC., APPROVE RELATED
SUPPLEMENTAL APPROPRIATIONS TOTALING $1,223,238.88 FOR ALL

LINES, AND FINDING THE ACTIONS STATUTORILY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-104, which will:
..recommendation

1. Find the project statutorily exempt from the California Environmental Quality Act (CEQA) under Public Resources Code section 21080(b)(10).

2. Accept the Orange County Transportation Authority (OCTA) 2024 Project V Grant for trolley operations in the amount of $8,235,081 (to Local Transit Program revenue Account No. 021-000-33757).

3. Approve a supplemental appropriation in the amount of $1,223,238.88 to the Local Transit Program revenue Account No. 021-000-33757, which will offset the trolley contract expenditure Account No. 021-808-43690.

4. Approve a supplemental appropriation in the amount of $214,875.90 from the Local Transit Program revenue Account No. 021-000-33757 to the Local Transit Program automotive equipment expenditure Account No. 021-808-45600.

5. Approve a supplemental appropriation in the amount of $23,875.10 from the General Fund Balance to the Local Transit Program automotive equipment expenditure Account No. 021-808-45600.

6. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No C24-33, by and between the City of San Clemente and LAZ Parking California, LLC., providing for Red and Blue Line trolley services, increasing the total not to exceed contract amount from $1,871,665.80 to $2,272,021.06 ($400,355.26 increase).

7. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No C24-34, by and between the City of San Clemente and LAZ Parking California, LLC., providing for Green Line trolley services, increasing the total not to exceed contract amount from $545,092.08 to $820,721.22 ($275,629.14 increase).

16 City Council Special and Regular Meeting Agenda June 17, 2025

8. Approve a sole source procurement and authorize the City Manager and/or Public Works Director to execute all necessary documents and agreements to purchase a trolley in the amount of $238,751 through Hometown Manufacturing LLC (Local Transit Program automotive equipment expenditure Account No. 021-808-45600).
11V. CONSIDERATION OF A RESOLUTION TO ACCEPT OCTA MEASURE M2

PROJECT V GRANT FUNDING, APPROVE A SUPPLEMENTAL
APPROPRIATION IN THE AMOUNT OF $150,000, AWARDING A
PROFESSIONAL SERVICES AGREEMENT TO LYFT, INC. FOR SAN

CLEMENTE RIDESHARE SERVICES PROGRAM (SC RIDES), AUTHORIZING

THE CITY MANAGER TO EXECUTE THE AGREEMENT AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-105, which will:
..recommendation

1. Find the project statutorily exempt from the California Envriornmental Quality Act (CEQA) under Public Resources Code section 21080(b)(10).

2. Accept the Orange County Transportation Authority (OCTA) 2024 Project V Grant for on-demand transit service in the amount of $3,264,428 (to Local Transit Program revenue Account No. 021-000-33790).

3. Approve a supplemental appropriation in the amount of $150,000 from the Local Transit Program revenue account 021-000-33790 to the SC Rides contract expenditure Account No. 021-808-43890.

4. Award a three-year Professional Services Agreement contract to Lyft, Inc. for on-demand SC Rides rideshare services with the option, at the City's sole discretion, to award two additional years.

5. Approve, and authorize the City Manager to execute, Contract No. C25- 40, by and between the City of San Clemente and Lyft, Inc., providing for on-demand SC Rides rideshare services with the option, at the City's sole discretion, to award two additional years upon successful demonstration of exemplary contract performance, in an amount not to exceed $1,050,000, in a form substantially similar to that presented to City Council on June 17, 2025.

17 City Council Special and Regular Meeting Agenda June 17, 2025

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

13. Future Agenda Items

14. Reports
A. City Attorney
B. City Manager

15. Adjournment
The next Regular City Council Meeting is scheduled to take place on August 5, 2025.

Closed Session will begin at 4:30 p.m. and the Regular Business Meeting will begin at 5:30 p.m. The meeting will take place in the Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

Please note that the Regular City Council meetings of July 1 and 15 were previously canceled.

18 City Council Special and Regular Meeting Agenda June 17, 2025

CITY COUNCIL MEETING PROCEDURES

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

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

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

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

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

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

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

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

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

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

19 910 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: June 17, 2025 Agenda Item: 8A.

Submitted By: Planning Division
Prepared By: Jonathan Lightfoot, City Planner
Araceli Mejia, Assistant Planner
Subject:
..titl e
DE NOVO APPEAL HEARING TO CONSIDER APPROVING PROJECT 24-328/ SHORT-TERM APARTMENT RENTAL PERMIT 24-329, WYATT STAR, TO ESTABLISH TWO SHORT TERM RENTAL UNITS (UNITS B AND C), AND ONE MANAGER’S UNIT (UNIT A) LOCATED AT 166 AVENIDA ARAGON; AND FINDING THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTION 15301 (CLASS 1:

EXISTING FACILITIES)
..body
Fiscal Impact:

Permitted short term lodging units (STLUs), including short-term apartment rentals (STARs) units, typically provide about $5,000 each in annual transient occupancy tax revenue.

Summary:

The property owners, Jill and Will Wyatt, of 166 Avenida Aragon, request STAR permits for two residential units within a duplex on their property while the property manager would reside in a permitted accessory dwelling unit (ADU) also on the site. The project site is a 5,997 square foot lot in the Residential Medium (RM) Zoning District and Coastal Zone (CZ) Overlay. The singlefamily residential building was remodeled into a legal duplex via building permit B21-0701, that received final approval in March 2024. Concurrently, the attached, single car garage was converted into an ADU via building permit B21-1132, that received final approval in February 2024. Attachment 2 provides current site and floor plans of the property. Figure 1, below, provides an image of the property as viewed from the street.

Figure 1
20 Meeting Date: June 17, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 2
STAR permits require review by the Zoning Administrator. The requisite public hearing occurred on April 17, 2025. The Zoning Administrator considered public comment, including concerns from neighbors related to parking, safety, and potential noise nuisance. Ultimately, the Zoning Administrator approved one unit for a STAR instead of the two requested, due to its proximity to the public park and public school, where street parking is in limited supply and parking in certain areas is prohibited at night. The Zoning Administrator found that in this location, two STAR units cannot be adequately accommodated without risk of detriment to public health, safety, and welfare. Furthermore, the Zoning Administrator found that due to the small size of the property and the limited non-conforming parking on site, two STAR units would be materially injurious to properties in the vicinity because some guests unfamiliar with the neighborhood would likely impact neighborhood parking more than long-term residents who are more familiar with limited parking on site. The minutes of the Zoning Administrator meeting of April 17, 2025 are provided as Attachment 4. Figure 2, below, provides a vicinity map of the area surrounding the project site.

Figure 2
The Zoning Administrator determined that one STAR could be accommodated on site, consistent with code requirements and compliance with appropriate conditions of approval, which require an on-site property manager to be adequately trained to address guest issues directly, in order to minimize expending City enforcement resources. The property owner and property manager would also be required to prominently identify within its advertising and listings on short-term 21 Meeting Date: June 17, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 3
rental platforms that the maximum occupancy of the unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces.

On May 6, 2025, the City Council appealed the Zoning Administrator’s decision on this application upon review of the Zoning Administrator Minutes of April 17, 2025. The minutes of this City Council meeting are provided as Attachment 5. This item was subsequently re-noticed for a de novo public hearing by the City Council to occur on June 17, 2025.

Background:

The Zoning Ordinance defines a STAR as a type of STLU that is a multi-family-dwelling structure on a single parcel, under single ownership, where some or all individual units are rented as STLUs and where the STAR owner (or the owner’s property manager) lives on-site in one of the other units not being rented short term. Furthermore, San Clemente Municipal Code (SCMC) Chapter 17.32 permits a STAR to be located in all residential zones where STLUs are not permitted, subject to approval of a STAR permit processed in accordance with SCMC Section

17.16.146 - Short-term Apartment Rental Permit.

The project meets all the minimum operating and development standards of the Zoning Code Subsections 17.28.292 E. and F., which are intended to ensure the existing character of the residential neighborhoods are preserved and not adversely impacted. The findings supporting the determination are discussed in this section, with additional findings provided in the attached Resolution, provided as Attachment 1.

Per the building plans, the major remodel of the single-family residence into a duplex required that each unit have at least two parking spaces, half of which are required to be covered.

Although the prior garage was converted into an ADU via B21-1132, a new one-car garage was constructed at the front of the property, attached to the duplex. The garage was built without proper vehicular access which led to a code enforcement case for unpermitted changes to the originally approved building plans. This code case was addressed and closed on October 22, 2024 when proper access was provided. Currently a one-car garage and one-car carport meet the requirements for covered parking. Up to two additional cars may be parked in tandem on the uncovered driveway spaces for a total of up to four on-site parking spaces. The two duplex units (Units B and C) each contain three bedrooms and two bathrooms and the maximum occupancy would be 8 people for each unit. Unit B is located on the bottom floor and includes the single-car garage; Unit C is located on the top floor.

The project site is within a half-mile walking distance of the beach and about a quarter mile from the San Clemente Trolley Red Line Stop 6 that travels along El Camino Real and into the Downtown District and San Clemente Pier. The site is immediately adjacent to Max Berg Plaza Park (where parking is in demand during the day and restricted at night) and one block away from Las Palmas Elementary School, where nearby parking is also in demand. The neighborhood contains a mixture of single and two story multi-family and single-family residences. The closest STLU or STAR is located approximately 715 feet away from the subject site, at 140 West Canada. This distance exceeds the minimum separation of 300 feet required between STARs and other STLUs or STARS.
22 Meeting Date: June 17, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 4
The applicant requests to rent both Units B and C on a short-term rental basis. (The ADU, occupied by the property manager, is addressed as Unit A.) However, the Zoning Administrator only approved a STAR for Unit B. Additionally, the Zoning Administrator denied the request for a STAR in Unit C with prejudice, which means, pursuant to SCMC 17.12.170 - New Application Following Denial, the City would not accept an application that is substantially similar to the denied application for a STAR permit at Unit C within one year of the denial (unless the City Council decides differently in connection with this de novo hearing).

Council Options:
 Forward this item to the Planning Commission for a decision or recommendation on the application.
 Adopt Resolution No. 25-84, approving PHP24-328/STAR25-329, Wyatt STAR, for one STAR unit for Unit B, subject to the same conditions of approval approved at the Zoning Administrator’s public hearing on April 17, 2025.
 Modify and adopt Resolution No. 25-84 to allow two STAR units in Units B and C, or include additional, or fewer, conditions of approval.
 Continue the item and direct staff to provide additional information.  Deny the request for a STAR permit in both Units B and C. This action will require the property to be made available for long-term occupancy only (over 30 days). If this action is taken, the City Council must make specific findings to support the denial of the STAR Permit application.

Environmental Review/Analysis:

The project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

California Coastal Commission:

The provisions of the Coastal Zone Overlay do not apply to the project because there is no proposed development on the site and the site is within the Categorical Exclusion order. This determination has been made in previous STAR permits.

Recommended Actions:

Staff Recommendation
..recommendation

1. Conduct a de novo public hearing;

2. Determine the project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1:

Existing Facilities); and

3. Adopt Resolution 25-84, approving STAR25-329, PHP24-328, Wyatt STAR, for one STAR unit (Unit B) subject to the same conditions of approval approved at the Zoning Administrator’s public hearing on April 17, 2025.
..end
23 Meeting Date: June 17, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 5
Attachment:

1. Resolution 25-84
Exhibit A – Conditions of Approval

2. Floor plans

3. April 17, 2025 Staff Report to the Zoning Administrator

4. Minutes of the Zoning Administrator Meeting of April 17, 2025

5. Minutes of the City Council Meeting of May 6, 2025

6. Public Comments
24 Attachment 1
RESOLUTION NO. 25-84

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN CLEMENTE, CALIFORNIA, APPROVING PHP24-328,
STAR24-329, TO ESTABLISH ONE SHORT TERM RENTAL
(UNIT B), ONE LONG TERM RENTAL (UNIT C), AND ONE
MANAGER’S UNIT (UNIT A) LOCATED AT 166 AVENIDA
ARAGON; AND FINDING THAT THE PROJECT IS

CATEGORICALLY EXEMPT FROM CEQA PURSUANT TO
STATE CEQA GUIDELINES SECTION 15301 (CLASS 1:

EXISTING FACILITIES).

WHEREAS, on July 12, 2024, an application was submitted by Jill Wyatt, 1021 Alexandria Drive, San Diego, CA 92107, for Public Hearing Project (PHP) 24-328, ShortTerm Apartment Rental Unit (STAR) 24-329 and deemed complete on March 10, 2025, a request to establish two short term apartment rental units within an existing duplex building with an accessory dwelling unit (ADU). The applicant requested that Unit B and Unit C be established as two short-term rentals for overnight accommodations of less than 30 days, and the ADU (Unit A) to be occupied by an on-site property manager. The site is addressed at 166 Avenida Aragon (APN: 692-382-29) and within the Residential Medium (RM) zone. The site’s legal description is N TR 793 BLK 9 LOT 26 TR 793 LOT 26 BLK 9 (AND ELY1/2 LOT 25 BLK 9; and
WHEREAS, the Planning Division completed an initial environmental assessment of the above matter in accordance with the California Environmental Quality Act (CEQA) and recommends the City Council determine that the project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 1 (Class 1: Existing Facilities). This is recommended because the project involves the conversion of one existing long-term apartment unit into one short-term rental and the establishment of one manager’s unit; and
WHEREAS, the City's Development Management Team (DMT) reviewed the proposed project and determined it complies with the General Plan, Zoning Ordinance, and other applicable City ordinances and codes. The DMT supports the project; and WHEREAS, on April 17, 2025, the Zoning Administrator of the City of San Clemente held a duly noticed public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other interested parties; and
WHEREAS, on May 6, 2025, the City Council appealed the Zoning Administrator’s decision on this application upon review of the Zoning Administrator Minutes of April 17, 2025; and
WHEREAS, on June 17, 2025, the City Council of the City of San Clemente held a duly noticed de novo public hearing on the subject application, considered written and oral comments, and facts and evidence presented by the applicant, City staff, and other 25 Resolution No. 25-84 Page 2
interested parties.

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

SECTION 1. Incorporation of Recitals
The City Council hereby finds that all of the facts in the Recitals are true and correct and are fully incorporated herein and adopted as findings of the City Council.

SECTION 2. CEQA Findings
Based upon its review of the entire record, including the Staff Report, any public comments or testimony presented to the City Council, and the facts outlined below, the City Council hereby finds and determines that the proposed project is Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

The Class 1 exemption specifically exempts from further CEQA review the operation, repair, maintenance, and minor repair of existing public or private structures, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. This exemption covers, but is not limited to, interior or exterior alterations, additions to the existing structures that will not result in an increase of more than 50 percent of the floor area of the structure before the addition, or 2,500 square feet, whichever is less. Here, the proposed project involves the conversion of an existing longterm apartment unit into one short-term rental and establishment of one manager’s unit, within a developed residential neighborhood, and will not increase the floor area of the structure by more than 50 percent of the existing floor area, or more than 2,500 square feet. The project does not increase or otherwise change the existing use of the site. Thus, the project qualifies for the Class 1 exemption.

Furthermore, none of the exceptions to the use of the Class 1 categorical exemption identified in State CEQA Guidelines Section 15300.2 apply. The project will not result in a cumulative impact from successive projects of the same type in the same place, over time. There are no unusual circumstances surrounding the project that result in a reasonably possibility of a significant effect on the environment. The project will not damage scenic resources, including trees, historic buildings, rock outcroppings, or similar resources. The project does not include any hazardous waste sites, and the project will not cause a substantial adverse change in the significance of a historical resource. Thus, the Class 1 exemption applies, and no further environmental review is required.

SECTION 3. Short-Term Apartment Rental Permit Findings
With respect to Short Term Apartment Rental (STAR) 24-329, the City Council finds as follows:

A. The proposed use is permitted within the subject zone pursuant to the approval of a STAR permit and complies with all the applicable provisions of this title, the 26 Resolution No. 25-84 Page 3
San Clemente General Plan, and the purpose and intent of the zone in which the use is being proposed, in that:

1. The site supporting the proposed STAR unit is within a half mile walking distance of the beach and about a quarter mile from the San Clemente Trolley Red Line Stop 6 that travels along El Camino Real to the Downtown District and San Clemente Pier. The site is immediately adjacent to Max Berg Plaza Park (where parking is in demand during the day and restricted at night) and one block away from Las Palmas Elementary School, where nearby parking is also in demand.

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 to avoid adverse impacts to adjacent public uses, neighbors, and City resources, in that:

1. The proposed STAR is located in the Residential Medium density zone, which allows for more intense development including clustered homes, townhomes, and other multi-family structures.

2. Due to its proximity to the public park and public school, where street parking is limited in supply and prohibited at night, in a dense residential neighborhood, two STAR units cannot be accommodated without risk of detriment to the public health, safety, and welfare. Furthermore, due to the small size of the property and the limited non-conforming parking on site, two STAR units would be materially injurious to properties in the vicinity, in that some guests unfamiliar with the neighborhood would bring more vehicles than can fit on site and occupy more neighborhood parking spaces than would be occupied by long term rental residents. One STAR may be accommodated on site, consistent with code requirements and compliance of the conditions of approval, which require an on-site property manager to be adequately trained to address guest issues directly, to the greatest extent feasible, in order to minimize expending City staff resources. The property owner and property manager would also be required to prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of the unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces.

3. No new physical development is proposed. The STAR unit would be converted from a long-term rental unit and the manager’s unit would be converted from a lawfully permitted ADU that exists on the property.

4. The project is within the Coastal Zone overlay but the scope of the project is consistent with the Categorical Exclusion order.

C. The proposed use with one STAR unit will not be detrimental to the public health, safety, or welfare, or materially injurious to properties in the vicinity, in that:

1. Due to its proximity to the public park and public school, where street parking 27 Resolution No. 25-84 Page 4
is limited in supply and prohibited at night, in a dense residential neighborhood, two STAR units cannot be accommodated without risk of detriment to the public health, safety, and welfare. Furthermore, due to the small size of the property and the limited non-conforming parking on site, two STAR units would be materially injurious to properties in the vicinity, in that some guests unfamiliar with the neighborhood would bring more vehicles than can fit on site and occupy more neighborhood parking spaces than would be occupied by long term rental residents.

2. As required by the Zoning Ordinance, Unit A would be occupied by a full-time, on-site property manager. The manager would be responsible for maintaining the premises and addressing any concerns raised by the short-term tenants/guests or neighbors, such as noise, parking, and trash.

3. A condition is included requiring the property manager to be adequately trained to address guest issues. Furthermore, a condition is included requiring the property manager to resolve issues directly, to the greatest extent feasible, in order to minimize expending city staff resources. A further condition is added to require the owner and property manager to prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of the unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces. As conditioned, the proposed STAR unit would not be detrimental to the public health, safety, or welfare.

4. The project meets all the minimum operating and development standards of the Zoning Code Subsections 17.28.292 E and F, which are intended to ensure the existing character of the residential neighborhoods are preserved and not adversely impacted. The applicant provided evidence of compliance with these standards in the application materials.

5. The requested use has been reduced to allow for only one STAR (Unit B) on the property.

D. The proposed use of one STAR will not negatively impact surrounding land uses, in that:

1. Zoning Ordinance Section 17.28.292 F requires the following locational criteria: “a STAR must be located at least 300 feet from every other STAR or STLU. This distance shall be measured by following a straight line without regard to intervening buildings from the nearest point of the parcel on which the proposed STAR is to be located to the nearest point of the parcel from which the proposed STAR is to be separated.” The existing STLUs located closest to the project site are at the following addresses: 227 Avenida del la Grulla (approximately 929 feet from project site), 140 W Canada (approximately 700 feet from project site), and 1520 N El Camino Real (approximately 929 feet from project site).
28 Resolution No. 25-84 Page 5

2. Avenida Aragon is a two-way street with vehicle access to El Camino Real.

Two parking spaces in tandem are required for the one authorized STAR.

E. The use meets the minimum operating and development standards of Subsections 17.28.292E and F.

1. The STAR is located within a Residential Medium density zone which allows for more intense residential development than single-family residential like multifamily structures. The site does not have an affordable-housing restriction nor is it currently included in the City’s Inclusionary Housing Program.

2. The approval of the STAR unit would not surpass the maximum limit of 20% for STARs and STLUs operating within the STLU Allowed Areas maps.

3. The STAR will provide a minimum of two 90-gallon waste containers for trash and two 90-gallon waste containers for recycling or equivalent volume, as conditioned in the Conditions of Approval, Exhibit A of this Resolution.

4. The STAR is not within 300 ft from any other STAR or STLU.

F. The STAR qualifies for an STLU operating license pursuant to Chapter 3.24.

1. A condition of approval is included requiring the owner to obtain an STLU operating license prior to use of the property for short-term lodging.

SECTION 4. City Council Approval
THE CITY COUNCIL HEREBY APPROVES STAR 24-329 IN PART AND DENIES STAR 24-329 IN PART based on the above findings. The Short-Term Apartment Rental unit in Unit C IS HEREBY DENIED WITH PREJUDICE. The Short-Term Apartment Rental unit in Unit B IS HEREBY APPROVED subject to the conditions of approval attached hereto as Exhibit A and fully incorporated herein.

SECTION 5. City Clerk
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 29 Resolution No. 25-84 Page 6

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. 25-84 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
30 Resolution No. 25-84 EXHIBIT A

CONDITIONS OF APPROVAL
Short-Term Apartment Rental (STAR) 24-329, Wyatt STAR

1.0 GENERAL CONDITIONS OF APPROVAL

1.1 Within 30 days of receipt of the signed conditions of approval, the applicant shall submit to the City Planner a signed
acknowledgement concurring with all conditions of approval on a form to be provided by the City, unless an extension is granted by the City Planner.

Planning

1.2 The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City of San Clemente and its officers, employees, and agents from and against any claim, action, proceeding, fines, damages, expenses, and attorneys’ fees, against the City, its officers, employees, or agents to attack, set aside, void, or annul any approval or condition of approval of the City concerning this project, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Planner, Zoning Administrator, or City employees or environmental finding. Applicant shall pay all costs upon request by the City. The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter at the applicant’s expense. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter at the applicant’s cost. If the applicant fails to so defend the matter, the City shall have the right, at its own option, to do so and, if it does, the applicant shall promptly pay the City's full cost of the defense.

Planning

1.3 Use and development of this property shall be in substantial conformance with the approved plans, material boards and other applicable information submitted with this application, and with these conditions of approval. Any modifications to the project shall be reviewed by the City Planner in accordance with Zoning Ordinance Section 17.12.180.

Planning

1.4 The applicant shall comply with all applicable current and future provisions of the San Clemente Municipal Code, adopted
ordinances, and state laws.

All

1.5 Use of the subject property shall conform to all occupancy requirements, including posting of signs related to the maximum occupancy limitations. The STAR owner shall post a copy of the house rules (including maximum number of guests and parking rules) in a conspicuous place in the STAR unit and in its Code
Comp 
31 Resolution No. 25-84, Exhibit A Page 2
advertisements and require that guests agree to fully comply therewith.

1.6 STAR 24-329 shall become null and void if:
a) there is a change of ownership as defined in the Municipal Code for STAR unit; or
b) the STAR use is not commenced within one (1) year from the later of the date of the approval thereof. Since the use itself does not require the issuance of a building permit, the use shall not be deemed to have commended until the date the use become operational. [Section 17.12.150 A 1 of the SCMC].

Planning


1.8 Prior to operating the short-term rental, the owner shall obtain a Short-Term Lodging Unit (STLU) Operating License through the Business License Division. License issuance and renewals shall occur pursuant to Municipal Code Chapter 3.24.

Finance


4.0 PRIOR TO ISSUANCE OF BUILDING PERMITS

4.15 In the event the project valuation is $50,000 or more per Municipal Code 12.08, the applicant shall be responsible for the construction of all required frontage improvements as approved by the City Engineer including but not limited to the following:
a) Sidewalk, including construction of compliant sidewalk along the property frontage and around obstructions such as the drive approach to meet current City standards (2% cross fall) when adequate right-of-way exists, unless a waiver is applied for and approved by the City Manager.

Since the street right-of-way along this frontage is
approximately 10 feet behind the curb face, a sidewalk
easement is not anticipated to be required.
b) Any sidewalk that is/was existing historic Ole Hanson tile immediately prior to the project shall be replaced with replica Ole Hanson tile per City Standard ST-5/5A if
removed during construction.
c) Contractor shall replace any damaged street
improvements resulting from construction activities to the satisfaction of the City Inspector.

Public
Works 

4.16 Technical Engineering Standards require that drive approaches are as wide as the garage door access. The property owner shall widen the drive approach to meet City Standards ST-9. (SCMC Chapter 15.36 and Sections 12.08.010, and 12.24.050)
Public
Works 

7.0 OPERATIONAL CONDITIONS OF APPROVAL

7.15 One STAR in Unit B, on the property is authorized on the site, and Planning 32 Resolution No. 25-84, Exhibit A Page 3
may only be rented on dates when a property manager is living in Unit A on site and physically able to respond to issues that arise during a guest stay. Parking for any STAR unit is limited to the available parking on site. Unit B has two allocated tandem parking spaces. The owner and property manager shall prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of each unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces. If subsequent to the project approval the City Planner determines that parking issues are negatively affecting the project site, adjacent properties, or the surrounding street network, the applicant shall submit an amendment to STAR24-329 with a plan to address the parking and/or traffic issues. The plan may include entering into an off-site parking agreement, creating shortterm parking stalls, and/or active monitoring and enforcement to manage parking. The applicant shall be responsible for
implementing the parking management plan, at their expense. The amendment shall be subject to Zoning Administrator review and approval.


7.17 The owner shall prepare and submit to the City a quarterly tax return, on forms provided by the Finance and Administrative Services Department, stating the total rents charged and received and the amount of the transient occupancy tax (TOT) collected the previous quarter. Taxes shall be remitted within 30 calendar days of the end of each quarterly period as set forth in the San Clemente Municipal Code 3.24.070. The owner shall timely submit the filing whether or not the STLU was rented during the reporting period and TOT was collected. Failure to file required quarterly tax returns may result in the revocation of STAR Permit 24-329.

Finance


7.18 Unit A shall be occupied by a full-time on-site property manager, and shall not be rented to short-term tenants/guests. The owner shall be responsible for ensuring the property manager is adequately trained and qualified to address guest issues and any complaints raised from neighbors. The property manager shall be the first point-of-contact for any complaints about the condition, operation, or conduct of short-term renters and their guests.

Planning


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.

Planning

All Conditions of Approval are standard, unless indicated as follows:
 Denotes a modified standard Condition of Approval.
 Denotes a project specific Condition of Approval
33 Attachment 2
34 35
36 37
38 39
40 41
42 43
44 45
AGENDA ITEM:

STAFF REPORT

SAN CLEMENTE ZONING ADMINISTRATOR
Meeting Date: April 17, 2025
PLANNER: Araceli Mejia, Assistant Planner
SUBJECT: PHP24-328, STAR24-329, Wyatt STAR, 166 Avenida Aragon, a request to establish short-term rentals (Unit B & Unit C) and one manager’s unit (Unit A)
LOCATION: 166 Avenida Aragon

ZONING/GENERAL
PLAN:

Residential Medium (RM) and Coastal Zone Overlay
PROJECT SUMMARY:
• Background:
• The project is proposed within a 5,997 square foot lot in the Residential Medium (RM) Zoning District and Coastal Zone (CZ) Overlay. The building was remodeled into a legal duplex and building permit B21-0701 was finaled in March 2024.

Congruently, the attached, single car garage was converted into an ADU and building permit B21-1132 was finaled in February 2024. There was a Code compliance case for unpermitted changes to the drive approach, which was closed on October 22, 2024. Currently a one-car garage and one-car carport are available for parking. Up to two additional cars may be parked in tandem on the driveway spaces. The neighborhood contains a mixture of multifamily and single-family residences ranging from one- to two-story structures.
• In past actions, the Zoning Administrator has approved two STAR units within a single property that have comparable environmental conditions. • STAR21-162 established two short term apartment rentals within an existing three-unit multifamily building on a 4,000 square foot lot at 119 E Mariposa within the Residential Medium (RM) Zoning District
• STAR22-045 established two short term apartment rentals within an existing three-unit multifamily building on a 4,000 square foot lot at 209 Avenida Rosa within the Residential Medium (RM) Zoning District and the Coastal Zone Overlay (CZ).

Attachment 3
46 PHP24-328, STAR24-329, Wyatt STAR Page 2
Figure 1 shows project site
• Proposed Project:
• The Zoning Ordinance defines a short-term apartment rental (“STAR”) as a type of STLU that is a multi-family-dwelling structure on a single parcel, under single ownership, where some or all individual units are rented as STLUs and where the STAR owner (or the owner’s property manager) lives on-site in one of the other units not being rented short term. Furthermore, Zoning Ordinance Chapter 17.32 permits a STAR to be located in all residential zones where general STLUs are not permitted, subject to approval of a STAR Permit processed in accordance with Section 17.16.146.
• The property owners Jill and Will Wyatt request a STAR permit to convert an existing duplex (Unit B and Unit C) into two short-term rental units for rentals less than 30 days, and a manager’s unit within the existing attached Accessory Dwelling Unit (ADU) (Unit A).
• Unit B on the ground floor contains three bedrooms and two bathrooms and the applicant states the maximum occupancy would be 8 people. • Unit C on the second floor also contains three bedrooms and two bathrooms and the applicant states the maximum occupancy would be 8 people. • Approval Authority: Zoning Administrator approval is required for STAR Permits (Zoning Ordinance Section 17.16.146).
• Project Findings: Staff believes the proposed request to establish two STARs can be supported based on the plain language of the code but has provided an alternative resolution to only allow for the establishment of one STAR (Unit B), should the Zoning Administrator make findings that the subject location is suitable for the type of use that is proposed, but the intensity of the use must be reduced to avoid adverse impacts to adjacent public uses, neighbors, and City resources and/or would be detrimental to the public health safety, or welfare, or materially injurious to properties in the vicinity:
47 PHP24-328, STAR24-329, Wyatt STAR Page 3
• The site supporting the proposed STAR units are within a half mile walking distance of the beach and about a quarter mile from the San Clemente Trolley Red Line Stop 6 that travels along El Camino Real and into the Downtown District and San Clemente Pier. The site is immediately adjacent to Max Berg Plaza Park (where parking is in demand during the day and restricted at night) and one block away from Las Palmas Elementary School, where nearby parking is also in demand. • The proposed STAR is located in the Residential Medium density zone which allows for more intense development including clustered homes, townhomes, and other multifamily structures.
• As required by the Zoning Ordinance, Unit A would be occupied by a full-time, onsite property manager. The manager would be responsible for maintaining the premises and addressing any concerns raised by the short-term tenants or neighbors, such as noise, parking, and trash. A condition is included requiring the property manager to be adequately trained to address tenant issues. Furthermore, a condition is included requiring the property manager to resolve issues directly, to the greatest extent feasible, in order to minimize expending City staff resources. A further condition is added to require the owner and property manager to prominently identify within its advertising and listings on short-term rental platforms that the maximum occupancy of each unit is eight guests and guests are expected to store their vehicles within two tandem parking spaces. As conditioned, the proposed STAR units would not be detrimental to the public health, safety, or welfare. • The project meets all the minimum operating and development standards of the Zoning Code Subsections 17.28.292 E and F, which are intended to ensure the existing character of the residential neighborhoods are preserved and not adversely impacted. The applicant provided evidence of compliance with these standards in the application materials.
• Zoning Ordinance Section 17.28.292 F requires the following location setback: “a STAR must be located at least 300 feet from every other STAR or STLU. This distance shall be measured by following a straight line without regard to intervening buildings from the nearest point of the parcel on which the proposed STAR is to be located to the nearest point of the parcel from which the proposed STAR is to be separated.” The existing STLUs located closest to the project site are at the following addresses: 227 Avenida del la Grulla (approximately 929 feet from project site), 140 W Canada (approximately 700 feet from project site), and 1520 N El Camino Real (approximately 929 feet from project site).
• Avenida Aragon is a two-way street with vehicle access to El Camino Real.

Four parking spaces (garage, carport, and tandem in driveway) are allocated for the existing two long term apartments which would be converted to the proposed STARs.
• The STAR qualifies for an STLU operating license pursuant to Chapter 3.24. • A condition of approval is included requiring the owner to obtain an STLU operating license prior to use of the property for short-term lodging. • California Coastal Commission
• The provisions of the Coastal Zone Overlay do not apply to the project because there 48 PHP24-328, STAR24-329, Wyatt STAR Page 4
is no proposed development to the site and the site is within the Categorical Exclusion order. This determination has been made in previous STAR permits. • CEQA:
• The project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities) because the project involves the establishment of two short-term apartment rental units within an existing duplex with an attached ADU.
• Public Comment: No public comments have been received by staff.

RECOMMENDATION
Staff recommends that the Zoning Administrator approve one or two STARs (alternative resolutions attached) at 166 Avenida Aragon:

1. Determine the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities); and

2. Adopt Resolution ZA 25-007, approving STAR24-329, PHP24-328, Wyatt STAR subject to attached conditions of approval.

Attachments:

1. Resolution ZA 25-007
Exhibit A - Conditions of Approval

2. Alternative Resolution ZA 25-007
Exhibit A – Conditions of Approval

3. Floor Plans
49 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
Attachment 4
50 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
51 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
52 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
53 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
54 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
55 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
56 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
57 CITY OF SAN CLEMENTE
Tuesday, May 6, 2025
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
City Council
Regular Meeting Minutes
4:30 p.m. - Closed Session
5:30 p.m. - Business Meeting
Mayor Knoblock
Mayor Pro Tern 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 May 6, 2025 at 4:30 p.m. in the San Clemente City Council Chambers, located at 91 O 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
Amanda Quintanilla narrated a PowerPoint presentation entitled "Closed Session OCSD & City Attorney". A hard copy of the presentation is on file with the City Clerk.

Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to recess to Closed Session at 4:34 p.m. to discuss the following:

CLOSED SESSION WITH SHERIFF AND AGENCY COUNSEL ON MATTERS

POSING A SECURITY THREAT
Closed Session with the Orange County Sheriff's Department and the City Attorney pursuant to Government Code section 54957(a) on matters posing a threat to the security of public buildings, a threat to the security of essential public services, a threat to the public's right of access to public services or public facilities, or a threat to critical infrastructure controls.

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

BUSINESS MEETING
The Business Meeting reconvened at 5:37 p.m. with all City Councilmembers present.

Attachment 5
58 City Council Regular Meeting Minutes May 6, 2025

INVOCATION
Assistant Pastor Steve Pascoe, Calvary Chapel San Clemente, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Cabral led the Pledge of Allegiance.

1. Special Presentations
Coastal Animal Services Authority General Manager Stinett presented "Corky" and "Mahoney" two adoptable kittens; shared information concerning adoption and fostering pets in need of a home .

2. Oral Communications (Part 1)
Michael A. Johnson, San Clemente, commented on actions by Councilmember Loeffler at the community coffee chat.

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 narrated a PowerPoint concerning sand erosion. A hard copy of the presentation is on file with the City Clerk.

Suzie Whitelaw narrated a PowerPoint presentation concerning placement of riprap boulders along the train tracks. A hard copy of the presentation is on file with the City Clerk.

Susie Lantz thanked the City for the State of the City Luncheon; announced upcoming San Clemente Chamber of Commerce events.

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

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Consideration of Reorganizing the Agenda
Motion by Councilmember Loeffler, second by Councilmember Cabral, to hear Item 13 A - Council Member Reports prior to Public Hearings.

Substitute motion by Mayor Knoblock, second by Councilmember Wu, CARRIED 3-2 (Councilmember Loeffler and Councilmember Cabral voting NOE) to keep Item 13 A - Council Member Reports at the end of the meeting, and to consider reorganizing future agendas under Future Agenda Item No. 12, Future Agenda Items. See page 18 of these minutes for a summary of discussion .

59 City Council
AYE:

NOE:

Regular Meeting Minutes
Enmeier, Wu and Mayor Knoblock
Cabral and Loeffler
May 6, 2025

4. Consideration of agendizing items requiring immediate action None.

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

No reportable action concerning:

CLOSED SESSION WITH SHERIFF AND AGENCY COUNSEL ON MATTERS

POSING A SECURITY THREAT
Closed Session with the Orange County Sheriff's Department and the City Attorney pursuant to Government Code section 54957(a) on matters posing a threat to the security of public buildings, a threat to the security of essential public services, a threat to the public's right of access to public services or public facilities, or a threat to critical infrastructure controls.

6. Staff Communications
None.

7. Public Hearings
7 A. PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE 2025-2029

CONSOLIDATED PLAN INCLUDING THE AMENDED CITIZEN
PARTICIPATION PLAN, 2025-2026 ANNUAL ACTION PLAN FOR

EXPENDITURES OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, AND THE 2025-2029 ORANGE COUNTY REGIONAL ASSESSMENT OF FAIR

HOUSING
Mayor Knoblock opened the Public Hearing.

Community Development Director Atamian and Consultant Mike Linares reviewed the contents of the Administrative Report and responded to City Council inquiries.

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

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

Adopt Resolution No. 25-47, which will:

60 City Council Regular Meeting Minutes May 6, 2025

1. Approve the 2025-2029 Consolidated Plan with the amended Citizen Participation Plan and 2025-2026 Annual Action Plan (AAP); receive and file the 2025-2029 Orange County Regional Assessment of Fair Housing (OC-AFH).

2. Approve, and authorize the City Manager to submit the Consolidated Plan and Annual Action Plan (AAP) to the U.S Department of Housing and Urban Development (HUD) and execute the contract and related agreements, forms, and certifications.

3. Accept grant revenues of an estimated $312,427 from U.S Department of Housing and Urban Development (HUD) to Fund 017 - Community Development Block Grant (CDBG) Grants Fund.

4. Authorize a related budget appropriation of an estimated $312,427 to the Community Development Block Grant (CDBG) fund for the amounts in the 2025-2026 Annual Action Plan (AAP).

5. Direct staff to advertise next years Community Development Block Grant (CDBG) opportunities in a full-page ad in the San Clemente Times.

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

8. Unfinished Business
None.

9. New Business
9A. CONSIDERATION OF AND POTENTIAL INTRODUCTION (FIRST READING)

OF AN ORDINANCE TO IMPOSE TERM LIMITS ON CITY COMMISSION

AND/OR COMMITTEE MEMBERS
Councilmember Loeffler recused himself from consideration of imposing term limits on the Planning Commission due to his wife being a Planning Commissioner.

The City Council bifurcated the decision regarding term limits for City Commissions and Committees and considered all Commissions and Committees, with the exception of the Planning Commission, which was discussed separately.

Lois McNicoll spoke in support of term limits for City Commissions and Committees.

Scott McKhann, San Clemente, opined on the specialized experience needed on City Commissions and Committees; commented on City Council authority to

61 City Council Regular Meeting Minutes May 6, 2025
appoint members to City Commissions and Committees .

Susan Ambrose, San Clemente, opined that current City Commissions and Committee members should coach prospective members.

Motion by Mayor Pro Tern Enmeier, second by Councilmember Cabral, CARRIED 5-0, to direct staff to return to the May 20, 2025 Regular City Council meeting with a revised Ordinance that will impose term limits of 8 years (4 two-year terms) for a member on any one City Commission or Committee effective upon City Commission or Committee appointments beginning in 2026 for the Arts and Culture Committee; Beaches, Parks, and Recreation Commission; Community Safety and Welfare Committee; Golf Course Committee; and the Investment Advisory Committee .

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Councilmember Loeffler left the dais at 6:37 p.m. and left the City Council Chambers.

The City Council considered imposing term limits for the Planning Commission .

Karen Prescott-Loeffler, San Clemente, expressed concerns regarding term limits for the Planning Commission.

Amanda Quintanilla spoke in opposition to term limits for City Commissions and Committees.

Mike Kay expressed concerns regarding term limits for City Commissions and Committees.

Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 4-0 (Councilmember Loeffler recused) to table consideration of term limits for the Planning Commission and take no action.

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

RECUSED:

None
Loeffler
Councilmember Loeffler returned to the dais at 6:51 p.m.

62 City Council Regular Meeting Minutes May 6, 2025
SB. CONSIDERATION OF A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF 2025 SPECIAL TAX REFUNDING BONDS OF
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL) OF THE CITY OF SAN CLEMENTE IF INTEREST RATES ALLOW FOR A 3%

OR GREATER NET PRESENT VALUE SAVINGS, AND APPROVING THE

FORM OF A BOND INDENTURE, ESCROW AGREEMENT, BOND

PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND

CONTINUING DISCLOSURE AGREEMENT, AND AUTHORIZING OTHER

ACTIONS IN CONNECTION THEREWITH
Chief Administrative Officer Brower narrated a PowerPoint presentation entitled "Marblehead Coastal Community Facilities District (CFO) Authorization of Bond Issuance and Refunding" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

James Fabian, Fieldman, Rolapp & Associates, responded to City Council inquiries.

Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to adopt Resolution No. 25-48 entitled RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL) OF THE CITY OF SAN CLEMENTE,
AUTHORIZING THE ISSUANCE OF ITS 2025 SPECIAL TAX REFUNDING

BONDS AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
SC. DISCUSSION AND POSSIBLE DIRECTION ON THE OFFSHORE SAND

SOURCE INVESTIGATION PROJECT
Coastal Administrator Meyerhoff and Greg Hearon, Coastal Frontiers, narrated a PowerPoint presentation entitled "City of San Clemente Offshore Sand Source Investigation Exploration Plan Review" and responded to City Council inquiries .

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

Susie Whitelaw narrated a PowerPoint presentation concerning potential borrow sites. A hard copy of the presentation is on file with the City Clerk.

Lois McNicoll opined on dredging as the selected method for sand replenishment; urged the City Council to consider additional methods for sand retention.

63 City Council Regular Meeting Minutes May 6, 2025
Motion by Mayor Pro Tern Enmeier, second by Councilmember Loeffler, to:

1. To approve the alternative route, as proposed, which will initially search the Dana Point and San Mateo sites.

2. Direct Coastal Frontiers to determine the best location to begin the site investigations (north or south).

3. Allow for flexibility to modify the plan if additional funding is received from the Orange County Transportation Authority (OCTA).

Motion by Mayor Knoblock, DIED FOR A LACK OF SECOND, to:

1. To approve the alternative route with the addition of North Beach to the investigation sites.

2. Direct Coastal Frontiers to determine the best location to begin the site investigations (north or south).

3. Allow for flexibility to modify the plan if additional funding is received from the Orange County Transportation Authority (OCTA).

The original motion by Mayor Pro Tern Enmeier, second by Councilmember Loeffler, was considered and CARRIED 4-1 (Mayor Knoblock voting NOE) to:

1. To approve the alternative route, as proposed, which will initially search the Dana Point and San Mateo sites.

2. Direct Coastal Frontiers to determine the best location to begin the site investigations (north or south).

3. Allow for flexibility to modify the plan if additional funding is received from the Orange County Transportation Authority (OCTA).

AYE:

NOE:

Cabral, Enmeier, Loeffler and Wu
Mayor Knoblock
Meeting Recess
The meeting recessed at 8:04 p.m. and reconvened at 8:10 p.m. with all City Councilmembers present.

64 City Council Regular Meeting Minutes May 6, 2025

10. Consent Calendar
Public Comments
Item 10 B(5) - ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF APRIL 17, 2025.

Louisa Spinelli, San Clemente, expressed concerns regarding the Zoning Administrator approved project located at 166 Avenida Aragon.

Item 101 - CONTRACT AWARD - SOUTH EL CAMINO REAL LANE

RECONFIGURATION AND BUFFERED BIKE LANE PROJECT FROM

AVENIDA MENDOCINO TO SOUTH CITY LIMIT, APPROVING A
SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $848,900 AND

MAKING FINDINGS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Amanda Quintanilla spoke in opposition to the reduction of lanes on El Camino Real.

Removed From the Consent Calendar for Discussion
The City Council removed item 10 B(5) - ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF APRIL 17, 2025 from the Consent Calendar for discussion.

A. City Council Minutes
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF APRIL 15, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
B. Commission/Committee Minutes
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to receive and file the following :

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
(1) APPROVE THE INVESTMENT ADVISORY COMMITTEE REGULAR MEETING MINUTES OF JANUARY 27, 2025.
(2) BEACHES, PARKS AND RECREATION COMMISSION REGULAR MEETING MINUTES OF FEBRUARY 11, 2025.

65 City Council Regular Meeting Minutes May 6, 2025
(3) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF MARCH 25, 2025.
(4) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF APRIL 9, 2025.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
C. Warrant Register
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:
(1) APPROVE WIRE TRANSFER NO. , I
3226 AND WARRANT NOS.
603880 THROUGH 604020, PAID ON
4-11-25, IN THE AMOUNT OF $3,886,911 .08
(2) 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
AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
Payroll Register
Motion by Councilmember Cabral, second by Mayor Pro Tern Enrneier, CARRIED 5-0, to:

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
AYE:

NOE:

Cabral, Enrneier, Loeffler, Wu and Mayor Knoblock
None

66 City Council Regular Meeting Minutes May 6, 2025
10D. 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
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-49, which will:

1. Find the project categorically exempt from the California Environmental Quality Act (CEQA) 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.

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

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10E. ADOPTION OF CITY INVESTMENT POLICY
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to adopt Investment Policy Number 202-1 , effective January 27, 2025.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None

67 City Council Regular Meeting Minutes May 6, 2025
10F. NOTICE OF COMPLETION -WATER RECLAMATION PLANT (WRP) SODIUM

HYPOCHLORITE TANK REPLACEMENT
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-50, which will:

1. Accept the Water Reclamation Plant Sodium Hypochlorite Tank Replacement, CIP Project No. 23405, from the contractor, 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.

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
1 0G. NOTICE OF COMPLETION - DIGESTER NO. 2 CLEANING, RESIDUAL

DISPOSAL AND INSPECTION
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-51 , which will:

1. Accept the Digester No. 2 Cleaning, Residual Disposal and Inspection, CIP Project No. 21203, from the contractor, 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.

3. Authorize the City Clerk to release the Payment Bond 35 days from the

68 City Council Regular Meeting Minutes May 6, 2025
recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, M.P. Environmental Services, 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
1 OH. CONTRACT AWARD - FY 2025 MAJOR STREET MAINTENANCE, APPROVING A 15% PROJECT CONTINGENCY, AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

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

Adopt Resolution No. 25-52, which will:

1. Find the FY 2025 Major Street Maintenance, CIP Project No. 25303, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award the FY 2025 Major Street Maintenance contract to Roy Allan Slurry Seal, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C25- 18, by and between the City of San Clemente and Roy Allan Slurry Seal, Inc., providing for the FY 2025 Major Street Maintenance, in an amount not to exceed $370,517, in a form substantially similar to Contract No. 25- 18 (Attachment 3).

4. Approve a 15% construction contingency of $55,577 for this project.

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

69 City Council Regular Meeting Minutes May 6, 2025
101. CONTRACT AWARD SOUTH EL CAMINO REAL LANE

RECONFIGURATION AND BUFFERED BIKE LANE PROJECT FROM

AVENIDA MENDOCINO TO SOUTH CITY LIMIT, APPROVING A
SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $848,900 AND

MAKING FINDINGS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

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, lnc.'s bid as non-responsive and Award 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, contract to ONYX Paving Company, Inc. as the lowest responsive and responsible bidder.

4. Approve, and authorize the City Manager to execute, Contract No. C25- 19, by and between the City of San Clemente and ONYX Paving Company, Inc., providing for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, in an amount not to exceed $1 ,639,000, in a form substantially similar to Contract No. C25- 19(Attachment 6).

5. Approve a 10% construction contingency of $163,900 for this project.

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

70 City Council Regular Meeting Minutes May 6, 2025
10J. CONTRACT AWARD - COST-OF-SERVICE STUDY FOR THE CITY'S WATER UTILITY, AND APPROVING AN 8.9% PROJECT CONTINGENCY
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-54, which will:

1. 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.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 20, by and between the City of San Clemente and Water Resources Economics, LLC, providing for a Cost-of-Service Study for the City's Water Utility, in an amount not to exceed $73,465.

3. Authorize the City Manager to approve amendments for additional services up to an 8.9% project contingency of $6,535, if needed.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10K. CONTRACT AWARD - AS-NEEDED CONTRACTUAL PLANNING STAFF

SUPPORT SERVICES
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

Adopt Resolution No, 25-55, which will:

1. Award a professional services agreement to Community Counterpart Services Corp. and award a professional services agreement to The Code Group, Inc. dba VCA Code for as-needed contractual planning staff support.

2. Accept grant revenues in the amount of $131 ,000 to Account No. 001-000- 33446 (Coastal Grant Revenue).

3. Approve a supplemental appropriation of $131,000 to Account No. 001- 433-43890 (other contractual services) which will supplement existing budgeted funds for contract planning services.

4. Approve, and authorize the City Manager to execute, Contract No. C25- 21, by and between the City of San Clemente and Community Counterpart

71 City Council Regular Meeting Minutes May 6, 2025
Services Corp., providing for as-needed contractual planning staff support, for a term of two (2) years, in an amount not to exceed $50,000 annually.

5. Approve, and authorize the City Manager to execute, Contract No. C25- 22, by and between the City of San Clemente and The Code Group, Inc. dba VCA Code, providing for as-needed contractual planning staff support, for a term of two (2) years, in an amount not to exceed $50,000 annually.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10L. CONTRACT AWARD - DESIGN SERVICES FOR THE VISTA HERMOSA SPORTS PARK MEADOWS DEVELOPMENT, APPROVING A 10% PROJECT

CONTINGENCY, AND MAKING FINDINGS UNDER THE CALIFORNIA

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

Adopt Resolution No. 25-56, which will:

1. Make consistency findings under the California Environmental Quality Act (CEQA).

1. Award a professional services agreement to Hirsch & Associates, Inc. for design services for the Vista Hermosa Sports Parks Meadows Development, PN 15108.

2. Approve, and authorize the City Manager to execute, Contract No. C25-23, by and between the City of San Clemente and Hirsch & Associates, Inc., providing for design services for the Vista Hermosa Sports Parks Meadows Development, in an amount not to exceed $143,873.

3. Approve a 10% project contingency.

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

72 City Council Regular Meeting Minutes May 6, 2025
1 OM. CONTRACT AMENDMENT - AUDIT SERVICES
Motion by Councilmember Cabral, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-57, which will:

Approve, and authorize the City Manager to execute, Amendment No. 2 to Contract No. C 18-23, by and between the City of San Clemente and Lance, Soll & Lunghard, LLP, extending the auditor services for the next two fiscal years, in an amount no to exceed $134,750.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10N. CONTRACT AMENDMENT - SUNDAY FARMERS MARKET, AND FINDING

THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

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

Adopt Resolution No 25-58, which will:

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

2. Approve the First Amendment to Professional Services Agreement Contract No. C20-28 with Introductions Unlimited, Inc.

3. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No. C20-28, by and between the City of San Clemente and Introductions Unlimited, Inc., for the operation of the San Clemente Sunday Farmers Market.

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

73 City Council Regular Meeting Minutes May 6, 2025
100. CONTRACT AMENDMENT - WASTE DISPOSAL AGREEMENT, AND FINDING

THE AGREEMENT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

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

Adopt Resolution No. 25-59, which will:

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

2. Approve, and authorize the City Manager to execute, Amendment No. 2 to Contract No. C97-93, by and between the City of San Clemente and the County of Orange, for the Waste Disposal Agreement.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR CONSIDERATION 10B5. ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF APRIL 17, 2025.

Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 4-1 (Councilmember Wu voting NOE) to appeal the Zoning Administrator's approval concerning Public Hearing Project (PHP) 24-328; and Short Term Apartment Rental (STAR), Wyatt STAR, 166 Avendia Aragon for City Council consideration .

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

11. Oral Communications (Part 2)
Tony Rubolino commented on the "Council Corner" editorial by Mayor Pro Tern Enmeier on April 24, 2025 in the San Clemente Times.

74 City Council Regular Meeting Minutes May 6, 2025

12. Future Agenda Items
Olympic Planning Committee
Mayor Knoblock, with the support of Councilmember Loeffler and Councilmember Cabral, agendized consideration of establishing a Olympic Committee to assist with planning efforts for the 2028 Olympics.

Goat Grazing Program
Mayor Knoblock, with the support of Councilmember Cabral and Mayor Pro Tern Enmeier, agedized consideration of continuing the goat grazing program to reduce overgrown vegetation in open space.

Council Member Reports
By consensus, the City Council agreed to move City Council Member Reports after Oral Communications on future agendas.

13. Reports
A. Council Member Reports
Councilmember Cabral:
• Reported that he has previously attended Friday morning coffee chats at the Senior Center.
• Attended the Downtown Business Association (OBA) meeting concerning, Olympics, parking, and the upcoming car show on Avenida Del Mar. • Spoke at the Speakeasy community discussion concerning sand retention/replenishment.
• Attended the Medal of Valor Ceremony for the Orange County Sheriff's Department (OCSD).
• Attended a meeting concerning an initiative for Beach Restoration/Public Safety.
• Took a helicopter tour with the Orange County Fire Authority (OCFA) to view the fire threats to the community.
• Attended the Springtacular event at Vista Hermosa Sports Park on April 19, 2025.
• Attended the lease renewal ceremony for San Onofre State Beach on April 21 , 2025.
• Hosted a meeting with Greg Cruse concerning surfing and 2028 Olympic planning on April 24, 2025.
• Met with Janice Lim with Association of California Cities - Orange County (ACCOC) Tourism Committee concerning the 2028 Olympics planning. • Met with elected officials from Dana Point and San Juan Capistrano concerning the 2028 Olympics.
• Met with the Orange County Transportation Authority (OCTA) concerning

75 City Council Regular Meeting Minutes May 6, 2025
intercity transportation funding for the Olympics.
• Met with Darrell Johnson, Orange County Transportation Authority (OCTA), to discuss sand placement on San Clemente beaches.
• Spoke with the Southern California Association of Governments (SCAG) representative concerning potential infrastructure changes in preparation for the 2028 Olympics.
• Attended the Little Mermaid production at San Clemente High School on April 24, 2025.
• Attended the Pump Track opening on April 26, 2025.
• Attended the San Onofre Nuclear Generating Station (SONGS) Community Engagement Panel (CEP) meeting on April 28, 2025.
• Attended the Investment Advisory Committee meeting on April 28, 2025. • Attended the Orange County Fire Authority (OCFA) Legislative Advisory Committee meeting on April 30, 2025.
• Attended the Southern California Association of Governments (SCAG)/Cal Cities Conference May 1-2, 2025.
• Attended the State of the City on May 2, 2025 at Bella Collina. • Attended the Cinco de Mayo Fiesta celebration at Max Berg Plaza Park on May 3, 2025.
• Sent two letters in opposition to Senate Bill (SB) 634 (Perez) - Local Government: Homelessness.
• Attended the Cinco de Mayo celebration at City Hall on May 5, 2025. • Attended the Orange County Fire Authority (OCFA) Human Resources Committee meeting on May 6, 2025.
• Narrated a PowerPoint presentation regarding updates to city facilities (a hard copy is on file with the City Clerk).

Mayor Pro Tern Enmeier:
• Attended the Springtacular event at Vista Hermosa Sports Park April 19, 2025.
• Attended a Cal Cities conference in Sacramento April 22-25, 2025 and met with Senator Blakespear and Assemblywoman Davies .
• Attended the Little Mermaid production at San Clemente High School April 26, 2025.
• Planted a tree at the San Clemente Golf Course for Arbor Day on April 26, 2025.
• Attended the Earth Day Celebration at the San Clemente Pier on April 26, 2025.
• Attended the opening of the Pump Track on April 26, 2025. • Attended the State of the City at Bella Gallina on May 2, 2025. • Attended the Cinco de Mayo Fiesta celebration at Max Berg Plaza Park on May 3, 2025.
• Recognized Erin Bro, San Clemente High School teacher, for receiving the Orange County Teacher of the Year award .

76 City Council Regular Meeting Minutes May 6, 2025
Councilmember Loeffler:
• Invited San Clemente Police Services Chief Chevalier to present crime statistics for the third quarter (January - March 2025).

Councilmember Wu:
• Attended the 2025 Medal of Valor Ceremony for OCSD on April 17, 2025. • Attended the Association of California Cities - Orange County (ACCOC) special meeting "Strengthening Integrity in Public Leadership" on April 17, 2025.
• Attended the lease renewal ceremony for San Onofre State Beach on April 21 , 2025.
• Shadowed Community Outreach Workers and Orange County Sheriff's Department Deputy Garcia addressing homeless issues in the City on April 22, 2025.
• Attended the Arbor Day Tree Planting at the San Clemente Golf Course on April 26, 2025.
• Attended the Pump Track opening on April 26, 2025.
• Attended the Little Mermaid production at San Clemente High School on April 26, 2025.
• Attended the Crime Victims Ceremony at the Orange County Crime Victims Monument on April 29, 2025.
• Site visit at the Mariposa Bridge with Public Works Director/City Engineer Rebensdorf on April 29, 2025.
• Attended the surf board art show/auction at Drew Brophy Art Studio on April 30, 2025.
• Attended the Southern California Association of Governments (SCAG) Regional Conference May 1-2, 2025 in Palm Desert.
• Attended the State of the City at Bella Collina on May 2, 2025. • Attended the Asian American and Pacific Islander Heritage Month celebration at San Gabriel Mission Playhouse on May 3, 2025.
• Attended the Cinco de Mayo Fiesta celebration at Max Berg Plaza Park on May 3, 2025.
• Recognized Jewish American Heritage Month and all minority groups in San Clemente.
• Attended the Crystal Apple Awards presented by the Justserve Club on May 4, 2025.

B. City Attorney
None.

77 City Council Regular Meeting Minutes May 6, 2025
C. City Manager
City Manager Hall reported that the following contracts were executed under his signature authority:

1. John Robinson Consulting providing for Cross Connection Control Management Plan in the amount of $28,740.

2. Bleckert's Power Services providing for Generator Bank Testing in the amount of $52,668.

3. Fischer Compliance, Inc. , providing for Sewer System Master Plan in the amount of $29,900.

4. Trauma Intervention Specialist providing for professional and emotional practical support services in the amount of $8,578.

5. SWCA Environmental Consultants providing for Nesting Bird Surveys for the Avenida Montalvo Canyon and Trail Improvements in an amount not to exceed $11 ,790.

14. Adjournment
Motion by Mayor Knoblock, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to adjourn at 8:57 p.m. in memory of retired City Clerk Myrna Erway. The next Regular Meeting will be held on May 20, 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:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
St k, Mayor of the City of
S , California
CLERK of the City of
San Clemente, California

78 STAR Unit at 166 Ave. Aragon
The approval of a Short-Term Apartment Rental (STAR) at 166 Avenida Aragon would be detrimental to the quality of life of the residents in the Max Berg/Plaza Park neighborhood and all other users of the park. This would be caused by the lack of adequate parking provided on the premises. The lack of parking around the park has been an issue for the use of the park intens and higher density housing replaces the extent single family housing. are
required to provide enough on-site parking for the vehicles driven by the residents . It ct was allowed to squeak by with such substandard parking spaces. The owner stretch. The garage does not seem
the garage is ramped up and has a curb with a drop- It
could be a real trip and fall hazard. The
should be 12 feet wide; ten feet is considered the minimum.

The carport visible nd huge H s the only pathway to the ADU in the former garage. This does not seem proper or legal.

Nonand remodel. That may be why substandard parking spaces were allowed. But this does not seem right or fair to the community. The intent of the Nonsurrounding to have structures become more conforming over much more than even
building from the ground up. Given that the property abuts a very important historic resource and introduced such a appearance
Their input would even now be useful.

Please and do not issue all issues are resolved
and -site parking spaces.
79 80
81 82
83 84
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: June 17, 2025 Agenda Item: 10A.

Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director Subject:
..titl e

RECONSIDERATION OF A RESOLUTION TO INITIATE A ZONING AMENDMENT RELATED

TO THE AMORTIZATION PROCESS OF SHORT-TERM LODGING UNITS, AND REQUEST

FOR FURTHER CONSIDERATION OF HOTEL-DEVELOPMENT OPPORTUNITIES FOR

ENHANCEMENT OF TRANSIENT OCCUPANCY TAX REVENUE
..body
Fiscal Impact:

Due to the expiration of an amortization period for non-conforming short-term lodging units (STLUs) set to occur in May 2026, the City anticipates a reduction in Transient Occupancy Tax (TOT) of approximately $130,000 per year. Should the City Council determine to modify current regulations, or initiate other TOT-generating measures, the City could anticipate an increase to, or the maintenance of existing, TOT revenues.

Summary:

On May 20, 2025, staff presented an item to the City Council seeking direction on how to address the expiration of the STLU amortization period set to occur in May of 2026. Additionally, the report included information and alternatives for the City Council’s consideration of other methods to address the anticipated loss of transient occupancy tax (TOT) from the expiration of the amortized STLUs. The agenda report and minutes from that meeting are provided as Attachments 2 and 3, respectively, and provide additional background information on this subject.

At that meeting, the City Council directed staff and the Planning Commission to initiate a zoning amendment to explore options to do the following: (1) extend the amortization period for the amortized STLUs on a regular on-going basis subject to annual review as long as there are no major issues/violations for the STLU; (2) increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly; and (3) expand the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events.

At the June 3, 2025 City Council meeting, the City Council directed staff to bring this item back for reconsideration of its direction to extend the amortization period for the amortized STLUs. The minutes from that meeting are provided as Attachment 4. Based on significant oral and written public comments received at the June 3, 2025 meeting and subsequent discussion among staff, staff proposes a Resolution (provided as Attachment 1) to refine and refocus the City’s efforts more on hotel development opportunities, especially in zoning districts where those uses are already allowed, and less on facilitating the continuation of amortized STLUs. Written public 85 Meeting Date: June 17, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 2
comments received on this matter are provided as Attachment 5. Approval of the attached Resolution will repeal the action taken at the May 20, 2025 City Council meeting.

Discussion:

Staff has revised the list of potential options to increase the City’s TOT revenue initially discussed at the May 20, 2025 City Council meeting. These items include those considered in some form by the City Council with revised staff recommendations for City Council’s reconsideration of each.

Staff has provided a draft resolution for the City Council’s consideration (Attachment 1) that includes direction on the following items, as recommended by staff. As always, staff welcomes additional guidance or alternate direction on these items. If adopted, the draft resolution would initiate a zoning amendment to:

1. Provide a process based on completed applications for amortized STLUs to apply to convert to STARs, where possible and appropriate, respecting the 300-foot minimum separation requirement.

At the end of the STLU amortization period, the City anticipates, and has already received, a number of applications to convert STLUs to STARs. The applications present a few issues. First, only STLUs located on properties with more than one residential unit will be able to convert to a STAR. Second, of those STLUs that could convert to STARs, staff anticipates that multiple applications will be submitted that are within 300 feet of another non-amortized STLU or STAR, or within 300 feet of another application to convert an amortized STLU into a STAR. The City typically processes requests on a first-come, firstserved basis.

Due to significant public comment on the compatibility of STLUs, and the concentration of STARs, in residential areas where STLUs are not permitted unless currently amortized, staff’s new recommendation is to maintain the status quo in processing applications for STLU to STAR conversions on a first-come, first-served basis. Under this scenario, applications will be processed in the order in which such applications are deemed complete, not from the date upon which they are submitted. The required 300-foot distancing would apply to these STAR applications, as they do to all applications for new STARs.

2. Do not extend the amortization period for the amortized STLUs.

Due to significant public comment on the compatibility of STLUs in residential neighborhoods, staff recommends that the City Council rescind its direction on this item, and utilize staff’s time to address more opportunities to incentivize hotels and motels in areas where commercial uses are currently permitted, as further discussed in item 3, below.

3. Increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.
86 Meeting Date: June 17, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 3
Staff recommends that the City Council maintain its direction for staff to initiate a zoning amendment to increase the development potential of visitor-serving accommodations, which would likely increase TOT revenues by providing additional density for hotel and motel rooms, where those uses are currently allowed. This could be accomplished by increasing the allowable floor area ratio (FAR), height, or other standards to further incentivize development of additional short-term accommodations in the City. Additionally, this work would include considerations to offer special zoning exceptions in select areas to allow visitor-serving uses where they are not currently permitted but would be compatible with the existing character of the area, providing more flexibility and strategic expansion of lodging capacity in anticipation of high-demand events or long-term tourism growth.

In response to multiple public comments that requested that the City explore opportunities to incentivize hotel development where those uses are permitted, staff is requesting the City Council’s direction to initiate an amendment to the Marblehead Coastal Specific Plan and carry out required environmental review to identify the hotel site on the Outlets property as a “landmark” building, similar to the Theatre building. This designation would establish additional height allowances consistent with other identified “landmark” structures within that development. Due to the significance of this matter and its alignment with broader City economic and land-use planning priorities, staff recommends “fast-tracking” this specific amendment to the Marblehead Coastal Specific Plan by directing that it be brought back directly to the City Council for consideration and action.

4. Expand the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events.

Staff recommends that the City Council maintain its previous direction for staff to initiate a zoning amendment that considers an expansion of the STLU-allowed areas or percentage of allowed units in the visitor serving STLU areas. By expanding the designated visitorserving areas, such as the Downtown, Pier Bowl, or North Beach STLU areas, the City could facilitate an increase in STLUs that would generate additional TOT. Furthermore, by increasing the limitation on STLU density in these areas, which are currently capped at 20% of residential units in each allowed area, additional STLUs could be accommodated, also increasing TOT revenues.

Staff also recommends that the City Council maintain its previous direction for staff to initiate a zoning amendment that considers limited-term expansions of STLU uses. As the 2028 Olympics approach, temporarily allowing some additional, or all, residential properties not currently licensed as STLUs or STARs to operate as STLUs during the summer months of 2028 to accommodate the expected surge in visitors would generate additional TOT and allow a process for STLUs to operate legally rather than operating without regulations. This policy would help alleviate pressure on hotels and traditional lodging, offering a wider array of accommodations at varying price points. Homeowners could benefit economically by renting out their homes or spare rooms, generating income during a peak tourism period. For the City, increased visitor spending and collection of TOT revenue from these rentals could provide a financial boost to support public services and Olympic-related infrastructure demands.
87 Meeting Date: June 17, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 4
While this approach also poses challenges - neighborhood disruptions, traffic congestion, and complaints about noise or trash, risk of exacerbating housing availability issues - the City would need a clear and temporary permitting process with defined start and end dates, robust TOT-collection mechanisms, and enforcement strategies to prevent abuse.

Considerations would include a registration/permitting process, setting occupancy limits, and partnering with rental platforms to ensure compliance. Community input and transparent communication would be essential in building public support and minimizing unintended consequences. All of these issues would be contemplated and mitigated in a draft ordinance that would be reviewed by the Planning Commission and ultimately need to be approved by the City Council.

Council Options:
 Adopt Resolution No. 25-85, which would do the following:

1. Revoke the City Council’s previous direction on May 20, 2025 regarding initiation of a zoning amendment related to the amortization process of short-term lodging units and consideration of hotel-development opportunities for enhancement of transient occupancy tax revenue.

2. Initiate a zoning amendment to increase development potential of hotels and motels Citywide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

3. Initiate a zoning amendment to expand the allowed areas or capacities for STLUs, with a focus on non-residential areas, such as mixed-use and commercial zones, and explore opportunities for a limited-term expansion related to the 2028 Olympics or other major regional events in such zones as well as residential zones.

4. Initiate an amendment to the Marblehead Coastal Specific Plan and carry out required environmental review to identify the hotel site on the Outlets property as a landmark building, and “fast track” the process by bringing the item directly back to the City Council for consideration and action.

5. Maintain the status quo in processing applications for STLU to STAR conversions on a first-come, first-served basis in the order in which such applications are deemed complete, not from the date upon which they are submitted and apply current 300-foot minimum separation requirements.
 Modify and then adopt Resolution No. 25-85.
 Continue the item with the direction to staff to provide additional information.  Do not approve Resolution No. 25-85. This action would result in staff proceeding with the City Council’s direction from May 20, 2025.
 Do not approve Resolution No. 25-85 and direct staff to cease work on the City Council’s direction from May 20, 2025. This would result in no new ordinances being drafted to maintain 88 Meeting Date: June 17, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 5
or enhance the City’s TOT revenues. Staff would still maintain the status quo in processing applications for STLU to STAR conversions on a first-come, first-served basis.

Environmental Review/Analysis:

The initiation of an ordinance to amend the Zoning Ordinance does not qualify as a "project" under the California Environmental Quality Act (CEQA) because it only involves the work of staff to draft such an ordinance for future City Council consideration and has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, § 15378, subd. (a)). The action merely provides approval to allocate staff time to draft a potential ordinance, and does introduce any new activities or changes that could affect the environment. The proposed ordinance itself after being drafted would go through the appropriate environmental review.

Recommended Actions:

Staff Recommendation ..recommendation
STAFF RECOMMENDS that the City Council adopt Resolution No. 25-85 to accomplish the following:

1. Revoke the City Council’s previous direction on May 20, 2025 regarding initiation of a zoning amendment related to the amortization process of short-term lodging units and consideration of hotel-development opportunities for enhancement of transient occupancy tax revenue.

2. Initiate a zoning amendment to increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly; and

3. Initiate a zoning amendment to expand the allowed areas or capacities for STLUs, with a focus on non-residential areas, such as mixed-use and commercial zones, and explore opportunities for a limited-term expansion related to the 2028 Olympics or other major regional events in such zones as well as residential zones; and

4. Initiate an amendment to the Marblehead Coastal Specific Plan and carry out required environmental review to identify the hotel site on the Outlets property as a landmark building, and “fast track” the process by bringing the item directly back to the City Council for consideration and action; and

5. Maintain the status quo in processing applications for STLU to STAR conversions on a firstcome, first-served basis in the order in which such applications are deemed complete, not from the date upon which they are submitted and apply current 300-foot minimum separation requirements.
..end
Attachments:

1. Proposed Resolution 25-85

2. Agenda Report from the May 20, 2025 City Council Meeting

3. Minutes of the May 20, 2025 City Council Meeting

4. Minutes of the June 3, 2025 City Council Meeting
89 Meeting Date: June 17, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 6

5. Public comments
Notification:

None.
90 Attachment 1
RESOLUTION NO. 25-85

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, INITIATING A ZONING
AMENDMENT TO TITLE 17 (ZONING) OF THE SAN

CLEMENTE MUNICIPAL CODE AND AN AMENDMENT TO

THE MARBLEHEAD COASTAL SPECIFIC PLAN TO

MODIFY STANDARDS AND PROCESSES RELATED TO

SHORT-TERM LODGING USES, INCREASE

DEVELOPMENT POTENTIAL OF HOTELS AND MOTELS

CITYWIDE, AND IDENTIFY THE HOTEL SITE ON THE

OUTLETS PROPERTY AS A LANDMARK BUILDING

SUBJECT TO ADDITIONAL HEIGHT ALLOWANCES
WHEREAS, Title 17 of the San Clemente Municipal Code establishes zoning regulations, development standards, and procedures intended to guide land use and development in accordance with the City’s General Plan; and WHEREAS, the purpose of the Marblehead Coastal Specific Plan is to implement the City’s General Plan and be responsive to the goal of preserving San Clemente’s unique atmosphere, historical identity, and significant natural features; and WHEREAS, Objective I of the Marblehead Coastal Specific Plan is to provide for a variety of land uses within the Specific Plan area capable of generating significant new tax revenues to the City; and
WHEREAS, per Title 17, amendments to the Zoning Ordinance are necessary to maintain its effectiveness as a regulatory and informational document and to ensure its consistency with the General Plan, adopted specific plans and State law. Zoning amendments are also necessary to provide for the implementation of the City's General Plan; and
WHEREAS, it is the desire of the City Council to amend the Marblehead Coastal Specific Plan to provide incentives to cause the development of the approved hotel on the Outlets property, which is one of the last undeveloped commercial sites in the City, and generate significant new tax revenues consistent with the objective of the Specific Plan, which implements the General Plan; and
WHEREAS, the initiation of a zoning amendment is a preliminary procedural step that enables staff to prepare draft amendments for public review, Planning Commission recommendation, and future City Council consideration; and WHEREAS, on May 20, 2025, the City Council considered a staff report, public comments, and directed staff to initiate zoning amendments to extend the amortization period for the amortized STLUs, increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, and expand 91 the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events; and WHEREAS, at the June 3, 2025, City Council meeting, the City Council directed staff to present the May 20, 2025 initiation of zoning amendments for reconsideration, specifically regarding the direction to extend the amortization period for the amortized STLUs; and
WHEREAS, based on significant public comment received at the June 3, 2025 meeting and subsequent discussion among City staff, at the regular June 17, 2025 City Council meeting, staff presented options to refine and refocus the City’s efforts more on hotel development opportunities, especially in zoning districts where those uses are already allowed, and less on facilitating the continuation of amortized STLUs; and WHEREAS, on June 17, 2025, the City Council reconsidered its direction on the May 20, 2025 initiation of zoning amendments, considered a staff report and public comments, and directed staff to initiate zoning amendments as described below.

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

SECTION 1. That the City Council direction to staff on May 20, 2025 regarding the initiation of zoning amendments is hereby rescinded and revoked.

SECTION 2. As directed at its June 17, 2025 meeting, the City Council hereby initiates a zoning amendment to Title 17 of the San Clemente Municipal Code to:

A. Increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

B. Expand the allowed areas or capacities for STLUs, with a focus on nonresidential areas, such as mixed-use and commercial zones, and explore opportunities for a limited-term expansion related to the 2028 Olympics or other major regional events in such zones as well as residential zones.

SECTION 3. That staff is hereby directed to initiate an amendment to the Marblehead Coastal Specific Plan and carry out required environmental review to identify the hotel site on the Outlets property as a landmark building within that development, subject to additional height allowances consistent with other landmark structures within that development. Due to the significance of this matter and its alignment with broader City economic and land-use planning priorities, the City Council directs that the proposed amendment to the Marblehead Coastal Specific Plan bypass the Planning Commission review process and be brought directly to the City Council for consideration and action, consistent with applicable provisions of the Municipal Code and State law.

SECTION 4. That staff is hereby directed staff to maintain the status quo ante in processing applications for STLU to STAR conversions on a first-come, first-served basis in the order in which such applications are deemed complete, not from the date upon which 92 they are submitted and apply separation requirements consistent with the Municipal Code.

SECTION 5. 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 ____________________, _______.

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. 25-85 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
93 910 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: May 20, 2025 Agenda Item: 10E.

Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO INITIATE A ZONING AMENDMENT RELATED TO

THE AMORTIZATION PROCESS OF SHORT-TERM LODGING UNITS, AND AN

INFORMATIONAL REPORT OF EXISTING TRANSIENT OCCUPANCY TAX REVENUE AND OPPORTUNITIES FOR ENHANCEMENT OF THAT REVENUE SOURCE ..body Fiscal Impact:

Due to the expiration of an amortization period for non-conforming short-term lodging units (STLUs) set to occur in May 2026, the City anticipates a reduction in Transient Occupancy Tax (TOT) of approximately $130,000 per year. Should the City Council determine to modify current regulations, or initiate other TOT-generating measures, the City could anticipate an increase to, or the maintenance of existing, TOT revenues.

Summary:

Transient Occupancy Tax is a tax levied on overnight accommodations, including hotels, motels, short term rentals, and similar businesses. In San Clemente, the TOT rate is 10%, which is a common rate within Orange County but is less than some other tourist serving destinations such as Laguna Beach (14%), Buena Park (12%), and Anaheim (15%)1. The City’s 2025 fiscal year (FY) budget anticipates $3.55 Million in TOT revenue, of which approximately $2.5 Million comes from hotels and motels and $1 Million comes from STLUs, including short-term apartment rentals (STARs).

The City’s current STLU-generated TOT revenue is set to decrease due to the expiration of a 10- year amortization period that was applied to certain STLUs that existed prior to the adoption of STLU regulations that occurred in 2016. This loss of TOT is anticipated to be approximately $130,000 per year.

To address this loss of TOT, and to inform the City Council of opportunities to increase TOT from STLUs more generally, City staff is providing a number of options to expand TOT revenue for the City Council’s consideration. These opportunities include the following, with each discussed in more detail within this report:

1. Provide a process for amortized STLUs to convert to STARs, where possible, regardless of the 300-foot minimum separation requirement.

2. Extend the amortization period for the amortized STLUs. 1 Refer to Attachment XX, 2022-23 City Transient Occupancy Tax Revenue for CA Cities 1 Attachment 2
94 Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE

3. Increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

4. Expand the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events.

5. Revisit a ballot measure to increase the TOT rate in San Clemente.

Background:

Current Revenue
The City’s biennial budget2for FY25 and FY26 includes $3.55 Million in TOT revenue for each year. Figure 1 shows projected and historical TOT revenue.

Figure 1
This revenue accounts for 5.14% of the City’s tax revenue, or 4.11% of all City revenues. A breakdown of all tax revenues is shown in Figure 2, below. [Continued on next page]
2 https://www.san-clemente.org/about-us/city-finances/city-budget 2 Revenue Assumptions
for Major Revenue Sources
Transient Occupancy Tax {TOT)
TOT is a 10% "bed" tax that is added to hotel room bills and vacation rentals within City limits. TOT revenue is budgeted at $3.6 million for both FY 2024-25 and FY
2025-26, which is comparable to the FY 2023-24
adjusted budget amount.

San Clemente is a coastal town, therefore transient
occupancy tax revenue is dependent upon weather and
tourism conditions for individuals to stay in San
Clemente. Lodging in excess of 30 continuous days is
exempt under the City's transient occupancy tax.
en
C:
$4.0
$3.0
~$2.0
~
$1 .0
$0.0
FY 2023 FY 2024 FY 2025 FY 2026
95 Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE
Figure 2
In the calendar year 2024, San Clemente received $3,231,300 in TOT revenue. In comparison, the City of Dana Point received $16.9 Million3in revenue in FY24; San Juan Capistrano budgeted $2.3 Million4for FY25; and Laguna Beach anticipates $10.8 Million5in TOT for FY25.

Short Term Rentals
There are 161 short term rentals that are actively paying TOT. In San Clemente, short term rentals are classified into two types. The first is short term lodging units (STLU), which are units in designated visitor serving areas6, such as the Pier Bowl and North Beach. STLUs do not have distance separation requirements, and the owner is not required to reside on site; however only 20% of residential units in each allowed area may be used as STLUs. The second type is a shortterm apartment rental (STAR), which is permitted outside of the visitor serving area; however, these units require the property owner or manager to reside on site and cannot be within 300-feet of another permitted STLU or STAR.

Prior to the City’s 2016 and 2018 ordinances regarding short term rentals (codified under Section

17.28.292), a number of short-term rentals without owner/manager on site already existed outside of the designated visitor-serving accommodation zones. The City grandfathered these units, but placed them on an amortization schedule. Some units may be eligible to resume operations if converted to a STAR permit, but not all can remain in operation once the June 2026 amortization date is reached due to minimum distancing requirements from other STLUs or STARs. There are 38 amortized units, 29 of which are active and accounted for about $130,000 in TOT revenue in 2024. The map provided in Figure 3, below, indicates the STLU allowed areas (outlined in orange) and approved STLUs (orange), approved STARs (green), and amortizing units (blue). 3 https://www.danapoint.org/home/showpublisheddocument/39528/638816086471370000 4 https://sanjuancapistrano.org/ArchiveCenter/ViewFile/Item/1376 5 https://www.lagunabeachcity.net/home/showpublisheddocument/19846/638622540039630000 6 Maps of ATLU allowed areas:
https://library.municode.com/ca/san_clemente/codes/code_of_ordinances?nodeId=TIT17ZO_APXCSUECMA 3 General Fund Revenue Summary
by Category
Revenues FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 FY 2025-26 Description Actual Adj Budget Projected Budget Budget
Property Tax $41,667,449 $42,697,000 $43,185,000 $45,229,800 $47,398,200 !Transient Occupancy Tax 3,342,858 3,552,000 ,300,000 8,550,000 ,550,000 Sales Tax 12,608,182 13,095,000 13,095,000 13,348,000 13,659,500 Franchise Tax 2,471,832 2,443,000 2,501,000 2,527,000 2,500,000 Property Transfer Tax 631,886 700,000 710,000 715,000 720,000 -- Assessments & Delinquent Taxes 66,168 63,230 65,230 67,250 67,750 Business License Tax 1,236,502 1,223,000 1,205,000 1,205,000 1,215,000 Total Taxes 62,024,877 63,773,230 64,061,230 66,642,050 69,110,450 96 Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE
Figure 3
Other Visitor-Serving Accommodations
There are 758 motel, hotel or bed and breakfast rooms in the City. There has been some attrition of older motel stock that have closed business or converted into housing uses, including 6 units from the former C-Vu motel, 10 units from the former La Vista Inn, and 5 units from the former House of Trestles for a total of 21 lost units.

