San Clemente City Council
August 5, 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
4:00 p.m. - Closed Session (Special Meeting)
5:30 p.m. - Business Meeting

CITY OF SAN CLEMENTE
Tuesday, August 5, 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 August 5, 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 (4:00 P.M. SPECIAL MEETING)
A. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION Whether to initiate litigation pursuant to Government Code section 54956.9(d)(4) Number of Cases: 1
B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(a)&(d)(2)
Number of Cases: 1
Facts and Circumstances per Government Code section 54956.9(e)(2): Alleged violation of the Davis-Stirling Common Interest Development Act (Civil Code sections 4000, et seq.) as set forth in the attached letter from Angelo and Lisa Garruba.

C. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION Whether to initiate litigation pursuant to Government Code section 54956.9(d)(4) Number of Cases: 1
D. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code section 54956.9(d)(1) Number of Cases: 1
Case Name: MDL No. 2804 National Prescription Opiate Litigation Proposed Opioid Settlements
E. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Discussion concerning right-of-entry agreement and related real property transactions in compliance with Government Code section 54956.8 regarding:

Real Property Negotiations: APN 678-163-01
Property: Properties located at the southwest corner of Avenida La Pata and Vista Hermosa
City Negotiators: Andy Hall, City Manager
Negotiating Parties: Orange County Fire Authority
Under Negotiations: Price and terms

2 City Council Special and Regular Meeting Agenda August 5, 2025 BUSINESS MEETING (5:30 P.M.)

CALL TO ORDER
INVOCATION – Pastor Matt Levchak, Calvary Chapel San Clemente

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
A. CONSIDERATION OF A RESOLUTION APPROVING THE SELECTION OF THE 2025 WALL OF RECOGNITION NOMINEE
Staff Recommendation
Adopt Resolution No. 25-112 which will:

1. Approve the selection for the 2025 Wall of Recognition recipient, Ed Kweskin.

2. Authorize the Mayor to present the honoree with a certificate of recognition.

B. RECOGNITION OF OUT-GOING COMMISSION AND COMMITTEE MEMBERS Presentation of Commendations to the following out-going members of the City's Commissions and Committees:

Art and Culture Committee
Jacqui Groseth
Beaches Parks and Recreation Commission
Edward Kweskin
Amelia Mae-Weinstein
Coastal Advisory Committee
Susan Ambrose
John Dow
Brian Jacobs
Richard Ayer
Golf Course Committee
Marc Veale
Human Affairs Committee
Cordell Bauer
Michelle Brooks
Lisa Edone
Dick Veale

3 City Council Special and Regular Meeting Agenda August 5, 2025 Investment Advisory Committee
Art Carter
Planning Commission
Barton Crandell
Brent Davis
Public Safety Committee
Nick Berkuta
Mark Rhoden

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 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

4 City Council Special and Regular Meeting Agenda August 5, 2025

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. PUBLIC HEARING - SETTING VOLUNTARY DONATION FEES FOR THE C.A.R.E. (CELEBRATE, ACKNOWLEDGE, REMEMBER, ENHANCE)

PROGRAM SUPPORTING PUBLIC SPACE AMENITIES AT PARKS,

BEACHES, TRAILS, SIDEWALKS, AND THE MUNICIPAL GOLF COURSE,

APPROVING THE PROGRAM AND RELATED POLICY AND FINDING THE

ACTIONS CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Public Hearing to consider two proposed voluntary fees related to the donation of amenities in City parks and at the San Clemente Municipal Golf Course through the City’s C.A.R.E. (Celebrate, Acknowledge, Remember, Enhance) program.

The City is proposing the following voluntary donation opportunities:

1. Adjustment of Existing Fees: An increase in the voluntary donation amounts for benches and picnic tables in City parks under the C.A.R.E. program. This proposed change reflects increased costs associated with materials, installation, and ongoing maintenance.

2. New Golf Course Donation Opportunity: The establishment of a new voluntary donation opportunity within the C.A.R.E. program, allowing individuals and organizations to contribute benches, tables, and other approved amenities along the San Clemente Municipal Golf Course.

These fees are strictly voluntary and are not required of any individual or organization. They are intended to provide an opportunity to residents and community members who wish to contribute to the enhancement and beautification of San Clemente’s parks and recreation infrastructure.

Staff Recommendation

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

2. After conducting the public hearing, Adopt Resolution No. 25-106, which will:
a. Determine that the projects are categorically exempt under the California Environmental Quality Act (CEQA) Guidelines Section 15301 (Existing Facilities) and Section 15311 (Accessory Structures).

5 City Council Special and Regular Meeting Agenda August 5, 2025 b. Increase the C.A.R.E. Program donation amount to $7,000 for benches and picnic tables placed in City parks, beaches, trails, and other public spaces.
c. Establish a new voluntary donation opportunity through the C.A.R.E.

Program for the San Clemente Municipal Golf Course and set the donation amount for benches at $3,500 and for drinking fountains/water refill stations at $8,250.
d. Adopt Policy No. 702-8, entitled C.A.R.E. Public Amenity Donation Program.

9. Unfinished Business
None.

10. New Business
10A. CONSIDERATION OF IN-HOUSE OPERATIONS FOR SAN CLEMENTE

MUNICIPAL GOLF COURSE PRO SHOP SERVICES
Staff Recommendation
Direct staff to develop and return with a comprehensive proposal for transitioning the San Clemente Municipal Golf Course Pro Shop operations to an in-house model upon expiration of the current contract on December 31, 2026.
10B. CONSIDERATION OF JOINING THE ASSOCIATION OF CALIFORNIA CITIES,

ORANGE COUNTY DIVISION (ACC-OC)
Staff Recommendation

1. Staff recommends the City Council direct the City Manager to take all necessary actions to submit an ACC-OC membership application and payment of $12,209.25 for the annual dues, and approve the supplemental appropriation for Account No. 001-203-44110.

2. Staff further recommends that the City Council appoint the Mayor or another member of the City Council as the official ACC-OC representative.

6 City Council Special and Regular Meeting Agenda August 5, 2025

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 ADJOURNED REGULAR CITY COUNCIL MEETING
MINUTES OF JUNE 17, 2025.
(2) APPROVE THE SPECIAL AND REGULAR CITY COUNCIL MEETING MINUTES OF JUNE 17, 2025.

B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
(1) GOLF COURSE COMMITTEE REGULAR MEETING MINUTES OF
FEBRUARY 6, 2025.
(2) BEACHES, PARKS AND RECREATION COMMISSION REGULAR
MEETING MINUTES OF APRIL 8, 2025.
(3) INVESTMENT ADVISORY COMMITTEE REGULAR MEETING
MINUTES OF APRIL 28, 2025.
(4) ARTS AND CULTURE COMMITTEE REGULAR MEETING MINUTES OF MAY 19, 2025.
(5) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF
MAY 27, 2025.
(6) INVESTMENT ADVISORY COMMITTEE SPECIAL MEETING MINUTES OF MAY 27, 2025.
(7) PLANNING COMMISSION REGULAR MEETING MINUTES OF JUNE 18, 2025.
(8) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF
JUNE 24, 2025.
(9) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES
OF JUNE 25, 2025.

7 City Council Special and Regular Meeting Agenda August 5, 2025 C. Warrant Register
(1) APPROVE HANDWRITE NOS.
605410 THROUGH 605416, WIRE
TRANSFER NOS. 3256 THROUGH
3261 AND WARRANT NOS. 605271
THROUGH 605409, PAID ON 6-20-25,
IN THE AMOUNT OF $4,784,658.64
(2) APPROVE WIRE TRANSFER NOS.
3262 THROUGH 3267 AND WARRANT NOS.
605417 THROUGH 605576, PAID ON
6-27-25, IN THE AMOUNT OF $2,566,875.67
(3) APPROVE WARRANT NOS.
605577 THROUGH 605764, PAID ON
7-3-25, IN THE AMOUNT OF $1,030,305.43
(4) APPROVE HANDWRITE NO. 605860,
WIRE TRANSFER NOS. 3268
THROUGH 3275 AND WARRANT NOS.
605765 THROUGH 605859, PAID ON
7-11-25, IN THE AMOUNT OF $5,602,647.78
(5) APPROVE WIRE TRANSFER NOS.
3276 THROUGH 3279 AND WARRANT NOS.
605861 THROUGH 606001, PAID ON
7-18-25, IN THE AMOUNT OF $6,779,623.20
(6) APPROVE WIRE TRANSFER NOS.
3280 THROUGH 3285 AND WARRANT NOS.
606002 THROUGH 606201, PAID ON
7-25-25, IN THE AMOUNT OF $2,489,674.74
TOTAL WARRANT REGISTER $23,253,785.46

8 City Council Special and Regular Meeting Agenda August 5, 2025 Payroll Register

APPROVE AUTOMATIC DEPOSIT
ADVISES 103704 THROUGH 104067,
FOR THE PERIOD 5-26-25 THROUGH
6-8-25, PAID ON 6-13-25,
IN THE AMOUNT OF $550,558.50

APPROVE AUTOMATIC DEPOSIT
ADVISES 104068 THROUGH 104468,
FOR THE PERIOD 6-9-25 THROUGH
6-22-25, PAID ON 6-27-25,
IN THE AMOUNT OF $654,610.15

APPROVE AUTOMATIC DEPOSIT
ADVISES 104469 THROUGH 104860,
FOR THE PERIOD 6-23-25 THROUGH
7-6-25, PAID ON 7-11-25,
IN THE AMOUNT OF $658,580.88

APPROVE AUTOMATIC DEPOSIT
ADVISES 104861 THROUGH 105241,
FOR THE PERIOD 7-7-25 THROUGH
7-20-25, PAID ON 7-25-25,
IN THE AMOUNT OF $646,660.41
TOTAL PAYROLL REGISTER $2,510,409.94
11D. ADOPT ORDINANCE NO. 1793 (SECOND READING) - 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
Adopt 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.

9 City Council Special and Regular Meeting Agenda August 5, 2025 11E. CONSIDERATION OF A RESOLUTION ACCEPTING AN UPDATED GRANT

AMOUNT FROM CALIFORNIA COASTAL COMMISSION, AUTHORIZING A

RELATED SUPPLEMENTAL APPROPRIATION, AUTHORIZING THE CITY

MANAGER TO EXECUTE A RELATED CONTRACT AMENDMENT WITH

CETO CONSULTING, LLC AND FINDING THE PROJECT CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-107, which will:

1. Determine that project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines, Section 15306 (14 CCR § 15306, Information Collection).

2. Accept a grant from the Coastal Commission in the amount of $59,000.

3. Approve an additional supplemental appropriation of $9,000 to be reflected in the following revenue and expenditure accounts:
a. 001-000-33446 $9,000 (Revenue)
b. 001-433-43695 $9,000 (Expenditure)

4. Approve and authorize the City Manager to execute, Amendment No. 1 to Contract No. AC-1315, by and between the City of San Clemente and CETO, providing for professional services to capture and analyze data for the City’s Local Coastal Program, with a total contact amount not to exceed $59,000. 11F. CITY’S FISCAL YEAR 2025 THIRD QUARTER FINANCIAL REPORT Staff Recommendation
Receive and file the City’s Third Quarter Financial Report dated August 5, 2025, and on file with the City Clerk.
11G. CONSIDERATION OF A RESOLUTION APPROVING SBA LOAN

AGREEMENT DOCUMENTS FOR SALTY TURF, LLC LEASEHOLD

INTEREST
Staff Recommendation
Adopt Resolution No. 25-108 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

AUTHORIZING EXECUTION OF A TRI-PARTY AGREEMENT,

COLLATERAL ASSIGNMENT OF LEASE, AND MEMORANDUM OF

AGREEMENT IN CONNECTION WITH AN SBA LOAN FOR SALTY
TURF, LLC.

10 City Council Special and Regular Meeting Agenda August 5, 2025 11H. CONSIDERATION OF A RESOLUTION APPROVING THE PURCHASE OF WATER METERS FOR FISCAL YEAR 2025- 26 FROM FERGUSON

WATERWORKS AND METRON-FARNIER AS SOLE SOURCE VENDORS IN A CUMULATIVE AMOUNT NOT TO EXCEED $122,140, AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-109, 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 purchase of water meters from Ferguson Waterworks as a sole source vendor based on the Fixed price quote, provided as Attachment 2 of the Administrative Report dated August 5, 2025, and on file with the City Clerk.

3. Approve the purchase of water meters from Metron-Farnier as a sole source vendor based on the fixed price quote, provided as Attachment 3 of the Administrative Report dated August 5, 2025, and on file with the City Clerk.

4. Approve the expenditure for water meter purchases for Fiscal Year 2025-26 for a total amount not to exceed $122,140.
11I. CONSIDERATION OF A RESOLUTION APPROVING SUPPLEMENTAL

APPROPRIATIONS FOR GOLF COURSE MAINTENANCE EQUIPMENT,

LANDSCAPE IMPROVEMENTS, AND FACILITY REPAIRS, APPROVING

SUCH PROJECTS AND FINDING THE PROJECTS CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-110, which will:

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

2. Approve a supplemental appropriation of $74,071 from the Golf Depreciation Reserve Fund Balance to the Golf Depreciation Reserve Machinery & Equipment Account No. 056-666-45500-000-00000 to fund the replacement of maintenance machinery and equipment and approve such projects.

3. Approve a supplemental appropriation of $56,000 from the Golf Fund Operating Unassigned Fund Balance to Golf Course Maintenance Other Contractual Services Account No. 056-661-43890-000-00000 to fund

11 City Council Special and Regular Meeting Agenda August 5, 2025 landscape improvements, golf course bathroom repairs, and HVAC replacement at the maintenance shop and approve such projects.

4. Approve a supplemental appropriation of $35,000 from the Golf Depreciation Reserve Fund Balance to the Golf Depreciation Reserve Tenant Improvements Account No. 056-666-45330-000-00000 for the replacement of the water heater serving the snack bar and restrooms, and the replacement of kitchen flooring in the clubhouse restaurant and approve such projects.
11J. REPEAL RESOLUTION 25-86 AND ADOPT RESOLUTION 25-111 TO SELECT PUBLIC AGENCY RETIREMENT SERVICES (PARS) AS THE CITY’S SECTION 115 PENSION INVESTMENT TRUST ADMINISTRATOR,

IMPLEMENT AN INVESTMENT STRATEGY ACCORDING TO THE

RECOMMENDATIONS OF THE INVESTMENT ADVISORY COMMITTEE,

APPROVE AND AUTHORIZE EXECUTION OF RELATED AGREEMENTS,

AND FUNDING THE TRUST
Staff Recommendation
Repeal Resolution No. 25-86 and Adopt Resolution 25-111, which would:

1. Appoint the City Treasurer, as the City’s Plan Administrator for the Section 115 Trust.

2. Adopt the PARS Public Agencies Post-Employment Benefits Trust dated November 5, 2014.

3. Appoint the Public Agency Retirement Services (PARS) to serve as the Trust Administer of the City’s Section 115 Pension Investment Trust Fund.

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

5. Approve the PARS agreement documents, provided as attachments to the Administrative Report dated August 5, 2025, and on file with the City Clerk.

6. Authorize the City Treasurer to execute the agreements between the City of San Clemente, Public Agency Retirement Services (PARS) and US Bank, specifically the:
a. PARS Agreement for Administrative Services
b. PARS Adoption Agreement
c. PARS Trustee Investment Management Fee Schedule
d. US Bank Authorized Signers Form
e. US Bank Investment Strategy Selection and Disclosure Form

7. Authorize the preliminarily funding of the 115 Trust in the amount of $1.18

12 City Council Special and Regular Meeting Agenda August 5, 2025 million from General Fund account number 001-203-48630.

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 19, 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.

13 City Council Special and Regular Meeting Agenda August 5, 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.

14 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: A.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e
CONSIDERATION OF A RESOLUTION APPROVING THE SELECTION OF THE 2025 WALL OF RECOGNITION NOMINEE ..body
Fiscal Impact:

Minimal cost associated with the plaque.

Summary:

The “Wall of Recognition” is dedicated to those individuals who, through their contributions and selfless efforts, have made the City of San Clemente a better place to live, work, and play. The recipients are nominated by citizens as individuals who have gone the extra mile for San Clemente and selected by prior honorees. The Wall of Recognition Committee recommends that City Council approve and honor the selection of Ed Kweskin for 2025 Wall of Recognition honoree (Attachment 2).

Background:

In 1994, City Council approved the creation of the Wall of Recognition designed to honor individuals who have dedicated their time to improving the quality of life for the residents and visitors of the City of San Clemente (Attachment 3). The “Wall of Recognition” is located in the lobby at the Community Center and includes a plaque recognizing each recipient. 15 Meeting Date: August 5, 2025 Agenda Item: A.

CITY OF SAN CLEMENTE 2
Annually, residents and community-based service organizations submit nominations for the Wall of Recognition selection process during the designated nomination period.

The Wall of Recognition Committee is composed of a representative from the City Council, Beaches, Parks and Recreation Commission, and past recipients of this prestigious award (Attachment 4).

Council Options:
 Adopt Resolution No. 25-112, which will approve the selection for the 2025 Wall of Recognition recipient, Ed Kweskin; and authorize the Mayor to present the honoree with a certificate of recognition.
 Modify and adopt Resolution 25-112.
 Continue the item with direction to staff for additional information.

Environmental Review/Analysis:

This activity is not subject to California Environmental Quality Act (“CEQA”); pursuant to CEQA Guidelines Section 15060(c)(2), an activity is not subject to CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment (14 CCR § 15060).

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-112 which will:

1. Approve the selection for the 2025 Wall of Recognition recipient, Ed Kweskin; and

2. Authorize the Mayor to present the honoree with a certificate of recognition. ..end
Attachment:

1. Resolution No. 25-112

2. Background information on 2025 Nomination, Ed Kweskin

3. Wall of Recognition Summary Policy

4. Wall of Recognition Honor Roll
Notification:

Wall of Recognition Honorees
16 Attachment 1
RESOLUTION NO. 25-112

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING AND
HONORING THE 2025 WALL OF RECOGNITION NOMINEES
WHEREAS, in 1994, the City Council approved the establishment of the “Wall of Recognition” (“WOR”) designed to honor individuals who have dedicated their time to improving the quality of life for the residents and visitors of San Clemente; and WHEREAS, the program is guided by Policy No. 103-2-1; and WHEREAS, per policy, nominations are open annually for a pre-determined period, allowing for local service organizations and groups of community members, alike, to submit citizen nominations; and
WHEREAS, the WOR Committee, comprised of a representative from the City Council, Beaches, Parks and Recreation Commission, and past recipients of this prestigious award submitted their ballots and subsequently met on April 22, 2025, to review the nominations and provide a recommendation for a new recipient; and WHEREAS, at its selection meeting, the WOR Committee unanimously agreed to recommend Ed Kweskin as the 2025 Wall of Recognition honorees based on his commitment to serving the city and community in a variety of ways, acting in many capacities including commissioner, volunteer, and a board member in many cases.

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

SECTION 1. That the foregoing recitals shall be and are hereby fully incorporated into this Section 1 as if said recitals were fully set forth herein.

SECTION 2. That Ed Kweskin is hereby selected as the 2025 Wall of Recognition honoree.

SECTION 3. The Mayor is hereby authorized to present Mr. Kweskin with a certificate of recognition as the 2025 Wall of Recognition honoree.

SECTION 4. 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 ____________________, _______. 17 Resolution No. 25-112 Page 2
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-112 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
18 From:

To: Fields, Debbie; Wylie, Samantha
Subject: City of San Clemente, CA: WALL OF RECOGNITION NOMINATION Date: Friday, February 28, 2025 10:52:33 AM
A new entry to a form/survey has been submitted.

Form Name:

Date & Time:

Response #:

Submitter ID:

Wall of Recognition Nomination 2025
02/28/2025 10:52 AM
2 33706
Time to complete: 11 min. , 44 sec.

Survey Details

1. Nominee Information:

Name of Nominee:

Nominee Address:

Nominee Age:

Length of time nominee
has resided in San
Clemente:

Edward R. Kweskin
77 45 Years

2. Sponsor Type:
(○) Consensus of 10 Individuals

3. Sponsor Information:

If sponsor is non-profit
organization, organization
name:

Not answered
If sponsor is consensus, name of sponsoring individuals (minimum of 10) whose primary residences are in the City of San Clemente:

1. Robert Beaulieu

2. Brad Stephenson

3. Douglas Juvinall

4. Kelly Ricks

5. Billy Conrad

6. Joey Abi-Lufti

7.Douglas Ray

8. Jim Holloway

9.. Cheryl Louise Lyman

10. Ruth Martin

11.Brice Aaron Neubauer
Attachment 2
19 12.Gary Ward

13.Malik Schilling
Contact Person:

Address:

Cheryl Louise Lyman Abi-Loufti
Phone Number:

E-Mail Address: Not answered

4. Service to the Community:

Services provided by the nominee that benefited the community and length of time they were provided. Estimate the number of hours the nominee spent in the provision of these services.

Planning Commissioner 1980-1989
Beaches Parks and Recreation Commissioner 1991-1992
President San Clemente Little League (1985-1987)
President San Clemente Community Theatre (1996-1998)
San Clemente Softball Vice President (1996)
Chamber of Commerce Vending Manager The FIesta Street Fair Boys and Girls Club of South Orange County-Basketball Coach U18- ( 1996—1999) Three Peet Boys and Girls Club of South Orange County-Indoor Soccer Coach (1996) San Clemente Sea Buffaloes Slo Pitch Softball Club (USSSA) (1980-1987) San Clemente High School Football Night-Volunteer (#23/ #9) Sam Kweskin (WR/CB) Ben Kweskin (MLB) Beaches, Parks and Recreation Commission(2023-Present)
A description of why the services provided by the nominee were of value to the community and why the sponsor considers the nominee to be ideal for the Wall of Recognition. The sponsor shall be responsible to verify the accuracy of the information provided.

As Planning Commissioner: (1980-1989) Member/Chairman: Adoption of City”s First General Plan, Rancho San Clemente Specific Plan, Marblehead Inland Specific Plan, Plan 2000, Projects: Kehoe Plaza, As Little Lealgue President: Renovated Vista Bahia Park-New Lights, New Scoreboard, New Infield, New Mound (Specifications from LA Dodgers Groundkeeper); correct and accurate accounting and cash management; paid umpires. Bonita Canyon: Similar Field Improvements; Supported development of Steed Park Softball Complex to free fields from Softball League Use.

San Clemente Community Theatre: New Sign, New Coming Attractions installation, New Shop Area, New Lighting, Updated Office. New Entry Doors. Continued Season Ticket Sales.

Beaches, Parks and Recreation Commission-(1992-1995) Upgraded San Gorgonio Park-Small Field -Replace Toxic Subgrade, Large Field Similar, Install Basketball Court.

5. Additional Comments (optional):

Mr. Kweskin has been substantially and materially involved in significant development, standards, zoning, facilities, throughout his 45 years of residency in the community. His (4) children attended CUSD schools (Concordia, Shorecliffs, San Clemente High School) and through that he has coached baseball, softball, soccer, and basketball for the majority of that period as well as providing leadership for the organizations that provided those opportunities.;
Thank you,
City of San Clemente, CA
This is an automated message generated by Granicus. Please do not reply directly to this email. 20 Attachment 3

CITY OF SAN CLEMENTE

WALL OF RECOGNITION
(Summary of Policy)
In recognition of the outstanding efforts of individuals who dedicate time and effort to the betterment of the community, the City of San Clemente has established a Wall of Recognition, located in the lobby of the Community Center, 100 North Calle Seville. The contributions and selfless efforts of these individuals have made the City of San Clemente a more productive and enjoyable place to live, work and play.

In February of each year, the City accepts nominations, from non-profit organizations or groups consisting of 10 or more individuals, of any person who meets the qualifications, as listed below, to be recognized on the Wall of Recognition. A review committee, comprised of a representative of the City Council, the Beaches, Parks and Recreation Commission, the Human Affairs Committee, City staff, and past recipients of the award reviews the applications and makes a recommendation to City Council. The recipient chosen is permanently honored on the Wall with a plaque describing the contributions of the individual.

Guidelines for Sponsorship
In order for a nominee to be considered for the Wall of Recognition, he/she must be sponsored by a group in the following manner:
a. Non-Profit Organization: The nominee is sponsored by an organization registered with the State of California as a not-for-profit community organization, exempt under Section 501 (c) (3) of the Internal Revenue Code; or b. Consensus: The nominee is sponsored by a minimum of 10 individuals whose primary residences are in the City of San Clemente.

Qualifications of the Nominee to be Recognized on the Wall of Recognition a. The nominee must be a resident (primary residence) of the City of San Clemente for a minimum of 10 years.
b. Service to the community must have been performed in the City or can be adequately shown to have directly benefited the City.
21 Wall of Recognition Policy

Submittal Requirements
The following items shall be included in the request to recognize a nominee on the Wall of Recognition. The request shall be limited to one (1) single-sided 8 1/2" by 11" typewritten page.
a. Name, address and age of individual nominated.
b. Name and address of the sponsor(s) and the name and address of the contact person who will represent the sponsor. Only one individual shall be listed as the contact person. For nominees being sponsored by a consensus group, the list of sponsoring individuals can be submitted on a separate sheet of paper. c. Length of time the nominee has resided in the City (primary residence). d. Services provided by the nominee that benefited the community and length of time they were provided. Estimate the number of hours the nominee spent in the provision of these services.
e. A description of why the services provided by the nominee were of value to the community and why the sponsor considers the nominee to be ideal for the Wall of Recognition. The sponsor shall be responsible to verify the accuracy of the information provided.

Application Deadline
Written nominations may be submitted to the Beaches, Parks and Recreation Department, 100 N.

Calle Seville, San Clemente, CA 92672. The deadline for submittals is 5:00 p.m. on the last Thursday of February each year. Submittals received after the deadline will be returned to the sponsor unopened.

Should you need further clarification regarding qualification and submittal requirements, please call the Beaches, Parks and Recreation Department at (949) 361-8237. 22 San Clemente Wall of Recognition Honorees
1995 Max Berg
Leo F. Fessenden
Anthony R. “Tony” DiGiovanni
William A. “Mac” McGilligan
Richard Thomas Steed
Arlie Waterman
1996 Don R. McCanne, M.D.

Lee Steelman
1997 Dorothy Fuller
1998 Jan Sener
1999 R. Stan Manning
Eleanor Yutzi
2000 Dick Arons
Peggy Stroud
2001 Ralph Klaasen
2002 Woodrow “Woody” Chesney Stingley
2003 Wilma Bloom
2004 Jim Johnson
2005 Julie DiGiovanni
2006 Richard “Rod” Rodriguez
Agnes Nesbitt
2007 Pete McKenzie
Jim Holbert
2008 Rex Tyner
2009 Ann and Don Hansen
2010 Bertha Henry Taylor
2011 Joe and Mary Anna Anderson
2012 Dr. William “Bill” Thomas
2013 Tony Carbonara
2014 Ruth DeNault
2015 Betty Limberg
Jim Nielsen
2016 Robert “Bob” Hayden
2017 Gus Gialamas, MD
Peggy Vance
2018 Lou Leto
2019 Lori Donchak
2020 Ed Stewart
2021 Don Glasgow
Lisa Spinelli
2022 Fred Swegles
Don Brown
2023 Beth Apodaca
2024 A. John Dorey
Dick Veale
2025 Edward R. Kweskin
Attachment 4
23 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: B.
24 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 8A.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e
PUBLIC HEARING – SETTING VOLUNTARY DONATION FEES FOR THE C.A.R.E. (CELEBRATE, ACKNOWLEDGE, REMEMBER, ENHANCE) PROGRAM SUPPORTING

PUBLIC SPACE AMENITIES AT PARKS, BEACHES, TRAILS, SIDEWALKS, AND THE

MUNICIPAL GOLF COURSE, APPROVING THE PROGRAM AND RELATED POLICY AND

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

There is no negative fiscal impact to the City. The proposed fees are voluntary and structured to fully recover the cost of materials, installation, and long-term maintenance of the donated amenities.

