Agenda packet — San Clemente City Council, March 3, 2026 (part 1 of 2)

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

CITY OF SAN CLEMENTE
Tuesday, March 3, 2026
City Council
Special and 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 Special and Regular Meeting Agenda March 3, 2026 CLOSED SESSION (5:00 P.M. SPECIAL MEETING)
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code section 54957(b)(1)&(4)
Title: City Attorney
BUSINESS MEETING (5:30 P.M. REGULAR MEETING)

CALL TO ORDER
INVOCATION – Andrew Selley, Lead Elder, Joshua Generation Church

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
A. Presentation of Commendation - Sergeant Jared Streeter Presentation of Commendation to Sgt. Streeter in recognition of his dedicated service to the City of San Clemente and congratulating him on his promotion to Lieutenant.

2. Council Member Reports

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

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

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

6. Closed Session Report - City Attorney

7. Staff Communications

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2 City Council Special and Regular Meeting Agenda March 3, 2026

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: CONSIDERATION TO INTRODUCE, AND CONDUCT A

FIRST READING OF AN ORDINANCE TO AMEND VARIOUS PORTIONS OF SAN CLEMENTE MUNICIPAL CODE TITLE 12, TITLE 16, AND TITLE 17,

FOR STREAMLINING AND CLEANUP PURPOSES
Public hearing to consider amendments to the City of San Clemente Municipal Code Title 2, Title 12, and Title 17, to streamline review processes for various types of projects, and be consistent with State Law, and clarify code sections. This includes a reworked Zoning Administrator review process that allows the City Planner to make decisions if a notice of future decision is sent to property owners within 300 feet of a site and there is not a request a hearing.

The City Council will also consider whether the zoning amendments are not a “project” as defined by the State CEQA Guidelines Sections 15378(b)(2) and 15378(b)(5), because the revisions relate to the ongoing administrative or discretionary activities and organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore do not constitute a “project” as defined by the State CEQA Guidelines (Cal.

Code Regs., title 14, § 15000 et seq.).

Recommended Action
Continue the public hearing to the Regular City Council meeting of March 17, 2026.
8B. PUBLIC HEARING - INTRODUCTION (FIRST READING) OF ORDINANCE NO. 1801 ADDING SECTION 12.28.025 TO THE SAN CLEMENTE

MUNICIPAL CODE RELATING TO MUNICIPAL GOLF COURSE TEE TIME

RESERVATIONS
Public hearing to consider the adoption of an ordinance adding Section

12.28.025 to the San Clemente Municipal Code relating to Municipal Golf Course Tee Time Reservations.

Recommended Action
Introduce and conduct a first reading of Ordinance No. 1801 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE ADDING SECTION 12.28.025 TO THE SAN CLEMENTE MUNICIPAL CODE

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3 City Council Special and Regular Meeting Agenda March 3, 2026 RELATING TO MUNICIPAL GOLF COURSE TEE TIME RESERVATIONS.

9. Unfinished Business
None.

10. New Business
10A. CONSIDERATION OF A RESOLUTION TO APPROVE AN IMPLEMENTATION

AGREEMENT FOR THE TRANSFER AND EXCHANGE OF

TRANSPORTATION CORRIDOR AGENCY PROPERTIES AND RELATED

PROPERTY EXCHANGES, EASEMENTS, DEED RESTRICTIONS, AND

CRISTIANITOS BASIN MAINTENANCE OBLIGATIONS, AUTHORIZE THE

CITY MANAGER TO NEGOTIATE, FINALIZE AND EXECUTE ALL RELATED

AGREEMENTS AND FIND THE ACTIONS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Recommended Action
Adopt Resolution No. 26-35, which will:

1. Find the actions categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15325 (Class 25 - Transfers of Ownership of Interests in Land), 15317 (Class 17 - Open Space Contracts or Easements), 15307 (Class 7 - Actions by Regulatory Agencies for Protection of Natural Resources), and 15308 (Class 8 - Actions by Regulatory Agencies for Protection of the Environment) of the CEQA Guidelines (14 CCR §15000 et seq.).

2. Approve the Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente among the City of San Clemente, Talega Associates, LLC, and Talega Maintenance Corporation, including all exhibits thereto.

3. Approve, and authorize the City Manager to execute, Contract No. C26- 18, the Implementation Agreement, by and between the City of San Clemente and Transportation Corridor Agency, Talega Associates, LLC, and Talega Maintenance Corporation, to negotiate, finalize and execute all associated documents necessary to effectuate the transfer, exchanges, easements, maintenance agreement, and recordation of deed restrictions contemplated by the Implementation Agreement.

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4 City Council Special and Regular Meeting Agenda March 3, 2026 10B. INTRODUCTION AND FIRST READING OF AN ORDINANCE ADOPTING THE

CITY SEAL AND CITY LOGO AND ESTABLISHING REGULATIONS WITH

REGARD TO THEIR USAGE
Recommended Action
Introduce and conduct the first reading of Ordinance No. 1802 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADDING CHAPTER 2.58 TO THE CITY OF SAN CLEMENTE

MUNICIPAL CODE RELATING TO THE ADOPTION OF THE OFFICIAL CITY

SEAL AND OFFICIAL CITY LOGO AND ESTABLISHING REGULATIONS WITH REGARD TO THEIR USE.
10C. CITY MANAGER COMPENSATION REVIEW AND CONSIDERATION OF A

RESOLUTION AUTHORIZING A THIRD AMENDMENT TO THE

EMPLOYMENT AGREEMENT WITH CITY MANAGER ANDY HALL

IMPLEMENTING AN EXECUTIVE LEVEL SALARY ADJUSTMENT
Recommended Action
Provide direction to staff, make an oral report summarizing the proposed action, and, if desired, consider adopting Resolution No. 26-37 and the draft Third Amendment to the City Manager’s Employment Agreement and fill in the blanks with respect to any change to the salary of or fringe benefits for the City Manager desired by the City Council effective February 17, 2026.

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
Recommended Action:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF FEBRUARY 17, 2026.

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5 City Council Special and Regular Meeting Agenda March 3, 2026 B. Commission/Committee Minutes
Recommended Action:

Receive and file the following:
(1) COMMUNITY SAFETY AND WELFARE COMMITTEE REGULAR
MEETING MINUTES OF AUGUST 26, 2025.
(2) COMMUNITY SAFETY AND WELFARE COMMITTEE SPECIAL
MEETING MINUTES OF OCTOBER 28, 2025.
(3) GOLF COURSE COMMITTEE ADJOURNED REGULAR MEETING
MINUTES OF NOVEMBER 20, 2025.
(4) BEACHES, PARKS AND RECREATION COMMISSION REGULAR
MEETING MINUTES OF DECEMBER 16, 2025.
(5) COMMUNITY SAFETY AND WELFARE COMMITTEE ADJOURNED
REGULAR MEETING MINUTES OF DECEMBER 16, 2025.
(6) PLANNING COMMISSION REGULAR MEETING MINUTES OF
FEBRUARY 18, 2026.
(7) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF
FEBRUARY 19, 2026.

C. Warrant Register
APPROVE WARRANT NOS.
609783 THROUGH 609915, PAID ON
2-13-26, IN THE AMOUNT OF $2,477,989.53
TOTAL WARRANT REGISTER $2,477,989.53
Payroll Register
None.
11D. ADOPT ORDINANCE NO. 1799 (SECOND READING) AMENDING SECTION

13.01.220 OF THE SAN CLEMENTE MUNICIPAL CODE RELATING TO

WATER RATES
Recommended Action
Adopt Ordinance No. 1799 entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SECTION

13.04.220 OF THE CITY OF SAN CLEMENTE MUNICIPAL CODE RELATING TO WATER RATES.

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6 City Council Special and Regular Meeting Agenda March 3, 2026 11E. ADOPT ORDINANCE NO. 1800 (SECOND READING) TO AMEND SECTION

3.40.030 OF THE SAN CLEMENTE MUNICIPAL CODE TO REVISE THE

DEFINITION OF LOCAL BUSINESS FOR THE LOCAL PREFERENCE

PROGRAM
Recommended Action
Adopt Ordinance No. 1800 entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN
CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER

3.40, SECTION 3.40.030(A) RELATING TO THE DEFINITION OF LOCAL BUSINESS FOR THE LOCAL VENDOR PREFERENCE.
11F. NOTICE OF COMPLETION - FY 2025 AS-NEEDED STREET IMPROVEMENT

PROGRAM
Recommended Action
Adopt Resolution No. 26-38, which will:

1. Accept the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318, from the contractor, Hardy & Harper, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the FY 2025 As-Needed Street Improvement 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, Hardy & Harper, Inc.

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

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7 City Council Special and Regular Meeting Agenda March 3, 2026 11G. CONTRACT AWARD - FY 2026 STREET IMPROVEMENT PROGRAM (PAVEMENT REPAIRS), AND FINDING THE PROJECT CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Recommended Action
Adopt Resolution No. 26-39, which will:
..recommendation

1. Find the FY 2026 Street Improvement Program (Pavement Repairs), CIP Project No. 16318, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award the FY 2026 Street Improvement Program (Pavement Repairs), CIP Project No. 16318, contract to TOWO Enterprise, Inc.

3. Approve, and authorize the City Manager to execute, Contract No. C26- 19, by and between the City of San Clemente and TOWO Enterprise, Inc, providing for the FY 2026 Street Improvement Program (Pavement Repairs), in an amount not to exceed $500,000, in a form substantially similar to Contract No. 26-xx (Attachment 2).

4. Authorize the City Manager to renew the contract for up to three additional one-year terms, and award and execute similar future contracts, provided that they are within the City Council-approved budget for pavement repairs and City policy and ordinances and state law regarding the procurement and public contracting is otherwise followed.

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8 City Council Special and Regular Meeting Agenda March 3, 2026 11H. CONSIDERATION OF A RESOLUTION AWARDING A PURCHASE

AGREEMENT TO ELECTRIC VEHICLE CHOICE UNDER THE COOPERATIVE

SOURCEWELL CONTRACT FOR TWO ALTERNATIVE QUALIFYING

ELECTRIC VEHICLES USING GRANT FUNDS FROM THE CLEAN MOBILITY

OPTIONS (CMO) GRANT VOUCHER PROGRAM, APPROVING AN
EXEMPTION TO THE CITY’S PURCHASING POLICY TO USE A
COOPERATIVE PURCHASE AGREEMENT, APPROPRIATING THE $1.8

MILLION IN GRANT REVENUES, AND FINDING THE PROJECT

STATUTORILY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT UNDER CALIFORNIA PUBLIC RESOURCES CODE §
21080.25
Recommended Action
Adopt Resolution No. 26-40, which will:

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

2. Authorize an exemption to City Purchasing Policy 201-2-1 to allow for utilization of a cooperative purchasing agreement, specifically Sourcewell Contract EV-032824,consistent with Purchasing Policy Section XI.A.1.4.

3. Award a purchase agreement to Electric Vehicle Choice for two Karsan-Damera eJest Mini Buses in the amount of $725,184.

4. Approve, and authorize the City Manager to negotiate and execute, Contract No. C26-20, contract documents consistent with Sourcewell Contract EV-032824, providing for the purchase of two Karsan-Damera eJest Mini Buses from Electric Vehicle Choice, in the amount of $725,184, using funds from the Clean Mobility Options Voucher Pilot Program Grant.

5. Authorize and direct the City Manager to negotiate and execute an amendment to the Clean Mobility Options grant budget and to the Mobility Project Voucher Agreement (Agreement Number MP23W2A-16G) to reflect the final cost of the purchased vehicles.

6. Authorize related supplemental appropriations from the General Fund revenue account 001-000-33490 and expense account 001-808-45600 to receive all Voucher Pilot Program funds in the amount of $1.8 million, a portion of which will be used to fund the purchase of these two electric vehicles.

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9 City Council Special and Regular Meeting Agenda March 3, 2026 11I. CONSIDERATION OF A RESOLUTION AWARDING A PROFESSIONAL

CONSULTANT SERVICES AGREEMENT TO HOUT CONSTRUCTION
SERVICES, INC., FOR CONSTRUCTION MANAGEMENT AND INSPECTION

SERVICES FOR THE CALLE FRONTERA LIFT STATION SOIL
STABILIZATION, CIP PROJECT NO. 32201, AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENT IN AN AMOUNT NOT TO
EXCEED $109,200
Recommended Action
After consideration of available options, the City Council will need to determine if awarding a Professional Services Agreement to HCS is in the best interest of the City and in particular, the wastewater (sewer) system. If the City Council chooses to approve a Professional Services Agreement, adopt Resolution No. 26-41, which will:

1. Award a Professional Services Agreement to Hout Construction Services, Inc., for construction management and inspection services for the Calle Frontera Lift Station, CIP Project No. 32201.