Pending and Approved Hotel/Motel Projects
In addition to the existing stock of hotel rooms, the City may see construction of additional facilities in the near future:
 Hotel Clemente (225-229 Avenida Del Mar): 28 hotel rooms with a restaurant in the downtown core. This project was approved by the City in late 2024 and recently was deemed complete by the Coastal Commission. The developers are awaiting their hearing date with the Coastal Commission and hope to submit for building permits with the City later this year.
4 Legend
- STLU Allowed Areas
STLUs
0 0
•
Short-Term Ap artment Rental
(STAR)
Short-Term Lo d g1 ·ng Unit
(STLU)
STLU Amoritized
' I
i ----~i
I
I ".>. ~.,,.,_- '
97 Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE
 Sea Cliff Boutique Motel (402 Pasadena Court): 11 hotel rooms with a restaurant in the Pier Bowl.
 Hanson Hotel (1801 N. El Camino Real): 61-room hotel with café and restaurant in North Beach. Staff anticipate scheduling a public hearing for this item this summer (2025).  Lodge Hotel at the Outlets (401 W. Avenida Vista Hermosa): 125-130 hotel rooms + conference center. However, this project has been inactive for more than 5 years.

If these four facilities (totaling 225 rooms) are constructed, the City could see additional TOT revenue of about $1.31 Million, based on an assumption of a $200 room rate for an 80% occupancy with a continued 10% TOT rate.
2016 Ballot Measure to Increase TOT
In 2016, the City Council initiated a ballot measure for residents to consider increasing the TOT rate from 10% to 13%. However, the measure was defeated by a narrow margin of 8 votes, as shown in Figure 4, below.

Figure 4
Opportunities to Increase Revenue from TOT
Staff has compiled, and seeks the City Council’s guidance and direction on, the following list of potential options to increase the City’s TOT revenue:

1. Provide a process for amortized STLUs to convert to STARs, where possible, regardless of the 300-foot minimum separation requirement.

At the end of the STLU amortization period, the City anticipates, and has already received, a number of applications to convert STLUs to STARs. These applications present a few issues. First, only STLUs located on properties with more than one residential unit will be able to convert to a STAR. Second, of those STLUs that could convert to STARs, staff anticipates that multiple applications will be submitted that are within 300 feet of another non-amortized STLU or STAR, or within 300 feet of another application to convert an amortized STLU into a STAR. The City typically processes requests on a first-come, firstserved basis.

Staff recommends that the City Council provide direction to staff on whether to maintain the status quo in processing applications for STLU to STAR conversions (first-come, first5 Yes 15,035 49.99%
El,ection results from Orange County Elections Office @ 98 Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE
served) or to initiate a Zoning Amendment to allow amortized STLUs to apply for STAR permits regardless of the 300-foot minimum distance requirements. Staff envisions that the required distancing would still apply to new STAR applications. Staff has provided a draft resolution for the City Council’s consideration (Attachment 1) that includes a zoning amendment initiation to allow amortized STLUs to apply for STAR permits regardless of the 300-foot minimum distance requirements.

2. Extend the amortization period for the amortized STLUs.

Another option to address the concerns discussed in item 1, above, would be to further extend the amortization period. This would provide for a continuation of the current STLU licenses, without the need for staff to process multiple new applications for STARs, which all require a public hearing. Additionally, more time to allow current STLUs to continue to operate would allow further natural attrition of those uses as properties change ownership or property owners decide to use their properties for longer term occupancy.

3. Increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

Initiating a zoning amendment to increase the development potential of visitor-serving accommodations would likely increase TOT revenues by providing additional density for hotel and motel rooms, where those uses are currently allowed. This could be accomplished by increasing the allowable floor area ratio (FAR), height, or other standards to further incentivize development of additional short-term accommodations in the City.

Additionally, the City could consider offering special zoning exceptions in select areas to allow visitor-serving uses where they are not currently permitted, providing more flexibility and strategic expansion of lodging capacity in anticipation of high-demand events or longterm tourism growth.

4. Expand the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events.

To increase TOT revenue from STLUs, the City Council could consider expanding the STLU-allowed areas or percentage of allowed units in the visitor serving STLU areas. By expanding the designated visitor serving areas, such as the Downtown, Pier Bowl, or North Beach STLU areas, the City could facilitate an increase in STLUs that would generate additional TOT. Furthermore, by increasing the limitation on STLU density in these areas, which are currently capped at 20% of residential units in each allowed area, additional STLUs could be accommodated, also increasing TOT revenues.

Another option is to explore more limited term expansions of STLU uses. As the 2028 Olympics approach, the City Council could consider temporarily allowing some additional, or all, residential properties not currently licensed as STLUs or STARs to operate as STLUs during the summer months of 2028 to accommodate the expected surge in visitors.

This policy would help alleviate pressure on hotels and traditional lodging, offering a wider array of accommodations at varying price points. Homeowners could benefit economically 996
Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE
by renting out their homes or spare rooms, generating income during a peak tourism period. For the City, increased visitor spending and collection of TOT revenue from these rentals could provide a financial boost to support public services and Olympic-related infrastructure demands.

However, this approach also poses challenges. A rapid increase in short-term rentals could lead to neighborhood disruptions, traffic congestion, and complaints about noise or trash— especially in residential areas not accustomed to tourist activity. There’s also a risk of exacerbating housing availability issues if property owners temporarily convert units from long-term housing to short-term rentals. To mitigate these effects, the City would need a clear and temporary permitting process with defined start and end dates, robust TOTcollection mechanisms, and enforcement strategies to prevent abuse. Considerations would include a registration/permitting process, setting occupancy limits, and partnering with rental platforms to ensure compliance. Community input and transparent communication would be essential in building public support and minimizing unintended consequences.

5. Revisit a ballot measure to increase the TOT rate in San Clemente.

Pursuing a ballot measure to increase TOT revenues could provide the City with a valuable opportunity to generate additional funding for critical public services, infrastructure, sand nourishment projects, and tourism-related impacts without directly taxing residents. By targeting short-term visitors, an increased TOT rate can help offset the costs associated with large events, tourism-driven wear on public assets, and housing displacement pressures. However, careful consideration must be given to potential opposition from the hospitality industry, STLU/STAR operators, and tourism advocates concerned about competitive pricing. For such an effort, the City should clearly articulate how the new revenues will be used and align the measure with community priorities such as public safety, and beach, infrastructure, or transit improvements.

Council Options:
 Adopt Resolution No. 25-62 to initiate a zoning amendment to provide a process for amortized STLUs to convert to STARs, when located on a property with multiple dwelling units, regardless of the 300-foot minimum separation requirement, and provide staff with any additional direction or feedback on the other opportunities presented in this report.  Modify and then adopt Resolution No. 25-62. Modification could include directing staff to draft an amendment that extends the amortization period for STLUs, increases development potential of hotels and motels City-wide, provides for expansion of STLU-allowed areas or capacity, provides for limited-term permitting of STLUs related to the 2028 Olympics or other major regional events, or directs staff to explore the option of a ballot measure to increase the TOT rate.
 Continue the item with the direction to staff to provide additional information.  Do not approve Resolution No. 25-62, and receive and file this report. This action will result in no new ordinance being drafted to maintain or enhance the City’s TOT revenues after the 1007
Meeting Date: May 20, 2025 Agenda Item: 10E.

CITY OF SAN CLEMENTE
expiration of the STLU amortization period, and would also result in maintaining the status quo in processing applications for STLU to STAR conversions on a first-come, first-served basis.

Environmental Review/Analysis:

The initiation of an ordinance to amend the Zoning Ordinance does not qualify as a "project" under the California Environmental Quality Act (CEQA) because it only involves the work of staff to draft such an ordinance for future City Council consideration and has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, § 15378, subd. (a)). The action merely provides approval to allocate staff time to draft a potential ordinance, and does introduce any new activities or changes that could affect the environment. The proposed ordinance itself after being drafted would go through the appropriate environmental review.

Recommended Actions:

Staff Recommendation ..recommendation
STAFF RECOMMENDS that the City Council adopt Resolution No. 25-62 to initiate an amendment to the Zoning Ordinance to provide a process for amortized STLUs to convert to STARs when located on a property with multiple dwelling units, regardless of the 300-foot minimum separation requirement.
..end
Attachment: EXHIBIT

1. Proposed Resolution 25-62
Notification:

None.
1018
EXHIBIT 1
RESOLUTION NO. 25-62

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, INITIATING A ZONING
AMENDMENT TO TITLE 17 (ZONING) OF THE SAN

CLEMENTE MUNICIPAL CODE TO MODIFY STANDARDS

AND PROCESSES RELATED TO SHORT-TERM LODGING
USES
WHEREAS, Title 17 of the San Clemente Municipal Code establishes zoning regulations, development standards, and procedures intended to guide land use and development in accordance with the City’s General Plan; and WHEREAS, per Title 17, amendments to the Zoning Ordinance are necessary to maintain its effectiveness as a regulatory and informational document and to ensure its consistency with the General Plan, adopted specific plans and State law. Zoning amendments are also necessary to provide for the implementation of the City's General Plan; and
WHEREAS, the initiation of a zoning amendment is a preliminary procedural step that enables staff to prepare draft amendments for public review, Planning Commission recommendation, and future City Council consideration; and WHEREAS, on May 20, 2025, the City Council considered a staff report, public comments, and directed staff to initiate zoning amendments described below.

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

SECTION 1. As directed at its May 20, 2025 meeting, the City Council hereby initiates a zoning amendment to Title 17 of the San Clemente Municipal Code to:

A. Provide a process for amortized short-term lodging units (STLUs) to convert to short-term apartment rentals (STARs) regardless of the 300-foot minimum separation requirement.

SECTION 2. 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 ____________________, _______. 1029
Resolution No. 25-62 Page 2
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California 10310

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. 25-62 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
10411

CITY OF SAN CLEMENTE
Tuesday, May 20, 2025
City Council
Regular Meeting Minutes
4:30 p.m. - Closed Session
5:30 p.m. - Business Meeting
Mayor Knoblock
Mayor Pro Tern 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 May 20, 2025 at 5:32 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
None.

BUSINESS MEETING

INVOCATION
Pastor Jared Powell, Paradigm Church, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Wu led the Pledge of Allegiance.

1. Special Presentations
None.

2. Oral Communications (Part 1)
Lois McNicoll commented on the placement of rip rap boulders by the Orange County Transportation Authority (OCTA) along the railroad tracks; expressed concerns regarding behavior of a park ranger.

Amanda Quintanilla narrated a PowerPoint presentation entitled "South Coast Air Quality Management District". A hard copy of the presentation is on file with the City Clerk.

Attachment 3
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
105
City Council Regular Meeting Minutes May 20, 2025
Reva Buck expressed concerns regarding the Broadmoor Homeowners Association's enforcement of trees exceeding height restrictions within the association; urged the City Council to get an update from Broadmoor Homeowners Association on enforcement.

Bill Garcia expressed concerns regarding the Broadmoor Homeowners Association's enforcement of trees exceeding height restrictions within the association; urged the City Council to get an update from Broadmoor Homeowners Association on enforcement.

Joe Wilson, San Clemente, spoke on the proposed sand placement by the Orange County Transportation Authority (OCTA) on San Clemente beaches; expressed concerns regarding safety of placing black sand on the beaches.

Amber Gregg, PierPride, presented a donation of $25,000 on behalf of PierPride to the City for the purchase of a new Christmas tree to be placed on the pier.

Suzie Whitelaw, Save our Beaches San Clemente, opined on the proposed black sand placement by the Orange County Transportation Authority (OCTA).

Eric Fermin expressed concerns regarding the Broadmoor Homeowners Association's enforcement of trees exceeding height restrictions within the association; urged the City Council to get an update from Broadmoor Homeowners Association on enforcement.

Abby Paulson, representing Supervisor Foley, provided an update on action Supervisor Foley is taking concerning sand placement on San Clemente beaches, rail maintenance, nuclear waste removal and the proposed battery storage facility in San Juan Capistrano.

3. Council Member Reports
Councilmember Wu:
• Met with Southern California Association of Governments (SCAG) Senior Government Affairs Officer concerning available grants for the City on May 7, 2025.
• Participated in a ride-a-long with Orange County Sheriff's Department.

Councilmember Loeffler:
• Attended zoom meetings with the Orange County Transportation Authority (OCTA) and "Lowers 28" (discussed Olympics during both meetings) on May 7, 2025.
• Met with a Sea Summit resident regarding bond refunding on May 7, 2025. • Met with Sgt. Streeter (Orange County Sheriff's Department) regarding the Neighborhood Watch program on May 8, 2025.
• Toured the beach and received an update from Marine Safety on May 8, 2025.
• Met with residents regarding issues in North Beach concerning 24 Carrots on

106
City Council Regular Meeting Minutes
May 8, 2025.
• Attended the ribbon cutting for Judge Brewery on May 9, 2025.

May 20, 2025
• Attended the Children's Hospital Orange County fundraiser on May 9, 2025. • Met with a resident regarding a Shorecliffs Golf Course issue on May 12, 2025.
• Met with a resident regarding a commercial lighting issue on May 12, 2025. • Met with a resident regarding Pier Bowl crime issues on May 12, 2025. • Met with a resident regarding North Beach crime issues on May 12, 2025. • Met with a resident regarding a special event permit on May 12, 2025. • Attended the San Clemente Chamber of Commerce Mixer at The Villas by the Sea on May 13, 2025.
• Met with a resident regarding a possible illegal massage parlor on May 13, 2025.
• Met with a resident regarding a San Diego Gas & Electric (SDG&E) issue on May 13, 2025.
• Met with City Manager Hall and Golf Course Manager Gilmore regarding a resident complaint on May 14, 2025.
• Attended the Beaches and Parks Foundation Board Meeting on May 15, 2025.
• Met with a resident regarding Max Berg Park crime concerns on May 16, 2025.
• Assisted a resident in connecting him with Orange County Fire Authority (OCFA) regarding Knox Box on May 16, 2025.
• Met with a resident regarding Community Safety and Welfare Committee opportunity on May 16, 2025.
• Attended the San Clemente Sports Wall of Fame induction on May 17, 2025. • Attended a Council briefing with City Manager and City Attorney on May 19, 2025.
• Responded to numerous texts, emails and phone calls from residents during the two-week period in regarding various topics.

Mayor Pro Tern Enmeier:
• Congratulated San Clemente High School students who completed their Advanced Placement (AP) exams.

Councilmember Cabral:
• Attended a dinner with Sheriff Barnes concerning Chilean gangs. • Attended the Community Coffee Chat at the Senior Center on May 9, 2025. • Attended the Cal Cities Orange County Division Board of Directors meeting on May 9, 2025.
• Attended the San Onofre Nuclear Generating Station (SONGS) Community Engagement Panel meeting.
• Attended the Children's Hospital Orange County fundraiser on May 9, 2025. • Traveled to Washington D.C. and held meetings concerning the impacts of federal budget cuts to the City budget.

Page3of18
107
City Council Regular Meeting Minutes May 20, 2025
Mayor Knoblock:
• Met with stakeholders concerning sand placement on San Clemente beaches.
• Attended a dinner at California State University, Fullerton on May 8, 2025, honoring Patricia Bates, Tony Rackauckas, and Nick Berardino for their public service.
• Attended the Pregnancy Resource Center fundraiser.
• Met with local residents concerning various issues.
• Announced that San Diego Gas and Electric (SDG&E) will be holding a meeting on May 30, 2025 at Laguna Hills Civic Center.

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

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

5. Consideration of agendizing items requiring immediate action None.

6. Closed Session Report - City Attorney
None.

7. Staff Communications
Marine Safety Chief Mellott announced Beach Safety Week May 19-25, 2025; urged beach goers to swim near a lifeguard and understand ocean conditions.

8. Public Hearings
8A. CONTINUED PUBLIC HEARING REGARDING THE INTRODUCTION (FIRST READING) OF AN ORDINANCE AMENDING EXHIBIT "A" OF CHAPTER 8.22

OF THE SAN CLEMENTE MUNICIPAL CODE, RELATING TO THE VERY

HIGH, HIGH, AND MODERATE FIRE HAZARD SEVERITY ZONES
Mayor Knoblock opened the Public Hearing.

Community Development Director Atamian and Building Official Ferguson reviewed the contents of the Administrative Report and responded to City Council inquiries.

Mike Kay opined that evacuation routes, historical fires and vegetation maps should be made available for the public to access.

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

108
City Council Regular Meeting Minutes May 20, 2025
Motion by Councilmember Cabral, second by Councilmember Wu, CARRIED 5-0, to:

1. Develop language for the Ordinance that would put the maps in context for the public to better understand what they mean; including how the maps were created and what the Fire Marshall may or may not have included in their analysis, the language should also make clear that the insurance companies create their own risk management maps and these maps should not be relied on for that purpose (i.e. provide the most favorable and educational language for the community).

2. Set an effective date for the Ordinance as July 24, 2025.

3. Continue the public hearing to the June 3, 2025 Regular City Council meeting.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
Motion by Mayor Knoblock, second by Mayor Pro Tern Enmeier CARRIED 5-0, to reconsider Item 8A - INTRODUCTION (FIRST READING) OF AN ORDINANCE AMENDING EXHIBIT "A" OF CHAPTER 8.22 OF THE SAN

CLEMENTE MUNICIPAL CODE, RELATING TO THE VERY HIGH FIRE HAZARD SEVERITY ZONES.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
The City Council revisited item 8A to:

CONTINUED PUBLIC HEARING REGARDING THE INTRODUCTION (FIRST READING) OF AN ORDINANCE AMENDING EXHIBIT "A" OF CHAPTER 8.22

OF THE SAN CLEMENTE MUNICIPAL CODE, RELATING TO THE VERY

HIGH, HIGH, AND MODERATE FIRE HAZARD SEVERITY ZONES
Mayor Knoblock opened the Public Hearing.

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

1. Develop language for the Ordinance that would put the maps in context for the public to better understand what they mean; including how the maps were created and what the Fire Marshall may or may not have included in their analysis, the language should also make clear that the insurance companies create their own risk management maps and these maps should not be relied on for that purpose (i.e. provide the most favorable and educational language Page5of18
109
City Council Regular Meeting Minutes
for the community).

2. Set an effective date for the Ordinance as July 24, 2025.

May 20, 2025

3. Continue the public hearing to the June 3, 2025 Regular City Council meeting.

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

9. Unfinished Business
9A. NATURE-BASED ADAPTATION PROJECT UPDATE - DRAFT FEASIBILITY STUDY
Coastal Administrator Meyerhoff and Chris Webb, Moffat and Nicol, narrated a PowerPoint presentation entitled "Draft San Clemente Nature-Based Coastal Resiliency Project Feasibility Study" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Suzie Whitelaw opined on submergent vs. emergent breakwaters; suggested starting the proposed project in the south to prevent sand from leaving San Clemente.

Amanda Quintanilla spoke in opposition to emergent breakwaters due to environmental concerns.

Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to receive and file the Administrative Report dated May 20, 2025 and on file with the City Clerk.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Meeting Recess
The City Council recessed at 7:12 p.m. and reconvened at 7:19 p.m. with all City Councilmembers present.

110
City Council Regular Meeting Minutes May 20, 2025

10. New Business
10A. CONSIDERATION OF A RESOLUTION INITIATING A ZONING AMENDMENT TO TITLE 17 (ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE TO

MAKE CHANGES TO DESIGN REVIEW SUBCOMMITTEE PROCESSES AND

CHANGES TO CLEANUP, CLARIFY, AND STREAMLINE STANDARDS AND

PROCESSES, AND FINDING THE ACTION EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Councilmember Loeffler disclosed that his wife is a member of the Planning Commission.

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

Karen Prescott-Loeffler, Planning Commissioner, spoke in support of maintaining the current Design Review Subcommittee process.

Amanda Quintanilla spoke in support of maintaining the current Design Review Subcommittee process.

Larry Culbertson spoke in support of maintaining the current Design Review Subcommittee process.

Barton Crandell, Planning Commissioner and Design Review Subcommittee Member, spoke in support of maintaining the current Design Review Subcommittee process.

Cameron Cosgrove, Planning Commission Chair and Design Review Subcommittee Member, spoke in support of the staff recommendation with alternative 1; opined on the benefits of the Design Review Subcommittee for applicants.

Jordan Segraves spoke in support of maintaining the current Design Review Subcommittee process.

Edward R. Kweskin, San Clemente, opined o� the approval process for the Planning Commission as it relates to the requirements and submittals by applicants.

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

1. Make no changes to current Design Review Subcommittee (DRSC) processes (Alternative 1 ).

7 I
111
City Council Regular Meeting Minutes May 20, 2025

2. Adopt Resolution No. 25-60, striking the language as proposed in Attachment 1, and initiating a Zoning Amendment to proceed with code cleanups and batch amendments described in this Administrative Report and dated May 20, 2025.

3. Find that initiation of a zoning amendment is not a project and is exempt from the California Environmental Quality Act (CEQA).

4. Direct staff to evaluate making the Design Review Subcommittee review optional for applicants.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
108. CONSIDERATION OF DESIGN ALTERNATIVES FOR BICYCLE
IMPROVEMENTS ON AVENIDA PICO BETWEEN THE 1-5 FREEWAY AND

THE CALLE FRONTERA/AVENIDA PRESIDIO INTERSECTION
Assistant City Engineer Ponsen and Traffic Engineer Kim narrated a PowerPoint presentation entitled "Bicycle Improvements on Avenida Pico Bet. 1-5 FWA Y and Calle Frontera/Avenida Presidio" and responded to City Council inquiries.

Amanda Quintanilla expressed concerns regarding land stability and safety.

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

Adopt Resolution No. 25-61, which will:

1. Authorize staff to proceed with design Alternative 1 with Class 1 Deviation as outlined in Attachment 2 of the Administrative Report dated May 20, 2025, and on file with the City Clerk.

2. Authorize staff to initiate negotiations with impacted property owners for potential acquisitions of an easement or land dedication for widening of Avenida Pico.

3. Authorize staff to submit applications for grant opportunities for design and/or construction funding.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None

112
City Council Regular Meeting Minutes May 20, 2025
1 0C. INTRODUCTION (FIRST READING) OF AN ORDINANCE DELETING SECTION 15.08.020(H)(8) AND ADDING CHAPTER 15.19 - ELECTRIC VEHICLE CHARGING STATIONS, TO TITLE 15 - BUILDINGS AND

CONSTRUCTION OF THE SAN CLEMENTE MUNICIPAL CODE, TO PROVIDE

AN EXPEDITED, STREAMLINED PERMITTING PROCESS FOR ELECTRIC

VEHICLE CHARGING SYSTEMS AND FINDING THE ORDINANCE EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Jake Strand expressed concerns regarding streamlining as it relates to reduced public input.

Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to introduce, and conduct the first reading of Ordinance No. 1792 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DELETING SECTION 15.08.020(H)(8) AND ADDING CHAPTER

15.19 TO TITLE 15 OF THE SAN CLEMENTE MUNICIPAL CODE TO SET

FORTH AN EXPEDITED, STREAMLINED PERMITTING PROCESS FOR
ELECTRIC VEHICLE CHARGING SYSTEMS.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
10D. CONSIDERATION OF AND POTENTIAL INTRODUCTION (FIRST READING)

OF AN ORDINANCE TO IMPOSE TERM LIMITS ON CITY COMMISSIONS

AND/OR COMMITTEES, WITH THE EXCEPTION OF THE PLANNING

COMMISSION
Edward R. Kweskin, San Clemente, suggested an addition to the Ordinance related to the Beaches, Parks and Recreation Commission; the document with suggested language is on file with the City Clerk.

Amanda Quintanilla commented on the importance of having qualified commission and committee members.

Susan Ambrose, San Clemente, spoke on the roll of commission and committee members.

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

1. Introduce and conduct the first reading of Ordinance No. 1790 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADDING SECTIONS 2.28.080, 2.36.080, 2.43.080, 2.45.080 AND 2.46.080 TO THE MUNICIPAL CODE OF THE CITY OF SAN

CLEMENTE TO ADD TERM LIMITS, RELATING TO THE BEACHES,

PARKS AND RECREATION COMMISSION, GOLF COURSE COMMITTEE,

INVESTMENT ADVISORY COMMITTEE, ARTS AND CULTURE

113
City Council Regular Meeting Minutes May 20, 2025

COMMITTEE, AND COMMUNITY SAFETY AND WELFARE COMMITTEE,
RESPECTIVELY.

2. Add section 5.5 to the Ordinance which will read as follows:
"SECTION 5.5: There shall be a 10-year life time term limit for anyone on any City Commission or Committee with the exception of the Planning Commission."
AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
Meeting Recess
The City Council recessed at 8:31 p.m. and reconvened at 8:37 p.m. with all City Councilmembers present.
10E. CONSIDERATION OF A RESOLUTION TO INITIATE A ZONING AMENDMENT

RELATED TO THE AMORTIZATION PROCESS OF SHORT-TERM LODGING

UNITS, AND AN INFORMATIONAL REPORT OF EXISTING TRANSIENT

OCCUPANCY TAX REVENUE AND OPPORTUNITIES FOR ENHANCEMENT

OF THAT REVENUE SOURCE
Community Development Director Atamian and City Planner Lightfoot reviewed the contents of the Administrative Report and responded to City Council inquiries.

Amanda Quintanilla narrated a PowerPoint presentation entitled "STLU's Revisions?". A hard copy of the presentation is on file with the City Clerk.

Brad Wright spoke in support of indefinitely allowing short term lodging units (STLUs) in good standing to operate.

Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 4-1 (Councilmember Wu voting NOE) to direct the Planning Commission and staff to review and make recommendations to the City Council concerning the following:

1. Extend the amortization period for the amortized short term lodging units (STLUs) on a regular on-going basis subject to annual review as long as there are no major issues/violations for the short term lodging unit.

2. Increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

3. Expand the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events.

114
City Council
- - - --------------
AYE:

NOE:

Regular Meeting Minutes
Cabral, Enmeier, Loeffler and Mayor Knoblock
Wu
May 20, 2025
10F. CONSIDERATION AND POSSIBLE CREATION OF A LOCAL OLYMPIC

COMMITTEE OR AD HOC SUB-COMMITTEE TO ADDRESS THE

OPPORTUNITIES AND CONCERNS ASSOCIATED WITH HOSTING A
PORTION OF THE LOS ANGELES OLYMPIC GAMES 2028
Motion by Councilmember Cabral, DIED FOR A LACK OF SECOND , to establish one ad hoc Olympic 2028 Committee.

Motion by Councilmember Loeffler, second by Mayor Pro Tern Enmeier, CARRIED 5-0, to continue consideration of establishing an ad hoc committee(s) until the June 3, 2025 Regular City Council meeting.

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

11. Consent Calendar
A.

Item 11 D - NOTICE OF COMPLETION - CAMINO CAPISTRANO CROSSWALK IMPROVEMENTS was removed from the Consent Calendar for discussion.

City Council Minutes
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
(1) APPROVE THE CITY COUNCIL SPECIAL MEETING MINUTES OF MAY 2, 2025.
(2) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF MAY 6, 2025.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
B. Commission/Committee Minutes
None.

C. Warrant Register
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:
(1) APPROVE WARRANT NOS.
604268 THROUGH 604388, PAID ON
4-25-25, IN THE AMOUNT OF $709,256.80

115
I·
City Council Regular Meeting Minutes May 20, 2025
(2) APPROVE HAND WRITE NO. 604573,
WIRE TRANSFER NOS. 3233
THROUGH 3241 AND WARRANT NOS.
604389 THROUGH 604572, PAID ON
5-2-25, IN THE AMOUNT OF $1,446,276.82
(3) APPROVE WARRANT NOS.
604574 THROUGH 604686, PAID ON
5-9-25, IN THE AMOUNT OF

TOTAL WARRANT REGISTER
$3,686,204.61
$5,841,738.23
AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
Payroll Register
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

APPROVE AUTOMATIC DEPOSIT ADVISES
102632 THROUGH 102972, FOR THE PERIOD
4-14-25 THROUGH 4-27-25, PAID
ON 5-2-25, IN THE AMOUNT OF $529,954.59
TOTAL PAYROLL REGISTER $529,954.59
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11 E. NOTICE OF COMPLETION - THREE LIFEGUARD TOWERS REPLACEMENT (2024)
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-64, which will:

1. Accept three Lifeguard Towers Replacement, CIP Project No. 22104, from the contractor, Pantheon Diversified, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed three Lifeguard Towers Replacement.

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, Pantheon Diversified, Inc.

4. Authorize the City Clerk to release the performance bond for this project upon

116
City Council Regular Meeting Minutes May 20, 2025
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
11F. NOTICE OF COMPLETION - RICHARDT. STEED MEMORIAL PARK PUMP TRACK
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-65, which will:

1. Accept the San Clemente Pump Track, CIP No. 15109, from the contractor, American Ramp Company.

2. Authorize the City Clerk to execute and record the Notice of Completion for the San Clemente Pump Track.

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, American Ramp Company.

4. Authorize the City Clerk to release the performance bond.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
11G. CONTRACT AWARD - FOR AS-NEEDED ENGINEERING DEVELOPMENT

PLAN REVIEW SERVICES
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-66, which will:

1. Award professional services agreements to Derek J. McGregor Inc. (dba DMc Engineering), West Coast Civil, Inc., and TKE Engineering, Inc. for on-call as-needed engineering plan check services.

2. Approve, and authorize the City Manager to execute, Contract No. C25-24, by and between the City of San Clemente and Derek J. McGregor Inc. (dba DMc Engineering), providing for on-call as-needed engineering plan check services, for a term of three (3) years in an amount not to exceed $70,000 annually with two optional one-year extensions exercisable in the City Manager's discretion.

117
City Council Regular Meeting Minutes May 20, 2025

3. Approve, and authorize the City Manager to execute, Contract No. C25-25, by and between the City of San Clemente and West Coast Civil, Inc., providing for on-call as-needed engineering plan check services, for a term of three (3) years in an amount not to exceed $70,000 annually with two optional one-year extensions exercisable in the City Manager's discretion.

4. Approve, and authorize the City Manager to execute, Contract No. C25-26, by and between the City of San Clemente and TKE Engineering, Inc., providing for on-call as-needed engineering plan check services, for a term of three (3) years in an amount not to exceed $70,000 annually with two optional one-year extensions exercisable in the City Manager's discretion AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11H. CONTRACT AWARD - PURCHASE AND INSTALLATION OF STORM DRAIN

TRASH CAPTURE DEVICES FOR THE EL CAMINO REAL CORRIDOR
RUNOFF TREATMENT PROJECT. AUTHORIZING A RELATED

APPROPRIATION AND FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-67, which will:

1. Authorize an appropriation of $328,000 from an Orange County Transportation Authority (OCTA) Environmental Cleanup Program Grant to Account No. 057-543-43690-000-26802.

2. Find the El Camino Real Corridor Runoff Treatment Project, CIP Project No. 26802, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing facilities, 14 CCR Section 15301) of the State CEQA Guidelines.

3. Authorize an exemption to the competitive bidding requirements for and award the El Camino Real Corridor Runoff Treatment Project contract to G2 Construction, Inc. as a cooperative purchase.

4. Approve, and authorize the City Manager to execute, Contract No. C25-27, by and between the City of San Clemente and G2 Construction, Inc., providing for the El Camino Real Corridor Runoff Treatment Project, in an amount not to exceed $410,000, in a form substantially similar to Contract No. C25-27 (Attachment 5).

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

118
City Council Regular Meeting Minutes May 20, 2025
111. CONSIDERATION OF A RESOLUTION APPROVING AN ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) M2 ENVIRONMENTAL CLEANUP PROGRAM TIER 1 GRANT SUBMITTAL AND A 20% MATCH FOR THE

INLAND RESIDENTIAL AND RANCHO SAN CLEMENTE INDUSTRIAL

RUNOFF TREATMENT PROJECT AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-68, which will:

1. Find the action and the Inland Residential and Rancho San Clemente Industrial Runoff Treatment Project exempt from the California Environmental Quality Act under Class 1 (Existing Facilities, 14 CCR 15301 ).

2. Approving and ratifying the submittal of the Orange County Transportation Authority (OCTA) Project X Tier 1 Grant Application (Attachment 4).

3. Accepting any grant funds that are awarded.

4. Approving and authorizing a 20% local funding contribution (match) if the grant is awarded.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11J. CONSIDERATION OF A RESOLUTION FOR THE ACCEPTANCE OF 2025

DONATION FROM FRIENDS OF SAN CLEMENTE BEACHES, PARKS &

RECREATION FOUNDATION
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to Adopt Resolution No. 25-69 to accept a donation of $56,595 from the Friends of San Clemente Beaches, Parks & Recreation Foundation to support 2025 recreation programs, events, and scholarships, and to authorize the Beaches, Parks & Recreation Director to ensure the proper disbursements of funds associated with the donation.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None
Page15of18
119
City Council Regular Meeting Minutes May 20, 2025
11K. CONSIDERATION OF A RESOLUTION AUTHORIZING A SUPPLEMENTAL

APPROPRIATION FROM THE GOLF CAPITAL REPLACEMENT RESERVE

FOR CLUBHOUSE HVAC REPLACEMENTS AND PLUMBING MAINTENANCE

AND FINDING THE PROJECT CATEGORICALLY EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to:

Adopt Resolution No. 25-70, which will:

1. Authorize a supplemental appropriation of $43,517 from the Golf Capital Replacement Reserve to the Golf Depreciation Reserve Account No. 056- 666-45300-000-00000 for work related to improvements at the golf clubhouse, including the HVAC system and plumbing lines.

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

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

ITEM REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
11 D. NOTICE OF COMPLETION - CAMINO CAPISTRANO CROSSWALK

IMPROVEMENTS
Tom Streeter thanked the City Council for the Camino Capistrano crosswalk improvements.

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

Adopt Resolution No. 25-63, which will:

1. Accept the Camino Capistrano Crosswalk Improvements, CIP Project 15321, from the contractor, Bear Electrical Solutions, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the Camino Capistrano Crosswalk Improvements.

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, Bear Electrical Solutions, Inc.

120
City Council Regular Meeting Minutes May 20, 2025

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

12. Oral Communications (Part 2)
Tony Rubolino commented on the "Council Corner" editorial by Mayor Pro Tern Enmeier in the April 24, 2025 edition of the San Clemente Times.

13. Future Agenda Items
Broadmoor Homeowners Association
The City Council requested a memo updating them on the Broadmoor Homeowners Association enforcement efforts concerning trees exceeding the height restriction within the association.

14. Reports
A. City Attorney
None.

B. City Manager
City Manager Hall reported that the following contract was executed under his signature authority:

1. Community Counterparts Services providing for professional planning consulting services in the amount of $10,000.

15. Adjournment
Motion by Mayor Pro Tern Enmeier, second by Mayor Knoblock, CARRIED 5-0, to adjourn at 9:25 p.m. The next Regular Meeting will be held on June 3, 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
Page17of18
121
City Council Regular Meeting Minutes
Y CLERK of the City of
San Clemente, California
Page18of18
May 20, 2025
122
DRAFT

CITY OF SAN CLEMENTE
Tuesday, June 3, 2025
City Council
Regular Meeting Minutes
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
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 June 3, 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
Motion by Mayor Pro Tem Enmeier, second by Mayor Knoblock, CARRIED 5-0, to recess to Closed Session at 4:30 p.m. to discuss the following:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 1
Case Name: City of San Clemente v. Alfie Shahid, et al., Orange County Superior Court Case No. 30-2024-01381591-CU-MC-CJC
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Closed Session concluded at 4:46 p.m.

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

INVOCATION
Pastor Karl Stuckenberg, St. Andrew's By-the-Sea United Methodist Church, gave the invocation.

Attachment 4
123
DRAFT
City Council Regular Meeting Minutes June 3, 2025

PLEDGE OF ALLEGIANCE
Councilmember Cabral led the Pledge of Allegiance.

1. Special Presentations
None.

2. Oral Communications (Part 1)
The following individuals spoke in opposition to extending the amortization of short term lodging units:

Matthew Flesher, San Clemente
Chuck Linnert
Dan Bowman
Chris Booth, San Clemente
Marcia Rouvell, San Clemente
Wayne Eggleston
Gale Gordon, San Clemente
Tricia Mading
Kathy Ward, San Clemente
Carter Redish, San Clemente
David Hurwitz, San Clemente
Joe Janis
Bernice Rivera-Giles
Kristi Dassonville, San Clemente
Lois McNicoll narrated a video of work being performed by the Orange County Transportation Authority along the railroad tracks; urged the City Council to take action on items of interest to the community. A copy of the video is on file with the City Clerk.

Donna Vidrine commented on the upcoming 2028 Olympics; recognized the Beaches, Parks and Recreation Memorial Day Observance and the Downtown Business Association's Annual Car Show.

Amanda Quintanilla commented on the history of short term lodging units within the City; commented on the proposed battery storage facility in San Juan Capistrano.

Suzie Lantz, San Clemente Chamber of Commerce, narrated a PowerPoint presentation on upcoming events. A hard copy of the presentation is on file with the City Clerk.

Reorganization of Agenda
The City Council considered Item 11A(1) City Council Regular Meeting Minutes of May 20, 2025 prior to Item No. 3 - Councilmember Reports on the agenda, please reference page 14 of these minutes for a summary of action.

124
DRAFT
City Council Regular Meeting Minutes June 3, 2025

3. Council Member Reports
Councilmember Wu:
· Attended the Memorial Day Observance on May 26, 2025 at the Community Center.
· Attended the Park Semper Fi 20th Anniversary Memorial Day event on May 26, 2025.
· Attended the white sea bass release on May 28, 2025.
· Attended the Downtown Business Association Car Show on May 31, 2025.

Councilmember Loeffler:
· Spoke with a resident regarding an issue at Shorecliffs on May 21, 2025. · Spoke with a resident regarding San Diego Gas & Electric gas line installation on May 21, 2025.
· Met with a resident concerning a possible code violation on May 22, 2025. · Contacted San Diego Gas & Electric government affairs representative regarding a gas line issue on May 23, 2025.
· Attended the Memorial Day Observance on May 26, 2025 at the Community Center.
· Attended the Park Semper Fi 20th Anniversary Memorial Day event on May 26, 2025.
· Attended a Desalination briefing with the City Manager and Public Works Director/City Engineer on May 27, 2025.
· Attended a Public Safety Committee Meeting on May 27, 2025. · Judged the culinary competition at San Clemente High School on May 28, 2025.
· Attended PierPride meeting with Supervisor Foley’s office concerning the pier entrance project on May 30, 2025.
· Attended the Orange County Fire Authority Best and Bravest ceremony on May 30, 2025.
· Spoke with residents regarding concerns related to short term lodging units on June 2, 2025.
· Responded to numerous resident emails regarding short term lodging units on June 2, 2025.

Councilmember Cabral:
· Toured the Orange County Transportation Authority (OCTA) revetment work along the Railroad tracks.
· Toured the Linda Lane Pump Station.
· Met with San Diego Gas & Electric concerning available sand at Prado Dam. · Participated in a community discussion concerning public safety. · Met with a representative from Local 3861 Orange County Professional Firefighters concerning issues within the association.
· Attended the Orange County Fire Authority Board Meeting on May 22, 2025. · Attended the Polynesian Festival on May 24, 2025 at the San Clemente Community Center.

125
DRAFT
City Council Regular Meeting Minutes June 3, 2025
· Attended the Memorial Day Observance on May 26, 2025 at the Community Center.
· Attended the Park Semper Fi 20th Anniversary Memorial Day event on May 26, 2025.
· Attended the Investment Advisory Committee meeting on May 27, 2025. · Attended a meeting with a state senator.
· Attended an open house with State Senator Strickland on May 30, 2025. · Attended the Orange County Taxpayers Association luncheon on May 30, 2025.
· Attended the Orange County Fire Authority Best and Bravest ceremony on May 30, 2025.
· Attended a meeting with the Association of California Cities - Orange County on June 2, 2025.
· Announced “Olympic Day” on June 23, 2025.
· Attended the Downtown Business Association Car Show and announced the winners on May 31, 2025.

Mayor Pro Tem Enmeier:
· Attended the Cal Cities Coastal Leadership Committee meeting on May 22, 2025.
· Attended the Memorial Day Observance on May 26, 2025 at the Community Center.
· Attended the Park Semper Fi 20th Anniversary Memorial Day event on May 26, 2025.
· Attended the white sea bass release on May 28, 2025.
· Attended the Orange County Fire Authority Best and Bravest ceremony on May 30, 2025.
· Attended the Statement on Auditing Standards (SAS) No. 99 Fraud Inquiry meeting on May 29, 2025.

Mayor Knoblock:
· Attended the Orange County Vector Control Meeting on May 15, 2025. · Toured Linda Lane Pump Station on June 3, 2025.
· Toured the Orange County Transportation Authority (OCTA) revetment work along the Railroad tracks.
· Toured the Port of Long Beach regarding available surveillance technology on May 29, 2025.
· Attended the Memorial Day Observance on May 26, 2025 at the Community Center.
· Attended the Park Semper Fi 20th Anniversary Memorial Day event on May 26, 2025.
· Attended the Downtown Business Association Car Show on May 31, 2025. · Site Tour at Prado Dam on May 28, 2025.
· Met with State Senator Strickland; announced Senator Strickland will tour San Clemente.