Summary:

Staff recommends that the City Council conduct a public hearing and approve two proposed voluntary donation fees for the City’s C.A.R.E. (Celebrate, Acknowledge, Remember, Enhance) Program:

1. An increase in the existing voluntary donation fee from $5,000 to $7,000 for commemorative benches and picnic tables installed in City parks.

2. The establishment of a new C.A.R.E. donation opportunity for the San Clemente Municipal Golf Course, allowing for the voluntary donation of benches, drinking fountains, and other select amenities. The proposed bench fee is recommended at $3,500; and the drinking fountains/water refill stations are recommended at $8,250. Custom plaques will be available on all donations.

Participation in this program is entirely voluntary and designed to offer residents and supporters a meaningful way to contribute to the enhancement of San Clemente’s parks and recreation infrastructure. The donation amount covers the base cost of the bench and plaque and further accounts for general maintenance over a 10-15 years life span, to include:
 Concrete pad establishment/path of travel
 Graffiti removal
 Surface cleaning/sealing
 Bolt and footing inspection/re-tightening
 Plaque replacement (if applicable)
 Occasional repainting of accessories (if present)
25 Meeting Date: August 5, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 2
A Policy is proposed for approval, as well, to formalize the program and establish a succinct set of expectations and guidelines for administration.

Background:

The C.A.R.E. Program was originally adopted by the City Council in July 2014 to create a formalized, transparent process for public donations of amenities such as benches and picnic tables in City parks. Prior to 2014, donations were handled on a case-by-case basis without a structured policy, often resulting in inconsistencies in design, location, and cost recovery.

The program was designed around four key values:
 Celebrate a special event or milestone
 Acknowledge an achievement or individual
 Remember a loved one
 Enhance public spaces with lasting amenities
Since its implementation, the C.A.R.E. Program has been administered by the Beaches, Parks and Recreation Department, which oversees an average of 10-15 donations annually. These donations have historically covered the cost of high-quality, uniform amenities that are installed and maintained by City staff.

The current $5,000 donation amount has not changed since the program’s inception. However, over the past decade, material costs, fabrication, labor, and maintenance expenses have increased substantially. To maintain the program’s integrity and ensure full cost recovery, staff recommends increasing the donation amount to $7,000 for both benches and picnic tables. The updated fee reflects the true cost of materials and labor while continuing to offer donors a welldesigned, lasting contribution to San Clemente’s public spaces.

Expansion to the San Clemente Municipal Golf Course
In addition to the citywide program, staff has developed a new C.A.R.E. donation opportunity for the San Clemente Municipal Golf Course. If approved by the City Council, this new offering would allow interested individuals to donate select amenities, initially including benches and drinking fountains, for placement throughout the course.

The proposal was reviewed and unanimously recommended for approval by the Golf Course Committee at its regular meeting on May 1, 2025. The Committee supported offering a bronzefinish bench (Figure 1 below) with a standardized plaque design (Figure 2 below) and reviewed appropriate locations to ensure alignment with golf operations and course aesthetics. A total of 45 locations will be available throughout the course, including at tee boxes and all practice facilities.

They will be sold on a first come, first serve basis and will be guaranteed for a lifespan of 10 years.
26 Meeting Date: August 5, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 3
Figure 1. Proposed bench style and color.

Figure 2. Sample plaque layout and style.

The recommended plaque size is 3” x 12” and accommodates the following layout: Maximum of 4 lines; and 61 letters with uppercase & lower case per line (Including spaces).

Drinking fountains were also identified as a high-value amenity that would enhance the course’s accessibility and user experience. Staff recommends seeking donations for up to 4 fountains/water bottle refill stations with an estimated price of $8,250.

As with the citywide program, all donations under the Golf Course C.A.R.E. initiative would be voluntary and subject to design and placement approval by City staff.

Council Options:
 After conducting the public hearing, adopt Resolution No. 25-106, which will approve the increase in the C.A.R.E. Program donation amount to $7,000; and establish a new voluntary donation opportunity through the C.A.R.E. Program for the San Clemente Municipal Golf Course, including benches ($3,500), drinking fountains ($8,250); and approve Policy No. 702- 8, entitled C.A.R.E. Public Amenity Donation Program.
 Modify and Approve the Donation Fees
 Direct staff to provide additional information or return with a revised proposal.  Take no action, thereby maintaining the existing C.A.R.E. Program structure and donation amounts without expanding to the golf course.
27 Meeting Date: August 5, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 4
Environmental Review/Analysis:

The proposed actions will result in the installation of minor park and golf course amenities (such as benches or drinking fountains) and such actions are categorically exempt under CEQA Guidelines Section 15301 (Existing Facilities) and Section 15311 (Accessory Structures), as they involve the installation of minor accessory structures in existing public facilities with negligible or no expansion of use.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council:

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

2. After conducting the public hearing, Adopt Resolution No. 25-106, which will:
a. Determine that the projects are categorically exempt under CEQA Guidelines Section 15301 (Existing Facilities) and Section 15311 (Accessory Structures); b. Increase in the C.A.R.E. Program donation amount to $7,000 for benches and picnic tables placed in City parks, beaches, trails, and other public spaces; c. Establish a new voluntary donation opportunity through the C.A.R.E. Program for the San Clemente Municipal Golf Course and set the donation amount for benches at $3,500 and for drinking fountains/water refill stations at $8,250; and d. Adopt Policy No. 702-8, entitled C.A.R.E. Public Amenity Donation Program. ..end
Attachment:

1. Resolution No. 25-106

2. Proposed Policy No. 702-8, C.A.R.E. Public Amenity Donation Program Notification:

Golf Course Committee
Public Hearing Notice –San Clemente Times, Dated July 17, 2025 and July 31, 2025. 28 Attachment 1
RESOLUTION NO. 25-106

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, SETTING THE VOLUNTARY
DONATION FEE FOR THE C.A.R.E. (CELEBRATE,

ACKNOWLEDGE, REMEMBER, ENHANCE) PROGRAM

FOR PARKS, BEACHES, TRAILS, SIDEWALKS,

APPROVING A NEW DONATION PROGRAM FOR THE SAN

CLEMENTE MUNICIPAL GOLF COURSE, SETTING THE

NEW VOLUNTARY DONATION FEES, ADOPTING A

RELATED POLICY AND FINDING THE ACTIONS

CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT UNDER CEQA
GUIDELINES SECTION 15301 (EXISTING FACILITIES) AND
SECTION 15311 (ACCESSORY STRUCTURES)
WHEREAS, the City Council of the City of San Clemente originally adopted the C.A.R.E. Program on July 15, 2014 to provide a structured and consistent approach to the donation of public amenities in City parks; and
WHEREAS, the C.A.R.E. Program offers community members an opportunity to contribute to the beautification and improvement of public spaces by voluntarily donating commemorative benches, picnic tables, and other amenities; and WHEREAS, since its inception, the program has maintained a flat voluntary donation fee of $5,000, despite increases in the cost of materials, labor, and maintenance; and WHEREAS, the Beaches, Parks and Recreation Department recommends increasing the voluntary donation amount for park benches and picnic tables to $7,000 to ensure full cost recovery; and
WHEREAS, the Department also recommends expanding the C.A.R.E. Program to include a new voluntary donation opportunity at the San Clemente Municipal Golf Course, with approved amenities, including benches and drinking fountains/water refill stations; and WHEREAS, the Golf Course Committee reviewed and unanimously recommended approval of the new donation program for amenities at the Golf Course, including the proposed fees, at its May 1, 2025, meeting; and
WHEREAS, participation in the C.A.R.E. Program is entirely voluntary and is not imposed as a requirement on any member of the public; and WHEREAS, a duly noticed public hearing was held on August 5, 2025 during which any member of the public wishing to be heard on the issue of setting donation fees in connection with the C.A.R.E. Program was heard; and
WHEREAS, the amount of the proposed donation fees do not exceed the cost of installing and maintaining the amenities.
29 Resolution No. 25-106 Page 2
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:

SECTION 1. That the foregoing recitals are true and correct and incorporated fully herein as findings.

SECTION 2. That it is hereby determined that the actions set forth in this resolution will result in the installation of minor park and golf course amenities (such as benches and drinking fountains) and that, based on a review of the record as a whole, such actions are hereby determined to be categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301 (Existing Facilities) and Section 15311 (Accessory Structures), as they involve the installation of minor accessory structures in existing public facilities with negligible or no expansion of use and no possibility of a direct or foreseeable indirect substantial adverse impact on the environment.

SECTION 3. That the increase in the voluntary donation amount under the C.A.R.E.

Program from $5,000 to $7,000 for benches and picnic tables placed in City parks, beaches, trails, and other public spaces is hereby adopted, approved and set.

SECTION 4. That a new voluntary donation opportunity through the C.A.R.E.

Program for the San Clemente Municipal Golf Course is hereby established with the donation amount for benches adopted, approved and set at $3,500 and with the donation amount for drinking fountains/water refill stations adopted, approved and set at $8,250.

SECTION 5. That Policy No. 702-8, entitled "C.A.R.E. Public Amenity Donation Program," which outlines the procedures, standards, and eligible amenities for participation in the program is hereby adopted.

SECTION 6. That this resolution shall become effective immediately upon adoption.

SECTION 7. That City staff is authorized and directed to take such actions as are necessary and proper to implement the C.A.R.E. Public Amenity Donation Program and accomplish the purposes of this resolution.

SECTION 8. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California 30 Resolution No. 25-106 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-106 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
31 POLICY AND PROCEDURE

1.0 PURPOSE:

1.1 To establish consistent guidelines for the City of San Clemente’s C.A.R.E. (Celebrate, Acknowledge, Remember, Enhance) Amenity Donation Program.

1.1.1 The purpose of the C.A.R.E. Program is to provide opportunities for individuals, families, organizations, and businesses to donate amenities that enhance the public
experience in City parks, beaches, trails, sidewalks, and the San Clemente Municipal Golf Course.
a. Recognize or commemorate individuals, events, or
milestones.
b. Beautify and improve public spaces.
c. Ensure consistency in design, quality, and placement of donated amenities.
d. Provide full cost recovery for donated infrastructure. e. Offer a transparent, voluntary donation process aligned with City policies.

1.2 To implement donation fee structures based on current costs of materials, labor, and installation.

1.3 To allow flexibility in amenity offerings based on site conditions, availability, and community needs.

1.3.1 Expand the C.A.R.E. Program to include the San Clemente Municipal Golf Course.
a. Define specific locations and limits for amenity
placements at the Golf Course.

Subject: C.A.R.E. Public Amenity
Donation Program
Index: Beaches, Parks and
Recreation
Number: 702-8
Effective Date: August 6, 2025 Prepared By: Beaches, Parks & Recreation Department
Supersedes: N/A Approved By:

Attachment 2
32 2.0 ORGANIZATION AFFECTED:

2.1 Beaches, Parks and Recreation Department

2.1.1 Responsible for program administration, review of donation requests, procurement, installation, maintenance, and donor communication.

2.2 Public Works Department – Maintenance Services Division

2.2.1 Responsible for installation, maintenance, and suggestions on location viability.

3.0 REFERENCES:

3.1 C.A.R.E. Program Staff Reports – July 15, 2014; August 5, 2025

3.2 Golf Course Committee Report & Recommendation – May 1, 2025

4.0 POLICY:

4.1 The C.A.R.E. Program shall operate as a voluntary donation program open to individuals and organizations.

4.1.1 The following donation fees are established:
a. Park/Citywide Benches and Picnic Tables – $7,000
b. Golf Course Benches – $3,500
c. Golf Course Drinking Fountains/Water Refill Stations – $8,250

4.1.2 All donations include a custom plaque option (standardized format), pending approval by City staff.

5.0 PROCEDURE:

5.1 Donation Application And Review Process

5.1.1 Donors shall submit an online or paper application to the Beaches, Parks and Recreation Department.
a. Staff will review applications for appropriateness, design compliance, and available locations.
b. Approved donations will be scheduled for procurement and installation by City staff.
c. Donation plaques must follow standard format and content rules.
d. Golf Course amenities are available at designated
locations (Exhibit “A”) only and sold on a first-come, firstserved basis. e. Donated amenities will be maintained by the City for a guaranteed lifespan, as follows:
33  Benches and Picnic Tables located in coastal zone
(including beaches and coastal parks): 10 years
 Benches and Picnic Tables located in inland
locations (including parks, trails, and the golf course):
15 years
f. Donors will be notified when an amenity reaches the end of its guaranteed term and may be offered an opportunity to renew or replace the amenity at the current donation rate.
g. Staff are granted authority to modify amenities in all locations based on changes in environment, adverse
impacts to accessibility, and any other concern that should be addressed based on the best interest of the City, or the safety, health, and welfare of residents.

5.2 Bench Styles and Plaque Requirements

5.2.1 The City has established standard bench styles and plaque formats for use in the C.A.R.E. Amenity Donation Program to ensure consistency, durability, and compatibility with
surrounding infrastructure.
a. Golf Course Benches
 Style: DuMor Style 57, aged bronze finish
 Plaque Type: Side-mounted metal plaque
 Plaque Size: 3” x 12”
 Plaque Text Limitations: Maximum of 4 lines; Up to 61 characters per line (including spaces, uppercase and
lowercase letters).
 Benches will be installed at pre-determined locations throughout the golf course and available on a firstcome, first-served basis. b. All Other Area Benches (parks, trails, beaches, and other public locations)
 Style: Pasadena Series (Quikrete); 84” Long; QCP
Brown color
 Plaque Options (Sides only):
o Up to 4 lines of text
o Up to 24 characters per line (including spaces)
 Edge Inscription (for bench or picnic table seating
edge)
34  Single line of engraved text
 Maximum of 42 characters including spaces
c. All text is subject to staff review and is limited to recognizing or commemorating individuals, events, or
milestones and may not include statements inconsistent
with City policy.
d. Plaque or inscription language must be submitted and approved as part of the donation application. Edits may be required to meet policy, format or character limitations. e. Donors will not be permitted to modify plaques after installation.

6.0 DEFINITIONS:

6.1 C.A.R.E. Program: A voluntary donation program managed by the Beaches, Parks and Recreation Department that supports the enhancement of public spaces through donated physical amenities.

6.1.1 Eligible amenities include benches, picnic tables, drinking fountains, and other approved items installed at City parks, beaches, trails, sidewalks, and the municipal golf course. 35 EXHIBIT “A”
San Clemente Municipal Golf Course Amenity Standard Service (By Location) LOCATION # BENCHES # DRINKING FOUNTAINS
Driving Range 5 --
Chipping Area 2 --
Practice Green 1 --
Hole #1 – Tee Box(es) 2 --
Hole #2 – Tee Box(es) 2 --
Hole #3 – Tee Box(es) 2 --
Hole #4 – Tee Box 1 --
Hole #5 – Tee Box 1 1
Hole #6 – Tee Box(es) 2 --
Hole #7 – Tee Box(es) 3 --
Hole #8 – Tee Box(es) 2 --
Hole #9– Tee Box(es) 3 --
Hole #10 – Tee Box 1 1
Hole #11 – Tee Box(es) 2 --
Hole #12 – Tee Box(es) 2 --
Hole #13 – Tee Box(es) 3 1 at Restroom
Hole #14 – Tee Box(es) 3 --
Hole #15 – Tee Box(es) 3 --
Hole #16 – Tee Box(es) 3 1 at Restroom
Hole #17 – Tee Box(es) 2 --
Hole #18 – Tee Box(es) 2 --
Total: 47 4
36 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 10A.

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

CONSIDERATION OF IN-HOUSE OPERATIONS FOR SAN CLEMENTE MUNICIPAL GOLF COURSE PRO SHOP SERVICES ..body
Fiscal Impact:

There is no immediate fiscal impact associated with the action recommended in this report.

However, staff anticipates presenting detailed budget and capital projections when returning with the full proposal. Early analysis suggests potential for increased revenue retention and improved cost recovery under the proposed model.

Summary:

Staff recommends that the City Council authorize staff to develop and return with a comprehensive proposal for transitioning the San Clemente Municipal Golf Course Pro Shop operations from a contracted model to a City-operated model beginning January 1, 2027, following the expiration of the current contract on December 31, 2026.

Background:

The City of San Clemente currently contracts with Dave Cook for Pro Shop and instructional services at the Municipal Golf Course. This contract is set to expire on December 31, 2026. In preparation for this transition, staff has conducted a preliminary assessment of in-house operational feasibility, including staffing, equipment needs, instructional programming, and retail operations.

The goal of transitioning to in-house operations is to provide greater consistency in customer service, improve program integration, increase revenue retention, and align course operations more directly with City recreational and community goals.

The proposed operational framework would bring Pro Shop operations, golf instruction, and associated retail under direct City management within the Beaches, Parks & Recreation Department. Key elements of the in-house model include:
 Staffing Model: A combination of full-time and hourly staff would support Pro Shop and Starter Office operations. This includes a Golf Professional, customer service personnel, and seasonal/hourly support for the range and starter.
 Equipment & Infrastructure: Staff will assess leasing options for a golf cart fleet and update range ball vending machines to modern, POS-integrated models. Inventory systems and operational redundancies would ensure efficiency and reliability. 37 Meeting Date: August 5, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 2
 Instructional Programming: Golf lessons, junior camps, and clinics would transition to the City's existing Independent Contract Instructor model, shifting revenue from a 90/10 split (current model) to a 70/30 split in the City’s favor. Programs would be managed by City staff and promoted through official City channels.
 Retail Merchandising: The Pro Shop would offer a focused selection of golf merchandise, managed through the City’s procurement system, with an emphasis on turnover and local vendor engagement.

Staff believes this operational model provides an opportunity to modernize service delivery, enhance community access to recreational golf, and generate additional revenue for the Golf Fund to support the long-term stability of the course.

Council Options:
 Authorize staff to proceed with the development of a full proposal for in-house Pro Shop operations to be returned to City Council at a future date.  Direct staff to explore bidding options for continued third-party operation through a formal Request for Proposal process.
 Provide alternative direction to staff regarding the management structure or timeline for the Golf Course Pro Shop.

Environmental Review/Analysis:

The proposed action is not a project under the California Environmental Quality Act (CEQA), Section 15378 of the CEQA Guidelines, as it constitutes administrative or fiscal activity that does not result in a direct or indirect physical change to the environment.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council direct staff to develop and return with a comprehensive proposal for transitioning the San Clemente Municipal Golf Course Pro Shop operations to an inhouse model upon expiration of the current contract on December 31, 2026. ..end
Attachment:

None
Notification:

Golf Course Committee
38 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 10B.

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

CONSIDERATION OF JOINING THE ASSOCIATION OF CALIFORNIA CITIES, ORANGE

COUNTY DIVISION (ACC-OC)
..body
Fiscal Impact:

The current annual membership fee is $12,209.25 based on a $5,000 base rate and additional dues based on population. The proposed action includes a request for a supplemental appropriation from the General Fund for the amount of $12,209.25 for Account No. 001-203- 44110.

Summary:

The Association of California Cities, Orange County Division (ACC-OC), was organized to represent the interests of Orange County cities on local, regional, state and federal public policy issues. Participation in the Association allows the City of San Clemente to benefit from advocacy services at a reduced cost and with a more collective and stronger voice. Historically, the City of San Clemente was a member of ACC-OC but the membership was allowed to expire during the financial instability caused by the global pandemic.

Background:

The ACC-OC is a member driven advocacy associate governed by an elected Board of Directors that operates as a 501(C)(3) nonprofit organization. Some of the more recent advocacy efforts include representing the Orange County cities’ interests associated with public employee/employer pension stabilization, homelessness, housing and economic development, and residential recovery reform. In addition to legislative advocacy, ACC-OC also supports regional efforts to create financial and operational efficiencies.

There are more than 480 cities in California and 34 cities in Orange County. The ability of any City, especially a relatively small city like San Clemente, to have a meaningful voice at the regional, state or federal level is challenging. Likewise, while it is beneficial for the City to maintain membership in the League of California Cities (CalCities) to be represented on issues that face all municipalities in the State, membership in ACC-OC allows the City to be represented at a more local level when appropriate.

One facet of ACC-OC that is a different model of typical municipal advocacy organizations is the inclusion of corporate members. This connection allows cities to be more connected and collaborative with non-municipal local government entities such as water districts, private businesses, and non-profit organizations that are so critical to the quality of life and operational success of cities. being just one voice out of the hundreds of member cities has limitations. 39 Meeting Date: August 5, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 2
Members of ACC-OC include a majority of the municipalities and numerous special districts and business associates in Orange County. Together, this group has formed an effective coalition to research and address issues facing both public and private entities in the County. Members include:

Municipal Members Corporate Members
Aliso Viejo AIM, ATN, AT&T, Alta Med, AWS, BBK,
Anaheim Burke, Charge Point, Chrysalis, CLA,
Buena Park CEO Leadership Alliance, Cox, CR&R,
Dana Point Cal Optima, CSU Fullerton, Charter
Costa Mesa Communications, Cityside Fiber, Clear
Fountain Valley Advocacy, Crown Castle, Disneyland,
Garden Grove Engie, Faubel Public Affairs, Falck,
Huntington Beach First 5, Goodwill, Great Scott, Hospital Irvine Association of SC, Irvine Ranch Water
Laguna Beach District, Jamboree, Jacob Green &
Laguna Niguel Associates, John Wayne Airport,
Lake Forest County of Orange, Kosmont, MWDOC,
Los Alamitos Metropolitan Water District, Mesa
La Palma Water District, Moulton Niguel Water
Mission Viejo District, National CORE, NDC, Built,
Newport Beach Northstar, OCVibe, OCTA, OC Vector
City of Orange Control, OC Power Authority, OC
Placentia Realtors, OC Sanitation District, OC
San Juan Capistrano Water District, OCMA, Rutan, RWG,
Seal Beach OC Conservation Corps, Santa
Santa Ana Margarita Water District, UCI, So Cal
Stanton Gas, Edison, Tangram, TP&A, TNT
Villa Park Fireworks, WCA, Waste Management,
Westminster Wild Rivers, Woodruff, Yorba Linda
Yorba Linda Water District, Vanir
Council Options:
 Direct the City Manager to take all actions necessary to submit a membership application and payment of annual dues ($12,209.25) to become a member of ACC-OC. If the City Council chooses to become a member agency, the City Council should also select an official ACC-OC representative.
 Continue or table the item and direct the City Manager to provide additional information for consideration by the City Council.
 Direct the City Manager to inform ACC-OC that it is not in the best interest of the City at this time to become members of the ACC-OC.

Environmental Review/Analysis:

This is not a project as defined by the California Environmental Quality Act (CEQA). 40 Meeting Date: August 5, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 3
Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends the City Council direct the City Manager to take all necessary actions to submit an ACC-OC membership application and payment of $12,209.25 for the annual dues, and approve the supplemental appropriation for Account No. 001-203-44110.

Staff further recommends that the City Council appoint the Mayor or another member of the City Council as the official ACC-OC representative.
..end
Attachment:

None.

Notification:

None.
41 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (1)
42 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Tuesday, June 17, 2025
City Council
Adjourned Regular Meeting Minutes
1:00 p.m. - Commission and
Committee Interviews and
Appointments
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.

An Adjourned Regular Meeting of the San Clemente City Council was called to order by Mayor Knoblock on June 17, 2025 at 1:00 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; Laura Campagnolo, City Clerk; Megan Jimenez, Deputy City Clerk

PLEDGE OF ALLEGIANCE
Councilmember Wu led the Pledge of Allegiance.

1. Oral Communications
Amanda Quintanilla narrated a PowerPoint presentation concerning the City's advertising for Commission and Committee vacancies. A hard copy of the presentation is on file with the City Clerk.

2. COMMISSION AND COMMITTEE INTERVIEWS
The City Council announced that they will be conducting interviews in the conference room behind the dais and that members of the public are welcome to be present during the interviews. The City Council also discussed how they will rank the candidates.

A. ARTS AND CULTURE COMMITTEE
Amanda Quintanilla requested that she be considered for the Arts and Culture Committee.

The City Council agreed to allow Amanda Quintanilla to interview for the Arts and Culture Committee.

The City Council interviewed the following candidates:

Tiffany Campbell
Sherman Fowler

43 City Council Adjourned Regular Meeting Minutes June 17, 2025 Shane Hirschman
Roman Kreu (not present to interview)
Ryan Turri (not present to interview)
Amanda Quintanilla (did not submit an application)
Councilmembers cast written ranking sheets to fill three vacancies on the Arts and Culture Committee, which are on file with the City Clerk.

Following submitting ranking sheets to the City Clerk, Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to appoint Tiffany Campbell, Sherman Fowler and Shane Hirschman to the Arts and Culture Committee for terms set to expire June 30, 2027.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
B. BEACHES, PARKS AND RECREATION COMMISSION
The City Council interviewed the following candidates:

Susan Ambrose
Chris Barney
Brian Haskins
Thor Johnson
Sahar Kamali
Edward R. Kweskin
Teri Rousseau (not present to interview)
Laurence Starnes
Councilmembers cast written ranking sheets to fill two vacancies on the Beaches, Parks and Recreation Commission, which are on file with the City Clerk.

Following submitting ranking sheets to the City Clerk, Motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to appoint Brian Haskins and Thor Johnson to the Beaches Parks and Recreation Commission for terms set to expire June 30, 2027.

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

44 City Council Adjourned Regular Meeting Minutes June 17, 2025 C. COMMUNITY SAFETY AND WELFARE COMMITTEE
The City Council interviewed the following candidates:

Cord Bauer
Kelli Gallion-Sholler
Stephen Lamb (not present to interview)
Shannon O'Toole (not present to interview)
James Allen Royer
Charles (Chuck) Seward
Gary Walsh (not present to interview)
Councilmembers cast written ranking sheets to fill three vacancies on the Community Safety and Welfare Committee, which are on file with the City Clerk.

Following submitting ranking sheets to the City Clerk, Motion by Councilmember Wu, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to appoint Kelli Gallion-Sholler, James Allen Royer and Gary Walsh to the Community Safety and Welfare Committee for terms set to expire June 30, 2027.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
D. GOLF COURSE COMMITTEE
The City Council interviewed the following candidates:

John Adams (not present to interview)
Rick Divel
Grady Ela
Chris Eldridge (not present to interview)
Marc Veale (not present to interview)
Note: Dave Haack submitted an application, but subsequently withdrew his candidacy.

Councilmembers cast written ranking sheets to fill two vacancies on the Golf Course Committee, which are on file with the City Clerk.

Following submitting ranking sheets to the City Clerk, Motion by Mayor Pro Tem Enmeier, second by Mayor Knoblock, CARRIED 5-0, to appoint Rick Divel and Grady Ela to the Golf Course Committee for terms set to expire June 30, 2027.