2. Approve, and authorize the City Manager to execute, Contract No. C26- 21, by and between the City of San Clemente and Hout Construction Services, Inc., providing for the Calle Frontera Lift Station, in an amount not to exceed $109,200, in a form substantially similar to Contract No.

C26-21 (Attachment 2).
11J. CONSIDERATION OF A RESOLUTION TO APPROVE AN AMENDED AND

RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) STORMWATER PERMIT IMPLEMENTATION AGREEMENT
Recommended Action
Adopt Resolution No. 26-42, entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING AN

AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE

ELIMINATION SYSTEM (NPDES) STORMWATER PERMIT
IMPLEMENTATION AGREEMENT.

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10 City Council Special and Regular Meeting Agenda March 3, 2026 11K. FEE WAIVER REQUEST - ORANGE COUNTY REGISTRAR OF VOTERS JUNE 2026 PRIMARY ELECTION VOTE CENTER
Recommended Action

1. Adopt Resolution No. 26-43 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING A $37,800 FEE WAIVER FOR THE REGISTRAR OF VOTERS TO USE

THE SAN CLEMENTE COMMUNITY CENTER AND SAN CLEMENTE
AQUATICS CENTER AS VOTE CENTER LOCATIONS FOR THE JUNE 2, 2026 PRIMARY ELECTION.

2. Adopt Resolution No. 26-44 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING

A FEE WAIVER FOR THE REGISTRAR OF VOTERS TO USE THE SAN

CLEMENTE COMMUNITY CENTER AND SAN CLEMENTE AQUATICS

CENTER AS VOTE CENTER LOCATIONS FOR ALL COUNTY AND
STATEWIDE ELECTIONS.
11L. CONSIDERATION OF A RESOLUTION APPROVING LICENSE

AGREEMENTS FOR THREE BALLOT DROP BOXES IN THE CITY AND

AUTHORIZING THE CITY MANAGER TO ENTER INTO SIMILAR

AGREEMENTS
Recommended Action
Adopt Resolution No. 26-45, which will:

1. Approve, and authorize the City Manager to execute, Contract C19-90, by and between the City of San Clemente and the County of Orange, providing for the placement of ballot drop boxes at the Municipal Golf Course parking lot, for a five-year period.

2. Approve, and authorize the City Manager to execute, Contract C19-91, by and between the City of San Clemente and the County of Orange, providing for the placement of ballot drop boxes at the Jim Johnson Memorial Sports Park, for a five-year period.

3. Approve, and authorize the City Manager to execute, Contract C19-92, by and between the City of San Clemente and the County of Orange, providing for the placement of ballot drop boxes at the City Hall, for a five-year period.

4. Authorize the City Manager, in his discretion, to enter into similar license agreements for ballot drop boxes with the County of Orange in the future.

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11 City Council Special and Regular Meeting Agenda March 3, 2026 11M. CONSIDERATION OF A RESOLUTION ADOPTING A REVISED SALARY

SCHEDULE, APPROVING MODIFICATIONS TO EXISTING

CLASSIFICATIONS AND CREATING NEW CLASSIFICATIONS TO BETTER

ALIGN STAFFING RESOURCES WITH CITY SERVICE NEEDS
Recommended Action
Adopt Resolution No. 26-46 entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ADOPTING A REVISED

SALARY SCHEDULE, APPROVING NEW CLASSIFICATIONS, UPDATING EXISTING CLASSIFICATIONS, AND AMENDING RESOLUTION NO. 25-73 AND ANY OTHER RESOLUTIONS IN CONFLICT THEREWITH.

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 March 17, 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.

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12 City Council Special and Regular Meeting Agenda March 3, 2026

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 Special and Regular Meeting Agenda March 3, 2026

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: March 3, 2026 Agenda Item: 8A.

Submitted By: Community Development
Prepared By: David Carrillo, Lead Project Planner
Subject:
..titl e
PUBLIC HEARING: CONSIDERATION TO INTRODUCE, AND CONDUCT A FIRST READING

OF AN ORDINANCE TO AMEND VARIOUS PORTIONS OF SAN CLEMENTE MUNICIPAL

CODE TITLE
..body
12, TITLE 16, AND TITLE 17, FOR STREAMLINING AND CLEANUP PURPOSES Fiscal Impact:

No fiscal impact. Staff recommends a continuance of this item.

Summary:

Staff recommends the City Council continue this item to the March 17, 2026 City Council meeting to allow staff to prepare additional information. This item involves City-initiated Municipal Code amendments that act on opportunities to improve the development review process in the Zoning Code, and other Titles of the San Clemente Municipal Code, as part of the City ongoing priority to provide quality customer service. The proposed amendments clean up, clarify, and streamline review processes.

Background:

Additional staff time is requested to finalize amendments to present to the City Council at the March 17, 2026 hearing.

Recommended Actions:

Staff Recommendation
Continue this public hearing to the March 17, 2026 Regular City Council meeting. ..recommendation
..end
Notification:

Public notices for the zoning amendment were distributed and posted per City and State requirements. Public comments have been received and will be provided at the March 17, 2026 City Council meeting.
..recommendation
..end
15 910 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: March 3, 2026 Agenda Item: 8B.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e
PUBLIC HEARING – INTRODUCTION (FIRST READING) OF ORDINANCE NO. 1801 ADDING SECTION 12.28.025 TO THE SAN CLEMENTE MUNICIPAL CODE RELATING TO MUNICIPAL GOLF COURSE TEE TIME RESERVATIONS ..body
Fiscal Impact:

There is no direct fiscal impact associated with the adoption of this ordinance. Codifying these regulations is anticipated to support equitable public access to the Municipal Golf Course and protect existing golf course revenues by discouraging unauthorized commercial activity related to tee time reservations.

Summary:

The City of San Clemente owns and operates the San Clemente Municipal Golf Course for the benefit of the general public. Staff has identified increasing instances of unauthorized third-party activity involving the advertising, brokering, and resale of tee time reservations, as well as the use of automated software tools to obtain reservations in a manner that limits equitable access.

These practices undermine public confidence in the reservation system, reduce availability for residents and lawful users, and allow private parties to commercially exploit access to City facilities. The proposed ordinance establishes clear Municipal Code provisions defining tee time reservations as revocable licenses, prohibiting unauthorized commercial activity and automated booking practices, and providing enforcement authority to protect fair public access to City recreational facilities.

The City manages tee time reservations through operational rules, policies, and fee schedules adopted under Title 12 of the San Clemente Municipal Code. Tee time reservations represent a limited public resource controlled through the City’s reservation systems and issued subject to City rules. While the City retains authority to regulate access to its municipal facilities, staff recommends codifying activity-specific standards within the Municipal Code to provide clarity, consistency, and stronger enforcement tools.

Background:

The proposed ordinance would add Section 12.28.025 to the San Clemente Municipal Code to establish clear standards governing municipal golf course tee time reservations. The ordinance defines tee times as revocable, non-transferable licenses issued by the City and clarifies that such reservations do not constitute property rights or transferable interests. It prohibits unauthorized commercial activity related to tee times, including resale, brokering, advertising, or the acceptance of compensation in connection with securing a reservation without prior written City authorization. The ordinance also prohibits the use of automated means, such as bots or 16 Meeting Date: March 3, 2026 Agenda Item: 8B.

CITY OF SAN CLEMENTE 2
scripts, to access or obtain tee time reservations in a manner that circumvents City reservation controls.

The proposed ordinance further establishes enforcement authority allowing the City to void or cancel tee times obtained in violation of the Municipal Code, pursue administrative, civil, and criminal remedies, and suspend or restrict reservation privileges when violations occur. These provisions are intended to protect equitable public access to municipal recreational facilities, preserve public confidence in the City’s reservation systems, and prevent unauthorized private profiteering from City-controlled resources. The ordinance is narrowly tailored to regulate conduct rather than speech and provides a clear code-based framework to support consistent enforcement while preserving lawful access for the general public.

Council Options:
 Introduce and conduct a first reading of Ordinance No. 1801 adding Section 12.28.025 to the San Clemente Municipal Code regulating municipal golf course tee time reservations.  Modify the Ordinance and adopt as amended.
 Continue the item with direction to staff to provide additional information.  Take no action.

Environmental Review/Analysis:

The proposed ordinance is not a “project” under CEQA Guidelines Section 15378 because it does not involve construction or any activity that could result in a physical change to the environment.

Recommended Actions:
..recommendation

1. Conduct a public hearing; and

2. Introduce and conduct a first reading of Ordinance No. 1801, adding Section 12.28.025 to the San Clemente Municipal Code regulating municipal golf course tee time reservations. ..end
Attachment:

1. Ordinance No. 1801
Notification:

Dave Cook Pro Shop
Municipal Golf Course Member Cardholders
17 Attachment 1
ORDINANCE NO. 1801

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SAN CLEMENTE ADDING SECTION 12.28.025 TO THE

SAN CLEMENTE MUNICIPAL CODE RELATING TO

MUNICIPAL GOLF COURSE TEE TIME RESERVATIONS
WHEREAS, Article XI, Section 7 of the California Constitution authorizes the City of San Clemente (“City”) to enact and enforce ordinances that regulate conditions which may be public nuisances or health hazards, or promote social, economic or aesthetic considerations, the City Council finds that adoption of this Ordinance is necessary to promote the health, safety, welfare, and recreational opportunities of the community; and WHEREAS, the City owns, operates, and maintains municipal golf courses and related recreational facilities for the benefit of the general public; and WHEREAS, the City Council has a legitimate and substantial interest in ensuring that access to City recreational facilities is fair, transparent, and consistent with Cityadopted policies and fee schedules; and WHEREAS, tee time reservations at City-operated golf courses are a limited and finite public resource, the availability of which is controlled by the City through reservation systems and operational rules; and
WHEREAS, the City issues tee time reservations as revocable, non-transferable licenses to access City property, and such reservations do not constitute property rights or transferable interests; and
WHEREAS, the City Council has become aware that certain third parties have, without City approval, advertised, offered, brokered, or resold tee time reservations for City golf courses for private profit, including through online platforms and other commercial means; and
WHEREAS, the City Council further finds that some third parties use automated software, scripts, bots, or similar technological means to acquire tee time reservations in a manner that circumvents City reservation controls and restricts public access; and WHEREAS, such unauthorized commercial activity interferes with the City’s ability to manage its facilities, undermines public confidence in City reservation systems, limits access for residents and lawful users, and allows private parties to profit from Citycontrolled resources without authorization; and WHEREAS, while the City currently regulates tee time reservations through operating resolutions, course rules, and administrative policies adopted under Title 12 of the San Clemente Municipal Code, those provisions do not expressly prohibit third-party resale, brokering, advertising, or automated acquisition of tee times; and 18 Ordinance No.1801 Page 2
WHEREAS, the City Council finds it necessary and appropriate to codify clear standards of conduct relating to municipal golf course tee time reservations in order to provide effective enforcement authority and protect the public interest; and WHEREAS, this Ordinance is intended to regulate conduct, not speech, and is narrowly tailored to prevent unauthorized commercial exploitation of City recreational facilities while preserving lawful access for the general public.

NOW, THEREFORE, the City Council of the City of San Clemente, California, hereby ordains as follows:

SECTION 1. The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. San Clemente Municipal Code Chapter 12.28 is hereby amended to add Section 12.28.025, to read as follows:

Section 12.28.025, Municipal Golf Course Tee Time Reservations A. Definitions
For purposes of this Section, the following definitions shall apply:
“Automated Means” includes, but is not limited to, bots, scripts, software programs, automated purchasing tools, scraping tools, or any technological process designed to obtain reservations faster or in greater volume than a human user. “City Golf Course” means any golf course owned, operated, or managed by the City of San Clemente, including all related facilities. “Commercial Activity” means advertising, offering for sale, selling, reselling, brokering, soliciting, or receiving compensation or anything of value in exchange for a tee time.
“Reservation Holder” means the individual in whose name a tee time is issued. “Tee Time” means a reservation, booking, or scheduled time issued by or on behalf of the City granting limited permission to access a City golf course for play. “Third Party” means any person or entity other than the Reservation Holder or the City.

B. Tee Times Revocable
All Tee Times for a City Golf Course are revocable licenses issued subject to City rules and policies, and shall not be sold, assigned, transferred, or used for any Commercial Activity unless expressly authorized in advance in writing by the City.

C. Prohibited Conduct
It shall be unlawful for any person or entity to:

1. Advertise, offer, sell, resell, broker, solicit, or attempt to sell a Tee Time for a City Golf Course without prior written authorization from the City;

2. Acquire or attempt to acquire Tee Times for the purpose of resale or Commercial Activity;
19 Ordinance No.1801 Page 3

3. Use automated means to access, reserve, block, or secure Tee Times;

4. Advertise or represent, expressly or impliedly, that a person or entity is authorized to sell or secure Tee Times on behalf of the City when no such authorization exists;

5. Accept compensation or anything of value in connection with securing or attempting to secure a Tee Time for another person.

