Agenda packet — San Clemente City Council, December 9, 2025 (part 1 of 3)

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
4:30 p.m. - Closed Session
5:30 p.m. - Business Meeting

CITY OF SAN CLEMENTE
Tuesday, December 9, 2025
City Council
Adjourned Regular Meeting Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

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.

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.

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1 City Council Adjourned Regular Meeting Agenda December 9, 2025 CLOSED SESSION (4:30 P.M.)
A. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION (Agendized by Councilmember Wu, second by Mayor Knoblock, at the November 18, 2025 City Council meeting.)
Whether to initiate litigation pursuant to Government Code section 54956.9(d)(4) Number of Cases: 1
BUSINESS MEETING (5:30 P.M.)

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

PLEDGE OF ALLEGIANCE

ROLL CALL

ELECTION OF MAYOR AND MAYOR PRO TEMPORE
The City Clerk will conduct the election for Mayor. The Mayor will then conduct the election for Mayor Pro Tempore.

1. Special Presentations
A. CONSIDERATION OF RESOLUTION NO. 25-190, APPROVING LANA J.

DOYLE AS THE 2025 WALL OF RECOGNITION HONOREE AND INDUCTING HER INTO THE CITY’S WALL OF RECOGNITION
Staff Recommendation
Adopt Resolution No. 25-190, which will:

1. Approve the selection for the 2025 Wall of Recognition recipient, Lana J.

Doyle.

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

2. Council Member Reports

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2 City Council Adjourned Regular Meeting Agenda December 9, 2025

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

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

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

6. Closed Session Report - City Attorney

7. Staff Communications

8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.
8A. PUBLIC HEARING TO CONSIDER THE CITY OF SAN CLEMENTE’S ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025

CONCERNING MITIGATION FEES
Public Hearing to consider the City of San Clemente’s Annual Report for fiscal year ended June 30, 2025 concerning Mitigation Fees.

Staff Recommendation
Adopt Resolution No. 25-191 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING, RECEIVING AND FILING THE CITY OF SAN CLEMENTE’S ANNUAL REPORTS
CONCERNING THE MITIGATION FEE ACT.

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3 City Council Adjourned Regular Meeting Agenda December 9, 2025

9. Unfinished Business
None.

10. New Business
10A. UPDATE TO CITY COUNCIL APPOINTEES TO REGIONAL COMMITTEES,

COMMISSIONS AND BOARDS AND CITY COUNCIL SUBCOMMITTEES
Staff Recommendation

1. Update Councilmember appointments to various regional committees, commissions and boards.

2. Update City Council appointed representatives to City Commissions and Committees.
10B. CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO

THE FORMAL BIDDING PROCESS IN ACCORDANCE WITH SECTION XII OF

THE CITY PURCHASING POLICY, AUTHORIZING THE CITY MANAGER TO

NEGOTIATE, FINALIZE AND EXECUTE AN EMERGENCY AGREEMENT TO

REIMBURSE ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) TO REPAIR AND REPLACE A PORTION OF THE CITY’S BEACH TRUNK

SEWER LINE, AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $1.6 MILLION FROM THE SEWER FUND DEPRECIATION AND

OTHER AGENCY DEPRECIATION RESERVES AND FINDING THE PROJECT

CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-205, which will:

1. Determine the actions to be categorically exempt from the California Environmental Quality Act (CEQA) under Article 18 of the state CEQA Section 15269 (Section 15269 (b) Emergency Repairs).

2. Approve a Supplemental Appropriation in the amount of $1.6 million, to include $1 million from the Sewer Fund Depreciation Reserve and $0.6 million from the Sewer Fund Other Agency Depreciation Reserve, to Account No. 054-476-43420-000-26213.

3. Approve and exemption to the formal bid process in accordance with Section XI.A.1.1.1 of the City's Procurement Policy and Procedure No. 201-2-1 (Purchasing Policies and Procedures) for a bona fide emergency as defined in the San Clemente Municipal Code Section 3.40.070 and Article (XII) within the Purchasing Policy.

4. Authorize the City Manager to negotiate, finalize and execute an emergency

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4 City Council Adjourned Regular Meeting Agenda December 9, 2025 agreement to reimburse the Orange County Transportation Authority (OCTA) for Condon Johnson to repair and replace a portion of the City’s Beach Trunk Line and report the final agreement back to the City Council.

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

A. City Council Minutes
Staff Recommendation:
(1) APPROVE THE CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF NOVEMBER 18, 2025.

B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
(1) ARTS AND CULTURE COMMITTEE REGULAR MEETING MINUTES OF MARCH 24, 2025.
(2) GOLF COURSE COMMITTEE REGULAR MEETING MINUTES OF
NOVEMBER 6, 2025.
(3) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES
OF NOVEMBER 12, 2025.
(4) PLANNING COMMISSION SPECIAL MEETING MINUTES OF
NOVEMBER 13, 2025.
(5) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF
NOVEMBER 20, 2025.

C. Warrant Register
(1) APPROVE WIRE TRANSFER NOS.
3339 THROUGH 3344 AND WARRANT NOS.
608288 THROUGH 608423, PAID ON
11-14-25, IN THE AMOUNT OF $1,648,343.80
(2) APPROVE WARRANT NOS.
608424 THROUGH 608603, PAID ON
11-21-25, IN THE AMOUNT OF $1,541,338.82
TOTAL WARRANT REGISTER $3,189,682.62

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5 City Council Adjourned Regular Meeting Agenda December 9, 2025 Payroll Register

APPROVE AUTOMATIC DEPOSIT
ADVISES 107656 THROUGH 107989,
FOR THE PERIOD 10-27-25 THROUGH
11-9-25, PAID ON 11-14-25,
IN THE AMOUNT OF $553,423.73
TOTAL PAYROLL REGISTER $553,423.73
11D. ORDINANCE NO. 1798 (SECOND READING) TO APPROVE PUBLIC HEARING PROJECT (PHP) 25-395, ZONING AMENDMENT (ZA) 25-396,

EMERGENCY SHELTER OVERLAY DISTRICT UPDATES AND FINDING THE

ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Ordinance No. 1798 entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING PUBLIC HEARING PROJECT 25-395, ZONING AMENDMENT 25-396 TO TITLE 17 (ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE, AMENDING
SECTION 17.56.100, EMERGENCY SHELTER OVERLAY DISTRICT, TO

UPDATE THE DEVELOPMENT STANDARDS AND OPERATIONAL AND

MANAGEMENT STANDARDS WITHIN THE EMERGENCY SHELTER
OVERLAY CONSISTENT WITH PROGRAM 15 OF THE SAN CLEMENTE
CERTIFIED HOUSING ELEMENT AND STATE LAW; AND FINDING THIS

ACTION IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION 21083.3 AND CEQA GUIDELINES SECTION 15183.
11E. CONSIDERATION OF RESOLUTION NO. 25-192, AMENDING POLICY NO. 103-2-1 REGARDING THE WALL OF RECOGNITION
Staff Recommendation
Adopt Resolution No. 25-192 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING WALL OF RECOGNITION POLICY NO. 103-2-1 TO UPDATE NOMINATION
REQUIREMENTS AND CLARIFY APPLICATION REVIEW PROCEDURES. 11F. ANNUAL ADOPTION OF CITY INVESTMENT POLICY
Staff Recommendation
Adopt updated Investment Policy Number 202-1, effective January 1, 2026.

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6 City Council Adjourned Regular Meeting Agenda December 9, 2025 11G. CONSIDERATION OF A RESOLUTION TO APPROVE UPDATED POLICY AND PROCEDURE NUMBER 203-2 FOR ENVIRONMENTAL

SUSTAINABILITY GRANT FUNDING
Staff Recommendation
Adopt Resolution No. 25-193 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, UPDATING POLICY AND PROCEDURE 203-2 REGARDING ENVIRONMENTAL SUSTAINABILITY
GRANT FUNDING.
11H. CONSIDERATION OF A RESOLUTION APPROVING THE JOINT REGIONAL

WATER SUPPLY SYSTEM (JRWSS) CROWN VALLEY PARKWAY

TRANSMISSION MAIN RELOCATION PROJECT QUITCLAIM DEEDS FOR

PORTIONS OF WATER TRANSMISSION PIPELINE EASEMENT CONVEYED IN INSTRUMENT NO. OR5746-657
Staff Recommendation
Adopt Resolution No. 25-194, which will approve, and authorize the City Manager to execute, Deed No. D-544, the Quitclaim Deeds of real property provided in Attachment 3 of the Administrative Report, dated December 9, 2025 and on file with the City Clerk, that remise, release, and quitclaim any and all District right, title, and interest to the legal owners of those portions of real property identified in Instrument No. OR5746-657 as recorded in Book 5746, Page 657, of the official records, in the Office of the County Recorder of said Orange County.
11I. CONTRACT AWARD - ENGINEERING CONSTRUCTION SUPPORT

SERVICES DURING CONSTRUCTION FOR THE CALLE REAL PUMP

STATION REHABILITATION
Staff Recommendation
Adopt Resolution No. 25-195, which will:

1. Award a Professional Consultant Services Agreement to AKM Consulting Engineers, for the Engineering Construction Support Services for the Calle Real Pump Station Rehabilitation, CIP Project No. 19516.

2. Approve, and authorize the City Manager to execute. Contract No. C25- 62, by and between the City of San Clemente and AKM Consulting Engineers, providing for the Calle Real Pump Station Rehabilitation Engineering Construction Support Services, in an amount not to exceed $143,960, in a form substantially similar to Contract No. C25-62 (Attachment 3).

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7 City Council Adjourned Regular Meeting Agenda December 9, 2025 11J. CONTRACT AWARD - CAMINO VERA CRUZ RECYCLED WATER LINE

EXTENSION
Staff Recommendation
Adopt Resolution No. 25-196, which will:

1. Award a Professional Services Agreement to Dudek for Construction Management and Inspection Services for the Camino Vera Cruz Recycled Water Line Extension.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 63, by and between the City of San Clemente and Dudek, providing for Construction Management and Inspection Services for the Camino Vera Cruz Recycled Water Line Extension, in an amount not to exceed $96,400.
11K. CONTRACT AWARD - PICO / PRESIDIO DIP REPLACEMENT PHASE II,

AND APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $872,000 FROM THE WATER FUND DEPRECIATION RESERVE
Staff Recommendation
Adopt Resolution No. 25-197, which will:

1. Approve a supplemental appropriation, in an amount of $872,000, from the Water Depreciation Reserve into project Account Number 052-466- 45300-000-13411.

2. Award a construction contract to Big Ben, Inc., as the lowest responsible bidder, for the Pico/Presidio DIP Replacement Phase II.

3. Approve, and authorize the City Manager to execute, Contract No. C25- 64, by and between the City of San Clemente and Big Ben, Inc., providing for the Pico/Presidio DIP Replacement Phase II, in an amount not to exceed $1,297,284, in a form substantially similar to Contract No. C25-64 (Attachment 2).
11L. CONTRACT AWARD - ENTERPRISE RESOURCE PLANNING SOFTWARE

IMPLEMENTATION AND ONGOING SUBSCRIPTION SERVICES
Staff Recommendation
Adopt Resolution No. 25-198, which will:

1. Award a Software as a Service Agreement to Tyler Technologies, Inc. for the implementation, training, and ongoing subscription and support of the Tyler Enterprise Resource Planning system.

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8 City Council Adjourned Regular Meeting Agenda December 9, 2025

2. Approve, and authorize the City Manager to execute, Contract No. C25-65, by and between the City of San Clemente and Tyler Technologies, Inc., providing for Software as a Service Agreement, in an amount not to exceed $1,849,375 over an initial five-year term, in a form substantially similar to that presented to the City Council on December 9, 2025, with two additional one-year extensions exercisable in the City Manager’s discretion with a maximum annual increase of 3%.
11M. CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO THE CITY’S PURCHASING POLICY, AWARDING AN AGREEMENT TO THE

REGENTS OF THE UNIVERSITY OF CALIFORNIA FOR ANALYSIS OF THE CITY’S BEACH TRUNK LINE, AUTHORIZING A SUPPLEMENTAL
APPROPRIATION IN THE AMOUNT OF $70,000 FROM THE SEWER FUND

DEPRECIATION RESERVE AND FINDING THE ACTIONS CATEGORICALLY

EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-199, which will:

1. Determine the actions to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines Section 15306 (14 CCR Section 15306, Information Collection).

2. Approve a supplemental appropriation in the amount of $70,000 from the Sewer Fund Depreciation Reserve to Account Number 054-473-43690- 000-00000.

3. Approve an exemption to the City’s Purchasing Policies and Procedures pursuant to Section XI.A.1.1.5 of Procurement Policy and Procedure No. 201-2-1 for an agreement with a public or quasi-public entity.

4. Approve, and authorize the City Manager to execute, Contract No. C25- 66, by and between the City of San Clemente and Regents of the University of California, providing for the Analysis of the City’s Beach Trunk Line, in an amount not to exceed $70,000.

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9 City Council Adjourned Regular Meeting Agenda December 9, 2025 11N. CONSIDERATION OF A RESOLUTION AUTHORIZING A SUPPLEMENTAL

APPROPRIATION FOR THE INSTALLATION OF A NEW ELECTRICAL

PANEL TO SUPPORT CITY HALL EMERGENCY DOOR RELEASE SYSTEM

AND MAGNETIC LOCKING SYSTEM AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-200, which will:

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

2. Approve a supplemental appropriation of $30,000 from Public Facilities Construction Fee Fund Account No. 030-818-43890-000-00000 for the installation of a new electrical panel at City Hall necessary to support expanded FOB access and automatic fire-alarm door release functionality. 11O. CONTRACT AMENDMENT - SENIOR MOBILITY PROGRAM

TRANSPORTATION SERVICES AND APPROVING SUPPLEMENTAL
APPROPRIATIONS TOTALING $131,000 FOR THE SENIOR MOBILITY

PROGRAM, AND FINDING THE ACTIONS STATUTORILY EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Staff Recommendation
Adopt Resolution No. 25-201, which will:

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

2. Approve supplemental appropriations in the amount of $104,800 from the Senior Mobility Fund (015) to Account No. 015-806-44723-000-00000 and $26,200 from the General Fund (001) to Account No. 001-203-47012-000- 00000.

3. Approve, and authorize the City Manager to execute, Amendment No. 1 to Contract No. C24-46, by and between the City of San Clemente and OCY Management, LLC., providing for Senior Mobility Program transportation services, modifying the yearly not to exceed contract amount from $100,000 to a total amount of $355,000 over the entire contract term, and terminating the contract on February 28, 2026.

4. Direct City staff to initiate a new Request for Proposal for Senior Mobility Services for implementation of a new contract starting March 1, 2026.

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10 City Council Adjourned Regular Meeting Agenda December 9, 2025 11P. CONTRACT AMENDMENT - PARKING LOT LOCATED AT 103 AND 107

AVENIDA GRANADA
Staff Recommendation
Adopt Resolution No 25-202, which will:

1. Approve the Amendment to the Parking Lot Sublease Agreement between the City of San Clemente and the Frank H.C. Nam Bypass Trust, implementing the Sublessor’s requested lease rate adjustment effective January 1, 2026, and authorizing future annual lease rate increases of three percent (3%).

2. Approve, and authorize the City Manager to execute, Amendment No 1. to Contract No. C09-16, by and between the City of San Clemente and Frank H.C. Nam Bypass Trust, for lease rate adjustment effective January 1, 2026, and authorizing future annual lease rate increases of three percent (3%) for the Parking Lot Sublease.
11Q. CONSIDERATION OF A RESOLUTION ADOPTING FISCAL YEAR 2024-2025 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE Staff Recommendation
Adopt Resolution No. 25-203 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADOPTING THE FISCAL YEAR 2024-2025 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE.
11R. CONSIDERATION OF A RESOLUTION RECEIVING AND APPROVING THE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL)

LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY ACT
REPORT (SB 165) FOR FISCAL YEAR ENDED JUNE 30, 2025
Staff Recommendation
Adopt Resolution No. 25-204 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING AND

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

ACCOUNTABILITY ACT COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2025.

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11 City Council Adjourned Regular Meeting Agenda December 9, 2025

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

13. Future Agenda Items

14. Reports
A. City Attorney
B. City Manager

15. Adjournment
The next Regular City Council Meeting is scheduled to take place on January 20, 2026.

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

Please note the meeting of January 6, 2026 was previously cancelled.

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12 City Council Adjourned Regular Meeting Agenda December 9, 2025

CITY COUNCIL MEETING PROCEDURES

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.

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. Electronic presentations shall be limited to visual media, without prerecorded audio narration, that augment a live verbal presentation addressed to the City Council. The display of visual media shall be ancillary to, and not presented in place of, live verbal narration. Members of the public shall not be permitted to connect equipment to the City's computer system. Members of the public shall not be permitted to access the internet from the City's computer equipment. Visual presentations must be provided to the City Clerk in a display-ready format. In no case shall Staff be required to develop a presentation for public use.

This prohibition includes, but is not limited to, compiling of City records, downloading data from websites, or gathering or modifying data provided by the public.

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.

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13 City Council Adjourned Regular Meeting Agenda December 9, 2025

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.

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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: December 9, 2025 Agenda Item: A.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e
CONSIDERATION OF RESOLUTION NO. 25-190, APPROVING LANA J. DOYLE AS THE 2025 WALL OF RECOGNITION HONOREE AND INDUCTING HER INTO THE CITY’S WALL

OF RECOGNITION
..body
Fiscal Impact:

None. Costs associated with the Wall of Recognition plaque and certificate are included in the Department’s operating budget in the amount of $200.

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.

Honorees are nominated by residents or community-based organizations and selected by the Wall of Recognition Committee, composed of a City Council representative, a Beaches, Parks & Recreation (BPR) Commissioner, and past honorees.

For 2025, the Committee recommends selecting longtime resident and volunteer Lana J. Doyle.

Ms. Doyle is an 18-year San Clemente resident and was nominated by the San Clemente Garden Club, where she is a Life Member of the California Garden Clubs, Inc. (C.G.C.I.), with her name inscribed on the Life Membership Roll. Her extensive volunteer contributions include service with the Armed Services YMCA, Casa Romantica Cultural Center and Gardens, Cabrillo Playhouse, and the Dorothy Visser Senior Center. Collectively, her sustained commitment reflects the intent and purpose of the Wall of Recognition program.

Staff and the Wall of Recognition Committee recommend that the City Council approve and honor the selection of Lana Doyle for the 2025 Wall of Recognition honoree.

Background:

In 1994, the City Council approved the creation of the Wall of Recognition (Policy No. 103-2-1), 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. The “Wall of Recognition” is located in the lobby at the Community Center and includes a plaque and description of services, recognizing each recipient.

Nominations are accepted annually from residents and community-based organizations during a designated nomination period. The Wall of Recognition Committee reviews all eligible applications and forwards a recommendation to the City Council for final approval. 15 Meeting Date: December 9, 2025 Agenda Item: A.

CITY OF SAN CLEMENTE 2
For 2025, the Committee reviewed the nomination submitted by the San Clemente Garden Club in support of Ms. Doyle, citing her decades of community involvement and leadership across multiple nonprofit and cultural organizations.

Council Options:
 Adopt Resolution 25-190, which will approve the selection of the 2025 Wall of Recognition recipient, Lana J. Doyle; and authorize the mayor to present the honoree with a certificate of recognition.
 Modify and adopt Resolution 25-190.
 Continue the item with directions to the staff for additional information.

Environmental Review/Analysis:

This activity is not subject to the 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. 25-190, which will:

1. Approve the selection for the 2025 Wall of Recognition recipient, Lana J. Doyle; and

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

1. Resolution No. 25-190

2. Wall of Recognition Nomination Form, Lana J. Doyle

3. Wall of Recognition Recipients
Notification:

Wall of Recognition Committee
San Clemente Garden Club
16 Attachment 1
RESOLUTION NO. 25-190

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING THE
SELECTION OF LANA J. DOYLE AS THE 2025 WALL OF

RECOGNITION HONOREE AND DIRECTING HER
INDUCTION INTO THE CITY’S WALL OF RECOGNITION
WHEREAS, in 1994, the City Council adopted Policy No. 103-2-1 establishing the City of San Clemente Wall of Recognition to honor individuals whose significant contributions and selfless efforts have improved the quality of life for residents and visitors of the City of San Clemente; and
WHEREAS, the Wall of Recognition serves to publicly acknowledge individuals nominated by residents and community-based organizations for exemplary service, leadership, and dedication to the San Clemente community; and WHEREAS, the Wall of Recognition Committee has reconsidered and completed its review of submitted nominations for the 2025 Wall of Recognition honoree; and WHEREAS, the San Clemente Garden Club submitted a nomination for Lana J.

Doyle, an 18-year resident and Life Member of the California Garden Clubs, Inc. (C.G.C.I.), whose name is inscribed on the C.G.C.I. Life Membership Roll; and WHEREAS, Ms. Doyle has contributed to the San Clemente community through longstanding volunteer service with the Armed Services YMCA, Casa Romantica Cultural Center and Gardens, Cabrillo Playhouse, the Dorothy Visser Senior Center, and the San Clemente Garden Club; and
WHEREAS, the Wall of Recognition Committee recommends that Lana J. Doyle be selected as the 2025 Wall of Recognition Honoree based on her sustained and meaningful service to San Clemente.

NOW, THEREFORE, The City Council of the City of San Clemente does hereby finds, determines and resolves as follows:

SECTION 1. The City Council hereby finds and determines that all of the foregoing recitals are true and correct and are hereby incorporated into this Resolution as findings of the City Council.