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

45 City Council Adjourned Regular Meeting Minutes June 17, 2025 E. INVESTMENT ADVISORY COMMITTEE
The City Council interviewed the following candidates:

Chad Ahearn
Arthur P. Carter
Councilmembers cast written ranking sheets to fill one vacancy on the Investment Advisory Committee, which are on file with the City Clerk.

Following submitting ranking sheets to the City Clerk, Motion by Mayor Pro Tem Enmeier, second by Mayor Knoblock, CARRIED 4-0 (Councilmember Cabral abstaining), to appoint Chad Ahearn to the Investment Advisory Committee for a term set to expire June 30, 2027.

AYE: Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
ABSTAIN: Cabral
F. PLANNING COMMISSION
The City Council agreed to allow M. Steven Camp to interview for the Planning Commission
The City Council interviewed the following candidates:

Brett Freeman
Patrick Griffin (not present to interview)
Thor Johnson
Christopher Samuelson (not present to interview)
Jagjit (Jay) Singh Sohi
M. Steven Camp (did not submit an application)
Councilmembers cast written ranking sheets to fill three vacancies on the Planning Commission, which are on file with the City Clerk.

Following submitting ranking sheets to the City Clerk, Motion by Councilmember Cabral, second by Mayor Knoblock, to appoint M. Steven Camp, Brett Freeman, and Thor Johnson to the Planning Commission for terms set to expire June 30, 2027.

46 City Council Adjourned Regular Meeting Minutes June 17, 2025 Substitute Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 4-1 (Mayor Knoblock voting NOE) to appoint M. Steven Camp and Brett Freeman to the Planning Commission for terms set to expire June 30, 2027.

AYE: Cabral, Enmeier, Loeffler and Wu
NOE: Mayor Knoblock
Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, to re-open the application period for the Planning Commission until August 4, 2025 to recruit for one open position on the Planning Commission.

Substitute Motion by Councilmember Wu, second by Councilmember Cabral, CARRIED 3-2 (Mayor Pro Tem Enmeier and Councilmember Loeffler voting NOE) to appoint Patrick Griffin to the Planning Commission for a term set to expire June 30, 2027.

AYE: Cabral, Wu and Mayor Knoblock
NOE: Enmeier and Loeffler
The City Council appointed M. Steven Camp, Brett Freeman and Patrick Griffin to the Planning Commission for terms set to expire June 30, 2027.

3. Adjournment
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to adjourn at 5:18 p.m. to a Special and Regular City Council Meeting scheduled to take place on June 17, 2025. Closed Session will begin at 5:00 p.m. The Business Meeting will commence at 5:30 p.m. The meeting will take place at City Hall Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

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

47 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (2)
48 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Tuesday, June 17, 2025
City Council
Special and Regular Meeting Minutes
5:00 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 Special and Regular Meeting of the San Clemente City Council was called to order by Mayor Knoblock on June 17, 2025 at 5:18 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 (SPECIAL MEETING)
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to recess to Closed Session at 5:18 p.m. to discuss the following:

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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Closed Session concluded at 5:32 p.m.

BUSINESS MEETING
The Business Meeting reconvened at 5:36 p.m. with all City Councilmembers present.

49 City Council Special and Regular Meeting Minutes June 17, 2025

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

PLEDGE OF ALLEGIANCE
Councilmember Cabral led the Pledge of Allegiance.

1. Special Presentations
None.

2. Council Member Reports
Mayor Knoblock:
· Recognized Rick Anderson, retired San Clemente Police Department Reserve Officer, presented his retirement badge in recognition of his service to the City of San Clemente.

Councilmember Wu:
· Attended the Southern California Association of Governments (SCAG) Transportation Committee meeting on June 5, 2025.
· Attended the San Clemente High School Graduation Ceremony on June 5, 2025.
· Recognized Public Works Director/City Engineer Rebensdorf for working with the Orange County Transportation Authority (OCTA) to restore the Americans with Disabilities Act (ADA) accessable railroad crossing at the Pier.

Councilmember Loeffler:
· Recognized Marine Safety for their heroic lifesaving action at the pier. · Toured San Clemente Villas construction on June 4, 2025. · Attended a telephone conference concerning a hotel project on June 4, 2025. · Attended a San Clemente Chamber of Commerce meeting on June 5, 2025. · Attended the San Clemente High School graduation ceremony on June 5, 2025.
· Attended the Ribbon Cutting for Shorecliffs Golf Course on June 6, 2025. · Attended the 15 Year Anniversary Ribbon Cutting for Riders Club Restaurant on June 6, 2025.
· Attended the Homeless Collaborative Meeting on June 9, 2025. · Attended a briefing with the City Manager on June 9, 2025. · Attended the United States Marine Corps Change of Command Ceremony at Camp Pendleton on June 11, 2025.
· Attended the Farmers & Merchants 19 Year Anniversary on June 11, 2025. · Attended the Friends of the Beaches, Parks and Recreation Foundation Meeting on June 12, 2025.
· Attended the San Clemente Chamber of Commerce membership orientation

50 City Council Special and Regular Meeting Minutes June 17, 2025 on June 13, 2025.
· Attended the Ribbon Cutting for National Notary Partners on June 13, 2025. · Attended a briefing with the City Manager on June 13, 2025. · Attended the Junior Lifeguard Opening Session 1 on June 16, 2025. · Attended a briefing with the City Manager and City Attorney on June 16, 2025.

Councilmember Cabral:
· Attended a meeting with the Orange County Transportation Authority (OCTA) concerning Measure M funding on June 5, 2025.
· Attended the Cal Cities OC Division Board of Directors meeting on June 13, 2025.
· Attended the San Onofre Nuclear Generating Station (SONGS) Community Engagement Panel meeting on June 12, 2025.

Mayor Pro Tem Enmeier:
· Attended the San Clemente High School Graduation Ceremony on June 5, 2025.
· Attended the Coastal Animal Services Authority (CASA) Joint Powers Meeting on June 16, 2025.
· Announced that June is adopt a cat month and CASA is offering discounted adoption fees for cats older than one year.
· Announced that CASA is holding its summer reading program and encouraged the community to participate.

3. Oral Communications (Part 1)
Matthew Flesher, San Clemente, spoke in support of the revocation of the City Council's previous direction at the May 20, 2025 City Council meeting as it relates to short term lodging units.

Reva Buck spoke on the ongoing issues concerning tree heights exceeding the allowed 17 feet within the Broadmoor Homeowners Association.

Ron Trosper, San Clemente, commented on tree roots damaging the sidewalk and curbs on Avendida Del Mar.

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.

51 City Council Special and Regular Meeting Minutes June 17, 2025

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

No reportable action concerning:

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.

7. Staff Communications
None.

8. Public Hearings
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)
Mayor Knoblock opened the Public Hearing.

Community Development Director Atamian reported that the applicant withdrew their application to establish two short term rental units and one managers unit at 166 Avenida Aragon.

James Hamilton, San Clemente, spoke in opposition to the proposed two short term rental units and one managers unit at 166 Avenida Aragon.

Amanda Quintanilla narrated a Powerpoint presentation concerning the current conditions at the property. A hard copy of the presentation is on file with the City Clerk.

Larry Culbertson, spoke in opposition to the proposed two short term rental units and one managers unit at 166 Avenida Aragon.

Kathy Ward, San Clemente, commented on the legality of establishing the property as a short term apartment rental (STAR).

Louisa Spinelli, San Clemente, spoke on the current property conditions.

52 City Council Special and Regular Meeting Minutes June 17, 2025 There being no others desiring to speak, Mayor Knoblock closed the Public Hearing.

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

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

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
Community Development Director Atamian and City Planner Lightfoot narrated a PowerPoint presentation entitled "Reconsideration of STLU Amortization and TOT-related Opportunities" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Jean Waddell, San Clemente, commented on her short term lodging unit; requested the City Council consider approval of short term lodging units that do not receive complaints from neighbors.

David Monk, San Clemente, requested that the proposed rooftop bar for the hotel at the outlets be tabled until residents can be assured that their views are not impacted; urged the City Council to have story poles installed to determine impacts to the residents.

Tim McGrath spoke in support of the continuation of short term lodging units; opined on transient occupancy tax (TOT) revenue.

Colby Wright commented on economic impacts of short term lodging units; opined on rights of property owners.

Denise Zivolich, San Clemente, requested story poles for the proposed rooftop bar at the hotel at the outlets.

Amanda Quintanilla spoke in support of revocation of the City Council's previous action; spoke in opposition to the gateway overlay.

Don Hickman, San Clemente, on behalf of the Marblehead Master Homeowners

53 City Council Special and Regular Meeting Minutes June 17, 2025 Association Board, spoke in opposition of the proposed hotel project at the outlets as it relates to the 5th floor rooftop bar.

Douglas MacLeith spoke in support of short term lodging units that are compliant with the rules and regulations.

Joe Janis spoke in support of the City Council adhering to the settlement agreement concerning short term lodging units.

Bradley Wright requested that the City Council consider grandfathering short term lodging units impacted by the settlement agreement.

Kathy Ward, San Clemente, spoke in support of revocation of the previous City Council Action concerning short term lodging units; urged the City Council to follow the process for approval of projects.

Bart DeCoro, San Clemente, spoke in opposition of the proposed 5th floor bar at the hotel at the Outlets.

Helena DeCoro, San Clemente, spoke in opposition of the proposed 5th floor bar at the hotel at the Outlets.

Lynn Sobel, San Clemente, spoke in opposition of the proposed 5th floor bar at the hotel at the Outlets; urged the City Council to install story poles to determine impacts to residents.

Chris Connolly, San Clemente, spoke in opposition of short term lodging units; urged the City Council to honor the settlement agreement in regards to short term lodging units.

Motion by Mayor Pro Tem Enmeier, second by Councilmember Cabral, to:

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 (STLU's) 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

54 City Council Special and Regular Meeting Minutes June 17, 2025 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.

Substitute Motion by Councilmember Wu, DIED FOR A LACK OF SECOND, to:

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 (STLU's) 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. Bifurcate the initiation 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

55 City Council Special and Regular Meeting Minutes June 17, 2025 deemed complete, even if they are completed during the review process by staff, and apply current 300-foot minimum separation requirements.

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

Adopt Resolution No. 25-85, which will:

1. Direct staff to return to the City Council to initiate a zoning amendment related to the amortization process of short-term lodging units (STLU's) and consideration of hotel-development opportunities for enhancement of transient occupancy tax revenue and evaluate stricter enforcement.

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.

The original Motion by Mayor Pro Tem Enmeier, second by Councilmember Cabral, was considered and CARRIED 4-1 (Councilmember Wu voting NOE), to:

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 (STLU's) and consideration of hotel-development opportunities for enhancement of transient occupancy tax revenue.

56 City Council Special and Regular Meeting Minutes June 17, 2025

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.

AYE: Cabral, Enmeier, Loeffler and Mayor Knoblock
NOE: Wu
Meeting Recess
The City Council meeting recessed at 7:36 p.m. and reconvened at 7:42 p.m. with all City Councilmembers present.
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
Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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

57 City Council Special and Regular Meeting Minutes June 17, 2025 REVENUE AND FINANCE, CHAPTER 3.40, SECTIONS 3.40.050 AND

3.40.080 RELATING TO PURCHASING PROCEDURES.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10C. ADOPTION OF SECTION 115 PENSION INVESTMENT POLICY
Chief Administrative Officer Brower and City Treasurer Smith reviewed the contents of the Administrative Report and responded to City Council inquiries.

Motion by Councilmember Wu, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to adopt the Section 115 Pension Investment Policy Number 202-3, effective June 17, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
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
City Treasurer Smith narrated a PowerPoint presentation entitled "City of San Clemente PARS 115 Trust" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

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

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.

58 City Council Special and Regular Meeting Minutes June 17, 2025

4. Authorize and direct staff to take such other and further actions and execute such other and further documents as may be necessary to accomplish the purposes of this resolution.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10E. CONSIDERATION OF A RESOLUTION CONCERNING THE SAN CLEMENTE

LIFEGUARD STATUE MAINTENANCE AGREEMENT AND CLARIFICATION

OF COUNCIL INTENT REGARDING MAINTENANCE RESPONSIBILITIES Greg Hulsizer, San Clemente Lifeguard and Junior Guard Foundation, spoke in favor of the maintenance agreement.

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

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.

4. Modify maintenance agreement language for section 1-2 GENERAL SCOPE OF SERVICES; INSTALLATION AND MAINTENANCE subsection (c) will include language that will require the City to be consulted and approve any modification to the plaque(s) and/or installation of additional donor plaques.

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

59 City Council Special and Regular Meeting Minutes June 17, 2025

11. Consent Calendar
The City Council removed items 11P and 11V from the Consent Calendar for discussion.

A. City Council Minutes
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF JUNE 3, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
B. Commission/Committee Minutes
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to 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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
C. Warrant Register
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:
(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
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

60 City Council Special and Regular Meeting Minutes June 17, 2025 Payroll Register
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
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
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to 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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11E. NOTICE OF COMPLETION - CITY HALL STANDBY GENERATOR ADDITION

AND ELECTRICAL DISTRIBUTION SYSTEM UPGRADE
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

61 City Council Special and Regular Meeting Minutes June 17, 2025

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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11F. CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2023-112, 229 AVENIDA MONTEREY CONDOMINIUM SUBDIVISION
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

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

62 City Council Special and Regular Meeting Minutes June 17, 2025 11G. CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2018-137, 3 LOT SUBDIVISION AT 143 NORTH LA ESPERANZA
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.....

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11H. CONSIDERATION OF A RESOLUTION APPROVING FINAL PARCEL MAP 2018-172, 405 PASADENA COURT CONDOMINIUM SUBDIVISION
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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

63 City Council Special and Regular Meeting Minutes June 17, 2025 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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
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
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

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

64 City Council Special and Regular Meeting Minutes June 17, 2025 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
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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 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.

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

65 City Council Special and Regular Meeting Minutes June 17, 2025 11K. CONTRACT AWARD - ENGINEERING SERVICES RELATED TO THE

CALAFIA COMPLETE STREETS, ACCEPTING GRANT FUNDING AND

MAKING A SUPPLEMENTAL APPROPRIATION RELATED THERETO
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

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

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

SERVICES
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11M. CONTRACT AWARD - FY 2026 ARTERIAL STREET IMPROVEMENT

PROGRAM, AND FINDING THE PROJECT CATEGORICALLY EXEMPT

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

Adopt Resolution No. 25-96, which will:

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

67 City Council Special and Regular Meeting Minutes June 17, 2025 Program, in an amount not to exceed $714,938, in a form substantially similar to Contract No. 25-37 (Attachment 3).

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11N. CONTRACT AWARD - PURCHASE OF ARCTICWOLF SECURITY

SOFTWARE AND SERVICES
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
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
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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

68 City Council Special and Regular Meeting Minutes June 17, 2025 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).

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11Q. CONSIDERATION OF A RESOLUTION APPROVING A PARKING

AGREEMENT BETWEEN CHABAD JEWISH CENTER AND THE CITY OF

SAN CLEMENTE
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to adopt Resolution No. 25-100, which will 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.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
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
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

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.

69 City Council Special and Regular Meeting Minutes June 17, 2025 AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11S. ACCEPTANCE OF GRANT FROM CALIFORNIA COASTAL COMMISSION,

AUTHORIZING AN APPROPRIATION, AND AWARDING PROFESSIONAL

SERVICES AGREEMENTS
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to 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.

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

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

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.

AYE:

NOE:

Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
None.

70 City Council Special and Regular Meeting Minutes 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
Motion by Mayor Knoblock, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-104, which will:

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

71 City Council Special and Regular Meeting Minutes June 17, 2025 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).

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).

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

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
11P. CONTRACT AMENDMENT - STREET SWEEPING SERVICES FOR ONE

YEAR, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Amanda Quintanilla opined on the cost of street sweeping services; commented on the revenue from parking tickets to offset contract costs.

City Manager Hall will provide the City Council with a memorandum concerning revenue from parking tickets to offset contract costs.

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

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.

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.

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

72 City Council Special and Regular Meeting Minutes June 17, 2025 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
City Clerk Campagnolo announced that a revision to the contract with the Orange County Transportation Authority (OCTA) was placed at the dais for City Council consideration and was made available to the public.

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

Adopt Resolution No. 25-105, which will:

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 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.

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

73 City Council Special and Regular Meeting Minutes June 17, 2025

12. Oral Communications (Part 2)
None.

13. Future Agenda Items
None.

14. Reports
A. City Attorney
None.

B. City Manager
Sidewalk Repairs on Avenida Del Mar
City Manager Hall announced that City Staff will prioritize sidewalk and curb repairs on Avenida Del Mar that have been damaged by tree roots.

Legislative Break
City Manager Hall reported that the City will be taking a legislative break for the month of July and the next City Council meeting will be held on August 5, 2025.

15. Adjournment
Motion by Councilmember Cabral, second by Councilmember Wu, CARRIED 5-0, to adjourn at 8:11 p.m. The next Regular Meeting will be held on August 5, 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.

Please note that the Regular City Council meetings of July 1 and 15, 2025 were previously canceled.

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

74 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

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CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (1)
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2nd Floor
San Clemente, California
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AGENDA REPORT

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CITY COUNCIL MEETING
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AGENDA REPORT

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CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (3)
85 CITY OF SAN CLEMENTE
Investment Advisory Committee Minutes
Regular Meeting – April 28, 2025
A Regular Meeting of the City of San Clemente Investment Advisory Committee was called to order by City Treasurer, Charlie Smith, on April 28, 2025, at 5:30 p.m. This meeting was conducted in the Community Conference Room at City Hall, 910 Calle Negocio, San Clemente. (1) PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Charlie Smith.
(2) ROLL CALL
PRESENT: Investment Advisory Committee Members:

Charlie Smith, Victor Cabral, Art Carter, Jeff Willardson Staff:

Sheryl Mariano, Sandee Chiswick, Melissa Anderson, Brian Brower ABSENT: Matthew Koelliker
PUBLIC: None
(3) APPROVAL OF MINUTES
Motion by Victor, seconded by Jeff to approve the minutes of January 27, 2025.

Approved 4-0.
(4) INVESTMENT REPORT 3
rd QUARTER 2024-25
The third quarter Investment Report was introduced by City Treasurer, Charlie Smith. Jayson Schmitt, Chandler Asset Management representative, reviewed the report with the committee and answered questions. Art moved to approve the 3 rd
Quarter Investment Report, seconded by Jeff. Approved 4-0. (5) SECTION 115 TRUST DISCUSSION
A motion was made by Art, seconded by Jeff, approved 4-0 to hire PARS to manage the assets of San Clemente’s 115 Trust.

A second motion was made by Art, seconded by Victor, approved 4-0 to utilize the Managed Tactical Strategies Program approach for the management of the San Clemente 115 Trust assets.
(6) PUBLIC INPUT
None.
86 Investment Advisory Committee Minutes April 28, 2025 Page 2 (7) ADJOURNMENT
Motion was made by Victor, seconded by Jeff, carried 4-0, to adjourn to a Regular Meeting to be held on July 28, 2025, at 5:30 p.m. at City Hall located at 910 Calle Negocio, San Clemente, California.
_________________________________
Charlie Smith
Chair-Investment Advisory Committee
Future Meeting Dates:

July 28, 2025
October 27, 2025
January 26, 2026
87 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (4)
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910 Calle Negocio
2nd Floor
San Clemente, California
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AGENDA REPORT

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CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (5)

..ag endizedby
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PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF 05-27-2025 ..body ..recommendation
..end
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AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (6)
98 CITY OF SAN CLEMENTE
Investment Advisory Committee Minutes
Special Meeting – May 27, 2025
A Special Meeting of the City of San Clemente Investment Advisory Committee was called to order by City Treasurer, Charlie Smith, on May 27, 2025, at 5:30 p.m. This meeting was conducted in the Community Conference Room at City Hall, 910 Calle Negocio, San Clemente. (1) PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Charlie Smith.
(2) ROLL CALL
PRESENT: Investment Advisory Committee Members:

Charlie Smith, Victor Cabral, Matthew Koelliker
Staff:

Andy Hall, Brian Brower, Sheryl Mariano, Sandee Chiswick, Melissa Anderson
ABSENT: Art Carter, Jeff Willardson
PUBLIC: None
(3) SECTION 115 TRUST DISCUSSION
A motion was made by Matthew Koelliker, seconded by Victor Cabral, approved 3-0 to adopt the Investment Policy for the Section 115 Trust. (4) PARS ASSET MANAGEMENT DISCUSSION
A motion was made by Matthew, seconded by Victor, approved 3-0 to adopt the Capital Appreciation option for the asset allocation / risk tolerance for the 115 Trust assets.

A motion was made by Victor, seconded by Matthew, approved 3-0 to select the PFMAM Tactical Strategies option for the asset management option of the 115 Trust assets.

A motion was made by Matthew, seconded by Victor, approved 3-0 to appoint PARS as the 115 Trust Administrator.
(5) PUBLIC INPUT
None.
99 Investment Advisory Committee Minutes May 27, 2025 Page 2 (6) ADJOURNMENT
Motion was made by Victor, seconded by Matthew, carried 3-0, to adjourn to a Regular Meeting to be held on July 28, 2025, at 5:30 p.m. at City Hall located at 910 Calle Negocio, San Clemente, California.
_________________________________
Charlie Smith
Chair-Investment Advisory Committee
Future Meeting Dates:

July 28, 2025
October 27, 2025
January 26, 2026
100
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (7)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR MEETING MINUTES OF JUNE 18, 2025. ..body
Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
101

MINUTES OF THE REGULAR MEETING

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
June 18, 2025 @ 6:00 p.m.

San Clemente City Hall Council Chamber
910 Calle Negocio, San Clemente, CA 92673
Teleconference via www.san-clemente.org

1. CALL TO ORDER
Chair Cosgrove called the Regular Meeting of the Planning Commission of the City of San Clemente to order at 6:01 p.m. The meeting was offered in person at San Clemente City Hall Council Chambers, 910 Calle Negocio, San Clemente, California, 92673, and also via live stream from the City’s YouTube Channel.

2. PLEDGE OF ALLEGIANCE
Commissioner Crandell and his grandson Fletcher Maxwell led the Pledge of Allegiance.

3. ROLL CALL
Commissioners Present: Chair Cameron Cosgrove; Vice Chair M. Steven Camp; Barton Crandell; Scott McKhann; Karen Prescott-Loeffler
Commissioners Absent: Gary McCaughan; and Brent Davis
Staff Present: Zach Rehm, Principal Planner
Christopher Wright, Senior Planner
David Carrillo, Associate Planner
Alexia Gruszczynski, Assistant Planner
Gena Burns, Deputy City Attorney
Tamara Tatich, Recording Secretary
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.

4. SPECIAL ORDER OF BUSINESS/SPECIAL PRESENTATION
A. Recognition of Commissioner Bart Crandell
Chair Cosgrove presented a commendation to Commissioner Bart Crandell for fourteen-years of service as a Planning Commissioner and Chairman of the City of San Clemente Planning Commission.

Chair Cosgrove introduced M. Steve Camp as a reappointed Planning Commissioner and newly appointed Commissioner Brent Freeman, and Commissioner Patrick Griffin who was unable to attend.

DRAFT
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Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 2

5. MINUTES
A. Receive and file Minutes from Planning Commission Regular Meeting of May 21, 2025.

IT WAS MOVED BY COMMISSIONER COSGROVE, SECONDED BY COMMISSIONER MCKHANN, AND CARRIED 4-0-1, VICE CHAIR CAMP ABSTAINED, COMMISSIONERS

DAVIS AND MCCAUGHAN ABSENT, TO RECEIVE AND FILE THE MINUTES FROM THE REGULAR MEETING OF MAY 21, 2025.

6. ORAL AND WRITTEN COMMUNICATION
Chair Cosgrove called upon Commissioner Crandell’s former colleagues for public comments:

Kathy Ward, former Mayor, Council Member and Planning Commissioner expressed her appreciation for Commissioner Crandell’s mentorship and service.

Wayne Eggleston, former Mayor, Council Member and Planning Commissioner expressed his gratitude for Commissioner Crandell’s ability to share his knowledge and collaborate with applicants and the commission.

7. CONSENT CALENDAR
None.

8. PUBLIC HEARING
A. Public Hearing Project (PHP) 25-065, 7-Eleven Full Alcohol Offsite Sales, 502 N. El Camino Real
A request for Planning Commission to consider approving Conditional Use Permit (CUP) 25-193 to allow the sales of full alcohol for off-site consumption (Type 21 license) at Sprouts Farmers Market located at 550 Camino De Estrella, Unit C.

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

Chair Cosgrove opened the public hearing and called for any disclosures or ex parte communications from the Commissioners. There being none, Associate Planner David Carrillo stated that the staff report includes two Conditional Use Permit requests; however, an approval by motion will be needed for each individually.

DRAFT
103
Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 3 Associate Planner Carrillo summarized the staff report in a presentation titled, “Hard Alcohol Sales at 7-Eleven,” that is available by contacting the Planning Division and highlighted the following:
• The first conditional use permit is at 502 North El Camino Real, and the second is at 1118 South El Camino Real.
• The request for both properties is to add the sale of distilled spirits to their current sales of beer and wine, requiring a type 21 ABC license, including a secured display within a locked cabinet. • The use may be conditionally permitted in both zones. • The Orange County Sheriff's Department confirmed citations across the city related to drinking on site or on public property but doesn't believe adding hard alcohol sales at the requested sites will significantly change this behavior.
• Staff recommended added project-specific Conditions of Approval related to the maintenance of signage prohibiting drinking on site, adequate lighting, and surveillance cameras.
• Additional Conditions that were not in the staff report include a permit compliance review triggered by complaints or violations, daily cleaning of the sites, and a prohibition on the sale of miniature spirits smaller than 375 milliliters. Those additional Conditions are agreed upon by the Applicant and have been provided to each
Commissioner are available to the public.

Chair Cosgrove called upon Bruce Evans, representative for the applicants who highlighted the following in his presentation to the Commission:
• Mr. Evans introduced the franchisees and thanked the Planning Division and OCSD for their positive feedback.
• Mr. Evans stated that the addition of the spirits is not intended to be a liquor store, but more a convenience for their customers who may buy liquor while shopping for a variety of products.
• The addition of spirits will be a very controlled in 4-foot-wide display in a locked cabinet.

There being no questions of the applicants or staff, Chair Cosgrove closed the public hearing on the first item PHP25-065.

The Commissioner discussed previous complaints of trash and graffiti, signage requirements, daily inspections, miniature spirits and brands of alcoholic beverages.

IT WAS MOVED BY COMMISSIONER MCKHANN, SECONDED BY COMMISSIONER CRANDELL, AND CARRIED 5-0, COMMISSIONERS DAVIS AND MCCAUGHAN

ABSENT, TO DETERMINE THE PROJECT IS CATEGORICALLY EXEMPT FROM CEQA PURSUANT TO CEQA GUILDINES §15301 (CLASS 1: EXISTING FACILITIES) AND TO APPROVE CONDITIONAL USE PERMIT 25-065, 7-ELEVEN FULL ALCOHOL OFFSITE SALES, 502 N. EL CAMINO REAL, SUBJECT TO THE CONDITIONS OF DRAFT
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Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 4

APPROVAL INCLUDING THE ADDITION CONDITIONS OF CONDITIONS, AS FOLLOWS: COMPLIANCE REVIEW TRIGGERED BY COMPLAINTS OR VIOLATIONS; DAILY LITTER ABATEMENT AND SIGNAGE MAINTENANCE; AND PROHIBITION ON THE SALE OF MINIATURE SPIRITS SMALLER THAN 375 MILLILITERS.