D. Enforcement and Remedies

1. Any violation of this Chapter constitutes a public nuisance and may be enforced by any lawful means, including administrative citation, civil action, and/or injunctive relief.

2. A violation of this Chapter is a misdemeanor punishable pursuant to

1.16.010 of this Code.

3. The City may void or cancel any Tee Time obtained or used in violation of this Chapter without refund.

4. Each day a violation continues shall constitute a separate and distinct violation.

5. In addition to any other remedy, the City may seek disgorgement of unlawfully obtained proceeds, and recovery of enforcement costs and attorney’s fees as authorized by this Code.

6. In addition to any other remedy, the City may suspend, restrict, or revoke a person’s ability to reserve or use City Golf Course facilities, including disabling online reservation access, for a period of time deemed appropriate by the City, where the City determines that such person has violated this Chapter or has knowingly obtained or used a tee time secured in violation of this Chapter.

E. No Limitation on Other Authority
Nothing in this Section shall be construed to limit the City’s authority to enforce other provisions of this Code, deny or revoke access privileges, require compliance with Title 5 (Business Licenses), or pursue remedies under applicable state or federal law.

SECTION 3. Effective Date. This Ordinance shall take effect thirty (30) days following its adoption.

SECTION 4. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within fifteen (15) days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code section 36933.

SECTION 5. Records. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings 20 Ordinance No.1801 Page 4
and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.

SECTION 6. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this ordinance are severable. The City Council declares that it would have adopted this ordinance irrespective of the invalidity of any portion thereof.

APPROVED AND ADOPTED this ______ day of _____________, 2026.

ATTEST:
______________________________ ______________________________ City Clerk of the City of Rick Loeffler, Mayor of the City of San Clemente, California San Clemente, California
21 Ordinance No.1801 Page 5

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1801 having been regularly introduced at the meeting of _________, 2026, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the ______ day of _________________, 2026, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this ______ day of ______________, ______. _____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_________________________________
Elizabeth A. Mitchell, City Attorney
22 910 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: March 3, 2026 Agenda Item: 10A.

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

CONSIDERATION OF A RESOLUTION TO APPROVE AN IMPLEMENTATION AGREEMENT

FOR THE TRANSFER AND EXCHANGE OF TRANSPORTATION CORRIDOR AGENCY

PROPERTIES AND RELATED PROPERTY EXCHANGES, EASEMENTS, DEED

RESTRICTIONS, AND CRISTIANITOS BASIN MAINTENANCE OBLIGATIONS, AUTHORIZE

THE CITY MANAGER TO NEGOTIATE, FINALIZE AND EXECUTE ALL RELATED

AGREEMENTS AND FIND THE ACTIONS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body
Fiscal Impact:

The fiscal impact to the City associated with the Implementation Agreement is limited and manageable within existing and anticipated, typical budget allocations. The City’s short-term cost related to corrective work at the Cristianitos Basin is estimated at approximately $2,500 to $3,500 for vegetation management and access-related cleanup. The majority of Basin rehabilitation work will be funded by Talega Associates, LLC (“Talega Associates”) and Talega Maintenance Corporation (“TMC”). The City also anticipates approximately $20,000 in one-time costs associated with land surveying, deed preparation, and related documentation necessary to complete the property transfers and recordation of instruments. Long-term maintenance obligations are expected to be minimal and consistent with existing open space and infrastructure budgeting practices. Routine Basin maintenance will be performed by TMC, and any future structural repairs would be addressed through standard capital maintenance planning processes.

Summary:

The City Council is being asked to approve an Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente (“Implementation Agreement”) among the City of San Clemente (“City”), Talega Associates and TMC. The Implementation Agreement provides a comprehensive framework to facilitate the transfer of former Foothill/Eastern Transportation Corridor Agency (“TCA”) corridor properties located adjacent to the terminus of Avenida Pico (the “Corridor Lands”) to the City and to resolve a series of related property, infrastructure, and stewardship matters. Figure 1, below, provides a map of the Corridor Lands.

The Implementation Agreement is the result of extended negotiations among the City, Talega Associates, TMC, and coordination with TCA. It establishes an integrated set of actions that occur in related phases rather than in isolation. These include the initial transfer of the Corridor Lands from TCA to the City; coordinated exchanges of property between the City, Talega Associates, and TMC to align ownership with functional use; consolidation of ownership of the Cristianitos Basin; formal allocation of short-term corrective work and long-term maintenance responsibilities for that Basin; recordation of permanent conservation covenants and deed restrictions to protect 23 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 2
environmentally sensitive lands; establishment of necessary access and trail easements; and the prohibition of certain incompatible land uses, including battery energy storage systems, on specified parcels.

Figure 1
Collectively, these coordinated phases transition the Corridor Lands from their original designation for potential transportation corridor purposes to more permanent public ownership and stewardship. Upon completion of the Implementation Agreement, the City will control and preserve substantial open space lands, formalize maintenance responsibilities for critical stormwater infrastructure, clarify property boundaries and roadway ownership, and extinguish an outdated Irrevocable Offer of Dedication in favor of a modern, locally governed framework.

The Implementation Agreement reflects a negotiated balance among all parties and provides the mechanism by which the Corridor Lands can be transferred from TCA to the City while 24 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 3
simultaneously resolving long-standing ownership and maintenance issues in a legally enforceable and transparent manner.

Background:

In 2006, as part of the development of the Talega Master Planned Community, certain properties commonly referred to as the “Corridor Lands” were dedicated by Talega Associates (a subsidiary of the original Talega developer) and TMC to TCA through an Irrevocable Offer of Dedication (“IOD”). The purpose of the dedication was to preserve the land for potential future toll road purposes associated with the Foothill South Transportation Corridor. TCA formally accepted the IOD in September 2006.

The IOD described the character of dedication broadly to include transportation corridor purposes, such as highways, bridges, drainage facilities, access rights, and related public infrastructure. Importantly, the IOD also included consent provisions granting Talega Associates and TMC certain rights with respect to the use and future transfers of the Corridor Lands. While the lands were conveyed in fee to TCA, the original offerors retained specific consent protections regarding certain subsequent conveyances.

In the years following acceptance of the IOD, TCA evaluated potential alignments for the Foothill South Transportation Corridor. Ultimately, TCA abandoned pursuit of an alignment that would require use of the Corridor Lands. As a result, the Corridor Lands are no longer needed for transportation purposes by TCA.

Beginning in May 2024, the City entered into discussions with TCA regarding the potential transfer of the Corridor Lands to the City. Because the lands were originally conveyed under the IOD and subject to consent rights, TCA has required written consent from Talega Associates and TMC as a condition of transferring the properties to the City.

Following preliminary discussions with TCA, the City initiated negotiations with Talega Associates and TMC to determine whether a mutually acceptable framework could be developed to allow the transfer to proceed. Those discussions identified several key issues that needed to be resolved before consent would be provided and before the City could prudently accept ownership of the lands. Among these were:
 Clarification and consolidation of ownership of the Cristianitos Basin, which straddles multiple parcels under different ownership;
 Allocation of short-term corrective work and long-term maintenance responsibilities for the Basin;
 Realignment of certain property boundaries to better match functional use, including the Talega Trail and portions of Avenida Pico;
 Establishment of permanent conservation protections on environmentally sensitive lands; and 25 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 4
 Resolution of land use considerations affecting portions of the properties, including ensuring that certain incompatible uses, such as battery energy storage systems, would be permanently prohibited.

As noted above, there exists a water detention basin, the Cristianitos Basin, that is located partially on one of the Corridor Lands, partially on an adjacent property owned by Talega Associates, and partially within the Avenida Pico Right-of-Way controlled by the City. Figure 1, above, shows the location of this basin. According to the development documents for the Talega community, the maintenance responsibility of this basin should be on TMC. However, that responsibility has never been properly transferred to TMC, and the City must address that issue as part of any transfer of ownership to the City. Resolving basin ownership and maintenance responsibilities is a critical objective of the Implementation Agreement.

Since the initial discussions with TCA about the transfer of the Corridor Lands, City staff has worked collaboratively with representatives of Talega Associates and TMC to develop a comprehensive Implementation Agreement that would address each of these issues in an integrated and legally enforceable manner. The objective was not simply to facilitate a transfer of land from TCA to the City, but to resolve longstanding property, maintenance, and stewardship matters in a way that would provide clarity and predictability for all parties. City staff have also maintained ongoing and productive communications with TCA staff to provide updates on the progress of the City’s negotiations with Talega Associates and TMC, and to ensure that the Implementation Agreement properly fulfills the TCA’s required consent from the offerors of the IOD. Figure 2, below, provides a map of the all parcels included in the Implementation Agreement, and their current ownership.

As negotiations progressed, the framework evolved from a conceptual property transfer into a structured, multi-step transaction supported by detailed exhibits. These exhibits define precise property boundaries, outline cost-sharing obligations for near-term basin work, establish a longterm maintenance agreement for the Cristianitos Basin, create conservation covenants running with the land, and specify access easements and use restrictions. The Implementation Agreement therefore serves as the governing document that ties together the initial TCA transfer and all subsequent exchanges and obligations among the City, Talega Associates, and TMC. [Continued on next page]
26 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 5
Figure 2
Discussion:

The Implementation Agreement establishes a structured, multi-step process through which the Corridor Lands will transfer from TCA to the City and, thereafter, be reorganized through coordinated exchanges, easements, maintenance agreements, and permanent conservation restrictions. The Implementation Agreement is intentionally comprehensive. Rather than addressing the TCA transfer in isolation, it resolves related ownership, infrastructure, and stewardship issues in a single integrated framework. The Implementation Agreement, and its associated exhibits, are provided as Attachment 2.

Initial Transfer from TCA to the City
The Implementation Agreement is predicated on approval by the TCA Board of Directors to transfer the Corridor Lands to the City. Those lands are depicted in Exhibit A to the 27 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 6
Implementation Agreement and consist of parcels located both north and south of Avenida Pico, including portions of the Cristianitos Basin.

Upon recordation of the deed transferring the Corridor Lands to the City, the City will become the fee owner of those properties. Figure 3 shows the ownership of the properties included in the Implementation Agreement after this initial transfer of the Corridor Lands to the City. All subsequent obligations described in the Implementation Agreement are contingent upon this initial transfer occurring. If the TCA transfer does not occur within the time period specified in the Implementation Agreement, the remaining provisions become null and void.

Figure 3
The transfer from TCA to the City represents a transition from ownership for potential transportation corridor purposes to ownership for public open space, infrastructure, and environmental stewardship purposes. The City’s acquisition consolidates public control of lands 28 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 7
that are no longer needed for toll road development and allows the City to manage them consistent with local priorities.

Property Exchanges Following City Acquisition
Within a defined period after the City becomes the fee owner of the Corridor Lands, a series of coordinated exchanges will occur between the City, Talega Associates, and TMC. These exchanges are not independent transactions; rather, they are components of a single negotiated framework designed to align ownership boundaries with functional use, resolve split ownership conditions, and clarify long-term responsibilities.

1. Exchange Between the City and TMC
The Implementation Agreement also addresses several narrow parcels currently owned by the City that contain portions of the Talega Trail. These parcels are small in size and primarily function as part of the trail system serving the Talega community. Under the Implementation Agreement, the City will convey three parcels (APNs 701-041-06, 701-041-52, and 701-041- 58) to TMC. In exchange, TMC will convey to the City APN 701-341-02, a parcel underlying a portion of Avenida Pico where the City currently holds only an easement for transportation purposes. Figure 4 shows these property transfers, which are also depicted in Exhibit “D” of the Implementation Agreement.

This exchange aligns fee ownership with functional use. TMC will own the underlying property beneath the portions of the Talega Trail that serve its community, subject to easements retained by the City to preserve public access and potential roadway alignment. Conversely, the City will acquire full fee ownership of property underlying Avenida Pico, strengthening the City’s long-term control over public right-of-way infrastructure.