SECTION 2. The City Council hereby approves the selection of Lana J. Doyle as the 2025 Wall of Recognition Honoree.

SECTION 3. The Mayor is authorized to present a certificate of recognition to the honoree and to participate in her formal induction into the Wall of Recognition located at the San Clemente Community Center.

SECTION 4. The City Clerk shall certify to the passage and adoption of this 17 Resolution No. 25-190 Page 2
resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
18 Resolution No. 25-190 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. 25-190 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:

Certification of Appreciation from Camp Pendleton Armed Services: 2011,2012, 2016,2017,2018,2019,2020.

Volunteer of the year ASYMCA (Armed Services YMCA) 2011 and 2012.

Volunteer of the month Camp Pendleton 2008.

Casa Romantica Cultural Center and Gardens:

Outstanding service to Casa Romantica 2018 (Volunteer Advisory Council); Recognition Award of Service 2015; Recognized for Most Volunteer Hours to Casa Romantica.

California Garden Clubs.Inc. awarded Lifetime Membership by the SC Garden Club 2017 for service to the club. I have worked on our scholarship committee, planned field trips, hospitality and plant sales. Joined SC Garden Club in 2014.

Honoree of the 2020 Spirit of Volunteerism award by OneOC District Attorney Orange County.

Volunteer at the Cabrillo Theater for approximately 15 years.

Volunteer at the Dorothy Visser Senior Center for 2+ years. ��11 "!l�h»v J t,A;v �d/>--CL'l,;fttm�
Ha� I tJt'J i[/\_ Sa_v-._ (!__(r2Mev{fe / 'it 1e?{r[;,
Is I'\ oM'rr\ ct+e� � s II o { Le/I\ fegr D+�-j eel, �� - W ud l &-r i-e COC(j'/1 / ft O I'\ I "- So: {I\_ <!_, { e M e ft'(� ,}_!) ;;;_ :J', �cit�
Attachment 2
20 21
California Gar(\en Clubs, Inc.
"Growing Minds, Planting Seeds"
June 21, 2017
Ms. Lana Doyle
San Clemente, California
92672-3202
Dear Ms. Doyle,
ltgives me great pleasure on behalf of California Garden Clubs, Inc. to welcome you into the select group known as "C.G.C.I. Life Members''. Your name will be inscribed upon the Life Membership Roll, along with others who have shown their stmng belief in the objectives of our organization. Your Life Member certificate and pin are enclosed.

As you may know, the Life Membership fee goes into our CGCI Scholarship Fund, which in turn allows some worthy students the great opportunity of furthering their education at colleges or universities of their choice, in fields of horticulture, conservation, landscape architecture and related fields.

Your Life Membership is a gift to you from the San Clemente Garden Club. We hope .• you will enjoy this affiliation for many years to come.

Sincerely,
d/l & �- 1o,· , /'.r-.. PJ, •-fl-:_('. .f . , , t:!tt-t/ tJ-(/u'---tt, 1/&,?1 - '.t;�,e Carlotta Wixon-Welker, Life Member Chair
i 4216 Karry's Place
Grass Valley, Ca.
95945-7934
_-.·
22 Attachment 3
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 Hansen & Don Hansen
2010 Bertha Henry Taylor
2011 Joe Anderson & 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 Lana Doyle (Recommended 12/9/25)
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: December 9, 2025 Agenda Item: 8A.

Department: Finance & Administrative Services
Prepared By Brian Brower, Assistant City Manager
Matthew Schmelzel, Senior Management Analyst
Subject:

PUBLIC HEARING TO CONSIDER THE CITY OF SAN CLEMENTE’S ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025 CONCERNING MITIGATION FEES Fiscal Impact:

None.

Summary/Background:

Government Code Sections 66001 and 66006 require local agencies that require the payment of development fees to submit annual notices detailing the status of those fees. For the City of San Clemente those fees include:
a. Regional Circulation Financing and Phasing Program (RCFPP) b. Public Safety Construction Fee
c. Civic Center Construction Fund Fee
d. Drainage Facilities Fee – Other (City Infill Development Areas) e. Drainage Facilities Fee – Segunda Deschecha
f. Drainage Facilities Fee – Marblehead
g. Drainage Facilities Fee – Prima Deschecha Canada
h. Water Acreage Fee
i. Sewer Connection Fee
Attached to this report please find the Annual Report concerning the Mitigation Fee Act for the City of San Clemente for fiscal year ended June 30, 2025 and relevant exhibits. The Annual Report has been made available to the public at least fifteen (15) days prior to the City Council meeting. The City Council is asked to approve, receive and file this report.

Council Options:
 Adopt Resolution No. 25-191, which approves, receives and files the Annual Report concerning the Mitigation Fee Act for fiscal ended June 30, 2025.  Modify and adopt Resolution No. 25-191.
 Continue the Item and direct staff to provide additional information.

Environmental Review/Analysis:

This is not a “project” under the California Environmental Quality Act. 24 Meeting Date: December 9, 2025 Agenda Item: 8A.

CITY OF SAN CLEMENTE 2
Recommended Actions:

Staff Recommendation
City Council adopt Resolution No. 25-191 which would:

1. Approve, receive and file the Annual Report concerning the Mitigation Fee Act for fiscal year ended June 30, 2025.
..

Attachment:

1. Resolution No. 25-191

2. Exhibit A to Resolution 25-191 - Annual Report – Mitigation Fee Act Current, as well has historical, reports and exhibits are available on the City’s website at https://www.san-clemente.org/departments-services/finance-administrativeservices/mitigation-fees. The report is also available for public inspection at the City Clerk’s Office during normal business hours.

Notification:

1. Building Industry Association and in accordance with Government Code section 66006(b)(2).

2. Published in the San Clemente Times on November 20, 2025 and December 4, 2025. 25 Attachment 1
RESOLUTION NO. 25-191

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING, RECEIVING
AND FILING THE CITY OF SAN CLEMENTE’S ANNUAL

REPORTS CONCERNING THE MITIGATION FEE ACT
WHEREAS, Government Code Sections 66001 and 66006 require local agencies that require the payment of development fees to submit annual and five-year notices detailing the status of those fees; and
WHEREAS, an annual report concerning the Mitigation Fee Act for the fiscal year ended June 30, 2025 has been prepared and posted in accordance with State law and is attached to this resolution as Exhibit A; and
WHEREAS, the annual report has been made available to the public at least fifteen (15) days prior to the City Council meeting; and
WHEREAS, on December 9, 2025, in accordance with State law, the City Council held a duly noticed public hearing concerning the City of San Clemente’s Mitigation Fee Act requirement for the annual report ending June 30, 2025; and WHEREAS, the annual report has been filed with the governing body.

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

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

SECTION 2. That the annual report is hereby approved, received and filed as presented to the City Council on December 9, 2025.

SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
26 Resolution No. 25-191 Page 2

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. 25-191 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
27 Annual Report
Mitigation Fee Act
Pursuant to Government Code 66006
City of San Clemente
Fiscal Year 2024-25
Government Code Section 66006 provides that a local agency that requires the payment of development fees shall prepare an annual report detailing the status of those fees. The annual report must be made available to the public within 180 days of the end of the fiscal year. The City Council must review the report at the next regularly scheduled public meeting of the City Council that falls at least fifteen (15) days after the information is made available to the public. Government Code Section 66013 has similar requirements for capacity charges.

Pursuant to Government Code Section 66006(b)(1) or section 66013(d), as applicable, the following information must be made available to the public:

1. Provide a brief description of the type of fee in the account or fund. a. Regional Circulation Financing and Phasing Program (RCFPP): The fees are used to mitigate the traffic impacts caused by new development in the Benefit Zones. The fees will cause development in the Benefit Zones to pay their fair share of the construction costs of improvements within the Benefit Zones.
b. Public Safety Construction Fee: The fees are used to mitigate the impact of new development on public safety services.
c. Civic Center Construction Fund Fee: The fees are used to mitigate the impact of new development on the need for additional municipal office space. d. Drainage Facilities Fee – Other Areas (City Infill Development Areas): The fees are used to mitigate new development’s impact on the City’s Storm Drainage Facilities in the City Infill Development Areas.
e. Drainage Facilities Fee – Segunda Deschecha: The fees are used to mitigate new development’s impact on the City’s Storm Drainage Facilities in the Segunda Deschecha area.
f. Drainage Facilities Fee – Marblehead: The fees are used to mitigate new development’s impact on the City’s Storm Drainage Facilities in the Marblehead area. g. Drainage Facilities Fee – Prima Deschecha Canada: The fees are used to mitigate new development’s impact on the City’s Storm Drainage Facilities in the Prima Deschecha Canada area.

Exhibit A
28 h. Water Acreage Fee: The fees are used to mitigate the impact of new development on the City’s water system facilities.
i. Sewer Connection Fee: The fees are used to mitigate the impact of new development on the City’s water reclamation plant and collection system.

2. List the amount of the fee
a. Regional Circulation Financing and Phasing Program (RCFPP): Attached as Exhibit #1 b. Public Safety Construction Fee: Attached as Exhibit #2 c. Civic Center Construction Fund Fee: Attached as Exhibit #3 d. Drainage Facilities Fee – Other Area (City Infill Development Areas): Attached as Exhibit #4 e. Drainage Facilities Fee - Segunda Deschecha: Attached as Exhibit #4 f. Drainage Facilities Fee – Marblehead: Attached as Exhibit #4 g. Drainage Facilities Fee - Prima Deschecha Canada: Attached as Exhibit #4 h. Water Acreage Fee: Attached as Exhibit #5
i. Sewer Connection Fee: Attached as Exhibit #6

3. List the beginning and ending balance of the account or fund. a.

Regional Circulation Financing and Phasing (RCFPP):

Beginning balance as of 7/1/24: $ 1,268,945
Ending balance as of 6/30/25: $ 1,307,621
b. Public Safety Construction Fee:

Beginning balance as of 7/1/24: $ 1,140,004
Ending balance as of 6/30/25: $ 765,351
c. Civic Center Construction Fund Fee:

Beginning balance as of 7/1/24: $ 185,464
Ending balance as of 6/30/25: $ 0
d.

Drainage Facilities Fee – Other Area (City Infill Development Areas):

Beginning balance as of 7/1/24: $ 192,198
Ending balance as of 6/30/25: $ 135,540
e. Drainage Facilities Fee – Segunda Deschecha:

Beginning balance as of 7/1/24: $ 1,992,384
Ending balance as of 6/30/25: $ 2,004,310
29 f. Drainage Facilities Fee– Marblehead:

Beginning balance as of 7/1/24: $ 46,653
Ending balance as of 6/30/25: $ 31,266
g.

Drainage Facilities Fee –Prima Deshecha Canada:

Beginning balance as of 7/1/24: $ 0
Ending balance as of 6/30/25: $ 0
h. Water Acreage Fee:

Beginning balance as of 7/1/24: $ 2,907,366
Ending balance as of 6/30/25: $ 3,002,062
i. Sewer Connection Fee:

Beginning balance as of 7/1/24: $ 1,130,267*
Ending balance as of 6/30/25: $ 1,293,097
*Beginning fund balance adjusted to reflect true fund balance in FY 2024.

4. List the amount of the fees collected and the interest earned. a. Regional Circulation Financing and
Fees Collected Interest Earned
/Investment Income
Phasing Program (RCFPP): $ 5,211 $ 63,311
b. Public Safety Construction Fee: $ 52,996 $ 60,218
c. Civic Center Construction Fund Fee: $ (1,857) $ 0
d. Drainage Facilities Fee – Other Area (City
Infill Development Areas): $ 2,726 $ 9,034
e. Drainage Facilities Fee – Segunda Deschecha: $ 0 $ 93,653 f. Drainage Facilities Fee – Marblehead: $ 0 $ 2,193
g. Drainage Facilities Fee – Prima Deschecha Canada: $ 0 $ 0 h. Water Acreage Fee: $ 12,349 $ 145,340
i. Sewer Connection Fee: $ 0 $ 52,098

5. Provide an identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with the fees.

Attached as Exhibit #7

6. Provide an identification of an approximate date by which the construction of the public improvements will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public 30 improvement remains incomplete. For capacity charges, this section also details any public improvements anticipated to be provided in the following year. a. Regional Circulation Financing and Phasing Program (RCFPP):

The City has determined that sufficient funds have been collected to complete the design for Avenida Pico Bike and Pedestrian Path, Vera Cruz to Frontera, Phase I (project no. 17337). It is anticipated that the design will be presented to the City Council for approval in 2026. The City has not determined that sufficient funds have been collected to complete the construction.

The City has determined that sufficient funds have been collected to complete the conceptual design for Pico Widening, I-5 to Frontera, project (project no. 18325).

Conceptual design was completed mid-2025. The City is seeking grant funding for final design and construction.

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. b. Public Safety Construction Fees:

The City has determined sufficient funds have been collected to complete the second phase of the Calle Negocio remodel project to incorporate a Police Sub-Station on the 2nd Floor.

The 2nd floor improvements were completed in 2022 and the parking lot fence and entrance gates installation reached completion in FY 2025 (project no. 10546).

The City has determined sufficient funds have been collected to complete the City Hall Emergency Generator Installation project. The project is funded with Civic Center and Public Safety Construction Funds, improving power system reliability at City Hall and the Police Substation located on the 2nd floor. A construction contract was awarded in June 2024 with construction completion in April 2025 (project no. 14812).

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. c. Civic Center Construction Fund Fees:

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. d. Drainage Facilities Fee – Other Area (City Infill Development areas):

The City has determined that sufficient funds have been collected to complete the required habitat restoration mitigation phase of the MOOS05 Montalvo Canyon Outlet project (Project no. 16004). The MOOS05 Montalvo Canyon Outlet improvements were completed in late 2023 . The required habitat restoration mitigation phase of the project started in February 2025. As part of the California Coastal Commission’s permit (CDP) conditions, City is required to maintain and upkeep the restoration work for 5 years.

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. 31 e. Drainage Facilities Fee – Segunda Deshecha:

The City has determined that sufficient funds have been collected to complete the City’s Master Plan of Drainage – Segunda Deshecha project (Project no. 34003). The draft Master Plan of Drainage has been completed by a consultant in FY2018-19. The Master Plan of Drainage is currently under review, and it is anticipated that the plan will be presented to City Council for adoption in Fiscal Year 2026.

The City has determined that sufficient funds have been collected to start design of the Catch Basins and Storm Drain Improvements at Intersection of Avenida Presidio and Calle Miguel (Project No. 12003). Project is under design with anticipated completion in FY 2026. Construction funding has not been budgeted yet.

The City has determined that sufficient funds have been collected to start the design of the Catch Basins and Storm Drain Improvements at Intersection of Avenida Pico and Calle Frontera (Project No. 13018). Project is under design with anticipated completion in FY 2026.

The City has determined that the Storm Drain improvements at the intersection of Calle Bonita & Los Molinos (Project No. 14081) are unnecessary at this time. The project is cancelled and funding will be available for improvements recommended in a Master Plan project.

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. f. Drainage Facilities Fee – Marblehead:

The City has determined that sufficient funds have been collected to purchase and install equipment for the Marblehead Storm Drain & Water Quality Improvement (project No. 14080). The project has started and will be completed in FY 2026.

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. g. Drainage Facilities Fee – Prima Deshecha Canada:

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. h. Water Acreage Fee:

The City has not determined that sufficient funds have been collected to complete the Reeves Pump Station project (Project no. 17405) in the Marblehead Coastal area. Final design ofthe Pump Station is underway, and construction is expected to begin in FY 2026.

The City has not determined that sufficient funds have been collected to complete the Recycled Water Expansion – Phase II project (Project no. 17407). The project analyzed the potential to expand the existing recycled water system and updated the Recycled Water Master Plan with expected project completion in FY 2026.

The City has not determined whether or not it will participate in the Doheny Desalination study (Project no. 14459) which transitions to the design and partnership study for the Doheny Desalination Ocean study (Project no. 38401).
32 The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project. i. Sewer Connection Fee:

The City has determined thatsufficient funds have been collected to complete the Cyprus Shore Pump Station Relocation (Project no. 12210). A construction contract was awarded in May 2024, construction completion is expected in early 2026.

The City has determined that sufficient funds have been collected to complete the Recycled Water Conversion Program (Project no. 34201). The project is currently active and continues into FY 2026.

The City has determined that sufficient funds have been collected to complete the WRP Efficiency Study (Project no. 39202). The project is currently active and continues into FY 2026.

The City has not determined that sufficient funds have been collected to complete the Recycled Water Quality Improvements project (Project no. 13203). Design has been completed, once additional grant funding is allocated for the project, construction could start in FY 2027.

The City has not determined that sufficient funds have been collected to complete any improvements ultimately recommended in a Master Plan project.

7. Provide a description of each inter-fund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended and, in the case of an inter-fund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.

None.

8. Provide the amount of any refunds made from surplus fees and the amount of any allocations made pursuant to subdivision (f) of Section 66001. (Subdivision (f) of Section 66001 requires reallocation of surplus fees where the administrative costs of refunding the fees exceed the amount to be refunded.)
a. Regional Circulation Financing and Phasing Program (RCFPP):

None.
b. Public Safety Construction Fee:

None.
c. Civic Center Construction Fee:

None.
d. Drainage Facilities Fee – Other Area (City Infill Development Areas):

None.
e. Drainage Facilities Fee – Segunda Deschecha:

None.
f. Drainage Facilities Fee – Marblehead:

None
g. Drainage Facilities Fee – Prima Deschecha Canada: 33 None.
h. Water Acreage Fee:

None.
i. Sewer Connection Fee
None.
34 FISCAL YEAR 2025

CITY OF SAN CLEMENTE
RCFPP Impact Fees
Effective July 1, 2024
Exhibit #1
RCFPP (Regional Circulation Financing Phasing Program)
(San Clemente Municipal Code Section 15.60, Resolution No. 97-57) Zone I - Marblehead Inland
Single Family $7,970/DU
Multi-Family $4,649/DU
Non-Residential $4.50/SF
Zone II - Marblehead Coastal
Tract 8817 *Fees per Development Agreement *
Single Family $7,970/DU
Multi-Family $4,649/DU
Non-Residential $4.50/SF
Zone III - Rancho San Clemente
Single Family $1,340/DU
Multi-Family $782/DU
Non-Residential $1.50/SF
Zone IV - Forster Ranch
Single Family $1,105/DU
Multi-Family $645/DU
Non-Residential TBD
Zone V - Talega Valley City
Single Family $740/DU
Multi-Family $432/DU
Non-Residential $1.00/SF
Zone VI - Talega Valley County
Single Family $545/DU
Multi-Family $318/DU
Non-Residential $1.00/SF
Zone VII, VIII, IX, X
Single Family $900/DU
Multi-Family $525/DU
Non-Residential $1.50/SF
Note:

1. DU stands for Dwelling Unit.

2. SF stands for Square Foot.

3. TBD stands for To Be Determined.
35 CALENDAR YEAR 2025

CITY OF SAN CLEMENTE
Public Safety Construction Fee
Effective January 1, 2025
Exhibit #2
Public Safety Construction Fee
Each Residential Unit $1,997.09
Commercial Unit $497.69/1000 sq. ft.

Fee fluctuates annually (Jan 1st) based on the Consumer Price Index and is charged to every new residential and commercial unit.

Note:

DU stands for Dwelling Unit.
36 CALENDAR YEAR 2025

CITY OF SAN CLEMENTE
Civic Center Construction Fund Fee
Effective January 1, 2025
Exhibit #3
Civic Center Construction Fund Fee
Residential Unit $687.48
Fee fluctuates annually (Jan 1st) based on the Consumer Price Index and is charged to every new residential unit.

Note:

DU stands for Dwelling Unit.
37 FISCAL YEAR 2025

CITY OF SAN CLEMENTE
Drainage Facilities Fee
Effective July 1, 2024
Exhibit #4
Drainage Facilities Fee:
(San Clemente Municipal Code Section 15.56.010)
Other Areas $600/acre
Segunda Deshecha $3,409/acre
Prima Deshecha Canada $5,633/acre
Marblehead Coastal $1,650/acre
38 FISCAL YEAR 2025

CITY OF SAN CLEMENTE
Water Acreage Fee
Effective July 1, 2024
Exhibit #5
Water Acreage Fee
(San Clemente Municipal Code Sections 13.16.040, Resolution No. 87-78) For developments having estimated water demand with the water usage limits set forth herein, the water acreage assessment charge (water connection fee) shall be:

Estimated Water Demand not to exceed*
Existing Developed Areas:

Residential 450 gal/DU/Day* $2,388/acre or
398/DU,
whichever is
greater
Commercial 2500 gal/acre/day* $2,388/acre
Industrial 3500 gal/acre/day* $2,388/acre
Undeveloped Areas:

Residential n/a; fee per DU $3,156/DU
Commercial 2500 gal/acre/day* $10,500/acre
Industrial 3500 gal/acre/day* $10,500/acre
*All requests for commercial or industrial water service, and for multiple residential water service in the "existing developed area" shall be reviewed by the City Engineer for determination of compliance of the proposed use with the above water demand.

For developments which exceed the water demand limits listed above, the water acreage fee shall be calculated as follows:

Existing Developed Areas: (areas previously subdivided prior to Ord. 663 dated 3/5/76) Residential $0.884/gal/day
Commercial $0.955/gal/day
Industrial $0.682/gal/day
Undeveloped Areas: (areas subdivided after Ord. 663, dated 3/5/76) Residential n/a; fee per DU $3,156/DU
Commercial $4.20/gal/day
Industrial $3.00/gal/day
Note:

1. DU stands for Dwelling Unit.

2. Gal stands for Gallon.
39 FISCAL YEAR 2025

CITY OF SAN CLEMENTE
Sewer Connection Fee
Effective July 1, 2024
Exhibit #6
Sewer Connection Fee: (Acct. 001-000-32372)
(**Sewer Connection Fees were previously automatically increased by 10% at the beginning of each year per San Clemente Municipal Code Sections 13.24.220 and 13.24.250, Ord. 874.