B. Public Hearing Project (PHP) 25-066, 7-Eleven Full Alcohol Offsite Sales, 1118 S. El Camino Real
A request for Planning Commission to consider approving Conditional Use Permit (CUP) 25-193 to allow the sales of full alcohol for off-site consumption (Type 21 license) at Sprouts Farmers Market located at 550 Camino De Estrella, Unit C.

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

Chair Cosgrove opened the public hearing and called for any disclosures or ex parte communications from the Commissioners.

There being no additional staff or applicant presentations, or questions, Chair Cosgrove closed the public hearing.

IT WAS MOVED BY COMMISSIONER MCKHANN, SECONDED BY CHAIR COSGROVE, AND CARRIED 5-0, COMMISSIONERS DAVIS AND MCCAUGHAN

ABSENT, TO DETERMINE THE PROJECT IS CATEGORICALLY EXEMPT FROM CEQA PURSUANT TO CEQA GUILDINES §15301 (CLASS 1: EXISTING FACILITIES) AND TO APPROVE CONDITIONAL USE PERMIT 25-066, 7-ELEVEN FULL ALCOHOL OFFSITE SALES, 1118. EL CAMINO REAL, SUBJECT TO THE CONDITIONS OF

APPROVAL INCLUDING THE ADDITION CONDITIONS OF CONDITIONS, AS FOLLOWS: COMPLIANCE REVIEW TRIGGERED BY COMPLAINTS OR VIOLATIONS; DAILY LITTER ABATEMENT AND SIGNAGE MAINTENANCE; AND PROHIBITION ON THE SALE OF MINIATURE SPIRITS SMALLER THAN 375 MILLILITERS.

C. Public Hearing Project (PHP) 24-494, Alzate Residential Development, 323 Encino Lane
A request for Planning Commission to consider a Development Permit (DP) 24-500, Encino Lane Residence, allowing construction of a singlefamily residence on a vacant lot within the Architectural Overlay located at 323 Encino Lane.

The Planning Commission will also consider whether the project is Categorically Exempt from the requirements of the CEQA pursuant to CEQA Guidelines § 15303 (Class 3: New Construction of a single-family residence in a residential zone).

DRAFT
105
Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 5 Chair Cosgrove opened the public hearing and called for any disclosures or ex parte communications from the Commissioners. Commissioner Prescott-Loeffler stated she visited the site; and Design Review Subcommittee members Crandell, Camp and Cosgrove stated that this project was reviewed by the committee.

Assistant Planner Alexia Gruszczynski summarized the staff report in a presentation titled, “Encino Lane Residence,” that is available by contacting the Planning Division and highlighted the following:
• The request is to develop a two-story, 3,618 square foot singlefamily residence and a 713 square foot roof deck on a vacant lot within the residential medium zone and architectural overlay. • The project is compatible with the neighborhood, with no identified negative impacts to the three nearby historic residences. • The project meets the threshold to require a sidewalk, which is ADA compliant.

The Design Review Subcommittee (DRSC) suggested adjustments to the initial design to be more reflective of Spanish colonial revival architecture, including:
• Replacing the black tile roof with a terra cotta roof. • Adding decorative tile to the front planters.
• Adjusting the tower and chimney elements.
• Additional project changes were recently requested, including:

1. Enlarging the window at the exterior stair to the roof deck.

2. Removing the decorative tile around the front door entrance.

3. Adjusting the location of the decorative tile from the front planters to the gate columns.
• Staff supports changes one and two but not change three, as it impacts the public visibility of the decorative tile from the street. • Project meets the design standards and is consistent with the General Plan Policies; Design Guidelines; and Zoning Code.

Principal Planner Rehm added that staff is seeking guidance on whether staff is to only approve the June 10, 2025 plans consistent with the conditions of approval or approve all three new modifications. • Commissioner Prescott-Loeffler asked about the ADU location and access and parking.
• Vice Chair Camp noted that the tower appeared to still have a hip roof instead of a gable roof as requested by the DRSC.

Assistant Planner Gruszczynski introduced the applicant and architect David York, and homeowners Harold and Indira Alzate. The applicant presentation highlighted the following:

DRAFT
106
Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 6 • The architect, David York, addressed Vice Chair Camp question regarding the hip roof by stating the hip pattern seems to work better than a gable for the tower.
• The homeowner, Harold Alzate, commented that corner radius of the room fits in with the design and works better with the hip roof. • The homeowner, Indira Alzate, stated that the decorative tile will be colorful with red, yellow, and blue to support the Spanish style. • Indira Alzate would like to put the tile in the front columns and round the gates with a round moon-shaped LED light on top of the columns.

Discussions on the recent revision submittal highlighted:
• The applicant is asking for a reversion to the previous design referenced as project change 3 with cladding on the planters. • The applicant is okay with either design and will let the decision maker decide which design will look better and complement the Spanish style.
• The applicant revised the design for the roof based on suggestions from the design review subcommittee.
• The tower roof element will maintain its nature as shown in the plans submitted on May 28, 2025.
• Ensure the front entry meets the Building Code and Zoning Code requirements.
• The lighting on the roof deck shall be inset into the low wall and the step lights shall have down shielded vents.
• Instead of clipped corners, the design now proposes a broad radius corner on three sides of the entry feature to create a tower effect. • The applicant got the idea for the radius corners from the Farmers and Merchants Bank building and the Shoreline Dental building.

The Commission and applicants discussed additional design considerations regarding the requirement for porch railings, directional lighting; and the location of decorative tile.

In conclusion of the discussion, the Commission is generally supportive of the project, except for the “moon” lighting in that is modern and conflicts with Spanish Colonial Revival.

There being no questions of the applicants, Chair Cosgrove closed the public hearing. The Commission directed the applicant to work through the design details with the staff consistent with the direction given by the Commission and in support of changes 1 and 2 but not change 3, and subject to the discretion of the City Planner.

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Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 7

IT WAS MOVED BY COMMISSIONER MCKHANN, SECONDED BY COMMISSIONER PRESCOTT-LOEFFLER, AND CARRIED 5-0, COMMISSIONERS DAVIS AND

MCCAUGHAN ABSENT, TO DETERMINE THE PROJECT IS CATEGORICALLY EXEMPT FROM CEQA PURSUANT TO CEQA GUILDINES §15301 (CLASS 1:

EXISTING FACILITIES) AND TO APPROVE DEVELOPMENT PERMIT 24-500, ALZATE RESIDENCE, 323 ENCINO LANE, SUBJECT TO THE CONDITIONS OF APPROVAL.

9. NEW BUSINESS
A. Interpretation 25-212, Tattoo Parlors in West Pico Corridor A request for an interpretation from the Planning Commission regarding the addition of Tattoo Parlors to be considered a “Personal Service” use in the West Pico Corridor Specific Plan.

Chair Cosgrove opened the public hearing.

Assistant Planner Alexia Gruszczynski summarized the staff report in a presentation titled, “Tattoo Parlors in West Pico Corridor,” that is available by contacting the Planning Division.

Staff reported that personal services are defined as recurrently needed services of a personal nature, including barber shops, seamstresses, and shoe repair shops; and therefore, opined that tattoo parlors are substantially similar to personal services, especially in the context of the West Pico Corridor as a creative business incubator. Staff added that the interpretation would allow a tattoo parlor that also provides earrings or body piercings be allowed, but may require another interpretation for standalone earring businesses. The Commissioners agreed that the tattoo parlors fit into the category of personal services.

There being no further questions of staff, Chair Cosgrove closed the public hearing.

IT WAS MOVED BY CHAIR COSGROVE, SECONDED BY VICE CHAIR CAMP, AND CARRIED 5-0, COMMISSIONERS DAVIS AND MCCAUGHAN ABSENT, TO ADOPT RESOLUTION PC25-007 TO ALLOW TATTOO PARLORS BE CONSIDERED A “PERSONAL SERVICES” USE IN THE WEST PICO CORRIDOR SPECIFIC PLAN.

10. OLD BUSINESS
None.

11. REPORTS OF COMMISSIONERS AND STAFF
Commissioner Crandell: Stated that in previous years, the Planning Commission would alternate months to attend Council meetings to complete a speaker card and delivering a three-minute report to Council Members.

Commissioner Crandell suggested that the Commissioners may want to reDRAFT 108
Minutes of Regular Planning Commission Meeting of June 18, 2025 Page 8 establish this practice in efforts to interact with the Council more effectively and efficiently.

Chair Cosgrove: Reported on a recent walk-through of the Miramar Theater with a slideshow titled, “Miramar Update,” that is available by contacting the Planning Division.

Principal Planner Zach Rehm & Senior Planner Christopher Wright:

Provided the Commission an update and presentation titled, “Parking and Transportation Demand Management Analysis & Policy Development for Local Coastal Program,” that is available by contacting the Planning Division.

12. ADJOURNMENT

THERE BEING NO OTHER BUSINESS BEFORE THE COMMISSION, IT WAS MOVED

BY COMMISSIONER CRANDELL, SECONDED BY CHAIR COSGROVE, AND CARRIED 5-0, COMMISSIONERS DAVIS AND MCCAUGHAN ABSENT, TO ADJOURN THE MEETING AT 8:40 P.M. TO THE REGULAR PLANNING COMMISSION MEETING TO BE HELD IN-PERSON ON JULY 16, 2025, AT 6:00 P.M., AT THE SAN CLEMENTE CITY HALL COUNCIL CHAMBERS LOCATED AT 910 CALLE NEGOCIO, 2 nd FLOOR,
SAN CLEMENTE, CALIFORNIA.

Respectfully submitted,
Cameron Cosgrove, Chairman
Attest:

Zach Rehm, Secretary of the Planning Commission
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Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF JUNE 25, 2025 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
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CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

DESIGN REVIEW SUBCOMMITTEE
JUNE 25, 2025
Subcommittee Members

Present:

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

Absent:

None.

Staff Present: Christopher Wright, Senior Planner
David Carrillo, Associate Planner
Chair Camp called to order the Design Review Sub-Committee Regular Meeting for City of San Clemente at 3:02 p.m. on June 25, 2025.

1. MINUTES
A. Review and file minutes of the Design Review Subcommittee (DRSC) Special Meeting on April 9, 2025.

There being no changes to the April 9, 2025 Special Meeting of DRSC, Subcommittee Vice Chair Crandell moved to approve the Minutes. Member Cosgrove seconded the motion and the Motion carried 3-0.

2. ARCHITECTURAL REVIEW OF THE FOLLOWING ITEMS:

A. Public Hearing Project (PHP) 25-214 for Conditional Use Permit 25-223/ Development Permit 25-224/Tentative Tract Map 25-225/ Discretionary Sign Permit 25-263, Luminar Business Park
A request for the Design Review Subcommittee to consider a new industrial complex with 11 new buildings on vacant land, in conjunction with a Master Sign Program and a condominium subdivision for individual ownership of each building.

Senior Planner Wright asked subcommittee members if anyone had any project related communications to disclose. Chair Camp stated that he had a site visit and had a few conversations with Rick Lutzky, Owner’s Representative. Vice Chair Crandell visited the site, but did not have any conversations.

Associate Planner, Carrillo, asked the applicant Rick Lutzky to introduce those in attendance: Diana Melendez, Ware Malcomb Architectural Project Manager; DRAFT
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Design Review Subcommittee Meeting Minutes June 25, 2025 Page 2 Francisco Arias, Ware Malcomb Director of Design; Yumi Chen, Ware Malcomb Designer; Travis Ebbert, RLA Landscape Architect; Rob Johnson, President of Johnston Pacific Real Estate; and Noah Ramos, Ware Malcomb Civil Engineer.

Associate Planner Carrillo summarized the staff report, and provided an updated master sign program that was not included in the staff report for review.

One public comment was received from Amanda Quintanilla. Amanda expressed concerns with increased traffic in the area, and referenced previous issues with the Amazon project, the need for more trees, and questioned the lack of space for deliveries. Amanda obtained clarification from the applicant that the condominium request is for the industrial suites, and not residential units.

The Design Review Subcommittee (DRSC) discussed the project, and made the following comments either individually or as a group:
• Simplify the architecture, as there may be “too much art” in it. • Signage lacks the symbols used in the architecture.
• Accents and colors can date buildings, but a sophisticated program can create a more timeless design.
• Proposed landscaping does not connect to the buildings and has not been given enough thought.
• Improve the rear of building #2 which faces the pedestrian pathway and ridgeline trail.
• Enhance landscaping to integrate it into the development and reinforce wayfinding. Create rhythm and interest with the landscape, possibly with different themes for each building.
• Comply with the General Plan Hillside Policies that require planting of landscaping to blend in with the hillside.
• Supported the idea of trees in the HOA hill area adjacent to the project site, if possible.
• Signage and graphics should have a matte or flat finish to avoid reflections. • Provide accurate simulations that show the project softening into the hillside for inclusion in the Planning Commission/City Council staff report. • Provide visuals that show how buildings relate with each other and the entire site to better understand setting and surroundings. • The Planning Commission will focus on the proposed land use, especially the conditionally-permitted use in building #1, and not on design. • Focus on improving landscaping and signage, particularly the monument signs.
• Provide the vision for the proposed commercial recreation use in building #1 and internal circulation.
• Emphasize the role of on-site management in maintaining the site, including parking.
• The entrances should make a statement with monument signs and landscaping to convey an upscale feel.
117
Design Review Subcommittee Meeting Minutes June 25, 2025 Page 3 • The project identification sign should be six feet tall with 64 square feet of copy. Halo lighting is acceptable for this sign.
• The entry portals have more flexibility in terms of zoning ordinance compliance since they are intended as a statement, not advertising. • The Master Sign Program allows the maximum sign area per tenant to exceed 64 square feet, for the corner suites.
• Enhance the architecture with landscape elements. Consider hierarchy, vertical versus horizontal aspects, and tenant signage.

The Subcommittee supports the project moving forward to the Planning Commission/City Council, and suggests the applicant work with staff to address recommended design changes.

3. NEW BUSINESS
None.

4. OLD BUSINESS
None.

5. ORAL AND WRITTEN COMMUNICATION
None.

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

Respectfully submitted,
_______________________________
M. Steven Camp, Chair
Attest:
_______________________________
Christopher Wright, Senior Planner
118
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (1)
..ag endizedby
..end
Subject:
..titl e
Approve Handwrite Nos.
605410 through 605416, Wire
Transfer Nos. 3256 through
3261 and Warrant Nos. 605271
through 605409, paid on 6-20-25,
in the amount of $4,784,658.64
..end
119
120
121
122
123
124
125
126
127
128
129
130
131
132
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (2)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3262 through 3267 and Warrant Nos.
605417 through 605576, paid on
6-27-25, in the amount of $2,566,875.67
..end
133
134
135
136
137
138
139
140
141
142
143
144
145
146
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (3)
..ag endizedby
..end
Subject:
..titl e
Approve Warrant Nos.
605577 through 605764, paid on
7-3-25, in the amount of $1,030,305.43 ..end
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (4)
..ag endizedby
..end
Subject:
..titl e
Approve Handwrite No. 605860,
Wire Transfer Nos. 3268
through 3275 and Warrant Nos.
605765 through 605859, paid on
7-11-25, in the amount of $5,602,647.78
..end
162
163
164
165
166
167
168
169
170
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (5)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3276 through 3279 and Warrant Nos.
605861 through 606001, paid on
7-18-25, in the amount of $6,779,623.20
..end
171
172
173
174
175
176
177
178
179
180
181
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: (6)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3280 through 3285 and Warrant Nos.
606002 through 606201, paid on
7-25-25, in the amount of $2,489,674.74
TOTAL WARRANT REGISTER $23,253,785.46 ..end
182
183
184
185
186
187
188
189
190
191
192
193
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Automatic Deposit
Advises 103704 through 104067,
for the Period 5-26-25 through
6-8-25, Paid on 6-13-25,
in the amount of $550,558.50
194
195
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Automatic Deposit
Advises 104068 through 104468,
for the Period 6-9-25 through
6-22-25, Paid on 6-27-25,
in the amount of $654,610.15 ..end
196
197
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Automatic Deposit
Advises 104469 through 104860,
for the period 6-23-25 through
7-6-25, paid on 7-11-25,
in the amount of $658,580.88
..end
198
199
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Automatic Deposit
Advises 104861 through 105241,
for the period 7-7-25 through
7-20-25, paid on 7-25-25,
in the amount of $646,660.41
TOTAL PAYROLL REGISTER $2,510,409.94 ..end
200
201
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11D.
202
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 203
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.
204
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 205
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. 206
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
207
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11E.

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

CONSIDERATION OF A RESOLUTION ACCEPTING AN UPDATED GRANT AMOUNT FROM

CALIFORNIA COASTAL COMMISSION, AUTHORIZING A RELATED SUPPLEMENTAL

APPROPRIATION, AUTHORIZING THE CITY MANAGER TO EXECUTE A RELATED

CONTRACT AMENDMENT WITH CETO CONSULTING, LLC AND FINDING THE PROJECT CATEGORICALLY ..body EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Fiscal Impact:

The City has been awarded a $59,000 grant from the California Coastal Commission to collect and analyze beach attendance data. The initial $50,000 was already appropriated at the June 17, 2025 City Council Meeting. There is no fiscal impact, however an additional supplemental appropriation of $9,000 will need to be reflected in the following revenue and expenditure accounts:
 001-000-33446 $9,000 (Revenue)
 001-433-43695 $9,000 (Expenditure)
Summary:

The purpose of this report is note that the actual award amount of the most recent California Coastal Commission grant is $59,000, rather than $50,000 as previously stated and to 1) acknowledge and receive the full amount of grant funding, 2) authorize a supplemental appropriation of an additional $9,000 to spend the funds, and 3) amend the professional services agreement with CETO Consulting, LLC (CETO) to conduct the project in coordination with the City. Under the proposed contract amendment, Surfline/Wavetrak, Inc. will be a subconsultant to CETO for this project and therefore a separate professional services agreement with Surfline is no longer required.

Background:

On June 17, 2025, the City Council adopted Resolution 25-102 to accept a $50,000 grant from the Coastal Commission, make a related appropriation and enter into professional services agreements with Ceto Consulting, LLC and Surfline/Wavetrak, Inc. to conduct a beach attendance and fiscal impact analysis study of the City’s beaches in coordination with the City.

The actual grant amount is $59,000.

All grant funded coastal projects require a positive cost to benefit ratio demonstrating that the investment is a worthwhile use of public funds. Calculation of the benefits depends on beach attendance data as one critical piece of information. This study would collect beach attendance data and would result in a fiscal impact analysis of the beach in San Clemente which could be 208
Meeting Date: August 5, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 2
used to support future investments in the beach. The City submitted a grant application to fund this project and was successful in obtaining the necessary funding. This grant does not require a local match though contract staff time will be used to manage the project.

Discussion:

The City’s sandy beach is a valuable coastal resource in the City that provides a multitude of public benefits. The beach is valued for public enjoyment for residents and visitors, for community well-being and quality of life. The sandy beach also provides essential protection of infrastructure and existing structures in the City from current coastal erosion and future conditions.

Building on the City’s 2021 Coastal Resiliency Plan, City staff are currently working on a wide variety of projects intended to build and bolster long term coastal resiliency in San Clemente.

There is currently no dedicated source of funding or revenue stream for coastal projects in San Clemente so staff is pursuing a wide range of grant funding opportunities to advance coastal projects including funding for beach sand replenishment, sand retention projects as a companion to beach sand replenishment and a beach attendance and fiscal impact study of the beach.

Council Options:
 Adopt Resolution No. 25-107.
 Modify and adopt Resolution No. 25-107.
 Do not adopt Resolution No. 25-107 and provide additional direction to staff.

Environmental Review/Analysis:

This project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines, Section 15306 (14 CCR § 15306, Information Collection) because it consists of basic data collection, research, experimental management or resource evaluation activities that will not result in a serious or major disturbance to an environmental resource.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-107, which will:

1. Determine that project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines, Section 15306 (14 CCR § 15306, Information Collection);

2. Accept a grant from the Coastal Commission in the amount of $59,000;

3. Approve an additional supplemental appropriation of $9,000 to be reflected in the following revenue and expenditure accounts:
a. 001-000-33446 $9,000 (Revenue);
b. 001-433-43695 $9,000 (Expenditure); and
209
Meeting Date: August 5, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 3

4. Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with CETO.
..end
Attachment:

1. Resolution 25-107

2. Amendment No. 1 to the Professional Services Agreement with CETO Notification:

CETO Consulting, LLC
Surfline/Wavetrak, Inc.
210
Attachment 1
RESOLUTION NO. 25-107

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,

APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE A RELATED CONTRACT AMENDMENT WITH

CETO CONSULTING, LLC AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS
6 OF THE STATE CEQA GUIDELINES, SECTION 15306 (14
CCR § 15306, INFORMATION COLLECTION)
..body
WHEREAS, coastal erosion is a very significant problem in the City of San Clemente that threatens the public beaches, coastal public access, key public facilities, existing structures, and critical public infrastructure; and WHEREAS, based on emergency conditions on City beaches where there is no dry sand at high tide and public beaches, existing structures and critical public infrastructure including the railroad revetment is direct to direct wave attack and being undermined; and
WHEREAS, the City has begun implementing a comprehensive, citywide coastal resiliency strategy using beach sand replenishment and sand retention as the primary means of restoring the sandy beach in the City; and
WHEREAS, the City has obtained grant funding to collect data on beach attendance and to conduct a fiscal impact analysis of the beaches as part of the City’s Local Coastal Program; and
WHEREAS, the California Coastal Commission (CCC) has been a solid funding partner for the City on various Local Coastal Program elements; and WHEREAS, the CCC issued a solicitation in 2025 seeking grant applications from local agencies seeking funding for Local Coastal Program related studies and projects; and the CCC invited the City to submit a grant application in response to an inquiry for the subject study; and
WHEREAS, the City staff submitted the grant application to the CCC and was successful and has been awarded a $59,000 grant which is available on a reimbursement basis through the end of 2026; and
WHEREAS, on June 17, 2025, the City Council adopted Resolution 25-102 to accept a grant from the Coastal Commission in the incorrect amount of $50,000, make a 211
Resolution No. 25-107 Page 2
4890-6752-0111 v4
related appropriation and enter into professional services agreements with Ceto Consulting, LLC and Surfline/Wavetrak, Inc. to conduct a beach attendance and fiscal impact analysis study of the City’s beaches; and
WHEREAS, Surfline/Wavetrak, Inc. will now act as a subconsultant to CETO for this project and therefore a separate professional services agreement with Surfline is no longer required, but an amendment to CETO’s contract is required.

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

1. That the foregoing recitations are true, correct, and incorporated fully herein.

2. That, based on its review of the record as a whole, the project is hereby determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines, Section 15306 (14 CCR § 15306, Information Collection) because it consists of basic data collection, research, experimental management or resource evaluation activities that will not result in a serious or major disturbance to an environmental resource.

3. That the City Manager, or his designee, is hereby authorized and directed to enter into an agreement with CCC for the grant awarded to the City and execute such other documents and take such other and further actions as are necessary and proper to receive the grant funding in the amount of $59,000.

4. A supplemental appropriation of an additional $9,000 to be reflected in the following revenue and expenditure accounts: 001-000-33446 ($9,000 as Revenue) and 001-433-43695 ($9,000 in Expenditure) is hereby approved and authorized.

5. That Amendment No. 1 to the Professional Services Agreement with CETO Consulting, LLC to reflects the full amount of grant funding available to the City for this grant in the amount of $59,000 and for Surfline/Wavetrak, Inc. to act as a subconsultant is hereby approved.

6. That the City Manager is authorized and directed to execute Amendment No. 1 to the Professional Services Agreement with CETO Consulting, LLC in a form substantially similar to that presented to the City Council on August 5, 2025.

7. That City staff is authorized and directed to take such actions as are necessary or proper to fulfill the purpose and intent of this Resolution and/or proceed with the Study.

8. That the City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this 5th day of August 2025.
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Resolution No. 25-107 Page 3
4890-6752-0111 v4
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the City San Clemente, California 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. 25-107 was adopted at a regular meeting of the City Council of the City of San Clemente held on the 5
th day of August, 2025, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
213
4921-2733-0390 v2

FIRST AMENDMENT TO

PROFESSIONAL CONSULTANT SERVICES AGREEMENT
This First Amendment to the Professional Services First Amendment is made and entered into on this 6th day of August, 2025 by and between the CITY OF SAN CLEMENTE, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 910 Calle Negocio, San Clemente, California, 92673 ( City ), and Ceto Consulting, LLC, a California limited liability company with its principal place of business at 544 Havenside Avenue, Newbury Park, California, 91320 ( Consultant ). City and Consultant are sometimes individually referred to herein . RECITALS
Whereas, on June 17, 2025, the City and the Consultant entered into that certain Professional Consultant Services Agreement (Contract # AC-1315) for the Consultant to render professional services to capture and analyze data Local Coastal Program; and
Whereas, on June 17, 2025, the City Council adopted Resolution No. 25-102, which, among other things, accepted a grant from the California Coastal Commission in the amount of $50,000 and awarded two (2) professional services agreements for Local Coastal Program data capture and analysis one to Consultant and one to Surfline/Wavetrak; and
Whereas, upon further review, the City determined that the grant amount awarded to the City was actually $59,000 as specified in the LCP-24-08 grant agreement, not $50,000 as accepted by Resolution No. 25-102; and
Whereas, on August 5, 2025, at its regular meeting, the City Council to action to correct the error in Resolution No. 25-102 and accept the funding amount of $59,000, as specified in the LCP-24-08 grant agreement, and to combine the two (2) professional services agreements for Local Coastal Program data capture and analysis into one; and Whereas, Surfline/Wavetrak will now act as a sub-consultant to Consultant, resulting in a single professional services agreement with corresponding modifications; and
Whereas, the Parties hereto desire to enter this First Amendment to amend the Agreement and, on the terms, and conditions stated herein.

NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby confirmed, the Parties hereto agree as follows:

Attachment 2
214
4921-2733-0390 v2

COVENANTS
SECTION 1: Section 3.3.1 (Compensation) of the Agreement is hereby amended to state that the total compensation shall not exceed Fifty-Nine Thousand Dollars ($59,000.00).

SECTION 2: Pursuant to Section 3.6 (Subcontracting), the Parties acknowledge and agree that Surfline/Wavetrak (Subconsultant) will perform as a subconsultant to Consultant and that Subconsultant is subject to all the requirements and provisions applicable to Subconsultant in the Agreement.

SECTION 3: Except as expressly amended by this First Amendment, the Agreement and all its provisions shall remain in full force and effect.

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
Dated: __________________
ATTEST: _______________________ CITY CLERK of the City of San Clemente, California
APPROVED AS TO FORM: _____________________________ Elizabeth A. Mitchell, City Attorney Ceto Consulting, a California limited
liability corporation
By:_________________________________
Kiersten Patsch, Ph.D., Managing Member
Dated: ___________________
215
216
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11F.

Submitted By: Finance and Administrative Services
Prepared By: Sheryl Mariano, Finance Manager
Subject:
..titl e
CITY’S FISCAL YEAR 2025 THIRD QUARTER FINANCIAL REPORT ..body Fiscal Impact:

None.