The Implementation Agreement includes detailed easement provisions to ensure that public trail access, roadway alignment areas, and necessary ingress and egress rights are preserved even after the fee ownership transfers occur.
[Continued on next page]
29 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 8
Figure 4

2. Exchange Between the City and Talega Associates
One of the primary objectives of the negotiations was to consolidate ownership of the Cristianitos Basin and surrounding open space. At present, portions of the basin lie on separate parcels with different ownership histories. Under the Implementation Agreement, Talega Associates will convey to the City APN 701-043-07, which includes approximately onethird of the Cristianitos Basin, along with a portion of APN 701-043-09 located south of Avenida Pico. The precise boundaries of the portion of APN 701-043-09 to be conveyed will be established by metes and bounds and a survey prior to recordation. Figure 5 shows these property transfers from Talega Associates to the City, which are also depicted in Exhibit “B” of the Implementation Agreement.
30 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 9
Figure 5
In exchange, the City will convey to Talega Associates approximately 8.46 acres of land located north of Avenida Pico, consisting of a portion of APN 701-041-62 that the City will acquire from TCA as part of the initial transfer. This exchange allows the City to consolidate environmentally sensitive lands and the entirety of the Cristianitos Basin under its ownership while transferring a defined portion of land north of Avenida Pico to Talega Associates. Figure 6 shows this property transfer from the City to Talega Associates, which is also depicted in Exhibit “C” of the Implementation Agreement, and represents the final ownership of property upon completion of the terms of the Implementation Agreement. 31 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 10
Figure 6
Importantly, the Implementation Agreement does not grant any entitlement or land use approval on the property conveyed to Talega Associates. While the deed restriction recorded against that parcel will prohibit certain uses, including battery energy storage systems and other non-open space uses (except housing), any future development would require a separate and discretionary public process, including any necessary amendments to the Zoning Ordinance. Nothing in the Implementation Agreement guarantees that such actions will occur.

Through this exchange, the City gains unified ownership of the Basin and additional open space south of Avenida Pico, while Talega Associates obtains land north of Avenida Pico that is more logically situated for any potential future consideration of development, subject to all applicable laws and approvals.
32 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 11
Cristianitos Basin – Short-Term Corrective Work
A central issue addressed during negotiations was the condition and maintenance status of the Cristianitos Basin. Historically, maintenance responsibilities were contemplated but not clearly documented in a formal agreement between the City and TMC. Additionally, certain corrective actions are currently required to restore and maintain the Basin in accordance with its design and the Talega Basin Maintenance Manual.

Exhibit “E” to the Implementation Agreement identifies the specific short-term maintenance and rehabilitation tasks that must be completed following the City’s acquisition of the Basin parcels.

These tasks include vegetation management along access routes and outlet structures, sediment removal at the low-flow outlet, inspection and rehabilitation of water quality and flood control outlet components as needed, selective vegetation removal to eliminate accumulated debris, and biological monitoring to protect sensitive species during the work.

The cost allocation for this corrective work reflects the negotiated balance among the parties.

TMC and Talega Associates will fund the majority of the Basin-related tasks, with Talega Associates responsible for two-thirds of shared costs and TMC responsible for one-third. TMC will oversee and execute the work, either directly or through qualified contractors. The City’s financial contribution is limited to preliminary vegetation management along the access road leading to the Basin, where the City holds an easement. The City’s anticipated cost for its portion of this work is approximately $2,500 to $3,500.

Completion of these corrective tasks is a prerequisite to finalizing the long-term maintenance framework described below.

Long-Term Maintenance of the Cristianitos Basin
Following completion and verification of the short-term corrective work, the City and TMC will enter into a separate Cristianitos Basin Maintenance Responsibilities Agreement, attached as Exhibit “F” to the Implementation Agreement.

Under that agreement, TMC assumes responsibility in perpetuity for routine, operational, and non-structural maintenance of the Basin. The anticipated annual cost of the Basin’s maintenance is between $4000 and $6000. This includes vegetation management, debris removal, sediment monitoring and removal consistent with the Maintenance Manual, maintenance of access routes and non-structural components, inspections, and storm-related cleanup costs up to a defined annual threshold.

The City, in turn, assumes responsibility for structural components of the Basin, including embankments, outlet works, hydraulic structures, and any structural failures or capital replacements. The City will also reimburse TMC for extraordinary storm-related cleanup costs exceeding $10,000 in any calendar year, adjusted annually by the applicable Consumer Price Index.

The Implementation Agreement further provides that if the Basin is ever modified to serve a broader regional function beyond the Talega Master Planned Community, TMC’s maintenance obligations will be equitably adjusted to reflect the proportional benefit received by TMC-served properties. This ensures long-term fairness should the Basin’s function evolve in the future. 33 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 12
By formalizing these responsibilities in a recorded agreement running with the land, the City and TMC resolve a longstanding ambiguity and provide predictability for future governance and budgeting.

Conservation Covenants and Land Use Restrictions
To ensure long-term environmental protection, the Implementation Agreement requires the recordation of deed restrictions and conservation covenants on specified parcels. Exhibit “H” of the Implementation Agreement contains the form of the Deed Restriction and Conservation Covenant that will be recorded against the parcels conveyed to the City from Talega Associates.

These restrictions permanently preserve the natural habitat, biological resources, and scenic open space values of the subject properties. Permitted activities are limited to passive open space uses, ecological restoration, wildfire mitigation, biological monitoring, and maintenance of existing trails and drainage facilities. Prohibited uses include residential, commercial, or industrial development, grading, extraction activities, and any activity that would materially impair habitat values, except as necessary for wildfire prevention or ecological management.

In addition, the parcel conveyed by the City to Talega Associates north of Avenida Pico will be subject to a recorded deed restriction prohibiting the use of that parcel for battery energy storage systems or other non-open space uses, except that housing is not prohibited by the deed restriction. As previously noted, any future development proposal would require independent discretionary approvals.

Collectively, these restrictions ensure that substantial portions of the Corridor Lands will remain permanently protected as open space and habitat areas.

Written Consents and Extinguishment of the IOD
Because the original IOD included consent provisions, the Implementation Agreement incorporates formal written consent documents, attached as Exhibit “G.” Talega Associates and TMC have agreed to execute these consents contemporaneously with approval of the Implementation Agreement.

Execution of the Implementation Agreement and the written consents satisfies the consent requirements of the IOD and allows TCA to transfer the Corridor Lands to the City once approved by the TCA Board of Directors. Upon completion of the transfers and recordation of the necessary instruments, the IOD will be extinguished and removed from the chain of title as provided in the Implementation Agreement.

This final step removes an outdated encumbrance from the properties and replaces it with a modern, locally governed framework for ownership, maintenance, and conservation.

Surplus Land Act Compliance:

The California Surplus Land Act (Government Code §54220 et seq.) establishes a statewide framework governing the disposition of publicly owned land that is no longer needed for agency purposes. The Act reflects a legislative priority to promote affordable housing development and maximize the use of public land for housing, parks, and open space before such land is sold or leased for other purposes. Under the Act, when a local agency determines that property it owns is 34 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 13
“surplus land,” it must follow prescribed procedures before transferring that property, including issuing a Notice of Availability to affordable housing developers and certain public agencies and entering into good faith negotiations for affordable housing if interest is expressed, unless such transfers are exempt from this requirement.

The California Department of Housing and Community Development (HCD) adopted updated Surplus Land Act Guidelines effective August 1, 2024, which further clarify definitions, procedures, and exemptions. These Guidelines must be considered whenever a public agency disposes of real property to ensure compliance with state housing law.

The present transaction requires analysis under the Surplus Land Act because it involves the transfer and exchange of real property interests between public and private entities. Specifically, TCA proposes to transfer former corridor lands to the City, after which the City will implement coordinated exchanges of certain portions of that, and other, properties with Talega Associates and TMC. Because these actions involve the disposition of publicly owned land, the City must evaluate whether the Surplus Land Act applies and, if so, whether the transaction qualifies for any statutory exemptions.

With respect to the initial transfer from TCA to the City, the Surplus Land Act does not require the issuance of a Notice of Availability or compliance with the affordable housing negotiation procedures. Government Code §54221(f)(1)(C) provides that surplus land does not include land that is transferred between public agencies for agency use. The Updated Guidelines further clarify that “agency use” includes land that will be used by the acquiring public agency for public facilities, infrastructure, open space, environmental mitigation, or other governmental purposes consistent with the agency’s authority. In this case, the corridor lands are being transferred from one public agency (TCA) to another (the City) for continued public purposes, including open space preservation, habitat conservation, flood control infrastructure associated with the Cristianitos Basin, trail access, and potential future roadway alignment. The City’s acquisition is therefore for agency use and qualifies for the statutory exemption.

Following the City’s acquisition of the corridor lands, the Implementation Agreement provides for certain exchanges of property between the City, Talega Associates, and TMC. These subsequent exchanges must also be evaluated under the Surplus Land Act. The exchanges are structured to realign property ownership with existing and intended public uses, consolidate open space under City ownership, clarify roadway ownership along Avenida Pico, and formalize maintenance responsibilities for the Cristianitos Basin. The portion of land conveyed by the City to Talega Associates is subject to a recorded deed restriction that prohibits its use for battery energy storage systems or other non-open space uses, except that housing is not prohibited by the deed restriction. Importantly, the Implementation Agreement does not grant any entitlement for housing, does not rezone the property, and does not approve development. Any future development proposal would require a separate discretionary process and independent compliance with all applicable state housing laws at that time.

Under Government Code §54221(f)(1)(A) and related provisions of the updated Guidelines, land that is exchanged for property necessary for agency use may qualify as exempt from the Notice of Availability requirements where the exchange supports a public purpose and does not constitute a disposal for the purpose of private development. Here, the exchanges are integral to 35 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 14
effectuating the City’s acquisition of the corridor lands, consolidating basin ownership, and aligning maintenance and access responsibilities. The transaction, taken as a whole, is designed to secure permanent open space protections, resolve infrastructure obligations, and facilitate long-term public stewardship of environmentally sensitive lands. It is not structured as a disposition of surplus land for immediate private development.

Additionally, the Implementation Agreement includes permanent conservation covenants on parcels conveyed to the City, ensuring that substantial portions of the property remain preserved as open space in perpetuity. These conservation protections further reinforce the public purpose of the transaction and its consistency with the objectives of the Surplus Land Act, which expressly encourages the use of surplus public land for parks and open space when affordable housing is not implicated.

Based on the foregoing, the initial transfer from TCA to the City qualifies as an inter-agency transfer for agency use and is exempt from the Surplus Land Act’s Notice of Availability and negotiation requirements. The subsequent property exchanges are ancillary to and necessary for implementation of that public acquisition, and they do not constitute an independent disposal of surplus land for development purposes. Accordingly, the transaction as structured in the Implementation Agreement complies with the Surplus Land Act and the Updated Surplus Land Act Guidelines effective August 1, 2024.

Conclusion:

Talega Associates and TMC have reviewed and approved the Implementation Agreement through their respective governing bodies. The Implementation Agreement includes formal written consent documents that satisfy the consent requirements under the original IOD and allow TCA to proceed with transfer of the Corridor Lands to the City. Their approval reflects the negotiated balance of interests embodied in the Implementation Agreement, including consolidation of open space under City ownership, clarity regarding basin maintenance responsibilities, and alignment of property ownership with existing and future public infrastructure. Specifically, the Implementation Agreement achieves the following:
 Secures permanent City ownership of former corridor lands.  Resolves long-standing Cristianitos Basin maintenance issues.  Clarifies property boundaries and roadway ownership.
 Establishes enforceable conservation protections.
 Minimizes fiscal exposure to the City.
 Complies with the Surplus Land Act.

The Implementation Agreement now before the City Council represents the culmination of those negotiations and establishes the mechanism by which the Corridor Lands can be transferred from TCA to the City and subsequently reorganized to achieve long-term public ownership, environmental stewardship, and infrastructure clarity.
36 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 15
Council Options:
 Adopt Resolution No. 26-35 approving the Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente among the City of San Clemente, Talega Associates, LLC, and TMC, including all exhibits thereto, and authorize the City Manager to execute the Implementation Agreement and negotiate, finalize and execute all associated documents necessary to effectuate the transfer, exchanges, easements, maintenance agreement, and recordation of deed restrictions as set forth in the Implementation Agreement.
 Modify and then adopt Resolution No. 26-35 approving the Implementation Agreement as modified by the City Council. Any substantive modifications to the negotiated terms of the Implementation Agreement would require further review and approval by Talega Associates and TMC, as the Implementation Agreement represents a negotiated and mutually approved framework among the parties. Depending on the nature of the modifications, additional negotiation, revised documentation, and potential reconsideration by the governing bodies of Talega Associates and TMC may be required. Material changes could delay the transfer of the Corridor Lands from TCA or require further coordination with TCA.  Continue the item and direct staff to return with additional information regarding specified aspects of the Implementation Agreement, including but not limited to property boundaries, maintenance obligations, conservation restrictions, or fiscal impacts. Continuation of the item would delay consideration of the Implementation Agreement and may impact the anticipated timeline for TCA Board consideration of the property transfer.  Do not adopt Resolution No. 26-35 and decline to approve the Implementation Agreement. If the Implementation Agreement is not approved, the City would not proceed with the coordinated transfer and exchange framework as currently structured. In that event, TCA would not have the required written consent from Talega Associates and TMC to transfer the Corridor Lands to the City, and the City would not acquire ownership of the Corridor Lands under the negotiated terms. The unresolved issues related to the Cristianitos Basin maintenance framework, property boundary alignment, and long-term conservation protections would remain in their current status unless addressed through a separate process.