There has been a temporary moratorium approved by City Council on December 17, 2019 via resolution 19-055.

Residence or Dwelling Unit, Including Apts.:

Fee Area "A" (areas previously subdivided prior to Ordinance 663 dated 3/5/76) $0** Fee Area "B" (areas subdivided after Ordinance 663, dated 3/5/76, and not included in the original Sewer Assessment District No. 85-1*) $0**
Commercial & Industrial
Fee Areas "A" and "B" (All areas except those included in the original Sewer Assessment District No. 85-1) $0**
Hotel, Motel, Mobile Homes, Etc.

Fee Area "A" (areas previously subdivided prior to Ordinance 663 dated 3/5/76) First Unit: $0**
Each Subsequent Unit: $0**
Fee Area "B" (areas subdivided after Ordinance 663, dated 3/5/76 and not included in the original Sewer Assessment District No. 85-1*)
First Unit: $0**
Each Subsequent Unit: $0**
*Above fees applicable to properties not included in the original Assessment District No. 85-1 (Wastewater Treatment Facilities), which was subsequently refinanced. Properties included in said District have been assessed for sewer facilities and not subject to above fees.

VERIFICATION OF SEWER ASSESSMENT to be obtained from Engineering Division prior to issuance of building permits.

Note:

DU stands for Dwelling Unit.
40 Exhibit #7
FISCAL YEAR 2025

CITY OF SAN CLEMENTE
Section 5
Public Improvement Expenditures
Project Name Project # Expenditure % Funded
with Fees
Regional Circulation Financing and Phasing Program (RCFPP) Ave Pico - Class I Bike/Ped Path Ph I 17337 $ - * 100%
Ave Pico Widening - I-5 to Frontera 18325 $ 17,565.50 100% General Fund Administrative Reimbursement $ 12,280.00 ** 100% Public Safety Construction Fee
Negocio 2nd Floor Design/Police Substation 10546 $ 231,828.25 75% City Hall Generator Installation 14812 $ 542,440.68 100% General Fund Administrative Reimbursement $ 13,598.00 ** 100% Civic Center Construction Fund Fee
City Hall Generator Installation 14812 $ 181,395.06 100% General Fund Administrative Reimbursement $ 2,212.00 ** 100% Drainage Facilities Fee – Other Areas (City Infill Development Areas) MOOS05 Montalvo Canyon Outlet 16004 $ 155,759.35 100%
General Fund Administrative Reimbursement $ 12,660.00 ** 100% Drainage Facilties Fee – Segunda Deschecha
City Master Plan of Drainage - Segunda Deschecha 34003 $ - * 100% Catch Basin and SD Improvements at Presidio & Miguel 12003 $ 57,672.50 100% Catch Basin & SD Improvement- Pico & Frontera 13018 $ 8,773.95 100% SD Improvement - Calle Bonito & Los Molinos 14081 $ - * 100% General Fund Administrative Reimbursement $ 15,280.00 ** 100% Drainage Facilities Fee – Marblehead
Marblehead Coastal SD & WD Improvements 14080 $ 12,420.00 100% General Fund administrative reimbursement $ 5,160.00 ** 100% `
Drainage Facilities Fee – Prima Deschecha Canada
General Fund Administrative Reimbursement $ - ** 100%
41 Exhibit #7
FISCAL YEAR 2025

CITY OF SAN CLEMENTE
Section 5
Public Improvement Expenditures
Project Name Project # Expenditure % Funded
with Fees
Water Acreage Fee
Reeves Pump Station 17405 $ 40,821.13 100%
Recycled Water Expansion Phase II 17407 $ 76,221.38 100% Doheny Ocean Desalination 14459 $ - * 100%
General Fund Administrative Reimbursement $ 12,200.00 ** 100% Sewer Connection Fee
Cyprus Shores PS Relocation 12210 $ 2,002,747.61 100%
Recycled Water Conversion Program 34201 $ - * 100%
WRP Efficiency Study 39202 $ 52,860.05 100%
Recycled Water Quality Improvements 13203 $ 116,300.06 100% General Fund Administrative Reimbursement $ 37,010.00 ** 100% * Projects are budgeted, but no costs incurred in the current year. ** Administrative costs is a reimbursement for overhead related to General government costs incurred such as city clerk, finance, treasury, and other general costs. 42 910 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: December 9, 2025 Agenda Item: 10A.

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

UPDATE TO CITY COUNCIL APPOINTEES TO REGIONAL COMMITTEES, COMMISSIONS AND ..body BOARDS AND CITY COUNCIL SUBCOMMITTEES
Fiscal Impact:

None.

Summary:

Each year in December, the City Council updates its appointees to regional committees, commissions and boards. The current list of appointees is attached. Staff recommends that the City Council update its regional appointments at this time.

It should be noted that the Joint Powers Agreement with the Orange County Fire Authority (OCFA) requires that the City Council's appointment to the OCFA Board of Directors be made through adoption of a resolution. Adoption of a new resolution is only needed if the City Council chooses to select a new representative for the Orange County Fire Authority board.

Additionally, each City Commission and Committee has a City Council liaison. It is recommended that the City Council make any necessary updates to its appointed representative to each Commission and Committee at this time.

Council Options:
 Select new City Council representatives for regional boards, commissions and committees.  Select new City Council representatives for City Commissions and Committees.  Take no action.

Environmental Review/Analysis:

This is not a “project” under CEQA.

Recommended Actions:

Staff Recommendation

1. Update Councilmember appointments to various regional committees, commissions and boards.

2. Update City Council appointed representatives to City Commissions and Committees. ..recommendation
43 Meeting Date: December 9, 2025 Agenda Item: 10A.

CITY OF SAN CLEMENTE 2
..endAttachment:

1. Listing of 2025 Council Appointed Representatives to Committees, Commissions and Boards.

2. 2025 City Council Appointed Representatives to City Commissions and Committees.

Notification:

Orange County Mosquito and Vector Control Board
44 Attachment 1
2025 COUNCIL APPOINTED REPRESENTATIVES

TO COMMITTEES, COMMISSIONS AND BOARDS
Committee/Commission/Board Location Meeting
Date(s)
Representative(s) Compensation
Association of California Cities –
Orange County – ACC-OC
Mayor
Capistrano Unified School District
Liaison Committee
Enmeier/ Wu (Alt.) No
Coastal Animal Services Authority
(CASA)
Animal
Shelter
San
Clemente
3 rd Monday,
5:30 p.m.

Bi-monthly
Enmeier/Loeffler (Alt.) No
Community Engagement Panel Varies Quarterly
(dates vary)
Cabral/Enmeier (Alt.) No
Conservancy (Elected/Appointed
Representative to Friends of the
Reserve Commission)
Knoblock
The City's “At Large”
position is vacant.

No
The Talega HOA
Representative is
Laurie Gooch (term
expires June 30, 2020).

The At-Large and
Talega Representative
positions will not be
filled until CM Knoblock
reports to Council with
regard to the Friends’
inactivity.

Chamber of Commerce – Economic
Development
City Hall
Conference
Room
As Set Loeffler/Knoblock (Alt).

Note: The Mayor will
continue to attend
ribbon-cutting
ceremonies.

No
Downtown Business Association –
Economic Development
As set Cabral/Wu (Alt). No
Emergency Operational Area Council
(Orange County)
Mayor and Mayor Pro
Tem
No
Fire Authority (Orange County) OCFA 4
th Thursday Cabral Yes ($100 per
Boardroom, 1 of every meeting with
Fire Authority other month maximum of $300
Road, Irvine at 6:30 p.m. per month).

Special notes: This
appointment must
be made by
resolution.

Alternates were
discontinued in
2015.

Historic Preservation Ad Hoc
Committee
TBD TBD Enmeier/Loeffler (Alt.) No
Insurance Authority (California Joint
Powers Insurance Authority)
La Palma 4
th
Wednesday,
4:30 p.m.

Knoblock/Hall Yes, $100 per
year.
45 Investment Advisory Committee Ocean View
Conf. Room
Quarterly,
6:00 p.m.

Last Monday
of the month
Cabral No
Legislative Delegate Program -
Representative to Senate District 36
Mayor and Mayor Pro
Tem
No
Legislative Delegate Program -
Representative to 74th Assembly
District
Mayor and Mayor Pro
Tem
No
Library Task Force (Orange County) Tustin Library Quarterly, 4 th
Thursday,
4:00 p.m.

Loeffler No
Mayors (South Orange County
Association of Mayors)
Rotating
Cities
2 nd
Thursday,
7:30 a.m.

Mayor No
South Orange County Beach Coalition
U.S. Marine Corps Liaison Cabral No
MWDOC Interaction of Elected
Officials
Knoblock/Wu (Alt.) No
Nine South County Water Agencies
(This is the name of a group that
consists of nine South Orange County
water agencies).

Moulton
Niguel Water
District Office
No regular
meetings,
but usually
held at noon
on
Wednesdays
(such as the
fourth
Wednesday
of the
month).

Knoblock/Wu (Alt.) No
SCAG General Assembly Annual
Meeting in
May
Knoblock/Cabral No
Social Service/Community Service
Budget Committee
Enmeier No
South Orange County Watershed
Management Area Executive
Committee
Wu/Rebensdorf (Alt.) No
Orange County Mosquito and Vector
Control Board
District
Office,
Garden
Grove
3 rd
Thursday,
3:00 p.m.

Knoblock (term expires
December 2025)
Yes ($100 per
month)
Wall of Recognition Loeffler No
46 Attachment 2
2025 CITY COUNCIL APPOINTED

REPRESENTATIVES TO CITY COMMISSIONS AND

COMMITTEES
Commission/Committee Location Meeting
Date and
Time(s)
Representative
Beaches, Parks and
Recreation Commission
Council
Chambers
2nd Tuesday of
even months;
6pm
Enmeier
Planning Commission Council
Chambers
1 st and 3rd
Wednesday,
6pm
N/A (City Attorney
is the liaison)
Arts and Culture Committee Council
Chambers
4 th Monday of
odd months;
5 pm
Wu
Community Safety and Welfare
Committee
Council
Chambers
4 th Tuesday of
even months;
3pm
Enmeier/Loeffler
Investment Advisory Committee Community
Conference
Room, First
Floor
Last Monday
of the month
following the
quarter end,
5:30pm
Cabral
Golf Course Committee
Council
Chambers
1 st Thursday,
quarterly (May,
August,
November,
February) 6pm
Cabral
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: December 9, 2025 Agenda Item: 10B.

Submitted By: Public Works
Prepared By: David Rebensdorf, Public Works Director/City Engineer Subject:
..titl e

CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO THE FORMAL

BIDDING PROCESS IN ACCORDANCE WITH SECTION XII OF THE CITY PURCHASING

POLICY, AUTHORIZING THE CITY MANAGER TO NEGOTIATE, FINALIZE AND EXECUTE

AN EMERGENCY AGREEMENT TO REIMBURSE ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) TO REPAIR AND REPLACE A PORTION OF THE CITY’S BEACH

TRUNK SEWER LINE, AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $1.6 MILLION FROM THE SEWER FUND DEPRECIATION AND OTHER

AGENCY DEPRECIATION RESERVES AND FINDING THE PROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body Fiscal Impact:

The repair work and cost of the project is under negotiation between the City, OCTA and Condon Johnson. While the cost is still under negotiation, City staff is requesting a total appropriation not to exceed $1.6 million, to include $1 million from the Sewer Fund Depreciation Reserve and $0.6 million from the Sewer Fund Other Agency Depreciation Reserve to account number 054-476- 43420-000-26213. There is available fund balance within both reserves for the proposed expenditure.

Summary:

A 70-foot long section of the City’s 21-inch wastewater collection Beach Trunk Line, located south of Mariposa Point within OCTA’s Area 3 construction zone, has failed. The failure was discovered through the completion of a pre-construction video initiated by the lead contractor for the OCTA bluff stabilization and beach trail restoration project (Condon Johnson). The video confirms extreme cracks and failures of the pipeline and immediate replacement is needed to prevent a sewer spill and to protect public health and
safety. OCTA and Condon Johnson possess the
necessary railroad permits to complete the
repair, limiting project delays to the Area 3
construction and restoration of the beach trail.

Bidding the project and hiring another contractor
to make the repair would require a railroad right
of entry permit, which is traditionally timeconsuming, and includes special insurance, employee training and authorization for a flag
person prior to beginning repair. Such delays
cannot be accommodated due to the emergency
nature of the replacement needed.
48 Meeting Date: December 9, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 2
OCTA and contractor Condon Johnson are working expeditiously to complete bluff stabilization and restore the beach trail between North Beach and Linda Lane. City staff is seeking authorization from the City Council to direct the City Manager to negotiate, finalize and execute a reimbursement agreement with OCTA to allow their contractor, Condon Johnson, to repair and replace the damaged section of the City’s Beach Trunk Line. The project scope and potential options to reduce costs are being evaluated by City staff. Once the final negotiations and emergency agreement are completed, City staff will return to the City Council with an update.

Background:

Due to slope movements in the bluff area between El Portal and Mariposa Beach Accesses in January of 2023, the City’s heavily utilized Beach Trail Pedestrian Bridge was damaged.

Fortunately, OCTA received grant funding to install a catchment wall to protect against future bluff sluffing and an at-grade trail to reestablish connectivity of the City’s Beach Trail. OCTA obtained an emergency permit from the California Coastal Commission and hired Condon Johnson to construct the project.

Part of Condon Johnson’s contract is to record video before and after construction of the City’s wastewater collection Beach Trunk Line, which is located adjacent to the catchment wall. The 21- inch pipeline was constructed in the 1920’s with clay pipe and is critical to convey untreated wastewater from Califia to North Beach. The recently completed pre-construction video showed extreme cracking in approximately 70 feet of sewer line south of Mariposa Point, within Condon Johnson’s catchment wall construction area. The pipeline is severely damaged and is in need of replacement before additional failures occur.

Due to the emergency nature of the project, City staff discussed options with OCTA to replace the pipeline while minimizing impacts to OCTA’s project. Unfortunately, if the City bids the project and hires a different contractor to complete the replacement, it will take several months for a contractor to obtain the appropriate railroad permits (including if the City were to hire Condon Johnson directly).

Due to the critical nature of replacing this failed sewer main and therefore limit delays, which could be costly and gravely impact the local community, staff determined that the most expeditious path forward would be to enter into a reimbursement agreement with OCTA to have Condon Johnson complete the repair as part of OCTA’s current project. OCTA and Condon Johnson currently have all of the necessary railroad permits to complete the repair/replacement. 49 Meeting Date: December 9, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 3
City staff are currently working with OCTA to negotiate a cost for the repair and an agreement for reimbursement of the costs.

The repair is located at the toe of a steep section of the Coastal Bluff as shown in the adjacent photo. Due to
protection of the bluff from movement during construction excavation, extensive shoring may be required to replace the pipe. Options to reduce the project costs are under discussion and evaluation. Based on what is known at this time, City staff is estimating the cost at approximately $1.6 million. Once final negotiations and all project options are explored, City staff will return to the City Council with updated project costs, but staff is requesting emergency authorization to proceed.

The California Coastal Commission was notified on December 4, 2025 of the emergency action needed to repair the City’s wastewater collection Beach Trunk Line.

Council Options:
 Adopt Resolution No. 25-205, approving an exemption to the formal bidding process in accordance with the City’s Purchasing Policies and Procedures, a supplemental appropriation in the amount of $1.6 million, to include $1 million from the Sewer Fund Depreciation Reserve and $0.6 million from the Sewer Fund Other Agency Depreciation Reserve, to account number 054-476-43420-000-26213, and authorizing the City Manager to negotiate, finalize and execute an emergency agreement to reimburse OCTA for Condon Johnson to repair and replace a portion of the City’s Beach Trunk Line, and find the project categorically exempt from CEQA.
 Modify and adopt Resolution No. 25-205.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

These actions are categorically exempt from the California Environmental Quality Act (CEQA) under Article 18 Statutory Exemptions, Section 15269 (b) for emergency repairs to publicly or privately owned service facilities necessary to maintain service essential to the public health, safety or welfare. Emergency repairs include those that require a reasonable amount of planning to address an anticipated emergency.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-205, which will:
50 Meeting Date: December 9, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 4

1. Determine the actions to be categorically exempt from the California Environmental Quality Act (CEQA) under Article 18 of the state CEQA Section 15269 (Section 15269 (b) Emergency Repairs).

3. Approve an exemption to the formal bidding process in accordance with Section XI.A.1.1.1 of the City’s Procurement Policy and Procedure No. 201-2-1 (Purchasing Policies & Procedures) for a bona fide emergency as defined in the San Clemente Municipal Code Section 3.40.070 and Article (XII) within the Purchasing Policy.

4. Authorize the City Manager to negotiate, finalize and execute an emergency agreement to reimburse OCTA for Condon Johnson to repair and replace a portion of the City’s Beach Trunk Line and report the final agreement back to the City Council. ..end
Attachment:

1. Resolution No. 25-205
Notification:

None.
51 Attachment 1
RESOLUTION NO. 25-205

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING AN
EXEMPTION TO THE CITY’S FORMAL BIDDING PROCESS
IN ACCOURDANCE WITH SECTION XI.A.1.1.1 OF THE
CITY PURCHASING POLICIES & PROCEDURES NO. 201-
1-1, AUTHORIZING THE CITY MANAGER TO NEGOTIATE,

FINALIZE AND EXECUTE AN EMERGENCY AGREEMENT

TO REIMBURSE ORANGE COUNTY TRANSPORATION

AUTHORITY (OCTA) TO REPAIR AND REPLACE A
PORTION OF THE CITY’S BEACH TRUNK SEWER LINE,

AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN
THE AMOUNT OF $1.6 MILLION FROM THE SEWER FUND

DEPRECIATION AND OTHER AGENCY DEPRECIATION

RESERVES AND FINDING THE PROJECT

CATEGORICALLY EXEMPT UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT UNDER ARTICLE 18 OF
THE STATE CEQA SECTION 15269 (SECTION 15269 (B)

EMERGENCY REPAIRS)
WHEREAS, the City owns and operates a wastewater collection system consisting of 180 miles of sewer lines and 12 pump stations; and
WHEREAS, a portion of the City’s Beach Trunk Line south of Mariposa Beach Access is damaged and in need of replacement as shown in a video taken by the OCTA’s prime contractor Condon Johnson, currently constructing improvements to Area three (catchment wall and beach trail) within OCTA’s right-of-way; and WHEREAS, approximately 70 feet of 21-inch wastewater collection Beach Trunk Line requires immediate replacement to prevent a sewer spill; and WHEREAS, OCTA and Condon Johnson possess the necessary railroad permits to complete the repair and minimize delays, which is in the best interest of the public and the City; and
WHEREAS, Section XI.A.1.1.1 of Procurement Policy and Procedure No. 201-2-1 (Purchasing Policies and Procedures) allows the City Council to authorize an exemption to the formal and informal solicitation process for a “Bona fide Emergency” as defined in the San Clemente Municipal Code Section 3.40.070 and Article (XII) within such policy; WHEREAS, the delay associated with formal bidding and hiring another contractor to perform the work is not in the best interest of public health and safety because there is an immediate and emergency need to replace the damaged sewer line to prevent a sewer spill.

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

SECTION 1. That the above recitations are true and correct and fully incorporated 52 Resolution No. 25-205 Page 2
herein as findings.

SECTION 2. That based on a review of the entire record as a whole, these actions are hereby determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Article 18 of the state CEQA Guidelines Section 15269 (Section 15269 (b) Emergency Repairs) because they consist of an unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of health and essential public services.

SECTION 3. That a supplemental appropriation in the total amount of $1.6 million to include funds from the Sewer Fund Depreciation Reserve in the amount of $1 million and Sewer Fund Other Agency Depreciation Reserve in the amount of $0.6 million to account number 054-476-43420-000-26213 is hereby approved.

SECTION 4. That the City Council authorizes an exemption to the formal and informal solicitation process pursuant to Section XI.A.1.1.1 of Procurement Policy and Procedure No. 201-2-1 for a bona fide emergency to replace a damaged sewer line to prevent a spill of untreated wastewater.

SECTION 5. That an emergency agreement for reimbursement of the costs to replace 70 feet of 21-inch sewer line is hereby awarded to OCTA in an amount not to exceed $1.6 million.

SECTION 6. That the City Manager is hereby authorized and directed to negotiate, finalize and execute said agreement in form to be presented to and ratified by the City Council at a future meeting after the agreement is finalized.

SECTION 7. That the City Manager is authorized and directed to take such actions and execute such other and further documents as may be necessary to accomplish the purposes of this resolution.

SECTION 8. 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 December, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
53 Resolution No. 25-205 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. 25-205 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of December, 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
54 910 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: December 9, 2025 Agenda Item: (1)

..ag endizedby
..end
Subject:
..titl e
APPROVE THE CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF NOVEMBER 18, 2025. ..body
..recommendation
..end
55 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Tuesday, November 18, 2025
City Council
Special and Regular Meeting Minutes
4:00 P.M. - Committee Interviews and
Appointments
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 November 18, 2025 at 4:30 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

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

ARTS AND CULTURE COMMITTEE AND COMMUNITY SAFETY AND WELFARE

COMMITTEE INTERVIEWS AND APPOINTMENTS
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.