126
DRAFT
City Council Regular Meeting Minutes June 3, 2025

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

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

5. Consideration of agendizing items requiring immediate action None.

6. 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 - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 1
Case Name: City of San Clemente v. Alfie Shahid, et al., Orange County Superior Court Case No. 30-2024-01381591-CU-MC-CJC

7. Staff Communications
City Manager Hall displayed a PowerPoint concerning public hearing information/public comment portal and additional resources concerning the public hearing for the proposed battery storage site in San Juan Capistrano. A hard copy of the presentation is on file with the City Clerk.

8. Public Hearings
8A. CONTINUED PUBLIC HEARING REGARDING THE INTRODUCTION (FIRST READING) OF AN ORDINANCE AMENDING EXHIBIT “A” OF CHAPTER 8.22

OF THE SAN CLEMENTE MUNICIPAL CODE, RELATING TO THE VERY

HIGH, HIGH, AND MODERATE FIRE HAZARD SEVERITY ZONES
Mayor Knoblock opened the public hearing.

There being no one desiring to speak, Mayor Knoblock closed the public hearing.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to introduce and conduct the first reading of Ordinance 1791 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING EXHIBIT “A” OF CHAPTER 8.22 OF

THE SAN CLEMENTE MUNICIPAL CODE TO INCLUDE UPDATES TO THE

MAP CLASSIFICATION OF MODERATE, HIGH AND VERY HIGH FIRE HAZARD SEVERITY ZONES WITHIN THE CITY OF SAN CLEMENTE.

127
DRAFT
City Council Regular Meeting Minutes June 3, 2025
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
8B. STATUS REPORT ON CITY OF SAN CLEMENTE POSITION VACANCIES

AND RECRUITMENT AND RETENTION EFFORTS IN COMPLIANCE WITH ASSEMBLY BILL 2561/GOVERNMENT CODE SECTION 3502.3
Mayor Knoblock opened the public hearing.

There being no one desiring to speak, Mayor Knoblock closed the public hearing.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to receive and file the Administrative Report dated June 6, 2025 and on file with the City Clerk.

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

9. Unfinished Business
9A. CONTINUED DISCUSSION REGARDING THE POSSIBLE CREATION OF A

LOCAL OLYMPIC COMMITTEE OR AD HOC SUB-COMMITTEE TO

ADDRESS THE OPPORTUNITIES AND CONCERNS ASSOCIATED WITH
HOSTING A PORTION OF THE LOS ANGELES OLYMPIC GAMES 2028 Amanda Quintanilla spoke in support of a citizen committee for the 2028 Olympics.

Kristi Dassonville, San Clemente, spoke in support of an Olympic Committee.

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

128
DRAFT
City Council Regular Meeting Minutes June 3, 2025

10. New Business
10A. FISCAL YEAR 2025-26 BUDGET ADJUSTMENTS AND ADOPTION OF A

RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26
Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to:

1. Adopt Resolution No. 25-71 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADOPTING

AND APPROVING THE ADJUSTMENTS TO THE CITY OF SAN
CLEMENTE MUNICIPAL BUDGET FOR FISCAL YEAR 2025-26.

2. Adopt Resolution No. 25-72 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

ESTABLISHING AN APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10B. CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING

REVISED SALARY SCHEDULE FOR YEAR TWO OF THE APPROVED
FISCAL YEARS 2024-25 AND 2025-26 BUDGET
Councilmember Cabral summarized the final actions on salaries, salary schedule and compensation paid in the form of fringe benefits to local agency executives, specifically that adoption of Resolution No. 25-73, would approve a salary increase of 3% for all benefited full time City employees, including executive management positions, as well as approving a revised salary schedule effective July 7, 2025.

Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to adopt Resolution No. 25-73, approving a classification change and revised salary schedule effective July 7, 2025.

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

129
DRAFT
City Council Regular Meeting Minutes June 3, 2025
10C. CONSIDERATION OF EXTENDING THE GOAT GRAZING NOXIOUS WEED AND FIRE FUEL REDUCTION PILOT PROGRAM UNTIL DECEMBER 31, 2025 Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to continue this item to the June 17, 2025 City Council meeting.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10D. CONSIDERATION OF A RESOLUTION AWARDING AN EMERGENCY

CONSTRUCTION CONTRACT TO ALLIANCE DIVERSIFIED ENTERPRISES INC. FOR THE INSTALLATION OF CAISSONS AND TIEBACKS FOR THE MARQUITA SLOPE INTERIM RECONSTRUCT, CIP PROJECT NO. 21208, IN AN AMOUNT NOT TO EXCEED $2,292,421, APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $605,996, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT, AND FINDING

THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Amanda Quintanilla expressed concerns regarding the California Joint Powers Insurance Authority (CJPIA) coverage; spoke in support of competitively bidding this project.

Mike Kay commented on the competitive bidding process.

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

1. To direct staff to competitively bid the installation of caissons and tiebacks for the Marquita Slope Interim Reconstruct Project with prioritization of time reduction when possible.

2. Direct staff to take necessary action to extend the emergency coastal permit with the California Coastal Commission for the installation of caissons and tiebacks for the Marquita Slope Interim Reconstruct Project.

3. Direct staff to develop plans and specifications for the installation of caissons and tiebacks for the Marquita Slope Interim Reconstruct Project as soon as possible.

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

130
DRAFT
City Council Regular Meeting Minutes June 3, 2025
10E. FY 2025-26 CONTRACT BETWEEN THE CITY OF SAN CLEMENTE AND THE

COUNTY OF ORANGE FOR POLICE SERVICES
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 25-75 entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH THE COUNTY OF ORANGE FOR POLICE SERVICES FOR FY 2025-26.

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

11. Consent Calendar
The City Council removed Items 11A(1), 11K and 11M for discussion.

B. Commission/Committee Minutes
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to receive and file the following:
(1) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF APRIL 22, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
C. Warrant Register
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:
(1) APPROVE WIRE TRANSFER NOS.
3242 THROUGH 3247 AND WARRANT NOS.
604687 THROUGH 604831, PAID ON
5-16-25, IN THE AMOUNT OF $1,664,625.69
(2) APPROVE WARRANT NOS.
604832 THROUGH 604959, PAID ON
5-23-25, IN THE AMOUNT OF $946,837.57
TOTAL WARRANT REGISTER $2,611,463.26
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

131
DRAFT
City Council Regular Meeting Minutes June 3, 2025
Payroll Register
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

APPROVE WARRANT NO. 978 AND
AUTOMATIC DEPOSIT ADVISES 102973
THROUGH 103329, FOR THE PERIOD
4-28-25 THROUGH 5-11-25, PAID
ON 5-16-25, IN THE AMOUNT OF $534,311.81
TOTAL PAYROLL REGISTER $534,311.81
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11D. ADOPT ORDINANCE NO. 1790 (SECOND READING) - IMPOSING TERM

LIMITS ON CITY COMMISSIONS AND COMMITTEES, WITH THE EXCEPTION

OF THE PLANNING COMMISSION
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Ordinance No. 1790 entitled AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADDING SECTIONS 2.28.080, 2.36.080, 2.43.080, 2.45.080 AND 2.46.080 TO THE

MUNICIPAL CODE OF THE CITY OF SAN CLEMENTE TO ADD TERM LIMITS,

RELATING TO THE BEACHES, PARKS AND RECREATION COMMISSION,

GOLF COURSE COMMITTEE, INVESTMENT ADVISORY COMMITTEE, ARTS

AND CULTURE COMMITTEE, AND COMMUNITY SAFETY AND WELFARE COMMITTEE, RESPECTIVELY.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11E. ADOPT ORDINANCE NO. 1792 (SECOND READING) - DELETING SECTION

15.08.020(H)8 AND ADDING CHAPTER 15.19 - ELECTRIC VEHICLE CHARGING STATIONS TO TITLE 15 - BUILDINGS AND CONSTRUCTION OF

THE SAN CLEMENTE MUNICIPAL CODE, TO PROVIDE AN EXPEDITED,

STREAMLINED PERMITTING PROCESS FOR ELECTRIC VEHICLE

CHARGING SYSTEMS AND FINDING THE ORDINANCE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Ordinance No. 1792 entitled AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DELETING SECTION 15.08.020(H)(8) AND ADDING CHAPTER 15.19 TO TITLE 15 OF

THE SAN CLEMENTE MUNICIPAL CODE TO SET FORTH AN EXPEDITED,

STREAMLINED PERMITTING PROCESS FOR ELECTRIC VEHICLE
CHARGING SYSTEMS.

132
DRAFT
City Council Regular Meeting Minutes June 3, 2025
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11F. RESOLUTION SETTING COMPENSATION FOR ALL CITY COMMISSIONS AND COMMITTEES AND REPEALING RESOLUTION NOS. 99-56, 23-75 AND 23-88
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 25-76 entitled A RESOLUTION OF THE

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

TO COMPENSATION PAID TO MEMBERS OF THE ARTS AND CULTURE

COMMITTEE, BEACHES, PARKS AND RECREATION COMMISSION,

COMMUNITY SAFETY AND WELFARE COMMITTEE, DESIGN REVIEW

SUBCOMMITTEE, GOLF COURSE COMMITTEE, INVESTMENT ADVISORY

COMMITTEE AND PLANNING COMMISSION AND REPEALING RESOLUTION NOS. 99-56, 23-75 AND 23-88.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11G. RECORDS DESTRUCTION
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to Adopt Resolution No. 25-77 entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS
PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

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

133
DRAFT
City Council Regular Meeting Minutes June 3, 2025
11H. NOTICE OF COMPLETION - REPLACEMENT OF PLAYGROUND

SUBSTRATE SURFACING AT SAN GORGONIO PARK
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 25-78, which will:

1. Accept the replacement of the playground surfacing at San Gorgonio Park, PN 11148, from the contractor, Robertson Industries, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the playground surfacing replacement at San Gorgonio Park.

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, Robertson Industries, 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
11I. CONSIDERATION OF A RESOLUTION REJECTING ALL BIDS FOR THE

CAMINO VERA CRUZ RECYCLED WATER LINE EXTENSION, CIP PROJECT NO. 17407
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 25-79, which will:

1. Reject all bids received on May 5, 2025, for the Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407, pursuant to Section 20166 of the Public Contract Code.

2. Authorize staff to re-scope the bid package and re-bid the Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407, with a revised project scope.

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

134
DRAFT
City Council Regular Meeting Minutes June 3, 2025
11J. CONTRACT AWARD - REHABILITATION OF TWO (2) 6” A.C.P. DOMESTIC

WATER LINES AS PART OF EL LEVANTE PRESSURE REDUCING STATION

REHABILITATION, AND FINDING THE PROJECT CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No 25-80, which will:

1. Find the Rehabilitation of 6” A.C.P. Domestic Water Lines, CIP Project No. 15409, 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 Rehabilitation of 6” A.C.P. Domestic Water Lines construction contract to ADV Reline, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C25- 29, by and between the City of San Clemente and ADV Reline, Inc., providing for the Rehabilitation of 6” A.C.P. Domestic Water Lines, in an amount not to exceed $74,596, in a form substantially similar to Contract No. 25-29 (Attachment 1).

4. Authorize the City Manager or designee to approve total project overages not to exceed 10 percent of the construction costs.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11L. CONSIDERATION OF A RESOLUTION TO DESIGNATE FISCAL YEAR (FY) 2025-2026 STREET REHABILITATION PROJECTS PURSUANT TO SENATE BILL 1 (SB 1) THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 25-82 entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-2026 FUNDED BY SENATE BILL 1 (SB 1): THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 AND FINDING

THE PROJECTS CATEGORICALLY EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION 15301), AND CLASS 2 (REPLACEMENT OR RECONSTRUCTION, 14 CCR SECTION 15302) OF THE STATE CEQA GUIDELINES.

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

135
DRAFT
City Council Regular Meeting Minutes June 3, 2025

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
11A1. APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF MAY 20, 2025.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 4-0 (Councilmember Wu abstained), to amend the minutes of May 20, 2025 Item 10E to have the motion read as follows: (Italicized text is added to the minutes)
Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 4-1 (Councilmember Wu voting NOE) to direct the Planning Commission and staff to review and make recommendations to the City Council concerning the following:

1. Extend the amortization period for the amortized short term lodging units (STLUs) on a regular on-going basis subject to annual review as long as there are no major issues/violations for the short term lodging unit.

2. Increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly.

3. Expand the allowed areas or capacities for STLUs, including the option for a limited-term expansion related to the 2028 Olympics or other major regional events.

AYE: Cabral, Enmeier, Loeffler and Mayor Knoblock
NOE: None
ABSTAIN: Wu
11K. OFFSHORE SAND SOURCE INVESTIGATION BUDGET INCREASE,

CONSIDERATION OF ENTERING INTO AN AGREEMENT WITH THE

ORANGE COUNTY TRANSPORTATION AUTHORITY AND SUBSEQUENTLY

AMENDING THE PROFESSIONAL SERVICES AGREEMENT WITH COASTAL

FRONTIERS
Amanda Quintanilla spoke in support of the project.

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

1. Adopt Resolution No. 25-81 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING

AN AGREEMENT WITH THE ORANGE COUNTY TRANSPORTATION

AUTHORITY AND SUBSEQUENTLY AMENDING THE PROFESSIONAL

SERVICES AGREEMENT WITH COASTAL FRONTIERS FOR THE
OFFSHORE BORROW SITE INVESTIGATION.

136
DRAFT
City Council Regular Meeting Minutes June 3, 2025

2. Approve, and authorize the City Manager to execute, Contract No. C25-30, by and between the City of San Clemente and the Orange County Transportation Authority, providing for additional funding for the offshore sand source investigation, in the amount of $180,000 in a form substantially similar to Contract No. C25-30 (Attachment 1).

3. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No. C24-61, by and between the City of San Clemente and Coastal Frontiers, providing for additional funding for the offshore sand source investigation to allow for additional sand site exploration studies for the Coastal Rail Stabilization Priority Project, the total compensation shall not exceed $976,266.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11M. CONSIDERATION OF A RESOLUTION FOR RENEWED MEASURE M2 ANNUAL FUNDING ELIGIBILITY - FISCAL YEAR 2025-2026
Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

1. Approve and adopt the 2025 Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2025-2026 through 2031-2032.

2. Adopt Resolution No. 25-83 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE CONCERNING THE STATUS

AND UPDATE OF THE CIRCULATION ELEMENT, AND MITIGATION FEE PROGRAM FOR THE MEASURE M (M2) PROGRAM.

3. Adopt Resolution No. 25-84 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE CONCERNING THE STATUS

AND UPDATE OF THE PAVEMENT MANAGEMENT PLAN FOR THE
MEASURE M (M2) PROGRAM.

12. Oral Communications (Part 2)
None.

13. Future Agenda Items
Olympic Day Presentation
Councilmember Cabral, with the support of Councilmember Loeffler, requested that the City Manager to work with the LA 28 Olympic Committee regarding a presentation for "Olympic Day" at the June 17, 2025 City Council meeting.

137
DRAFT
City Council Regular Meeting Minutes June 3, 2025
Short Term Lodging Units Amortization
Councilmember Loeffler, with the support of Councilmember Wu and Mayor Pro Tem Enmeier, agendized consideration of the expiration of the short term lodging units amortization issue for the June 17, 2025 City Council meeting.

14. Reports
A. City Attorney
None.

B. City Manager
City Manager Hall announced he executed the following contracts under his signature authority:

1. Landscape Structures Inc. providing for the Bonito Canyon Park Playground Shade Structure in the amount of $47,137.42.

2. We Do Lights providing for T-Zone Year-Round Tree Lighting in the amount of $29,389.50.

3. Ninyo and Moore Geotechnical & Environmental Sciences Consultants providing for materials testing for the El Camino Real Lane Configuration & Buffered Bike Lane Project in the amount of $24,403.

World Surf League
Councilmember Cabral announced that the World Surf League (WSL) will hold its Lexus Trestles Pro event June 9-17 at Lower Trestles.

15. Adjournment
Motion by Mayor Knoblock, second by Councilmember Cabral, CARRIED 5-0, to adjourn at 7:39 p.m. to an Adjourned Regular Meeting to be held on June 17, 2025 at 1:00 p.m. for the purpose of conducting Commission and Committee interviews and appointments. 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

138
DRAFT
City Council Regular Meeting Minutes June 3, 2025
_______________________________
Steve Knoblock, Mayor of the City of
San Clemente, California
_______________________________
CITY CLERK of the City of
San Clemente, California

139
Attachment 5
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
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: June 17, 2025 Agenda Item: 10B.

Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Chief Administrative Officer Matt Schmelzel, Senior Management Analyst
Subject:
..titl e

CONSIDERATION OF REVISING PURCHASING POLICY AND INTRODUCTION AND CONDUCTING A FIRST READING OF ORDINANCE NO. 1793 AMENDING SECTIONS 3.40.050 AND 3.40.080 OF SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE RELATING ..body TO PURCHASING PROCEDURES
Fiscal Impact:

There are no direct fiscal impacts associated with the proposed change in policy.

Summary:

Staff is requesting City Council consideration of a proposed revision to the City’s purchasing policy that would align the bid award authority and bidding requirements with recent updates to the Public Contract Code. The revised policy would also give discretion to the City Manager to approve project overages of up to 10% of project costs when they fall within the City Council approved project budget. Adoption of the recommended policy revisions requires an amendment to the City’s current Purchasing Ordinance.

Background:

The City’s Procurement Policy allows departments to solicit bids and award contracts for goods, services, and public projects, guided by state and federal laws. On June, 18, 2024, the City Council adopted Ordinance No. 1776, aligning the City’s procurement practices with the California Uniform Public Construction Cost Accounting Act (“CUPCCAA”), which establishes bid procedures and thresholds for public construction projects. Effective January 1, 2025, AB 2192 introduced increased competitive bidding thresholds. Staff is recommending revisions to the Procurement Policy and Municipal Code to match the 2025 CUPCCAA thresholds.

Discussion:

The proposed revisions to Procurement Policy and Municipal Code would realign award authority for solicitation/bidding for the procurement of goods, services and public construction projects to reflect adopted changes to CUPCCAA’s bidding thresholds for public construction projects. The updated policy also allows for more flexible and efficient project management by empowering the City Manager to administratively approve project overages of up to 10% of the project cost when they fall within the City Council approved project budget, supporting effective oversight of public construction projects.

While alignment with CUPCCAA provides for updated bidding and approval thresholds, revision of the City Manager’s project approval authority provides a mechanism to address unforeseen 165
Meeting Date: June 17, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 2
project costs arising out of additions or revisions to a project’s scope and maintain project momentum. Both measures work together to enhance project oversight, control costs, and ensure timely delivery. Overall, these updates promote greater flexibility, accountability, and efficiency in procurement and project management. The recommended CUPCCAA aligned procurement and award thresholds are illustrated in the following table.

Procurement of Goods and Services
Procurement Public Construction
Implementation of the Purchasing Policy revisions would require City Council approval for amendments to the Municipal Code through an adopted ordinance. The following sections would require revision:
 3.40.050 - CUPCCAA and Public Construction Bidding Requirements  3.40.080 – Authority to award contracts and thresholds for Division Manager, Department Heads, City Manager and City Council
Council Options:
 Adopt the Revised Purchasing Policy per staff recommendation, introduce and conduct a first reading of Ordinance No. 1793 entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.40, SECTIONS 3.40.050 AND

3.40.080 RELATING TO PURCHASING PROCEDURES.”
 Amend and adopt the Revised Purchasing Policy per staff recommendation, introduce and conduct a first reading of the amended Ordinance No. 1793 entitled “AN ORDINANCE OF

THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.40, SECTIONS 3.40.050 AND 3.40.080 RELATING TO PURCHASING PROCEDURES.” Current
Threshold
Revised
Threshold
Procurement
Process
Award Authority
≤$10,000 ≤$10,000 Micro Purchase Division Manager
≤$25,000 ≤$25,000 Informal Department Head
≤$60,000 ≤$75,000 Informal City Manager
>$60,000 >$75,000 Formal City Council
Current
Threshold
Revised
Threshold
Procurement
Process
Award Authority
≤$10,000 ≤$10,000 1. Force Account

2. Negotiated
Contract or
Purchase Order
Division Manager
≤$25,000 ≤$25,000 Department Head
≤$60,000 ≤$75,000 City Manager
>$60,000 to
200,000
>$75,000 to
220,000
Informal City Council
>$200,000 >$220,000 Formal City Council
166
Meeting Date: June 17, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 3
 Continue the item and direct staff to provide additional information or make specific changes to the Ordinance and Procurement Policy.
 Deny approval of the revised purchasing policy and not adopt Ordinance No. 1793.

Environmental Review/Analysis:

This action is not a “project” under the California Environmental Quality Act (CEQA).

Recommended Actions:

Staff Recommendation ..recommendation

1. Adopt the Revised Purchasing Policy (Attachment 1) to take effect if/when Ordinance No. 1793 is adopted; and

2. Introduce and conduct a first reading of Ordinance No. 1793 entitled “AN ORDINANCE OF

THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.40, SECTIONS 3.40.050 AND 3.40.080 RELATING TO PURCHASING PROCEDURES”. ..end
Attachment:

1. Revised Purchasing Policy (Redline)

2. Ordinance No. 1793

3. Current Purchasing Policy
Notification:

None.
167

PROCUREMENT POLICY AND PROCEDURE
1 Attachment 1
Subject: Purchasing Policies &
Procedures
Index: Financial Services
Number:

Effective Date: Prepared By: Finance & Administration
Services
Supersedes: 102-5, 201-2-1, 201-2-2,
201-2-3, 201-2-5, 201-2-6,
201-2-8
Approved By:

I. PURPOSE:

The Purchasing Policies & Procedure manual establishes a common understanding and uniform procedures for the City’s procurement of supplies, materials, equipment, professional and general services consultants/contractors, public construction projects, other purchasing related activities and emergency procurements. These policies ensure the systematic and consistent preparation and processing of City contracts in accordance with the City’s Municipal Code, State and Federal law. In its discretion, the City Council may at any time, without amending the Municipal Code, waive the purchasing procedures or alter these proceedings to fit a specific purchase contract, when such waiver is not in violation of State or Federal law. Furthermore, the City’s purchasing is to be conducted in a business-like and ethical manner.

II. ORGANIZATIONS AFFECTED:

All Departments/Divisions.

III. REFERENCES:

San Clemente Municipal Code, Title 3 Revenue and Finance, Chapter 3.40 Purchasing California Code of Regulations, Title 8, Section 16000
Public Contract Code, Sections 1100-22355
City of San Clemente Finance Policy 201-3
Labor Code Section 1720
IV. TABLE OF CONTENTS:

V. PURCHASING CYCLE…..………………...…………………………………….…..3
VI. PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT……………16 VII. PUBLIC CONSTRUCTION PROJECTS…………………………...……………...23 168

PROCUREMENT POLICY AND PROCEDURE
2 Attachment 1
VIII. SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS…………………………………………………………......................31 IX. SELECTION OF GENERAL SERVICE CONSULTANT AND
CONTRACTORS………………………………………………………………………..37
X. SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR SERVICES, ITEMS, COMMODITIES AND UNSOLICITED PROPOSALS………....41 XI. EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS..44 XII. EMERGENCY PURCHASES & CONTRACTING………………..…...................48 XIII. ENVIRONMENTALLY PREFERABLE PROCUREMENT………………..........51 XIV. CONTRACT ADMINISTRATION………………..…………..……….................56 169

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
3 V. PURCHASING CYCLE
A. Purchasing Overview

1. Decentralized Purchasing System
The City has a decentralized purchasing system, which means that for most purchases, departments can directly solicit bids or proposals and place orders with suppliers or service providers. These actions are subject to the limitations established in this Policy and to the approval of the appropriate awarding authority. Nothing precludes staff from seeking procurement assistance from the Finance Department to clarify policies, processes and procedures with best practices.

1.1 In a decentralized purchasing system, all users must understand and abide by the City’s procurement process to ensure fair and consistent application.

2. General Categories for Purchases
City purchase categories generally consist of the following categories, for which different procurement methods may apply:

2.1 Supplies, Materials and Equipment (Goods)

2.2 Professional and General Consultant/Contractor Services (Services)

2.3 Public Construction Projects

2.4 Other Purchasing Related Activities for Services, Items, Licenses, Commodities, and Unsolicited Proposals

2.5 Emergency Procurements

3. Responsibility of City Staff

3.1 Responsibilities of all employees – City employees are required to discharge their duties fairly, impartially and with the highest degree of integrity. In support of these concepts as they apply to the purchase of goods, services, and public construction projects, City staff shall:

3.1.1 Read, understand and implement this Policy and ask questions as necessary to do so.

3.1.2 Clearly identify procurement needs and funding availability. 170

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
4 3.1.3 Work with departments to develop suitable competitive specifications.

3.1.4 Participate in the evaluation of bids and proposals as required.

3.1.5 Inspect goods delivered and services performed to determine conformity with established requirements and contractual obligations.

3.1.6 Authorize payment for conforming goods, services, and public construction projects.

3.1.7 Notify the Finance Department of non-conforming goods, services, or public construction projects.

3.1.8 Document tangible or intangible value to the City when requisitioning goods, services, and public construction projects without competition when authorized.

3.1.9 Recognize that fair and open competition results in better value to the City.

3.1.10 Understand and be accountable for the policies and procedures established for purchasing goods, services, and public
construction projects.

4. Purchasing Requisition Required – Requisitions are required for purchases in excess of $5,000 or in a lesser amount as determined by finance based on the inherent procurement risk. Goods, services and public construction purchases that require a contract, purchase order, or blanket purchase order, including public construction projects, must be initiated with a properly documented and approved purchase requisition that includes:

4.1 Concise description of the purchase that adequately communicates need.

4.2 Actual or estimated dollar amount.

4.3 Valid project number (if applicable).

4.4 Verification of available funding or identification that funding is needed, including City Council approval date as applicable.

4.5 Price bids/proposals/quotes with recommended vendor selection and valid award justification.
171

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
5 4.6 Description of procurement process utilized and efforts taken to solicit bids/proposal from local vendors.

4.7 Bid/Proposal exemption documentation (if applicable).

5. Purchasing Documentation – Every purchase should be documented with records and written statements of the kind, and with sufficient detail, to show consideration for the factors pertinent to good buying. These include criteria related to solicitation, authorization, availability, quality, service, and price. The selection basis for the final award must be clearly documented with all documents maintained for at least three (3) years before destruction, with longer destruction timeframes subject to State and Federal grant requirements and the City’s retention schedule. Specific procurement procedures for goods, services, and public construction projects are further documented in the Policy.

6. Authorization of Purchases – Each requisition must be authorized by a Department Head, Division Manager or designee. Finance will maintain an authorization list. The Department Head or Division Manager is responsible for notifying Finance of any changes or temporary assignment of authorization.

6.1 Budget Approval – The City’s budget authorizes funding availability for the procurement of goods, services, and public construction projects. Purchases and contracts for certain dollar amounts are subject to Division Manager, City Manager, Department Head and City Council approval and/or solicitation requirements as referenced herein.

6.2 Approval and Award of Contract – Contracts must be awarded by the appropriate authority level. Approval thresholds are determined by the initial term of the contract, plus authorized extensions and options. Contract contingency levels shall be approved by City Council or a designated individualby the appropriate authority. Contracts shall not knowingly be staged or separated into smaller units or terms solely for the purpose of circumventing approval authority.

6.2.1 Contract Award Determination – The City Council, City Manager or designee shall have final determination to award, reject all bids/proposals or recommend the re-advertisement of certain procurements in the event of bid/proposal inconsistencies and if consistent with applicable law.
172

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
6 6.2.2 Approval and Award Thresholds:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager $25,000.01 to $60,000$75,000
City Council $60,000$75,000.01 and over
The approver can, at their administrative discretion, delegate approval authority on their behalf in writing. Approval authority thresholds governing invoice payment approval levels are listed separately in Policy 201-8 .

6.3 Contracts Awarded by the City Manager – Contracts or amendments awarded by the City Manager shall be reported by the City Manager during the next Regular Council Meeting and posted on the website.

6.4 Contracts Awarded by Department Heads and Division Managers – Contracts or amendments awarded and approved by Department Heads and Division Managers shall be reported to the City Manager or designee at least monthly.

6.5 Local Vendor Preference – Prices, fitness, quality, delivery, and service being equal, a seven percent (7%) rating scale preference may be given to Local Bidders as defined in the San Clemente Municipal Code section

3.40.030 and Article (XIV)(C)(13) of this Policy in accordance with State law.

7. Contracting Requirements – The following section explains the various contracting requirements associated with City funds.

7.1 Contract Award – A contract is not considered to be awarded until it is approved by the appropriate award authority, i.e., the City Council, City Manager, Department Head or Division Manager as described in Section 6.2 above.

7.2 Standard Contract Terms and Conditions – Use of the City’s standard contracts (or terms and conditions for purchase orders) approved by the City Attorney is required whenever feasible.

7.3 Written Contract Requirement – Written contracts on City templates provided and approved by the City Attorney are required for good, services 173

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
7 or public construction projects. Written contracts on City templates are to be used for purchases where vendor standard terms and conditions are insufficient to manage the City’s risk as it relates to liability, prevailing wage compliance or any other relevant risk exposure. Finance has authority to make a final determination on the use of vendor standard terms and conditions or written contracts on City templates.

7.4 City-Provided Scope of Work Requirement – Contracts must include welldefined scopes of work and should be provided by City staff. If feasible, use of consultant or vendor-provided scopes of work should be minimized.

7.5 No Contract Splitting – Under no circumstances can any contract be split or separated into smaller components to determine the appropriate award authority or for any other purpose.

7.6 Contract Types and Procurement Methods – The City utilizes several different types of procurement methods.

7.6.1 Petty Cash – See Finance Policy 201-3

7.6.2 Purchase Order – Use of purchase order should be limited in favor of City standard written contracts for goods, services or public construction and should be used in conjunction with a City standard written contract. Purchase orders for an approved amount with a copy provided to the contractor/consultant and copies distributed internally may be used as the primary contract document for certain purchases wherein the risk to the City is minimal and the terms and conditions on the purchase order are sufficient to manage the City’s risk as it relates to liability, prevailing wage compliance and any other relevant risk as determined by Finance. Purchase orders may be used
independently for certain procurements when any of the following conditions apply:
(a) Another form of written contract is not feasible or practical. (b) Financed determines the procurement is of acceptable risk to the City.
(c) Finance determines that a purchase order is appropriate.

7.6.3 Blanket Purchase Order (BPO) – Purchase of designated products or services on a repetitive basis from a specific vendor on 174

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
8 an as needed basis. BPO’s are issued unencumbered and are restricted by an annual service agreement not to exceed the approved contract.

7.6.4 Contract Purchase Order – A “Contract Purchase Order” is an agreement whereby the terms and conditions, pricing, and special provisions are agreed to and apply to individual commitments within a pre-established time period.

Under a “Contract Purchase Order” the items to be procured are identifiable within the orders, but the quantities of each are unknown. Therefore, in consideration of firm prices being agreed to for the life of the agreement or subject to escalation by a predetermined formula, most Contract Purchase Orders are either an “exclusive requirement” or “minimum requirements” type. (a) Exclusive Requirements – No guarantee is made as to the quantity to be purchased, but it is agreed any and all
requirements will be purchased only under that order and from no other source.
(b) Minimum Requirements – No exclusiveness is provided, but Purchasing guarantees to purchase a minimum quantity
during the life of the contract.

7.6.5 Change Order – Changes that affect the contractual agreement established under a purchase order or a contract shall be authorized at the appropriate level. Any change affecting service, design, specifications, quantity, delivery schedule, price, payment of invoice, transportation, and similar contractual considerations may be negotiated, but must have proper authorization and approval prior to commitment or performance. Where a firm contract is in effect to produce an item or service at a given price, the City and the vendor are expected to comply. Change Orders should not be used as a means of recovering losses or increasing vendor profits. (a) Change Orders can be processed by staff at the Department level if the amount falls within the City Council project contingency authorized or is less than or equal to $25,000 in aggregate and less than 19% of the contract price.
(b) City Manager Approval is required for project Change Orders that increase the aggregate Purchase Order for an 175

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
9 excess of $25,000 and less than or equal to $60,000$75,000.

If the Change Order exceeds the project contingency
amount, City Council approval will be required. Change
Orders in the aggregate in excess of 19% of the contract price or that violate applicable law are prohibited.
(c) The City Manager is authorized to administratively approve contract amendments not to exceed 10% in the aggregate of the project cost in the awarded contract subject to budget availability. Change Orders in the aggregate in excess of 19% of the contract price or that violate applicable law are prohibited.
(c)(d) City Council approval is required for Change Orders or contract amendments that increase the aggregate Purchase Order or contract price to exceed $60,000$75,000 except as authorized under (V)(A)(7.6.5)(c) above.or exceed the
approved contingency level. Change Orders and contract
amendments in the aggregate in excess of 19% of the
contract price or that violate applicable law are prohibited. (e) City Council approval is required for Change Orders or contract amendments exceeding the total contingency
amount on the project adopted through City Council action.

Change Orders and contract amendments in the aggregate in excess of 19% of the contract price or that violate applicable law are prohibited.
(d)(f) The department submitting the Change Order shall document the reason for the change with appropriate
support.
(e)(g) Upon proper approval, the Change Order shall be entered in the City’s financial system and Finance will distribute as appropriate.
(f)(h) Incidental or de minimis out of pocket costs may not be considered part of the purchase order amount, unless
specifically addressed in the contract.

7.6.6 Substitutions – No Purchase Order substitution shall be requested or accepted by City personnel without department manager approval. If it becomes necessary to substitute, verbal approval 176

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
10 may be obtained from the department manager, which should be documented. Other necessary substitutions may require a written Change Order.

7.6.7 Cancellation of Purchase Order or Portion Thereof – When part of an issued Purchase Order must be canceled, changes should be made through purchasing in the City’s financial system cancelling either single line items or the entire purchase order.

Copies will be sent to vendor upon request.

7.6.8 Purchase Contract – A contract that procures Supplies Materials and Equipment. (See Article VI, Procurement of Supplies, Materials, and Equipment.)

7.6.9 Agreement for Public Construction Projects – A contract that procures services which directly result in the physical construction of a public improvement. (See Article VII, Public Construction Projects.)

7.6.10 Professional Services Agreements – A contract that procures professional, technical, and or/ clerical services which will not directly result in the physical construction of a public improvement. (See Article VIII, Selection of Professional Services Consultants and Contractors.)

7.6.11 General Services Agreements – A contract that procures services that typically do not require a high degree of professional certification or specialized expertise either with or without the furnishing of materials and that do not constitute a public works project. (See Article IX, Selection of General Services Consultants or Contractors.)

7.6.12 Information Technology Agreements – A contract that procures information technology related services or license agreements for use of technology. (See Article VI, Procurement of Supplies, Materials, and Equipment, Article VIII, Selection of Professional Services Consultants and Contractors and Article X, Selection of Other Purchasing Related Activities for Services, Items, Commodities and Unsolicited Proposals.)

7.6.13 Key Contracting Prerequisites – Contractors or vendors conducting business in the City or working on City property or in City rights-of-way must be properly licensed, insured, and 177

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
11 otherwise comply with all lawful requirements such as obtaining a business license as required by the Finance Department and having appropriate insurance coverage as required by the Risk Manager.

The contractor or vendor must include the City of San Clemente and its officials, officers, employee, agents and volunteers as an “additional insured” on their insurance Policy and provide up-todate insurance certificates with required Policy endorsements.

Insurance requirement must be met before any work can
commence.

B. Methods of Procurement

1. Force Account, Negotiated Contract or by Purchase Order – procurement method used for public construction projects and regulated by the California Uniform Public Construction Cost Acting Act (“CUPCCAA”).

2. Micro-purchase (single bid, proposal or quote) – single bid, proposal or quote required for certain procurements amounts set by federal regulation or state law.

The informal, formal bidding/solicitation process should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended.

3. Informal Purchase Process – an unsealed competitive offer using simpler and more efficient procurement methods for obtaining written bids, proposals or quotes allowed for certain procurements amounts. Formal bids or request for proposals should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended. Purchases and contracts shall not knowingly be staged or separated into smaller units or segments solely for the purpose of circumventing the formal or informal process as documented herein.

Informal bids shall be submitted to and opened by the City Manager or their designee.

4. Formal Purchase Process – Formal bid or request for proposals procedures for procurements shall be followed for public purchases as defined in this Policy and required by State or Federal law and may also be followed when Finance determines that formal procedures might best serve the public interest. Formal purchase procedures are further documented herein.

5. Exemptions to the Informal and Formal Purchase Process – Exemptions to the bidding and solicitation process must be approved by Finance or as defined in the San Clemente Municipal Code Chapter 3.40 and as documented in Article (XI)(A)(1) Exemptions to the Formal, Informal Bidding, and Solicitation Process herein.
178

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
12 C. Sealed Bid (Bid) vs. Request for Proposals (RFP) Process The purchasing process to be followed will be based on the various considerations, criteria, amount, and type of purchase. This section includes a summary of each type of Formal Purchase Process, considerations, criteria and comparison of the two processes.

The following table summarizes the sealed bid and request for proposal process.

Process Step Sealed Bids Requests for Proposals
Applicability Typically public works or
general services or goods
Typically professional services
Specifications Very specific as to performance
and design requirements
Allows for more flexibility;
vendor proposes one or more
options
Opening Public – all data available to
other bidders and public
Public – only names of proposers
are public; no pricing or other data
is made available until award
Evaluation Based strictly on meeting
specifications – no material
deviations accepted
Based on overall responsiveness
to proposal and criteria provided
in RFP for evaluation
Discussion Only to clarify question on
meeting technical specifications
with answer being published in
addenda
Questions to any or all proposing
firms to clarify items in proposal;
may include formal interviews
Changes Only minor technicalities may be
corrected
Negotiations may be conducted
with proposing firm(s) evaluated
as being most responsive to RFP
criteria
Award Lowest responsive and
responsible bidder
Best overall value proposal – not
necessarily lowest price
Considerations for using the competitive sealed bid process:  The specifications for the good, service or public construction project to be purchased 179

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
13 are explicitly clear and communicated for both buyer and seller.  The market has an adequate number of sellers capable of meeting the specifications to allow for competition.  The sellers that make up the market are technically qualified and are willing to price competitively.  Competitive bid process is required by applicable law.

Considerations for using the RFP process instead of a sealed bid:  Oral or written discussions may be necessary with the responding firms regarding technical and price clarifications or scope of work requested.  Offers an opportunity to determine staffing or other technical qualifications of the provider to meet the needs of the City.  It is advantageous to allow an opportunity for responding firms to modify their offer prior to award.

Evaluating Criteria for Proposal Solicitation  Comparative analysis of different technical products or solutions must be made.  Situations in which it is impossible to estimate costs with a high degree of certainty.  Situations in which price is not the only important variable; quality, schedule, and service may be variables of equal or greater importance.  Situations in which the buyer anticipates a need to make changes in some aspect of the purchase/contract where negotiations are foreseen before the contract can be finalized.  Typically, most types of professional services are purchased with this method.

Compare and Contrast:

Each method has its strengths and weaknesses. The ease of evaluating bids on price alone needs to be balanced against the risk that price alone may not be all that distinguishes one product or service from another. Often, other factors such as quality of the product or aftersales service can be equally or more important. 180

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
14 Evaluation of a competitive sealed bid is straightforward. The award is normally on the basis of price to the lowest responsive and responsible bidder. Bids that conform in all material respects to the requirements stated in the invitation to bid are responsive; bidders who have the capability to fully perform the contract requirements (necessary experience, technical knowledge, facilities, licenses, equipment, and credit required to perform) are considered responsible.

The RFP process allows more flexibility than the sealed bid process in the evaluation process.

The evaluation team first evaluates proposals for compliance to the specifications and requirements in the RFP and creates a list of those firms whose proposals meet mandatory requirements. Only the firms from this list will be further evaluated and considered for the award based on evaluation criteria specified in the RFP. Interviews and/or negotiations with the top-rated firm(s) may be conducted before final selection.

When it is not in the City’s best interest to acquire commodities or services through competitive bidding, a contract may be solicited using the Request For Proposal (RFP) method as permitted by state and federal law and if approved by Finance. Such a situation may arise for any number of reasons, including, but not limited to:  The City’s requirements are not well-defined;  The City is interested in evaluating a range of offers so that it may take advantage of technical innovation and developments in the market place; and,  Factors such as availability, expertise, and quality override price as a criteria for award.