Summary:

Staff has prepared the Third Quarter Financial Report primarily focusing on the General Fund, with additional discussion of enterprise funds.

Background:

At the close of each fiscal month, staff generates monthly reports which serve as a primary source material for the quarterly financial reports. These monthly reports provide insight into both revenue generation and expenditure trends, which enable the City to monitor budget alignment and proactively identify financial fluctuations.

The quarterly financial report is accompanied by five tables which are a compilation of financial reports produced from the City’s accounting system.

Council Options:
 Receive and file the report.
 Provide direction to staff
Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
That the City Council receive and file the City’s Third Quarter Financial Report dated August 5, 2025, and on file with the City Clerk.
..end
Attachment:

1. Third Quarter Financial Report
Notification:

None.
217
January-March 2025

CURRENT FINANCIAL CONDITION
In FY 2024-25, the City’s adopted General Fund budget
included a positive operating position. At the end of the Third quarter, while expenditures exceed revenues,
revenues and expenditures are within budgetary
expectations for this time of the year.

GENERAL FUND
General Fund revenues through the third quarter total
$54.3 million, or 61% of the $88.9 million annual budget.

General Fund revenue is $2.7 million higher than the
third quarter of the prior year. Increases were seen in property taxes, permits and fees, services charges and
interest and rents, where as decreases were seen in sales tax, transient occupancy tax, intergovernmental, fines
and interfund transfers.

General Fund expenditures total $67.2 million for the
third quarter, or 65% of the $103.5 million annual
budget, as compared to $62.2 million at this time last
year. In total, expenditures ended the quarter $5 million more than the prior year due to increases in personnel
costs, capital outlay and interfund transfers and debt.

The current budget for General Fund expenditures is
$103.5 million which reflects an increase of $400,000
from the second quarter adjusted budget of $103.1.

The increase is due to the mid-year adjustments
approved by Council in the third quarter of this fiscal year.

Additional information on General Fund revenues and
expenditures are discussed further in this report.

GENERAL FUND REVENUES
Revenues by Category Budget YTD Actual %
Property Taxes 46,275,728 28,759,987 62%
Sales Tax 12,803,000 7,528,575 59%
Transient Occ. Tax 3,550,000 1,904,648 54%
Other Taxes 3,402,000 1,472,891 43%
Permits & Fees 1,402,540 1,328,987 95%
Intergovernmental 2,507,750 616,905 25%
Service Charges 7,940,300 6,537,500 82%
Fines 607,500 429,894 71%
Interest, Rents, Other 3,704,190 3,108,814 84%
Interfund Transfers 6,685,100 2,661,304 40%
88,878,108 54,349,505 61%
Property Taxes: Property taxes total $28.8, primarily
from secured taxes. The amount is $1.5 million higher
than the prior year due to the timing of the secured
property tax received in Q2. Property tax revenue is
distributed unevenly throughout the year, with 50%
in Q2, 40% in Q4, and the remainder is spread across
Q1 and Q3.
Sales Tax: Sales tax receipts amount to $7.5 million,
which lower than the $7.7 million from the prior year
by $154,995. The decrease is attributed to reductions
in discretionary consumer spending and fuel prices.
Transient Occupancy Taxes (TOT): Transient
occupancy taxes total $1.9 million, which is $90,533
lower than FY 2024 at this time.
Other Taxes: Other taxes, consisting mostly of
franchise fees and business licenses, total $1.5 million, which is $18,029 higher than prior year due to higher
business license tax receipts. The majority of franchise fees, from SDG&E and Southern California Gas, are
received in April of each year.
Permits & Fees: Permits and fees are at $1.3 million.

This is $197,842 more than in the prior year, due to an increase in building and plumbing permits.
Intergovernmental: Intergovernmental revenue
derives mainly from grant revenues total $616,905,
which is $60,812 lower due to the SB2 planning grant
which was received in the previous year.
Service Charges: Service charges, from general
government, public safety, parking meter and
recreation, amount to $6.5 million, which is higher than prior year totals by $1.1 million mainly due to higher
plan check fees, and public safety service charges
which include ambulance service charges.
Fines: Revenues from fines total $429,894, which is
$76,374 lower than the prior year due to a decrease in
parking violations and vehicle code fines.
$88.9
$103.5
61%
$54.3
65%
$67.2
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0 Dollars (in millions)
Revenues Expenditures
General Fund -
Current Year Actual to Budget
Budget Actual
Financial Report
Third Quarter of FY 2024-25
Attachment 1
218
Financial Report Third Quarter of FY 2024-25
 Interest, Rents & Other: Interest, rents and other
reimbursements total $3.1 million, which is a $465,385
increase from the prior year due to a new lease for City Property.
 Interfund transfers: Interfund transfers decreased
from the prior year by $252,995 due to a one-time
transfer from Capital Reserves fund in the prior year.

GENERAL FUND EXPENDITURES
Expenditure by Type Budget YTD Actual %
Salaries 15,597,715 10,355,240 66%
Benefits 7,188,730 5,517,804 77%
Supplies 1,647,850 923,792 56%
Contractual Services 54,236,070 36,031,854 66%
Other Charges 1,732,447 1,047,582 60%
Capital Outlay 13,031,750 6,155,415 47%
Interdepartmental 5,697,340 4,296,255 75%
Transfers & Debt 4,358,330 2,850,124 65%
Total 103,490,232 67,178,066 65%
Expenditure by Dept Budget YTD Actual %
General Government 6,786,150 4,565,725 67%
City General 7,236,810 4,573,184 63%
Police 23,079,250 17,656,390 77%
Fire 14,749,320 11,089,356 75%
Marine Safety 2,376,290 1,489,779 63%
Comm. Development 9,569,400 4,921,093 51%
Public Works 33,013,210 18,501,069 56%
Beaches, Parks & Rec 6,679,802 4,381,470 66%
Total 103,490,232 67,178,066 65%
Expenditures for the third quarter of FY 2024-25 are
$67.2 million compared to prior year’s $62.2 million. This is an increase of $5 million from the prior year. Filled vacancies from the prior fiscal year and a 3.5% COLA
increase contributed to an increase in personnel costs.

Benefits increased by $506,234. Contractual services
decreased by $2.2 million due to the Casa Romantical
slope stabilization project the previous year. Capital
Outlay increased by $4.3 million, which is due to the
timing of project costs and the sand replenishment
project. Transfers and Debt increased from the prior year by $1.0 million due to unfunded liability pension
payments and a transfer to the Local Transit fund to
subsidize operations in the current year.

As anticipated, police and fire show an increase of $2.0 million. Other department changes are as follows: 1)
Public works costs increased by $534,738 due to capital outlay costs related to sand replenishment, 2)
Community Development increased by $800,605 from
the prior year due to higher personnel and contractual
service costs. 3) City General increased by $405,915 due to one-time transfers in the current fiscal year, including reserve transfers and a subsidy to the Transit operations for the trolley. 4) General Government increased by
$768,780 due to the filling of several staff vacancies 5) Beaches, Parks and Recreation and Marine Safety are
slightly higher compared to prior year due to activity
levels.

In total, costs are currently within anticipated results at this time of the year based on the budget.

ENTERPRISE FUNDS
The following tables summarize the operating revenues,
operating expenses, and changes in operating fund
working capital for enterprise funds including Water,
Sewer, Golf, and Storm Drain funds.

Revenues
Revenue Budget YTD Actual %
Water Fund 28,244,230 16,800,661 59%
Sewer Fund 11,935,246 8,003,859 67%
Golf Fund 3,642,400 2,964,656 81%
Storm Drain Fund 3,084,725 1,527,461 50%
Water commodity revenues increase $1.8 million based
on higher metered water sales, higher effluent water
sales and higher reclaimed water credit. Sewer revenues are higher by $836,356 due to an increase in service rate charges.

Golf Course is higher by $138,323 compared to the prior year due to increases to green fee revenues. Storm drain revenues are higher by $58,952, not necessarily due to
the collection of fees, rather due to deprecation transfers in the current year to support operations.

Expenses
Expenses Budget YTD Actual %
Water Fund 29,458,458 19,248,587 65%
Sewer Fund 12,910,025 8,646,880 67%
Golf Fund 3,452,760 2,312,710 67%
Storm Drain Fund 1,728,000 1,100,364 64%
Water expenses increase by $21,041 when compared to
the prior year. Sewer expenses increased by $544,787
due to increases in personnel costs and an increase in
prices for chemical supplies. Golf Course operations
increased by $315,835 due to personnel, effluent water
purchases, and interdepartmental charges. Storm drain
operating expenses decreased by $80,961 compared to
the prior year due mostly to lower personnel costs.

Working Capital
Working Capital Budget YTD Actual
Water Fund 6,718,644 5,484,946
Sewer Fund 122,880 454,638
Golf Fund 1,724,343 2,186,649
Storm Drain Fund 1,555,597 625,969
It is recommended that the Storm Drain fund undergo a
Cost-of-Service study and fee review, to assist in
sustaining the projects and expenditures within the Clean Ocean fund.

ADDITIONAL INFORMATION
General Fund comparative information for the prior year is provided in Table 1 (see attachment).
219
Table 1
General Fund Revenues - By Category
Month Ending March 31, 2025
FY 2024 FY 2024 % of FY 2025 FY 2025 % of
Budget Actual Budget Budget Actual Budget
Property Tax $ 43,235,230 $ 27,243,346 63% $ 46,275,728 $ 28,759,987 62% Sales Tax $ 13,345,000 $ 7,683,570 58% $ 12,803,000 $ 7,528,575 59% Transient Occ. Tax $ 3,552,000 $ 1,995,181 56% $ 3,550,000 $ 1,904,648 54% Other Taxes $ 3,666,000 $ 1,454,862 40% $ 3,402,000 $ 1,472,891 43% Permits and Fees $ 1,259,580 $ 1,131,145 90% $ 1,402,540 $ 1,328,987 95% Intergovernmental $ 943,960 $ 677,717 72% $ 2,507,750 $ 616,905 25% Service Charges $ 6,803,170 $ 5,439,511 80% $ 7,940,300 $ 6,537,620 82% Fines $ 524,300 $ 506,268 97% $ 607,500 $ 429,894 71%
Interest & Rents $ 3,425,170 $ 2,643,429 77% $ 3,704,190 $ 3,108,814 84% Interfund Transfers $ 12,429,690 $ 2,914,299 23% $ 6,685,100 $ 2,661,304 40% Gen. Fund Total $ 89,184,100 $ 51,689,328 58% $ 88,878,108 $ 54,349,625 61% General Fund Expenditures - By Category
FY 2024 FY 2024 % of FY 2025 FY 2025 % of
Budget Actual Budget Budget Actual Budget
Salaries $ 14,526,370 $ 9,225,861 64% $ 15,597,715 $ 10,355,240 66% Benefits $ 6,787,440 $ 5,011,570 74% $ 7,188,730 $ 5,517,804 77% Supplies $ 1,504,530 $ 924,844 61% $ 1,647,850 $ 923,792 56% Contractual Services $ 57,875,100 $ 38,205,912 66% $ 54,236,070 $ 36,031,854 66% Other Charges $ 1,548,750 $ 927,851 60% $ 1,732,447 $ 1,047,582 60% Capital Outlay $ 9,776,770 $ 1,866,727 19% $ 13,031,750 $ 6,155,415 47% Inter Dept Charges $ 5,530,010 $ 4,170,757 75% $ 5,697,340 $ 4,296,255 75% Interfund Transfers & Debt $ 3,434,580 $ 1,843,667 54% $ 4,358,330 $ 2,850,124 65% Gen. Fund Total $ 100,983,550 $ 62,177,189 62% $ 103,490,232 $ 67,178,066 65% $ (12,828,441)
General Fund Expenditures - By Department
FY 2024 FY 2024 % of FY 2025 FY 2025 % of
Budget Actual Budget Budget Actual Budget
General Government $ 6,187,140 $ 3,796,945 61% $ 6,786,150 $ 4,565,725 67% City General $ 6,834,090 $ 4,167,269 61% $ 7,236,810 $ 4,573,184 63% Police $ 23,027,990 $ 16,409,834 71% $ 23,079,250 $ 17,656,390 77% Fire $ 13,855,630 $ 10,304,507 74% $ 14,749,320 $ 11,089,356 75% Marine Safety $ 2,303,860 $ 1,322,875 57% $ 2,376,290 $ 1,489,779 63% Comm. Development $ 7,503,710 $ 4,120,488 55% $ 9,569,400 $ 4,921,093 51% Public Works $ 34,825,340 $ 17,966,331 52% $ 33,013,210 $ 18,501,069 56% Beaches, Pks & Rec $ 6,445,790 $ 4,088,940 63% $ 6,679,802 $ 4,381,470 66% Gen. Fund Total $ 100,983,550 $ 62,177,189 62% $ 103,490,232 $ 67,178,066 65% 220
Table 2
General Fund Expenditures - By Program
Month Ending March 31, 2025
FY 2024 FY 2024 % of FY 2025 FY 2025 % of
Budget Actual Budget Budget Actual Budget
City Council $ 134,490 $ 81,825 61% $ 169,280 $ 91,061 54% City Manager $ 1,028,670 $ 536,595 52% $ 1,122,190 $ 721,873 64% City General $ 6,834,090 $ 4,167,269 61% $ 7,236,810 $ 4,573,184 63% City Clerk $ 1,080,740 $ 517,510 48% $ 1,031,580 $ 705,587 68% Economic Development $ 149,530 $ 89,919 60% $ 258,030 $ 191,577 74% Finance & Administrative Services
F&AS Administration $ 453,000 $ 258,561 57% $ 564,590 $ 430,802 76% Finance $ 2,588,930 $ 1,737,287 67% $ 2,740,260 $ 1,787,830 65% Human Resources $ 751,780 $ 575,248 77% $ 900,220 $ 636,995 71% F&AS Total $ 3,793,710 $ 2,571,096 68% $ 4,205,070 $ 2,855,627 68% Contract Police Services $ 23,027,990 $ 16,409,834 71% $ 23,079,250 $ 17,656,390 77% Contract Fire Services $ 13,855,630 $ 10,304,507 74% $ 14,749,320 $ 11,089,356 75% Marine Safety $ 2,303,860 $ 1,322,875 57% $ 2,376,290 $ 1,489,779 63% Community Development
Comm Dev. Admin. $ 793,660 $ 483,082 61% $ 1,062,100 $ 690,831 65% Building $ 2,167,940 $ 1,228,759 57% $ 2,329,450 $ 1,313,412 56% Planning $ 2,588,200 $ 1,326,052 51% $ 3,876,240 $ 1,563,882 40% Code Compliance $ 1,953,910 $ 1,082,595 55% $ 2,301,610 $ 1,352,968 59% Comm. Dev. Total $ 7,503,710 $ 4,120,488 55% $ 9,569,400 $ 4,921,093 51% Public Works
PW Administration $ 9,706,860 $ 5,201,707 54% $ 4,105,520 $ 1,178,658 29% Emergency Planning $ 201,240 $ 115,306 57% $ 244,000 $ 107,633 44% Engineering $ 4,239,080 $ 2,252,053 53% $ 3,883,540 $ 2,123,400 55% Maintenance Services $ 7,276,260 $ 4,724,182 65% $ 8,726,810 $ 4,913,442 56% Park/Beach Maintenance $ 13,401,900 $ 5,673,083 42% $ 16,053,340 $ 10,177,936 63% Public Works Total $ 34,825,340 $ 17,966,331 52% $ 33,013,210 $ 18,501,069 56% Beaches, Parks & Recreation
BP & R Admin. $ 604,510 $ 332,664 55% $ 508,775 $ 342,004 67% Recreation $ 5,841,280 $ 3,756,276 64% $ 6,171,027 $ 4,039,466 65% B P & R Total $ 6,445,790 $ 4,088,940 63% $ 6,679,802 $ 4,381,470 66% General Fund Total $ 100,983,550 $ 62,177,189 62% $ 103,490,232 $ 67,178,066 65% 221
Table 3
FY 2025 Other Fund Revenue & Expenditures Summary
Month Ending March 31, 2025
(* All numbers are in $1,000)
Year-To-Date Revenues * Year-To-Date Expenditures *
Budget FY 2025 % Received Budget FY 2025 % Expend.

Special Revenue
Street Improvement $2,247 $1,371 61% $4,582 $974 21%
Gas Tax $4,585 $2,443 53% $6,923 $1,931 28%
Misc Grants $697 $54 8% $788 $64 8%
Building Homes & Jobs Act (SB $488 $486 100% $310 $238 77% Disaster Relief $ $9 100% $505 $321 64%
Senior Mobility Program - Gran $141 $92 66% $116 $89 76% Local Transit Program Grants $2,499 $634 25% $1,179 $941 80% Air Quality Improvement $336 $308 92% $80 $ 0%
Local Cable Infrastructure $205 $104 51% $213 $8 4%
Police Grant $186 $198 106% $246 $150 61%
$11,383 $5,699 50% $14,943 $4,716 32%
Capital Projects
Parks Acq. & Dev. $461 $441 96% $1,400 $625 45%
Local Drainage Facilities $698 $52 7% $2,401 $84 4%
RCFPP $21 $31 146% $379 $27 7%
Public Facilities Construction $361 $361 100% $1,385 $694 50% Developers Improvement $240 $224 93% $1,090 $1,010 93%
Low/Mod Housing Fund $18 $75 427% $35 $4 11%
In-Lieu Housing Fund $43 $44 102% $6 $1 13%
Reserve $1,845 $1,507 82% $9,276 $210 2%
$3,685 $2,734 74% $15,971 $2,654 17%
Enterprise
Water $36,565 $21,472 59% $61,738 $20,785 34%
Sewer $18,538 $10,757 58% $33,383 $11,147 33%
Golf $4,106 $3,324 81% $3,971 $2,461 62%
Solid Waste $227 $83 36% $384 $258 67%
Storm Drain Utility $3,998 $2,201 55% $6,847 $5,532 81% Clean Ocean $2,192 $952 43% $2,227 $1,462 66%
$65,625 $38,788 59% $108,550 $41,645 38%
Internal Service
Central Services $442 $336 76% $486 $314 65%
Information Technology $2,530 $1,900 75% $3,832 $1,824 48% Fleet Services $2,784 $2,055 74% $6,224 $2,941 47%
Medical Self Insurance $4,084 $2,720 67% $4,089 $3,172 78% Workers' Compensation $530 $444 84% $637 $402 63%
General Liability $2,801 $2,114 75% $3,289 $2,659 81%
$13,171 $9,569 73% $18,558 $11,312 61%
Joint Powers
C.A.S.A. $1,831 $1,523 83% $1,986 $1,274 64%
$ Indicates that the amount is less than $500
222
Table 4
Other Funds Revenue FY 2024 to FY 2025
Month Ending March 31, 2025
(* All numbers are in $1,000)
FY 2024 FY 2024 % FY 2025 FY 2025 %
Budget Actual Received Budget Actual Received
Special Revenue
Street Improvement $2,052 $1,353 66% $2,247 $1,371 61%
Gas Tax $4,572 $2,333 51% $4,585 $2,443 53%
Misc Grants $540 $74 14% $697 $54 8%
Building Homes & Jobs Act (SB2) $296 $296 100% $488 $486 100% Disaster Relief $877 $22 3% $ $9 100%
Senior Mobility Program - Grant $131 $88 67% $141 $92 66% Local Transit Program Grants $1,876 $517 28% $2,499 $634 25% Air Quality Improvement $335 $311 93% $336 $308 92%
Local Cable Infrastructure $202 $95 47% $205 $104 51%
Police Grants $167 $186 111% $186 $198 106%
$11,049 $5,274 48% $11,383 $5,699 50%
Capital Projects
Parks Acq. & Dev. $50 $32 65% $461 $441 96%
Local Drainage Facilities $860 $35 4% $698 $52 7%
RCFPP $14 $20 141% $21 $31 146%
Public Facilities Construction $53 $60 114% $361 $361 100% Developers Improvement $199 $200 101% $240 $224 93%
Low/Mod Housing Fund $11 $12 110% $18 $75 427%
In-Lieu Housing Fund $3 $28 949% $43 $44 102%
Reserve $2,327 $1,674 72% $1,845 $1,507 82%
$3,516 $2,061 59% $3,685 $2,734 74%
Enterprise
Water $36,258 $20,510 57% $36,565 $21,472 59%
Sewer $27,081 $9,962 37% $18,538 $10,757 58%
Golf $3,660 $3,147 86% $4,106 $3,324 81%
Solid Waste $223 $79 36% $227 $83 36%
Storm Drain Utility $2,843 $1,764 62% $3,998 $2,201 55% Clean Ocean $2,744 $197 7% $2,192 $952 43%
$72,807 $35,660 49% $65,625 $38,788 59%
Internal Service
Central Services $436 $333 77% $442 $336 76%
Information Technology $2,219 $1,671 75% $2,530 $1,900 75% Fleet Services $2,677 $2,229 83% $2,784 $2,055 74%
Medical Self Insurance $4,003 $2,510 63% $4,084 $2,720 67% Workers' Compensation $510 $400 79% $530 $444 84%
General Liability $2,760 $2,096 76% $2,801 $2,114 75%
$12,605 $9,240 73% $13,171 $9,569 73%
Joint Powers
C.A.S.A. $1,808 $1,794 99% $1,831 $1,523 83%
$ Indicates that the amount is less than $500
223
Table 5
Other Fund Expenditures FY 2024 to FY 2025
Month Ending March 31, 2025
(* All numbers are in $1,000)
FY 2024 FY 2024 % FY 2025 FY 2025 %
Budget Actual Spent Budget Actual Spent
Special Revenue
Street Improvement $6,260 $2,546 41% $4,582 $974 21%
Gas Tax $8,261 $2,387 29% $6,923 $1,931 28%
Misc Grants $530 $59 11% $788 $64 8%
Building Homes & Jobs Act (SB2) F $572 $162 28% $310 $238 77% Disaster Relief $1,885 $1,047 56% $505 $321 64%
Senior Mobility Program - Grant $116 $32 28% $116 $89 76% Local Transit Program Grants $1,151 $854 74% $1,179 $941 80% Air Quality Improvement $88 $38 43% $80 $ 0%
Local Cable Infrastructure $231 $100 43% $213 $8 4%
Police Grants $227 $129 57% $246 $150 61%
$19,322 $7,353 38% $14,943 $4,716 32%
Capital Projects
Parks Acq. & Dev. $2,157 $1,272 59% $1,400 $625 45%
Local Drainage Facilities $3,219 $601 19% $2,401 $84 4% RCFPP $393 $15 4% $379 $27 7%
Public Facilities Construction $980 $56 6% $1,385 $694 50% Developers Improvement $36 $9 25% $1,090 $1,010 93%
Low/Mod Housing Fund $42 $9 21% $35 $4 11%
In-Lieu Housing Fund $ $ 0% $6 $1 13%
Reserve $12,543 $861 7% $9,276 $210 2%
$19,370 $2,822 15% $15,971 $2,654 17%
Enterprise
Water Operating $28,320 $19,228 68% $29,458 $19,249 65% Water Depreciation/Other Agency $19,686 $1,263 6% $26,564 $1,433 5% Water Acreage Fee $5,817 $222 4% $5,716 $103 2%
Sewer Operating $11,951 $8,102 68% $12,910 $8,647 67%
Sewer Depreciation/Other Agency $13,002 $1,266 10% $15,037 $1,738 12% Sewer Connection $14,757 $898 6% $5,436 $762 14%
Golf Operating $3,069 $1,997 65% $3,453 $2,313 67%
Golf Depreciation & Capital $852 $306 36% $518 $148 29% Solid Waste $318 $157 49% $384 $258 67%
Storm Drain Utility $1,668 $1,181 71% $1,728 $1,100 64% Storm Drain Improvement $2,392 $898 38% $5,119 $4,432 87% Clean Ocean $2,664 $794 30% $2,227 $1,462 66%
$104,496 $36,312 35% $108,550 $41,645 38%
Internal Service
Central Services $510 $303 59% $486 $314 65%
Information Technology $2,904 $1,670 58% $3,832 $1,824 48% Fleet Services $4,988 $1,381 28% $6,224 $2,941 47%
Medical Self Insurance $3,918 $2,926 75% $4,089 $3,172 78% Workers' Compensation $617 $358 58% $637 $402 63%
General Liability $3,199 $3,684 115% $3,289 $2,659 81%
$16,135 $10,322 64% $18,558 $11,312 61%
Joint Powers
C.A.S.A. $1,858 $1,153 62% $1,986 $1,274 64%
$ Indicates that the amount is less than $500
224
Table 6
FY 2025 Fund Balance and Net Working Capital Summary
(* All numbers are in $1,000)
Beginning FY 2025 FY 2025 Ending Balances
Balances Revenues Expenditures 3/31/2025
General
General Fund $34,931 $54,350 $67,178 $22,103
Special Revenue
Street Improvement $3,766 $1,371 $974 $4,163
Gas Tax $7,037 $2,443 $1,931 $7,549
Misc Grants $408 $54 $64 $398
Building Homes & Jobs Act (SB $144 $486 $238 $393
Disaster Relief $339 $9 $321 $26
Senior Mobility Program - Grant $427 $92 $89 $430
Local Transit Program Grants -$1,476 $634 $941 -$1,783
Air Quality Improvement -$10 $308 $ $298
Local Cable Infrastructure $1,295 $104 $8 $1,391
Police Grant $285 $198 $150 $332
$12,214 $5,699 $4,716 $13,197
Capital Projects
Parks Acq. & Development $1,283 $441 $625 $1,099
Local Drainage Facilities $2,231 $52 $84 $2,199
RCFPP $1,269 $31 $27 $1,273
Public Facilities Construction $1,325 $361 $694 $992
Developers Improvement $5,224 $224 $1,010 $4,437
Low/Mod Housing Fund $3,054 $75 $4 $3,125
In-Lieu Housing Fund $11,163 $44 $1 $11,206
Reserve $12,857 $1,507 $210 $14,154
$38,406 $2,734 $2,654 $38,486
Enterprise
Water $37,300 $21,472 $20,785 $37,987
Sewer $16,198 $10,757 $11,147 $15,808
Golf $6,371 $3,324 $2,461 $7,235
Solid Waste $519 $83 $258 $343
Storm Drain Utility $2,000 $2,201 $5,532 -$1,331
Clean Ocean $74 $952 $1,462 -$436
$62,462 $38,788 $41,645 $59,605
Internal Service
Central Services $424 $336 $314 $447
Information Technology $1,280 $1,900 $1,824 $1,356
Fleet Services $7,881 $2,055 $2,941 $6,995
Medical Self Insurance -$1,460 $2,720 $3,172 -$1,912
Workers' Compensation $2,101 $444 $402 $2,144
General Liability $4,398 $2,114 $2,659 $3,853
$14,626 $9,569 $11,312 $12,884
Joint Powers
C.A.S.A. $733 $1,523 $1,274 $982
Total All Funds $163,372 $112,664 $128,779 $147,257
$ Indicates that the amount is less than $500
Month Ending March 31, 2025
225
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11G.

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

CONSIDERATION OF A RESOLUTION APPROVING SBA LOAN AGREEMENT DOCUMENTS FOR SALTY TURF, LLC LEASEHOLD INTEREST ..body
Fiscal Impact:

There is no fiscal impact to the City. The cost of legal review and document preparation has been borne by the Lessee.