Environmental Review/Analysis:

The proposed approval of the Implementation Agreement for the transfer and exchange of the Corridor Lands is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15325 (Class 25 – Transfers of Ownership of Interests in Land), 15317 (Class 17 – Open Space Contracts or Easements), 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources), and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment) of the CEQA Guidelines (14 CCR §15000 et seq.).

The primary action contemplated by the Implementation Agreement is the transfer and exchange of real property interests among public and private entities in a manner that does not result in a change in existing land use, intensity of use, or physical expansion of facilities. The properties that are the subject of the Implementation Agreement are currently maintained as open space, stormwater detention facilities, trail corridors, and roadway infrastructure. The Implementation Agreement formalizes ownership and maintenance responsibilities and imposes conservation 37 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 16
restrictions but does not authorize construction of new development or modification of land uses.

Accordingly, the action falls squarely within CEQA Guidelines Section 15325 (Class 25), which exempts transfers of ownership interests in land where the land use will remain substantially the same and the transfer is to preserve open space or public uses.

Section 15317 (Class 17) further applies because the Implementation Agreement requires the recordation of deed restrictions and conservation covenants that permanently preserve the habitat, biological, and open space values of specified parcels. These restrictions limit the use of the land in perpetuity to conservation-compatible purposes and prevent development that could otherwise degrade environmental resources. The establishment of such open space and conservation protections is expressly exempt under Class 17.

Sections 15307 (Class 7) and 15308 (Class 8) independently apply because the City’s approval of the Implementation Agreement constitutes a regulatory action undertaken to assure the maintenance, restoration, and protection of natural resources and the environment. Through the consolidation of open space ownership, imposition of enforceable conservation covenants, prohibition of incompatible land uses, and formalization of stewardship and maintenance obligations for the Cristianitos Basin, the City is exercising its regulatory authority to protect habitat, water quality infrastructure, and environmentally sensitive lands. These actions are protective in nature and do not authorize environmentally impactful development.

The short-term corrective maintenance activities identified in the Implementation Agreement for the Cristianitos Basin consist of vegetation management, sediment removal, inspection, and rehabilitation of existing outlet structures within an established stormwater detention facility.

These activities occur within the existing basin footprint and are consistent with routine maintenance and continued operation of an existing public facility. The Implementation Agreement does not authorize expansion of the basin, modification of its capacity, or alteration of its function. The corrective work restores the facility to its intended operational condition and does not create new or more severe environmental impacts.

The Implementation Agreement does not approve any rezoning, subdivision, development project, or discretionary entitlement for private construction. Any future proposal to develop or modify any of the subject parcels would require separate discretionary approval and independent environmental review under CEQA at the time such action is considered.

The City has further evaluated whether any of the exceptions to the categorical exemptions set forth in CEQA Guidelines Section 15300.2 apply. The approval of the Implementation Agreement does not involve unusual circumstances that would create a reasonable possibility of a significant environmental effect. The action does not contribute to significant cumulative impacts of successive projects of the same type in the same location, does not affect scenic resources within a designated scenic highway, does not involve a hazardous waste site, and does not result in a substantial adverse change to a historical resource. Therefore, the project is categorically exempt from CEQA.
38 Meeting Date: March 3, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 17
Recommended Actions:

Staff Recommendation ..recommendation
STAFF RECOMMENDS that the City Council adopt Resolution No. 26-35, which will:

1. Find the actions categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15325 (Class 25 – Transfers of Ownership of Interests in Land), 15317 (Class 17 – Open Space Contracts or Easements), 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources), and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment) of the CEQA Guidelines (14 CCR §15000 et seq.);

3. Authorize the City Manager to execute the Implementation Agreement and negotiate, finalize and execute all associated documents necessary to effectuate the transfer, exchanges, easements, maintenance agreement, and recordation of deed restrictions contemplated by the Implementation Agreement.
..end
Attachments:

1. Resolution No. 26-35

2. Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente, including exhibits thereto
Notification:

Talega Associates, LLC
Talega Maintenance Corporation
Foothill/Eastern Transportation Corridor Agency
39 Attachment
1 RESOLUTION NO. 26-35

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING THE

IMPLEMENTATION AGREEMENT FOR THE TRANSFER

OF TRANSPORTATION CORRIDOR AGENCY PROPERTY

IN SAN CLEMENTE, AUTHORIZING THE CITY MANAGER

TO EXECUTE THE AGREEMENT AND NEGOTIATE,

FINALIZE AND EXECUTE ASSOCIATED DOCUMENTS

CONTEMPLATE THEREIN, FINDING THE ACTION

CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
STATE CEQA GUIDELINES §§15307 (CLASS 7: ACTIONS

BY REGULATORY AGENCIES FOR PROTECTION OF
NATURAL RESOURCES), 15308 (CLASS 8: ACTIONS BY

REGULATORY AGENCIES FOR PROTECTION OF THE
ENVIRONMENT), 15317 (CLASS 17: OPEN SPACE
CONTRACTS OR EASEMENTS), AND 15325 (CLASS 25:

TRANSFERS OF OWNERSHIP OF INTERESTS IN LAND),

AND FINDING THE ACTION IN COMPLIANCE WITH THE

CALIFORNIA SURPLUS LAND ACT (GOVERNMENT CODE
§§ 54220-54234)
WHEREAS, Talega Associates, LLC (“Talega Associates”) is the master developer of the Talega Master Planned Community/Specific Plan area within the City of San Clemente (the “Talega Development”); and
WHEREAS, Talega Maintenance Corporation (“TMC”) is the master homeowners’ association for the Talega Development and owns and maintains common area property and facilities serving the Talega community; and
WHEREAS, as a condition of approval of the Talega Development, an Irrevocable Offer of Dedication dated May 9, 2006 (“IOD”) was executed by Talega Associates and TMC in favor of the Foothill/Eastern Transportation Corridor Agency (“TCA”), dedicating certain real property for anticipated transportation corridor purposes; and WHEREAS, FETCA accepted the IOD on September 14, 2006, thereby acquiring fee ownership of approximately 30.59 acres of property commonly referred to as the “Corridor Lands,” located within the City of San Clemente; and WHEREAS, the IOD described the character of dedication of the Corridor Lands as being for public purposes related to the planning, design, construction, maintenance, and use of a toll road or other public thoroughfare and related infrastructure, including roadways, bridges, drainage facilities, and associated improvements; and 40 Resolution No. 26-35 Page 2
WHEREAS, the IOD contains limitations on the sale, lease, assignment, or transfer of the Corridor Lands and provides Talega Associates and TMC with certain consent rights with respect to future transfers of the Corridor Lands; and WHEREAS, TCA has since discontinued pursuit of the Foothill South Transportation Corridor alignment through the Corridor Lands and no longer requires the Corridor Lands for transportation corridor purposes; and WHEREAS, TCA is considering transfer of the Corridor Lands to the City of San Clemente, subject to the consent rights retained by Talega Associates and TMC under the IOD; and
WHEREAS, the City, Talega Associates, and TMC have negotiated an Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente (the “Implementation Agreement”) establishing the terms and conditions under which (i) Talega Associates and TMC will consent to transfer of the Corridor Lands to the City, (ii) the Corridor Lands will be conveyed by TCA to the City (APNs 701-041- 52, 701-041-55, 701-041-59, 701-041-62, and 701-043-08), (iii) specified property exchanges will occur among the parties to align ownership with functional use, (iv) maintenance responsibilities for the Cristianitos Basin will be clarified and formalized, (v) permanent conservation deed restrictions will be recorded on environmentally sensitive parcels, and (vi) the IOD will be extinguished and removed from the chain of title upon satisfaction of the Agreement’s terms; and
WHEREAS, the Implementation Agreement provides for the transfer to the City of APNs 701-043-07 and a portion of APN 701-043-09 from Talega Associates, and the transfer from the City to Talega Associates of a portion of APN 701-041-62, subject to a recorded deed restriction prohibiting certain non-open space uses, including battery energy storage systems; and
WHEREAS, the Implementation Agreement further provides for the exchange of parcels between the City and TMC, including transfer of parcels underlying the Talega Trail to TMC (APNs 701-041-06, 701-041-52, and 701-041-58) and transfer to the City of APN 701-341-02, together with the reservation of specified trail, access, and right-of-way easements to ensure continued public access, roadway connectivity, and infrastructure maintenance; and
WHEREAS, the Implementation Agreement establishes a short-term corrective work program for the Cristianitos Basin and requires execution of a Cristianitos Basin Maintenance Responsibilities Agreement allocating long-term routine maintenance to TMC and structural repair and capital replacement responsibilities to the City; and WHEREAS, the Implementation Agreement requires recordation of conservation covenants and deed restrictions to permanently preserve habitat, biological resources, and open space values on designated parcels conveyed to the City; and 41 Resolution No. 26-35 Page 3
WHEREAS, upon satisfaction of its terms, the Implementation Agreement provides for extinguishment of the recorded IOD, thereby replacing the prior corridor dedication framework with a locally governed structure that permanently preserves open space and clarifies ownership and maintenance obligations; and WHEREAS, pursuant to Government Code Sections 54220 through 54234 and Section 102(a), 102(i)(2)(A), and related provisions of the Final Updated Surplus Land Act Guidelines dated August 1, 2024, the actions contemplated by the Implementation Agreement do not constitute a disposition of surplus land by the City subject to the notice and negotiation requirements of the Surplus Land Act, because the initial conveyance of the Corridor Lands is a transfer from TCA to the City for continued public ownership, and the subsequent property exchanges are integral components of a coordinated public transaction necessary to effectuate open space preservation, infrastructure alignment, stormwater facility maintenance, and recordation of permanent conservation restrictions and public easements, rather than a standalone sale or disposal of surplus City-owned property; therefore, the requirements of the Surplus Land Act are not applicable; and WHEREAS, the City Council finds that approval of the Implementation Agreement is consistent with the City’s General Plan and the Talega Specific Plan and advances long-term public open space preservation, infrastructure management, and responsible land stewardship within the City.

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

SECTION 1. The above recitals are true and correct and incorporated herein fully by reference as findings.

SECTION 2. CEQA Findings. The City Council hereby finds and determines that approval and implementation of the Implementation Agreement are categorically exempt from the California Environmental Quality Act (Public Resources Code §21000 et seq.) pursuant to the CEQA Guidelines (14 CCR §15000 et seq.), including but not limited to Sections 15325 (Class 25 – Transfers of Ownership of Interests in Land), 15317 (Class 17 – Open Space Contracts or Easements), 15307 (Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources), and 15308 (Class 8 – Actions by Regulatory Agencies for Protection of the Environment).

The City Council finds that the Implementation Agreement primarily involves the transfer and exchange of ownership interests in real property and the imposition of conservation restrictions, without authorizing any change in existing land use, increase in intensity of use, physical expansion of facilities, or approval of any development project. The subject properties will remain in open space, stormwater detention, trail, and roadway use consistent with their existing conditions. Accordingly, the action falls within CEQA Guidelines Section 15325 because it involves transfers of interests in land where the land use will remain substantially the same and the transfer serves to preserve open space and public uses.
42 Resolution No. 26-35 Page 4
The City Council further finds that the Agreement requires the recordation of deed restrictions and conservation covenants that permanently preserve habitat, biological resources, and open space values, and therefore qualifies under CEQA Guidelines Section 15317 (Class 17). The City Council additionally finds that approval of the Agreement constitutes regulatory action by the City to assure the maintenance, restoration, and protection of natural resources and the environment, including consolidation of open space ownership, establishment of enforceable conservation protections, prohibition of incompatible uses, and formalization of stewardship responsibilities for the Cristianitos Basin. Such actions qualify under CEQA Guidelines Sections 15307 (Class 7) and 15308 (Class 8).

The short-term corrective work identified in the Implementation Agreement for the Cristianitos Basin consists of routine maintenance and rehabilitation of an existing stormwater detention facility within its established footprint and does not expand or alter the facility’s capacity or function. The City Council further finds that none of the exceptions set forth in CEQA Guidelines Section 15300.2 apply. The action does not involve unusual circumstances resulting in a reasonable possibility of a significant environmental effect, does not contribute to cumulative impacts, does not affect scenic resources within a designated scenic highway, does not involve a hazardous waste site, and does not result in a substantial adverse change in the significance of a historical resource. Based on the whole of the administrative record, the City Council finds that the approval of the Implementation Agreement is categorically exempt from CEQA.