Addenda:

Addenda to specifications may be made in advance of response due dates for both the sealed bid and request for proposals process. The purpose of an addendum is to provide notice to all potential bidders/proposers that there have been changes or clarifications made to the terms of the solicitation.

Definitions:

1. Purchasing Cycle – The process used to purchase goods, services or public construction projects as described in this Policy.

2. Petty Cash – May be used for items under $100, purchased by an employee and reimbursed in accordance with the Finance Policies and Procedures.

3. Requisition – Informs Finance of procurement requirements and allows for department/division approval.
181

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
15 4. Purchase Order – A written contractual agreement for goods, services and public construction projects for an approved amount. These instruments have limited or incorporated terms and conditions as compared to a standard City written contract and are typically used independently for procurements with minimal risk with Finance approval.

5. Purchase Order Number – Assigned by the City’s financial system.

6. F.O.B. (Free on Board) Point –Without Finance approval, F.O.B. shall be “Destination” (San Clemente). With F.O.B. “Destination” the legal title to the material does not pass from the seller to the City until the carrier delivers the material at the City’s destination address, otherwise the City bears the risk of nondelivery, which should be avoided.

7. Blanket Purchase Order – Unencumbered Purchase Orders established by Finance with suppliers that are restricted by the annual service agreement.

8. Contract Purchase Order – An agreement made by Finance whereby the terms, conditions, pricing and special provisions are agreed to and applied within a preestablished time period.

9. Change Order – Changes made to any agreement, verbal or written, which will affect the agreement established by the supplier or service provider and requesting department.

10. Scope of Work – detailed written outline of the project, including timeline, budget, assigned tasks, project stakeholders, workflow strategies and exact description of what the contractor/consultant will be doing for the City.

11. Request for Proposal – the process and documentation used for soliciting proposals for goods and services.

12. Notice Inviting Bids – the process and documentation used for soliciting bids for goods, services and public construction.

13. Quote – Fixed price document that is time-sensitive due to fluctuations in the price of goods.

14. Sealed Bid – Formal procurement method where a city publicly solicits bids and a firm fixed-price contract (lump sum or unit price) is awarded to the lowest responsible bidder whose bid conforms with all material terms and conditions of 182

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
16 the invitation for bids. The project offer is for a defined project scope, work schedule and timeline.

15. Responsible bidder – A bidder with the capability in all aspects to perform in full the contract requirements and who has the integrity and reliability which will assure good faith performance. The bid conforms in all material respects to the terms and conditions, specifications, and other requirements of the solicitation.

16. Proposal – Submission by the prospective bidder demonstrating how they will meet the objectives of the scope of work and the cost to accomplish.

17. Bidder – a participant in the initial stage of the procurement process by submitting a proposal or bid.

18. Bidder’s Security – A monetary guarantee in a form and amount approved by the City that secures the bidder’s intent to execute a contract with the City.

19. Performance Bond – A guarantee by a third party in form and amount approved by the City that secures the bidder’s intent to execute a contract with the City. 183

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
17 VI. PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT A. Policy

1. Procurement of Supplies, Materials and Equipment policies & procedures are established to provide a common understanding of the methods for securing the supplies, materials, and equipment needed for all City functions. These policies and procedures ensure all requests follow the Purchasing Ordinance, as well as, other legal requirements; and to provide a system to track that the supply, material, and equipment ordered, received, approved for payment and above all, to ensure that City purchasing is conducted in a business-like and ethical manner.

B. Definitions

1. Supplies, Materials and Equipment – any goods, supplies, plant, materials, chemicals and equipment of any kind, including but not limited to machinery, vehicles, parts, components, consumables and non-consumables. The following describe other types of purchases considered to be supplies, materials or equipment:

1.1 Rental & Lease of Equipment – The owner of the equipment allows the City to operate or otherwise make use of the equipment in exchange for periodic lease or rent payments. The owner of the equipment bears the risk of obsolescence and depreciation of the equipment.

1.2 Publications/Newsprint – Contracts to receive periodicals, magazines, trade journals, etc., either in print or electronic/digital subscriptions.

C. Procurement Methods – The following limits are provided as guidelines for the method of procurement:

1. Micro-Purchase – Solicitation is not required, but recommended, for procurements expected to be less than $10,000 or up to the micro-purchase threshold set by federal regulation. Informal or Formal Purchase Process should be assessed to determine if there is a reasonable possibility to obtain better prices commensurate with the time and effort expended. The Formal or Informal process is recommended but not required for micro-purchases. Finance has the authority to determine if the Formal or Informal procedures should be implemented.

1.1 The following criteria shall be considered before using the Micro-Purchase Process.
184

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
18 1.1.1 Determine dollar value of purchase is less than or equal to $10,000 including shipping, taxes, etc.

1.1.2 Evaluate if the formal or informal process will result in better pricing commensurate with the time and effort expended.

1.1.3 Obtain single bid/proposal/quote from vendor of choice.

1.1.4 Assess whether the informal or formal purchase process will offer savings to justify time and resources in comparison to the price. Past bid results and similar services can be utilized in this assessment and should be documented by the Department.

2. Informal Purchase Process – Formal competitive bids/proposals are not required for procurements expected to be less than or equal to $60,000$75,000. Formal competitive bids/proposals should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended. Purchases and contracts shall not knowingly be staged or separated into smaller units or segments solely for the purpose of circumventing the competitive formal or informal purchasing process requirements as defined in this Policy.

2.1 Bids or proposals will be solicited by the division designee or Finance using the following methods:

2.1.1 Determine dollar value of purchase is greater than $10,000 and less than or equal to $60,000$75,000 including shipping, taxes, etc.

2.1.2 Reasonable effort shall be made to obtain three (3) or more bids/proposals.

2.1.3 Bids/proposals may be solicited by written or oral means.

2.1.4 City staff conducting the Informal Purchase Process must inform suppliers that they are to offer a “last and final offer.” No negotiation or price matching can be conducted with any of the suppliers.

2.1.5 All recommended purchases made under the Informal Purchase Process are subject to Finance review and approval prior to award.

2.1.6 Finance retains the authority for source selection on all procurement and is authorized to make awards to the lowest responsible bidder. 185

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
19 2.1.7 All contracts made and/or bids/proposals/quotes received are open to public inspection for a period of at least one (1) year after the award.

3. Formal Purchase Process – Formal bid/proposal procedures shall be followed for all procurements in excess of $60,000$75,000, for all public purchases required by State or Federal law or when formal bid/proposal procedures best serve the public interest, as determined by the City Manager or designee. Finance shall evaluate departmental requests for specific equipment, materials, and supplies.

3.1 The following criteria shall be considered before using the Formal Purchase Process.

3.1.1 Determine dollar value of purchase is in excess of $60,000$75,000 including shipping, taxes, etc.

3.1.2 Availability of clear specifications.

3.1.3 Adequacy of number of sellers in the marketplace.

3.1.4 Market conditions would ensure adequate participation in the Formal Purchase Process.

3.1.5 Availability is sufficient to use the Formal Purchase Process.

If the above criteria warrant the use of the Formal Purchase Process, all analytical planning to determine specifications shall be completed by the requesting department before competitive bids/proposals are sought.

3.2 Bid Notice – The “Notice Inviting Bids” or “Request for Proposals” shall include a general description of the supplies, materials or equipment to be procured, and shall state:

3.2.1 Where bid/proposal forms and specifications may be secured.

3.2.2 Time, date, and place for the submission and opening of bids/proposals.

3.2.3 Whether a performance bond is required, and if so, the amount and form of bidder’s security.
186

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
20 3.2.4 At its discretion, the City reserves the right to reject any and all bids/proposals or waive any formality presented.

3.3 Published Notice – The “Notice Inviting Bids” or “Request for Proposals” should be published by the Requesting Department in the local newspaper or posted to the online bid management system, at least ten (10) days before date of bid/proposal opening.

3.4 Bidder’s Security – When Bidder’s Security is required, it will be announced in the public “Notice Inviting Bids” or “Request for Proposals” and the amount shall be determined at time of preparation.

3.4.1 Bidder’s Security shall be in the form of:
(a) Certified or cashier’s check made payable to the City of San Clemente. The City Clerk will hold the check until the formal award of the bid/proposal. Checks will be returned by the City Clerk to the unsuccessful bidders by certified mail, return receipt requested. Release of the check before the formal award of the bid/proposal will constitute a withdrawal of the bid/proposal by the supplier.
(b) Bidder’s bond in a form and amount acceptable to the City made payable to the City of San Clemente. A bid/proposal shall not be considered unless one of the forms of security mentioned accompanies the bid/proposal when required.

3.4.2 Bidders shall be entitled to return of bid security with the following EXCEPTION:
(a) A successful bidder shall forfeit their bid/proposal security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed.

3.4.3 The City may, upon refusal or failure of the successful bidder to execute the contract, award a contract to the next lowest bidder. In this case, the amount of the lowest bidder’s security shall be applied to the difference between the low bid/proposal and next successful bidder, including any costs incurred by the City, and any remainder may be refunded.
187

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
21 3.5 Performance and Payment Bonds – The City Council or City Manager or designee shall each have authority to waive or require performance or payment bonds before issuing a Notice Inviting Bids or Request for Proposals. The amount shall be set at a level deemed necessary to protect the best interest of the City.

3.6 Sealed Bids

3.6.1 Sealed bids shall be submitted electronically through the online bid management system or in a clearly identified sealed envelope to the City Clerk or designee in accordance with the bid/proposal instructions.

3.6.2 Bids shall be opened in public at the time and place stated in the public notice. In cases where bids are submitted and tabulated electronically, bid openings will be considered public as long as the individual bids are electronically accessible after the bids close.

3.6.3 The City Clerk, or their designee, is required to be present at the opening. All bids received shall be recorded.

3.6.4 All bids received shall be available for inspection during regular business hours for a period of 31 days after the bid opening date.

3.7 Rejection of Bids/Proposal – The City reserves the right to reject any and all bids/proposals, to accept or reject any one or more items of a bid/proposal, or to waive any irregularities or informalities in the bids/proposals or the procurement process. This process will be documented by staff after review of the bids/proposals.

3.8 Late Bids/Proposals – Any bid received after the time specified in the notice shall be returned pursuant to Government Code section 53068.

3.9 Tie Bids/Proposals –

3.9.1 If tie low bids/proposals are received, quality and service being equal, the contract shall be awarded to a local bidder; or

3.9.2 If the above condition is not applicable, the City may, at its discretion
188

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
22 3.9.3 accept either one or accept the lowest bid made by negotiation with the tie bidders; or

3.9.4 Award the bid to any one of the low tie bidders by public drawing.

3.10 Determining Lowest Responsive and Responsible Bidder – All valid responsible bids/proposals shall be considered in determining the lowest bid/proposal. Finance and the requesting division will take into consideration:

3.10.1 Price of supplies, material, and equipment.

3.10.2 Terms and conditions including delivery, discounts, local vendor preference, and all other conditions submitted in the bid.

3.10.3 The quality, suitability and efficiency of the item or service offered and its conformity with the specifications.

3.10.4 The reputation of the supplies, material and equipment, the service reputation of the seller and all information and data required to prove responsibility of the supplier.

3.10.5 The aggregate purchase cost including auxiliary equipment or services as part of the project scope including but not limited to warranties, maintenance, upgrades, etc.

If the lowest bidder has not contracted with the City before, proof of responsibility should be documented and verified prior to award.

3.11 Award of Bids/Proposals – Award of bid shall be to the lowest responsible bidder, except as otherwise provided herein. Contracts may be awarded when the formal bid process is followed and funds are available within the fiscal year budget.

3.11.1 If the bid amount exceeds the budgeted amount, Finance shall make a recommendation of award to the City Manager or designee for approval. If the contract amount is within the purchasing authority the City Manager or designee may approve the award or at their discretion or refer the item to the City Council for action.

4. Exemptions to the Informal and Formal Purchasing Process Exemptions to the bidding/proposal process are documented in Article (XI)(A)(1) herein and defined 189

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
23 in the San Clemente Municipal Code Chapter 3.40. All Exemptions must be submitted to Finance for approval prior to award.

5. Procurement of Fleet –Fleet replacements are presented to Council within the budget for the estimated cost, type and quantity of vehicles requiring replacement thereby authorizing staff to bid and award vehicles purchases within those levels.

The City Manager or designee shall have the authority to purchase vehicles up to $60,000$75,000 above the estimated replacement cost from available fleet replacement funds due to changing cost, availability, and state regulations related to vehicles. If the amount exceeds this threshold, an Agenda Report will be prepared to seek City Council approval.

6. Approval and Award of Contract — Authority for approval and award of supplies, materials, equipment will be:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager $25,000.01 to $60,000$75,000
City Council $60,000$75,000.01 and over

190

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
24 VII. PUBLIC CONSTRUCTION PROJECTS
A. Policy

1. Public Construction Projects procurement policies and procedures are established to provide a common understanding of the procurement methods for Public Construction Projects; to ensure that all related procurements are made in accordance with the Purchasing Ordinance as well as other legal requirements; and to provide a system to track that supplies, materials, equipment or services for Public Projects have been ordered, received, approved for payment and above all, to ensure that City purchasing is conducted in a business-like and ethical manner.

B. Purchasing Cycle

1. Methods of Procurement - The method chosen will be determined by the dollar amount of the purchase or contract as identified in the Public Contract Code and Chapter 3.40 of the San Clemente Municipal Code. Methods available are:

1.1.1 Force Account

1.1.2 Negotiated Contract

1.1.3 Contract following competitive bid

1.1.4 Purchase Order

2. Authorization of Purchases - Each requisition for consultant services or construction contracts must be authorized by a Department Head, division manager or designee. Finance will maintain a current authorization list and update it on an as-needed basis. The list will be kept on file in Finance. It is the division manager and department head’s responsibility to notify Finance of any changes or temporary assignment of authorization.

3. Bid Process for Public Construction Projects - The San Clemente Municipal Code Chapter 3.40 incorporates the California Uniform Public Construction Cost Accounting Act (“CUPCCAA”) Procedures as set forth in Public Contract Code sections 22030-22045. The Act establishes bid procedures for “Public Projects.” This section shall be superseded by any amendments made to CUPCCAA or other applicable law.
191

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
25 Project Cost Procurement Process Public Contract
Code Section
$5,001-
$60,000$75,000

1. Force Account

2. Negotiated Contract or
Purchase Order
PCC 22032
>$60,000$75,000-
$200,000$220,000
Informal bidding PCC 22034
>$200,000$220,000 Formal bidding PCC 22037

3.1 The City provides for the construction of Public Projects for amounts of $60,000$75,000 or less through the use of City employees, by negotiated contract, or by purchase order.

3.1.1 Projects in excess of $5,000 and equal to $60,000$75,000 or less, reasonable efforts shall be made to solicit from three (3) qualified contractors and let to contract by informal procedures set forth in Public Contract Code Section 22032. Terms may be negotiated and the project may be awarded to the lowest responsible bidder.

3.2 Public Projects for amounts in excess of $60,000$75,000 and less than $200,000$220,000 may be awarded by following the “Informal Bid Procedures” contained in Public Contract Code Section 22034 or at the discretion of the City Engineer, Department Head or designee, the “Formal Bid Procedures” contained in Public Contract Code Section 22037.

3.3 Public Projects for amounts in excess of $200,000$220,000 shall be contracted by use of the “Formal Bid Procedures” contained in Public Contract Code Section 22037.

3.4 Public construction contracts shall be issued in accordance with the provisions of the Public Contracts Code Sections 22000 - 22045, otherwise known as CUPCCAA. The provisions of CUPCCAA relative to bidding procedures shall supersede the individual procedures contained in this Purchasing Policy and City Municipal Code. Amendments or revisions to any state code sections affecting this Policy and resulting in procedure changes may be directly incorporated into this Policy when enacted by the 192

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
26 California Legislature without further action of the City Council or City Manager.

4. Change Orders for Construction Projects - Change Orders for construction projects that were awarded by the City Council can be executed by the City Engineer, Department Head, City Manager or designee.

4.1 The City Manager is authorized to administratively approve Change Orders within the approved project budget resulting in a total overage amount not to exceed 10% of the contract price in the aggregate. Change Orders that exceed this amount or are in excess of the approved project budget shall be approved by the City Council. Change Orders in the aggregate cannot exceed the contingency amount for the project as approved by the City Council.

4.2 City Council approval is required on Change Orders exceeding the total contingency amount of the project adopted through City Council action.

4.3 Change Orders in the aggregate cannot exceed 19% of the contract price nor constitute a cardinal change to the contract.

C. Definitions

1. Public Construction Projects – Public construction pertain to the construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind, including but not limited to: demolitions, and the construction and installation of drainage systems, lighting and signaling systems, sewer and water systems, and park and recreational facilities. Service contracts encompass all contracts for services either with or without the furnishing of materials. Maintenance required to preserve a public improvement is not considered a public construction project.

2. Public Project - Any of the following constitute a Public Project as defined in Public Contract Code Section 22002: Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. Painting or repainting of any publicly owned, leased or operated facility. In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants and electrical transmission lines of 230,000 volts or higher. Applicable law regarding what constitutes a public project shall automatically supersede this definition.
193

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
27 3. Maintenance Work - Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes, minor repainting, resurfacing of streets and highways at less than one inch; landscape maintenance, including mowing, watering, trimming, pruning, planting, and servicing of irrigation and sprinkler systems; work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher. Applicable law regarding what constitutes maintenance shall automatically supersede this definition.

4. Facility – Any plant, building, structure, ground facility, and utility system, subject to the limitations defined under maintenance work, real property, streets and highways or other public work improvement.

5. Force Account – Public construction projects performed by using internal City resources, including, but not limited to, labor, equipment, materials, supplies and subcontracts of the City.

D. Procedure

1. Purchasing Documentation – Every purchase for supplies, materials, equipment, or services for a public construction project or Public Project will be documented with records and written statements of the kind and in the detail necessary to show that consideration was given to the factors pertinent to good buying and applicable legal requirements. These include such items as authorization, quality, service, and price. Public Projects are required to be awarded to the lowest responsive and responsible bidder. The basis for the selection of the source for the final award must be clearly documented. All documents will be kept for a period of three years before destruction.

2. Bid Procedures for Public Projects - Professional Services for Public Projects are obtained in accordance with the Public Contract Code by the following methods:

2.1 Projects Estimated at $60,000$75,000 or Less. Reasonable efforts shall be made to solicit and obtain proposals from three (3) qualified firms for Public Projects estimated at $60,000$75,000 or less. Solicitation may be done by telephone, email, Request for Quotation, Request for Proposal or Notice Inviting Bids. Terms may be negotiated and the project must be awarded to the lowest responsible bidder.

2.2 Projects Estimated in Excess of $60,000$75,000 and less than $200,000$220,000. The City is required to maintain a list of qualified 194

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
28 contractors that are identified according to the categories of work which they perform. When the City desires to contract a public improvement costing in excess of $60,000$75,000 and less than $200,000$220,000, the City is required to issue a notice inviting bids to those contractors whose names appear on the list for the category of work being bid. This notice shall be sent not less than 10 calendar days before the bid due date. The notice shall describe the project in general terms, how proposed bidders obtain more detailed information about the project, and the time and place for submission of bids. Responsible local contractors shall be included on such list unless they have indicated to the City that they do not wish to be on such list.

2.3 Projects in excess of $200,000$220,000. When the City desires to construct a public improvement costing in excess of $200,000$220,000, the City shall circulate a Notice Inviting Formal Bids that describes the project and states the time and place for receiving and opening sealed bids. The notice is to be published at least 10 calendar days before the date for opening the bids in the City’s newspaper of general circulation. Notices are required to be published twice with at least five calendar days between publications. The notice shall also be sent to all construction trade journals referenced in the Public Contract Code section 22037.

2.4 Award or Rejection of Bids. After opening the bids, the division/department may recommend that City Council award the Contract to the lowest responsible bidder, reject all bids and either abandon the project or reject all bids and re-advertise the project (if permitted by applicable law) or by passage of a resolution of a 4/5th vote of the City Council, declare that the project be performed by force account.

2.5 Exemptions to the Procurement Process - Chapter 3.40.040 of the San Clemente Municipal Code has exemptions for professional and other contractual services that are in their nature unique or other service for which by law another officer or body is specifically charged with obtaining. These exemptions are further documented in Article (XI), Emergency Purchases & Contracting and Article (XII) herein. Exemptions to the procurement process are limited by the Public Contracts Code Sections 1100-22355.

2.6 Award of Public Projects - Projects that are bid according to the established bid procedures can be awarded by:

Division Manager Up to $10,000
195

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
29 Department Heads $10,000.01 to $25,000
City Manager $25,000.01 to $60,000$75,000
City Council $60,000$75,000.01 and above

3. Bidder’s Security – A Bidder’s Security shall be required for bids submitted on all Public Project contracts greater than $10,000. When bidder’s security is required, it will be announced in the public Notice Inviting Bids or Request for Proposals and the amount shall be equal to at least 10% of the bid amount.

3.1 Bidder’s Security shall be in the form of:

3.1.1 Certified or cashier’s check made payable to the City of San Clemente. The City will hold the check until the formal award of the bid. Checks will be returned by the City to the unsuccessful bidders by certified mail, return receipt requested. Release of the check before the formal award of the bid will constitute a withdrawal of the bid by the bidder.

3.1.2 Bidder’s bond made payable to the City of San Clemente. A bid shall not be considered unless one of the forms of security mentioned accompanies the bid when required.

3.2 Bidders shall be entitled to return of bid security with the following EXCEPTION:

3.2.1 A successful bidder shall forfeit their bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed.

3.3 The City may, upon refusal or failure of the successful bidder to execute the contract, award contract to the next lowest bidder. In this case, the amount of the lowest bidder’s security shall be applied to the difference between the low bid and next successful bidder, including any cost incurred by the City, any remainder shall be refunded.

4. Payment Bonds – A payment bond shall be required for all Public Projects in excess of $25,000. The bond shall be executed by an admitted surety insurer, and the amount shall be not less than 100% of the total amount payable pursuant to the contract. The form and amount of the bond shall be described in the Notice Inviting Bids.
196

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
30 5. Performance Bonds - The City Council, City Manager or Public Works Director/City Engineer shall each have authority to waive or require a performance bond before issuing a Notice Inviting Bids to the extent that the law and award authority allows. The amount shall be set at a level deemed necessary to protect the best interests of the City. The form and amount of the bond shall be described in the Notice Inviting Bids.

6. Sealed Bid Procedure

6.1 Sealed bids shall be submitted to the City Clerk or designee and shall be identified as bids on the envelope or receive electronically through the online bid management system, when allowed.

6.2 Bids shall be opened in public at the time and place stated in the public notice. In cases where bids are submitted and tabulated electronically, bid openings will be considered public as long as the individual bids are electronically accessible after the bids close.

6.3 The City Engineer, the City Clerk, or their designee, are required to be present at the opening and shall record all bids received.

6.4 All bids received shall be available for inspection during regular business hours in the office of the City Engineer for a period of 31 days after the bid opening.

7. Rejection of Bids - The City reserves the right to reject any and all bids, to accept or reject any one or more items of a bid, or to waive any irregularities or informalities in the bids or the bidding process.

8. Late Bids - Any bid received after the time specified in the notice shall be returned unopened pursuant to Section 53068 of the Government Code.

9. Tie Bids

9.1 If tie low bids are received, quality and service being equal, the contract shall be awarded to a local bidder; or

9.2 If the above condition (1) is not applicable, the City may accept either one or accept the lowest bid made by negotiation with the tie bidders; or

9.3 Award the bid to any one of the low tie bidders by public drawing.

10. Agreements for Construction of Public Projects
197

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
31 10.1 The template Agreement for Construction of Public Projects is contained within the City’s word processing system and shall be used for Public Projects. The template Agreement for Construction of Public Projects may also be used, as appropriate, for all other projects that qualify as a “public construction” project as it is defined in Labor Code Section 1720 and California Code of Regulations, Title 8, Section 16000.

10.2 The template Short Form Construction Contract is contained within the City’s word processing system and may be used for Public Projects that did not go through the formal bidding process if appropriate. This template may also be used for other projects that qualify as a “public construction” project as it is defined in Labor Code Section 1720 and California Code of Regulations, Title 8, Section 16000 if appropriate.

10.3 When projects are receiving proceeds that are derived from federal funding, certain federally required contractual provisions are required to be included in the agreements. City staff should consult with legal counsel to ensure that the necessary provisions are included in any projects that are federally funded.
198

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 32 VIII. SELECTION OF PROFESSIONAL SERVICES CONSULTANTS AND

CONTRACTORS
A. Policy

1. Policies & Procedures for Selection of Professional Service Consultants and Contractors is established to provide a common understanding of the methods for selection of professional services consultants or contractors for the design, review, advisory, field engineering, environmental, personnel and related services in connection with public improvement projects, development processing and governmental operations of the City; and to ensure that the City will obtain the most qualified and competent professional services consultant or contractor at a fair and reasonable cost consistent with quality facilities and/or services.

2. Selection of Professional Services Consultants and Contractor — Professional consultants and contractors must be individually selected for a specific project with due regard for the experience of the consultant or contractor, special knowledge of the subject matter, ability to perform the services in the time allowed, record of success on similar work, and ability to participate in discussions and presentations related to the project.

3. Professional consultant and contractor services differ from other services as they do not readily fall within the competitive bidding process. Professional consultants/contractors should be individually selected through a qualificationsbased selection process for a specific project or service based on demonstrated competence and qualifications for types of services to be performed and with the objective of selecting the most qualified consultant/contractor at a fair, reasonable and verifiable appropriate cost.

B. Definitions

1. Professional Consultant/Contractor Services – Services provided by licensed and/or technically trained professionals with or without the furnishing of materials, including but not limited to:

1.1 Personnel or employee-related services – Services that provide benefit or assistance directly to employees, including services for human resources, temporary employment, supplemental staffing, etc.
199

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 33 1.2 Consultant Services – Advisory services that provide a recommended course of action or personal expertise/advice, and provide an end product transmitting or that reports information. Consultant services are required in order to obtain professional technical advice or expertise that will supplement departmental expertise or advice or where an independent opinion or audit is required such as financial and economic feasibility study.

All consultant service contracts shall contain a provision that prohibits “follow-on” projects where prohibited by law that prevent the consultant from performing work related to any recommendations formulated as a result of the consulting work. Examples of these services can include:
community planning, accounting, legal, medical, auditing, and related services.

1.3 Revenue Generating Contracts – A contract for contractor-provided services in which the City does not pay a fee, but instead receives a portion of the revenues generated from the services such as the operation of a City facility, concessions, etc.

1.4 Information Technology Services (IT) – rendered services that may or may not include: software or hardware installation, implementation, integration, creation, development, customization, optimization, design, project management and other advanced technical services in support of the City’s Information Technology programs.

1.5 Software and Hardware Maintenance and Support – Software and hardware maintenance includes ongoing support, troubleshooting, problem resolution, functional improvements, security updates, and other optimizations to systems and is not included with the initial purchase price of the software/hardware. Software/Hardware maintenance and support service includes person-to-person communications regardless of the medium used to communicate: telephone support, on-line technical support, customized support, and/or technical expertise, as well as electronic software delivery and equipment repair/replacement.

Typically upgrades to existing software platforms or providers can qualify for a sole source or cooperative purchasing exemption. The City Manager or designee may approve the upgrade to the applicable award authorization level.

Any actions above the City Manager approval level requires an Agenda Report presented directly to City Council. The award of the contract, with any bargaining, would be identified and disclosed in the Agenda Report 200

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 34 process.

1.6 Architect-Engineer (“A/E”) Plan Review/Inspection Consultant Services – Services including but not limited to civil, mechanical, structural, electrical, traffic engineering and certified plan review and inspection. Services may include but are not necessarily limited to:
investigations, report preparation, cost estimating, shop drawing review, CEQA documentation preparation, regulatory permit application and acquisition, geological and soils analysis, biology, material testing and inspection, real estate appraisal, and property acquisition services. This in includes studies addressing engineering, architecture, landscape architecture, facilities management, and environmental issues.

2. For City procurement purposes, Professional service contracts do not include contracts for Public Construction.

C. Procedure

1. List of Qualified Consultants or Contractors — Department Heads are authorized to maintain a file of names and brochures of the various technical consultants and contractors that expressed a general interest in doing work for the City of San Clemente, and to use such file for the purpose of soliciting proposals from these consultants and contractors. The Department Head has discretion to select and limit the number of firms who shall be maintained in the file and who shall receive Requests for Proposals from the City. Department Head shall seek out local professional consultants and contractors to maintain in their file.

2. Micro-Purchase Selection Process for Projects $10,000 or Less, as set by federal regulation – Staff may request a proposal from a qualified firm of their choice and negotiate a contract. The proposals may be verbal or written. Finance has the authority to determine if solicitation of additional proposals will better serve the City’s best interest.

3. Selection Process for Projects in Excess of $10,000 and less than or equal to $60,000$75,000 — Reasonable efforts shall be made to obtain three (3) or more proposals from qualified firms, but staff need not interview more than two (2) consultants or contractors. The solicitation and proposals may be verbal or written.

Finance has the authority to determine if formal solicitation of proposals will better serve the City’s best interest.
201

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 35 4. Selection Process for Projects in Excess of $60,000$75,000 — Reasonable efforts shall be made to request proposals in writing from at least five (5) consultants or contractors by the City’s Department Head or designee and approved by the City Manager. Staff will make every effort to interview at least three (3) consultants or contractors (which may be limited by number of proposals received). Contract award, if made, shall be made to the consultant or contractor whose price is fair and reasonable and who serves the City’s best interests taking into account the evaluation criteria set forth in the Request for Proposals.

5. Criteria for Selection — If applicable, the following factors shall be considered and evaluated in selecting a professional services consultant or contractor for a particular study or project using the Request for Proposal Method and detailed therein:

5.1 Cost of project or service.

5.2 Educational background.

5.3 Previous experience.

5.4 Demonstrated record of success on work previously performed for the City or similar work performed for others.

5.5 Project lead.

5.6 Staff to perform work within the specified time.

5.7 Methodology proposed to accomplish the work.

5.8 Ability to make effective public presentations of the report and/or design required.

5.9 Ability to work effectively with City staff, other public agencies and related parties as directed during the design, study, or other services.

5.10 Pertinent new ideas that may be presented during the course of the selection process.

5.11 Adequate knowledge of local conditions.

5.12 Availability, experience and knowledge of any subcontractors hired to complete the job or study.
202

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 36 5.13 Additional work performed by the contractor that may have a direct and substantial physical relationship or conflict to the proposed project.

5.14 Previous history of completing projects within budget and design estimates.

5.15 Ability to furnish adequate and effective construction supervision.

5.16 Consideration for consultants or contractors currently working with a major developer in the City for work within or adjacent to the major development project.

5.17 Whether the consultant or contractor is local.

6. Interview Process for Projects — The interview and selection process shall be conducted by the Department Head or designee responsible for the project. If the contract exceeds $60,000$75,000, the interview and selection process shall be conducted by at least two (2) individuals.

7. Consultant or Contractor Fees — After a consultant or contractor is selected, but before a recommendation is made, the fee for the professional services shall be negotiated and it must be fair and reasonable. If a mutually satisfactory fee cannot be agreed upon, negotiations shall be terminated and another consultant or contractor shall be selected.

8. Contract — The award of a contract shall be made only when sufficient funds are appropriated in the departmental and/or project account. Exemptions are granted for those professional services that relate to the processing of development plans funded through a developer deposit.

9. Supplemental or Contingency Award on Contracts — The City Manager has the authority to approve supplemental amounts as a result of changes to a project’s scope up to an aggregate of $60,000$75,000 provided that such changes do not violate applicable law or result in a cardinal change to the contract or an increase of more than 19% to the contract amount. Changes greater than $60,000$75,000 or outside of the City Council approved contingency must be approved by City Council. The agenda report must contain verbiage explaining what types of duties or situations might require supplemental funding and separate action must be taken on the contract award and the supplemental award. If a supplement will result in a cardinal change to the contract or increase the contract amount more than 19%, it must be treated as a separate contract.
203

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 37 10. Professional Consultant/Contractor Services Agreement (PCSA) – PCSAs are required for all services as prescribed herein. The template Professional Services Consultant/Contractor Agreement is contained within the City’s word processing system and shall be used for all contracts that pertain to professional services.

10.1 When agreements are being funded, in whole or in part, through federal resources, certain federally required contractual provisions are required to be included in the agreements. City staff should consult with legal counsel to ensure that the necessary federal provisions are included in these agreements.

11. Exemptions to the Informal and Formal Bidding Process – Procurement may be exempt from the bidding process (Informal/Formal) as defined in Article (XI) and Article (XII) herein.

12. Approval and Award of Contract — Approval and award of PCSAs will be:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager Over $25,000.01 to $60,000$75,000
City Council $60,000$75,000.01 and above
204

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 38 IX. SELECTION OF GENERAL SERVICES CONSULTANTS AND CONTRACTORS A. Policy

1. General Service Consultants and Contractors policies and procedures are established to provide a common understanding of the methods for selection of general services consultants or contractors; and to ensure that the City will obtain the most qualified and competent general services consultant or contractor at a reasonable cost consistent with quality facilities and/or services.

2. Selection of General Services Consultants and Contractor — General services consultants and contractors must be individually selected for a specific project with due regard for the experience of the consultant or contractor, special knowledge of the subject matter, ability to perform the services in the time allowed, record of success performing similar services and price.

B. Definitions

1. General Services Contractor/Consultant – A general services contractor or consultant generally consists of a contractor or consultant performing a service that typically does not require a high degree of professional certification or specialized expertise either with or without the furnishing of materials. Included in the definition of service contracts covered in this section are the following:

2. General services can include, but are not limited to, the following fields:
a. Maintenance Services, as defined in Article IX(B)(3) herein b. Security Services
c. Janitorial Services
d. Fleet Maintenance
e. Uniform Laundry Services

3. Maintenance Services — Maintenance Services can include, but are not limited to, the following:
a. Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes b. Minor repainting.
c. Resurfacing of streets and highways at less than one inch. d. Landscape maintenance, including mowing, watering, tree and other plant trimming, pruning, minor planting, minor replacement of plants, and servicing 205

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 39 of irrigation and sprinkler systems.

C. Procedure

1. List of Qualified Consultants or Contractors — The Department Heads are authorized to maintain a file of names and brochures of the various general services consultants and contractors who have expressed a general interest in doing work for the City of San Clemente, and to use such file for the purpose of soliciting proposals from these consultants and contractors. The Department Head has the discretion to select and limit the number of firms who shall be maintained in the file and who shall receive Requests for Proposals from the City. Department Heads shall seek out local professional consultants and contractors to maintain in their file.

2. Micro-Purchase Selection Process for Projects $10,000 or Less, as set by federal regulation – Staff may request a proposal from a qualified firm of their choice and negotiate a contract. The proposals may be verbal or written. Finance has the authority to determine if solicitation of additional proposals will better serve the City’s best interest.

3. Selection Process for Projects in Excess of $10,000 and less than or equal to $60,000$75,000— Reasonable efforts shall be made to obtain three (3) or more proposals from qualified firms, but staff need not interview more than two (2) consultants or contractors. The solicitation and proposals may be verbal or written.

Finance has the authority to determine if formal solicitation of written proposals will better serve the City’s best interest.

4. Selection Process for Projects in Excess of $60,000$75,000 — Reasonable efforts shall be made to request proposals from at least five (5) consultants or contractors by the City’s Department Head or designee and approved by the City Manager.

Staff will make every effort to interview at least three (3) consultants or contractors, which may be limited by number of proposals received. Contract award, if made, shall be made to the consultant or contractor who serves the City’s best interests taking into account the evaluation criteria set forth in the Request for Proposals.

5. Criteria for Selection — If applicable, the following factors may be considered and evaluated in selecting a consultant or contractor to perform general services using the Request for Proposal method:

5.1 Price.

5.2 Educational background.
206

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 40 5.3 Previous experience.

5.4 Demonstrated record of success on work previously performed for the City or similar work performed for others.

5.5 Project lead.

5.6 Staff to perform work within the specified time.

5.7 Methodology proposed to accomplish the work.

5.8 Ability to work effectively with City staff, other public agencies and related parties as directed during the course of the services.

5.9 Pertinent new ideas which may be presented during the course of the selection process.

5.10 Adequate knowledge of local conditions.

5.11 Availability, experience, and knowledge of any subcontractors hired to complete the services.

5.12 Additional work performed by the contractor which may have a direct and substantial physical relationship or conflict to the proposed services.

5.13 Previous history of completing services within budget.

6. Interview Process — The interview, if any, and selection process shall be conducted by the Department Head or designee responsible for the project or services. If the contract exceeds $60,000$75,000, the interview, if any, and selection process shall be conducted by at least two individuals.

7. Consultant or Contractor Fees — After a consultant or contractor is selected through the Request for Proposals process, but before a recommendation is made, the fee for the services may be negotiated in the City’s sole discretion. If a mutually satisfactory agreement cannot be agreed upon, negotiations shall be terminated and negotiations with the next highest ranked consultant or contractor shall be conducted until a consultant or contractor is selected or the City chooses to reject all proposals.

8. Contract — The award of a contract shall be made only when sufficient funds are appropriated in the departmental and/or project account and appropriate findings under the California Environmental Quality Act are made and documented. 207

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 41 9. Supplemental or Contingency Award of Contracts — The City Manager has the authority to approve annual supplemental amounts up to $60,000$75,000 in the aggregate. If the annual supplemental amounts make the contract total greater than $60,000$75,000, City Council must approve the supplemental amounts or a separate contract may be entered into. The agenda report must contain verbiage explaining what types of duties or situations might require supplemental funding and separate action must be taken on the contract award and the supplemental award.

10. General Consultant and Contractors Services Agreement (GCSA) – GCSAs are required for all services as prescribed herein. The templates for General Consultant and Contractor Service Agreements are contained within the City’s word processing system and shall be used to draft all City contracts that pertain to general services.

10.1 When agreements are being funded, in whole or in part, with proceeds that are derived from federal funding, certain federally required contractual provisions are required to be included in the agreements. City staff should consult with legal counsel to ensure that the necessary provisions are included in any agreements that are federally funded.

11. Exemptions to the Informal and Formal Bidding Process – Procurement may be exempt from the bidding process (Informal/Formal) as defined in Article (XI) and Article (XII) herein.

12. Approval and Award of Contract — Approval and award of GCSAs will be:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager Over $25,000.01 to $60,000$75,000
City Council $60,000$75,000.01 and over
208

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
42 X. SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
A. Policy

1. Other Purchasing Related Activities for items, services, licenses, commodities, and unsolicited proposals are established to provide a common understanding of the methods for selection of other purchasing related activities; and to ensure that the City will obtain the most qualified and competent consultant or contractor at a reasonable cost consistent with quality facilities and/or services.

B. Definitions

1. Other Purchasing Related Activities – any service, commodity, tangible, or intangible property purchased by the City and not addressed in any other section in the Purchasing Policy. These types of purchases may or may not be required to use the City’s standard contract templates. The following describes purchases considered to be other purchasing related activities including but not limited to:

1.1 Software/Licenses (Retail – Perpetual and Subscription) – Contracts for proprietary software licenses where the software publisher grants the use of the software under the end-user license contract (EULA), but ownership of the software remains with the software publisher. These types of purchases typically include terms that define the uses of the software and number of users allowed.

1.1.1 Perpetual License – The right to use a software program indefinitely with payment of a single fee. License may or may not include a limited Software Maintenance period and/or the option to purchase ongoing Software Maintenance at the time of purchase or at a later date.

1.1.2 Subscription License – The right to use a software as designed without customization for a determined fee, which includes general technical support, updates and upgrades to new versions or releases of the software (e.g., Software as a Service (SaaS) or Commercial Off the Shelf (COTS) software) irrespective of where the software is hosted. It may also include other no charge support that is included 209

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
43 in the purchase price of the product in the commercial marketplace.

No charge support includes items such as user blogs, discussion forums, on-line help libraries and FAQs (Frequently Asked Questions), hosted chat rooms, and limited telephone, email and/or web-based general technical support for users’ self-diagnostics.

1.2 Subscriptions/Databases/Cloud Computing – Contracts for access to online information, databases or remote servers to be used to enhance or support a City program, project or technology initiative. Contracts of this type involve no on-site visits or work by a vendor and are limited to the digital exchange of information for a predetermined fee.

1.3 Software Maintenance – Software maintenance as a product includes the publishing of bug/defect fixes via patches and updates/upgrades in function and technology to maintain the operability and usability of the software product. It may also include other no charge support that is included in the purchase price of the product in the commercial marketplace. No charge support includes items such as user blogs, discussion forums, on-line help libraries and FAQs (Frequently Asked Questions), hosted chat rooms, and limited telephone, email and/or web-based general technical support for users’ self-diagnostics. Software Maintenance as a product is billed at the time of purchase or on an annual basis.