A. ARTS AND CULTURE COMMITTEE
The City Council interviewed the following candidates:

Julia Darden-Lenz
Julie Heinze
Amanda Quintanilla
Councilmembers cast written ranking sheets to fill one vacancy on the Arts and Culture Committee, which are on file with the City Clerk.

Following submission of ranking sheets to the City Clerk, motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 4-1 (Mayor Pro Tem Enmeier voting NOE), to appoint Amanda Quintanilla to the Arts and Culture Committee for a term set to expire June 30, 2027.

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

Page 1 of 22 ends

56 City Council Special and Regular Meeting Minutes November 18, 2025 B. COMMUNITY SAFETY AND WELFARE COMMITTEE
The City Council interviewed the following candidates:

Stephen Lamb
Charles Seward
Michael Spohn
Angela Watts
It was noted that Mike Kay withdrew his application prior to being interviewed.

Councilmembers cast written ranking sheets to fill one vacancy on the Community Safety and Welfare Committee, which are on file with the City Clerk.

Following submission of ranking sheets to the City Clerk, motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to appoint Michael Spohn to the Community Safety and Welfare Committee for a term set to expire June 30, 2027.

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

CLOSED SESSION
None.

BUSINESS MEETING
The Regular Business meeting reconvened at 5:31 p.m. with all City Councilmembers present.

INVOCATION
Reverend Dave Ricketts, San Clemente Presbyterian Church, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Loeffler led the Pledge of Allegiance.

1. Special Presentations
None.

Page 2 of 22 ends

57 City Council Special and Regular Meeting Minutes November 18, 2025

2. Council Member Reports
Councilmember Wu:
· Attended the Southern California Association of Governments (SCAG) Transportation Committee meeting on November 6, 2025.
· Attended the 70th anniversary of Concordia Elementary School on November 7, 2025.
· Attended the Veteran’s Day ceremony on November 8, 2025 in honor of the 250th Anniversary of the United States Marine Corps at Park Semper Fi; organized by the San Clemente Heritage Foundation.
· Attended the San Clemente High School Education Foundation fundraiser on November 15, 2025.
· Attended the Deputy and Firefighter of the Year Award ceremony on November 18, 2025 organized by the Exchange Club.

Councilmember Loeffler:
· Attended the Taste of San Clemente on November 7, 2025 at the Casino. · Attended the Veteran’s Day ceremony on November 8, 2025 in honor of the 250th Anniversary of the United States Marine Corps at Park Semper Fi; organized by the San Clemente Heritage Foundation.
· Attended the North Beach Community Association meeting on November 10, 2025.
· Attended the Veteran’s Day celebration at the Elks Lodge on November 11, 2025.
· Attended a Shorecliffs Homeowners Association meeting on November 12, 2025.
· Attended a ribbon cutting ceremony for Maxson Consignment Jewelers on November 14, 2025.
· Attended the Sober Living Task Force meeting on November 17, 2025. · Attended the Deputy and Firefighter of the Year Award ceremony on November 18, 2025 organized by the Exchange Club.
· Recognized Orange County Sheriff’s Deputy Herrera concerning a sensitive case.

Councilmember Cabral:
· Attended the Investment Advisory Committee on November 10, 2025. · Attended the San Onofre Nuclear Generating Station (SONGS) Community Engagement Panel (CEP) meeting on November 13, 2025.
· Attended the Cal Cities Orange County Division Board meeting on November 14, 2025.
· Attended the Boy Scouts of America awards at Disneyland. · Attended the Alma Awards.
· Attended an Orange County Fire Authority Board meeting.

Page 3 of 22 ends

58 City Council Special and Regular Meeting Minutes November 18, 2025 Mayor Pro Tem Enmeier:
· Attended the 70th anniversary of Concordia Elementary School on November 7, 2025.
· Attended the Veteran’s Day ceremony on November 8, 2025 in honor of the 250th Anniversary of the United States Marine Corps at Park Semper Fi; organized by the San Clemente Heritage Foundation.
· Attended the Taste of San Clemente on November 7, 2025 at the Casino. · Announced that Erin Bro, San Clemente High School Teacher, was honored for Orange County Teacher of the Year Award.

Mayor Knoblock:
· Attended the City Selection Committee meeting on November 13, 2025. · Toured Happy Coffee Club.
· Toured the future site of Zov’s Restaurant which is currently under construction.
· Attended the Taste of San Clemente on November 7, 2025 at the Casino. · Attended the Veteran’s Day ceremony on November 8, 2025 in honor of the 250th Anniversary of the United States Marine Corps at Park Semper Fi; organized by the San Clemente Heritage Foundation.
· Attended Boys and Girls Club sponsor network event.

3. Oral Communications (Part 1)
Lois McNicoll expressed concerns related to police enforcement in the pier bowl.

Nancy McIntyre, San Clemente Homeless Collaborative, urged the City to take action on an inclement weather shelter.

Reva Buck provided an update to the City Council concerning the Broadmoor Homeowners Association enforcement of the 17 foot height limit; distributed a chart concerning out of compliance properties. A hard copy of the document is on file with the City Clerk
George Gregory urged the City Council to require e-bike riders to wear a reflective vest; opined on the City building a harbor.

Amanda Quintanilla narrated a PowerPoint presentation entitled "RSSC Participation in Fire Prevention". A hard copy of the presentation is on file with the City Clerk.

Chris Mauro, Bring Back our Beaches, spoke in support of the feasibility study; expressed concerns regarding the proposed design of the breakwater.

Paul Lefcourt, San Clemente, displayed photographs of tree trimming of a Broadmoor house and spoke on compliance with the 17 foot height limit. A hard copy of the photographs are on file with the City Clerk.

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59 City Council Special and Regular Meeting Minutes November 18, 2025 Louise Herbert, San Clemente, commented on Mayor Knoblock's letter to the editor in the San Clemente times.

Mike Kay announced that he will hold a "goat open house" for the public to meet the goats that are being used for fire mitigation on Sunday afternoons.

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

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

5. Consideration of agendizing items requiring immediate action None.

6. Closed Session Report - City Attorney
None.

7. Staff Communications
Information Technology Manager Boisseranc provided an introduction to the City's new website.

8. Public Hearings
8A. CONSIDERATION OF RESOLUTION NO. 25-175, APPROVING THE COST OF

SERVICES STUDY, ADOPTING THE COST RECOVERY FOR BEACHES,

PARKS & RECREATION SERVICES POLICY, APPROVING THE

ASSOCIATED FEE SCHEDULE, REPEALING AND REPLACING
RESOLUTION NOS. 23-25, 89-54, 95-01, 11-66, AND 16-23, AND ALL OTHER

RESOLUTIONS THAT MAY CONFLICT THEREWITH, AND FINDING THE

ACTIONS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Mayor Knoblock opened the Public Hearing.

Beaches, Parks and Recreation Director Wylie reviewed the contents of the Administrative Report and responded to City Council inquiries.

Don Ludwig, Top Gun Senior Softball Association, spoke on tournament costs.

Jean Arnold, San Clemente, requested that information for scholarships and other programs for financial assistance be placed on the City's website.

Amanda Piwcnka, San Clemente Aquatic Swim Team, spoke in support of the proposed 10% increase; cautioned that membership may decline due to cost increases.

Page 5 of 22 ends

60 City Council Special and Regular Meeting Minutes November 18, 2025 Mark Matheson, San Clemente, spoke in favor of a cap on annual increases; commented on the positive impact of San Clemente Aquatics on the community.

Anissa Bromley, San Clemente Water Polo Club, narrated a PowerPoint presentation concerning the increase of fees. A hard copy of the presentation is on file with the City Clerk.

Sabrina Pearson, San Clemente Water Polo Club, urged the City Council to recognize San Clemente Water Polo as a tier 1 partner.

Logan Powell, San Clemente Water Polo Club, spoke in support of San Clemente Water Polo as a tier 1 partner.

Carrie Pearson, San Clemente Water Polo Club, displayed a video of San Clemente Water Polo Club participants. A copy of the video is on file with the City Clerk.

Jeff Girard, San Clemente, expressed concerns regarding rate increases for seniors on a fixed income.

Zachary Gilmer, San Clemente, requested clarification on the proposed fee increases.

Jason York, San Clemente Aquatics Team, suggested that the City partner with San Clemente Aquatics to fundraise for capital improvements for the Aquatics Center.

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

MEETING RECESSED
The meeting Recessed at 6:56 p.m. and reconvened at 7:04 p.m. with all City Councilmembers present.

Mayor Pro Tem Enmeier announced that he was going to recuse himself from voting on fees as they relate to water polo due to a financial interest.

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

Page 6 of 22 ends

61 City Council Special and Regular Meeting Minutes November 18, 2025 Matrix Consulting Group.
c. Adopt Policy No. 201-15 - Cost Recovery for Beaches, Parks & Recreation Services.
d. Adopt a revised fee schedule for the Beaches, Parks & Recreation Department effective January 1, 2026; repeal and replace conflicting resolutions.
e. Direct staff to incorporate all revenue and expense impacts into future budgets.
f. Cap the annual fee increase to no more than 5% starting in 2026 with the ability of the City Council to modify in the future as necessary. g. Adjust the monthly swim pass fee to $83.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Mayor Pro Tem Enmeier recused himself from the vote concerning fees related to water polo due to a financial interest and left the dais and meeting room at 7:27.pm.

Motion by Councilmember Loeffler, second by Councilmember Cabral, CARRIED 4-0 (Mayor Pro Tem recused), to adopt the following concerning water polo:

1. Adopt Resolution No. 25-175, which will:
a. Determine that the actions are statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (14 CCR § 15273).
b. Approve the 2025 Cost of Services (User Fee) Study prepared by the Matrix Consulting Group.
c. Adopt Policy No. 201-15 - Cost Recovery for Beaches, Parks & Recreation Services.
d. Adopt a revised fee schedule for the Beaches, Parks & Recreation Department effective January 1, 2026; repeal and replace conflicting resolutions.
e. Direct staff to incorporate all revenue and expense impacts into future

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62 City Council Special and Regular Meeting Minutes November 18, 2025 budgets.
f. Cap the annual fee increase to no more than 5% starting in 2026 with the ability of the City Council to modify in the future as necessary. g. Removal of the $5 per player fee.

AYE: Cabral, Loeffler, Wu and Mayor Knoblock
NOE: None
RECUSED: Enmeier
Mayor Pro Tem Enmeier rejoined the meeting at 7:31 p.m.

Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to reconsider adoption of Resolution No. 25-175 - Fees for Beaches, Parks and Recreation with the exception of water polo, which was considered separately.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Motion by Councilmember Loeffler, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to adopt the following excluding water polo fees, which were considered separately:

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63 City Council Special and Regular Meeting Minutes November 18, 2025 g. Adjust the monthly swim pass fee to $83.
h. Removal of the $5 per player fee.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
8B. OVERVIEW OF THE MILLS ACT PROGRAM AND CONSIDERATION OF A

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

HISTORIC PROPERTY PRESERVATION AGREEMENT (HPPA) FOR A
QUALIFIED HISTORIC PROPERTY AT 121 W. ESCALONES AND FINDING

THE ACTION CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Mayor Knoblock opened the Public Hearing.

Associate Planner Carrillo narrated a PowerPoint presentation entitled "Item 8B:

Historic Property Preservation Agreement (HPPA)" and responded the City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

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

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

Adopt Resolution No. 25-176, which will:

1. Find the Historic Preservation Agreement categorically exempt from the California Environmental Quality Act (CEQA) under Class 31, Section 15378 of the CEQA Guidelines (14 CCR § 15331 - Historical Resource Restoration/Rehabilitation).

2. Approve, and authorize the City Manager to execute, Contract No. 25-58, Historic Property Preservation Agreement, for the property located at 121 West Escalones.

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

Page 9 of 22 ends

64 City Council Special and Regular Meeting Minutes November 18, 2025 8C. CONSIDERATION TO INTRODUCE, AND CONDUCT A FIRST READING OF, ORDINANCE NO. 1798 TO APPROVE PUBLIC HEARING PROJECT (PHP) 25-395, ZONING AMENDMENT (ZA) 25-396, EMERGENCY SHELTER

OVERLAY DISTRICT UPDATES AND FINDING THE ACTION EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Mayor Knoblock opened the Public Hearing.

Principal Planner Rehm narrated a PowerPoint presentation entitled "Emergency Shelter Overlay District Update" and responded to City Council inquiries.

Kathy Esfahani, San Clemente, spoke in support of the emergency shelter overlay district; urged the City to open an emergency shelter.

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

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

1. Determine that the proposed zoning code amendment is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21083.3 and Guidelines Section 15183.

2. Introduce, and conduct a first reading of, Ordinance No. 1798 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, APPROVING PUBLIC HEARING PROJECT
25-395, ZONING AMENDMENT 25-396 TO TITLE 17 (ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE, AMENDING SECTION 17.56.100,

EMERGENCY SHELTER OVERLAY DISTRICT, TO UPDATE THE

DEVELOPMENT STANDARDS AND OPERATIONAL AND

MANAGEMENT STANDARDS WITHIN THE EMERGENCY SHELTER
OVERLAY CONSISTENT WITH PROGRAM 15 OF THE SAN CLEMENTE
CERTIFIED HOUSING ELEMENT AND STATE LAW; AND FINDING

THIS ACTION IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE
SECTION 21083.3 AND CEQA GUIDELINES SECTION 15183.

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

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65 City Council Special and Regular Meeting Minutes November 18, 2025

9. Unfinished Business
9A. CONSIDERATION OF A RESOLUTION TO APPROVE THE NOVEMBER 2025

WATER RATE STUDY FINAL REPORT, APPROVE THE PUBLIC HEARING NOTICE, SET A DEADLINE OF JANUARY 15, 2026 FOR SUBMISSION OF OBJECTIONS, SCHEDULE A PUBLIC HEARING FOR FEBRUARY 3, 2026 TO

CONSIDER OBJECTIONS (EXHAUSTION OF ADMINISTRATIVE REMEDIES) AND SCHEDULE A PUBLIC HEARING FOR FEBRUARY 17, 2026 TO

CONSIDER ADOPTION OF PROPOSED UPDATES TO WATER RATES AND CHARGES UNDER PROPOSITION 218 AND CONDUCT A PROTEST

HEARING
Public Works Director/City Engineer Rebensdorf and Sanjay Gaur, Water Resources Economics, narrated a PowerPoint presentation entitled "City of San Clemente 2025 Water Rate Study" 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 Pro Tem Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-178, which will:

1. Approve the City of San Clemente November 2025 Water Rate Study Final Report.

2. Approve, and authorize staff to mail the Notice of Public Hearings to Consider Proposed Adjustments to Water Rates based on the analysis in the City of San Clemente November 2025 Water Rate Study Final Report.

3. Set a deadline of January 15, 2026 at 5:00 p.m. for the submission of timely written objections to the proposed fees and charges and exhaustion of administrative remedies.

4. Set a Public Hearing for February 3, 2026 at 5:30 p.m. for the exhaustion of administrative remedies (objection hearing) to consider all timely written objections along with the draft written responses and determine whether clarifications or further review or reduction or abandonment of the proposed water rate and charge increases are warranted.

5. Set a Public Hearing for February 17, 2026 at 5:30 p.m. to consider all written protests and hear all oral comments on the proposed water rate and service charge increases and consider approval of the proposed rates and charges.

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

Page 11 of 22 ends

66 City Council Special and Regular Meeting Minutes November 18, 2025 9B. CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER

TO NEGOTIATE, FINALIZE AND EXECUTE A LEASE AGREEMENT WITH

THE DEPARTMENT OF HOMELAND SECURITY CUSTOMS AND BORDER

PROTECTION AGENCY FOR THE INSTALLATION AND OPERATION OF A

MARITIME SURVEILLANCE SYSTEM ON CITY-OWNED LAND AT THE
RESERVOIR 5 COMMUNICATIONS SITE (APN 690-502-16 AND 690-502-12),

AND FINDING THE ACTIONS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Councilmember Cabral disclosed he lives within 1000 feet of the site and does not have a conflict of interest.

Assistant City Manager Brower narrated a PowerPoint presentation and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

The following individuals spoke in opposition of proposed Resolution No. 25-180 which will authorize the City Manager to negotiate, finalize and execute a lease agreement with the Department of Homeland Security Customs and Border Protection Agency for the installation and operation of a maritime surveillance system on City owned land at Reservoir 5:

Jean Arnold, San Clemente
Jackie Menter, San Clemente
Jack Page, San Clemente
Oskar Muniz, San Clemente
Louise Herbert, San Clemente
Ken, San Clemente
John Paculdo Koenigshofer, San Clemente
Clayton Carter
Bill Kreutinger, San Clemente
Kathy Esfahani, San Clemente
Cricket Jamét, San Clemente
Sherman Fowler
Linda Hackwith, San Clemente
Decline, Lake Forest
The following individuals spoke in support of proposed Resolution No. 25-180 which will authorize the City Manager to negotiate, finalize and execute a lease agreement with the Department of Homeland Security Customs and Border Protection Agency for the installation and operation of a maritime surveillance system on City owned land at Reservoir 5:

Amanda Quintanilla
Mike Kay
Thor Johnson
Tony Rubolino

Page 12 of 22 ends

67 City Council Special and Regular Meeting Minutes November 18, 2025 Motion by Mayor Knoblock, second by Councilmember Loeffler, CARRIED 5-0 to direct the City Manager to continue to negotiate the maritime surveillance camera lease with Department of Homeland Security Customs and Border Protection Agency and return to the City Council for consideration.

The City Council requested that during negotiations that the City clarify:
· City costs/expenses (electricity)
· Restriction of building additional structures on the leased property (item 18 of the sample lease)
· Clarification of camera capabilities
· Ability for fire surveillance
· Identify other potential camera locations along the coast · What oversight is possible to address privacy concerns · Address vessels in distress
· Cyber security concerns
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

MEETING RECESSED
The meeting recessed at 9:28 p.m. and reconvened at 9:34 p.m. with all City Councilmembers present.

10. New Business
10A. CONSIDERATION OF A RESOLUTION APPROVING A PARKING

AGREEMENT BETWEEN HAPPY COFFEE CLUB AND THE CITY OF SAN

CLEMENTE
Associate Planner Carrillo narrated a PowerPoint presentation entitled "Item 10A: Happy Coffee Club Parking Lease Agreement" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Motion by Councilmember Wu, second by Mayor Knoblock, CARRIED 5-0, to adopt Resolution No. 25-181, which will approve, and authorize the City Manager to execute, Contract No. C25-59, by and between the City of San Clemente and Happy Coffee Club, for a parking agreement, included as Exhibit A to proposed Resolution 25-181 for an initial annual license fee of $2,160 for the 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

Page 13 of 22 ends

68 City Council Special and Regular Meeting Minutes November 18, 2025 10B. DISCUSSION REGARDING FINAL NATURE BASED ADAPTATION PROJECT

FEASIBILITY STUDY AND DIRECTION ON NEXT STEPS
Coastal Administrator Meyerhoff and Chris Webb, Moffat and Nichol, narrated a PowerPoint presentation entitled "Final Nature Based Adaptation Project Feasibility Study" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Amanda Quintanilla narrated a PowerPoint presentation entitled "Final Draft:

Final Nature Based Adaptation Project Feasibility Study". A hard copy of the presentation is on file with the City Clerk.

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

1. Approve and direct staff to submit the Final Nature Based Adaptation Project Feasibility Study to the Coastal Commission as a final deliverable for California Coastal Commission Grant 21-07.

2. Direct staff to pursue funding for the next phase to study a pilot sand retention project at North Beach.

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

1. Approve and direct staff to submit the Final Nature Based Adaptation Project Feasibility Study to the Coastal Commission as a final deliverable for California Coastal Commission Grant 21-07.

The original motion by Councilmember Cabral, second by Mayor Knoblock, CARRIED 5-0, to:

1. Approve and direct staff to submit the Final Nature Based Adaptation Project Feasibility Study to the Coastal Commission as a final deliverable for California Coastal Commission Grant 21-07.

2. Direct staff to pursue funding for the next phase to study a pilot sand retention project at North Beach.

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

Page 14 of 22 ends

69 City Council Special and Regular Meeting Minutes November 18, 2025 10C. DISCUSSION AND POSSIBLE DIRECTION TO EXPLORE PARTICIPATION IN

A COALITION OF COASTAL CITIES FACING LANDSLIDE, BLUFF FAILURE

AND GENERAL EARTH MOVEMENT IN COASTAL AREAS
Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

1. Receive and file the Administrative Report dated November 18, 2025 and on file with the City Clerk.

2. Appoint the City Manager or his designee to represent the City of San Clemente.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10D. EMERGENCY SUPPORT FOR SAN CLEMENTE RESIDENTS RECEIVING

CALFRESH AND ARE IMPACTED BY THE FEDERAL GOVERNMENT

SHUTDOWN AND SUBSEQUENT FUNDING DEFICIT OF THE

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)
Anna Conti, Family Assistance Ministries, urged the City to provide assistance.

Tony Rubolino spoke in opposition to the City offering additional support to Family Assistance Ministries.

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

Substitute motion by Mayor Pro Tem Enmeier, second by Councilmember Wu, to provide $5,000 in available assistance to 501(c)3 groups to resupply their food pantries. The charity groups would need to apply or request funds from the City.

Councilmember Wu withdrew his second, and there being no other Councilmember seconding the motion DIED FOR A LACK OF SECOND.

The original motion by Mayor Knoblock, 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

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70 City Council Special and Regular Meeting Minutes November 18, 2025

11. Consent Calendar
The City Council removed items 11F and 11G from the Consent Calendar, and a member of the public requested to speak on iftem11H.