Summary:

Salty Turf has secured a $3,900,000 SBA 7(a) Construction-to-Perm Loan from American Business Bank. As part of the loan requirements, the SBA and lender require a leasehold mortgage and related protections to secure their interest in the leasehold estate. Staff is seeking approval from the City Council for the City, as Landlord, to enter into loan-related agreements associated with an SBA 7(a) loan secured by Salty Turf, LLC’s leasehold interest in City-owned property located at 987 Avenida Vista Hermosa.

By consenting, the City agrees that the lender’s interests in the leasehold and personal property will take priority over the City’s, meaning the City will likely not be able to recover unpaid rent or damages from Salty Turf in the event of default. The Tri-Party Agreement also allows the lender or a foreclosure purchaser to assign, sublet, or transfer the leasehold interest without City consent.

Background:

On April 1, 2024, the City of San Clemente entered into a lease agreement with Salty Turf, LLC for approximately 1.2 acres at Vista Hermosa Sports Park to develop and operate a miniature golf course on the site.

As a condition of funding, the lender requires the City, as Landlord, to consent to the following:

1. Tri-Party Agreement for Leasehold Mortgage – Establishes lender rights to take a first-position security interest in Salty Turf’s leasehold and personal property; allows the lender to cure defaults and potentially assume or transfer the leasehold interest upon default; and provides certain lender rights that may limit the City’s ability to enforce its lease rights if Salty Turf defaults.

2. Collateral Assignment of Lease – Assigns the Lessee’s leasehold interest to the lender as collateral for the loan.
226
Meeting Date: August 5, 2025 Agenda Item: 11G.

CITY OF SAN CLEMENTE 2

3. Memorandum of Tri-Party Agreement – A recordable summary of the agreement for public notice purposes.

These documents (Attachments 2-4) do not alter the terms of the Lease between the City and Salty Turf LLC except as required to accommodate the SBA loan conditions summarized above.

The City retains its ownership and all rights under the Lease unless otherwise specified.

While this arrangement introduces risk by subordinating the City’s rights to the lender’s interest, the Tri-Party Agreement is a standard requirement for SBA-financed ground lease developments.

The City stands to benefit from the successful construction and activation of a recreational facility and would retain full ownership of the land throughout the lease term.

Council Options:
 Adopt Resolution 25-108, approving and authorizing the City Manager to execute all documents associated with the SBA loan for Salty Turf, LLC as presented.  Amend and adopt the Resolution.
 Provide alternate direction to staff.
 Take no action.

Environmental Review/Analysis:

Approval of these documents is not a project under CEQA, pursuant to California Environmental Quality Act Guidelines Section 15060(c)(2) because it is an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. (14 CCR § 15060).

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-108, approving and authorizing the City Manager to execute all documents associated with the SBA loan for Salty Turf, LLC with American Business Bank as presented.
..end
Attachment:

1. Resolution No. 25-108

2. Tri-Party Agreement for Leasehold Mortgage

3. Collateral Assignment of Lease

4. Memorandum of Tri-Party Agreement
Notification:

Salty Turf, LLC
227
Attachment 1
RESOLUTION NO. 25-108

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING

EXECUTION OF A TRI-PARTY AGREEMENT,

COLLATERAL ASSIGNMENT OF LEASE, AND

MEMORANDUM OF AGREEMENT IN CONNECTION

WITH AN SBA LOAN FOR SALTY TURF, LLC
WHEREAS, the City of San Clemente (“City”) is the owner of certain real property located at 987 Avenida Vista Hermosa, San Clemente, California, APN 678-163-01, commonly known as a portion of the Vista Hermosa Sports Park (“the Property”); and WHEREAS, on April 1, 2024, the City entered into a lease agreement with Salty Turf, LLC (“Lessee”), a Delaware limited liability company, for the purpose of constructing and operating a miniature golf course on the Property; and
WHEREAS, Salty Turf, LLC has applied for a Small Business Administration (SBA) 7(a) Construction-to-Permanent Loan in the amount of $3,900,000 from American Business Bank (“Lender”) to fund development of the leased premises; and WHEREAS, the Lender requires, as a condition of the loan, the execution of a TriParty Agreement, a Collateral Assignment of Lease, and a Memorandum of Tri-Party Agreement among the City, Lessee, and Lender to establish and secure the Lender’s rights in the leasehold estate and collateral; and
WHEREAS, the City will retain full ownership of the Property and has determined that consenting to the loan documents is in the best interest of the City and the public interest and will facilitate a private recreational use that serves the community.

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

SECTION 1. The City Council hereby approves the Tri-Party Agreement for Leasehold Mortgage, the Collateral Assignment of Lease, and the Memorandum of Tri-Party Agreement with the Lessee and the Lender.

SECTION 2. The City Manager is authorized and directed to execute the abovereferenced agreements in forms substantially similar to those presented to the City Council on August 5, 2025, and any related documents or actions that are necessary and proper to accomplish the purposes of this resolution or implement the transaction, including requesting a copy of the final loan documents for City records.

SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
228
Resolution No. 25-108 Page 2
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. 25-108 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
229
9545.0017 / 02938902.1 9545.0017 / 02938893.1 9545.0001 / 02936513.1 1

TRI-PARTY AGREEMENT FOR LEASEHOLD MORTGAGE
(SALTY TURF LLC)
This Tri-Party Agreement For Leasehold Mortgage (the “Agreement”), dated as of June __, 2025 (the “Effective Date”) is made by and among the City of San Clemente, a California municipal corporation (“Lessor”), Salty Turf LLC, a Delaware limited liability company (“Lessee”) and American Business Bank, a California banking corporation (“Lender”). The signatories hereto are sometimes referred to collectively as “the Parties”. This Agreement is made with reference to the following Recitals:

RECITALS
A. Lessor and Lessee entered into a certain Agreement to Lease, dated April 1, 2024 (the “Lease”) concerning real property commonly described 987 Avenida Vista Hermosa, San Clemente, CA 92673, and more fully described in the legal description attached thereto, marked as Exhibit “A” (the “Land”); B. Lessee has applied to Lender for an SBA 7(a) Construction-to-Perm Loan (the “Loan”) for the purpose of constructing a new miniature golf course upon the Land. The Loan will be documented with various loan documents, including but not limited to, promissory note, construction loan agreement, deed of trust and assignment of rents, guaranties, assignments, plans, permits, environmental reports, title insurance policies, etc., (“the Loan Documents”). The Loan will be secured by a deed of trust, an assignment of rents, and a security agreement related to Lessee’s personal property, all of which shall constitute liens upon the Lease and the leasehold estate created by the Lease (“Leasehold Estate”); C. As a condition of Lender making the Loan to Lessee, Lender requires certain covenants and agreements be agreed to among the Parties as pre-conditions for approval of the Loan and for funding of the Loan;
D. As a further condition for the making of the Loan, Lender requires that certain assignments and collateral be given to Lender, and that an agreement be entered into concerning (1) consent to, clarification of, and protection of the secured positions of Lender; (2) Lender’s ability to realize upon such collateral in the event of any default by Lessee; and, (3) to modify the Lease to protect Lender; E. Lessor, Lessee, and Lender are agreeable to entering into this Agreement for purposes of establishing those agreements and rights among the Parties; and, F. Lessor will benefit by the Loan.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged among the Parties hereto, the Parties agree as follows:

1. Recitals. The Recitals are incorporated herein by this reference as though set forth in full and are acknowledged as true and correct.

2. Lessor’s Consent. Without qualification and notwithstanding any contrary provisions in the Lease or any other document or agreement, Lessor expressly consents and agrees Lessee is authorized and is hereby empowered to borrow, grant, assign, transfer, and convey to Lender a lien upon the Lease and the Leasehold Estate for collateral purposes, and to have liens placed upon the Lease, Lessee’s Leasehold Estate in the Lease, and Lessee’s personal property.

Attachment 2
230
2 3. Notice of Lessee’s Default. Lessor shall promptly advise Lender, in writing, of any default by Lessee under the Lease.

4. Cross Defaults. The Parties agree that a default by Lessee under the provisions of the Lease shall also constitute an Event of Default under the Loan Documents entitling, but not obligating, Lender to exercise its rights and remedies under the Loan Documents.

5. Recovery and Removal of Lender’s Collateral.

A. Lessor agrees and consents, notwithstanding whether Lender cures any defaults or acquires Lessee’s rights under the Lease, that Lender shall have the right of access to the Land, upon reasonable notice and subject to Lender’s satisfying the “Removal Conditions” (as defined below), to remove any and all personal property which has been or may be pledged, mortgaged or hypothecated to Lender as security for the Loan. The “Removal Conditions” are defined as: (a) Lender’s exercising no greater rights, and assuming the same obligations, with respect to entry onto the Land as Lessee has under the Lease as though the Lender were the Lessee under the Lease, including but not limited to accomplishing any removal or restoration in good workmanlike manner, maintaining insurance, and indemnifying the Landlord and its affiliates and others; (b) Lender’s providing the Lessor at least two (2) business days’ prior written notice before entering upon the Land; and (c) Lender’s rights, and the Lessor’s obligations, under this Agreement terminating as of date of the termination or expiration of the Lease, or, if applicable, as of the end of any period during which Lender has the right to enter upon the Land (the “Removal Period”).

B. Subject to Lender’s satisfying the Removal Conditions, Lessor agrees that Lender shall have the right to remove from the Land any of Lessee’s personal property (the “Lessee’s Property”), whenever the Lender shall elect to enforce the security interests granted by Lessee. The term “Lessee’s Property” shall not include, and Lender shall not have the right to remove from the Land, any items which will cause material damage to the Land (including, without limitation, utilities, ducting, conduit, cabling, plumbing, heating, ventilating, and air conditioning systems and equipment, floor coverings, wall coverings, ceiling tiles and system, lighting, restroom fixtures, hot water heater, or any other item constituting an integral or permanent part of the structure upon the Land). If any parts of the Land, including structural areas, are damaged in connection with Lender’s removal of Lessee’s Property, then Lender shall repair such damage.

C. Lessor subordinates to Lender’s security interests in Lessee’s Property, any of Lessor’s liens, encumbrances, or other interests in Lessee’s Property which Lessor may now or hereafter have or acquire in Lessee’s Property. Notwithstanding anything to the contrary, Lessor’s encumbrances and liens against the Land shall not be subordinated to Lender’s rights under this Agreement or Lender’s security interests in Lessee’s Property.

6. Rights to Cure and Limitation on Liability.

A. Notwithstanding anything in the Agreement, Lessee shall be fully responsible for all of tenant’s obligations under the Lease.

B. Notwithstanding execution of the Loan Documents, Lender does not, and shall not, assume any obligations to Lessor, including but not limited to, payment of rents, for any other charges or fees, or for the performance of any of the covenants contained in the Lease, and Lender shall not have any liability to Lessor under the Lease except to the extent Lender occupies the Land.

C. In the event of a default by Lessee under the terms and provisions of the Lease, Lessor shall not terminate the Lease nor declare a forfeiture of the Lease without giving Lender prior written notice of the default. So long as Lender makes timely and unconditional monthly rental payments in full, Lender shall have 231
9545.0017 / 02938902.1 9545.0017 / 02938893.1 9545.0001 / 02936513.1 3 six (6) months to either assume the Lease and exercise Lender’s rights under section 8 below, or terminate Lender’s rights under this Agreement in which case Lender shall have no further liability under the Lease.

D. (1) The tender of any cures by Lender to Lessor shall not preclude Lender’s right to declare a default by Lessee under the terms and provisions of the Loan Documents and this Agreement for Lessee’s default(s) under the provisions of the Lease, and Lender’s exercise of Lender’s rights and remedies under the Loan Documents.
(2) Lender shall have the right to cure any curable monetary or non-monetary defaults by Lessee (and within the same cure period, if any, available to Lessee under the Lease) whether or not Lender has exercised any of its remedies under the Loan Documents. (3) Notwithstanding the right to cure any defaults, the cures of defaults, and the continued curing of defaults, Lender shall not have any liability under the Lease, including, without limitation, liability for rent, notwithstanding such cures, unless Lender (a) has exercised its rights to obtain, and has obtained, Lessee’s Leasehold Estate in the Lease under the provisions of the Loan Documents, and (b) has taken possession of the Land. Actions by Lender to safeguard the Land, remove personal property from the Land for sale, conduct a public sale of personal property on the Land, show the Land to prospective transferees, or to seek, obtain, or have installed a receiver upon the Land to safeguard the Land or to operate a business upon the Land shall not be deemed acts of, or the taking of, possession by Lender. (4) Should Lender exercise its rights under the Loan Documents, obtain Lessee’s Leasehold Estate, and taken possession of the Land (with no possession occurring as a result of the actions enumerated in this Section 5.D.(3), Lender shall make the payments due under the Lease for the periods of time in which Lender is in such possession.
(5) Lender shall have the right to transfer, assign, or sublet the Lease as provided in Section 8 below.
(6) Lender (a) may exercise its remedies at its sole discretion, (b) exercise some but not all of its remedies under one or more of the Loan Documents, or (c) elect not to exercise remedies under one or more of the Loan Documents.

7. Lessee Not to Seek Modification or Cancellation of the Lease Without Lender’s Consent.

A. Lessee agrees that Lessee, without Lender’s express written consent, shall not make any modifications to the Lease, nor agree to terminate the Lease, as long as there is any indebtedness owed by Lessee to Lender or Lender’s successor(s) in interest. Any such action by Lessee without the consent of Lender (i) shall constitute a default under the Loan Documents, (ii) shall not be binding on Lender, and (iii) shall not be accepted, or agreed to, by Lessor.

B. In the event Lender obtains knowledge that there has been a material modification or termination of the Lease, upon Lender’s declaring a default by Lessee under the Loan Documents, exercising remedies thereunder, and taking possession of the Land thereunder, Lender may demand, and Lessor shall then enter into, an addendum to reverse the material modification or enter into a new lease to reinstate the Lease, with Lender as the replacement lessee, upon the same terms and conditions as the Lease, subject to the rights of Lender and Lessor contained in this Agreement. Lessor further agrees that in the event that any liens have been placed upon the Land or the Lease between the time of the material modification or termination and the reversal of the material modification or new lease, Lessor shall use commercially reasonable efforts, at no cost to Lessor or with agreement by Lender to reimburse any costs, to obtain a subordination of such liens to the reversal or new Lease.

8. Right of Lender, Lender’s Successors, or Purchaser(s) After a Foreclosure.

In the event that Lender, or its successors or assigns, or a purchaser at a sale, pursuant to a real property foreclosure, after a judicial or nonjudicial sale, by a deed in lieu of foreclosure, or by other means (with Lender, 232
4 its successors or assigns, or the purchaser who acquires the Lease or Leasehold Estate at a foreclosure sale or by deed in lieu designated as the “Acquiring Party”) acquires Lessee’s Leasehold Estate or Lessee’s interest in the Lease, Lessor agrees that the Acquiring Party shall have the absolute right to transfer, sublet, or assign the Lease, notwithstanding any default by Lessee, without Lessor’s consent or approval, notwithstanding any contrary language contained in the Lease, including, but not limited to, the provisions of Article XII of the Lease.

B. Any transfer, subletting or assignment of the Lease by the Acquiring Party shall be free of, and without regard to, Lessor’s rights (1) under Article XII of the Lease, including, but not limited to, any right to elect to terminate the Lease, (2) to receive any consideration, whether from the price paid for the transfer, sublet or assignment, or from the transferee, sublessee or assignee, in excess of the rent payable under the Lease, and (3) to enforce any restrictions to such transfer, assignment, or sublet, in the Lease, except as provided in this Agreement.

C. It is expressly agreed that an assignment, subletting, or transfer by Acquiring Party shall relieve Acquiring Party of any liability, if any has arisen, under the Lease, after the date of such transfer, subletting, or assignment, except for obligations of Acquiring Party that arose prior to the date of such transfer, subletting, or assignment.

D. Acquiring Party, or the transferee, assignee, or sublessee of the Acquiring Party, upon Lessor’s prior written approval of any change in use, which approval shall be in Lessor’s sole discretion, may change the use of the Land, or the use made of the Land by Lessee, notwithstanding anything to the contrary in the Lease. Notwithstanding the generality of the foregoing, no change of the use would be allowed if the new use would constitute a violation of any recorded CC&R’s applicable to the Land or to the structures on the Land.

E. If Lender is the Acquiring Party, Lender may terminate the Lease upon thirty (30) days written notice to Lessor.

9. Assignment or Transfer by Lessee Prohibited.

Notwithstanding any other provisions in the Lease, as long as any indebtedness by Lessee to Lender exists under the terms of the Loan Documents, Lessee shall not assign or sublease Lessee’s interest in the Lease, without the prior written consent of Lender. Lessee agrees that any purported assignment or transfer by Lessee without the prior written consent of Lender shall be null and void and of no effect, and any attempt to assign or transfer Lessee’s interest in the Lease without such consent shall constitute an event of default under the Loan Documents and this Agreement, and Lender shall thereafter have the right to proceed with the exercise of Lender’s remedies.

10. Assignment by Lessor or Lender.

Lessor and Lender agree that in the event that either or both of them assigns its/their rights under the Lease, the Loan Documents, or this Agreement that its assignee shall assume the assignor’s obligations under the terms and provisions of this Agreement, with said assignee(s) or successor(s) required to agree to be fully bound by the terms and provisions hereof, upon which the Lessor or Lender, as applicable will be released from further liability. Lessor and Lender shall notify the other in the event of any assignment of its/their rights under the Lease, the Loan Documents, or this Agreement, and shall provide the other with a copy of the executed Assumption Agreement by its/their assignee(s) or successor(s).

233
9545.0017 / 02938902.1 9545.0017 / 02938893.1 9545.0001 / 02936513.1 5

11. Lessor’s Representations and Warranties; Estoppel Statement.

Lessor expressly represents and warrants and gives its estoppel statement as follows:

A. As of the date of this Agreement, Lessor is not aware of any default by Lessee under any of the terms or provisions of the Lease;
B. Lessor knows of no facts or conditions which, with the passage of time, would constitute or cause a default of Lessee’s obligations under the Lease;
C. The Lease is in full force and effect;
D. Lessor’s fee interest in the land is free and clear of any lease except the Lease to Lessee; E. Lender has no actual knowledge of any litigation, judicial, quasi-judicial, administrative, or other orders, injunctions, moratoria, pending or threatened against Lessor or the Land which would preclude or interfere with the use and occupancy of the Land by Lessee for Lessee’s current use; F. Lessor has all necessary power and authority to enter into this Agreement; G. Lessor has no actual knowledge of any condemnation, environmental, zoning, or land use regulation proceedings, either instituted or planned to be instituted, which would detrimentally affect the value of the Land;
H. The Lease constitutes a complete agreement between Lessor and Lessee for the Land and the Leasehold Estate, and no amendments, modifications, or assignments of the Lease, either written or oral, currently exist;
I. Lessor is the owner of the Land, with undivided fee title to the Land; and, J. The Land and Lessor’s undivided fee title to the Land, except for the lien of real property taxes that are not yet due, is unencumbered by any lien securing or seeking the recovery of any monetary obligation, including, without limitation, is not encumbered by the lien of any deed of trust, mortgage, assessment, tax lien, or judgment lien.

Lessor acknowledges that Lender is relying upon the foregoing representations, warranties, and estoppel statements in making the Loan to Lessee, and that Lender would not make the Loan to Lessee and fund the Loan but for the foregoing representations, warranties, and estoppel statements.

12. Renewal of the Lease Term.

For the purpose of exercising the renewal terms under Section 4.02 of the Lease: (a) Acquiring Party and the transferee or assignee from the Acquiring Party shall be deemed the “Tenant” under the Lease that shall have the right to be able to exercise the renewal terms under Section 4.02 of the Lease under the terms and in the manner as provided for in the Lease. Lessor recognizes and affirms that in the event Lender forecloses its lien on the Leasehold Estate, or otherwise steps into the shoes of Tenant, (i) Lender will have all the rights and remedies of Tenant under the Lease, and (ii) Lender may transfer or assign its rights as Tenant under the Lease to a third party, reasonably satisfactory to Lessor, who will then assume the rights and remedies under the Lease and thereafter Lender’s obligations as Tenant under the Lease shall cease. The subsequent transferee or assignee of the Leasehold Estate from the Acquiring Party’s transferee or assignee shall be also deemed a “Tenant”, who can exercise the renewal terms under Section 3.4 of the Lease.

13. Perfection and Additional Documentation and Memorandum for Recording Purposes.

Lessor and Lessee shall cooperate with Lender and execute such other documentation necessary to effectuate the perfection of Lender’s position and protection of its rights to the collateral, including, but not limited to, the recordation of a Memorandum of Lease or a Memorandum of this Agreement.

234
6 14. Hazard Insurance Proceeds.

Lender, as a condition of its loans, requires that Lessee make Lender the loss payee of any insurance policies for loss to the structures and personal property on the Land as provided in the Loan Documents. Lessor and Lessee agree that any proceeds of hazard or casualty insurance shall be payable as provided under the Loan Documents.

15. Proceeds of Condemnation.

Notwithstanding any contrary provisions in the Lease, Lender and Lessee agree that Lender shall have first right to receive the proceeds of any payments, awards, or collections for partial or complete condemnation of the structures on the Land, or any portion thereof, or the Leasehold Estate of Lessee, including, but not limited to, loss of business and goodwill attributable to Lessee’s interest in the Land up to the amount of the obligations then owed by Lessee to Lender.

16. Bankruptcy Provisions.

A. So long as any indebtedness to Lender under the Loan Documents shall remain outstanding, the right of election arising under the Bankruptcy Code to reject the Lease shall be exercised by the Lender and not by Lessee. Any exercise or attempted exercise by Lessee of such right of election in violation of the preceding sentence shall be void. If, despite the foregoing provision, Lessee rejects the Lease pursuant to the Bankruptcy Code, then, within ninety (90) days following notice to Lender of Lessee’s rejection of the Lease, Lender shall have the right to deliver written notice to Lessor requesting that Landlord inform Lender of the sums then owing by Lessee under the Lease and any and all other defaults of Lessee under the Lease, and Lessor shall, within ten (10) days following Lessor’s receipt of such notice, deliver written notice to the Lender of the sums then known by Lessor as being owed by Lessee and the other defaults of Lessee under the Lease then known by the Lessor. The Lender shall have the right, but not the obligation, to serve on the Lessor within ten (10) after service of the notice provided in the preceding sentence, a notice that the Lender elects to (i) assume the Lease, and (ii) cure all defaults outstanding thereunder.

B. If Lender serves such notice on Lessor within the above time period, then (i) the rejection and Bankruptcy termination of the Lease by Lessee shall not constitute a termination of the Lease as between the Lessor and Lender, (ii) Lender shall be deemed to have assumed the obligations of Lessee under the Lease without any instrument or assignment of transfer from Lessee, (iii) the Lease shall be deemed in full force and effect as a direct Lease between Lender and Lessor, (iv) Lender’s rights under the Lease shall be subject to the rights of parties in possession, and (v) Lender shall consummate the assumption of the Lease and the payment of the amounts payable by it to the Lessor pursuant to this Section within ten (10) days after the Lender shall have served the notice of assumption. Upon assumption of the Lease, Lender shall also have the same status and rights as the Acquiring Party under the terms of this Agreement. Based thereon, the right of transfer and assignment by an Acquiring Party as provided in Section 5 shall apply, and Lender shall be relieved of all obligations and liabilities arising from, and after, the date of such transfer or assignment.

C. If Lender does not timely elect to assume the Lease as provided above, Lender shall pay to Lessor, within ten (10) days after the expiration of the time period for Lender to make such election, an amount equal to the rent and other amounts which would have been due and owing (from Lessee to Lessor) under the Lease through thirty (30) days after the expiration of the time period for Lender to make such election.

D. Lessor hereby waives any remedy it may have, or hereafter have, to terminate, treat as terminated, reject, or cause forfeiture of the Lease under Section 365 (or any other applicable section) of the Bankruptcy Code, any comparable federal or state statute or law, or as part of any receivership, assignment for the benefit of creditors or creditor work out. Effective upon the entry of an order for relief with respect to Lessor under the Bankruptcy Code, or any comparable federal or state statute or law, Lessor hereby assigns and transfers to 235
9545.0017 / 02938902.1 9545.0017 / 02938893.1 9545.0001 / 02936513.1 7 Lender a non-exclusive right to apply to the Bankruptcy Court under Section 365 of the Bankruptcy Code (or any other applicable section), or any comparable federal or state statute or law, for an order extending the period during which the Lease may be rejected or assumed. In the event the terms of this Paragraph are unenforceable, Lessor agrees to refrain from exercising any right of termination it may have, under any bankruptcy or insolvency laws, or as part of any receivership, assignment for the benefit of creditors or creditor work out, prior to satisfaction of the indebtedness which is evidenced, in part, by the documentation for the Loan and the Deed Of Trust. Notwithstanding the foregoing, provided Lessor extends an offer to Lender or its assignee to lease the Land for a period no less than the remaining Lease term held by Lessee on substantially the same terms as the Lease, Lessor may exercise its right to terminate, reject, or cause forfeiture of the Lease under Section 365. As long as not unenforceable as a matter of law, if Lender accepts the offer referenced in the foregoing sentence and a new lease is consummated, Lender shall have the status of, and rights of, an Acquiring Party under this Agreement.

F. Lessee agrees to immediately notify Lender in writing should Lessor or Lessee file, or there is filed against Lessee, a petition, action, or other request for relief under the Bankruptcy Code, any comparable federal or state statute or law, or as part of any receivership, assignment for the benefit of creditors or creditor work out, and to serve Lender with copies of all notices pleadings or other documents that Lessee serves or receives in connection with any petition, action or other request for relief under the Bankruptcy Code, any comparable federal or state statute or law, or as part of any receivership, assignment for the benefit of creditors or creditor work out.

17. Notices.

Notices shall be sent to the following addresses unless a party gives notice in writing of any change of address:

To Lessor: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Attn: City Clerk and Beaches, Parks & Recreation Director To Lessee: Salty Turf LLC
224 Avenida Del Mar, Suite C
San Clemente, CA 92672
Attn: Jeff Moore
To Lender: American Business Bank
400 S. Hope Street, Suite 300
Los Angeles, CA 90071
Attn: SBA Department

18. Conflicts in Documentation.

As between Lessor and Lender, (and their assignees and successors) it is agreed that in the event of any conflicts between the provisions of this Agreement and the terms of the Lease, the provisions contained in this Agreement shall modify and supersede the conflicting provision(s) in the Lease, and that in the event of any such conflict, the terms and provisions of this Agreement shall control. Except as specifically modified herein by the terms and provisions of this Agreement the terms and provisions of the Lease shall remain the same. 236
8 19. Refinance.

Lessor agrees to enter into, and to substitute an agreement for this Agreement, with similar scope and content, with regard to any loan made to generate proceeds to refinance and/or pay off the Loan which is referred to in the Loan Documents, provided neither Lessor’s obligations nor the Lessee’s rights are expanded, and the loan proceeds are used solely in connection with the business being operated from the Land, and the loan amount does not exceed the original loan amount. Lessor shall be reimbursed for all reasonable costs incurred by Lessor in complying with this Section 19.

20. Disbursements by Lender.

In making disbursements pursuant to any of the Loan Documents, Lender shall have no obligation or duty to, nor has Lender represented that it will, supervise the application of any proceeds by the person or persons to whom Lender disburses such proceeds, and any application or use of such proceeds for purposes other than those provided for in the Loan Documents shall not defeat Lessor’s covenants and agreements herein.