1.4 Commodities- purchase of raw materials or primary products in current or future markets.

1.5 Wholesale Energy – Purchase of energy or related using spot or futures contracts.

1.6 Unsolicited Proposals – Unsolicited proposals present an opportunity for companies to bring forward innovation and solutions to the City. The unsolicited proposal process is subject to competitive solicitation at the discretion of the Finance Department.

C. Determination of Purchasing Procedure – Departments will coordinate with Finance to determine the best method for procurement of other purchasing related activities. These methods may be used in combination with various sections of this Policy or may require other facets to facilitate at the discretion of the Finance Department in coordination with 210

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
44 the City Attorney. It is the intent of this section to ensure all purchasing is done in a competitive and ethical manner while meeting unique procurement needs. 211

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 45 XI. EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS A. Policy

1. Competitive bids/proposals should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended. This Policy is further limited by local, state, and federal law and is not be used for the sole purpose of circumventing purchasing procedures. Exemptions for public construction is limited as defined by the Public Construction Code. The purpose of this section is to use these Exemptions for the benefit of the City and public interest in an ethical and legal manner. Exemptions, as noted in the following listing, shall be authorized by Finance and subject to Department Head, City Manager, or City Council consent in accordance with approval thresholds as documented in the Purchasing Policy. Procurement may be exempt from the bidding/request for proposal process (Informal/Formal) under the following conditions:

1.1 Bona fide “Emergency” as defined in the San Clemente Municipal Code Section 3.40.070 and Article (XII) herein.

1.2 When the City Council determines by minute action or resolution, that compliance with the bidding requirements and procedures is inefficient, impractical, or not in the best interest of the City, based on specifically identified conditions and supported by substantial evidence in the record.

1.3 Procurement does not exceed the micro-purchase threshold as set by federal regulation.

1.4 When participating in a cooperative purchasing agreement or program, or using a competitively awarded agreement of another local, state, or federal government agency or joint powers authority made up of government agencies to obtain the same supplies, equipment or services at the same or lower prices (commonly referred to as “piggybacking”) that utilized competitive bidding procedures that accomplish the purpose and intent of competitive bidding requirements under City Policy and state law and that are not inconsistent or in conflict with any City Policy or applicable law. In deciding whether to utilize a cooperative purchase agreement, the following considerations must be addressed:

1.4.1 Finance review and approval is required prior to award. 212

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 46 1.4.2 The extent to which the bid process or contract followed applicable bidding procedures guidelines outlined within this Policy should be considered.

1.4.3 The City is not required to have joined a public agency in a cooperative purchase to participate in the cooperative agreement or piggyback contract.
(a) The City has the authority to join with other public agencies in cooperative purchasing plans or programs including, but not limited to, the California Department of General
Services (CADGS), the California Multiple Award Schedule (CMAS), the U.S. General Services Administration
(“GSA”) Multiple Award Schedule program, the National
Association of Counties (NACo), National Association of State Procurement Officials (NASPO), and the California Network and Telecommunications (CALNET) Program.
(b) Sourcewell, OMNIA Partners, U.S. Communities
Government Purchasing Alliance or similar arrangements or programs as determined by the purchasing agent may also be authorized if in the City’s best interest. These generally require the City to enter into a separate contract with the vendor that follows approval thresholds set forth in this Policy.

1.5 Services and/or supplies obtained from or through agreement with any governmental, public or quasi-public entity.

1.6 Procurements funded by grants, donations or gifts when the special conditions attached to the grants, donations or gifts require the procurement of particular goods and/services.

1.7 Clearly established “Sole Source” suppliers or service providers, i.e., a single supplier who is the sole distributor, manufacturer or provider of a product or service such that there is not an acceptable substitute within a specific geographical area, i.e., Southern California or California. This exclusiveness must be verified in writing by the manufacturer or company, with confirmation on file with Finance. Examples of acceptable sole source procurement include:
213

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 47 a. Only one known source exists (City’s preference for a company, brand or manufacturer does not justify sole source).
b. Good or service is unique or special in nature.
c. No other reasonable alternative source exists that meets the City’s requirements.
d. Compatibility of good or service (e.g., department requires a specific piece of equipment, software or replacement part to be compatible with an existing equipment system).
e. Only one source meets the business needs of the City (e.g., compatibility, unique feature to meet City’s business need, etc.). f. Limited or proprietary systems (i.e., additional licenses, updates, specialized replacement parts, etc.);

1.8 The proposed professional service provider has unique familiarity with the project, subject area, or possesses other attributes that make the provider uniquely qualified to provide the services and utilizing that service provider will not violate Government Code section 1090 or other applicable law.

1.9 The costs involved in complying with the Policy greatly exceed the potential savings that the Policy might create.

1.10 The good, service, or project is of a critical nature and, due to time constraints, compliance with the Policy requirements would jeopardize timely completion.

1.11 Procurement of public utility services.

1.12 Procurement of energy, various components of energy, or derivatives in a deregulated energy market.

1.13 When solicitation jeopardizes the safety of the City, including, but not limited to, cyber security or security programs.

1.14 When purchasing from, joining in a cooperative purchase with or selling to any other governmental agency or joint powers authority when the action is beneficial to the interests of the City of San Clemente. 214

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 48 1.15 Credit card interchange fees are considered a cost of transacting and will be recovered through fee adjustments or convenience fee based on the transaction amount. An informal process will be allowed with comparisons to other providers’ rates.
215

PROCUREMENT POLICIES & PROCEDURES

EMERGENCY PURCHASING & CONTRACTING
49 XII. EMERGENCY PURCHASES & CONTRACTING
A. Policy

1. Emergency Purchases & Contracting Policies & Procedures are established to provide common methods for securing goods, services and public construction needed in the event of an Emergency and to ensure that all requests are in accordance with the Purchasing Ordinance as well as other applicable legal requirements.

2. While the need for occasional Emergency purchases and contracting is recognized, the practice shall be curtailed as much as possible by anticipating needs in time for the use of the regular purchasing procedure.

2.1 Emergency purchases and contracting may be made by the City Manager, Incident Commander or designee only in an Emergency when essential to prevent serious delays that vitally affect the preservation of life, health, safety, or property.

2.2 Authorized verbal orders may be permitted for Emergency purchases of mechanical parts and supplies needed to expedite the return to service of public safety vehicles.

B. Definitions

1. Emergency – A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

C. Procedure

1. Exemptions to the Informal and Formal Bidding Process – Procurement may be exempt from the bidding process (Informal/Formal) under the following conditions:

1.1 Bona fide “Emergency” as defined in the San Clemente Municipal Code Section 3.40.070 and this Policy.

2. Emergency Purchases and Contracting

2.1 In the case of an Emergency, the City, pursuant to a four-fifths vote of the City Council, may repair or replace a public facility, take any action directly related to and immediate action required by that Emergency, and procure 216

PROCUREMENT POLICIES & PROCEDURES

EMERGENCY PURCHASING & CONTRACTING
50 the necessary goods, services, and public construction for those purposes, without giving notice for bids/proposals, to let contracts in accordance with Public Contract Code Section 22050.

2.2 The goal of the Purchasing program is to save funds on procurement by reducing Emergency purchases and contracting to provide dollar savings.

2.2.1 For Emergency purchases and contracting, the user department shall contact the City Manager or their designee, advising of the Emergency that has arisen, and shall request approval.

2.2.2 If an Emergency should arise during a time when Finance is normally closed, the requesting department may select a vendor and a purchase order number will not be assigned at the time of the transaction. However, the obligation and responsibility of the requesting department is to inform Finance of the details of the transaction at the earliest possible time on the first normally scheduled work day following the Emergency.

2.2.3 The requesting department shall obtain the requested material or service and a delivery slip from the vendor with an explanation justifying the Emergency purchase. All invoices shall be sent directly to the requesting department for review.

2.2.4 Requisitions covering Emergency purchases should be entered into the financial system within one working week of the order being placed.

2.2.5 A memorandum of explanation justifying the need and/or circumstances for the Emergency purchase and contract must accompany all Emergency requisitions. Any Emergency requisition not accompanied by a memo of justification will be returned to originating department and not be processed for payment.

2.2.6 Emergency purchases and contracts shall be approved by the City Manager or their designee.

A written report from the requesting department head detailing the circumstances of all Emergency purchases and contracts in excess of $60,000$75,000 shall be filed with the City Council at the Council’s next regular meeting (Section 3.40.070 San Clemente Municipal Code).
217

PROCUREMENT POLICIES & PROCEDURES

EMERGENCY PURCHASING & CONTRACTING
51 2.2.7 The Emergency purchase of unbudgeted capital outlay items must be approved by the City Manager and City Council at the ensuing meeting date.
218

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
52 XIII. ENVIRONMENTALLY PREFERABLE PROCUREMENT
A. Policy

1. Procurement Policies & Procedures are established to support markets for recycled and other environmentally preferable products by encouraging City Departments and contractors to buy such products whenever practicable and in the City’s best interests. The California Integrated Waste Management Board makes on-going efforts to reduce the landfill solid waste streams by encouraging the use of environmentally preferable products.

2. This Policy establishes procedures and programs to encourage and facilitate the procurement of recycled and other environmentally preferable product by the City of San Clemente and its contractors. This Policy calls upon the City and its contractors to use recycled and other environmentally preferable products whenever practical, while recognizing that their principal requirements must be product performance and fiscal responsibility.

3. To the extent of any conflict, this Policy shall automatically be superseded by SB 1383 or any other local, state and federal laws pertaining to environmental initiatives currently existing or as amended or enacted from time to time.

B. Definitions
The following terms shall have the assigned definitions for all purposes under this Policy.

1. “City” - means the City of San Clemente.

2. “Compost Products” - means mulch, soil amendments, ground cover, or other landscaping material derived from the biological or mechanical conversion of cellulose-containing waste material.

3. “Environmentally Preferable Products” - means products that have a lesser or reduced effect on human health and the environment when compared with competing products that serve the same purpose. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance or disposal of the product.

4. “Post-Consumer Recycled Material” - means only those products generated by a business or consumer which have served their intended end uses, and which have 219

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
53 been separated or diverted from the solid waste stream for the purposes of collection, recycling and disposition.

5. “Practicable” - means sufficient in performance and available at a reasonable price (Final determination of the practicability of any given product must lie with the users of the product, since it is they who understand their performance and budgetary requirements. Evaluation should consider life-cycle and replacement costs.)

6. “Price Preference” - means a percentage by which offered prices for recycled products are reduced for purposes of bid evaluation. For example, under a 5% price preference, if a bid of $1.00 per unit is received for a recycled product meeting specification, the bid price will be reduced by $0.05 (5%) and evaluated as though it had been $0.95. If this bid results in a contract award, the price actually contracted will be the bid price of $1.00 per unit.

7. “Recyclable Product” - means a product which, after its intended end use, can demonstrably be diverted from the solid waste stream for use as a raw material in the manufacture of another product.

8. “Recycled Material” - means material and byproducts that have been recovered or diverted from solid waste and that can be utilized in place of raw or virgin materials in manufacturing a product. It is derived from post-consumer recycled material, manufacturing waste, industrial scrap, agricultural waste, and other waste material, but does not include material or byproducts generated from, and commonly reused within, an original manufacturing process.

9. “Recycled Product” - means a product containing recycled material.

C. Procedure

1. Responsibilities of Lead Agency

1.1 The Public Works Department and Utilities Solid Waste Division shall be the lead agency for implementation of this Policy and shall perform the following:

1.1.1 Develop and maintain information about environmentally preferable products and recycled products containing the maximum practicable amount of recycled materials to be purchased by the City whenever possible.
220

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
54 1.1.2 Inform City Departments and Divisions of their responsibilities under this Policy and provide implementation assistance.

1.1.3 Disseminate information on recycled and environmentally preferable product procurement opportunities, specifications, and performance to the other City Departments and Divisions.

1.1.4 Communicate with Departments and Divisions to review Policy requirements and new procurement opportunities and to monitor the status of Policy implementation product research results.

1.1.5 Publicize the progress of Policy implementation.

1.1.6 Submit reports to the City Council reflecting the procurement program actions considering the following information:
(a) A compilation of procurement data collected from all City Departments and Divisions.
(b) A status of product or service evaluations conducted by the City’s Departments and Divisions.
(c) An assessment of procurement program effectiveness, an evaluation of program goals and projections of future
procurement opportunities.
(d) Recommendations for changes in the Procurement Policy.

2. Responsibilities of all City Departments and Divisions

2.1 Each City Department and Division shall be responsible for the following:

2.1.1 Evaluate each recycled or environmentally preferable product to determine the extent to which the Department or Division and its contractors may practicably use the product.

2.1.2 Purchase recycled products with the maximum amount of recycled material practicable.

2.1.3 Ensure contracts issued by the Department or Division require recycled and environmentally preferable products wherever practicable.
221

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
55 2.1.4 Ensure contracts issued by the agency for recycled products require the maximum practicable amount of recycled material contractors and provide certification of this content or report amounts used.

2.1.5 Ensure that all printing by all City Departments and Divisions use recycled paper that bears the “chasing arrow” logo or other imprint identifying it as such when practicable.

2.1.6 Use both sides of paper sheets whenever practicable in printing and copying.

2.1.7 Ensure that requests for bids and proposals issued by all City Departments and Divisions require that, whenever practicable, contractors and consultants use recycled paper and both sides of paper sheets or facilitate paperless practices.

2.1.8 Report the progress of Policy implementation by the Department or Divisions to the Solid Waste Section, including the status of product evaluations conducted by the Solid Waste Section and types of environmentally preferable products purchased by the Department or Division and its contractors.

2.1.9 Report total purchases of environmentally preferable, recycled and non-recycled products by the Department or Division and its contractors annually to the Solid Waste Division.

3. Price Preference

3.1 All environmentally preferable products will be given a five percent (5%) price preference when evaluating bids/proposals.

4. Environmentally Preferable Products

4.1 Environmentally preferable products are listed below. The Solid Waste Division may modify this list from time to time.

4.1.1 Paper and paper products.

4.1.2 Compost products.

4.1.3 Horticultural mulch made with recycled land clearing and other wood debris.
222

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
56 4.1.4 Construction aggregates made with recycled cement concrete, glass or asphalt.

4.1.5 Cement and asphalt concrete containing glass cullet, recycled fiber or plastic, tire rubber or fly ash.

4.1.6 Lubricating oil and hydraulic oil with re-refined oil content.

4.1.7 Antifreeze.

4.1.8 Recycled plastic products.

4.1.9 Remanufactured tires and products made from recycled tire rubber, including rubber mats and play field surfaces.

4.1.10 Insulation Products.

4.1.11 Paint.

4.1.12 Remanufactured laser printer toner cartridges.

4.1.13 Other products as designated by the Solid Waste Section.

5. Exemptions

5.1 Nothing contained in this Policy shall preclude City Departments and Divisions from requiring recycled material content as a bid specification.

5.2 Nothing in this Policy shall be construed as requiring a City Department or Division or its contractors to procure products that do not perform adequately for their intended use or are not available at a reasonable price in a reasonable period of time.
223

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
57 XIV. CONTRACT ADMINISTRATION
A. Policy
It shall be the Policy of the City of San Clemente to ensure that all contracts to which the City is a party are prepared and processed according to a systematic procedure in order to ensure that contract documents are legally enforceable and that all necessary securities and protections are in place prior to the commencement of work.

B. Contract and Agreement Determination

1. Other than petty cash, all procurements require the use of a contract or agreement as prescribed in this section.

1.1 Requisitions are required for purchases in excess of $5,000 or a lesser amount determined by finance based on the inherent procurement risk.

1.2 Appropriate use of contracts and purchase orders are further described in Article (V)(C).

C. Definitions
For purposes of this Policy, the following definitions shall apply:

1. Contract: A promise in writing or set of promises in writing signed by the parties the breach of which the law gives a remedy or the performance of which the law in some way recognizes as a duty, including without limitation, Purchase of Supplies, Materials and Equipment, Professional/General Services Agreements, Agreements for Construction of Public Projects, Subdivision Improvement Agreements, accepted Purchases Orders, and leases.

2. Agreement: Same as “Contract.”

3. Purchase Contract: A contract that procures supplies, materials and equipment. (see Article VI, Procurement of Supplies Materials and Equipment)

4. Purchase Order: A contractual agreement for goods, services and public construction projects for an approved amount. These instruments have less detailed or incorporated terms and conditions as compared to a standard City contract and should only be used independently for minimal risk procurements. City practice is to use purchase orders in conjunction with standard City agreements whenever feasible.
224

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
58 5. Agreement for Construction of Public Projects: A contract that procures services that will directly result in the physical construction of a public improvement. (See Article VII, Public Construction Projects)

6. Professional Services Agreement: A contract that procures professional, technical and/or clerical services and that will not directly result in the physical construction of a public improvement. (See Article VIII, Selection of Professional Services Consultants and Contractors)

7. General Services Agreement: A contract that procures services which typically do not require a high degree of professional certification or specialized expertise either with or without the furnishing of materials. (See Article IX, Selection of General Service Consultant and Contactors)

8. Other Agreements: A contract that is not appropriate for the use of the City’s standard purchasing templates used for Construction of Public Projects, Professional Services, General Services, Supplies, Materials and Equipment. These types of agreements must be sent to the City Attorney in advance for approval.

Other agreements include but not limited to the following:

8.1 Information Technology Agreements: A contract that procures information technology related services or license agreements for use of technology.

8.2 Third Party Energy Supplier Contracts: A contract that procures energy, various components of energy, or derivatives in a deregulated energy market.

9. Insurance: A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils.

10. Certificate of Insurance: Evidence of insurance provided in lieu of an actual copy of the insurance Policy and which contains statements or words to the following effect: “This certificate or verification of insurance is not an insurance Policy and does not amend, extend or alter the coverage afforded by the policies listed herein.

Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies.” (California Insurance Code Section 384.)
225

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
59 11. Insurance Endorsement: A statement issued by a duly authorized representative of an insurance company that guarantees the validity of a Certificate of Insurance and names the City of San Clemente, its, officials, officers, employees, agents, and volunteers and if determined appropriate, Caltrans (California Department of Transportation), Federal Highway Administration, and any other public agencies, as additional insureds.

12. Security Instrument: A bond, letter of credit, or other security acceptable to the City at City’s sole and absolute discretion which guarantees or secures the fulfillment of an act, such as faithful performance, payment to subcontractors and other persons furnishing labor, materials, or equipment, and/or warranting the accepted works of improvement.

13. Local Bidder: A bidder that is a small business with a physical business location is in the boundaries of the City of San Clemente as indicated on an approved active business license. Prices, fitness, quality, delivery and service being equal, a seven percent (7%) "local preference" may be given to the local bidders as provided by law and further defined in SCMC section 3.40.030.

D. Procedure

1. All City departments shall be responsible for drafting agreements that pertain to their operations. Standard forms for Purchase of Goods, Professional Services Agreements, General Services Agreements, and Agreements for Construction of Public Projects are contained within the City’s word processing system and shall be used to draft all City contracts/agreements that pertain to goods, general/professional services or construction projects. No modifications to the standard forms for contracts/agreements shall be made without prior City Attorney approval.

1.1 Access the standard Contract Template, utilize Word to create a new document, open the shared templates, choose Purchasing and double click on the Template Filename as listed in the following table.

Contract Type Template Filename
Supplies, Materials & Equipment Purchase Contract Template Professional Services Agreement Professional Consultant/Contractor Services Agreement
226

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
60 General Services Agreement -General Services Agreement -Maintenance Services Agreement
Construction of Public Projects Construction Contract
Short Form Construction Contract Short Form Construction Contract

1.2 Software license agreements may use agreements provided by software provider due to the technical nature, if acceptable to the City Attorney.

1.3 Other agreements not listed must receive approval by Finance and the City Attorney’s office before execution.

2. After a draft contract/agreement has been prepared, the originating department shall include the contract document in the bid package to ensure that prospective bidders are provided with all requirements prior to submitting bids/proposals.

3. The originating department in coordination with the City Clerk’s Office shall determine the number of original contracts needed and shall ensure that sufficient original contracts are processed and distributed. If applicable, the original contract shall be returned to the originating department for its retention only if an additional contract has been processed specifically for this purpose.

3.1 Electronic Signatures. Whenever possible agreement should be signed electronically. Electronic signatures have with the same force and effect as original ink signatures when a provision to that effect is included in the contract language.

4. The originating department shall obtain and attach all necessary exhibits, such as scope of work, schedule of performance, maps and legal descriptions to all original or electronic copies of the contract.

5. Originating departments are encouraged to submit all word version copies of the draft contract, complete with all attachments (with the exception of Certificates of Insurance/Endorsement and Security Instruments) to the City Attorney for approval as to form in advance of submission to the contractor/consultant. The City Attorney shall sign the original contracts when acceptable from a legal standpoint.

6. The originating department shall obtain the signature(s) of the party(ies) with whom the City proposes to contract on all originals of the contract document. It is critical 227

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
61 that representatives from the opposite party(ies), who are authorized to execute binding agreements on behalf of their company, as verified by the originating department, sign all originals of proposed Professional Services Agreements prior to City Council consideration of same.

The City shall execute agreements in advance of execution by the opposite party(ies), only in cases where the City proposes to contract with a higher agency, such as the County of Orange or State of California. Some contracts, particularly those which involve land conveyance and/or recordation with the County Recorder (e.g., easements and development agreements), require that signatures be notarized.

In these cases, the originating department shall ensure that the party with whom the City proposes to contract submits a notarized signature on all originals of the contract document. The City Clerk or Deputy City Clerk shall notarize the City’s signatories.

7. The originating department shall ensure, and verify with Finance, if necessary, that sufficient funds are budgeted to cover the cost of the contract/agreement.

8. Unless City Council approval is required by State or local statute, contracts that involve expenditures of up to $10,000 may be signed by Division Managers, $25,000 or less may be signed by Department Heads; contracts that involve expenditures less than or equal to $60,000$75,000 may be signed by the City Manager; and all contracts that involve expenditures greater than $60,000$75,000 shall be submitted to the City Council for approval and shall be executed by the City Manager or their designee following City Council approval.

9. A Certificate of Insurance and insurance endorsement shall be obtained from all Contractors/Consultants, which evidence minimum insurance coverage consistent with the text of the contract. A new Certificate of Insurance and endorsement need not be obtained from professional services consultants provided they have a “blanket” coverage insurance certificate already on file with the City that will remain in effect during the duration of the project. In such cases, it is incumbent upon the originating department to attach a copy of the existing insurance certificate and endorsement to the contract document. “Blanket” coverage is defined as liability insurance that meets the requirements of the contract and does not contain a provision that limits its application to a specific project. Public construction project contractors must provide a new insurance certificate and endorsement with each contract.

10. A business license shall be obtained from all Contractors/Consultants prior to the commencement of the agreement.
228

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
62 11. Security Instruments, which conform to the requirements of Agreements for Construction of Public Projects, shall be obtained from all Public Project contractors. Following approval of the Security Instruments by the City Manager or designee, the Security Instruments shall be attached to the City’s original of the contract document. The words “City Copy” shall be clearly labeled on the first page of the contract which contains the Security Instruments as well as the Certificate of Insurance and endorsement.

12. After all applicable requirements in this section have been completed, the originating department shall obtain the signature of the Department Head on all original copies of Agreements for which the Department Head is authorized to execute.

13. After all applicable requirements in this section have been completed, the original contracts shall be submitted to the City Clerk’s Office for processing. Contracts shall not be provided to the City Clerk’s Office until all applicable exhibits, signed Workers Compensation Insurance Certification, Certificate of Insurance/endorsement, and bonds (if applicable) which have been approved and initialed by the City Manager or designee, applicable Security Instruments have been attached to the contract document and approval from the City Attorney’s office has been obtained.

14. The City Clerk’s Office shall obtain the signature of the City Manager on all original contracts which he/she is authorized to execute pursuant to this Policy.

15. The City Clerk’s Office shall obtain the signature of the Mayor on all original contracts that have been approved by the City Council where the Council has not specifically delegated signature authority to another City representative.

16. The City Clerk’s Office shall not release executed contracts to the originating department, consultant or contractor until, and unless, all of the following have been verified:

16.1 The contract has been approved as to form by the City Attorney.

16.2 The contract has been approved as to funding availability by Finance.

16.3 The contract has been executed by the consultant or contractor. 229

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
63 16.4 When applicable, the contract has been executed by the appropriate City representative pursuant to this Policy. In the case of contracts which require City Council approval, the approval shall be verified.

16.5 When applicable, the contract contains a Workers Compensation Insurance Certification that has been executed by the Consultant or Contractor.

16.6 When applicable, the Certificate of Insurance and insurance endorsement have been approved and initialed by the City Manager or designee.

16.7 Any required Security Instruments required by the contract have been approved by the City Manager or designee.

16.8 All exhibits to the contract, including but not limited to, scope of work, schedule of performance, maps, legal descriptions, Certificates of Insurance/Endorsements, and Security Instruments have been included or appended.

17. After the City Clerk’s Office has verified that all requirements set forth in Article (XIV)(D)(16) have been fulfilled, the City Clerk’s Office shall coordinate the receipt of the executed agreement to all parties. The City Clerk shall maintain a copy of the original agreement or equivalent electronic version, along with the successful bid proposal (if applicable).

18. The originating department may not issue a Notice to Proceed until the City Clerk’s Office has verified that the contract is complete.

19. The City Clerk’s Office is responsible for maintaining custody of all official original contracts to which the City is a party.

E. Purpose
Article XIV of the City Procurement Policies & Procedures for Contract Administration is established to ensure the systematic and consistent preparation, content, and processing of City contracts/agreements clearly defining individual departmental roles from the drafting of the contract through approval and execution of the contract and authorizing work to commence. Contracts/agreements shall be prepared to protect the City’s interests. Contract disputes can be expensive to the City, both in terms of legal costs, liabilities, and delays.

The intent of this Article XIV is to itemize the proper contract-processing procedure to ensure that all contract documents are legally defensible and that all necessary securities and protections are in place prior to the commencement of work. 230

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
64 F. References
Public Contracts Code Section 20160 et seq. and 22000 et seq. Contracts are also addressed in a significant number of locations within the Government Code. Either consult with the City Attorney or refer to the portion of the Government Code that pertains to the topic of a specific contract to determine whether particular statutory requirements exist that are applicable to the contract.
231
Attachment 2
4861-3475-9263 v2
ORDINANCE NO. 1793

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING
SAN CLEMENTE MUNICIPAL CODE TITLE 3
REVENUE AND FINANCE, CHAPTER 3.40,
SECTIONS 3.40.050 AND 3.40.080 RELATING TO

PURCHASING PROCEDURES
WHEREAS, pursuant to California Government Code sections 54201 through 54203, local agencies are required to adopt by ordinance, policies and procedures, including regulations, governing the purchase of supplies and equipment by the local agency; and
WHEREAS, the City of San Clemente (“City”) adopted such policies and procedures via Ordinance nos. 1207 and 1297 in 2004, and 1776 in 2024, and, WHEREAS, the City Council sees value in authorizing the City Manager to administratively approve public construction project overages within the City Council approved project budget for an amount not to exceed 10% in the aggregate of the contract award and to the extent permissible by state and federal law to streamline procurement, and facilitate accountability and timeliness of project completion; and WHEREAS, the California Uniform Public Construction Cost Accounting Act, codified in Public Contract Code (PCC) sections 22000, et seq. (“CUPCCAA”) sets an alternative method for the bidding of public works projects by public entities; and WHEREAS, on March 17, 1993, the City Council adopted Resolution No. 93-31 allowing the City to become subject to the uniform construction cost accounting procedures set forth in CUPCCAA; and
WHEREAS, effective January 1, 2025, AB 2192 increased competitive bidding thresholds imposed by Public Contract Code sections 22032 and 22034; and WHEREAS, amendments to CUPCCAA’s bidding requirements and procedures have not been incorporated into the City purchasing ordinance; and WHEREAS, the City Council desires to amend Section 3.40.050 of the San Clemente Municipal Code so that it parallels CUPCCAA; and WHEREAS, on June 18, 2024, the City adopted Ordinance No. 1776, which authorizes the City Manager to award and execute contracts up to $60,000; and 232
Ordinance No. 1793 Page 2
WHEREAS, the City Council of the City of San Clemente has determined that adjustments to the contract award authority will improve the bid award process by aligning with CUPCCAA bidding requirements and thresholds, and is in the City’s and the public’s best interests; and
WHEREAS, the City Council desires to repeal and replace Sections 3.40.050 and

3.40.080 of the Municipal Code to improve procurement efficiency as set forth herein.

NOW, THEREFORE, the City Council of the City of San Clemente, California, hereby ordains as follows:

SECTION 1: Recitals and Scope
The recitals above are considered true and incorporated into this Ordinance. The scope of this Ordinance is for procurement. This Ordinance is subject to the limitations set and superseded by state and federal law.

This Ordinance applies only to procurements that involve the expenditure of funds entirely within the City's control where responsibility and quality are equal and shall not apply to procurements that involve the expenditure of funds that are not entirely within the City's control, such as state and federal grant funds, or those that due to legal restrictions prohibit its application.

SECTION 2: Amendment to San Clemente Municipal Code section 3.40.050 Section 3.40.050 of the Municipal Code of the City of San Clemente is hereby stricken in its entirety and amended to read in its entirety as follows:

3.40.050 – Public Works Projects.

A. Alternative Bid Procedures for Public Projects under $220,000.

Public projects, as defined by the California Uniform Public Construction Cost Acting Act (CUPCCA) and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let to contract as set forth in Sections 22032, et seq., of the Public Contract Code. Public projects of seventy five thousand dollars ($75,000) or less may be performed by the employees of the City by force account, by negotiated contract, or by purchase order. Public projects of two hundred thousand dollars ($220,000) or less may be let to contract by informal procedures as set forth in CUPCCA.

Amendments or revisions to CUPCCA shall automatically be directly incorporated into this section when enacted by the California Legislature upon the effective date thereof without further action of the City Council.
233
Ordinance No. 1793 Page 3
B. Contractors List. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and the criteria promulgated from time to time by the California Uniform Public Construction Cost Accounting Commission.

C. Notice Inviting Informal Bids. Where a public project is to be performed that is subject to the informal bidding procedure under CUPCCA, a notice inviting informal bids shall be mailed or emailed to all contractors for the category or work to be bid, as shown on the list developed in accordance with subsection B of this section, and to all construction trade journals as specified by the CUPCCA Commission in accordance with Section 22036 of the Public Contract Code.

Additional contractors and/or construction trade journals may be notified at the discretion of the City; provided, however:

1. If there is no list of qualified contractors maintained by the City for the particular category or work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the CUPCCA Commission; and

2. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

D. Public Project Generally. Public projects not subject to the alternative bid procedures as set forth in subsection A of this section, or public projects where the Director of Public Works determines that it would be in the City’s best interest to proceed with formal bidding, shall be let to contract through a competitive bid process designed to select the lowest responsive and responsible bidder. The procedures to be followed shall at all times comply with applicable laws.

E. Award of Contracts. The persons and body authorized to award and execute public project contracts shall be as set forth in section

3.40.080.

SECTION 3: Amendment to San Clemente Municipal Code section 3.40.080 Section 3.40.080 of the Municipal Code of the City of San Clemente is hereby stricken in its entirety and amended to read in its entirety as follows:

3.40.080 – Authority to Award Contracts.

The following persons and body are authorized to award contracts that were solicited in compliance with this Chapter, the City purchasing policy 234
Ordinance No. 1793 Page 4
and state and federal law at the following corresponding amounts and to execute such contracts or delegate the authority to execute such contracts:

Division Manager $0—$10,000.00
Department Heads $10,000.01—$25,000.00
City Manager $25,000.01—$75,000.00
City Council $75,000.01 and over
SECTION 4: Publication. The City Clerk shall certify to the adoption of this Ordinance by the City Council and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this ordinance, including the vote for and against the same, the Office of the City Clerk in accordance with California Government Code section 36933.

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

SECTION 6: Severability. If any provision of this Ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of invalidity of any portion thereof.

SECTION 7. Effective Date. This Ordinance shall become effective 30 days after adoption.

INTRODUCED AND FIRST READ at a regular meeting of the City Council of the City of San Clemente, California, on the 6th day of June, 2025.

APPROVED AND ADOPTED at a regular meeting of the City Council of the City of San Clemente, California, on _____day of _________________, 2025. 235
Ordinance No. 1793 Page 5
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 ) ss.

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1793 having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
________________________________
Elizabeth A. Mitchell, CITY ATTORNEY
236

PROCUREMENT POLICY AND PROCEDURE
1 Subject: Purchasing Policies &
Procedures
Index: Financial Services
Number:

Effective Date: Prepared By: Finance & Administration
Services
Supersedes: 102-5, 201-2-1, 201-2-2,
201-2-3, 201-2-5, 201-2-6,
201-2-8
Approved By:

I. PURPOSE:

The Purchasing Policies & Procedure manual establishes a common understanding and uniform procedures for the City’s procurement of supplies, materials, equipment, professional and general services consultants/contractors, public construction projects, other purchasing related activities and emergency procurements. These policies ensure the systematic and consistent preparation and processing of City contracts in accordance with the City’s Municipal Code, State and Federal law. In its discretion, the City Council may at any time, without amending the Municipal Code, waive the purchasing procedures or alter these proceedings to fit a specific purchase contract, when such waiver is not in violation of State or Federal law. Furthermore, the City’s purchasing is to be conducted in a business-like and ethical manner.

II. ORGANIZATIONS AFFECTED:

All Departments/Divisions.

III. REFERENCES:

San Clemente Municipal Code, Title 3 Revenue and Finance, Chapter 3.40 Purchasing California Code of Regulations, Title 8, Section 16000
Public Contract Code, Sections 1100-22355
City of San Clemente Finance Policy 201-3
Labor Code Section 1720
IV. TABLE OF CONTENTS:

V. PURCHASING CYCLE…..………………...…………………………………….…..3
VI. PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT……………16 VII. PUBLIC CONSTRUCTION PROJECTS…………………………...……………...23 Attachment 3
237

PROCUREMENT POLICY AND PROCEDURE
2 VIII. SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS…………………………………………………………......................31 IX. SELECTION OF GENERAL SERVICE CONSULTANT AND
CONTRACTORS………………………………………………………………………..37
X. SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR SERVICES, ITEMS, COMMODITIES AND UNSOLICITED PROPOSALS………....41 XI. EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS..44 XII. EMERGENCY PURCHASES & CONTRACTING………………..…...................48 XIII. ENVIRONMENTALLY PREFERABLE PROCUREMENT………………..........51 XIV. CONTRACT ADMINISTRATION………………..…………..……….................56 238

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
3 V. PURCHASING CYCLE
A. Purchasing Overview

1. Decentralized Purchasing System
The City has a decentralized purchasing system, which means that for most purchases, departments can directly solicit bids or proposals and place orders with suppliers or service providers. These actions are subject to the limitations established in this Policy and to the approval of the appropriate awarding authority. Nothing precludes staff from seeking procurement assistance from the Finance Department to clarify policies, processes and procedures with best practices.

1.1 In a decentralized purchasing system, all users must understand and abide by the City’s procurement process to ensure fair and consistent application.

2. General Categories for Purchases
City purchase categories generally consist of the following categories, for which different procurement methods may apply:

2.1 Supplies, Materials and Equipment (Goods)

2.2 Professional and General Consultant/Contractor Services (Services)

2.3 Public Construction Projects

2.4 Other Purchasing Related Activities for Services, Items, Licenses, Commodities, and Unsolicited Proposals

2.5 Emergency Procurements

3. Responsibility of City Staff

3.1 Responsibilities of all employees – City employees are required to discharge their duties fairly, impartially and with the highest degree of integrity. In support of these concepts as they apply to the purchase of goods, services, and public construction projects, City staff shall:

3.1.1 Read, understand and implement this Policy and ask questions as necessary to do so.

3.1.2 Clearly identify procurement needs and funding availability. 239

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
4 3.1.3 Work with departments to develop suitable competitive specifications.

3.1.4 Participate in the evaluation of bids and proposals as required.

3.1.5 Inspect goods delivered and services performed to determine conformity with established requirements and contractual obligations.

3.1.6 Authorize payment for conforming goods, services, and public construction projects.

3.1.7 Notify the Finance Department of non-conforming goods, services, or public construction projects.

3.1.8 Document tangible or intangible value to the City when requisitioning goods, services, and public construction projects without competition when authorized.

3.1.9 Recognize that fair and open competition results in better value to the City.

3.1.10 Understand and be accountable for the policies and procedures established for purchasing goods, services, and public
construction projects.

4. Purchasing Requisition Required – Requisitions are required for purchases in excess of $5,000 or in a lesser amount as determined by finance based on the inherent procurement risk. Goods, services and public construction purchases that require a contract, purchase order, or blanket purchase order, including public construction projects, must be initiated with a properly documented and approved purchase requisition that includes:

4.1 Concise description of the purchase that adequately communicates need.

4.2 Actual or estimated dollar amount.

4.3 Valid project number (if applicable).

4.4 Verification of available funding or identification that funding is needed, including City Council approval date as applicable.

4.5 Price bids/proposals/quotes with recommended vendor selection and valid award justification.
240

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
5 4.6 Description of procurement process utilized and efforts taken to solicit bids/proposal from local vendors.

4.7 Bid/Proposal exemption documentation (if applicable).

5. Purchasing Documentation – Every purchase should be documented with records and written statements of the kind, and with sufficient detail, to show consideration for the factors pertinent to good buying. These include criteria related to solicitation, authorization, availability, quality, service, and price. The selection basis for the final award must be clearly documented with all documents maintained for at least three (3) years before destruction, with longer destruction timeframes subject to State and Federal grant requirements and the City’s retention schedule. Specific procurement procedures for goods, services, and public construction projects are further documented in the Policy.

6. Authorization of Purchases – Each requisition must be authorized by a Department Head, Division Manager or designee. Finance will maintain an authorization list. The Department Head or Division Manager is responsible for notifying Finance of any changes or temporary assignment of authorization.

6.1 Budget Approval – The City’s budget authorizes funding availability for the procurement of goods, services, and public construction projects. Purchases and contracts for certain dollar amounts are subject to Division Manager, City Manager, Department Head and City Council approval and/or solicitation requirements as referenced herein.

6.2 Approval and Award of Contract – Contracts must be awarded by the appropriate authority level. Approval thresholds are determined by the initial term of the contract, plus authorized extensions and options. Contract contingency levels shall be approved by City Council or a designated individual. Contracts shall not knowingly be staged or separated into smaller units or terms solely for the purpose of circumventing approval authority.

6.2.1 Contract Award Determination – The City Council, City Manager or designee shall have final determination to award, reject all bids/proposals or recommend the re-advertisement of certain procurements in the event of bid/proposal inconsistencies and if consistent with applicable law.
241

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
6 6.2.2 Approval and Award Thresholds:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager $25,000.01 to $60,000
City Council $60,000.01 and over
The approver can, at their administrative discretion, delegate approval authority on their behalf in writing. Approval authority thresholds governing invoice payment approval levels are listed separately in Policy 201-8 .

6.3 Contracts Awarded by the City Manager – Contracts or amendments awarded by the City Manager shall be reported by the City Manager during the next Regular Council Meeting and posted on the website.

6.4 Contracts Awarded by Department Heads and Division Managers – Contracts or amendments awarded and approved by Department Heads and Division Managers shall be reported to the City Manager or designee at least monthly.

6.5 Local Vendor Preference – Prices, fitness, quality, delivery, and service being equal, a seven percent (7%) rating scale preference may be given to Local Bidders as defined in the San Clemente Municipal Code section

3.40.030 and Article (XIV)(C)(13) of this Policy in accordance with State law.

7. Contracting Requirements – The following section explains the various contracting requirements associated with City funds.

7.1 Contract Award – A contract is not considered to be awarded until it is approved by the appropriate award authority, i.e., the City Council, City Manager, Department Head or Division Manager as described in Section 6.2 above.

7.2 Standard Contract Terms and Conditions – Use of the City’s standard contracts (or terms and conditions for purchase orders) approved by the City Attorney is required whenever feasible.

7.3 Written Contract Requirement – Written contracts on City templates provided and approved by the City Attorney are required for good, services 242

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
7 or public construction projects. Written contracts on City templates are to be used for purchases where vendor standard terms and conditions are insufficient to manage the City’s risk as it relates to liability, prevailing wage compliance or any other relevant risk exposure. Finance has authority to make a final determination on the use of vendor standard terms and conditions or written contracts on City templates.