SECTION 3. The City Council hereby approves the Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente (“Implementation Agreement”) among the City, Talega Associates, LLC, and Talega Maintenance Corporation, including all exhibits thereto, in substantially the form presented to the City Council as Attachment 2 to the Agenda Report related thereto dated March 3, 2026.

SECTION 4. The City Manager is hereby authorized and directed to execute the Implementation Agreement and to negotiate, finalize and execute all related documents necessary to effectuate the transfer of the Corridor Lands, the coordinated property exchanges, easements, maintenance agreement, deed restrictions, and extinguishment of the Irrevocable Offer of Dedication as contemplated by the Implementation Agreement in forms approved by the City Attorney.

SECTION 5. The City Council authorizes and directs the City Manager to execute such additional documents and take such other and further actions as may be necessary and proper to implement the Implementation Agreement and accomplish the purposes of this Resolution.

SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. 43 Resolution No. 26-35 Page 5
PASSED AND ADOPTED this ___ day of _____________________, ____.

ATTEST:

City Clerk of the City of Rick Loeffler, Mayor of the
San Clemente, California City of Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-35 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
44 -1-
4935-4685-1467 v1
City of San Clemente City Hall
910 Calle Negocio
San Clemente, California 92673
Attn: City Clerk
Space above this line for Recorder’s Use
This document is being recorded for the benefit of the
City of San Clemente and is exempt from the payment
of a recordation fee pursuant to Government Code
Sections 6103 and 27383.

APNS: 701-041-06, 701-041-52, 701-041-55, 701-041-58, 701-041-59, 701-041-62, 701-043- 07, 701-043-08, 701-043-09, and 701-341-02

IMPLEMENTATION AGREEMENT FOR THE TRANSFER OF TRANSPORTATION

CORRIDOR AGENCY PROPERTY IN SAN CLEMENTE
This IMPLEMENTATION AGREEMENT FOR THE TRANSFER OF

TRANSPORTATION CORRIDOR AGENCY PROPERTY IN SAN CLEMENTE (“AGREEMENT”) is entered into this ___ day of _______________, 2026 (“Effective Date”) by and between the CITY OF SAN CLEMENTE, a California municipal corporation (“City”), TALEGA MAINTENANCE CORPORATION, a California non-profit public benefit corporation (“TMC”), and TALEGA ASSOCIATES, LLC, a Delaware limited liability company (“Talega Associates”). The City, Talega Maintenance Corporation, and Talega Associates are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

R E C I T A L S
A. Talega Associates is the master developer of the Talega Master Planned Community/Specific Plan area in the City (the “Talega Development”).

B. TMC is the master homeowners’ association for the Talega Development, and, among other things, owns common area property and maintains facilities that serve or benefit the community in the Talega Development.

C. A condition of the Talega Development required that an irrevocable offer of dedication of certain real property for the anticipated alignment of the Foothill South Transportation Corridor (hereinafter referred to as the “Corridor Lands” and described more particularly below) be made to the Foothill/Eastern Transportation Corridor Agency (“FETCA”).

California Government Code Section 7050 provides that with the consent of the city, county, or city and county, as the case may be, an irrevocable offer of dedication may be granted for any public purpose: including but not limited to streets, highways, including access rights and abutter's Attachment 2
45 -2-
4935-4685-1467 v1
rights, open space, public utility or other public easements, to be executed, acknowledged and recorded in the same manner as a conveyance of real property.

D. On May 9, 2006, Talega Associates and TMC executed an irrevocable offer of dedication to FETCA (the “IOD”). Talega Associates and TMC were collectively referred to as the “Offerors” in the IOD because, at that time, Talega Associates owned approximately 30.17 acres of the Corridor Lands and TMC owned approximately 0.42 acres of the Corridor Lands, and because the IOD also included a temporary construction easement over portions of property owned in fee by Talega Associates and TMC. FETCA accepted the conveyance of the Corridor Lands conveyed through the IOD on September 14, 2006.

E. The Corridor Lands, now owned in fee by FETCA, are located in the City of San Clemente, County of Orange, State of California, more particularly described in Exhibit “A”, which exhibit is attached hereto and incorporated herein fully by this reference.

F. The IOD described the “Character of Dedication” of the Corridor Lands as being “for all public purposes related to or in connection with the planning for, designing, construction, maintenance and use of the Toll Road or any street, highway or public thoroughfare which may be constructed on the Corridor Lands, which purposes shall include without limitation the following:
roadways, bridges, ramps, drainage and drainage pump facilities and access thereto, including without limitation transit ways and stations; open space, public utility or other public easements and improvements located therein; structures and other facilities used for construction, storage, and/or maintenance operations relating to any of the foregoing; and all other purposes permitted for (a) land which is to be part of the California Highway System as designated in the California Streets and Highway Code and (b) land which is designated as a street, highway or major arterial highway under the ordinances and general plan of Orange County and the city, if any, in which the Corridor Lands are located.”
G. The IOD contains limitations on the sale, lease, assignment, or transfer of all or any portion of the land to other parties for other uses, with certain exceptions. Under these limitations, Talega Associates and TMC have consent rights with respect to certain transfers of the Corridor Lands.

H. FETCA is considering transferring the Corridor Lands to the City on the condition that Talega Associates and TMC consent to the transfer.

I. All actions taken by City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) (“CEQA”), and all other requirements for notice, public hearings, findings, votes and other procedural matters.

J. On __ _____ , 2026, the City Council adopted Resolution No. ______ approving this Agreement, and determining that this Agreement is consistent with the City’s General Plan and the Talega Specific Plan, including the goals and objectives thereof..

K. On ___________, 2026, the TMC’s Board of Directors approved this Agreement.

L. On ___________, 2026, Talega Associates, LLC approved this Agreement. 46 -3-
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M. City, Talega Associates and TMC have agreed to the terms and conditions under which City would accept, and Talega Associates and TMC would consent to, the conveyance of the Corridor Lands to City from FETCA. Those terms and conditions are set forth herein.

A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City, TMC, and Talega Associates do hereby agree as follows:

1. Defined Terms. Any capitalized terms contained in this Agreement which are not defined herein shall have the meaning given in the IOD, unless expressly provided to the contrary.

2. Termination. This Agreement shall commence as of the Effective Date and shall continue in force and effect until ____________. The termination date hereof is consistent with the anticipated date of completion of the terms set forth herein, which shall establish the rights and responsibilities of all Parties as contemplated by this Agreement and with respect to the Corridor Lands thereafter.

3. Consent to Transfer. Concurrent with the execution of this Agreement, TMC and Talega Associates shall each provide official notice of their individual consents to the transfer of the Corridor Lands to City by executing and delivering to City the consent form attached hereto as Exhibit “G”. This Agreement re-establishes the rights of TMC and Talega Associates, as they were contemplated under the IOD, as specified herein. Execution of this Agreement replaces the rights established in the IOD, and each of the Parties hereby consent to the removal of the recorded IOD, which shall be extinguished and of no further force or effect upon the satisfaction of the terms contained herein. Each of the Parties agrees to execute such instruments as may be necessary and proper to remove the recorded IOD from the chain of title with respect to the Corridor Lands upon the satisfaction of the terms contained herein.

4. Transfer of Corridor Lands to City. The terms of this Agreement are predicated on the transfer of the Corridor Lands by FETCA to the City as depicted on Exhibit “A”. All other terms of Agreement shall be null and void if the Corridor Lands are not transferred to the City within three (3) years of the Effective Date of this Agreement.

5. Subsequent Exchanges of Land.

5.1 Exchange of Land between Talega Associates and City. Within one hundred and twenty (120) days after City becomes the fee holder of the Corridor Lands, Talega Associates shall transfer to City the land identified as APN 701-043-07 and a portion of APN as 701-043-09 as described and depicted on Exhibit “B” attached hereto and fully incorporated herein by this reference in fee simple with no encumbrances except for those identified in the preliminary title report dated ___________ and as described in Section 8 below. The City shall transfer to Talega Associates a portion of the Corridor Lands identified as that portion of APN 701-041-62 as described and depicted on Exhibit “C” attached hereto and fully incorporated herein by this 47 -4-
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reference in fee simple with no encumbrances except for those identified in the preliminary title report dated ___________ and as described in Section 8 below.

5.2 Exchange of Land Between City and TMC. Within one hundred and twenty (120) days after City becomes the fee holder of the Corridor Lands, City shall transfer to TMC three (3) parcels (APNs 701-041-06, 701-041-52, and 701-041-58), where the Talega Trail lies, and which are approximately two (2) acres together, in exchange for 1 (one) parcel upon which the City holds an easement for transportation purposes which is approximately one-half (.5) acres, APN 701-341-02, which TMC shall transfer to City in fee simple with no encumbrances except for those identified in the preliminary title report dated ___________ and as described in Section 8 below. The properties to be exchanged in this Section are shown in Exhibit “D” which is fully incorporated herein by this reference.

6. Addressing Existing Basin Maintenance. Contingent on timely receipt of any City, State or other governmental approvals required for such work, within one hundred and eighty (180) days after City becomes the fee holder of the Corridor Lands and the approximately three and a half (3.5) acre parcel where a portion of the Cristianitos Basin lies (APN 701-043-07), City, Talega Associates, and TMC shall complete the work identified in Exhibit “E” according to the responsibilities identified for each Party in that Exhibit. For items listed in Exhibit “E” that include shared responsibility between Talega Associates and TMC, TMC shall oversee and execute the cleanup and corrective work assigned to TMC and Talega Associates, either directly or through qualified contractors, consistent with the scope and standards set forth in Exhibit “E”. The costs associated with such shared-responsibility items shall be allocated between Talega Associates and TMC as follows: Talega Associates shall be responsible for two-thirds (2/3) of the total cost and TMC shall be responsible for one-third (1/3) of the total cost. Talega Associates shall reimburse TMC for its required two-thirds (2/3) share of such costs actually incurred within thirty (30) days after substantial completion of each task listed in Exhibit “E.”

7. Subsequent Maintenance of Basin. Within one hundred and twenty (120) days after the City verifies completion of the work required by Section 6 of this Agreement, TMC shall enter into a maintenance agreement with City to establish and assume maintenance responsibilities of the Cristianitos Basin, as that facility is identified and not including the hillside adjacent to the Basin, which maintenance agreement is attached hereto as Exhibit “F”, which is fully incorporated herein by this reference (the “Maintenance Agreement”). TMC shall be responsible for the maintenance of the Cristianitos Basin in perpetuity. Notwithstanding any contrary language in Exhibit “F,” TMC’s maintenance obligations are subject to the following: (i) City will remain responsible for all structural repairs and capital replacements (ii) City will reimburse TMC annually for any extraordinary storm-related cleanup costs exceeding ten-thousand dollars ($10,000) in any calendar year with 2026 as a base year and adjusted annually by the Los AngelesLong Beach-Anaheim (LA-LB-A) regional index Consumer Price Index (CPI); and (iii) the Maintenance Agreement attached as Exhibit “F,” and any obligations of TMC for maintenance of the Cristianitos Basin, shall be based on the Basin’s current function as a facility serving properties within the physical limits of the TMC Master Planned Community. In the event the Basin is modified or converted to operate as a regional facility serving additional properties beyond the TMC Master Planned Community, TMC’s maintenance obligations shall be equitably adjusted to be proportional to the extent of benefit and service provided to TMC-served properties, with maintenance responsibilities for any additional service areas to be allocated accordingly and the 48 -5-
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parties will work in good faith to document such change in an amendment to the Maintenance Agreement.

8. Use Restrictions/Easements on Exchanged Property.

8.1 Additional Restrictions and Easements. In addition to all recorded matters of title applicable to the parcels to be exchanged pursuant to Section 5 above, additional easements and restrictions shall be placed on the parcels at the time of the exchange, as set forth below.

8.2 Restrictions/Easement on Parcel Conveyed to Talega Associates. City shall include a covenant/deed restriction prohibiting, in perpetuity, the use of the parcel conveyed to Talega Associates as identified in Exhibit “C”, or any portion of it, as a battery storage facility or for any other non-open space use with the exception of housing. While use of the parcel as housing is not prohibited and may be legally established in the future, nothing in this Agreement shall be construed to indicate, explicitly or implicitly, or imply in any way that housing is an allowed use of the parcel conveyed to Talega Associates as identified in Exhibit “C”, or any portion of it.

Talega Associates would need to obtain any and all necessary entitlements to utilize all or a portion of the parcel identified in Exhibit “C” for housing and comply with applicable regulations, but the deed restriction will not prohibit use for housing development.