A. City Council Minutes
Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to:
(1) APPROVE THE REGULAR CITY COUNCIL MEETING MINUTES OF NOVEMBER 4, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
B. Commission/Committee Minutes
Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to receive and file the following:
(1) ARTS AND CULTURE COMMITTEE REGULAR MEETING MINUTES OF JULY 28, 2025.
(2) GOLF COURSE COMMITTEE SPECIAL AND REGULAR MEETING MINUTES OF AUGUST 7, 2025.
(3) GOLF COURSE COMMITTEE SPECIAL MEETING MINUTES OF SEPTEMBER 22, 2025.
(4) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF OCTOBER 15, 2025.
(5) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF OCTOBER 23, 2025.
(6) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF OCTOBER 29, 2025.
(7) PLANNING COMMISSION REGULAR MEETING MINUTES OF NOVEMBER 5, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
C. Warrant Register
Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to:
(1) APPROVE WIRE TRANSFER NOS.
3331 THROUGH 3338 AND WARRANT NOS.
608031 THROUGH 608164, PAID ON
10-31-25, IN THE AMOUNT OF $2,275,850.90
(2) APPROVE WARRANT NOS.
608165 THROUGH 608281, PAID ON

Page 16 of 22 ends

71 City Council Special and Regular Meeting Minutes November 18, 2025 11-7-25, IN THE AMOUNT OF $3,553,666.91
TOTAL WARRANT REGISTER $5,829,517.81
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
Payroll Register
Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to:

APPROVE WARRANT NO. 988,
AUTOMATIC DEPOSIT ADVISES 107323
THROUGH 107655, FOR THE PERIOD
10-13-25 THROUGH 10-26-25, PAID
ON 10-31-25, IN THE AMOUNT OF $562,338.26
TOTAL PAYROLL REGISTER $562,338.26
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11D. NOTICE OF COMPLETION - STORM DRAIN GRAVITY MAIN SWGM-16135

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

Adopt Resolution No. 25-183, which will:

1. Accept the Storm Drain Gravity Main SWGM-16135 Repairs, Project No. 26001, from the contractor, Diamond Construction & Design.

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed Storm Drain Gravity Main SWGM-16135 Repairs.

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, Diamond Construction & Design.

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

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

Page 17 of 22 ends

72 City Council Special and Regular Meeting Minutes November 18, 2025 11E. NOTICE OF COMPLETION - STREET REHABILITATION PROGRAM FY 2025 Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to:

Adopt Resolution No. 25-184, which will:

1. Accept the FY 2025 Street Rehabilitation Program, CIP Project No. 15325, from the contractor, L.C. Paving & Sealing, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the FY 2025 Street Rehabilitation Program.

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, L.C. Paving & Sealing, Inc.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11I. CONSIDERATION OF A RESOLUTION REJECTING ALL BIDS FOR THE REEVES BOOSTER PUMP STATION, CIP PROJECT NO. 17405
Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to:

Adopt Resolution No. 25-188, which will:

1. Reject all bids received on September 25, 2025, for the Reeves Booster Pump Station, CIP Project No. 17405, pursuant to Section 20166 of the Public Contract Code.

2. Authorize staff to conduct a value engineering and re-scoping to further identify cost-saving opportunities while maintaining the required level of serviceability for the Reeves Booster Pump Station; and revise the project plans and specifications accordingly to re-bid the project.

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

Page 18 of 22 ends

73 City Council Special and Regular Meeting Minutes November 18, 2025 11J. ACKNOWLEDGMENT OF OFFICIAL APPOINTMENT OF CITY FINANCE

MANAGER TO THE ROLE OF DEPUTY CITY TREASURER
Motion by Councilmember Loeffler, second by Mayor Knoblock, CARRIED 5-0, to:

Adopt Resolution No. 25-189, which will:

1. Acknowledge the appointment of Sheryl Mariano, Finance Manager as the Deputy City Treasurer, coterminous with the Finance Manager’s tenure in that role, in accordance with the official confirmation of the appointment made by the City Treasurer during the Regular Meeting of the Investment Advisory Committee on October 30, 2025.

2. Acknowledge the authorization of the Deputy City Treasurer to perform the duties of the City Treasurer in accordance with San Clemente Municipal Code section 2.14.030 and Government Code sections 41003 and 41005.

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

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
11F. CONTRACT AWARD - LA PATA/VISTA HERMOSA SPORTS PARK SOCCER

FIELD SYNTHETIC TURF REPLACEMENT
Motion by Mayor Pro Tem Enmeier, DIED FOR A LACK OF SECOND, to direct staff to plant the Vista Hermosa Sports Park Soccer Field with natural grass instead of synthetic turf.

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

Adopt Resolution No. 25-184, which will:

1. Accept the FY 2025 Street Rehabilitation Program, CIP Project No. 15325, from the contractor, L.C. Paving & Sealing, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the FY 2025 Street Rehabilitation Program.

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

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74 City Council Special and Regular Meeting Minutes November 18, 2025 receipt of a warranty bond in a form acceptable to the Public Works Director/City Engineer in the amount of 25% of the total construction cost.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11G. CONSIDERATION OF A RESOLUTION APPROVING AN EXEMPTION TO THE

FORMAL SOLICITATION PROCESS, AWARDING AN AGREEMENT TO

MICHAEL BAKER INTERNATIONAL FOR PROFESSIONAL

ENVIRONMENTAL SERVICES RELATED TO THE HANSON HOTEL
PROJECT (PHP) 25-323, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AGREEMENT
Community Development Director Atamian reviewed the contents of the Administrative Report and responded to City Council inquiries.

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

Adopt Resolution No. 25-186, which will:

1. Approve an exemption to the formal solicitation process within the City’s Purchasing Policy (reference Section XI. A. 1.8).

2. Award a Professional Services Agreement to Michael Baker International to provide environmental consulting services for the Hanson Hotel Project.

3. Approve, and authorize the City Manager to execute, Contract No. C25-61, by and between the City of San Clemente and Michael Baker International, providing for environmental consulting services for the Hanson Hotel Project, in an amount not to exceed $99,375, funded through the developer deposit account for the Hanson Hotel Project.

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

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75 City Council Special and Regular Meeting Minutes November 18, 2025

ITEM REMOVED FROM THE CONSENT CALENDAR FOR PUBLIC COMMENT 11H. CONSIDERATION OF A RESOLUTION REJECTING ALL BIDS FOR THE DIJE

COURT AND EL PORTAL BEACH WOOD STAIRS REPLACEMENT, CIP
PROJECT NO. 22801
Amanda Quintanilla narrated a PowerPoint entitled "Dije Court and El Portal Beach Wood Stairs Replacement". A hard copy of the presentation is on file with the City Clerk.

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

Adopt Resolution No. 25-187, which will:

1. Reject all bids received on April 24, 2025, for the Dije Court and El Portal Beach Wood Stairs Replacement, CIP Project No. 22801, pursuant to Section 20166 of the Public Contract Code.

2. Authorize staff to re-scope the bid package and re-bid the Dije Court and El Portal Beach Wood Stairs Replacement based on a revised scope of work that includes replacement of the landings.

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

12. Oral Communications (Part 2)
Tony Rubolino spoke on comments made by Mayor Pro Tem Enmeier through social media.

13. Future Agenda Items
Councilmember Wu, with the support of Mayor Knoblock agendized a Closed Session agenda item for the December 9, 2025 Adjourned Regular Meeting.

This will be agendized in collaboration with the City Attorney to determine appropriate government code section for the Closed Session discussion.

14. Reports
A. City Attorney
None.

B. City Manager
None.

Page 21 of 22 ends

76 City Council Special and Regular Meeting Minutes November 18, 2025

15. Adjournment
Motion by Mayor Knoblock, second by Councilmember Wu, CARRIED 5-0, to adjourn at 10:57 p.m. to an Adjourned Regular City Council meeting to be held on December 9, 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.

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

Page 22 of 22 ends

77 910 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: December 9, 2025 Agenda Item: (1)
78 79
80 910 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: December 9, 2025 Agenda Item: (2)
81 82
83 84
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: December 9, 2025 Agenda Item: (3)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF NOVEMBER 12, 2025 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
85 CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

DESIGN REVIEW SUBCOMMITTEE
NOVEMBER 12, 2025
Subcommittee Members Present: Chair M. Steven Camp, Vice Chair Cameron Cosgrove, and Member Brett Freeman
Subcommittee Members Absent: Member Scott McKhann
Staff Present: Principal Planner, Zach Rehm
Senior Planner, Christopher Wright
Assistant Planner, Alexia Gruszczynski
Chair Camp called to order the Design Review Sub-Committee Regular Meeting for City of San Clemente on November 12, 2025.

1. APPROVAL OF MINUTES
A. Receive and File Minutes from the October 15, 2025, 2025 Regular Meeting Moved for the approval of minutes to the next DRSC meeting.

B. Receive and File Minutes from the October 29, 2025, 2025 Regular Meeting There being no changes to the October 29, 2025 Meeting of DRSC, the minutes were received and filed.

2. ARCHITECTURAL REVIEW OF THE FOLLOWING ITEMS:

A. Public Hearing Project (PHP) 25-381/ Development Permit (DP) 25-469/ Minor Exception Permit (MEP) 25-470, Wolter Duplex
A request to allow an addition and exterior facade changes to a residence within the Architectural Overlay and adjacent to a historic structure at 210 S. Calle Seville.

Assistant Planner Gruszczynski summarized the staff report and included general and specific information applicable to the project.

Manny Montes (architect for the Applicant) and John Wolter and List Wolter, property owners of 212 S. Calle Seville, were present to respond to questions related to their application. The applicant stated that they wanted to keep the second stairway and use a metal roofing material that is intended to mimic the look of Spanish tile. But, staff was not supportive of these project elements so they were removed. However, the applicant requested DRSC to comment on these ideas.
86 Design Review Subcommittee Meeting Minutes November 12, 2025 Page 2 One public comment was received from Larry Culbertson. Larry expressed support of the project proposal; however, he was concerned about the lack of sidewalk along Avenida Santa Barbara and that the sidewalk waiver indicates a sidewalk will never be constructed along the street.

The Design Review Subcommittee (DRSC) discussed the project, and made the following comments either individually or as a group:
• The remodel should improve the building in character with the existing architectural style unless the project converts the residence to a true form of Spanish architecture, including use of traditional materials like Spanish roof tiles.
• The lighting around the Juliet balcony should be removed or relocated with a light adjacent to the front entrance to Unit B and the other placed by the garage door.
• The roof material should be of a higher quality composite material than that which is proposed, with additional depth and dimension. • The trees along Avenida Santa Barbara should be 15 gallons not 5 gallons. • The stain of the arbor and gate should match the stain of the pergola. • The wrought iron railings should be more decorative.
• There should be a low landscaped retaining wall along Avenida Santa Barbara to attract more attention to landscaping, instead of the slope. • Providing additional landscaping along the side yard is preferable but there was not opposition to having a second stairway if landscaping was welldone. • The applicant can present their ideas for the roof and second stairway to the Zoning Administrator as an alternative if they wish for that to be considered.

The Subcommittee supports the project moving froward to the Zoning Administrator 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
Members of the audience may address the Subcommittee on matters of public interest which pertain to the City and are not otherwise on the agenda. 87 Design Review Subcommittee Meeting Minutes November 12, 2025 Page 3

6. ADJOURNMENT
It was moved to adjourn the meeting to the next Regular Design Review Subcommittee meeting on December 10, 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
88 910 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: December 9, 2025 Agenda Item: (4)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION SPECIAL MEETING MINUTES OF NOVEMBER 13, 2025 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
89 MINUTES OF THE SPECIAL MEETING

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
November 13, 2025 @ 5:00 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 Special Meeting of the Planning Commission of the City of San Clemente to order at 5:02 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 Patrick Griffin led the Pledge of Allegiance.

3. ROLL CALL
Commissioners Present: Chair Cameron Cosgrove; Karen Prescott-Loeffler; Gary McCaughan; Brett Freeman; Patrick Griffin
Commissioners Absent: Vice Chair M. Steven Camp; Chair Pro Temp Scott McKhann Staff Present: Jonathan Lightfoot, City Planner
Zach Rehm, Principal Planner
Elizabeth Mitchell, 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
None.

5. MINUTES
None.

6. ORAL AND WRITTEN COMMUNICATIONS
None.

DRAFT
90 Planning Commission Special Meeting Minutes of November 13, 2025 Page 2

7. CONSENT CALENDAR
None.

8. PUBLIC HEARING
A. A Continued Appeal Hearing for Cultural Heritage Permit (CHP) 25- 306, Amending CHP 16-376, Miramar Events Center, 1700 N. El Camino Real
A continued appeal hearing to review the City Planner’s approval of insignificant modifications to previously approved project plans at the historic Miramar theater property to extend an exterior security wall and alter related landscape and hardscape features near the wall and to modify interior details within the building including a bridal stairway access, demising curtains, and plaster treatment to the auditorium side walls to create Moorish arches.

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), §15302 (Class 2: Replacement or Reconstruction), and §15303 (Class 3: New Construction or Conversion of Small Structures).

Commissioners Prescott-Loeffler, Griffin and Freeman disclosed that they toured the Miramar property with staff on November 5, 2025.

Commissioner McCaughan stated he also toured the site at a different time; and Chair Cosgrove stated he toured the site and met with applicant and informed him of public comments.

Chair Cosgrove opened the public hearing.

City Planner Lightfoot summarized a presentation titled, “Miramar Theater Revisions, November 13, 2025.” A copy of the presentation is available by contacting the City of San Clemente Planning Division. The presentation highlighted:
• Historic and pre-construction imagery
• Prior approvals
• 2017 approved elevation imagery
• Interior and exterior changes
• Comparison renderings of approved and proposed elevations • Revisions that were incorporated from staff and Design Review Subcommittee comments
• Appeal Municipal Code 17.12.140
• Secretary of Interior Standard objectives and guidelines • Updated egress with added Condition of Approval that the applicant receive approval of an updated Architectural Review of Orange County Fire Authority prior to permit issuance; and
• Concluded with a staff’s recommendation to adopt the Resolution.

DRAFT
91 Planning Commission Special Meeting Minutes of November 13, 2025 Page 3 City Planner Lightfoot stated that both parties expressed interest in being partners in the future and that there’s an opportunity for an amicable solution in that the Appellant prioritized considerations of the exterior spaces, while the Applicant is focused on interior for functionality.

Applicant Roger Cellini representing Wedgewood Weddings, the tenant and eventual operator of the Miramar Theater summarized a presentation titled, “AAHA Studio, Miramar Theater Interior TI,” dated November 11, 2025, a copy can be requested through the City of San Clemente Planning Division. The presentation highlighted their commitment to bring the theater back to life through adaptive reuse, preserving its historic character while allowing it to thrive as a modern event space. Mr. Cellini stated the key elements are the demising wall and the staircase to the back, and opined that the arches complement the space by tying in with the existing historic elements. Mr. Cellini expressed the courtyard was too small for outdoor ceremonies and that the expansion provided more room and security for clients and staff.

Appellant Larry Culbertson summarized a presentation titled, “Appeal of Approval of the Miramar Theater Plan Revisions,” a copy can be requested through the City of San Clemente Planning Division. The presentation included historical imagery of the surrounding Historical District as well as photos, renderings and plans of the current project; and asked to reverse the City Planner’s determination to approve revisions to the Miramar Event Center Plans. Highlights of the presentation included:
• Historic integrity of the building and alleged incompatibility with the Secretary of Interior standards
• There are no front fences or walls in front of the primary elevations of any of the historic buildings in the North Beach Historic District • The proposed wall blocks public exterior views of building • Only two exit routes, raising safety concerns
• Mural removal or relocation violate preservation standards • Proposed new arches create a false historical narrative • The tenant’s operating plan would orient weddings towards the back wall instead of towards the historic theater stage
• Opined that a fountain is more appropriate than a fireplace on the patio
• Revisions weren’t vetted by a historic preservation consultant; and • Final construction plans and details were not provided Public Comments:

Wayne Eggleston, former Mayor and Planning Commissioner expressed his opposition of the extended wall (with fountain) and that DRAFT
92 Planning Commission Special Meeting Minutes of November 13, 2025 Page 4 the walls between the Miramar and El Camino Real should be eliminated.

Amanda Quintanilla, resident stated that a third-party specialist was not consulted; that the privacy wall impacted the view of the building; and ADA compliance concerns.

George Gregory, resident expressed displeasure with foundation design; walls disconnected from neighborhood; and electrical gear should be screened.

Mr. Cellini’s response to the Appellant and public speakers was that the murals were not in the design having been told they were not needed; the curtain is vital to the operation; the arches are believed to help with the acoustical issues; recognizes the historical and cultural importance of the theater; and desire to restore its purpose.

In response to questions from the Commission, staff estimated the work on the current shell permits to be 90% completed; clarified that the murals were contemplated to be removed but reconstructed in the 2017 project approval; and noted that the final temporary demising feature may be a moveable partition other than a curtain pending OCFA review.

The Commission questioned the Applicant on the arches and sound attenuation. The applicant responded that the arches mimic the historical elements and sound effectiveness can be tested once installed.

Discussions between the Commission and Applicant ensued on transitioning from the ceremony to reception utilizing the various usable space opportunities available within and outside the venue; practicality of outdoor ceremonies on the patio; the financial impacts; a fireplace versus fountain. At the conclusion of the discussion, the Commission asked the Applicant if they were able to state resolutions resulting from the meeting with the Appellant, and Mr. Cellini stated Wedgewood could concede not extending the courtyard wall; and his understanding is that the Appellant and Historical Society would agree to allowing the interior curtains and staircase; however, the contention is the arches and murals.

The Commission confirmed with City Planner Lightfoot that staff’s recommendation is reflected in the Resolution, and City Planner Lightfoot stated that a new Condition of Approval Section 5 to reflect an OCFA architectural review be made.

City Planner also stated that the Resolution can be modified to meet the objective of leaving the exterior in its current state, which would be a modification of Section 4 to indicate the changes approved by the Commission.

DRAFT
93 Planning Commission Special Meeting Minutes of November 13, 2025 Page 5 Chair Cosgrove closed the public hearing and opened discussion with Commissioners that highlighted:
• The bridal staircase is a good safety feature, allows for late arrivals and grants an additional emergency exit.
• Curtains are needed for operations: privacy and as a sound barrier. • Arches will assist with necessary sound attenuation and are compatible with historic materials and details.
• Opined that the murals are not a character defining feature of the theater; noted that they could be recreated in the future. • Some Commissioners commented that the exterior extended privacy wall (with fountain) should be removed; others noted support for a fence that reduced visual obtrusiveness.
• Agnostic on the fireplace/fountain feature in the existing primary patio space.
• Support for making the business economically viable.
• The city and fire department will address ADA and fire exits during plan check reviews.
• The Miramar tower is the primary character defining feature. • Noted that Walls are needed for outside weddings due to noise. • There should be a fountain instead of a fireplace to mask noise, suggests a self-filler feature.
• Significant work has already been done, and it would be very expensive to demo the concrete.
• The applicant has the ability to talk with staff about alternatives if the enclosure is denied.
• Found the Appellant’s comments on the extension of the exterior privacy wall (with fountain) to be compelling due to the Secretary of Interior Standards that prevent permanent interventions that obscure or alter the historical character.
• Outside ceremonies on the expanded patio area that would be enclosed by the extended privacy wall is not a viable use of the space as it is disjointed from the existing primary patio area. • Concerned about the heavy traffic sound competing with wedding proceedings if people are seated in front of the box office.

IT WAS MOVED BY COMMISSIONER GRIFFIN, AND SECONDED BY
COMMISSIONER PRESCOTT-LOEFFLER, AND CARRIED 4-1, COMMISSIONER

MCCAUGHAN NAY, VICE CHAIR CAMP AND CHAIR PRO TEM MCKHANN ABSENT

TO DETERMINE THE PROJECT IS CATEROGRICALLY EXEMPT FROM THE REQUIREMENTS OF CEQA, AND TO ADOPT RESOLUTION PC 25-020, AFFIRMING THE CITY PLANNER’S DETERMINATION TO APPROVE CULTURAL HERITAGE PERMIT 25-306, AMENDING CULTURAL HERITAGE PERMIT 16-376, MIRAMAR

EVENT CENTER, EXCEPT FOR THE OUTSIDE WALL MODIFICATIONS, SUBJECT

TO THE CONDITIONS OF APPROVAL WITH THE ADDITION OF THE FOLLOWING CONDITION OF APPROVAL, “THE APPLICANT TO RECEIVE APPROVAL OF AN

UPDATED ARCHITECTURAL REVIEW OF ORANGE COUNTY FIRE AUTHORITY PRIOR TO PERMIT ISSUANCE.”
DRAFT
94 Planning Commission Special Meeting Minutes of November 13, 2025 Page 6

9. NEW BUSINESS
A. Staff Presentation on the Status of the Parking and Transportation Demand Management
Principal Planner Rehm summarized a presentation titled, “Staff Update:

Parking and TDM Plan,” dated November 13, 2025. A copy of the presentation is available by contacting the City of San Clemente Planning Division. The presentation included responses to the Commissioner’s Comments provided during an October 8, 2025 Study Session on the Parking and TDM Plan. The summary highlighted:
• The consultant is updating maps to differentiate private lots, publicly leased private lots, and city-owned public lots.
• The City is tracking parklets and has updated Excel sheets. About ten parklets are occupying about 30 street parking spaces along Ave Del Mar and three parklets occupy public parking in the Pier Bowl. • The State extended parklets indefinitely; the City program expires July 1, 2026 unless extended.
• The City is prioritizing private lot leasing because it is cost effective. • Staff are analyzing increases in public parking capacity with restriping or parking structures and reviewing prior analysis from 2006 and 2019. • The library lot is still the best option for a parking structure. • The consultant recommends automated license plate reader (ALPR) technology.
• Replacing coin-only meter heads with credit card options is also being considered.
• The City is trying to come up with best practices for neighborhood electric vehicle (NEV) parking criteria.
• The City is reviewing parking data on parallel blocks in the downtown area to see if they can be broken down further.
• Trolley-based real-time tracking is available on the City website. • A more advanced app would cost money to develop and operate. • The consultant is working on pro-forma that will estimate the time it may take to realize certain benefits.
• The City collected about $1.2 million last year from meters and $600,000 from enforcement and fines.
• Half of the enforcement money can be rededicated to parking or the general fund, while the other half goes to the clean ocean fund. • The plan will have a general list of options and things that could be done in the near future.
• The City is considering providing flexibility in the zoning code for small businesses short on private parking.
• A written document is expected in a few weeks, with a public hearing hopefully in December or January.
• The Commission can provide written comments or have a one-on-one or two-on-one meetings with staff.