7.4 City-Provided Scope of Work Requirement – Contracts must include welldefined scopes of work and should be provided by City staff. If feasible, use of consultant or vendor-provided scopes of work should be minimized.

7.5 No Contract Splitting – Under no circumstances can any contract be split or separated into smaller components to determine the appropriate award authority or for any other purpose.

7.6 Contract Types and Procurement Methods – The City utilizes several different types of procurement methods.

7.6.1 Petty Cash – See Finance Policy 201-3

7.6.2 Purchase Order – Use of purchase order should be limited in favor of City standard written contracts for goods, services or public construction and should be used in conjunction with a City standard written contract. Purchase orders for an approved amount with a copy provided to the contractor/consultant and copies distributed internally may be used as the primary contract document for certain purchases wherein the risk to the City is minimal and the terms and conditions on the purchase order are sufficient to manage the City’s risk as it relates to liability, prevailing wage compliance and any other relevant risk as determined by Finance. Purchase orders may be used
independently for certain procurements when any of the following conditions apply:
(a) Another form of written contract is not feasible or practical. (b) Financed determines the procurement is of acceptable risk to the City.
(c) Finance determines that a purchase order is appropriate.

7.6.3 Blanket Purchase Order (BPO) – Purchase of designated products or services on a repetitive basis from a specific vendor on 243

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
8 an as needed basis. BPO’s are issued unencumbered and are restricted by an annual service agreement not to exceed the approved contract.

7.6.4 Contract Purchase Order – A “Contract Purchase Order” is an agreement whereby the terms and conditions, pricing, and special provisions are agreed to and apply to individual commitments within a pre-established time period.

Under a “Contract Purchase Order” the items to be procured are identifiable within the orders, but the quantities of each are unknown. Therefore, in consideration of firm prices being agreed to for the life of the agreement or subject to escalation by a predetermined formula, most Contract Purchase Orders are either an “exclusive requirement” or “minimum requirements” type. (a) Exclusive Requirements – No guarantee is made as to the quantity to be purchased, but it is agreed any and all
requirements will be purchased only under that order and from no other source.
(b) Minimum Requirements – No exclusiveness is provided, but Purchasing guarantees to purchase a minimum quantity
during the life of the contract.

7.6.5 Change Order – Changes that affect the contractual agreement established under a purchase order or a contract shall be authorized at the appropriate level. Any change affecting service, design, specifications, quantity, delivery schedule, price, payment of invoice, transportation, and similar contractual considerations may be negotiated, but must have proper authorization and approval prior to commitment or performance. Where a firm contract is in effect to produce an item or service at a given price, the City and the vendor are expected to comply. Change Orders should not be used as a means of recovering losses or increasing vendor profits. (a) Change Orders can be processed by staff at the Department level if the amount falls within the City Council project contingency authorized or is less than or equal to $25,000 in aggregate and less than 19% of the contract price.
(b) City Manager Approval is required for project Change Orders that increase the aggregate Purchase Order for an 244

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
9 excess of $25,000 and less than or equal to $60,000. If the Change Order exceeds the project contingency amount, City Council approval will be required. Change Orders in the aggregate in excess of 19% of the contract price or that violate applicable law are prohibited.
(c) City Council approval is required for Change Orders that increase the aggregate Purchase Order to exceed $60,000 or exceed the approved contingency level.
(d) The department submitting the Change Order shall
document the reason for the change with appropriate
support.
(e) Upon proper approval, the Change Order shall be entered in the City’s financial system and Finance will distribute as appropriate.
(f) Incidental or de minimis out of pocket costs may not be considered part of the purchase order amount, unless
specifically addressed in the contract.

7.6.6 Substitutions – No Purchase Order substitution shall be requested or accepted by City personnel without department manager approval. If it becomes necessary to substitute, verbal approval may be obtained from the department manager, which should be documented. Other necessary substitutions may require a written Change Order.

7.6.7 Cancellation of Purchase Order or Portion Thereof – When part of an issued Purchase Order must be canceled, changes should be made through purchasing in the City’s financial system cancelling either single line items or the entire purchase order.

Copies will be sent to vendor upon request.

7.6.8 Purchase Contract – A contract that procures Supplies Materials and Equipment. (See Article VI, Procurement of Supplies, Materials, and Equipment.)

7.6.9 Agreement for Public Construction Projects – A contract that procures services which directly result in the physical construction of a public improvement. (See Article VII, Public Construction Projects.)
245

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
10 7.6.10 Professional Services Agreements – A contract that procures professional, technical, and or/ clerical services which will not directly result in the physical construction of a public improvement. (See Article VIII, Selection of Professional Services Consultants and Contractors.)

7.6.11 General Services Agreements – A contract that procures services that typically do not require a high degree of professional certification or specialized expertise either with or without the furnishing of materials and that do not constitute a public works project. (See Article IX, Selection of General Services Consultants or Contractors.)

7.6.12 Information Technology Agreements – A contract that procures information technology related services or license agreements for use of technology. (See Article VI, Procurement of Supplies, Materials, and Equipment, Article VIII, Selection of Professional Services Consultants and Contractors and Article X, Selection of Other Purchasing Related Activities for Services, Items, Commodities and Unsolicited Proposals.)

7.6.13 Key Contracting Prerequisites – Contractors or vendors conducting business in the City or working on City property or in City rights-of-way must be properly licensed, insured, and otherwise comply with all lawful requirements such as obtaining a business license as required by the Finance Department and having appropriate insurance coverage as required by the Risk Manager.

The contractor or vendor must include the City of San Clemente and its officials, officers, employee, agents and volunteers as an “additional insured” on their insurance Policy and provide up-todate insurance certificates with required Policy endorsements.

Insurance requirement must be met before any work can
commence.

B. Methods of Procurement

1. Force Account, Negotiated Contract or by Purchase Order – procurement method used for public construction projects and regulated by the California Uniform Public Construction Cost Acting Act (“CUPCCAA”).

2. Micro-purchase (single bid, proposal or quote) – single bid, proposal or quote required for certain procurements amounts set by federal regulation or state law.

The informal, formal bidding/solicitation process should be sought if there is a 246

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
11 reasonable possibility of obtaining better prices commensurate with the time and effort expended.

3. Informal Purchase Process – an unsealed competitive offer using simpler and more efficient procurement methods for obtaining written bids, proposals or quotes allowed for certain procurements amounts. Formal bids or request for proposals should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended. Purchases and contracts shall not knowingly be staged or separated into smaller units or segments solely for the purpose of circumventing the formal or informal process as documented herein.

Informal bids shall be submitted to and opened by the City Manager or their designee.

4. Formal Purchase Process – Formal bid or request for proposals procedures for procurements shall be followed for public purchases as defined in this Policy and required by State or Federal law and may also be followed when Finance determines that formal procedures might best serve the public interest. Formal purchase procedures are further documented herein.

5. Exemptions to the Informal and Formal Purchase Process – Exemptions to the bidding and solicitation process must be approved by Finance or as defined in the San Clemente Municipal Code Chapter 3.40 and as documented in Article (XI)(A)(1) Exemptions to the Formal, Informal Bidding, and Solicitation Process herein.

C. Sealed Bid (Bid) vs. Request for Proposals (RFP) Process The purchasing process to be followed will be based on the various considerations, criteria, amount, and type of purchase. This section includes a summary of each type of Formal Purchase Process, considerations, criteria and comparison of the two processes.

The following table summarizes the sealed bid and request for proposal process.

Process Step Sealed Bids Requests for Proposals
Applicability Typically public works or
general services or goods
Typically professional services
Specifications Very specific as to performance
and design requirements
Allows for more flexibility;
vendor proposes one or more
options
247

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
12 Opening Public – all data available to
other bidders and public
Public – only names of proposers
are public; no pricing or other data
is made available until award
Evaluation Based strictly on meeting
specifications – no material
deviations accepted
Based on overall responsiveness
to proposal and criteria provided
in RFP for evaluation
Discussion Only to clarify question on
meeting technical specifications
with answer being published in
addenda
Questions to any or all proposing
firms to clarify items in proposal;
may include formal interviews
Changes Only minor technicalities may be
corrected
Negotiations may be conducted
with proposing firm(s) evaluated
as being most responsive to RFP
criteria
Award Lowest responsive and
responsible bidder
Best overall value proposal – not
necessarily lowest price
Considerations for using the competitive sealed bid process:
 The specifications for the good, service or public construction project to be purchased are explicitly clear and communicated for both buyer and seller.  The market has an adequate number of sellers capable of meeting the specifications to allow for competition.
 The sellers that make up the market are technically qualified and are willing to price competitively.
 Competitive bid process is required by applicable law.

Considerations for using the RFP process instead of a sealed bid:
 Oral or written discussions may be necessary with the responding firms regarding technical and price clarifications or scope of work requested.  Offers an opportunity to determine staffing or other technical qualifications of the provider to meet the needs of the City.
248

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
13  It is advantageous to allow an opportunity for responding firms to modify their offer prior to award.

Evaluating Criteria for Proposal Solicitation
 Comparative analysis of different technical products or solutions must be made.  Situations in which it is impossible to estimate costs with a high degree of certainty.  Situations in which price is not the only important variable; quality, schedule, and service may be variables of equal or greater importance.  Situations in which the buyer anticipates a need to make changes in some aspect of the purchase/contract where negotiations are foreseen before the contract can be finalized.  Typically, most types of professional services are purchased with this method.

Compare and Contrast:

Each method has its strengths and weaknesses. The ease of evaluating bids on price alone needs to be balanced against the risk that price alone may not be all that distinguishes one product or service from another. Often, other factors such as quality of the product or aftersales service can be equally or more important.

Evaluation of a competitive sealed bid is straightforward. The award is normally on the basis of price to the lowest responsive and responsible bidder. Bids that conform in all material respects to the requirements stated in the invitation to bid are responsive; bidders who have the capability to fully perform the contract requirements (necessary experience, technical knowledge, facilities, licenses, equipment, and credit required to perform) are considered responsible.

The RFP process allows more flexibility than the sealed bid process in the evaluation process.

The evaluation team first evaluates proposals for compliance to the specifications and requirements in the RFP and creates a list of those firms whose proposals meet mandatory requirements. Only the firms from this list will be further evaluated and considered for the award based on evaluation criteria specified in the RFP. Interviews and/or negotiations with the top-rated firm(s) may be conducted before final selection.

When it is not in the City’s best interest to acquire commodities or services through competitive bidding, a contract may be solicited using the Request For Proposal (RFP) method as permitted by state and federal law and if approved by Finance. Such a situation may arise for any number of reasons, including, but not limited to:
249

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
14  The City’s requirements are not well-defined;
 The City is interested in evaluating a range of offers so that it may take advantage of technical innovation and developments in the market place; and,  Factors such as availability, expertise, and quality override price as a criteria for award.

Addenda:

Addenda to specifications may be made in advance of response due dates for both the sealed bid and request for proposals process. The purpose of an addendum is to provide notice to all potential bidders/proposers that there have been changes or clarifications made to the terms of the solicitation.

Definitions:

1. Purchasing Cycle – The process used to purchase goods, services or public construction projects as described in this Policy.

2. Petty Cash – May be used for items under $100, purchased by an employee and reimbursed in accordance with the Finance Policies and Procedures.

3. Requisition – Informs Finance of procurement requirements and allows for department/division approval.

4. Purchase Order – A written contractual agreement for goods, services and public construction projects for an approved amount. These instruments have limited or incorporated terms and conditions as compared to a standard City written contract and are typically used independently for procurements with minimal risk with Finance approval.

5. Purchase Order Number – Assigned by the City’s financial system.

6. F.O.B. (Free on Board) Point –Without Finance approval, F.O.B. shall be “Destination” (San Clemente). With F.O.B. “Destination” the legal title to the material does not pass from the seller to the City until the carrier delivers the material at the City’s destination address, otherwise the City bears the risk of nondelivery, which should be avoided.

7. Blanket Purchase Order – Unencumbered Purchase Orders established by Finance with suppliers that are restricted by the annual service agreement. 250

PROCUREMENT POLICY AND PROCEDURE

PURCHASING CYCLE
15 8. Contract Purchase Order – An agreement made by Finance whereby the terms, conditions, pricing and special provisions are agreed to and applied within a preestablished time period.

9. Change Order – Changes made to any agreement, verbal or written, which will affect the agreement established by the supplier or service provider and requesting department.

10. Scope of Work – detailed written outline of the project, including timeline, budget, assigned tasks, project stakeholders, workflow strategies and exact description of what the contractor/consultant will be doing for the City.

11. Request for Proposal – the process and documentation used for soliciting proposals for goods and services.

12. Notice Inviting Bids – the process and documentation used for soliciting bids for goods, services and public construction.

13. Quote – Fixed price document that is time-sensitive due to fluctuations in the price of goods.

14. Sealed Bid – Formal procurement method where a city publicly solicits bids and a firm fixed-price contract (lump sum or unit price) is awarded to the lowest responsible bidder whose bid conforms with all material terms and conditions of the invitation for bids. The project offer is for a defined project scope, work schedule and timeline.

15. Responsible bidder – A bidder with the capability in all aspects to perform in full the contract requirements and who has the integrity and reliability which will assure good faith performance. The bid conforms in all material respects to the terms and conditions, specifications, and other requirements of the solicitation.

16. Proposal – Submission by the prospective bidder demonstrating how they will meet the objectives of the scope of work and the cost to accomplish.

17. Bidder – a participant in the initial stage of the procurement process by submitting a proposal or bid.

18. Bidder’s Security – A monetary guarantee in a form and amount approved by the City that secures the bidder’s intent to execute a contract with the City.

19. Performance Bond – A guarantee by a third party in form and amount approved by the City that secures the bidder’s intent to execute a contract with the City. 251

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
16 VI. PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT A. Policy

1. Procurement of Supplies, Materials and Equipment policies & procedures are established to provide a common understanding of the methods for securing the supplies, materials, and equipment needed for all City functions. These policies and procedures ensure all requests follow the Purchasing Ordinance, as well as, other legal requirements; and to provide a system to track that the supply, material, and equipment ordered, received, approved for payment and above all, to ensure that City purchasing is conducted in a business-like and ethical manner.

B. Definitions

1. Supplies, Materials and Equipment – any goods, supplies, plant, materials, chemicals and equipment of any kind, including but not limited to machinery, vehicles, parts, components, consumables and non-consumables. The following describe other types of purchases considered to be supplies, materials or equipment:

1.1 Rental & Lease of Equipment – The owner of the equipment allows the City to operate or otherwise make use of the equipment in exchange for periodic lease or rent payments. The owner of the equipment bears the risk of obsolescence and depreciation of the equipment.

1.2 Publications/Newsprint – Contracts to receive periodicals, magazines, trade journals, etc., either in print or electronic/digital subscriptions.

C. Procurement Methods – The following limits are provided as guidelines for the method of procurement:

1. Micro-Purchase – Solicitation is not required, but recommended, for procurements expected to be less than $10,000 or up to the micro-purchase threshold set by federal regulation. Informal or Formal Purchase Process should be assessed to determine if there is a reasonable possibility to obtain better prices commensurate with the time and effort expended. The Formal or Informal process is recommended but not required for micro-purchases. Finance has the authority to determine if the Formal or Informal procedures should be implemented.

1.1 The following criteria shall be considered before using the Micro-Purchase Process.
252

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
17 1.1.1 Determine dollar value of purchase is less than or equal to $10,000 including shipping, taxes, etc.

1.1.2 Evaluate if the formal or informal process will result in better pricing commensurate with the time and effort expended.

1.1.3 Obtain single bid/proposal/quote from vendor of choice.

1.1.4 Assess whether the informal or formal purchase process will offer savings to justify time and resources in comparison to the price. Past bid results and similar services can be utilized in this assessment and should be documented by the Department.

2. Informal Purchase Process – Formal competitive bids/proposals are not required for procurements expected to be less than or equal to $60,000. Formal competitive bids/proposals should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended. Purchases and contracts shall not knowingly be staged or separated into smaller units or segments solely for the purpose of circumventing the competitive formal or informal purchasing process requirements as defined in this Policy.

2.1 Bids or proposals will be solicited by the division designee or Finance using the following methods:

2.1.1 Determine dollar value of purchase is greater than $10,000 and less than or equal to $60,000 including shipping, taxes, etc.

2.1.2 Reasonable effort shall be made to obtain three (3) or more bids/proposals.

2.1.3 Bids/proposals may be solicited by written or oral means.

2.1.4 City staff conducting the Informal Purchase Process must inform suppliers that they are to offer a “last and final offer.” No negotiation or price matching can be conducted with any of the suppliers.

2.1.5 All recommended purchases made under the Informal Purchase Process are subject to Finance review and approval prior to award.

2.1.6 Finance retains the authority for source selection on all procurement and is authorized to make awards to the lowest responsible bidder. 253

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
18 2.1.7 All contracts made and/or bids/proposals/quotes received are open to public inspection for a period of at least one (1) year after the award.

3. Formal Purchase Process – Formal bid/proposal procedures shall be followed for all procurements in excess of $60,000, for all public purchases required by State or Federal law or when formal bid/proposal procedures best serve the public interest, as determined by the City Manager or designee. Finance shall evaluate departmental requests for specific equipment, materials, and supplies.

3.1 The following criteria shall be considered before using the Formal Purchase Process.

3.1.1 Determine dollar value of purchase is in excess of $60,000 including shipping, taxes, etc.

3.1.2 Availability of clear specifications.

3.1.3 Adequacy of number of sellers in the marketplace.

3.1.4 Market conditions would ensure adequate participation in the Formal Purchase Process.

3.1.5 Availability is sufficient to use the Formal Purchase Process.

If the above criteria warrant the use of the Formal Purchase Process, all analytical planning to determine specifications shall be completed by the requesting department before competitive bids/proposals are sought.

3.2 Bid Notice – The “Notice Inviting Bids” or “Request for Proposals” shall include a general description of the supplies, materials or equipment to be procured, and shall state:

3.2.1 Where bid/proposal forms and specifications may be secured.

3.2.2 Time, date, and place for the submission and opening of bids/proposals.

3.2.3 Whether a performance bond is required, and if so, the amount and form of bidder’s security.
254

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
19 3.2.4 At its discretion, the City reserves the right to reject any and all bids/proposals or waive any formality presented.

3.3 Published Notice – The “Notice Inviting Bids” or “Request for Proposals” should be published by the Requesting Department in the local newspaper or posted to the online bid management system, at least ten (10) days before date of bid/proposal opening.

3.4 Bidder’s Security – When Bidder’s Security is required, it will be announced in the public “Notice Inviting Bids” or “Request for Proposals” and the amount shall be determined at time of preparation.

3.4.1 Bidder’s Security shall be in the form of:
(a) Certified or cashier’s check made payable to the City of San Clemente. The City Clerk will hold the check until the formal award of the bid/proposal. Checks will be returned by the City Clerk to the unsuccessful bidders by certified mail, return receipt requested. Release of the check before the formal award of the bid/proposal will constitute a withdrawal of the bid/proposal by the supplier.
(b) Bidder’s bond in a form and amount acceptable to the City made payable to the City of San Clemente. A bid/proposal shall not be considered unless one of the forms of security mentioned accompanies the bid/proposal when required.

3.4.2 Bidders shall be entitled to return of bid security with the following EXCEPTION:
(a) A successful bidder shall forfeit their bid/proposal security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed.

3.4.3 The City may, upon refusal or failure of the successful bidder to execute the contract, award a contract to the next lowest bidder. In this case, the amount of the lowest bidder’s security shall be applied to the difference between the low bid/proposal and next successful bidder, including any costs incurred by the City, and any remainder may be refunded.
255

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
20 3.5 Performance and Payment Bonds – The City Council or City Manager or designee shall each have authority to waive or require performance or payment bonds before issuing a Notice Inviting Bids or Request for Proposals. The amount shall be set at a level deemed necessary to protect the best interest of the City.

3.6 Sealed Bids

3.6.1 Sealed bids shall be submitted electronically through the online bid management system or in a clearly identified sealed envelope to the City Clerk or designee in accordance with the bid/proposal instructions.

3.6.2 Bids shall be opened in public at the time and place stated in the public notice. In cases where bids are submitted and tabulated electronically, bid openings will be considered public as long as the individual bids are electronically accessible after the bids close.

3.6.3 The City Clerk, or their designee, is required to be present at the opening. All bids received shall be recorded.

3.6.4 All bids received shall be available for inspection during regular business hours for a period of 31 days after the bid opening date.

3.7 Rejection of Bids/Proposal – The City reserves the right to reject any and all bids/proposals, to accept or reject any one or more items of a bid/proposal, or to waive any irregularities or informalities in the bids/proposals or the procurement process. This process will be documented by staff after review of the bids/proposals.

3.8 Late Bids/Proposals – Any bid received after the time specified in the notice shall be returned pursuant to Government Code section 53068.

3.9 Tie Bids/Proposals –

3.9.1 If tie low bids/proposals are received, quality and service being equal, the contract shall be awarded to a local bidder; or

3.9.2 If the above condition is not applicable, the City may, at its discretion
256

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
21 3.9.3 accept either one or accept the lowest bid made by negotiation with the tie bidders; or

3.9.4 Award the bid to any one of the low tie bidders by public drawing.

3.10 Determining Lowest Responsive and Responsible Bidder – All valid responsible bids/proposals shall be considered in determining the lowest bid/proposal. Finance and the requesting division will take into consideration:

3.10.1 Price of supplies, material, and equipment.

3.10.2 Terms and conditions including delivery, discounts, local vendor preference, and all other conditions submitted in the bid.

3.10.3 The quality, suitability and efficiency of the item or service offered and its conformity with the specifications.

3.10.4 The reputation of the supplies, material and equipment, the service reputation of the seller and all information and data required to prove responsibility of the supplier.

3.10.5 The aggregate purchase cost including auxiliary equipment or services as part of the project scope including but not limited to warranties, maintenance, upgrades, etc.

If the lowest bidder has not contracted with the City before, proof of responsibility should be documented and verified prior to award.

3.11 Award of Bids/Proposals – Award of bid shall be to the lowest responsible bidder, except as otherwise provided herein. Contracts may be awarded when the formal bid process is followed and funds are available within the fiscal year budget.

3.11.1 If the bid amount exceeds the budgeted amount, Finance shall make a recommendation of award to the City Manager or designee for approval. If the contract amount is within the purchasing authority the City Manager or designee may approve the award or at their discretion or refer the item to the City Council for action.

4. Exemptions to the Informal and Formal Purchasing Process Exemptions to the bidding/proposal process are documented in Article (XI)(A)(1) herein and defined 257

PROCUREMENT POLICY AND PROCEDURE

PROCUREMENT OF SUPPLIES, MATERIALS AND EQUIPMENT
22 in the San Clemente Municipal Code Chapter 3.40. All Exemptions must be submitted to Finance for approval prior to award.

5. Procurement of Fleet –Fleet replacements are presented to Council within the budget for the estimated cost, type and quantity of vehicles requiring replacement thereby authorizing staff to bid and award vehicles purchases within those levels.

The City Manager or designee shall have the authority to purchase vehicles up to $60,000 above the estimated replacement cost from available fleet replacement funds due to changing cost, availability, and state regulations related to vehicles. If the amount exceeds this threshold, an Agenda Report will be prepared to seek City Council approval.

6. Approval and Award of Contract — Authority for approval and award of supplies, materials, equipment will be:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager $25,000.01 to $60,000
City Council $60,000.01 and over

258

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
23 VII. PUBLIC CONSTRUCTION PROJECTS
A. Policy

1. Public Construction Projects procurement policies and procedures are established to provide a common understanding of the procurement methods for Public Construction Projects; to ensure that all related procurements are made in accordance with the Purchasing Ordinance as well as other legal requirements; and to provide a system to track that supplies, materials, equipment or services for Public Projects have been ordered, received, approved for payment and above all, to ensure that City purchasing is conducted in a business-like and ethical manner.

B. Purchasing Cycle

1. Methods of Procurement - The method chosen will be determined by the dollar amount of the purchase or contract as identified in the Public Contract Code and Chapter 3.40 of the San Clemente Municipal Code. Methods available are:

1.1.1 Force Account

1.1.2 Negotiated Contract

1.1.3 Contract following competitive bid

1.1.4 Purchase Order

2. Authorization of Purchases - Each requisition for consultant services or construction contracts must be authorized by a Department Head, division manager or designee. Finance will maintain a current authorization list and update it on an as-needed basis. The list will be kept on file in Finance. It is the division manager and department head’s responsibility to notify Finance of any changes or temporary assignment of authorization.

3. Bid Process for Public Construction Projects - The San Clemente Municipal Code Chapter 3.40 incorporates the California Uniform Public Construction Cost Accounting Act (“CUPCCAA”) Procedures as set forth in Public Contract Code sections 22030-22045. The Act establishes bid procedures for “Public Projects.” This section shall be superseded by any amendments made to CUPCCAA or other applicable law.
259

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
24 Project Cost Procurement Process Public Contract
Code Section
$5,001- $60,000 1. Force Account

2. Negotiated Contract or
Purchase Order
PCC 22032
>$60,000-$200,000 Informal bidding PCC 22034
>$200,000 Formal bidding PCC 22037

3.1 The City provides for the construction of Public Projects for amounts of $60,000 or less through the use of City employees, by negotiated contract, or by purchase order.

3.1.1 Projects in excess of $5,000 and equal to $60,000 or less, reasonable efforts shall be made to solicit from three (3) qualified contractors and let to contract by informal procedures set forth in Public Contract Code Section 22034. Terms may be negotiated and the project may be awarded to the lowest responsible bidder.

3.2 Public Projects for amounts in excess of $60,000 and less than $200,000 may be awarded by following the “Informal Bid Procedures” contained in Public Contract Code Section 22034 or at the discretion of the City Engineer, Department Head or designee, the “Formal Bid Procedures” contained in Public Contract Code Section 22037.

3.3 Public Projects for amounts in excess of $200,000 shall be contracted by use of the “Formal Bid Procedures” contained in Public Contract Code Section 22037.

3.4 Public construction contracts shall be issued in accordance with the provisions of the Public Contracts Code Sections 22000 - 22045, otherwise known as CUPCCAA. The provisions of CUPCCAA relative to bidding procedures shall supersede the individual procedures contained in this Purchasing Policy and City Municipal Code. Amendments or revisions to any state code sections affecting this Policy and resulting in procedure changes may be directly incorporated into this Policy when enacted by the 260

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
25 California Legislature without further action of the City Council or City Manager.

4. Change Orders for Construction Projects - Change Orders for construction projects that were awarded by the City Council can be executed by the City Engineer, Department Head, City Manager or designee.

4.1 Change Orders in the aggregate cannot exceed the contingency amount for the project as approved by the City Council.

4.2 City Council approval is required on Change Orders exceeding the total contingency amount of the project.

4.3 Change Orders in the aggregate cannot exceed 19% of the contract price nor constitute a cardinal change to the contract.

C. Definitions

1. Public Construction Projects – Public construction pertain to the construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind, including but not limited to: demolitions, and the construction and installation of drainage systems, lighting and signaling systems, sewer and water systems, and park and recreational facilities. Service contracts encompass all contracts for services either with or without the furnishing of materials. Maintenance required to preserve a public improvement is not considered a public construction project.

2. Public Project - Any of the following constitute a Public Project as defined in Public Contract Code Section 22002: Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. Painting or repainting of any publicly owned, leased or operated facility. In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants and electrical transmission lines of 230,000 volts or higher. Applicable law regarding what constitutes a public project shall automatically supersede this definition.

3. Maintenance Work - Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes, minor repainting, resurfacing of streets and highways at less than one inch; landscape maintenance, including mowing, watering, trimming, pruning, planting, and servicing of irrigation and sprinkler systems; work performed to keep, 261

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
26 operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher. Applicable law regarding what constitutes maintenance shall automatically supersede this definition.

4. Facility – Any plant, building, structure, ground facility, and utility system, subject to the limitations defined under maintenance work, real property, streets and highways or other public work improvement.

5. Force Account – Public construction projects performed by using internal City resources, including, but not limited to, labor, equipment, materials, supplies and subcontracts of the City.

D. Procedure

1. Purchasing Documentation – Every purchase for supplies, materials, equipment, or services for a public construction project or Public Project will be documented with records and written statements of the kind and in the detail necessary to show that consideration was given to the factors pertinent to good buying and applicable legal requirements. These include such items as authorization, quality, service, and price. Public Projects are required to be awarded to the lowest responsive and responsible bidder. The basis for the selection of the source for the final award must be clearly documented. All documents will be kept for a period of three years before destruction.

2. Bid Procedures for Public Projects - Professional Services for Public Projects are obtained in accordance with the Public Contract Code by the following methods:

2.1 Projects Estimated at $60,000 or Less. Reasonable efforts shall be made to solicit and obtain proposals from three (3) qualified firms for Public Projects estimated at $60,000 or less. Solicitation may be done by telephone, email, Request for Quotation, Request for Proposal or Notice Inviting Bids. Terms may be negotiated and the project must be awarded to the lowest responsible bidder.

2.2 Projects Estimated in Excess of $60,000 and less than $200,000. The City is required to maintain a list of qualified contractors that are identified according to the categories of work which they perform. When the City desires to contract a public improvement costing in excess of $60,000 and less than $200,000, the City is required to issue a notice inviting bids to those contractors whose names appear on the list for the category of work being bid. This notice shall be sent not less than 10 calendar days before the 262

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
27 bid due date. The notice shall describe the project in general terms, how proposed bidders obtain more detailed information about the project, and the time and place for submission of bids. Responsible local contractors shall be included on such list unless they have indicated to the City that they do not wish to be on such list.

2.3 Projects in excess of $200,000. When the City desires to construct a public improvement costing in excess of $200,000, the City shall circulate a Notice Inviting Formal Bids that describes the project and states the time and place for receiving and opening sealed bids. The notice is to be published at least 10 calendar days before the date for opening the bids in the City’s newspaper of general circulation. Notices are required to be published twice with at least five calendar days between publications. The notice shall also be sent to all construction trade journals referenced in the Public Contract Code section 22037.

2.4 Award or Rejection of Bids. After opening the bids, the division/department may recommend that City Council award the Contract to the lowest responsible bidder, reject all bids and either abandon the project or reject all bids and re-advertise the project (if permitted by applicable law) or by passage of a resolution of a 4/5th vote of the City Council, declare that the project be performed by force account.

2.5 Exemptions to the Procurement Process - Chapter 3.40.040 of the San Clemente Municipal Code has exemptions for professional and other contractual services that are in their nature unique or other service for which by law another officer or body is specifically charged with obtaining. These exemptions are further documented in Article (XI), Emergency Purchases & Contracting and Article (XII) herein. Exemptions to the procurement process are limited by the Public Contracts Code Sections 1100-22355.

2.6 Award of Public Projects - Projects that are bid according to the established bid procedures can be awarded by:

Division Manager Up to $10,000
Department Heads $10,000.01 to $25,000
City Manager $25,000.01 to $60,000
City Council $60,000.01 and above
263

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
28 3. Bidder’s Security – A Bidder’s Security shall be required for bids submitted on all Public Project contracts greater than $10,000. When bidder’s security is required, it will be announced in the public Notice Inviting Bids or Request for Proposals and the amount shall be equal to at least 10% of the bid amount.

3.1 Bidder’s Security shall be in the form of:

3.1.1 Certified or cashier’s check made payable to the City of San Clemente. The City will hold the check until the formal award of the bid. Checks will be returned by the City to the unsuccessful bidders by certified mail, return receipt requested. Release of the check before the formal award of the bid will constitute a withdrawal of the bid by the bidder.

3.1.2 Bidder’s bond made payable to the City of San Clemente. A bid shall not be considered unless one of the forms of security mentioned accompanies the bid when required.

3.2 Bidders shall be entitled to return of bid security with the following EXCEPTION:

3.2.1 A successful bidder shall forfeit their bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed.

3.3 The City may, upon refusal or failure of the successful bidder to execute the contract, award contract to the next lowest bidder. In this case, the amount of the lowest bidder’s security shall be applied to the difference between the low bid and next successful bidder, including any cost incurred by the City, any remainder shall be refunded.

4. Payment Bonds – A payment bond shall be required for all Public Projects in excess of $25,000. The bond shall be executed by an admitted surety insurer, and the amount shall be not less than 100% of the total amount payable pursuant to the contract. The form and amount of the bond shall be described in the Notice Inviting Bids.

5. Performance Bonds - The City Council, City Manager or Public Works Director/City Engineer shall each have authority to waive or require a performance bond before issuing a Notice Inviting Bids to the extent that the law and award authority allows. The amount shall be set at a level deemed necessary to protect the 264

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
29 best interests of the City. The form and amount of the bond shall be described in the Notice Inviting Bids.

6. Sealed Bid Procedure

6.1 Sealed bids shall be submitted to the City Clerk or designee and shall be identified as bids on the envelope or receive electronically through the online bid management system, when allowed.

6.2 Bids shall be opened in public at the time and place stated in the public notice. In cases where bids are submitted and tabulated electronically, bid openings will be considered public as long as the individual bids are electronically accessible after the bids close.

6.3 The City Engineer, the City Clerk, or their designee, are required to be present at the opening and shall record all bids received.

6.4 All bids received shall be available for inspection during regular business hours in the office of the City Engineer for a period of 31 days after the bid opening.

7. Rejection of Bids - The City reserves the right to reject any and all bids, to accept or reject any one or more items of a bid, or to waive any irregularities or informalities in the bids or the bidding process.

8. Late Bids - Any bid received after the time specified in the notice shall be returned unopened pursuant to Section 53068 of the Government Code.

9. Tie Bids

9.1 If tie low bids are received, quality and service being equal, the contract shall be awarded to a local bidder; or

9.2 If the above condition (1) is not applicable, the City may accept either one or accept the lowest bid made by negotiation with the tie bidders; or

9.3 Award the bid to any one of the low tie bidders by public drawing.

10. Agreements for Construction of Public Projects

10.1 The template Agreement for Construction of Public Projects is contained within the City’s word processing system and shall be used for Public Projects. The template Agreement for Construction of Public Projects may 265

PROCUREMENT POLICIES & PROCEDURES

PUBLIC CONSTRUCTION PROJECTS
30 also be used, as appropriate, for all other projects that qualify as a “public construction” project as it is defined in Labor Code Section 1720 and California Code of Regulations, Title 8, Section 16000.

10.2 The template Short Form Construction Contract is contained within the City’s word processing system and may be used for Public Projects that did not go through the formal bidding process if appropriate. This template may also be used for other projects that qualify as a “public construction” project as it is defined in Labor Code Section 1720 and California Code of Regulations, Title 8, Section 16000 if appropriate.

10.3 When projects are receiving proceeds that are derived from federal funding, certain federally required contractual provisions are required to be included in the agreements. City staff should consult with legal counsel to ensure that the necessary provisions are included in any projects that are federally funded.
266

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 31 VIII. SELECTION OF PROFESSIONAL SERVICES CONSULTANTS AND

CONTRACTORS
A. Policy

1. Policies & Procedures for Selection of Professional Service Consultants and Contractors is established to provide a common understanding of the methods for selection of professional services consultants or contractors for the design, review, advisory, field engineering, environmental, personnel and related services in connection with public improvement projects, development processing and governmental operations of the City; and to ensure that the City will obtain the most qualified and competent professional services consultant or contractor at a fair and reasonable cost consistent with quality facilities and/or services.

2. Selection of Professional Services Consultants and Contractor — Professional consultants and contractors must be individually selected for a specific project with due regard for the experience of the consultant or contractor, special knowledge of the subject matter, ability to perform the services in the time allowed, record of success on similar work, and ability to participate in discussions and presentations related to the project.

3. Professional consultant and contractor services differ from other services as they do not readily fall within the competitive bidding process. Professional consultants/contractors should be individually selected through a qualificationsbased selection process for a specific project or service based on demonstrated competence and qualifications for types of services to be performed and with the objective of selecting the most qualified consultant/contractor at a fair, reasonable and verifiable appropriate cost.

B. Definitions

1. Professional Consultant/Contractor Services – Services provided by licensed and/or technically trained professionals with or without the furnishing of materials, including but not limited to:

1.1 Personnel or employee-related services – Services that provide benefit or assistance directly to employees, including services for human resources, temporary employment, supplemental staffing, etc.
267

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 32 1.2 Consultant Services – Advisory services that provide a recommended course of action or personal expertise/advice, and provide an end product transmitting or that reports information. Consultant services are required in order to obtain professional technical advice or expertise that will supplement departmental expertise or advice or where an independent opinion or audit is required such as financial and economic feasibility study.

All consultant service contracts shall contain a provision that prohibits “follow-on” projects where prohibited by law that prevent the consultant from performing work related to any recommendations formulated as a result of the consulting work. Examples of these services can include:
community planning, accounting, legal, medical, auditing, and related services.

1.3 Revenue Generating Contracts – A contract for contractor-provided services in which the City does not pay a fee, but instead receives a portion of the revenues generated from the services such as the operation of a City facility, concessions, etc.

1.4 Information Technology Services (IT) – rendered services that may or may not include: software or hardware installation, implementation, integration, creation, development, customization, optimization, design, project management and other advanced technical services in support of the City’s Information Technology programs.

1.5 Software and Hardware Maintenance and Support – Software and hardware maintenance includes ongoing support, troubleshooting, problem resolution, functional improvements, security updates, and other optimizations to systems and is not included with the initial purchase price of the software/hardware. Software/Hardware maintenance and support service includes person-to-person communications regardless of the medium used to communicate: telephone support, on-line technical support, customized support, and/or technical expertise, as well as electronic software delivery and equipment repair/replacement.

Typically upgrades to existing software platforms or providers can qualify for a sole source or cooperative purchasing exemption. The City Manager or designee may approve the upgrade to the applicable award authorization level.

Any actions above the City Manager approval level requires an Agenda Report presented directly to City Council. The award of the contract, with any bargaining, would be identified and disclosed in the Agenda Report 268

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 33 process.

1.6 Architect-Engineer (“A/E”) Plan Review/Inspection Consultant Services – Services including but not limited to civil, mechanical, structural, electrical, traffic engineering and certified plan review and inspection. Services may include but are not necessarily limited to:
investigations, report preparation, cost estimating, shop drawing review, CEQA documentation preparation, regulatory permit application and acquisition, geological and soils analysis, biology, material testing and inspection, real estate appraisal, and property acquisition services. This in includes studies addressing engineering, architecture, landscape architecture, facilities management, and environmental issues.

2. For City procurement purposes, Professional service contracts do not include contracts for Public Construction.

C. Procedure

1. List of Qualified Consultants or Contractors — Department Heads are authorized to maintain a file of names and brochures of the various technical consultants and contractors that expressed a general interest in doing work for the City of San Clemente, and to use such file for the purpose of soliciting proposals from these consultants and contractors. The Department Head has discretion to select and limit the number of firms who shall be maintained in the file and who shall receive Requests for Proposals from the City. Department Head shall seek out local professional consultants and contractors to maintain in their file.

2. Micro-Purchase Selection Process for Projects $10,000 or Less, as set by federal regulation – Staff may request a proposal from a qualified firm of their choice and negotiate a contract. The proposals may be verbal or written. Finance has the authority to determine if solicitation of additional proposals will better serve the City’s best interest.

3. Selection Process for Projects in Excess of $10,000 and less than or equal to $60,000 — Reasonable efforts shall be made to obtain three (3) or more proposals from qualified firms, but staff need not interview more than two (2) consultants or contractors. The solicitation and proposals may be verbal or written. Finance has the authority to determine if formal solicitation of proposals will better serve the City’s best interest.
269

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 34 4. Selection Process for Projects in Excess of $60,000 — Reasonable efforts shall be made to request proposals in writing from at least five (5) consultants or contractors by the City’s Department Head or designee and approved by the City Manager. Staff will make every effort to interview at least three (3) consultants or contractors (which may be limited by number of proposals received). Contract award, if made, shall be made to the consultant or contractor whose price is fair and reasonable and who serves the City’s best interests taking into account the evaluation criteria set forth in the Request for Proposals.

5. Criteria for Selection — If applicable, the following factors shall be considered and evaluated in selecting a professional services consultant or contractor for a particular study or project using the Request for Proposal Method and detailed therein:

5.1 Cost of project or service.

5.2 Educational background.

5.3 Previous experience.

5.4 Demonstrated record of success on work previously performed for the City or similar work performed for others.

5.5 Project lead.

5.6 Staff to perform work within the specified time.

5.7 Methodology proposed to accomplish the work.

5.8 Ability to make effective public presentations of the report and/or design required.

5.9 Ability to work effectively with City staff, other public agencies and related parties as directed during the design, study, or other services.