8.3 Restrictions/Easement on Parcels Conveyed to TMC. For the parcels conveyed to TMC as identified in Exhibit “D”, City shall reserve easements for: (1) trail, and trail parking, purposes in the general location of the portion of the Talega Trail that currently exists on these properties, (2) right-of-way for street and vehicular/road-way accessin the area contemplated for the extension of Cristianitos Road as shown in IOD Exhibit “A-1”, page 4, which occurs over APNs 701-041-06 and 701-041-52; and (3) access easements over APN 701-041-06 and APN 701-041-58, which may be conveyed to others, for the purposes of ingress and egress to APN 701- 041-62.

8.3.1 Maintenance of Trail Easement. City will remain responsible for all structural maintenance, liability, and insurance for the public trail within the trail easement reserved on the parcels conveyed to TMC. TMC’s responsibility is limited to landscape maintenance only (e.g., mowing, irrigation, and minor trimming).

8.3.2 Indemnity. City will defend, indemnify, and hold harmless TMC and its Directors and agents, from any and all claims, damages, and/or liability, including attorney’s fees, arising from public use of the trail easement or the access easements reserved hereunder except to the extent caused by TMC’s negligent, intentional, reckless or illegal acts or omissions.

8.4 Restrictions on Parcels Conveyed to City. Talega Associates shall ensure that the habitat and conservation values contained within the two parcels (APNs 701-043-07 and 701-043-09) conveyed to City are protected by including a deed restriction on each of the parcels in substantially the form attached hereto as Exhibit “H” which is fully incorporated herein by this reference. City shall reserve an access easement for TMC over portions of APNs 701-041-62 and 701-041-55, where the Talega Trail lies, for ingress and egress for the purpose of trail and landscape maintenance.
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4935-4685-1467 v1

9. Miscellaneous.

9.1 Force Majeure. The obligations of any of the Parties hereunder shall not be deemed to be in default where delays are due to any cause without fault and beyond the reasonable control of such Party, including to the extent applicable, the following: any act of God, fire, flood, natural catastrophe, labor dispute or strike or shortage, national or state emergency, epidemic or pandemic, insurrection, riot, act of terrorism, war, or act of government. If written notice of such delay is provided to the other Parties within a reasonable time after the commencement of such delay, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon by the Parties in writing.

9.2 Waivers and Amendments. All waivers of any of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Party to be charged.

A waiver of the breach of the covenants, conditions or obligations under this Agreement by any Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions or obligations of this Agreement. Any amendment or modification to this Agreement must be in writing and executed by the appropriate authorities of all the Parties.

9.3 Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of the Agreement shall continue in full force and effect, unless and to the extent the rights and obligations of one or more parties has been materially altered or abridged by such holding.

9.4 Notices. Any notice or communication required hereunder between the Parties must be in writing and may be given either personally or by registered or certified mail, return receipt requested, or by telecopier or facsimile transmission provided that the original of the notice is concurrently delivered by regular mail. If given by registered or certified mail, the same shall be deemed to have been given and received on the date of actual receipt by the addressee designated hereinbelow as the party to whom the notice is sent. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If delivered by facsimile transmission, a notice shall deemed to have been given and received on the date of receipt. A Party hereto may at any time, by giving ten (10) days’ written notice to the other Parties hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at their addresses set forth below:

If to City: City of San Clemente City Hall
910 Calle Negocio
San Clemente, California 92673
Attn: City Clerk
Telephone: (949) 361-8322
Telecopy: (949) 361-8316
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4935-4685-1467 v1
With a copy to:

If to Talega Associates:

With a copy to:

If to Talega Maintenance
Corporation:

With a copy to:

Burke, Williams & Sorensen, LLP
444 South Flower Street, 40th Floor
Los Angeles, CA 90071-2942
Attn: Elizabeth A. Mitchell, Esq.

Telephone: (213) 236-0600
Telecopy: (213) 236-2700
Talega Associates, LLC
c/o Lennar Homes of California-Coastal Division
2000 Fivepoint, Suite 365
Irvine, CA 92618
Attn: Brian K. Bencz
Telephone:

Telecopy:

Mark R. McGuire Attorney at Law
2311 Calle Las Palmas
San Clemente, CA 92672
Attn: Mark R. McGuire, Esq.

Telephone: (949) 584-1126
Telecopy: (949) 492-8818
Talega Maintenance Corporation
100 Calle Altea
San Clemente, California 92673
Attn: Executive Director
Telephone: (949) 361-8466
Telecopy: N/A
Delphi Law Group, LLP
5868 Owens Avenue, Suite 200
Carlsbad, California 92008
Attn: James R. McCormick, Jr., Esq.

Telephone: (844) 433-5744
Telecopy: (760) 820-2696

9.5 Applicable Law/Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California and venue shall be set exclusively in the superior court of the State of California located in the County of Orange. Each of the Parties waives their right to contest jurisdiction or venue of said court and waives their right to remove any action pursuant to California Code of Civil Procedure section 394.

9.6 Mutual Drafting. Each of the Parties acknowledges and agrees that they had equal parts in the drafting of this Agreement and the ability to consult with their own attorney.

Therefore, there was no one drafter of this Agreement and the presumption against the drafter shall not apply.
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9.7 Execution of Additional Documents. Each of the Parties covenants to exercise good faith in negotiating, executing and delivering such other and further documents as may be necessary to accomplish the purposes set forth in this Agreement. Each Party shall be responsible for the preparation, at its sole cost and expense, of all legal descriptions, surveys, deeds, title reports, and other conveyance or transfer documents necessary to effectuate the transfer of the real property interests that it is conveying to another Party pursuant to this Agreement, as described herein.

9.8 Document Delivery and Recording.

9.8.1 Submission of Documents. Each Party shall deliver final, executed recordable documents in forms agreed to among the Parties pursuant to section 9.7 or as otherwise required under this Agreement to the City Clerk who shall process such documents for recordation in the order and manner contemplated by this Agreement.

9.8.2 No Fiduciary Duties. In performing its duties under this Section, neither the City nor its employees, agents or representatives assume any fiduciary duty, title responsibility, or obligation to verify the legal sufficiency, accuracy, or completeness of documents submitted by the Parties, or any other duty beyond ensuring that documents received are delivered to the County Recorder’s Office for recordation.

9.8.3 Effectiveness of Recordation. Any document recorded pursuant to this Agreement shall be deemed effective upon recordation by the County Recorder, unless otherwise expressly provided herein.

9.9 Covenant Running with the Land. The obligations set forth in this Agreement shall constitute a covenant running with the land and shall be binding upon each of the Parties and their respective successors and assigns.

9.10 Counterparts. This Agreement may be executed in any number of counterparts, which together shall constitute one complete agreement.

9.11 Authority. The persons executing this Agreement on behalf of the Parties hereto represent and warrant that they are duly authorized to execute this Agreement on behalf of said Parties, that by so executing this Agreement, the Parties hereto are formally bound to the provisions of this Agreement, and that they will indemnify the other Parties hereto should such representation prove false.
[SIGNATURES ON FOLLOWING PAGES]
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4935-4685-1467 v1
IN WITNESS WHEREOF, City, TMC and Talega Associates have executed this Agreement as of the date first written above.
“CITY”
CITY OF SAN CLEMENTE, a California
municipal corporation
By:

Andy Hall, City Manager
ATTEST:

City Clerk
APPROVED AS TO FORM:

Elizabeth A. Mitchell, City Attorney
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“TMC”
Talega Maintenance Corporation, a California
non-profit public benefit corporation
By: _______________________________
Name: Philip Harris
Title: President
Date: _____________________________
By: _______________________________
Name: Serge Jonnaert
Title: Vice President
Date: _____________________________
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“TALEGA ASSOCIATES”
Talega Associates LLC,
a Delaware limited liability company
By: Standard Pacific Investment, LLC, a
Delaware limited liability company
Its: Managing member
By: CalAtlantic Group, LLC, a Delaware
limited liability company
Its: Managing member
By: Lennar Corporation, a Delaware
corporation
Its: Managing member
By:
_______________________________
Name: Brian Bencz
Its: Authorized Agent
Date: __________________________
55 -12-
4935-4685-1467 v1

STATE OF CALIFORNIA )
) ss

COUNTY OF )
On , before me, ,
personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

Notary Public
[SEAL]

STATE OF CALIFORNIA )
) ss

Witness my hand and official seal.

Notary Public
[SEAL]
56 -13-
4935-4685-1467 v1

STATE OF CALIFORNIA )
) ss

Witness my hand and official seal.

Notary Public
[SEAL]
57 EXHIBIT “A”

LEGAL DESCRIPTION OF THE PROPERTY
4935-4685-1467 v1
“Corridor Lands”
58 4935-4685-1467 v1
EXHIBIT “B”
Property Transferred to City from Talega Associates
Legal Description of APN 701-043-07: N TR 13872 BLK LOT 3 TR NO 13872 LOT 3 POR OF LOT
Legal Description of APN 701-043-09: N TR 13872 BLK LOT 3 TR NO 13872 LOT 3 POR OF LOT. Note: The area depicted herein is shown as an approximation only, reflecting that portion of APN 701-043-09 located outside the City of San Clemente Housing Overlay District. Prior to conveyance, the precise boundaries of the conveyed portion shall be established by a licensed land surveyor through the preparation of a metes and bounds legal description.

APN 701-043-07
Portion of APN
701-043-09
59 4935-4685-1467 v1
EXHIBIT “C”
Property Transferred to Talega Associates from City
Legal Description of APN 701-041-62: N TR 13872 BLK LOT 4 TR NO 13872 LOT 4 POR OF LOT. Note: The area depicted herein is shown as an approximation only, reflecting the 8.46-acre portion of APN 701-041-62 to be conveyed to Talega Associates. Prior to conveyance, the precise boundaries of the conveyed portion shall be established by a licensed land surveyor through the preparation of a metes and bounds legal description.

Portion of
APN 701-041-62
60 4935-4685-1467 v1
EXHIBIT “D”
Property Transferred Between Talega Maintenance Corporation and City APN 701-341-02
to City
APN 701-041-06 to
TMC
APN 701-041-58 to
TMC
APN 701-041-52 to
TMC
61 4935-4685-1467 v1
EXHIBIT “D”, Continued
Legal Description of APN 701-041-52: N TR 13898 BLK LOT D TR NO 13898 LOT D POR

OF LOT AND POR OF LOT C
Legal Description of APN 701-041-06: N TR 13872 BLK LOT G TRACT 13872 LOT G POR OF LOT
Legal Description of APN 701-041-58: N TR 13872 BLK LOT 4 TR NO 13872 LOT 4 POR OF LOT
Legal Description of APN 701-341-02: N TR 13899 BLK LOT C 62 EXHIBIT “E”
4935-4685-1467 v1

CRISTIANITOS BASIN SHORT-TERM MAINTENANCE TASKS
Task Description Purpose Effort/Equipment Responsible Party(ies) 1 Preliminary
Vegetation
Management
Cut and clear vegetation along access road,
at storm drain outlets (into basin), and at
low-flow and flood control outlet structures.

Improve access,
allow clear work area
and inspection.

Crew for 1 day with
hand and power tools
and truck or chipper.

City of San Clemente
2 Rehabilitate
Low Flow
Outlet and
Remove
Accumulated
Sediment
Excavate and remove gravel and deposited
sediment within 6 foot radius of low flow
outlet. Replace with clean gravel to design
condition.

Remove accumulated sediment at low point
of basin (assumed approximately 5,000 sq.
ft. at average depth of 12”).

Restore low flow
capacity of outlet
structure and storage
capacity for water
quality volume.

Crew for 2-3 days with
hand tools and mini
excavator, 1 truck load
of gravel, haul off and
dispose of spoils.

Talega Maintenance
Corporation (1/3 of cost)
and Talega Associates (2/3
of cost)
3 Rehabilitate
Water
Quality and
Flood
Control
Outlet
(As Needed)
Inspect outlet riser including trash racks,
orifice, overflow, and connection to low
flow outlet. Repair/replace components as
needed. Remove accumulated sediment and
debris.

Restore wet weather
and flood control
flow capacity of
outlet structure.

Crew for ½-1 day,
Misc Materials, Vactor
Truck (as needed)
Talega Maintenance
Corporation (1/3 of cost)
and Talega Associates (2/3
of cost)
4 Selective
Vegetation
Management
and Debris
Removal
Remove low lying vegetation (cut down to
18 inches) as needed to allow removal of
accumulated debris (assumed ~50% of
basin, approx. 1 acre). Remove debris,
including floatable woody debris.

Remove debris and
potentially floatable
material that could
damage or clog
outlets.

Crew for 2-3 days with
hand, power tools, and
equipment as needed.