DRAFT
95 Planning Commission Special Meeting Minutes of November 13, 2025 Page 7 The Commissioners inquired about parking passes, that staff advised the program is not a significant revenue center, although popular with users. A Commissioner noted the downtown area closest to Del Mar faces more parking challenges due to employees that park for an entire work shift. A parking co-op or employee parking off-site could be a solution. Staff stated the consultant is analyzing employee parking alternatives.

10. OLD BUSINESS
None.

11. REPORTS OF COMMISSIONERS AND STAFF
A. Commissioner Reports
None.

B. Tentative Future Agenda
The November 19, 2025 meeting has been cancelled due to lack of business.

C. Administrative Permit Report
D. Staff Reports

12. ADJOURNMENT
The Planning Commission adjourned to the Adjourned Meeting of the Planning Commission to be scheduled for Wednesday, December 3, 2025 at 6:00 p.m., which will be held at the San Clemente City Hall Council Chambers located at 910 Calle Negocio, 2nd Floor, San Clemente, California.

Respectfully submitted,
___________________________
Cameron Cosgrove, Chair
Attest:
___________________________
Jonathan Lightfoot, Secretary to the Planning Commission DRAFT
96 910 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: December 9, 2025 Agenda Item: (5)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF NOVEMBER 20, 2025 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
97 CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING

OF THE ZONING ADMINISTRATOR
November 20, 2025
San Clemente City Hall
First Floor Community Room
910 Calle Negocio
San Clemente, California 92673

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

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

2. MINUTES
A. Receive and file Minutes for the October 23, 2025 Regular Zoning Administrator Meeting.

ZA Atamian received and filed the Zoning Administrator Regular Meeting Minutes of October 23, 2024.

3. ORAL AND WRITTEN COMMUNICATION
None.

4. PUBLIC HEARING
Public Hearing Project (PHP)25-026, Yap Duplex, Condominium Subdivision, 236 W. El Portal
A public hearing to request Zoning Administrator approval of Tentative Parcel Map (TPM) 25-164 to allow a duplex condominium subdivision for individual ownership of two dwelling units at 236 W. El Portal.

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

ZA Atamian opened the public hearing and introduced Assistant Planner Coury who summarized the staff report and a presentation titled, “Item 4-A, PHP 25-026, 236 West El Portal Condominium Subdivision,” a copy of which can be requested by contacting the Planning Division. The report highlighted the project location; a DRAFT
98 Zoning Administrator Adjourned Meeting November 4, 2025 Page 2 site map of the TPM; images of the site; advised that unit A is a 1,946 square foot unit in the front and unit B is 2,229 square feet located in the rear; and that the project is categorically exempt from CEQA.

ZA Atamian confirmed with staff that CC&R documents will be submitted for review and approval.

Property owner Calvin Yap and Applicant Brenda Wright with Walden Associates had nothing to add to the staff’s report.

ZA Atamian closed the public hearing and disclosed that he had visited the property and reviewed the staff report, and stated his support of converting the multi-family dwelling into condominium for private ownership.

Action: The Zoning Administrator determined the project is categorically exempt from CEQA and adopted Resolution ZA25-025 approving Tentative Parcel Map 25-164, Yap Duplex Condominium Subdivision, 236 W. El Portal, subject to the Conditions of Approval.

B. Public Hearing Project (PHP)25-407, Short-Term Apartment Rental (STAR)25-444, Waddell STAR, 315 Avenida Monterey
A public hearing to request Zoning Administrator to establish a short-term apartment rental and one manager’s unit within an existing duplex at 315 Avenida Monterey. Unit A currently operates as a short-term lodging unit (STLU) outside the established STLU zone.

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

ZA Atamian opened the public hearing and introduced Assistant Planner Mejia who summarized the staff report for a STAR that currently operates the front unit A as an STLU outside the established zone. The on-site manager’s unit is in the rear above a detached garage. Assistant Planner Mejia introduced the property owner Jean Waddell and her daughter Jennifer Harris, the on-site manager.

Ms. Waddell stated the property has been a vacation rental since 2015, they regularly pay their 10% tax on guest stays, and has gifted three-night stays at charitable events to encourage people to visit San Clemente. Ms. Waddell confirmed no disturbances or code violations and that off-site parking is provided.

Ms. Harris expressed her enjoyment in hosting different people, that she is always present when guests are onsite and guests enjoy the walkability throughout town.

DRAFT
99 Zoning Administrator Adjourned Meeting November 4, 2025 Page 3 Public Comments:

Scott Hunt, neighboring resident since 1958 expressed support.

Matthew Kelysko, neighboring resident for 26 years expressed his support stating that the Waddell property is the best-looking and well-kept home on the block, he has observed no problems since it became an STLU, and he recognizes many repeat guests.

ZA Atamian closed the public hearing and disclosed that he drove by the property; clarified with Ms. Harris requirements regarding applying for a STAR permit, had not comments about the merits of the application; and noted that there was nothing notable in the code compliance records.

Action: The Zoning Administrator determined the project is categorically exempt from CEQA and adopted Resolution ZA25-026 approving Short-Term Apartment Rental 25- 444, Waddell STAR, 315 Avenida Monterey, subject to the Conditions of Approval with the modification in the Resolution title to reflect “Front Unit A and Back Unit B.”

5. NEW BUSINESS
A. Review of Tentative Future Agendas
ZA Atamian requested the following;
• To cancel the January 8, 2026 Zoning Administrator Meeting to follow the City Council and Planning Commission Meeting cancellations.
• Due to a conference speaking engagement, to cancel the February 5, 2026 Zoning Administrator Meeting and to schedule a Special Meeting if necessary.

6. OLD BUSINESS
None.

7. ADJOURNMENT
Zoning Administrator Atamian adjourned the meeting. The next meeting of the Zoning Administrator will be held at 3:00 p.m. on Thursday, December 4, 2025 at the Community Development Department, First Floor Community Room, located at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,

SAN CLEMENTE ZONING ADMINISTRATOR
_____________________________________
Adam Atamian, Zoning Administrator
DRAFT
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: December 9, 2025 Agenda Item: (1)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3339 through 3344 and Warrant Nos.
608288 through 608423, paid on
11-14-25, in the amount of $1,648,343.80
..end
101
102
103
104
105
106
107
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: December 9, 2025 Agenda Item: (2)
..ag endizedby
..end
Subject:
..titl e
Approve Warrant Nos.
608424 through 608603, paid on
11-21-25, in the amount of $1,541,338.82
TOTAL WARRANT REGISTER $3,189,682.62 ..end
108
109
110
111
112
113
114
115
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: December 9, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Automatic Deposit
Advises 107656 through 107989,
for the period 10-27-25 through
11-9-25, paid on 11-14-25,
in the amount of $553,423.73
TOTAL PAYROLL REGISTER $553,423.73 ..end
116
117
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: December 9, 2025 Agenda Item: 11D.

ORDINANCE NO. 1798

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, APPROVING PUBLIC HEARING
PROJECT 25-395, ZONING AMENDMENT 25-396 TO TITLE 17
(ZONING) OF THE SAN CLEMENTE MUNICIPAL CODE,
AMENDING SECTION 17.56.100, EMERGENCY SHELTER

OVERLAY DISTRICT, TO UPDATE THE DEVELOPMENT

STANDARDS AND OPERATIONAL AND MANAGEMENT

STANDARDS WITHIN THE EMERGENCY SHELTER OVERLAY
CONSISTENT WITH PROGRAM 15 OF THE SAN CLEMENTE
CERTIFIED HOUSING ELEMENT AND STATE LAW; AND FINDING

THIS ACTION IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES
CODE SECTION 21083.3 AND CEQA GUIDELINES SECTION 15183
WHEREAS, in 2007, the State of California passed Senate Bill 2 ("SB2"), the "Emergency Shelter Act," to clarify and strengthen housing element law to ensure zoning encourages and facilitates emergency shelters and limits the denial of emergency shelters and transitional and supportive housing under the State's housing element law, Government Code Sections 65580 - 65589.8; and
WHEREAS, SB2 became effective January 1, 2008 and requires all California cities and counties to address their communities' homeless needs by designating a zone or zones where emergency shelters are allowed by right; and
WHEREAS, on November 1, 2016, the City Council of the City of San Clemente (“City”) adopted Ordinance No. 1643 which established the Emergency Shelter Overlay and applicable development and operational standards; and
WHEREAS, on December 20, 2022, the City adopted Ordinance No. 1741 which amended Chapter 17.56 Overlay Districts and Standards of the San Clemente Municipal Code to comply with Assembly Bill 139 regarding parking requirements for emergency shelters; and WHEREAS, on September 20, 2022, the City adopted the 6th Cycle of the Housing Element, which included an Action Plan that set timelines for different programs to be implemented or maintained including the maintenance of the Emergency Shelter Overlay; and WHEREAS, the Department of Housing and Community Development (HCD) certified the City’s Housing Element on October 12, 2022; and
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CITY OF SAN CLEMENTE 2
WHEREAS, on September 20, 2022, as part of its action on the Housing Element, the City Council certified Program Environmental Impact Report SCH No. 2021020256 (“Housing Element and Safety Element EIR”) pursuant to the California Environmental Quality Act (“CEQA”), approved mitigation measures, and adopted a Statement of Overriding Considerations; and WHEREAS, this ordinance (“Ordinance”) amends the San Clemente Municipal Code Chapter

17.56, amending Section 17.56.100 Emergency Shelter Overlay District, that implements the requirements of State housing laws and the City of San Clemente’s certified Housing Element to effectuate the City Council’s directives on the same; and WHEREAS, the City, as Lead Agency, has conducted an environmental review of the proposed Ordinance for compliance with the CEQA and State CEQA Guidelines. The San Clemente Municipal Code amendments within the ordinance are exempt from CEQA and/or not subject to further environmental review pursuant to Public Resources Code (PRC) Section 21083.3 and CEQA Guidelines Section 15183. Since the project would adopt development standards consistent with the land uses and development intensities analyzed in the certified EIR for the Housing Element Update, and because the project would not introduce any new or peculiar potentially significant environmental impacts, the San Clemente Municipal Code amendments are eligible for the Community Plan exemption from CEQA pursuant to Public Resources Code Section 21093.3 and Guidelines Section 15183; and
WHEREAS, on October 8, 2025, the Planning Commission held a duly noticed public hearing on the proposed Zoning amendment, considered testimony, and other evidence, and recommended the City Council approve and adopt this Ordinance; and
WHEREAS, on November 18, 2025, the City Council held a duly noticed public hearing on this Ordinance, considered the agenda report, including the policy considerations discussed therein, and the written and oral testimony received. The City Council has also reviewed and considered the Planning Commission’s recommendation, and the agenda report and other evidence that was considered by the Commission, in connection with the proposed amendments; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Incorporation of Recitals.

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

SECTION 2: CEQA Findings.

Based upon its review of the entire record, including but not limited to, the Staff Report, any public comments, all related information presented to the City, and the facts outlined below, the City Council finds the San Clemente Municipal Code amendment within the Ordinance is exempt from CEQA and/or not subject to further environmental review pursuant to PRC Section 21083.3 and Guidelines Section 15183. Since the project would adopt modifications to the Emergency Shelter Overlay District consistent with the land uses and development intensities analyzed in the certified 119
Meeting Date: December 9, 2025 Agenda Item: 11D.

CITY OF SAN CLEMENTE 3
EIR for the Housing Element Update, the San Clemente Municipal Code amendments are eligible for Community Plan exemption from CEQA pursuant to PRC Section 21083.3 and CEQA Guidelines Section 15183.

SECTION 3: Zoning Amendment Findings
The City Council finds the following for the attached Ordinance approving Zoning Amendment ZA25-396 amending the San Clemente Municipal Code:

A. The proposed zoning amendment is consistent with the General Plan, in that:

1. The City’s 6th Cycle Housing Element is a component of the General Plan, including the Housing Action Plan goal to provide adequate opportunities for new housing for people of all economic levels and those with special needs.

2. Objectives of Program 15 of the Housing Action Plan of the City’s 6th Cycle Housing Element include updating the Emergency Shelter Overlay bed-limit, caps, parking standards, and maximum separation requirements to reflect and accommodate the most recent point-in-time count, to ensure development standards comply with State law and are not impediments to siting shelters.

B. The proposed amendment will not adversely affect the public health, safety, and welfare, in that:

1. The amendment meets community needs and conditions without expanding the areas in which emergency shelters may be located.

2. The project reflects the City’s review, direction, and independent judgment regarding land use.

3. The project is consistent with the City’s 6th Cycle Housing Element, whereby the City Council determined that implementation of the Programs of the City’s Housing Element will not adversely impact the public health, safety and welfare.

SECTION 4: San Clemente Municipal Code Amendments.

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

SECTION 5: Severability.

If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 120
Meeting Date: December 9, 2025 Agenda Item: 11D.

CITY OF SAN CLEMENTE 4
SECTION 6: Effective Date.

This Ordinance takes effect within 30 days after adoption of this Ordinance by the City Council.

SECTION 7: Reference to Existing Provisions.

All existing provisions of the Municipal Code that are repeated herein are repeated only to aid decision-makers and the public in understanding the effect of the proposed changes. Restatement of existing provisions does not constitute a new enactment.

SECTION 8: Custodian of Records.

The documents and materials associated with this ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at San Clemente City Hall, 910 Calle Negocio, San Clemente, CA 92673.

SECTION 9: Certification and Publication.

The City Clerk shall certify to the passage of this ordinance and cause the same to be published as required by law.

APPROVED, ADOPTED AND SIGNED this _____ day of _______________, _________.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
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Meeting Date: December 9, 2025 Agenda Item: 11D.

CITY OF SAN CLEMENTE 5

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. _________ 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:

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: December 9, 2025 Agenda Item: 11E.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e
CONSIDERATION OF RESOLUTION NO. 25-192, AMENDING POLICY NO. 103-2-1 REGARDING THE WALL OF RECOGNITION ..body
Fiscal Impact:

None. The recommended amendments do not change operational costs or require new funding allocations.

Summary:

The Beaches, Parks & Recreation Department recommends City Council approval of amendments to Wall of Recognition Policy No. 103-2-1 to clarify and strengthen nomination requirements. The proposed changes include:
 Establishing a minimum of twelve (12) San Clemente residents for consensus-based nominations.
 Requiring all nominations to include a signed nomination form with residency verification for each sponsoring resident.
 Clarifying that the Beaches, Parks & Recreation Director has the authority to deny applications based on incompleteness or falsification prior to Committee review.

These updates improve consistency, enhance transparency, and ensure each nomination meets the established intent of the program. These amendments further uphold the Policy’s intent to honor individuals who have demonstrated verified, meaningful service to the San Clemente community.

Background:

The Wall of Recognition was established to honor individuals whose significant contributions have enhanced the quality of life in San Clemente. Policy No. 103-2-1 outlines the nomination, review, and approval procedures for sponsored individuals.

In recent years, the Department has received nomination packages with incomplete information, unverifiable residency, or inconsistencies in sponsorship documentation. This has created challenges during initial screening and delayed the review process by the Wall of Recognition Committee.

Clarifying the minimum number of required residents, formalizing residency verification, and reaffirming the Director’s authority to reject incomplete or falsified submissions will strengthen the 123
Meeting Date: December 9, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 2
integrity of the program, align with the Policy’s purpose, and support efficient processing of nominations.

Council Options:
 Adopt Resolution No. 25-192, entitled A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING WALL OF RECOGNITION POLICY NO. 103-2-1 TO UPDATE NOMINATION REQUIREMENTS AND CLARIFY APPLICATION

REVIEW PROCEDURES
 Modify and adopt the resolution.
 Take no action.

Environmental Review/Analysis:

The proposed action consists of amendments to an administrative policy governing nomination procedure for the City’s Wall of Recognition. These changes involve procedural updates to sponsor requirements, verification documentation, and application review authority. The action does not result in any physical development, construction, or modification of the environment.

The proposed amendments do not constitute a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines §15378(b)(2) and (5), which state that organizational or administrative activities of governments that do not result in direct or indirect physical changes in the environment, and administrative policy or procedure updates, are not considered projects subject to CEQA.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-192, which will amend Policy No. 103-2-1 by modifying the qualifying parameters for nominations to be submitted and clarifying the application review procedures.
..end
Attachment:

1. Resolution No. 25-192

2. Propose redline revisions to Policy 103-2-1
Notification:

Wall of Recognition Committee
124
Attachment 1
RESOLUTION NO. 25-192

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AMENDING WALL OF
RECOGNITION POLICY NO. 103-2-1 TO UPDATE

NOMINATION REQUIREMENTS AND CLARIFY

APPLICATION REVIEW PROCEDURES
WHEREAS, the Wall of Recognition Policy No. 103-2-1 establishes the procedures and criteria for nominating individuals whose significant contributions have enhanced the quality of life in the City of San Clemente; and
WHEREAS, the City desires to maintain a transparent, consistent, and verifiable nomination process that upholds the intent and integrity of the Wall of Recognition program; and
WHEREAS, staff has identified the need to clarify and update requirements for consensus-based nominations, including the number of required sponsoring residents and the documentation necessary for residency verification; and WHEREAS, the City also seeks to reaffirm and clarify the authority of the Beaches, Parks & Recreation Director to deny or return nomination applications that are incomplete or contain falsified information during the initial review process; and WHEREAS, the City Council finds it in the best interest of the City to amend Policy No. 103-2-1 to reflect these updates.

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

SECTION 1. Policy No. 103-2-1 is hereby amended to require that consensus nominations be supported by a minimum of twelve (12) individuals whose primary residences are within the City of San Clemente.

SECTION 2. Policy No. 103-2-1 is hereby amended to require that all consensus nominations include a completed and signed nomination form for each sponsoring resident, which must include the resident’s name, address, phone number, signature, and a residency verification declaration consistent with Policy Section 5.3.

SECTION 3. Policy No. 103-2-1 is hereby amended to clarify that the Beaches, Parks & Recreation Director, or designee, has the authority to deny or return nomination applications that are incomplete or found to contain falsified information during the initial submittal review prior to consideration by the Wall of Recognition Committee.

SECTION 4. All other provisions of Policy No. 103-2-1 not amended by this Resolution shall remain in full force and effect.
125
Resolution No. 25-192 Page 2
SECTION 5. Staff is hereby authorized and directed to implement the revisions to Policy No. 103-2-1 consistent herewith and in a form substantially similar to that presented to the City Council on November 18, 2025.

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 Mayor of the City of
San Clemente, California San Clemente, California
126
Resolution No. 25-192 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. 25-192 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:

Page 1 ends

POLICY AND PROCEDURE

1.0 PURPOSE
The purpose of the Wall of Recognition is to recognize individuals whose contributions and selfless efforts have made the City of San Clemente a more productive and enjoyable place to live, work, and play.

2.0 ORGANIZATIONS AFFECTED
Beaches, Parks & Recreation Department

3.0 REFERENCES
N/A

4.0 POLICY

4.1 The City of San Clemente desires to recognize the efforts of individuals who dedicate time and effort to the betterment of the community. Requests for consideration on the Wall of Recognition shall be reviewed once a year as provided in 6.0 below.

4.2 Guidelines for Sponsorship

4.2.1 For a nominee to be considered for the Wall of Recognition, he/she must be sponsored by a group in one of the following manners:
a. Non-Profit Organization: The nominee is sponsored by an organization registered with the State of California as a not-forprofit community organization, exempt under Section 501 (c)(3) of the Internal Revenue Code.
b. Consensus: The nominee is sponsored by a minimum of ten (10) twelve (12) individuals whose primary residences are in the City of San Clemente. The sponsoring group of residents must circulate and sign a nomination form, which is to include the sponsoring residents’ names, addresses, phone numbers, and Subject: Wall of Recognition Index: Administration & Policy Management
Number: 103-2-1
Effective Date: December 9, 2025 Prepared By: Beaches, Parks and Recreation
Supersedes: February 16, 2016 Approved By:

Attachment 2
128

Page 2 ends

signatures. The form must be submitted as an attachment to the required application form.

4.3 Qualifications of the Nominee to be Recognized on the Wall of Recognition

4.3.1 The nominee must be a resident (primary residence) of San Clemente for a minimum of 10 years.

4.3.2 Service to the community must have been performed in the City or can be adequately shown to have directly benefited the City.

4.3.3 The Wall of Recognition Committee may waive portions or all of the qualification requirements if services provided by the nominee warrant said waiver in the opinion of a majority of the committee members.