Further, in making disbursements pursuant to the Loan Documents, Lender may waive any and all conditions to a disbursement as contained in the Loan Documents at Lender’s sole discretion.

21. Miscellaneous Provisions.

A. No waiver, amendment, deletion or addition to any of the terms hereof shall be deemed effective unless made in writing and signed by the parties hereto.

B. This Agreement shall be binding upon any legal representatives, successors and permitted assigns of the parties.

C. This Agreement may be executed in any number of counterparts, each and all of which shall be deemed for all purposes to be one agreement. However, this Agreement shall not become effective unless and until each and every party has executed the Agreement, or a counterpart of the Agreement.

D. The parties agree to execute such additional documents as may be reasonably necessary to effectuate the provisions of this Agreement.

E. This Agreement shall be deemed to have been drafted by all of the parties hereto. The provisions of Civil Code Section 1654 and similar laws shall not apply and are expressly waived, and any ambiguity in this Agreement shall not be interpreted against one party because of the mere fact of drafting, but shall be interpreted to give full force and effect to the intent of the parties as expressed in this Agreement.

F. Lender shall provide Lessor with a copy of the Loan Documents for its files and Lessor shall keep same confidential. Lessee consents to and authorizes Lender to provide a copy of the Loan Documents to Lessor.

G. This Agreement shall be governed by the laws of the State of California.

H. Should any action be instituted to enforce or interpret this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs.

I. Regardless of any provision in the Lease to the contrary, Lender shall not be required to enter into any agreement whereby its interest in the Leasehold Estate is subordinated to any lien upon the fee title estate of Lessor.

J. This Agreement will terminate and be void upon full satisfaction of the Loan.

K. Notwithstanding anything to the contrary, the Lease is modified and is subject and subordinate to any of Lender’s mortgages, deeds of trust, or other encumbrances of the Land and all renewals, extensions, modifications, consolidations, and replacements of the aforementioned mortgages, deeds of trust, or other encumbrances. This subordination is self-operative, and no further instrument of subordination shall be required to make it effective. To confirm this subordination, however, Lessor and/or Lessee shall, within five (5) days 237
9545.0017 / 02938902.1 9545.0017 / 02938893.1 9545.0001 / 02936513.1 9 after Lender’s request, execute any further instruments or assurances in recordable form to evidence or confirm the subordination or superiority of Ledner’s mortgages, deeds of trust, or other encumbrances.

LESSOR, LESSEE, AND LENDER HAVE EXECUTED AND DELIVERED THIS AGREEMENT AS OF THE EFFECTIVE DATE.

LESSOR: CITY OF SAN CLEMENTE
By: ___________________________
Andy Hall, City Manager
LESSEE: SALTY TURF LLC
By: ________________________
Andrew Streett, Manager
By: ________________________
Marcus Vanneman, Manager
By: ________________________
Jeff Moore, Manager
LENDER: AMERICAN BUSINESS BANK
By: ________________________
Nimisha Ashtana, First Vice President
238
10 EXHIBIT A (LEGAL DESCRIPTION OF “The Land”)
That certain real property located in the City of San Clemente, County of Orange, State of California, described as follows:

All that certain real property situated in the County of Orange, State of California, described as follows:

A portion of the Vista Hermosa Sports Park, located within the City of San Clemente, more particularly described as follows: Commencing at a point marked by the coordinates 33°27'37.4"N latitude and 117°36'25.4"W longitude, said point being the Point of Beginning; From the Point of Beginning, proceed in a southerly direction along the western boundary of Courtney's Sandcastle Playground, a distance of 190.40 feet; Then, turning and proceeding in a southeasterly direction, a distance of 98.20 feet; Then, turning and proceeding in a westerly direction, a distance of 130.20 • feet; Then, turning and proceeding in a north western direction, a distance of 115.60 feet; Then, turning and proceeding in a westerly direction, a distance of 223.20 feet; Then, turning and proceeding in a northeasterly direction, a distance of 138.90 feet; Then, turning. and proceeding in a easterly direction, a distance of 297.90 feet, to the Point of Beginning; Containing an area of 1.2 acres, more or less; Together with all appurtenances, easements, and rights belonging thereto
APN: 678-163-01
Common description: 987 Avenida Vista Hermosa, San Clemente, California 92672. 239
COLLATERAL ASSIGNMENT OF LESSEE’S INTEREST IN LEASE
City of San Clemente, a California Municipal Corporation having a mailing address at 910 Calle Negocio San Clemente, CA 92673, Attn: City Clerk and Beaches, Parks & Recreation Director (the “Lessor”) has leased to Salty Turf LLC, a Delaware limited liability company having a mailing address at 224 Avenida Del Mar, Suite C, San Clemente, CA 92672, Attn: Jeff Moore (the “Lessee”), certain premises known as 987 Avenida Vista Hermosa San Clemente, California 92672, more fully described in Exhibit A annexed hereto and made a part hereof (the “Premises”), under lease dated April 1, 2024 (the “Lease”).

American Business Bank having a mailing address at 400 S. Hope Street, Suite 300, Los Angeles, CA 90071, Attn:

SBA Department (the “Collateral Agent”) has made a loan to the Lessee in the original principal amount of $3,900,000.00, (the “Loan”). As additional security for the Loan, the Collateral Agent has required a collateral assignment of the interest of the Lessee in the Lease.

Collateral Assignment of Lease
1 . The Lessee hereby assigns, transfers and sets over unto the Collateral Agent, its successors and assigns, all interest of the Lessee under the Lease of the Premises and under any renewal, extension or modification of the Lease; provided, however, that so long as the Lessee shall not be in default of any of its obligations to the Collateral Agent under the Loan, the Lessee shall continue to enjoy all the rights and privileges of lessee under the Lease.

2. In the event of any default by the Lessee in the payment or performance of any of its obligations to the Collateral Agent under the Loan, beyond the expiration of any applicable grace or cure period, and in addition to any other rights the Collateral Agent may have at law or in equity, the Collateral Agent shall have the immediate right to enter upon the Premises and take possession thereof. The Collateral Agent shall further have the option, whether or not the Collateral Agent has exercised its right to take possession of the Premises, to make this assignment absolute, and thereby to become lessee under the Lease. Upon the exercise by the Collateral Agent of the option to make this assignment absolute, the Collateral Agent may thereafter, at its option, sell, assign or otherwise dispose of the lessee’s interest under the Lease, as collateral, in accordance with the provisions of Article 9 of the California Uniform Commercial Code and Delaware Uniform Commercial code (the “Code”), and shall, with respect thereto, have all rights and remedies of a secured party under the Code. Upon the exercise of this option to make this assignment absolute, the Lessee shall have no further interest in or claim to possession of the Premises, and shall have no further interest in the Lease. Neither the taking of possession of the Premises, nor the exercise of the option to make this assignment absolute shall relieve the Lessee of any of its obligations of performance or payment under the terms of the Lease.

3. In addition to the foregoing, the Collateral Agent may, whether or not it has exercised its right to take possession of the Premises, or its right to make this assignment absolute, in its sole and absolute discretion, and without notice to the Lessee, make payment of any defaulted obligation to the Lessor. Any amount so paid by the Collateral Agent shall constitute a demand obligation from the Lessee to the Collateral Agent. Nothing herein contained shall obligate the Collateral Agent to make such payment, nor shall the making of one or more such payments constitute an agreement on the Collateral Agent’s part to take any further or similar action.

4. The Lessee agrees that it will not alter, assign or transfer any interest in or modify the Lease or terminate the terms thereof or surrender its right of possession to the Premises without the prior written consent of the Collateral Agent.

The Lessee will fulfill or perform each and every condition and covenant of the Lease by the Lessee to be fulfilled or performed, give prompt notice to the Collateral Agent of any notice of default by the Lessee under the Lease received by the Lessee, together with a complete copy of any such notice, and, at the sole cost and expense of the Lessee, cure such default as required by the Lease. Any subsequent leases or agreements for use and occupancy of the Premises or any part thereof shall be and are hereby made subject to all the terms of this Collateral Assignment and the Lessee shall, upon request of the Collateral Agent, further assign and transfer the same to the Collateral Agent by assignment satisfactory to the Collateral Agent.

Attachment 3
240

5. The Lessee represents and warrants that the Lessee has not executed any prior assignment or pledge of any of its rights, nor are its rights encumbered, with respect to the Lease or the Premises.

6. This agreement shall be governed by the laws of the State of California, shall inure to the benefit of the Collateral Agent, its successors and assigns, and shall be binding upon the Lessee and its successors and assigns.

IN WITNESS WHEREOF, this agreement has been executed this ____ day of _______, 2025.

LESSOR/LANDLORD LESSEE/TENANT
City of San Clemente, a California Salty Turf LLC, a Delaware limited liability municipal corporation company
By: __________________________ By: __________________________ Andy Hall, City Manager Andrew Streett, Manager
By:____________________________
Jeff Moore, Manager
By:____________________________
Marcus Vanneman, Manager
241

EXHIBIT A

LEGAL DESCRIPTION OF PREMISES
That certain real property located in the City of San Clemente, County of Orange, State of California, described as follows:

All that certain real property situated in the County of Orange, State of California, described as follows: A portion of the Vista Hermosa Sports Park, located within the City of San Clemente, more particularly described as follows: Commencing at a point marked by the coordinates 33°27'37.4"N latitude and 117°36'25.4"W longitude, said point being the Point of Beginning; From the Point of Beginning, proceed in a southerly direction along the western boundary of Courtney's Sandcastle Playground, a distance of 190.40 feet; Then, turning and proceeding in a southeasterly direction, a distance of 98.20 feet; Then, turning and proceeding in a westerly direction, a distance of 130.20 feet; Then, turning and proceeding in a north western direction, a distance of 115.60 feet; Then, turning and proceeding in a westerly direction, a distance of 223.20 feet; Then, turning and proceeding in a northeasterly direction, a distance of 138.90 feet; Then, turning and proceeding in a easterly direction, a distance of 297.90 feet, to the Point of Beginning; Containing an area of

1.2 acres, more or less; Together with all appurtenances, easements, and rights belonging thereto
APN: 678-163-01
987 Avenida Vista Hermosa, San Clemente, California 92672 242
9545.0017 / 02939016.1 1
WHEN RECORDED, MAIL TO:

Nimisha Ashtana, First Vice President
American Business Bank
2400 E. Katella Avenue, Suite 700
Anaheim, CA 92807

MEMORANDUM OF TRI-PARTY AGREEMENT

FOR LEASE MORTGAGE

THIS MEMORANDUM OF TRI-PARTY AGREEMENT FOR LEASE MORTGAGE ("Memorandum"), dated as of June __, 2025, is made by and among the City of San Clemente, a California municipal corporation (“Lessor”), Salty Turf LLC, a Delaware limited liability company (“Lessee”) and American Business Bank, a California banking corporation (“Lender”), sometimes referred to collectively as “the Parties”, with respect to the following:

1. Lessor and Lessee entered into a certain Agreement to Lease, dated April 1, 2024 (the “Lease”) concerning real property commonly described 987 Avenida Vista Hermosa, San Clemente, CA 92673, and more fully described in the legal description attached thereto, marked as Exhibit “A” (the “Land”);

2. The Parties have entered into a certain Tri-Party Agreement For Leasehold Mortgage, dated June __, 2025, (the "Tri-Party Agreement"), whereby the Lessee has applied to Lender for an SBA 7(a) Construction-to-Perm Loan (the “Loan”) for the purpose of constructing a new miniature golf course upon the Land. The Loan will be secured by a deed of trust, an assignment of rents, and a security agreement related to Lessee’s personal property, all of which shall constitute liens upon the Lease and the leasehold estate created by the Lease (“Leasehold Estate”);

3. As a condition of Lender making the Loan to Lessee, Lender requires certain covenants and agreements be agreed to among the Parties as pre-conditions for approval of the Loan and for funding of the Loan. As a further condition for the making of the Loan, Lender requires that certain assignments and collateral be given to Lender, and that an agreement be entered into concerning (1) consent to, clarification of, and protection of the secured positions of Lender; (2) Lender’s ability to realize upon such collateral in the event of any default by Lessee; and, (3) to modify the Lease to protect Lender. These conditions are reflected in the Tri-Party Agreement;

4. This Memorandum is intended for recording purposes only to provide notice of the Tri-Party Agreement and is not to be construed as a complete summary of the terms and conditions thereof. This Memorandum is subject to the Tri-Party Agreement and any amendments, modifications, alterations, renewals, and extensions of the Tri-Party Agreement. The terms and provisions of the Tri-Party Agreement are incorporated in this Memorandum by reference. In the event of any conflict between this Memorandum and the Tri-Party Agreement, the provisions of the Tri-Party Agreement shall control; and,

5. This Memorandum may be executed in multiple counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same document.

Attachment 4
243
9545.0017 / 02939016.1 2
IN WITNESS WHEREOF, the Parties hereto have executed this Memorandum as of the date first above written.

LESSOR: CITY OF SAN CLEMENTE
By: ___________________________
Andy Hall, City Manager
LESSEE: SALTY TURF LLC
By: ________________________
Andrew Streett, Manager
By: ________________________
Marcus Vanneman, Manager
By: ________________________
Jeff Moore, Manager
LENDER: AMERICAN BUSINESS BANK
By: ________________________
Nimisha Ashtana, First Vice President

244
9545.0017 / 02939016.1 3
EXHIBIT “A” TO

MEMORANDUM OF TRI-PARTY AGREEMENT

FOR LEASEHOLD MORTGAGE
That certain real property located in the City of San Clemente, County of Orange, State of California, described as follows:

All that certain real property situated in the County of Orange, State of California, described as follows: A portion of the Vista Hermosa Sports Park, located within the City of San Clemente, more particularly described as follows: Commencing at a point marked by the coordinates 33°27'37.4"N latitude and 117°36'25.4"W longitude, said point being the Point of Beginning; From the Point of Beginning, proceed in a southerly direction along the western boundary of Courtney's Sandcastle Playground, a distance of 190.40 feet; Then, turning and proceeding in a southeasterly direction, a distance of 98.20 feet; Then, turning and proceeding in a westerly direction, a distance of 130.20 • feet; Then, turning and proceeding in a north western direction, a distance of 115.60 feet; Then, turning and proceeding in a westerly direction, a distance of 223.20 feet; Then, turning and proceeding in a northeasterly direction, a distance of 138.90 feet; Then, turning. and proceeding in a easterly direction, a distance of 297.90 feet, to the Point of Beginning; Containing an area of 1.2 acres, more or less; Together with all appurtenances, easements, and rights belonging thereto
APN: 678-163-01
Common description: 987 Avenida Vista Hermosa, San Clemente, California 92672. 245
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11H.

Submitted By: Public Works
Prepared By: Julie Schmidt, Sr. Management Analyst
Subject:
..titl e

CONSIDERATION OF A RESOLUTION APPROVING THE PURCHASE OF WATER METERS FOR FISCAL YEAR 2025- 26 FROM FERGUSON WATERWORKS AND METRON-FARNIER AS SOLE SOURCE VENDORS IN A CUMULATIVE AMOUNT NOT TO EXCEED $122,140, AND

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

Funding for water meter purchases and replacements is included in the approved Fiscal Year 2025-26 budget; no additional appropriation is being requested. Budget allocations have been confirmed for the following accounts:
 052-463-42495 $2,140
 052-466-43420-000-23401 $120,000
Summary:

Before the City Council is consideration of a resolution authorizing expenditures for Fiscal Year 2025-26 for water meter purchases and replacements from Ferguson Waterworks and MetronFarnier as sole source vendors based on the attached fixed price quotes.

Background:

The City's water service area contains approximately 17,600 water meters with the majority ranging in size from one to six inches. There is a need for Utilities staff to periodically replace old or damaged meters, and meters are also installed for new water services. For smaller water meters (one to two inches), which are the most commonly purchased meters, the City has purchased Neptune meters through Ferguson Waterworks for many years.

Prior to the use of Neptune Meters, the City used Actaris Meters, which proved very reliable, accurate, and were a good fit for the City’s needs. When Actaris Meters were discontinued, Utilities staff researched and tested several meter brands available in Southern California, and determined that Neptune meters were the most reliable, the highest quality, and were the best fit for the City's needs for small meters. The recommendation to continue using Neptune for small meters ensures the use of quality products, reliability, and meter consistency throughout the distribution system, making it necessary to stock parts for only one brand of small meters. Irvine Ranch Water District and several other local agencies also use Neptune meters. Ferguson Waterworks, though not a local vendor, is the only distributor in Southern California for Neptune water meters.
246
Meeting Date: August 5, 2025 Agenda Item: 11H.

CITY OF SAN CLEMENTE 2
For large meters (three to 12 inches), Utilities staff previously evaluated multiple vendors and discussed meter performance with other local agencies. Staff chose Metron-Farnier based on performance and due to the exceptional accuracy with the large range from low to high flows that the meters are capable of reading. Metron-Farnier, though not a local vendor, is the only distributor for these types of meters.

City Policy Number 201-2-1, Procurement Policy and Procedure, allows for these types of purchases as follows:
• V- Purchasing Cycle, Section 7.6.4
This section of the Policy allows these types of purchases under a "Contract Purchase Order" which 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. The price quotes attached for Fiscal Year 2025-26 from Ferguson Waterworks and Metron-Farnier would result in Contract Purchase Orders. • V - Purchasing Cycle, Section 7.6.4 (a)
This section of the Policy regarding "Exclusive Requirements" would apply to these Contract Purchase Orders since no guarantee is made as to the quantity to be purchased, but it is agreed any and all requirements will be purchased only under each Contract Purchase Order and from no other sources.
• XI - Exemptions To The Formal & Informal Solicitation Process, Section 1.7 This section of the Policy allows for exemption from the Informal and Formal Bidding Process for "Sole Source" suppliers which allows approval of the attached price quotes with these vendors since Ferguson Waterworks is the only distributor in Southern California for Neptune Meters, and Metron-Farnier is the only distributor for the large meters that the City purchases.

Attached are the fixed price quotes from Ferguson Waterworks and Metron-Farnier for Fiscal Year 2025-26. The prices for the smaller meters from Ferguson Waterworks reflect an average

3.5% increase from Fiscal Year 2024-25, and the prices for the large meters from Metron-Farnier reflect no increase from Fiscal Year 2024-25.

Council Options:
 Adopt Resolution No. 25-109, authorizing the Purchase of Water Meters for Fiscal Year 2025- 26 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.
 Modify and adopt Resolution No. 25-109.
 Continue the Item and direct staff to provide additional information.  Deny Resolution No. 25-109 and deny the approval of the purchase of water meters for Fiscal Year 2025-26.
247
Meeting Date: August 5, 2025 Agenda Item: 11H.

CITY OF SAN CLEMENTE 3
Environmental Review/Analysis:

The purchase of water meters has no potential to result in either a direct or physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Staff recommends that the City Council determine this action to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 of the state CEQA Guidelines Section 15301 (14 CCR Section 15301, Existing Facilities). Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.

Recommended Actions:

Staff Recommendation ..recommendation
STAFF RECOMMENDS THAT the City Council adopt Resolution No. 25-109, which would:

1. Find the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the state CEQA Guidelines.

2. Approve the purchase of water meters from Ferguson Waterworks as a sole source vendor based on the attached fixed price quote, provided as Attachment 2 of the Administrative Report dated August 5, 2025, and on file with the City Clerk.

3. Approve the purchase of water meters from Metron-Farnier as a sole source vendor based on the attached fixed price quote, provided as Attachment 3 of the Administrative Report dated August 5, 2025, and on file with the City Clerk.

4. Approve the expenditure for water meter purchases for Fiscal Year 2025-26 for a total amount not to exceed $122,140.
..end
Attachments:

1. Resolution No. 25-109

2. Price quote for small water meters from Ferguson Waterworks for Fiscal Year 2025-26

3. Price quote for large water meters from Metron-Farnier for Fiscal Year 2025-26 Notification:

None.
248
RESOLUTION NO. 25-109

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING THE
PURCHASE OF WATER METERS FOR FISCAL YEAR 2025-
26 FROM FERGUSON WATERWORKS AND METRONFARNIER FOR A CUMULATIVE AMOUNT NOT TO EXCEED $122,140 BASED ON FIXED PRICING, AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION
15301) OF THE STATE CEQA GUIDELINES
WHEREAS, the City of San Clemente provides adequate supplies of potable and recycled water while meeting health and quality standards of the State Water Resources Control Board - Drinking Water Division and Federal Safe Water Drinking Act; and WHEREAS, the City’s water service area contains approximately 17,600 water meters ranging in size from one to six inches; and
WHERAS, City staff periodically replaces old or damaged water meters as needed, and meters are also installed for new water services; and WHERAS, City staff previously researched and tested various water meter brands and received feedback from other agencies related to water meters; and WHERAS, Neptune meters are the most reliable, the highest quality, and the best fit for the City’s needs for small meters, and Ferguson Waterworks is the only distributor in Southern California for Neptune water meters; and
WHEREAS, the large meters distributed by Metron-Farnier are the best fit for the City’s large meters based on performance and due to their exceptional accuracy with the large range from low to high flows that the meters are capable of reading, and MetronFarnier is the only distributor in Southern California for these types of meters; and WHEREAS, Section XI - Exemptions To The Formal & Informal Solicitation Process, Section 1.7 of City Policy Number 201-2-1 (Procurement Policy and Procedure) allows for exemption from the Informal and Formal Bidding Process for sole source suppliers within the geographic region; and
WHEREAS, City staff has obtained quotes from Ferguson Waterworks and MetronFarnier for fixed pricing for the various sizes of meters that the City uses for Fiscal Year 2025-26 and the pricing is fair and reasonable; and
WHEREAS, purchasing the meters from Ferguson Waterworks and Metron-Farnier is in the best interests of the City and the public.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, Attachment 1
249
Resolution No. 25-109 Page 2
determine and resolve as follows:

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

SECTION 2. That this project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, and there is no reasonable possibility that the activity will have a significant direct or foreseeable indirect effect on the environment.

SECTION 3. That under Section 1.7 of City Policy Number 201-2-1, Ferguson Waterworks qualifies as a sole source supplier of Neptune water meters and Metron-Farnier qualifies as a sole source supplier of certain large water meters and the purchase of water meters for Fiscal Year 2025-26 from Ferguson Waterworks and Metron-Farnier are exempt from the City’s formal bidding process.

SECTION 4. That the purchase of water meters for Fiscal Year 2025-26 from Ferguson Waterworks and Metron-Farnier for a cumulative amount not to exceed $122,140 based on the fixed pricing presented to the City Council on August 5, 2025 is hereby approved.

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 ____________________, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California 250
Resolution No. 25-109 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-109 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
251
Date:
1 2
3 4
5 6
Item Quantity Per Item

1.5" Neptune T-10 ProCoder, Pit Pad, CF (ED2H11RPHF21S2947) $0.00
0 0
7/1/25-6/30/26
San Clemente, City of
380 Avenida Pico Valid Until:

San Clemente, CA 92672
$821.00
0 $821.00
Net Thirty Days
5/8" x 3/4" Neptune T-10 ProCoder, Pit Pad, CF
(ED2B22RPHF21S2947)
Product or Service Description
$0.00
Terms:
$0.00
$687.00
2" Neptune T-10 ProCoder, Pit Pad, CF (ED2J11RPHF21S2947) Reclaim 2" Neptune T-10 ProCoder, Pit Pad, CF
Quotation #
Project:

AMI Specialists: Adam Milauskas
5/21/2025
Ship to:

Julie Schmidt Annual ProCoder Meter Quote
San Clemente, City of 05212025
Extended
0 0
1" Neptune T-10 ProCoder, Pit Pad, CF (ED2F22RPHF21S2947) $283.00 $152.00
$0.00
$0.00
11909 Tech Center Ct.

Poway, CA 92064
Phone: 949.467.4758
Fax: 858.391.5958
Prices quoted are for this project only and do not include sales or use taxes, if any. Quoted prices are based upon receipt of the total quantity for immediate shipment or shipments within thirty (30) days of a bid opening only, and are offered contingent upon the Buyer's acceptance of Seller's terms and conditions. Seller objects to all terms and conditions. Future shipments subject to price changes. Seller not responsible for delays caused beyond our control. Purchaser's sole warranties, if any, are those provided by the manufacturer. SELLER DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANT ABILITY OR FITNESS OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL

SELLER BE LIABLE FOR ANY INCIDENTAL, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING DIRECTLY OR INDIRECTLY FROM THE OPERATION OR USE OF THE PRODUCT. SELLER'S LIABILITY, IF ANY, SHALL BE LIMITED TO THE NET SALES PRICE RECEIVED BY SELLER. All returns are subject to Ferguson and/or Manufacutures return policy and maybe subject to a restocking fee. Complete terms and conditions are available upon request or can be view at www.ferguson.com/sales-terms.html
Attachment 2
252
Company 5665 Airport Blvd Purchase Order #:

Address: Boulder, Colorado 80301 Quote Number: Q-01918
United States Created Date: 06/12/2024
Expiration Date: 06/30/2026
Prepared By: Dustin Rivas
Email: [email protected]
Bill To
Name: San Clemente Ship To Name: San Clemente
Bill To: 390 E Avenida Pico Ship To: 390 E Avenida Pico BLDG N San Clemente, California 92672 San Clemente, California 92672
United States United States
Quote To: Additional To:
,
Quantity Product Line Item Description Sales Price Total Price 1 Altair 5/8x3/4 7.5"
LL
This package contains the following
products:

Altair 5/8x3/4 7.5" LL
Innov8 Basic
3W leads
$195.00}
$195.00
1 Spectrum 30DB
5/8x3/4 Brass
This package contains the following
products:

Spectrum 30DB 5/8x3/4 Brass
Innov8 Basic
3W leads
$205.00}
$205.00
1 Spectrum 50DL 1"

10.75" LL
This package contains the following
products:

Spectrum 50DL 1" 10.75" LL
Innov8 Basic
3W leads
$335.00}
$335.00
1 Spectrum 88DL

1.5" 13" LL
This package contains the following
products:

Spectrum 88DL 1.5" 13" LL
$645.00}
$645.00
Attachment 3
253
Innov8 Basic
3W leads
1 Spectrum 130D 2"
10" LL
This package contains the following
products:

Spectrum 130D 2" 10" LL
Innov8 Basic
3W leads
$950.00}
$950.00
1 Spectrum 175D 3"
12" LL
This package contains the following
products:

Spectrum 175D 3" 12" LL
Innov8 Basic
3W leads
$1,675.00}
$1,675.00
1 Spectrum 500D 3"
This package contains the following
products:

Spectrum 500D 3"
Innov8 Basic
3W leads
$2,095.00}
$2,095.00
1 Spectrum 500D 4"
This package contains the following
products:

Spectrum 500D 4"
Innov8 Basic
3W leads
$2,595.00}
$2,595.00
1 Spectrum 1000D
4"
This package contains the following
products:

Spectrum 1000D 4"
Innov8 Basic
3W leads
$3,295.00}
$3,295.00
1 Spectrum 1000D
6"
This package contains the following
products:

Spectrum 1000D 6"
Innov8 Basic
3W leads
$3,995.00}
$3,995.00
1 Enduro 2800D 6" This package contains the following
products:

Enduro 2800D 6"
$5,500.00}
$5,500.00
254
Innov8 Basic
3W leads
1 Enduro 2800D 8"
This package contains the following
products:

Enduro 2800D 8"
Innov8 Basic
3W leads
$5,895.00}
$5,895.00
1 Voyager Hydrant
Meter 3"
This package contains the following
products:

Voyager Hydrant Meter 3"
Innov8-VN
Antenna Stubby 4G
$1,750.00}
$1,750.00
1 Cellular
Connectivity
Hydrant
3 Year Annual Service Plan Hydrant $0.00}$0.00
Residential Programming: 100 Cubic Feet
Commercial Programming: 100 Cubic Feet
Description:

Terms and Conditions:
• FOB Boulder, CO
• Payment net 30 days from date of shipment
• All Non-Stock/Custom product sales are non-returnable and non-refundable 255
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11I.