5.10 Pertinent new ideas that may be presented during the course of the selection process.

5.11 Adequate knowledge of local conditions.

5.12 Availability, experience and knowledge of any subcontractors hired to complete the job or study.
270

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 35 5.13 Additional work performed by the contractor that may have a direct and substantial physical relationship or conflict to the proposed project.

5.14 Previous history of completing projects within budget and design estimates.

5.15 Ability to furnish adequate and effective construction supervision.

5.16 Consideration for consultants or contractors currently working with a major developer in the City for work within or adjacent to the major development project.

5.17 Whether the consultant or contractor is local.

6. Interview Process for Projects — The interview and selection process shall be conducted by the Department Head or designee responsible for the project. If the contract exceeds $60,000, the interview and selection process shall be conducted by at least two (2) individuals.

7. Consultant or Contractor Fees — After a consultant or contractor is selected, but before a recommendation is made, the fee for the professional services shall be negotiated and it must be fair and reasonable. If a mutually satisfactory fee cannot be agreed upon, negotiations shall be terminated and another consultant or contractor shall be selected.

8. Contract — The award of a contract shall be made only when sufficient funds are appropriated in the departmental and/or project account. Exemptions are granted for those professional services that relate to the processing of development plans funded through a developer deposit.

9. Supplemental or Contingency Award on Contracts — The City Manager has the authority to approve supplemental amounts as a result of changes to a project’s scope up to an aggregate of $60,000 provided that such changes do not violate applicable law or result in a cardinal change to the contract or an increase of more than 19% to the contract amount. Changes greater than $60,000 or outside of the City Council approved contingency must be approved by City Council. The agenda report must contain verbiage explaining what types of duties or situations might require supplemental funding and separate action must be taken on the contract award and the supplemental award. If a supplement will result in a cardinal change to the contract or increase the contract amount more than 19%, it must be treated as a separate contract.
271

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF PROFESSIONAL SERVICE CONSULTANTS AND CONTRACTORS 36 10. Professional Consultant/Contractor Services Agreement (PCSA) – PCSAs are required for all services as prescribed herein. The template Professional Services Consultant/Contractor Agreement is contained within the City’s word processing system and shall be used for all contracts that pertain to professional services.

10.1 When agreements are being funded, in whole or in part, through federal resources, certain federally required contractual provisions are required to be included in the agreements. City staff should consult with legal counsel to ensure that the necessary federal provisions are included in these agreements.

11. Exemptions to the Informal and Formal Bidding Process – Procurement may be exempt from the bidding process (Informal/Formal) as defined in Article (XI) and Article (XII) herein.

12. Approval and Award of Contract — Approval and award of PCSAs will be:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager Over $25,000.01 to $60,000
City Council $60,000.01 and above
272

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 37 IX. SELECTION OF GENERAL SERVICES CONSULTANTS AND CONTRACTORS A. Policy

1. General Service Consultants and Contractors policies and procedures are established to provide a common understanding of the methods for selection of general services consultants or contractors; and to ensure that the City will obtain the most qualified and competent general services consultant or contractor at a reasonable cost consistent with quality facilities and/or services.

2. Selection of General Services Consultants and Contractor — General services consultants and contractors must be individually selected for a specific project with due regard for the experience of the consultant or contractor, special knowledge of the subject matter, ability to perform the services in the time allowed, record of success performing similar services and price.

B. Definitions

1. General Services Contractor/Consultant – A general services contractor or consultant generally consists of a contractor or consultant performing a service that typically does not require a high degree of professional certification or specialized expertise either with or without the furnishing of materials. Included in the definition of service contracts covered in this section are the following:

2. General services can include, but are not limited to, the following fields:
a. Maintenance Services, as defined in Article IX(B)(3) herein b. Security Services
c. Janitorial Services
d. Fleet Maintenance
e. Uniform Laundry Services

3. Maintenance Services — Maintenance Services can include, but are not limited to, the following:
a. Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes b. Minor repainting.
c. Resurfacing of streets and highways at less than one inch. d. Landscape maintenance, including mowing, watering, tree and other plant trimming, pruning, minor planting, minor replacement of plants, and servicing 273

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 38 of irrigation and sprinkler systems.

C. Procedure

1. List of Qualified Consultants or Contractors — The Department Heads are authorized to maintain a file of names and brochures of the various general services consultants and contractors who have expressed a general interest in doing work for the City of San Clemente, and to use such file for the purpose of soliciting proposals from these consultants and contractors. The Department Head has the discretion to select and limit the number of firms who shall be maintained in the file and who shall receive Requests for Proposals from the City. Department Heads shall seek out local professional consultants and contractors to maintain in their file.

2. Micro-Purchase Selection Process for Projects $10,000 or Less, as set by federal regulation – Staff may request a proposal from a qualified firm of their choice and negotiate a contract. The proposals may be verbal or written. Finance has the authority to determine if solicitation of additional proposals will better serve the City’s best interest.

3. Selection Process for Projects in Excess of $10,000 and less than or equal to $60,000— Reasonable efforts shall be made to obtain three (3) or more proposals from qualified firms, but staff need not interview more than two (2) consultants or contractors. The solicitation and proposals may be verbal or written. Finance has the authority to determine if formal solicitation of written proposals will better serve the City’s best interest.

4. Selection Process for Projects in Excess of $60,000 — Reasonable efforts shall be made to request proposals from at least five (5) consultants or contractors by the City’s Department Head or designee and approved by the City Manager. Staff will make every effort to interview at least three (3) consultants or contractors, which may be limited by number of proposals received. Contract award, if made, shall be made to the consultant or contractor who serves the City’s best interests taking into account the evaluation criteria set forth in the Request for Proposals.

5. Criteria for Selection — If applicable, the following factors may be considered and evaluated in selecting a consultant or contractor to perform general services using the Request for Proposal method:

5.1 Price.

5.2 Educational background.
274

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 39 5.3 Previous experience.

5.4 Demonstrated record of success on work previously performed for the City or similar work performed for others.

5.5 Project lead.

5.6 Staff to perform work within the specified time.

5.7 Methodology proposed to accomplish the work.

5.8 Ability to work effectively with City staff, other public agencies and related parties as directed during the course of the services.

5.9 Pertinent new ideas which may be presented during the course of the selection process.

5.10 Adequate knowledge of local conditions.

5.11 Availability, experience, and knowledge of any subcontractors hired to complete the services.

5.12 Additional work performed by the contractor which may have a direct and substantial physical relationship or conflict to the proposed services.

5.13 Previous history of completing services within budget.

6. Interview Process — The interview, if any, and selection process shall be conducted by the Department Head or designee responsible for the project or services. If the contract exceeds $60,000, the interview, if any, and selection process shall be conducted by at least two individuals.

7. Consultant or Contractor Fees — After a consultant or contractor is selected through the Request for Proposals process, but before a recommendation is made, the fee for the services may be negotiated in the City’s sole discretion. If a mutually satisfactory agreement cannot be agreed upon, negotiations shall be terminated and negotiations with the next highest ranked consultant or contractor shall be conducted until a consultant or contractor is selected or the City chooses to reject all proposals.

8. Contract — The award of a contract shall be made only when sufficient funds are appropriated in the departmental and/or project account and appropriate findings under the California Environmental Quality Act are made and documented. 275

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF GENERAL SERVICE CONSULTANTS AND CONTRACTORS 40 9. Supplemental or Contingency Award of Contracts — The City Manager has the authority to approve annual supplemental amounts up to $60,000 in the aggregate.

If the annual supplemental amounts make the contract total greater than $60,000, City Council must approve the supplemental amounts or a separate contract may be entered into. The agenda report must contain verbiage explaining what types of duties or situations might require supplemental funding and separate action must be taken on the contract award and the supplemental award.

10. General Consultant and Contractors Services Agreement (GCSA) – GCSAs are required for all services as prescribed herein. The templates for General Consultant and Contractor Service Agreements are contained within the City’s word processing system and shall be used to draft all City contracts that pertain to general services.

10.1 When agreements are being funded, in whole or in part, with proceeds that are derived from federal funding, certain federally required contractual provisions are required to be included in the agreements. City staff should consult with legal counsel to ensure that the necessary provisions are included in any agreements that are federally funded.

11. Exemptions to the Informal and Formal Bidding Process – Procurement may be exempt from the bidding process (Informal/Formal) as defined in Article (XI) and Article (XII) herein.

12. Approval and Award of Contract — Approval and award of GCSAs will be:

Division Manager Up to $10,000
Department Head $10,000.01 to $25,000
City Manager Over $25,000.01 to $60,000
City Council $60,000.01 and over
276

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
41 X. SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
A. Policy

1. Other Purchasing Related Activities for items, services, licenses, commodities, and unsolicited proposals are established to provide a common understanding of the methods for selection of other purchasing related activities; and to ensure that the City will obtain the most qualified and competent consultant or contractor at a reasonable cost consistent with quality facilities and/or services.

B. Definitions

1. Other Purchasing Related Activities – any service, commodity, tangible, or intangible property purchased by the City and not addressed in any other section in the Purchasing Policy. These types of purchases may or may not be required to use the City’s standard contract templates. The following describes purchases considered to be other purchasing related activities including but not limited to:

1.1 Software/Licenses (Retail – Perpetual and Subscription) – Contracts for proprietary software licenses where the software publisher grants the use of the software under the end-user license contract (EULA), but ownership of the software remains with the software publisher. These types of purchases typically include terms that define the uses of the software and number of users allowed.

1.1.1 Perpetual License – The right to use a software program indefinitely with payment of a single fee. License may or may not include a limited Software Maintenance period and/or the option to purchase ongoing Software Maintenance at the time of purchase or at a later date.

1.1.2 Subscription License – The right to use a software as designed without customization for a determined fee, which includes general technical support, updates and upgrades to new versions or releases of the software (e.g., Software as a Service (SaaS) or Commercial Off the Shelf (COTS) software) irrespective of where the software is hosted. It may also include other no charge support that is included 277

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
42 in the purchase price of the product in the commercial marketplace.

No charge support includes items such as user blogs, discussion forums, on-line help libraries and FAQs (Frequently Asked Questions), hosted chat rooms, and limited telephone, email and/or web-based general technical support for users’ self-diagnostics.

1.2 Subscriptions/Databases/Cloud Computing – Contracts for access to online information, databases or remote servers to be used to enhance or support a City program, project or technology initiative. Contracts of this type involve no on-site visits or work by a vendor and are limited to the digital exchange of information for a predetermined fee.

1.3 Software Maintenance – Software maintenance as a product includes the publishing of bug/defect fixes via patches and updates/upgrades in function and technology to maintain the operability and usability of the software product. It may also include other no charge support that is included in the purchase price of the product in the commercial marketplace. No charge support includes items such as user blogs, discussion forums, on-line help libraries and FAQs (Frequently Asked Questions), hosted chat rooms, and limited telephone, email and/or web-based general technical support for users’ self-diagnostics. Software Maintenance as a product is billed at the time of purchase or on an annual basis.

1.4 Commodities- purchase of raw materials or primary products in current or future markets.

1.5 Wholesale Energy – Purchase of energy or related using spot or futures contracts.

1.6 Unsolicited Proposals – Unsolicited proposals present an opportunity for companies to bring forward innovation and solutions to the City. The unsolicited proposal process is subject to competitive solicitation at the discretion of the Finance Department.

C. Determination of Purchasing Procedure – Departments will coordinate with Finance to determine the best method for procurement of other purchasing related activities. These methods may be used in combination with various sections of this Policy or may require other facets to facilitate at the discretion of the Finance Department in coordination with 278

PROCUREMENT POLICIES & PROCEDURES

SELECTION OF OTHER PURCHASING RELATED ACTIVITIES FOR

SERVICES, ITEMS, LICENSES, COMMODITIES AND UNSOLICITED

PROPOSALS
43 the City Attorney. It is the intent of this section to ensure all purchasing is done in a competitive and ethical manner while meeting unique procurement needs. 279

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 44 XI. EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS A. Policy

1. Competitive bids/proposals should be sought if there is a reasonable possibility of obtaining better prices commensurate with the time and effort expended. This Policy is further limited by local, state, and federal law and is not be used for the sole purpose of circumventing purchasing procedures. Exemptions for public construction is limited as defined by the Public Construction Code. The purpose of this section is to use these Exemptions for the benefit of the City and public interest in an ethical and legal manner. Exemptions, as noted in the following listing, shall be authorized by Finance and subject to Department Head, City Manager, or City Council consent in accordance with approval thresholds as documented in the Purchasing Policy. Procurement may be exempt from the bidding/request for proposal process (Informal/Formal) under the following conditions:

1.1 Bona fide “Emergency” as defined in the San Clemente Municipal Code Section 3.40.070 and Article (XII) herein.

1.2 When the City Council determines by minute action or resolution, that compliance with the bidding requirements and procedures is inefficient, impractical, or not in the best interest of the City, based on specifically identified conditions and supported by substantial evidence in the record.

1.3 Procurement does not exceed the micro-purchase threshold as set by federal regulation.

1.4 When participating in a cooperative purchasing agreement or program, or using a competitively awarded agreement of another local, state, or federal government agency or joint powers authority made up of government agencies to obtain the same supplies, equipment or services at the same or lower prices (commonly referred to as “piggybacking”) that utilized competitive bidding procedures that accomplish the purpose and intent of competitive bidding requirements under City Policy and state law and that are not inconsistent or in conflict with any City Policy or applicable law. In deciding whether to utilize a cooperative purchase agreement, the following considerations must be addressed:

1.4.1 Finance review and approval is required prior to award. 280

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 45 1.4.2 The extent to which the bid process or contract followed applicable bidding procedures guidelines outlined within this Policy should be considered.

1.4.3 The City is not required to have joined a public agency in a cooperative purchase to participate in the cooperative agreement or piggyback contract.
(a) The City has the authority to join with other public agencies in cooperative purchasing plans or programs including, but not limited to, the California Department of General
Services (CADGS), the California Multiple Award Schedule (CMAS), the U.S. General Services Administration
(“GSA”) Multiple Award Schedule program, the National
Association of Counties (NACo), National Association of State Procurement Officials (NASPO), and the California Network and Telecommunications (CALNET) Program.
(b) Sourcewell, OMNIA Partners, U.S. Communities
Government Purchasing Alliance or similar arrangements or programs as determined by the purchasing agent may also be authorized if in the City’s best interest. These generally require the City to enter into a separate contract with the vendor that follows approval thresholds set forth in this Policy.

1.5 Services and/or supplies obtained from or through agreement with any governmental, public or quasi-public entity.

1.6 Procurements funded by grants, donations or gifts when the special conditions attached to the grants, donations or gifts require the procurement of particular goods and/services.

1.7 Clearly established “Sole Source” suppliers or service providers, i.e., a single supplier who is the sole distributor, manufacturer or provider of a product or service such that there is not an acceptable substitute within a specific geographical area, i.e., Southern California or California. This exclusiveness must be verified in writing by the manufacturer or company, with confirmation on file with Finance. Examples of acceptable sole source procurement include:
281

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 46 a. Only one known source exists (City’s preference for a company, brand or manufacturer does not justify sole source).
b. Good or service is unique or special in nature.
c. No other reasonable alternative source exists that meets the City’s requirements.
d. Compatibility of good or service (e.g., department requires a specific piece of equipment, software or replacement part to be compatible with an existing equipment system).
e. Only one source meets the business needs of the City (e.g., compatibility, unique feature to meet City’s business need, etc.). f. Limited or proprietary systems (i.e., additional licenses, updates, specialized replacement parts, etc.);

1.8 The proposed professional service provider has unique familiarity with the project, subject area, or possesses other attributes that make the provider uniquely qualified to provide the services and utilizing that service provider will not violate Government Code section 1090 or other applicable law.

1.9 The costs involved in complying with the Policy greatly exceed the potential savings that the Policy might create.

1.10 The good, service, or project is of a critical nature and, due to time constraints, compliance with the Policy requirements would jeopardize timely completion.

1.11 Procurement of public utility services.

1.12 Procurement of energy, various components of energy, or derivatives in a deregulated energy market.

1.13 When solicitation jeopardizes the safety of the City, including, but not limited to, cyber security or security programs.

1.14 When purchasing from, joining in a cooperative purchase with or selling to any other governmental agency or joint powers authority when the action is beneficial to the interests of the City of San Clemente. 282

PROCUREMENT POLICIES & PROCEDURES

EXEMPTIONS TO THE FORMAL & INFORMAL SOLICITATION PROCESS 47 1.15 Credit card interchange fees are considered a cost of transacting and will be recovered through fee adjustments or convenience fee based on the transaction amount. An informal process will be allowed with comparisons to other providers’ rates.
283

PROCUREMENT POLICIES & PROCEDURES

EMERGENCY PURCHASING & CONTRACTING
48 XII. EMERGENCY PURCHASES & CONTRACTING
A. Policy

1. Emergency Purchases & Contracting Policies & Procedures are established to provide common methods for securing goods, services and public construction needed in the event of an Emergency and to ensure that all requests are in accordance with the Purchasing Ordinance as well as other applicable legal requirements.

2. While the need for occasional Emergency purchases and contracting is recognized, the practice shall be curtailed as much as possible by anticipating needs in time for the use of the regular purchasing procedure.

2.1 Emergency purchases and contracting may be made by the City Manager, Incident Commander or designee only in an Emergency when essential to prevent serious delays that vitally affect the preservation of life, health, safety, or property.

2.2 Authorized verbal orders may be permitted for Emergency purchases of mechanical parts and supplies needed to expedite the return to service of public safety vehicles.

B. Definitions

1. Emergency – A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

C. Procedure

1. Exemptions to the Informal and Formal Bidding Process – Procurement may be exempt from the bidding process (Informal/Formal) under the following conditions:

1.1 Bona fide “Emergency” as defined in the San Clemente Municipal Code Section 3.40.070 and this Policy.

2. Emergency Purchases and Contracting

2.1 In the case of an Emergency, the City, pursuant to a four-fifths vote of the City Council, may repair or replace a public facility, take any action directly related to and immediate action required by that Emergency, and procure 284

PROCUREMENT POLICIES & PROCEDURES

EMERGENCY PURCHASING & CONTRACTING
49 the necessary goods, services, and public construction for those purposes, without giving notice for bids/proposals, to let contracts in accordance with Public Contract Code Section 22050.

2.2 The goal of the Purchasing program is to save funds on procurement by reducing Emergency purchases and contracting to provide dollar savings.

2.2.1 For Emergency purchases and contracting, the user department shall contact the City Manager or their designee, advising of the Emergency that has arisen, and shall request approval.

2.2.2 If an Emergency should arise during a time when Finance is normally closed, the requesting department may select a vendor and a purchase order number will not be assigned at the time of the transaction. However, the obligation and responsibility of the requesting department is to inform Finance of the details of the transaction at the earliest possible time on the first normally scheduled work day following the Emergency.

2.2.3 The requesting department shall obtain the requested material or service and a delivery slip from the vendor with an explanation justifying the Emergency purchase. All invoices shall be sent directly to the requesting department for review.

2.2.4 Requisitions covering Emergency purchases should be entered into the financial system within one working week of the order being placed.

2.2.5 A memorandum of explanation justifying the need and/or circumstances for the Emergency purchase and contract must accompany all Emergency requisitions. Any Emergency requisition not accompanied by a memo of justification will be returned to originating department and not be processed for payment.

2.2.6 Emergency purchases and contracts shall be approved by the City Manager or their designee.

A written report from the requesting department head detailing the circumstances of all Emergency purchases and contracts in excess of $60,000 shall be filed with the City Council at the Council’s next regular meeting (Section 3.40.070 San Clemente Municipal Code). 285

PROCUREMENT POLICIES & PROCEDURES

EMERGENCY PURCHASING & CONTRACTING
50 2.2.7 The Emergency purchase of unbudgeted capital outlay items must be approved by the City Manager and City Council at the ensuing meeting date.
286

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
51 XIII. ENVIRONMENTALLY PREFERABLE PROCUREMENT
A. Policy

1. Procurement Policies & Procedures are established to support markets for recycled and other environmentally preferable products by encouraging City Departments and contractors to buy such products whenever practicable and in the City’s best interests. The California Integrated Waste Management Board makes on-going efforts to reduce the landfill solid waste streams by encouraging the use of environmentally preferable products.

2. This Policy establishes procedures and programs to encourage and facilitate the procurement of recycled and other environmentally preferable product by the City of San Clemente and its contractors. This Policy calls upon the City and its contractors to use recycled and other environmentally preferable products whenever practical, while recognizing that their principal requirements must be product performance and fiscal responsibility.

3. To the extent of any conflict, this Policy shall automatically be superseded by SB 1383 or any other local, state and federal laws pertaining to environmental initiatives currently existing or as amended or enacted from time to time.

B. Definitions
The following terms shall have the assigned definitions for all purposes under this Policy.

1. “City” - means the City of San Clemente.

2. “Compost Products” - means mulch, soil amendments, ground cover, or other landscaping material derived from the biological or mechanical conversion of cellulose-containing waste material.

3. “Environmentally Preferable Products” - means products that have a lesser or reduced effect on human health and the environment when compared with competing products that serve the same purpose. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance or disposal of the product.

4. “Post-Consumer Recycled Material” - means only those products generated by a business or consumer which have served their intended end uses, and which have 287

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
52 been separated or diverted from the solid waste stream for the purposes of collection, recycling and disposition.

5. “Practicable” - means sufficient in performance and available at a reasonable price (Final determination of the practicability of any given product must lie with the users of the product, since it is they who understand their performance and budgetary requirements. Evaluation should consider life-cycle and replacement costs.)

6. “Price Preference” - means a percentage by which offered prices for recycled products are reduced for purposes of bid evaluation. For example, under a 5% price preference, if a bid of $1.00 per unit is received for a recycled product meeting specification, the bid price will be reduced by $0.05 (5%) and evaluated as though it had been $0.95. If this bid results in a contract award, the price actually contracted will be the bid price of $1.00 per unit.

7. “Recyclable Product” - means a product which, after its intended end use, can demonstrably be diverted from the solid waste stream for use as a raw material in the manufacture of another product.

8. “Recycled Material” - means material and byproducts that have been recovered or diverted from solid waste and that can be utilized in place of raw or virgin materials in manufacturing a product. It is derived from post-consumer recycled material, manufacturing waste, industrial scrap, agricultural waste, and other waste material, but does not include material or byproducts generated from, and commonly reused within, an original manufacturing process.

9. “Recycled Product” - means a product containing recycled material.

C. Procedure

1. Responsibilities of Lead Agency

1.1 The Public Works Department and Utilities Solid Waste Division shall be the lead agency for implementation of this Policy and shall perform the following:

1.1.1 Develop and maintain information about environmentally preferable products and recycled products containing the maximum practicable amount of recycled materials to be purchased by the City whenever possible.
288

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
53 1.1.2 Inform City Departments and Divisions of their responsibilities under this Policy and provide implementation assistance.

1.1.3 Disseminate information on recycled and environmentally preferable product procurement opportunities, specifications, and performance to the other City Departments and Divisions.

1.1.4 Communicate with Departments and Divisions to review Policy requirements and new procurement opportunities and to monitor the status of Policy implementation product research results.

1.1.5 Publicize the progress of Policy implementation.

1.1.6 Submit reports to the City Council reflecting the procurement program actions considering the following information:
(a) A compilation of procurement data collected from all City Departments and Divisions.
(b) A status of product or service evaluations conducted by the City’s Departments and Divisions.
(c) An assessment of procurement program effectiveness, an evaluation of program goals and projections of future
procurement opportunities.
(d) Recommendations for changes in the Procurement Policy.

2. Responsibilities of all City Departments and Divisions

2.1 Each City Department and Division shall be responsible for the following:

2.1.1 Evaluate each recycled or environmentally preferable product to determine the extent to which the Department or Division and its contractors may practicably use the product.

2.1.2 Purchase recycled products with the maximum amount of recycled material practicable.

2.1.3 Ensure contracts issued by the Department or Division require recycled and environmentally preferable products wherever practicable.
289

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
54 2.1.4 Ensure contracts issued by the agency for recycled products require the maximum practicable amount of recycled material contractors and provide certification of this content or report amounts used.

2.1.5 Ensure that all printing by all City Departments and Divisions use recycled paper that bears the “chasing arrow” logo or other imprint identifying it as such when practicable.

2.1.6 Use both sides of paper sheets whenever practicable in printing and copying.

2.1.7 Ensure that requests for bids and proposals issued by all City Departments and Divisions require that, whenever practicable, contractors and consultants use recycled paper and both sides of paper sheets or facilitate paperless practices.

2.1.8 Report the progress of Policy implementation by the Department or Divisions to the Solid Waste Section, including the status of product evaluations conducted by the Solid Waste Section and types of environmentally preferable products purchased by the Department or Division and its contractors.

2.1.9 Report total purchases of environmentally preferable, recycled and non-recycled products by the Department or Division and its contractors annually to the Solid Waste Division.

3. Price Preference

3.1 All environmentally preferable products will be given a five percent (5%) price preference when evaluating bids/proposals.

4. Environmentally Preferable Products

4.1 Environmentally preferable products are listed below. The Solid Waste Division may modify this list from time to time.

4.1.1 Paper and paper products.

4.1.2 Compost products.

4.1.3 Horticultural mulch made with recycled land clearing and other wood debris.
290

PROCUREMENT POLICIES & PROCEDURES

ENVIRONMENTALLY PREFERABLE PROCUREMENT
55 4.1.4 Construction aggregates made with recycled cement concrete, glass or asphalt.

4.1.5 Cement and asphalt concrete containing glass cullet, recycled fiber or plastic, tire rubber or fly ash.

4.1.6 Lubricating oil and hydraulic oil with re-refined oil content.

4.1.7 Antifreeze.

4.1.8 Recycled plastic products.

4.1.9 Remanufactured tires and products made from recycled tire rubber, including rubber mats and play field surfaces.

4.1.10 Insulation Products.

4.1.11 Paint.

4.1.12 Remanufactured laser printer toner cartridges.

4.1.13 Other products as designated by the Solid Waste Section.

5. Exemptions

5.1 Nothing contained in this Policy shall preclude City Departments and Divisions from requiring recycled material content as a bid specification.

5.2 Nothing in this Policy shall be construed as requiring a City Department or Division or its contractors to procure products that do not perform adequately for their intended use or are not available at a reasonable price in a reasonable period of time.
291

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
56 XIV. CONTRACT ADMINISTRATION
A. Policy
It shall be the Policy of the City of San Clemente to ensure that all contracts to which the City is a party are prepared and processed according to a systematic procedure in order to ensure that contract documents are legally enforceable and that all necessary securities and protections are in place prior to the commencement of work.

B. Contract and Agreement Determination

1. Other than petty cash, all procurements require the use of a contract or agreement as prescribed in this section.

1.1 Requisitions are required for purchases in excess of $5,000 or a lesser amount determined by finance based on the inherent procurement risk.

1.2 Appropriate use of contracts and purchase orders are further described in Article (V)(C).

C. Definitions
For purposes of this Policy, the following definitions shall apply:

1. Contract: A promise in writing or set of promises in writing signed by the parties the breach of which the law gives a remedy or the performance of which the law in some way recognizes as a duty, including without limitation, Purchase of Supplies, Materials and Equipment, Professional/General Services Agreements, Agreements for Construction of Public Projects, Subdivision Improvement Agreements, accepted Purchases Orders, and leases.

2. Agreement: Same as “Contract.”

3. Purchase Contract: A contract that procures supplies, materials and equipment. (see Article VI, Procurement of Supplies Materials and Equipment)

4. Purchase Order: A contractual agreement for goods, services and public construction projects for an approved amount. These instruments have less detailed or incorporated terms and conditions as compared to a standard City contract and should only be used independently for minimal risk procurements. City practice is to use purchase orders in conjunction with standard City agreements whenever feasible.
292

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
57 5. Agreement for Construction of Public Projects: A contract that procures services that will directly result in the physical construction of a public improvement. (See Article VII, Public Construction Projects)

6. Professional Services Agreement: A contract that procures professional, technical and/or clerical services and that will not directly result in the physical construction of a public improvement. (See Article VIII, Selection of Professional Services Consultants and Contractors)

7. General Services Agreement: A contract that procures services which typically do not require a high degree of professional certification or specialized expertise either with or without the furnishing of materials. (See Article IX, Selection of General Service Consultant and Contactors)

8. Other Agreements: A contract that is not appropriate for the use of the City’s standard purchasing templates used for Construction of Public Projects, Professional Services, General Services, Supplies, Materials and Equipment. These types of agreements must be sent to the City Attorney in advance for approval.

Other agreements include but not limited to the following:

8.1 Information Technology Agreements: A contract that procures information technology related services or license agreements for use of technology.

8.2 Third Party Energy Supplier Contracts: A contract that procures energy, various components of energy, or derivatives in a deregulated energy market.

9. Insurance: A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils.

10. Certificate of Insurance: Evidence of insurance provided in lieu of an actual copy of the insurance Policy and which contains statements or words to the following effect: “This certificate or verification of insurance is not an insurance Policy and does not amend, extend or alter the coverage afforded by the policies listed herein.

Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies.” (California Insurance Code Section 384.)
293

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
58 11. Insurance Endorsement: A statement issued by a duly authorized representative of an insurance company that guarantees the validity of a Certificate of Insurance and names the City of San Clemente, its, officials, officers, employees, agents, and volunteers and if determined appropriate, Caltrans (California Department of Transportation), Federal Highway Administration, and any other public agencies, as additional insureds.

12. Security Instrument: A bond, letter of credit, or other security acceptable to the City at City’s sole and absolute discretion which guarantees or secures the fulfillment of an act, such as faithful performance, payment to subcontractors and other persons furnishing labor, materials, or equipment, and/or warranting the accepted works of improvement.

13. Local Bidder: A bidder that is a small business with a physical business location is in the boundaries of the City of San Clemente as indicated on an approved active business license. Prices, fitness, quality, delivery and service being equal, a seven percent (7%) "local preference" may be given to the local bidders as provided by law and further defined in SCMC section 3.40.030.

D. Procedure

1. All City departments shall be responsible for drafting agreements that pertain to their operations. Standard forms for Purchase of Goods, Professional Services Agreements, General Services Agreements, and Agreements for Construction of Public Projects are contained within the City’s word processing system and shall be used to draft all City contracts/agreements that pertain to goods, general/professional services or construction projects. No modifications to the standard forms for contracts/agreements shall be made without prior City Attorney approval.

1.1 Access the standard Contract Template, utilize Word to create a new document, open the shared templates, choose Purchasing and double click on the Template Filename as listed in the following table.

Contract Type Template Filename
Supplies, Materials & Equipment Purchase Contract Template Professional Services Agreement Professional Consultant/Contractor Services Agreement
294

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
59 General Services Agreement -General Services Agreement -Maintenance Services Agreement
Construction of Public Projects Construction Contract
Short Form Construction Contract Short Form Construction Contract

1.2 Software license agreements may use agreements provided by software provider due to the technical nature, if acceptable to the City Attorney.

1.3 Other agreements not listed must receive approval by Finance and the City Attorney’s office before execution.

2. After a draft contract/agreement has been prepared, the originating department shall include the contract document in the bid package to ensure that prospective bidders are provided with all requirements prior to submitting bids/proposals.

3. The originating department in coordination with the City Clerk’s Office shall determine the number of original contracts needed and shall ensure that sufficient original contracts are processed and distributed. If applicable, the original contract shall be returned to the originating department for its retention only if an additional contract has been processed specifically for this purpose.

3.1 Electronic Signatures. Whenever possible agreement should be signed electronically. Electronic signatures have with the same force and effect as original ink signatures when a provision to that effect is included in the contract language.

4. The originating department shall obtain and attach all necessary exhibits, such as scope of work, schedule of performance, maps and legal descriptions to all original or electronic copies of the contract.

5. Originating departments are encouraged to submit all word version copies of the draft contract, complete with all attachments (with the exception of Certificates of Insurance/Endorsement and Security Instruments) to the City Attorney for approval as to form in advance of submission to the contractor/consultant. The City Attorney shall sign the original contracts when acceptable from a legal standpoint.

6. The originating department shall obtain the signature(s) of the party(ies) with whom the City proposes to contract on all originals of the contract document. It is critical 295

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
60 that representatives from the opposite party(ies), who are authorized to execute binding agreements on behalf of their company, as verified by the originating department, sign all originals of proposed Professional Services Agreements prior to City Council consideration of same.

The City shall execute agreements in advance of execution by the opposite party(ies), only in cases where the City proposes to contract with a higher agency, such as the County of Orange or State of California. Some contracts, particularly those which involve land conveyance and/or recordation with the County Recorder (e.g., easements and development agreements), require that signatures be notarized.

In these cases, the originating department shall ensure that the party with whom the City proposes to contract submits a notarized signature on all originals of the contract document. The City Clerk or Deputy City Clerk shall notarize the City’s signatories.

7. The originating department shall ensure, and verify with Finance, if necessary, that sufficient funds are budgeted to cover the cost of the contract/agreement.

8. Unless City Council approval is required by State or local statute, contracts that involve expenditures of up to $10,000 may be signed by Division Managers, $25,000 or less may be signed by Department Heads; contracts that involve expenditures less than or equal to $60,000 may be signed by the City Manager; and all contracts that involve expenditures greater than $60,000 shall be submitted to the City Council for approval and shall be executed by the City Manager or their designee following City Council approval.

9. A Certificate of Insurance and insurance endorsement shall be obtained from all Contractors/Consultants, which evidence minimum insurance coverage consistent with the text of the contract. A new Certificate of Insurance and endorsement need not be obtained from professional services consultants provided they have a “blanket” coverage insurance certificate already on file with the City that will remain in effect during the duration of the project. In such cases, it is incumbent upon the originating department to attach a copy of the existing insurance certificate and endorsement to the contract document. “Blanket” coverage is defined as liability insurance that meets the requirements of the contract and does not contain a provision that limits its application to a specific project. Public construction project contractors must provide a new insurance certificate and endorsement with each contract.

10. A business license shall be obtained from all Contractors/Consultants prior to the commencement of the agreement.
296

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
61 11. Security Instruments, which conform to the requirements of Agreements for Construction of Public Projects, shall be obtained from all Public Project contractors. Following approval of the Security Instruments by the City Manager or designee, the Security Instruments shall be attached to the City’s original of the contract document. The words “City Copy” shall be clearly labeled on the first page of the contract which contains the Security Instruments as well as the Certificate of Insurance and endorsement.

12. After all applicable requirements in this section have been completed, the originating department shall obtain the signature of the Department Head on all original copies of Agreements for which the Department Head is authorized to execute.

13. After all applicable requirements in this section have been completed, the original contracts shall be submitted to the City Clerk’s Office for processing. Contracts shall not be provided to the City Clerk’s Office until all applicable exhibits, signed Workers Compensation Insurance Certification, Certificate of Insurance/endorsement, and bonds (if applicable) which have been approved and initialed by the City Manager or designee, applicable Security Instruments have been attached to the contract document and approval from the City Attorney’s office has been obtained.

14. The City Clerk’s Office shall obtain the signature of the City Manager on all original contracts which he/she is authorized to execute pursuant to this Policy.

15. The City Clerk’s Office shall obtain the signature of the Mayor on all original contracts that have been approved by the City Council where the Council has not specifically delegated signature authority to another City representative.

16. The City Clerk’s Office shall not release executed contracts to the originating department, consultant or contractor until, and unless, all of the following have been verified:

16.1 The contract has been approved as to form by the City Attorney.

16.2 The contract has been approved as to funding availability by Finance.

16.3 The contract has been executed by the consultant or contractor. 297

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
62 16.4 When applicable, the contract has been executed by the appropriate City representative pursuant to this Policy. In the case of contracts which require City Council approval, the approval shall be verified.

16.5 When applicable, the contract contains a Workers Compensation Insurance Certification that has been executed by the Consultant or Contractor.

16.6 When applicable, the Certificate of Insurance and insurance endorsement have been approved and initialed by the City Manager or designee.

16.7 Any required Security Instruments required by the contract have been approved by the City Manager or designee.

16.8 All exhibits to the contract, including but not limited to, scope of work, schedule of performance, maps, legal descriptions, Certificates of Insurance/Endorsements, and Security Instruments have been included or appended.

17. After the City Clerk’s Office has verified that all requirements set forth in Article (XIV)(D)(16) have been fulfilled, the City Clerk’s Office shall coordinate the receipt of the executed agreement to all parties. The City Clerk shall maintain a copy of the original agreement or equivalent electronic version, along with the successful bid proposal (if applicable).

18. The originating department may not issue a Notice to Proceed until the City Clerk’s Office has verified that the contract is complete.

19. The City Clerk’s Office is responsible for maintaining custody of all official original contracts to which the City is a party.

E. Purpose
Article XIV of the City Procurement Policies & Procedures for Contract Administration is established to ensure the systematic and consistent preparation, content, and processing of City contracts/agreements clearly defining individual departmental roles from the drafting of the contract through approval and execution of the contract and authorizing work to commence. Contracts/agreements shall be prepared to protect the City’s interests. Contract disputes can be expensive to the City, both in terms of legal costs, liabilities, and delays.

The intent of this Article XIV is to itemize the proper contract-processing procedure to ensure that all contract documents are legally defensible and that all necessary securities and protections are in place prior to the commencement of work. 298

PROCUREMENT POLICIES & PROCEDURES

CONTRACT ADMINISTRATION
63 F. References
Public Contracts Code Section 20160 et seq. and 22000 et seq. Contracts are also addressed in a significant number of locations within the Government Code. Either consult with the City Attorney or refer to the portion of the Government Code that pertains to the topic of a specific contract to determine whether particular statutory requirements exist that are applicable to the contract.
299
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: June 17, 2025 Agenda Item: 10C.

Submitted By: Finance and Administrative Services
Prepared By: Charlie Smith, City Treasurer
Brian Brower, Chief Administrative Officer
Subject:
..titl e
ADOPTION OF SECTION 115 PENSION INVESTME ..body NT POLICY Fiscal Impact:

None.

Summary:

On May 27, 2025, the Investment Advisory Committee approved a recommendation to City Council for the adoption of the Section 115 Trust Investment Pension Policy dedicated to prefunding employer contributions to the City’s defined benefit pension systems. Staff is recommending a clarification to the Committee’s recommendation in section 6.5 of the proposed Policy with respect to future changes that are necessary to comply with applicable law.

Background:

The City participates in two defined benefit retirement benefits; the City of San Clemente Employee Retirement Plan (CSCERP) and California Public Employees’ Retirement System (CalPERS). CSCERP is a legacy pension plan that currently has nonactive employees, primarily those who separated from the City prior to the 2014 transition to CalPERS. The City has three pension plans with CalPERS. For employees hired prior to January 1, 2013, the City participates in a 2% at 55 Risk Pool, and for new CalPERS employees hired after December 31, 2012, the City participates in a 2% at 62 Risk Pool. The chart lists the City’s pension plans, plan administrators, participation groups and benefit levels.

Plan Plan Administration Participants Benefit
Marine Safety CalPERS Lifeguards (Full-Time) 3% @ 55 (Classic)

2.7% @ 57 (PEPRA)
Safety (Inactive) CalPERS Former police and fire
employees
2% @ 50 (Classic)

2.7% @ 57 (PEPRA)
Miscellaneous CalPERS General Employees
(non-safety)
2% @ 55 (Classic)
2% @ 62 (PEPRA)
City of San Clemente
Employee Retirement Plan
(CSCERP)
Milliman/Empower Former City employees
and Coastal Animal
Services employees
2% @ 55 (Classic)
2% @ 62 (PEPRA)
It is the objective of these defined benefit pension plans to fund long-term benefits for participants. CalPERS uses actuarial assumptions to estimate future pension costs and ensure long term financial sustainability. These assumptions include various economic and demographic factors that impact funding requirements, which can vary significantly from year to year. A 300
Meeting Date: June 17, 2025 Agenda Item: 10C.

CITY OF SAN CLEMENTE 2
Section 115 Pension Trust Fund can be used as a financial cushion against fluctuations in required CalPERS employer contribution rates. Additionally, it can aid in managing cost increases while reducing reliance on the City’s budget during economic downturns.

The proposed Section 115 Pension Investment Policy outlines a plan to fund current and future pension costs, manage the City of San Clemente’s Section 115 Pension Trust Fund, and set investment goals to ensure financial stability.

As presented by staff, section 6.5 of the Policy would allow the Committee to make changes to the Policy to comply with applicable law and report any such changes to the City Council.

Council Options:
 Adopt Section 115 Pension Investment Policy, 202-3, with an effective date of June 17, 2025.  Adopt Section 115 Pension Investment Policy, with modifications.  Continue the item with direction given to staff.
 Decline to adopt a Section 115 Pension Investment Policy.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt the Section 115 Pension Investment Policy Number 202-3, effective June 17, 2025.
..end
Attachment:

1. Section 115 Pension Investment Policy
Notification:

None.
301