4.4 Submittal Requirements

4.4.1 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 ½” by 11” typewritten page.
a. Name, address, and phone number of the individual nominated. b. Name, signature and address of the sponsor(s) and the name, address, and phone number of the contact person who will represent the sponsor. Only one individual shall be listed as the contact person.
c. Length of time the nominee has resided in San Clemente (primary residence).
d. Services provided by the nominee that benefited the community and the 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 for verifying the accuracy of the information provided.
f. The Beaches, Parks & Recreation Director and/or the Wall of Recognition Committee reserve the right to disqualify an application if it is found to contain falsified information or if the application is incomplete.

5.0 DEFINITIONS:

5.1 City: The term City shall refer to the City of San Clemente and include all 129

Page 3 ends

areas within the boundary lines of the City.

5.2 Nominee: An individual sponsored for recognition on the Wall of Recognition.

5.3 Primary Residence: To qualify as a primary residence, the address must be the primary location for the delivery of mail, the resident must be registered to vote based upon this address, and the resident’s driver’s license must contain this address.

5.4 Sponsor: A Sponsor is a non-profit organization, or a group of a minimum of ten (10) twelve (12) individuals, whose primary residences are in the City of San Clemente, and whose purpose is to nominate an individual (nominee) for incorporation on the Wall of Recognition. Refer to 4.2 above.

5.5 Wall of Recognition Committee: A committee with a governing board comprised of past recipients named to the Wall of Recognition, a representative from the City Council, a representative from the Beaches, Parks and Recreation Commission, a representative from the Human Affairs Committee and the Director of Beaches, Parks and Recreation or his/her designee. The committee is charged with reviewing requests for the Wall of Recognition and forwarding recommendations to the City Council for approval.
6 Procedure:

6.1 All requests for consideration for the Wall of Recognition shall be submitted once per year. Applications will be accepted in the month of February. Each request shall be addressed, in writing, by the sponsor to the Beaches, Parks and Recreation Department. Any requests received after 5:00 pm on the last Thursday of February shall not be eligible.

6.2 The Director of Beaches, Parks and Recreation, or his/her designee, shall review each request based upon the criteria established within this Policy and Procedure to determine the completeness of the submittal. It shall be the responsibility of the sponsor to prepare complete submittal packages. Upon verification of a complete submittal, the Director or his/her designee shall forward the requests to the Wall of Recognition Committee.

6.3 The Wall of Recognition Committee shall consider all requests for incorporation on the Wall of Recognition. The Committee shall forward their selected nominee to the City Council for approval.

6.4 Upon approval by the City Council, the Director of Beaches, Parks and Recreation or his/her designee shall meet with the sponsor to finalize the wording for the plaque. The Director shall approve the plaque design and location on the Wall of Recognition. The Director shall, at his/her discretion, have the authority to approve or deny wording. If appropriate wording for the plaque cannot be agreed upon, the sponsor may appeal the decision to the Wall of Recognition Committee.
130

Page 4 ends

6.5 The City Clerk shall prepare, and the mayor shall sign a framed Certificate of Recognition that is to be presented to the honored individual(s).

6.6 The Wall of Recognition intends to honor individuals whose contributions and selfless efforts have made the City of San Clemente a more productive and enjoyable place to live. Therefore, all existing individuals who have been honored by an official action of the City Council before the approval of this Policy and Procedure shall be automatically grandfathered into the Wall of Recognition. The Beaches, Parks and Recreation Director shall research the background of the families of these individuals to prepare the appropriate wording for the plaques. The Beaches, Parks and Recreation Department shall prepare plaques for these individuals and place them on the Wall of Recognition as time and budget permits.
131
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: December 9, 2025 Agenda Item: 11F.

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

None.

Summary:

The City’s Investment Policy has been reviewed and amended by the Investment Advisory Committee (IAC) in accordance with Section 5.6 of the current Policy during the November 10, 2025 IAC special meeting. The proposed Policy incorporates recommended changes to align with the California Government Code that will take effect on January 1, 2026. The revised Investment Policy is submitted to City Council for approval, as is required on an annual basis.

Background:

Government Code Section 53646(a)(2) allows the City Treasurer to annually submit to the City Council and any oversight committee a statement of investment policy, which shall be considered by the City Council at a public meeting. After review of the current Investment Policy by Investment Advisory Committee members, City Treasurer Charlie Smith, and the City’s external investment advisory firm, the IAC voted 4-0 to recommend that the changes made during the November 10, 2025 meeting be approved by City Council.

Council Options:
 Adopt Investment Policy Number 202-1, which would be effective beginning January 1, 2026.  Adopt Investment Policy Number 202-1, with modifications.  Continue the item with direction to provide additional information.

Environmental Review/Analysis:

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

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt updated Investment Policy Number 202-1, effective January 1, 2026.
132
Meeting Date: December 9, 2025 Agenda Item: 11F.

CITY OF SAN CLEMENTE 2
..endAttachment:

1. Proposed 2026 Investment Policy
Notification:

None.
133
Table of Contents
Section

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6.0 Definitions ............................................................................................................. 13 Management Directive to External Money Manager ..................................................18 California Government Code ...................................................................................... 20 City of San Clemente-Broker/Dealer Questionnaire .................................................. 34 Attachment 1
134

POLICY AND PROCEDURE
Subject: Investment Policy Index: Treasurer
Number: 202-1
Effective January 27, 2025January
1, 2026
Date:

Prepared By: Finance and
Administrative
Services/City Treasurer
Supersedes: February 20, 2024January
27,2025
Approved By:

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

2.0 ORGANIZATIONS AFFECTED:

All departments/divisions

3.0 REFERENCES:

3.1 Civil Code Section 2261, et seq.

3.2 Government Code Section 53600, et seq.

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

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

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

4.1.1 FUNDS:

4.1.1.1 General Funds

4.1.1.2 Special Revenue Funds

4.1.1.3 Capital Project Funds
135

4.1.1.4 Enterprise Funds

4.1.1.5 Internal Services Funds

4.1.1.6 Trust and Agency Funds

4.1.1.7 Debt Service Funds

4.1.1.8 Redevelopment Agency Funds

4.1.1.9 Any new fund created by the City Council

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

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

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

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

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

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

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

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

Interest rate risk may be mitigated by:

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

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

4.2 4.2.2 Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

4.2.2 4.2.3 Return on investment: The City's investment portfolio shall be designed with the objective of attaining a consistent market rate of return 136
throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio.

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

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

4.4 Delegation of Authority: The City Council, by adoption of this Investment Policy, delegates investment authority to the City Treasurer. In accordance with Government Code Section 53607, investment authority may be delegated for a oneyear period by the City Council. In accordance with Government Code Section 53607, investment authority may be revoked by the City Council before that one- year period is over.

4.4.1 External Investment Advisor: The City Treasurer may review and evaluate the services of registered external investment advisors to manage all or a part of the City's investment portfolio. Investment advisors shall make all investment decisions in accordance with State law and the City's investment policy.

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

4.4.1.1 Selection of External Investment Advisor: The Investment Advisory Committee shall, after review of external investment advisors’ qualifications, recommend to the City Council the selection of one or more firms to manage City investments, or recommend the replacement of an existing firm.

4.4.2 The City Treasurer, with approval by the Finance & Administrative Services 137

Page 5 ends

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

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

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

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

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

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

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

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

4.5.2 4.6.1 Annual Review: An annual review of the financial condition and registrations of the Securities Dealers with whom the City does business which will be conducted by the City's Investment Advisory Committee.

4.5.3 4.6.2 Audited Financial Statement: A current audited financial statement is required to be on file in the City Clerk's Office for each financial institution and Securities Dealer with whom the City does business, including external money managers, banks, custodians of securities and broker/dealers. 138

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4.5.4 4.6.3 Counterparty Risk: Financial institutions with whom the city does business should be well capitalized and credit worthy to minimize Counterparty Risk. For avoidance of doubt, the City takes on no specific Counterparty Risk given its delivery vs. payment investment policy.

4.6 4.7 Authorized and Suitable Investments:

4.6.1 4.7.1 Authorized Investments: In accordance with State law, investments may be made in the following media (California Government Code Section 16429.1, 53600- 53609 and 53630- - Exhibit attached): The City seeks to further restrict eligible investments to the guidelines listed below. In the event an apparent discrepancy is found between this Policy and the Government Code, the most restrictive parameters will take precedence. Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.

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

4.6.1.1 4.7.1.1 U.S. Treasury Securities or

4.6.1.2 4.7.1.2 Federal Agency Securities

4.7.1.1.1 4.7.1.2.1 Federal Home Loan Bank (FHLB)

4.7.1.1.2 4.7.1.2.2 Federal National Mortgage Association (FNMA)

4.7.1.1.2 4.7.1.2.3 Federal Home Loan Mortgage Corporation (FHLMC)

4.7.1.1.3 4.7.1.2.4 Federal Farm Credit Bank(FFCB)

4.7.1.1.4 4.7.1.2.5 Tennessee Valley Authority (TVA)

4.6.1.3 4.7.1.3 Collateralized or insured Passbook Savings Accounts & Demand Deposits.

4.6.1.4 4.7.1.4 Collateralized or insured Certificates of Deposits (or Time Deposits) placed with commercial banks and/or savings and loan companies.

4.6.1.5 4.7.1.5 Bankers Acceptances with banks whose short- term obligations are rated A-1/P-1 or higher, or the equivalent, by at least one nationally recognized statistical rating organization (NRSRO). Banks may not be on "negative credit watch" by any NRSRO. Maturities may not exceed 180 days.

4.6.1.6 4.7.1.6 Commercial Paper purchases may not exceed 270 397 days maturity. nor 139

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represent more than 10% of the outstanding paper of an issuing corporation.

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

4.6.1.7 4.7.1.7 Corporate Debentures (including Medium Term Notes issued by corporations organized and operating in the U.S.). Investments in any single issuer, when combined with any investments in negotiable certificates of deposit, shall not exceed 3% of the total portfolio market value. Corporate issues purchased by an investment advisor hired by the City for their credit evaluation process must be rated at least in the "A" category or equivalent by at least one NRSRO at the time of purchase. Corporate issues purchased by the Treasurer must be rated as follows:

4.6.1.6.1 4.7.1.7.1 For maturities of three years or less in the "A2/A" category or higher at time of purchase.

4.6.1.6.2 4.7.1.7.2 For maturities of greater than three years to five years in the "Aa3/AA-" category or higher at time of purchase.

4.6.1.7 4.7.1.8 Repurchase agreements whose underlying collateral consists of the foregoing, provided a signed PSA Master Repurchase Agreement is on file with the counterpart bank or broker/dealer. Direct investments in Reverse Repurchase agreements are prohibited.

4.6.1.8 4.7.1.9 Local Agency Investment Fund (State of California Pool). Money market mutual funds whose portfolio consists of investments listed in Section 4.7.1. Money market mutual funds must be AAA rated by at least 2 of the 3 largest rating agencies.

4.6.1.9 4.7.1.10 Asset-Backed Securities where the securities are rated "AA" or higher by a NRSRO. The maximum legal final maturity may not exceed five (5) years.

4.6.1.10 4.7.1.11 Negotiable Certificates of Deposit (NCDs issued by a nationally or statechartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank). Purchases of eligible NCDs in any single issuer, when combined with any investments in corporate debentures, shall not exceed 3% of the total portfolio market value. NCO issues purchased in an amount above the FDIC insured limit must be rated in the "A2/A" category or higher by at least one NRSRO; or have short term debt obligations rated "A-1/P-1" or higher, or the equivalent, by at least one NRSRO. The maturities of NCDs may 140

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not exceed 5 years, if the amount is within the FDIC insured limit. When purchased in the City's internally managed portfolio the issuer must have an IDC ranking of "Excellent" or higher at time of purchase.

4.6.1.11 4.7.1.12 Orange County Investment Pool (OCIP).

4.6.1.12 4.7.1.13 Supranational Securities, provided that the securities are US-dollar denominated senior unsecured obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, and are rated in the "AA" category or higher by a NRSRO. No more than 5% of the portfolio may be invested in a single issuer.

4.7.1.14 Shares of Beneficial Interest issued by a Joint Powers Authority. The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to ( r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA. The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized bye Section 53601, subdivisions (a) to (q).

4.6.2 4.7.2 Bank Savings Accounts and Certificates of Deposit: No funds will be invested in an institution which has at the time the deposit or investment is made, a regulatory capital rating of less than "adequately capitalized."

4.6.3 4.7.3 Prohibited Investment Vehicles and Practices:

4.6.3.1 4.7.3.1 State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.

4.6.3.2 4.7.3.2 In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.

4.6.3.3 4.7.3.3 Investment in any security not issued or backed by the US government that could result in a zero interest accrual if held to maturity is prohibited.

4.6.3.4 4.7.3.4 Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

4.6.3.5 4.7.3.5 Purchasing or selling securities on margin is prohibited.

4.6.3.6 4.7.3.6 The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
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4.6.3.7 4.7.3.7 The purchase of foreign currency denominated securities is prohibited.

4.6.4 4.7.4 Pool Investments: With the exception of Local Agency Investment Fund (LAIF), a thorough investigation of the pool fund is required prior to investing, and on an annual basis. This investigation will address and document the following items:

4.6.4.1 4.7.4.1 A description of eligible investment securities, and a written statement of investment policy and objectives.

4.6.4.2 4.7.4.2 A description of interest calculations and how it is distributed, how gains and losses are treated, and the fees charged

4.6.5 4.8 Credit Rating Downgrade: In the event that an issue is later downgraded to a level below the quality required for purchase by this investment policy, the Treasurer will assess the risk exposure to the City and will make a decision regarding course of action and will advise the Investment Advisory Committee accordingly. If a security purchased by an external investment advisor is downgraded below the requirements of this policy, making the security ineligible for additional purchases, any actions taken by the external investment advisor will be communicated to the Treasurer in a timely manner. If a decision is made to retain the security, the credit situation will be monitored and reported to the Investment Advisory Committee.

4.7 4.9 Safekeeping & Collateralization:

4.7.1 4.9.1 Repurchase Agreements: Collateral is required for all repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be a minimum of 102% of market value of principal and accrued interest. Collateral will always be held by an independent third party with whom the City has a current custodial agreement. The independent third- party custodian must be a major financial institution, with at least $5 billion in assets plus a long -term rating of A or better. The third- party custodian shall be required to issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. The right of collateral substitution is granted for repurchase agreements.

Collateral securities shall be equal in quality and may only consist of Those securities listed as authorized investments in sections 4.7.1.1 Through 4.7.1.135. 4.7.2 4.9.2 Certificates of Deposit: Collateral of at least 110% or FDIC insurance is required for Certificates of Deposit.

4.7.3 4.9.3 Passbook Savings and Demand Deposits: Collateral or FDIC Insurance 142

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is required for Certificates of Deposit.

4.8 4.10 Safekeeping & Custody: All security transactions, including collateral for repurchase agreements, certificates of deposit, demand deposits, and time deposits entered into by the City shall be conducted on a delivery-versus- payment (DVP) basis.

Securities will be held by a third- party qualified custodian designated by the City and will be evidenced by safekeeping receipts. Certificates of Deposit will be held in the City's vault. 4.9 4.11 Diversification and Maturity Limitations:

4.9.1 4.11.1 Diversification: It is the policy of the City to diversify its investment portfolio.

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

4.9.1.1 4.11.1.1 Portfolio Diversification: The portfolio will maintain diversification by imposing the following limits, at time of purchase, on eligible investments:

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

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

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

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

4.9.1.1.1 4.11.1.1.1 US Treasury and Agency securities

4.9.1.1.2 4.11.1.1.2 The City may invest up to 60% in
LAIF and OCIP combined, but not to exceed $ 75 million in LAIF and $15 million in OCIP.

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

4.9.1.2 4.11.1.2 Maturity Diversification: Every effort will be made to match investment maturities to cash flow needs.

Matching maturities with cash flow dates will
reduce the need to sell securities prior to
maturity, thus reducing market risk.

4.9.1.2.1 4.11.1.2.1 Unless matched to a specific
requirement, no more than 50% of the
investment portfolio may be invested with
maturities greater than 2 years.

4.9.1.2.2 4.11.1.2.2Unless matched to a specific
requirement and approved by the City Council,
no investment may be made with a maturity
greater than 5 years.
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4.10 4.12 Marking to Market: The City shall mark investments to market on a monthly basis.

4.11 4.13 Investment Pools: Prior to entering a pool, a pool questionnaire must be completed and kept on file in the City Treasurer's office.

5.0 PROCEDURE:

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

The City will email a link to the Investment Advisory Committee so that they can access the financial audit.

5.2 Performance Standards: The investment portfolio will be designed to align with Section 4.2. obtain an average market rate of return, taking into account the City's investment risk constraints (safety), cash flow needs, and maturities of the investments.

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

The investment portfolio shall be designed to attain a total return commensurate with the risk constraints outlined by the City's Investment Policy. The benchmark for the City's portfolio are:
• BofA Merrill Lynch 1-3 Year US Treasury & Agency
Index (primary)ICE BofA 0-5 Year US Treasury Index
(primary)
• BofA Merrill Lynch AAA-A Corporate & Government
Index (reference)ICE BofA 1-3 Year US Treasury &
Agency Index
It is understood that the portfolio's total return can and will differ from the index through different market cycles as the investment portfolio's priority is to meet the liquidity needs of the City. Nevertheless, it is the intent to use this benchmark as a tool with which to measure the relative risk and return of the portfolio.

5.3 Competitive Bids: A minimum of three bids or quotations will be obtained prior to the completion of secondary investment transactions with authorized financial institutions. This does not apply to authorized investment pools or money market mutual funds.
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5.4 Reporting: The Finance & Administrative Services Director and City Treasurer are charged with the responsibility of distributing a Quarterly Investment Report on investment activity and returns in the City's Quarterly Financial Report. The report will be provided to the City's Investment Advisory Committee and City Council within 30 45 days following the end of the quarter covered by the report. The California Code requires the following components:

5.4.1 Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;

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

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

5.4.4 Monthly transactions for the period; and

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

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

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

5.5.1 Members (Voting):

5.5.1.1 City Treasurer (Chair)

5.5.1.2 Council member representative

5.5.1.3 Two citizen representatives

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

5.5.2 Staff (Non-Voting):

5.5.2.1 Finance & Administrative Services Director or designee (Staff)
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5.5.3 Role:

5.5.3.1 To review and recommend City investment policies.

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

5.5.4 Meetings:

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

5.5.5 Reports:

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

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

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

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

6.2 AGENCIES: Federal agency securities.

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

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

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

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

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

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

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

6.10 COMMERCIAL PAPER: An unsecured promissory note with a fixed maturity of no more than 270 days. Commercial paper is normally sold at a discount from face value.
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6.11 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR}: The
official annual report for the City of San Clemente. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance- related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

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

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

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

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

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

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

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

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

6.20 FEDERAL CREDIT AGENCIES: Agencies of the Federal government set 149

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up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.

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

6.22 FINRA: Financial Industry Regulation Authority

6.23 FORM 10-K: an SEC form, filed annually as required by the U.S. Securities and Exchange Commission, that gives a comprehensive summary of a company's financial performance.

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

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

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

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

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

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

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

6.0 6.30 MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyerlender to liquidate the underlying securities in the event of default by the seller-borrower.

6.1 6.31 MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
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6.2 6.32 MONEY MARKET FUND: Mutual fund that invests solely in money market instruments.

6.3 6.33 MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

6.4 6.34 MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.

6.5 6.35 NATIONALLY RECOGNIZED STATISTICAL RATING

ORGANIZATION
(NRSRO): is a credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission permits other financial firms to use for certain regulatory purposes.

6.6 6.36 NEGOTIABLE CERTIFICATE OF DEPOSIT (NCO): A short-term debt
instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

6.7 6.37 ORANGE COUNTY INVESTMENT POOL (OCIP): The OCIP is a pooled fund managed by the Orange County Treasurer pursuant to California Government Code sections 53601 and 53635. It is considered a very safe, liquid investment pool, investing in short- term, high- quality securities.

6.8 6.38 PAR VALUE: the value printed on a security such as a share certificate or bond at the time of issue.

6.9 6.39 PORTFOLIO: Collection of securities held by an investor.

6.10 6.40 PRIMARY BANK: The bank utilized by the City for it's main banking activities including daily cash and ACH transactions, direct deposit, check processing, trust services, etc.

6.11 6.41 PRIMARY DEALER: A group of government securities dealers that submit
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daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

6.12 6.42 QUALIFIED BIDDER: Those broker/dealers that are deemed by the Assistant City Manager or City Treasurer, as applicable, to be qualified to bid on City investments. Specific qualifications of the financial institution or dealer are contained in the City's Broker/Dealer Questionnaire and Certification.

6.13 6.43 RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

6.14 6.44 REDEMPTION VALUE: The price at which the issuing company may choose to repurchase a security before its maturity date.

6.15 6.45 REPURCHASE AGREEMENT: A purchase of securities by the City pursuant to an agreement by which the seller will repurchase the securities on or before a specified date, and for a specified amount and will deliver the underlying securities to the City by book entry, physical delivery, or a third-party custodial agreement.

6.16 6.46 SAFEKEEPING: Storage and protection of a customer's financial assets, valuables, or documents, provided as a service by an institution serving as agent and, where control is delegated by the customer, also as custodian.

6.17 6.47 SURPLUS FUNDS: Those funds that are available for investment and are not anticipated to be needed for City operations for the next six (6) months.

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

6.19 6.48 TOTAL RETURN: The sum of all investment income plus all changes in the capital value of the portfolio.