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

CONSIDERATION OF A RESOLUTION APPROVING SUPPLEMENTAL APPROPRIATIONS

FOR GOLF COURSE MAINTENANCE EQUIPMENT, LANDSCAPE IMPROVEMENTS, AND

FACILITY REPAIRS, APPROVING SUCH PROJECTS AND FINDING THE PROJECTS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body Fiscal Impact:

The total amount requested for supplemental appropriation from the Golf Fund is $165,071. The supplemental appropriation will be used for the proposed purchases outlined in this staff report.

The supplemental appropriation would come from the Golf Fund Balance and increase the budget in the following accounts:

ACCOUNT AMOUNT PURPOSE
056-661-43890 $ 56,000.00 Landscape improvements, bathroom repairs, and HVAC replacement
056-666-45500 74,071.00 Golf maintenance equipment
056-666-45330 35,000.00 Replacement of water heater and new flooring for the kitchen
TOTAL $ 165,071.00
Summary:

Staff recommends that the City Council approve supplemental appropriations from the Golf Fund Unassigned Fund Balance and the Capital Replacement Reserve Fund (CIF) to address a series of deferred maintenance projects and facility upgrades at the San Clemente Municipal Golf Course. The proposed expenditures include the replacement of essential golf course maintenance equipment (including decks, sidewinders, and a tractor), landscape improvements near the clubhouse and parking areas, roof repairs, and maintenance upgrades to on-course restrooms at holes #13 and #16, and HVAC replacement at the Golf Maintenance Shop. The CIF appropriation will be used for the replacement of a water heater and flooring in the restaurant kitchen.

Background:

Due to prolonged deferral of maintenance activities over the past five years, several areas of the San Clemente Municipal Golf Course have experienced wear and deterioration that now require attention to ensure operational efficiency, safety, and a positive customer experience. These improvements are critical to preserving the City's golf course assets and maintaining service standards. With available reserves in the appropriate Golf Course funds, staff is seeking authorization to address these priority issues.
256
Meeting Date: August 5, 2025 Agenda Item: 11I.

CITY OF SAN CLEMENTE 2
Council Options:
 Adopt Resolution No. 25-110, approve supplemental appropriations totaling $165,071 from designated Golf Course funds to address long-deferred maintenance needs, including the replacement of maintenance equipment, landscape improvements, on-course bathroom and HVAC repairs, and clubhouse facility upgrades. These improvements are fully funded through available Golf Fund reserves and are categorically exempt from CEQA.  Amend and adopt Resolution No. 110.
 Provide alternate direction to staff.
 Take no action.

Environmental Review/Analysis:

Pursuant to the California Environmental Quality Act (CEQA), these projects are categorically exempt under CEQA Guidelines Section 15302 (Class 2 – Replacement or Reconstruction), which applies to the replacement of existing facilities with new facilities of substantially the same purpose and capacity.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-110, which will:

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

2. Approve a supplemental appropriation of $74,071 from the Golf Depreciation Reserve Fund Balance to the Golf Depreciation Reserve Machinery & Equipment Account No. 056-666- 45500-000-00000 to fund the replacement of maintenance machinery and equipment and approve such projects;

3. Approve a supplemental appropriation of $56,000 from the Golf Fund Operating Unassigned Fund Balance to Golf Course Maintenance Other Contractual Services Account No. 056-661- 43890-000-00000 to fund landscape improvements, golf course bathroom repairs, and HVAC replacement at the maintenance shop and approve such projects;

4. Approve a supplemental appropriation of $35,000 from the Golf Depreciation Reserve Fund Balance to the Golf Depreciation Reserve Tenant Improvements Account No. 056-666-45330- 000-00000 for the replacement of the water heater serving the snack bar and restrooms, and the replacement of kitchen flooring in the clubhouse restaurant and approve such projects. ..end
Attachment:

1. Resolution No. 25-110
257
Meeting Date: August 5, 2025 Agenda Item: 11I.

CITY OF SAN CLEMENTE 3
Notification:

Golf Course Committee
258
Attachment 1
RESOLUTION NO. 25-110

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING

SUPPLEMENTAL APPROPRIATIONS FROM THE GOLF

COURSE FUNDS FOR EQUIPMENT REPLACEMENT,
FACILITY IMPROVEMENTS, AND REPAIRS; APPROVING
SUCH PROJECTS; AND FINDING THE PROJECTS

CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CEQA
GUIDELINES SECTION 15302 (CLASS 2, REPLACEMENT
OR RECONSTRUCTION, 14 CCR §15302)
WHEREAS, the San Clemente Municipal Golf Course is an enterprise fund facility of the City, supported by user fees and operated in accordance with sound asset management and maintenance practices; and
WHEREAS, several infrastructure and equipment needs have been identified as deferred maintenance priorities, including the replacement of essential maintenance equipment, landscape improvements, bathroom repairs, HVAC replacement, and upgrades to clubhouse facilities; and
WHEREAS, the City has determined that sufficient funds are available in the Golf Depreciation Reserve Unassigned Fund Balance, Golf Operating Fund Unassigned Fund Balance, and Golf Capital Replacement Fund Reserve to fund these projects and the projects are in the best interests of the City and the public.

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

SECTION 1. That based on the record as a whole, the projects are hereby determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302 (Class 2 – Replacement or Reconstruction) because they consist of the replacement or reconstruction of existing equipment and facilities that will be located on the same site and have substantially the same purpose and capacity as the structure(s) replaced with no expansion of use, and there is no possibility of direct or foreseeable indirect substantial impacts on the environment.

SECTION 2. That a supplemental appropriation of $79,964 from the Golf Depreciation Reserve Unassigned Fund Balance to the Golf Depreciation Reserve Machinery & Equipment Account No. 056-666-45500-000-00000 to fund the replacement of maintenance machinery and equipment is hereby approved.

SECTION 3. That a supplemental appropriation of $56,000 from the Golf Operating Fund Unassigned Fund Balance to the Golf Course Maintenance Other Contractual Services Account No. 056-661-43890-000-00000 to fund landscape improvements, golf course bathroom repairs, and HVAC replacement at the maintenance shop is hereby approved.
259
Resolution No. 25-110 Page 2
SECTION 4. That a supplemental appropriation of $35,000 from the Golf Capital Replacement Fund Reserve to the Golf Depreciation Reserve Tenant Improvements Account No. 056-666-45330-000-00000 to fund the replacement of the water heater serving the snack bar and restrooms, and the replacement of kitchen flooring in the clubhouse restaurant is hereby approved.

SECTION 5. That the projects set forth above are hereby approved. Staff is authorized and directed to take such actions as are necessary and proper to proceed with such projects and accomplish the purposes of this resolution.

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

PASSED AND ADOPTED this _____ day of ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California 260
Resolution No. 25-110 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-110 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
261
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 5, 2025 Agenda Item: 11J.

Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Chief Administrative Officer Subject:
..titl e
REPEAL RESOLUTION 25-86 AND ADOPT RESOLUTION 25-111 TO SELECT PUBLIC AGENCY RETIREMENT SERVICES (PARS) AS THE CITY’S SECTION 115 PENSION

INVESTMENT TRUST ADMINISTRATOR, IMPLEMENT AN INVESTMENT STRATEGY

ACCORDING TO THE RECOMMENDATIONS OF THE INVESTMENT ADVISORY

COMMITTEE, APPROVE AND AUTHORIZE EXECUTION OF RELATED AGREEMENTS, AND FUNDING THE TRUST ..body
Fiscal Impact:

Approximately $1.18 million is available in the FY 2024-25 Budget for funding of the Section 115 Trust.

Summary:

At the June 17, 2025 City Council Meeting, the City Council adopted Resolution 25-86, approving Public Agency Retirement Services (PARS) to administer the City’s Section 115 Pension Investment Trust Fund (115 Trust) and recommending the Capital Appreciation portfolio within the Tactical Management investment strategy.

After adoption, staff determined that a modification to Resolution 25-86 is necessary to establish participation in the trust. Specifically, Section 4 has been added, which states: “That the City Council hereby adopts the PARS Public Agencies Post-Employment Benefits Trust”. In addition, the updated resolution more clearly reflects the Council Actions listed in this report. While staff considers these prudent or necessary clarifications, they do not reflect any substantive changes to the actions that staff intended to recommend for approval on June 17, 2025.

Background:

In 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68, which requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a net pension liability (unfunded accrued liability) on their balance sheet. This represents the difference between the City’s total pension liability (actuarial accrued liability) and actual plan assets. GASB 68 became effective for fiscal years starting after June 15, 2014.

To reduce the GASB 68 net pension liability figure, the City’s only prior option was to commit additional funds to CalPERS (in excess of its annual required contributions) to reduce its unfunded liability. However, the IRS established that the City could create a separate trust to "pre-fund" its CalPERS unfunded liability. This would provide the City with an alternative to sending funds to CalPERS that will allow for greater local control over assets, with future excess contributions transferred to CalPERS at the City's discretion. The 115 Trust permits the City, 262
Meeting Date: August 5, 2025 Agenda Item: 11J.

CITY OF SAN CLEMENTE 2
under federal and state law, to invest in a diversified array of investments to maximize long term investment returns.

During the Long-term Financial plan on February 28, 2023, City Council reserved funds to be used toward the payment of the unfunded accrued pension liability. This amount was budgeted for $1.18 million in the Fiscal Year 2023-24 Budget. Since then, the IAC has reviewed and discussed several options: PARS (Public Agency Retirement Services), CalPERS (California Public Employees’ Retirement System), and the possibility of the City establishing its’ own Trust.

After careful consideration, the IAC is recommending the 115 Trust be administered by PARS, under the direction of the City Treasurer with the support of the IAC. PARS administers a multiagency trust, with many municipalities participating throughout California.

Within PARS, the City has an option of both Index-based and Managed Tactical investment strategies, each with several portfolios of varying investment allocation and risk tolerance. The Managed Tactical Strategy offers Conservative, Moderately Conservative, Moderate, Balanced, and Capital Appreciation portfolios, which are tailored to meet the needs of an organization with regard to risk tolerance and financial goals. The IAC is recommending the Tactical Management Strategy, with a Capital Appreciation portfolio/risk tolerance. It is important to note that once selected, the City is not locked into a particular investment strategy. PARS allows flexibility for the City to move to a different portfolio, should the City choose to refine the investment strategy.

Approximately $1.18 million was appropriated in the FY 2023-24 Budget for payment of the unfunded accrued pension obligation. These funds were carried forward into the FY 2024-25 Budget and are available to provide preliminary funding of the 115 Trust.

Council Options:
 Repeal Resolution No. 25-86 and adopt Resolution No. 25-111, which will establish PARS as the City’s Section 115 Pension Investment Trust Administrator, implement an investment strategy according to the recommendations of the Investment Advisory Committee and authorize execution of various related agreements.
 Modify and Adopt Resolution No. 25-111.
 Continue the item with direction given to staff.
 Decline to approve Public Agency Retirement Services (PARS) to administer and do not establish a Section 115 Pension Investment Trust Fund.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Repeal Resolution No. 25-86 and Adopt Resolution 25-111, which would:

1. Appoint the City Treasurer, as the City’s Plan Administrator for the Section 115 Trust; 263
Meeting Date: August 5, 2025 Agenda Item: 11J.

CITY OF SAN CLEMENTE 3

2. Adopt the PARS Public Agencies Post-Employment Benefits Trust dated November 5, 2014;

3. Appoint the Public Agency Retirement Services (PARS) to serve as the Trust Administer of the City’s Section 115 Pension Investment Trust Fund;

4. Approve the IAC recommendation to select the Capital Appreciation portfolio within the Tactical Management investment strategy;

5. Approve the PARS agreement documents attached to this report;

6. Authorize the City Treasurer to execute the agreements between the City of San Clemente, Public Agency Retirement Services (PARS) and US Bank, specifically the:
a. PARS Agreement for Administrative Services;
b. PARS Adoption Agreement;
c. PARS Trustee Investment Management Fee Schedule;
d. US Bank Authorized Signers Form;
e. US Bank Investment Strategy Selection and Disclosure Form; and

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

1. Resolution No. 25-111

2. Resolution No. 25-86

3. Staff Report dated June 17, 2025 - Item 10D - Consideration Of Selecting PARS As The City’s Section 115 Pension Investment Trust Administrator

4. PARS Trust Agreement dated Nov 5, 2014

5. Draft Agreement for Administrative Services

6. Sample Adoption Agreement

7. Sample Trustee Investment Management Fee Schedule

8. Sample Authorized Signers Form

9. Sample Investment Strategy Selection and Disclosure Form Notification:

None.
264
Attachment 1
RESOLUTION NO. 25-111

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPOINTING THE CITY
TREASURER AS THE CITY’S PLAN ADMINISTRATOR FOR
THE SECTION 115 TRUST PROGRAM, ADOPTING THE

PARS PUBLIC AGENCIES POST-EMPLOYMENT

BENEFITS TRUST, SELECTING PUBLIC AGENCY
RETIREMENT SERVICES AS THE CITY’S SECTION 115

PENSION TRUST ADMINISTRATOR, IMPLEMENTING AN

INVESTMENT STRATEGY ACCORDING TO THE

RECOMMENDATIONS OF THE INVESTMENT ADVISORY

COMMITTEE, APPROVING AND AUTHORIZING

EXECUTION OF THE PARS AGREEMENT DOCUMENTS
AND FUNDING THE TRUST WITH $1.18 MILLION FROM

THE GENERAL FUND
WHEREAS, the Government Accounting Standards Board (GASB) issued Statement No. 68, requiring governmental employers that sponsor Defined Benefit plans to recognize a net pension liability (unfunded accrued liability) on their balance sheet; and WHEREAS, to reduce the GASB 68 net pension liability figure, the City can create a separate trust to "pre-fund" its pension unfunded accrued liability; and WHEREAS, funding a Section 115 Trust will set aside funds to address the pension unfunded accrued liability, while providing the City with greater local control over assets, with future contributions transferred to pension systems at the City's discretion; and WHEREAS, during the Long-term Financial Plan workshop on February 28, 2023, the City Council reserved funds to be used toward the payment of the unfunded accrued pension liability and the amount of $1.2 million was included in the Fiscal Year 2023-24 Budget; and
WHEREAS, the Investment Advisory Committee (IAC) has reviewed and discussed several options for the administration and investment strategy of the Section 115 Trust; and
WHEREAS, after careful consideration, the IAC is recommending the Section 115 Trust be administered by Public Agency Retirement Services (PARS), under the direction of the City Treasurer with the support of the IAC; and WHEREAS, within PARS, the City has an option of both Index-based and Managed Tactical investment strategies, each with several portfolios of varying investment allocation and risk tolerance; and
WHEREAS, the IAC is recommending the Capital Appreciation portfolio within Tactical Management Strategy; and
WHEREAS, the adoption and operation of the Program has no effect on any current or former employee’s entitlement to post-employment benefits; and 265
Resolution No. 25-111 Page 2
WHEREAS, the City’s funding of the Section 115 Trust does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and
WHEREAS, the City reserves the right to make contributions, if any, to the Program; and
WHEREAS, at the June 17, 2025 City Council Meeting, the City Council adopted Resolution 25-86, approving (PARS) to administer the Section 115 Trust and upon further examination wishes to clarify the actions set forth therein.

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

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

SECTION 2. That Resolution 25-86 is hereby repealed.

SECTION 3. That the City Council hereby adopts the PARS Public Agencies PostEmployment Benefits Trust executed November 5, 2014 by U.S. National Bank Association and Public Agency Retirement Services, attached to the staff report dated August 5, 2025 for reference.

SECTION 4. That the City Council hereby appoints the City Treasurer, as the City’s Plan Administrator for the 115 Trust.

SECTION 5. That the City Council hereby approves, appoints and authorizes the Public Agency Retirement Services (PARS) to serve as the Trust Administer of the City’s Section 115 Pension Investment Trust Fund (115 Trust).

SECTION 6. That the City Council hereby approves the IAC recommendation to select the Capital Appreciation portfolio within the Tactical Management investment strategy.

SECTION 7. That the City Council hereby approves the form of the PARS agreement documents as attached to the staff report dated August 5, 2025, specifically the:
a. PARS Agreement for Administrative Services;
b. PARS Adoption Agreement;
c. PARS Trustee Investment Management Fee Schedule;
d. US Bank Authorized Signers Form; and
e. US Bank Investment Strategy Selection and Disclosure Form.

SECTION 8. That the City’s Plan Administrator is hereby authorized to execute the PARS legal and administrative documents identified in Section 6 above on behalf of the City in forms substantially similar to those presented to the City Council on August 5, 2025 with any changes approved by the Investment Advisory Committee in consultation with the City Attorney, and to execute such other documents and take whatever additional 266
Resolution No. 25-111 Page 3
actions as are necessary and proper to maintain the City’s participation in the 115 Trust, maintain compliance with any relevant law or regulation now existing or as may be enacted or amended, properly and prudently administer the City’s 115 Trust and accomplish the purposes of this resolution.

SECTION 9. That the Section 115 Trust will be preliminarily funded in the amount of $1.18 million from General Fund account number 001-203-48630.

SECTION 10. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this day of , 2025.

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. 25-111 was adopted at a regular meeting of the City Council of the City of San Clemente held on day of 2025, by the following vote:

AYES:

NOES:

ABSENT:

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

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

Elizabeth A. Mitchell, City Attorney
267
Attachment 2
RESOLUTION NO. 25-86

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, SELECTING PUBLIC
AGENCY RETIREMENT SERVICES AS THE CITY’S
SECTION 115 PENSION TRUST ADMINISTRATOR,

IMPLEMENTING AN INVESTMENT STRATEGY

ACCORING TO THE RECOMMENDATIONS OF THE

INVESTMENT ADVISORY COMMITTEE, AND FUNDING
THE TRUST WITH $1.18 MILLION FROM THE GENERAL
FUND
WHEREAS, the Government Accounting Standards Board (GASB) issued Statement No. 68, requiring governmental employers that sponsor Defined Benefit plans to recognize a net pension liability (unfunded accrued liability) on their balance sheet; and WHEREAS, to reduce the GASB 68 net pension liability figure, the City can create a separate trust to "pre-fund" its pension unfunded accrued liability; and WHEREAS, funding a Section 115 Trust will set aside funds to address the pension unfunded accrued liability, while providing the City with greater local control over assets, with future contributions transferred to pension systems at the City's discretion; and WHEREAS, during the Long-term Financial Plan workshop on February 28, 2023, the City Council reserved funds to be used toward the payment of the unfunded accrued pension liability and the amount of $1.2 million was included in the Fiscal Year 2023-24 Budget; and
WHEREAS, the Investment Advisory Committee (IAC) has reviewed and discussed several options for the administration and investment strategy of the Section 115 Trust; and
WHEREAS, after careful consideration, the IAC is recommending the Section 115 Trust be administered by Public Agency Retirement Services (PARS), under the direction of the City Treasurer with the support of the IAC; and WHEREAS, within PARS, the City has an option of both Index-based and Managed Tactical investment strategies, each with several portfolios of varying investment allocation and risk tolerance; and
WHEREAS, the IAC is recommending the Capital Appreciation portfolio within Tactical Management Strategy; and
WHEREAS, the adoption and operation of the Program has no effect on any current or former employee’s entitlement to post-employment benefits; and 268
Resolution No. 25-86 Page 2
WHEREAS, the City’s funding of the Section 115 Trust does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and
WHEREAS, the City reserves the right to make contributions, if any, to the Program.

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

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

SECTION 2. That the City Council hereby appoints the City Treasurer, as the City’s Plan Administrator for the Program.

SECTION 3. That the City Council hereby approves Public Agency Retirement Services (PARS) to serve as the Trust Administer of the City’s Section 115 Pension Investment Trust Fund (115 Trust).

SECTION 4. The City’s Plan Administrator is hereby authorized to execute the PARS legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City’s participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City’s 115 Trust Program.

SECTION 5. The Section 115 Trust will be preliminarily funded in the amount of $1.18 million from General Fund account number 001-203-48630.

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

PASSED AND ADOPTED this day of , 2025.

ATTEST:

CITY CLERK of the City of Steve Knoblock, Mayor of
San Clemente, California the City of San Clemente,
California
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Resolution No. 25-86 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-86 was adopted at a regular meeting of the City Council of the City of San Clemente held on day of 2025, by the following vote:

AYES:

NOES:

ABSENT:

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

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

Elizabeth A. Mitchell, City Attorney
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910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

CITY OF SAN CLEMENTE
Meeting Date: June 17, 2025 Agenda Item: 10D.

Submitted By: Finance and Administrative Services
Prepared By: Charlie Smith, City Treasurer
Brian Brower, Chief Administrative Officer
Subject:
..titl e

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 ..body Fiscal Impact:

Approximately $1.18 million is available in the FY 2024-25 Budget for funding of the Section 115 Trust.

Summary:

At the Investment Advisory Committee (IAC) Special Meeting on May 27, 2025, the IAC unanimously agreed to recommend City Council approve Public Agency Retirement Services (PARS) to administer the City’s Section 115 Pension Investment Trust Fund (115 Trust) and has recommended the Capital Appreciation portfolio within the Tactical Management investment strategy.

Background:

In 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68, which requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a net pension liability (unfunded accrued liability) on their balance sheet. This represents the difference between the City’s total pension liability (actuarial accrued liability) and actual plan assets. GASB 68 became effective for fiscal years starting after June 15, 2014.

To reduce the GASB 68 net pension liability figure, the City’s only prior option was to commit additional funds to CalPERS (in excess of its annual required contributions) to reduce its unfunded liability. However, the IRS established that the City could create a separate trust to "pre-fund" its CalPERS unfunded liability. This would provide the City with an alternative to sending funds to CalPERS that will allow for greater local control over assets, with future excess contributions transferred to CalPERS at the City's discretion. The 115 Trust permits the City, under federal and state law, to invest in a diversified array of investments to maximize long term investment returns.

During the Long-term Financial plan on February 28, 2023, City Council reserved funds to be used toward the payment of the unfunded accrued pension liability. This amount was budgeted for $1.18 million in the Fiscal Year 2023-24 Budget. Since then, the IAC has reviewed and discussed several options: PARS (Public Agency Retirement Services), CalPERS (California 1 Attachment 3
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Meeting Date: June 17, 2025 Agenda Item: 10D.

CITY OF SAN CLEMENTE
Public Employees’ Retirement System), and the possibility of the City establishing its’ own Trust.

After careful consideration, the IAC is recommending the 115 Trust be administered by PARS, under the direction of the City Treasurer with the support of the IAC. PARS administers a multiagency trust, with many municipalities participating throughout California.

Within PARS, the City has an option of both Index-based and Managed Tactical investment strategies, each with several portfolios of varying investment allocation and risk tolerance. The Managed Tactical Strategy offers Conservative, Moderately Conservative, Moderate, Balanced, and Capital Appreciation portfolios, which are tailored to meet the needs of an organization with regard to risk tolerance and financial goals. The IAC is recommending the Tactical Management Strategy, with a Capital Appreciation portfolio/risk tolerance. It is important to note that once selected, the City is not locked into a particular investment strategy. PARS allows flexibility for the City to move to a different portfolio, should the City choose to refine the investment strategy.

Approximately $1.18 million was appropriated in the FY 2023-24 Budget for payment of the unfunded accrued pension obligation. These funds were carried forward into the FY 2024-25 Budget and are available to provide preliminary funding of the 115 Trust.

Council Options:
 Adopt Resolution No. 25-86 which will establish 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.
 Modify and Adopt Resolution No. 25-86.
 Continue the item with direction given to staff.
 Decline to Adopt Section 115 Pension Investment Policy.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Adopt Resolution No. 25-86, which would:

1. Authorize the City Treasurer to execute the agreement 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); and

2. Approve the IAC recommendation to select the Capital Appreciation portfolio within the Tactical Management investment strategy; and

3. Authorize the preliminarily funding of the 115 Trust in the amount of $1.18 million from General Fund account number 001-203-48630; and
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Meeting Date: June 17, 2025 Agenda Item: 10D.

CITY OF SAN CLEMENTE

4. Authorize and direct staff to take such other and further actions and execute such other and further documents as may be necessary to accomplish the purposes of this resolution. ..end
Attachment:

1. Resolution No. 25-86

2. PARS Trust Agreement dated Nov 5, 2014

3. Draft Agreement for Administrative Services

4. Sample Adoption Agreement

5. Sample Trustee Investment Management Fee Schedule

6. Sample Authorized Signers Form

7. Sample Investment Strategy Selection and Disclosure Form Notification:

None.
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PUBLIC AGENCIES

POST-EMPLOYMENT BENEFITS

TRUST AGREEMENT
(Effective November 5, 2014)
Attachment 4
274

ARTICLE I

DEFINITIONS

1.1 "Adoption Agreement" shall have the meaning given to such term in Section 2.3.

1.2 "Agency Account" shall have the meaning given to such term in Section 2.4.

1.3 "Agreement for Administrative Services" shall mean the agreement executed between the Employer and the Trust Administrator which authorizes the Trust Administrator to perfonn specific duties of administering the Agency Account of the Employer.

1.4 "Assets" shall have the meaning given to such term in Section 2.5.

1.5 "Code" shall mean the Internal Revenue Code of 1986 as amended from time to time.

1.6 "Delegatee" shall mean an individual or entity, appointed by the Plan Administrator or Employer to act in such matters as are specified in the appointment.

1. 7 "Effective Date" shall mean the date first written above, the date the Trust was established, and with respect to each Employer, the Effective Date shall be the date on which the Employer executes the Adoption Agreement.

1.8 "Eligible Beneficiary" shall mean any person who, due to his or her relationship to an Eligible Employee, is entitled to post-employment benefits pursuant to the Employer's Pension Plan or OPEB Plan, including but not limited to the Eligible Employee's current or former spouse or domestic partner, child, dependent, or survivor.

1.9 "Eligible Employee" shall mean any employee of an Employer who is entitled to post-employment benefits pursuant to the Employer's Pension Plan or OPEB Plan. Unless the context otherwise requires, the term "Eligible Employee" as used herein shall include any Eligible Beneficiaries.

1.10 "Employer" shall mean a public agency that executes the Adoption Agreement, thereby adopting the provisions of this Trust Agreement, provided that such agency is a state, a political subdivision of a state, or an entity the income of which is excludible from gross income under Section 115 of the Code.

1.11 "GASB" shall mean the Governmental Accounting Standards Board.

1.12 "Omnibus Account" shall mean an account, established for record keeping purposes only, to aggregate the balances of the Assets credited to the Agency Accounts. The Trust Administrator shall maintain and reconcile, at the Agency Account level ( and subaccount level), the investments of the Agency Accounts