6.20 6.49 TREASURY BILLS: A non-interest bearing discount security issued by the
U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

6.21 6.50 TREASURY BOND: Long-term U. S. Treasury securities having initial maturities of more than ten years.
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6.22 6.51 TREASURY NOTES: Intermediate term coupon bearing U. S.

Treasury securities having initial maturities of from one to ten years.

6.23 6.52 UNDERCAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC's amended assessment regulation. Neither Well Capitalized nor Adequately Capitalized.

6.24 6.53 UNQUALIFIED OPINION: An independent external auditor report that concludes the company's financial statements present fairly, or give a true and fair view, in all material respects and in accordance with applicable accounting standards.!

6.25 6.54 WELL CAPITALIZED: Capital group assignments are made in accordance with section 327.3(e)(1)(1) of the FDIC's amended assessment regulation. Total Risk-Based Capital Ratio equal to or greater than 10 percent, and Tier I Risk-Based Capital Ratio equal to or greater than 6 percent, and Tier I Leverage Capital Ratio equal to or greater than 5 percent.

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

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

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

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

Section 4.10.1.2.1 - Chandler will maintain an allocation of at least 25% to securities that mature less than 2 years. Inclusive of the Chandler portfolio and the City's internally managed portfolio's allocation to liquidity vehicles and shorter maturity securities, the entire portfolio will maintain 50% of its securities maturing in less than 2 years.
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• Although the investment policy states the benchmark for the City's entire portfolio is the ICE Bank of America Merrill Lynch 1-3 Year US Treasury and Agency Index, starting October 1, 2019 the Chandler managed portfolio will use the ICE Bank of America Merrill Lynch 0-5 Year US Treasury Index to compare both portfolio performance and characteristics. • Starting October 1, 2019, the City's internally managed portfolio will use the ICE Bank of America Merrill Lynch US 1-Year Treasury Bill to compare both portfolio performance and characteristics.

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

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

This directive is in effect as of November 4, 2019 and will remain in effect until it is replaced by a revised directive.
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CALIFORNIA GOVERNMENT CODE
California Government Code
Sections 16429.1, 53600-53610, 53630
(a) There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund.
(b) Notwithstanding any other law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(c) Notwithstanding any other law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi-governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.
(d) Notwithstanding any other law or provision of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds. (e) The local governmental unit, the nonprofit corporation, or the quasi-governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer.
(f) The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer.
(g) The Local Investment Advisory Board shall determine those quasi-governmental agencies which qualify to participate in the Local Agency Investment Fund. (h) The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state's portfolio. (i) The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the Surplus Money Investment Fund as provided in Article 4 (commencing with 155

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Section 16470) of Chapter 3.
(jU) Money in the fund shall be invested to achieve the objective of the fund which is to realize the maximum return consistent with safe and prudent treasury management. (k) All instruments of title of all investments of the fund shall remain in the Treasurer's vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank.
(I) Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi-governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of 5 percent of the earnings of this fund and not to exceed the amount appropriated in the annual Budget Act for this function, shall be deducted from the earnings prior to distribution. However, if the 13-week Daily Treasury Bill Rate, as published by the United States Department of the Treasury on the last day of the state's fiscal year is below 1 percent, then the above-noted reasonable costs shall not exceed a maximum of 8 percent of the earnings of this fund for the subsequent fiscal year, shall not exceed the amount appropriated in the annual Budget Act for this function, and shall be deducted from the earnings prior to distribution. The amount of the deduction shall be credited as reimbursements to the state agencies, including the Treasurer, the Controller, and the Department of Finance, having incurred costs in carrying out the provisions of this section. (m) The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month.
(n) As used in this section, "local agency," "local governmental unit," and "local governmental official" includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721, 89722, and 89725 of the Education Code.
53600. As used in this article, "local agency" means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.
53600.3. Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When 156

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investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

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

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

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

For purposes of this section, "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:
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(a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
(d) Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. (e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises. (g) Bankers' acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers' acceptances shall not exceed 180 days' maturity or 40 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank pursuant to this section.

This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code). (h) Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. 158
(B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B8) Has program wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635.
(i) Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or statelicensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decision making authority in the administrative office manager's office, budget office, auditor-controller's office, or treasurer's office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.

DU) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section.
(2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year.

The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. (3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
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(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale.
(B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio.
(C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
(4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state- chartered bank that has or has had a significant banking relationship with a local agency.
(B) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank:
(i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities.
(iii) Acceptance of a local agency's securities or funds as deposits. (5) (A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third- party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book-entry account may be used for book-entry delivery.
(B) "Securities," for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. (D) ) "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the 160 collateral.
(E) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities byway of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.
(G) Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated "A" or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
(H) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily.
(2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(8) (B)Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
(5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency's moneys that may be invested pursuant to this 161
section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1).
(m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.
(n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
(o) A mortgage passthrough security, collateralized mortgage obligation, mortgagebacked or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable- backed bond of a maximum of five years' maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by an NRSRO and rated in a rating category of "AA" or its equivalent or better by an NRSRO. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency's surplus moneys that may be invested pursuant to this section.
(p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions
(a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
(q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and
Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and 162 sale within the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

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

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

Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:
(a) The local agency shall choose a nationally or state chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose. (c) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring both of the following:
(1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable.
(d) The selected depository institution shall serve as a custodian for each such 163
deposit.
(e) On the same date that the local agency's funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b). (f) Notwithstanding subdivisions (a) to (e), inclusive, a credit union shall not act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (g) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (h) The deposits placed pursuant to this section and Section shall not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose.
(i) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds may, at its discretion, invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, provided that the purchases of certificates of deposit pursuant to this section, Section 53635.8, and subdivision (i) of Section 53601 do not, in total, exceed 30 percent of the agency's funds that may be invested for this purpose. The following conditions shall apply:
(a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the "selected" depository institution. (b) The selected depository institution may submit the funds to a private sector entity that assists in the placement of certificates of deposit with one or more commercial banks, savings banks, savings and loan associations, or credit unions 164
that are located in the United States for the local agency's account. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. (c) The selected depository institution shall serve as a custodian for each certificate of deposit that is issued with the placement service for the local agency's account. (d) At the same time the local agency's funds are deposited and the certificates of deposit are issued, the selected depository institution shall receive an amount of deposits from other commercial banks, savings banks, savings and loan associations, or credit unions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution for investment.
(e) Notwithstanding subdivisions (a) to (e), inclusive, no credit union may act as a selected depository institution under this section or Section 53635.8 unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more certificate of deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government.
(f) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (g) This section shall become operative on January 1, 2021. 53602. The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a four- fifths vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. 53603. The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued. 53604. The legislative body may sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased.
53605. From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency.
53606. The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled.

While held uncanceled, the bonds may be resold.
53607. The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a oneyear period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of 165 authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year. 1 53608. The legislative body of a local agency may deposit for safekeeping with a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer. 53609. Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency's employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested in the types of investments set forth in Sections 53601 and 53602 of this code, and may additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property.

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

Deferred compensation funds are public pension or retirement funds for the purposes of Section 17 of Article XVI of the Constitution.
53610. (a) For purposes of this section, "Proposition 1A receivable" means the right to payment of moneys due or to become due to a local agency, pursuant to clause (iii) of subparagraph (8) of paragraph
(1) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the Revenue and Taxation Code.
(b) Notwithstanding any other law, a local agency may purchase, with its revenue, Proposition 1A receivables sold pursuant to Section 53999.
(c) A purchaser of Proposition 1A receivables pursuant to this section shall not offer them for sale pursuant to Section 6588.
53630. As used in this article:
(a) "Local agency" means county, city, city and county, including a chartered city or county, a community college district, or other public agency or corporation in this state. (b) "Treasurer" means treasurer of the local agency.
(c) "Depository" means a state or national bank, savings association or federal 166 association, a state or federal credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited. (d) "Agent of depository" means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657. (e) "Security" means any of the eligible securities or obligations listed in Section 53651. (f) "Pooled securities" means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies. (g) "Administrator" means the Administrator of Local Agency Security of the State of California.
(h) "Savings association or federal association" means a savings association, savings and loan association, or savings bank as defined by Section 5102 of the Financial Code. (i) "Federally insured industrial loan company" means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation.

U)) "Corporation" includes a limited liability company. 53630.1. The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern.
53630.5. (a) The definitions in Section 1750 of, and Chapter 1 (commencing with Section 99) of Division 1 of, the Financial Code apply to this section. (b) In this article, for purposes of being a depository of moneys belonging to or being in the custody of a local agency, the phrases "state or national bank located in this state," "state or national bank," "state or national bank in this state," and "state or national banks in the state" include, without limitation, any of the following:
(1) Any California branch office of a foreign (other state) state bank that the bank is authorized to maintain under the law of its domicile and federal law. (2) Any California branch office of a foreign (other state) national bank that the bank is authorized to maintain under federal law.
(3) Any California branch office of a foreign (other nation) bank that the bank is licensed to maintain under Article 3 (commencing with Section 1800) of Chapter 20 of Division 1.1 of the Financial Code.
(4) Any California federal branch of a foreign (other nation) bank that the bank is authorized to maintain under federal law.
167
Broker/Dealer Questionnaire

CITY OF SAN CLEMENTE, CALIFORNIA

BROKER/DEALERQUESTIONNAIRE
Date:

Firm Name: CRDNumber:

Local office servicing account:

Address:

Phone:

Corporate office:

Address:

Phone:

Primary Representative:

Please attach resumes of primary and secondary representatives covering this account.

Telephone: Fax:

E-Mail:

CRDNumber: Secondary Representative or sales assistant: _ Telephone: Fax:

E-Mail:

CRDNumber:
168

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

Telephone:

Fax:

E-Mail:

CRDNumber:

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

Entity name, contact and phone number.

1. 2.

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

Us Treasuries US Agencies
MBS
CP/BA
Corporate
CD's
Other
169

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

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

Has your firm ever failed to meet the capital adequacy guidelines established by your regulatory organization?
Attach complete delivery instructions. All transactions will be completed delivery versus payment.
170

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

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

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

Qualified Representative(s) of the Firm
Signed: _ Name:

Title:

Date:
171
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: December 9, 2025 Agenda Item: 11G.

Submitted By: Public Works
Prepared By: Niki Beach, Environmental Programs Analyst Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO APPROVE UPDATED POLICY AND PROCEDURE NUMBER 203 ..body-2 FOR ENVIRONMENTAL SUSTAINABILITY GRANT FUNDING Fiscal Impact:

There is no fiscal impact from the proposed minor updates to Policy and Procure No. 203-2, which do not alter how Environmental Sustainability Grants are funded. Funding for the program will continue to be approved by the City Council as part of the budgeting process.

Summary:

The City Council is being asked to consider approval of a Resolution (Attachment 1) to update Policy and Procedure No. 203-2 (Attachment 2) replacing a previous version of Policy and Procedure No. 203-2 (Attachment 3), pertaining to Environmental Sustainability Grant Funding.

Staff is recommending modifications to the policy that would update staff positions to match current position titles; replace the grant award review responsibility of the recently disbanded Coastal Advisory Committee with the Beaches, Parks and Recreation Commission; and reduce the number of funding application cycles from two to one per year. The reduction in funding cycles is intended to better align with the reduction in funding from the Clean Ocean Fund following expiration of the Clean Ocean Fee in 2020, as well as reduced environmental program staffing availability since that time.

Background:

City Policy and Procedure 203-2 for Environmental Sustainability Grant Funding was first authorized by the City Council on September 1, 2009 as a way to streamline small requests from local nonprofit organizations for City support of environmental initiatives (see Attachment 4). The Policy provided an opportunity for local organizations to receive up to $2,000 with a 1:1 funding match per project, following evaluation against specific grant funding criteria by an Environmental Grant Committee (EGC) comprised of one staff person from each of the Water Conservation, Solid Waste and Recycling, and Clean Ocean programs, who are responsible for recommending grant award winners and amounts. The Coastal Advisory Committee was tasked with reviewing and providing feedback on the recommended grant recipient(s) and amount(s), with the City Manager responsible for the final funding decisions.

An update to the Policy was approved by the City Council on April 2, 2013, to clarify the eligibility of ongoing environmental program(s) to be awarded funding repeatedly if the program(s) could be shown to provide a clear benefit to the City of San Clemente, such as with recurring beach cleanups or annual implementation of grade level-specific environmental education curricula. 172
Meeting Date: December 9, 2025 Agenda Item: 11G.

CITY OF SAN CLEMENTE 2
Since the 2013 update to the Policy, the sunset of the Clean Ocean Fee in 2020 has necessitated funding the Environmental Sustainability Grant (ESG) program primarily through the Water Conservation and Solid Waste and Recycling budgets, reducing annual ESG funding from $12,000 to $8,000. This reduction in award capacity combined with rising costs of doing business as well as the increase in regulatory compliance tasks that demand much of the EGC staff’s time, staff believes the ESG will be more cost-effective for both the City and its community organizations going forward if the Committee entertains applications for larger projects (still limited to $2,000 per project with a 1:1 match) only once year, rather than reviewing several smaller applications twice a year. This updated funding cycle, proposed to end on February 28 each year, is reflected in the proposed updated Policy No. 203-2.

The revision will also update the previous title of the Environmental Analyst to the currently named Environmental Programs Analyst, and transfer the responsibility for advisory review of the EGC’s recommendations from the now disbanded Coastal Advisory Committee to the Beaches, Parks and Recreation Commission.

Council Options:
 Adopt Resolution No. 25-193 (Attachment 1), which would authorize the proposed modifications to Policy and Procedure 203-2.
 Adopt Resolution No. 25-193 with modifications.
 Deny the adoption of Resolution No. 25-193 and maintain Policy and Procedure No. 203-2 as currently written.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

Updates to this Policy and Procedure regarding grant funding are not considered a project under the California Environmental Quality Act (CEQA).

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-193, which will approve updates to Policy and Procedure No. 203-2 pertaining to staff titles, the role of advisory committees/commissions, and the frequency of funding.
..end
Attachment:

1. Resolution 25-193

2. Proposed Updated Policy and Procedure 203-2

3. Current Policy and Procedure 203-2

4. Staff Report dated September 1, 2009

5. Staff Report dated April 2, 2013
Notification:

None.
173
Attachment 1
RESOLUTION NO. 25-193

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, UPDATING POLICY AND
PROCEDURE 203-2 REGARDING ENVIRONMENTAL

SUSTAINABILITY GRANT FUNDING
WHEREAS, on September 1, 2009, the City Council approved Policy and Procedure 203-2 (the Policy) pertaining to Environmental Sustainability Grant funding for small community-led projects; and
WHEREAS, an updated Policy was approved by City Council on April 2, 2013 to allow for recurring environmental projects – in addition to one-time projects – to be eligible for funding; and
WHEREAS, there is a need to further streamline the Policy by consolidating the two funding cycles per year into one, and update staff titles and the Environmental Sustainability Grant program’s advisory committee to the Beaches, Parks and Recreation Commission.

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 hereby incorporated fully herein.

SECTION 2. That the City Council approves the updated Policy and Procedure 203- 2 regarding Environmental Sustainability Grant Funding in the form presented to the City Council on December 9, 2025, which shall replace the 2013 iteration of Policy and Procedure 203-2.

SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
174
Resolution No. 25-193 Page 2

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. 25-193 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:

Page 1 ends

POLICY AND PROCEDURE
Subject: Environmental
Sustainability Grant
Funding
Index: Financial Services
Number: 203-2
Effective Date: April 2, 2013December 9,
2025
Prepared By: Engineering
DivisionPublic Works
Department
Supersedes: September 1, 2009April 2,
2013
Approved By:

1.0 PURPOSE:

To provide a uniform process and guidelines for submittal, consideration and approval of requests for funding assistance for water quality, water conservation, recycling and/or other environmental sustainability projects by Non-Profit Organizations serving residents of San Clemente.

2.0 ORGANIZATIONS AFFECTED:

Engineering DivisionPublic Works Department (Environmental Programs Division; Utilities Division – Water Conservation and Solid Waste & Recycling); Utilities Division

3.0 REFERENCES:

Not Applicable.

4.0 POLICY:

The City of San Clemente shall strive to allocate funds annually from the Clean Ocean Fund, Water Conservation Fund, and Solid Waste Fund to support Non-Profit Organizations and public schools in providing water quality, water conservation, and recycling services or outreach to residents of the City of San Clemente. In the case of other environmental sustainability initiatives as defined in this policy, the City will strive to allocate General Funds for these efforts.

Each year in conjunction with the City budget process, the City Council will determine the amount of funds available for Environmental Sustainability grants. Award of grants is subject to available funding. At the end of each Fiscal Year (June 30), all City appropriations cease and any unallocated grant funds will not be carried forward to the next Fiscal Year. An Environmental Grant Committee reviews will review grant requests two timesone time per year in January and JulyMarch and recommends approval or denial of Attachment 2
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funding. With limited exception and on a case case-by by-case basis subject to City Manager approval, grants shall not exceed $2,000.00 or 50% of the total project cost, whichever is less. City staff will strive to notify applicants of their grant request status within two (2) months of the application deadline.

Grants are not intended to provide ongoing funding to well-established programs or services unless a clear benefit to the City of San Clemente and the community would be provided by the proposed activity. Grants are also not intended for any political or religious activity. Any organization that receives grant funding assistance agrees to include a brief statement in any promotional materials to acknowledge the City’s financial contribution toward the project.

5.0 DEFINITIONS:

Beaches, Parks and Recreation Commission – The advisory commission as established and discussed in Chapter 2.28 of the City of San Clemente Municipal Code. Coastal Advisory Committee – The advisory committee as established and discussed in Chapter

2.42 of the City of San Clemente Municipal Code.

Environmental Grant Committee – The City staff committee that provides initial review and recommendation of Environmental/Sustainability grant funding requests submitted to the City. This committee shall consist of the Environmental Programs Analyst (Engineering Division), Water Conservation Analyst (Utilities Division), and Environmental Services Coordinator (Engineering Division), or as otherwise designated by the City Manager.

Environmental Sustainability – Refers to environmentally sustainable initiatives such as:
• Resource Conservation: Decrease consumption of non-renewable, non-recycled materials and pursue and encourage use of renewable resources (e.g. water conservation, solid waste reduction & recycling, solar power, energy savings, recycled water, etc.).
• Environmental and Public Health: Minimize levels of pollutants entering the air, soil, and water from everyday business practices (e.g. water runoff reduction, water quality improvement, etc.).
• Transportation: Encourage and pursue alternative forms of transportation (including pedestrian, bicycle, mass-transit, and fuel-efficient/alternative fuel vehicles). • Community Education and Civic Participation/Public Involvement: Develop related education and outreach programs that are easily accessed by community members, and encourage collaboration and two-way dialogue between City officials, staff, businesses, community groups, and individual residents.

Grant Evaluation Criteria – Criteria used to evaluate grant funding requests will include, but not necessarily be limited to, the following:
• Demonstrated organization competence and ability to provide service or outreach. • Impact of proposed services to effectively meet needs of San Clemente residents. • Relationship of project objectives to water quality, water conservation, recycling or other environmental sustainability concepts.
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Non-Profit Organization – Non-profit organizations recognized by the State to be tax exempt under the Internal Revenue Service Section 501 (c) (3). The organization must have a Charter, Articles of Incorporation, and/or By-laws. No part of its net earnings insure to the benefit of any member, founder, contributor, or individual.

Public School – Those schools of the Capistrano Unified School District that are physically located within the City of San Clemente, including any Parent Teacher Associations (PTAs) and student clubs (with a faculty advisor) that are officially recognized by these schools.

Qualifications for Funding – The Non-Profit Organization must have proof and provide documentation that residents of San Clemente are being served. The organization must have at least one San Clemente resident on its Board of Directors or Advisory Board. The organization must have an affiliation in San Clemente and provide services or outreach to San Clemente residents in the form of mailings, public meetings, attendance at local community events or civic meetings. New organizations must provide a copy of their Articles of Incorporation and By-laws, two letters of reference from an existing local NonProfit Organization and/or government entity knowledgeable of the organization or services they intend to provide.

6.0 PROCEDURE:

6.1 There will be two (2February 28th )will be the annual filing deadline withins each Fiscal Year (July 1 to the following June 30) for consideration of Environmental Sustainability Grant funding requests. The first filing deadline will be June 15, and the second filing deadline will be the following December 15. To be considered for funding, applications must be received in the City Clerk’s office by 5:00 p.m. of the filing deadline. Any applications not received by this deadline will not be considered, and must be resubmitted during another filing period for consideration.

6.2 Grant funding requests must be submitted on the Environmental Sustainability Grant application form (Attachment #1), which is available for printing as well as electronic form submission on the City of San Clemente website at www.san-clemente.org.

6.3 Following the submittal deadlines, the Environmental Grant Committee will review submitted applications against the Grant Evaluation Criteria, seek consensus on proposed funding amounts (if any) for each application, and prepare a report for the next regularly-scheduled meeting of the Coastal Advisory CommitteeBeaches, Parks and Recreation Commission (CACBPR Commission). The report will be included in the agenda packet for the CAC BPR Commission meeting, which is publicly-noticed so that citizens can provide comment and feedback to the CAC.BPR Commission.

6.4 The CAC BPR Commission will consider and discuss the report by the Environmental Grant Committee, and either provide concurrence with the report, or propose its ownits recommendations for approval or denial of funding.

6.5 Following the CAC BPR Commission meeting, the Environmental Grant Committee shall prepare a memo, including the CAC BPR Commission recommendations, for City Manager approval.
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San Clemente City CouncilDecember 9, 2025

San Clemente City Council
December 9, 2025