Talega Maintenance
Corporation (1/3 of cost)
and Talega Associates (2/3
of cost)
5 Biological
Monitoring
Onsite biologist to monitor for sensitive
species
Avoid impacts 1 Biologist for 1 week Talega Maintenance Corporation (1/3 of cost)
and Talega Associates (2/3
of cost)
63 EXHIBIT “F”
4935-4685-1467 v1

CRISTIANITOS BASIN MAINTENANCE RESPONSIBILITIES

AGREEMENT
This CRISTIANITOS BASIN MAINTENANCE RESPONSIBILITIES AGREEMENT (“AGREEMENT”) is entered into this ___ day of _______________, 2026 (“Effective Date”) by and between the CITY OF SAN CLEMENTE, a California municipal corporation (“City”), and TALEGA MAINTENANCE CORPORATION, a California non-profit public benefit corporation (“TMC”), in furtherance of the transfer and ongoing use of property associated with the Cristianitos Basin as described in that certain IMPLEMENTATION AGREEMENT FOR THE

TRANSFER OF TRANSPORTATION CORRIDOR AGENCY PROPERTY IN SAN CLEMENTE, dated effective ____________, 2026.

1. Purpose. The purpose of this AGREEMENT is to clearly define the respective maintenance, repair, and replacement responsibilities for the Cristianitos Basin, a regional stormwater detention and flood control facility, in a manner consistent with the Talega Basin Maintenance Manual (March 2005) (“Maintenance Manual”), while allocating long-term responsibilities between TMC and City.

2. Applicable Facility. This AGREEMENT applies exclusively to the Cristianitos Basin, as identified and described in Section 15-1 of the Talega Basin Maintenance Manual, and depicted in Appendix 1 thereto, which is, incorporated herein fully by reference. No other basins or facilities governed by the Maintenance Manual are subject to this AGREEMENT and this AGREEMENT shall specifically not include or cover the hillside and its drainage facilities adjacent to the Cristianitos Basin.

3. Maintenance Standards. All maintenance activities performed pursuant to this AGREEMENT shall be conducted in substantial conformance with:
• The Talega Basin Maintenance Manual (March 2005), as it relates to the Cristianitos Basin;
• Applicable local, state, and federal laws and regulations; and • Best management practices for stormwater, flood control, and vegetation maintenance.

In the event of a conflict between this AGREEMENT and the Maintenance Manual, this AGREEMENT shall control with respect to allocation of responsibility.

4. TMC Maintenance Responsibilities
a. Scope of Maintenance. TMC shall be responsible, at its sole cost and expense, for the routine, operational, and non-structural maintenance of the Cristianitos Basin in perpetuity, including but not limited to:
• Vegetation management, mowing, trimming, weed control, and debris removal;
64 EXHIBIT “F”
4935-4685-1467 v1
• Sediment monitoring and routine sediment removal as identified in the Maintenance Manual;
• Trash, litter, and minor obstruction removal;
• Maintenance of access routes, gates, fencing, and signage (excluding structural elements);
• Erosion repair and slope maintenance for the area indicated on Appendix 2 of AGREEMENT, and that does not involve structural failure, and/or maintenance or repair of any structural components; • Storm related cleanup costs not exceeding ten thousand dollars ($10,000) in any calendar year with 2026 as a base year and adjusted annually by the Los Angeles-Long Beach-Anaheim (LA-LB-A) regional index Consumer Price Index (CPI). City will timely reimburse TMC for reasonable storm-related costs that exceed this annual cost; and
• Inspections and reporting required under the Maintenance Manual. b. Duration of Obligation. TMC’s maintenance obligations shall continue in perpetuity, unless and until modified pursuant to Section 7 of this AGREEMENT.

5. City Structural Responsibilities. Notwithstanding any other provision of this AGREEMENT:
• TMC shall have no responsibility for the repair, replacement, rehabilitation, or reconstruction of structural elements of the Cristianitos Basin. • The City shall assume sole responsibility for all of the following structural components of the Cristianitos Basin:
o Basin embankments and structural slopes;
o Outlet works, control structures, and hydraulic infrastructure; o Energy dissipation structures; and
o Any structural failures, deficiencies, or required capital improvements.

Structural responsibilities shall include evaluation, design, permitting, funding, and construction of repairs or replacements. City Structural Responsibilities shall not include maintenance activities necessary to ensure continued and compliant operations under the Maintenance Manual for the Cristianitos Basin.
65 EXHIBIT “F”
4935-4685-1467 v1

6. No City Reimbursement. Except as expressly provided herein, the City shall have no obligation to reimburse TMC for routine or non-structural maintenance costs incurred by TMC under this AGREEMENT.

7. Future Right-of-Way and/or Basin Modifications. If the Cristianitos Basin is converted to a regional facility or otherwise modified to serve property outside of the TMC Master Planned Community, TMC’s maintenance obligations shall be equitably adjusted to be proportional to the extent of benefit and service provided to TMC-served properties, with maintenance responsibilities for any additional service areas to be allocated accordingly and documented by the Parties in a written amendment to this Agreement. In the event that the Cristianitos Basin is modified, partially removed, or reconfigured to accommodate future roadway, right-of-way, or public infrastructure improvements, the Parties agree as follows:
• Maintenance responsibilities shall be reassessed at that time; provided, however, that unless and until maintenance responsibilities are expressly reassigned or transferred as part of such future roadway, right-of-way, or public infrastructure improvements, TMC is anticipated to continue to be responsible for maintenance subsequent to any modifications, partial removals, or reconfigurations of the Cristianitos Basin, at least to the extent set forth in this AGREEMENT;
• The Parties shall negotiate in good faith an amendment or replacement agreement addressing revised maintenance and ownership responsibilities if warranted; and • If and until such reassessment occurs, this AGREEMENT shall remain in full force and effect.

8. No Transfer of Ownership. Nothing in this AGREEMENT shall be construed as transferring ownership of the Cristianitos Basin or any structural components thereof to TMC. Ownership and ultimate control of structural elements shall remain with the City unless otherwise expressly conveyed by recorded instrument.

9. Covenant Running with the Land. The obligations set forth in this AGREEMENT shall constitute a covenant running with the land and shall be binding upon TMC and its successors and assigns.

10. No Third-Party Beneficiaries. This AGREEMENT is for the benefit of the City and TMC only and creates no rights in any third party.

11. Force Majeure. The obligations of any of the Parties hereunder shall not be deemed to be in default where delays are due to any cause without fault and beyond the reasonable control of such Party, including to the extent applicable, 66 EXHIBIT “F”
4935-4685-1467 v1
the following: any act of God, fire, flood, natural catastrophe, labor dispute or strike or shortage, national or state emergency, epidemic or pandemic, insurrection, riot, act of terrorism, war, or act of government. If written notice of such delay is provided to the other Parties within a reasonable time after the commencement of such delay, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon by the Parties in writing.

12. Waivers and Amendments. All waivers of any of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to be charged. A waiver of the breach of the covenants, conditions or obligations under this Agreement by any Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions or obligations of this Agreement. Any amendment or modification to this Agreement must be in writing and executed by the appropriate authorities of all the Parties.

13. Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of the Agreement shall continue in full force and effect, unless and to the extent the rights and obligations of one or more parties has been materially altered or abridged by such holding.

14. Notices. Any notice or communication required hereunder between the Parties must be in writing and may be given either personally or by registered or certified mail, return receipt requested, or by telecopier or facsimile transmission provided that the original of the notice is concurrently delivered by regular mail. If given by registered or certified mail, the same shall be deemed to have been given and received on the date of actual receipt by the addressee designated hereinbelow as the Party to whom the notice is sent. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If delivered by facsimile transmission, a notice shall deemed to have been given and received on the date of receipt. A Party hereto may at any time, by giving ten (10) days’ written notice to the other Parties hereto, designate any other address in substitution of the address to which such notice or communication shall be given.

Such notices or communications shall be given to the Parties at their addresses set forth below:
67 EXHIBIT “F”
4935-4685-1467 v1
If to City:

With a copy to:

If to Talega Maintenance
Corporation:

With a copy to:

City of San Clemente City Hall
910 Calle Negocio
San Clemente, California 92673
Attn: City Clerk
Telephone: (949) 361-8322
Telecopy: (949) 361-8316
Burke, Williams & Sorensen, LLP
444 South Flower Street, 40th Floor
Los Angeles, CA 90071-2942
Attn: Elizabeth A. Mitchell, Esq.

Telephone: (213) 236-0600
Telecopy: (213) 236-2700
Talega Maintenance Corporation
100 Calle Altea
San Clemente, California 92673
Attn: Executive Director
Telephone: (949) 361-8466
Telecopy: N/A
Delphi Law Group, LLP
5868 Owens Avenue, Suite 200
Carlsbad, California 92008
Attn: James R. McCormick, Jr., Esq.

Telephone: (844) 433-5744
Telecopy: (760) 820-2696

15. Applicable Law/Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California and venue shall be set exclusively in the superior court of the State of California located in the County of Orange. Each of the Parties waives their right to contest jurisdiction or venue of said court and waives their right to remove any action pursuant to California Code of Civil Procedure section 394.

16. Mutual Drafting. Each of the Parties acknowledges and agrees that they had equal parts in the drafting of this Agreement and the ability to consult with their own attorney. Therefore, there was no one drafter of this Agreement and the presumption against the drafter shall not apply.
68 EXHIBIT “F”
4935-4685-1467 v1

17. Execution of Additional Documents. Each of the Parties covenants to exercise good faith in negotiating, executing and delivering such other and further documents as may be necessary to accomplish the purposes set forth in this Agreement.

18. Counterparts. This Agreement may be executed in any number of counterparts, which together shall constitute one complete agreement.

19. Authority. The persons executing this Agreement on behalf of the parties hereto represent and warrant that they are duly authorized to execute this Agreement on behalf of said Parties, that by so executing this Agreement, the parties hereto are formally bound to the provisions of this Agreement, and that they will indemnify the other Parties hereto should such representation prove false. [SIGNATURES ON FOLLOWING PAGE]
69 EXHIBIT “F”
4935-4685-1467 v1
IN WITNESS WHEREOF, City and TMC have executed this Agreement as of the date first written above.
“CITY”
CITY OF SAN CLEMENTE, a California
municipal corporation
By:

Andy Hall, City Manager
ATTEST:

City Clerk
APPROVED AS TO FORM:

Elizabeth A. Mitchell, City Attorney
70 EXHIBIT “F”
4935-4685-1467 v1
“TMC”
Talega Maintenance Corporation, a California
non-profit public benefit corporation
By: _______________________________
Philip Harris, President
Date: _____________________________
By: _______________________________
Serge Jonnaert, Vice President
Date: _____________________________
71 EXHIBIT “F”
4935-4685-1467 v1

STATE OF CALIFORNIA )
) ss

Witness my hand and official seal.

Notary Public
[SEAL]
72 EXHIBIT “F”
4935-4685-1467 v1

STATE OF CALIFORNIA )
) ss

Witness my hand and official seal.

Notary Public
[SEAL]
73 EXHIBIT "F" - EXHIBIT "F" - APPENDIX 1
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
96 97
98 99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
EXHIBIT “F”
4935-4685-1467 v1
APPENDIX 2
159
EXHIBIT “G”

CONSENT TO TRANSFER OF CORRIDOR LANDS
This Consent to Transfer (“Consent”) is executed pursuant to that certain Implementation Agreement for the Transfer of Transportation Corridor Agency Property in San Clemente (“Agreement”), by and among the City of San Clemente, Talega Maintenance Corporation, and Talega Associates, LLC, dated effective_________, 2026.

CONSENT
The undersigned hereby acknowledges that it is an original offeror under that certain Irrevocable Offer of Dedication dated May 9, 2006 (the “IOD”), in favor of the Foothill/Eastern Transportation Corridor Agency (“FETCA”), concerning the real property commonly referred to as the “Corridor Lands,” defined in the IOD and located within the City of San Clemente. The undersigned hereby also acknowledges that Talega Associates, LLC, a Delaware limited liability company, and Talega Maintenance Corporation, a California non-profit public benefit corporation, are the only offerors of the IOD, and no other entities or successors with any consent rights under the IOD exist.

Pursuant to the terms of the Agreement, and any consent rights retained under the IOD, the undersigned hereby consents to the transfer of the Corridor Lands by FETCA to the City of San Clemente, subject to and in accordance with the terms and conditions set forth in the Agreement.

This Consent is given voluntarily, is intended to satisfy any and all applicable consent requirement under the IOD, and shall be effective upon execution. Except as expressly stated herein, this Consent does not amend, expand, or waive any other rights or obligations set forth in the Agreement. The persons providing this Consent on behalf of the parties hereto represent and warrant that they are duly authorized to execute this Agreement on behalf of said parties, that by so executing this Agreement, the parties hereto are formally bound to the provisions of this Agreement, and that they will indemnify the other parties hereto should such representation prove false.

IN WITNESS WHEREOF, the undersigned has executed this Consent as of the date set forth below.
“TMC”
Talega Maintenance Corporation, a California non-profit public benefit corporation By: _______________________________
Name: Philip Harris
Title: President
Date: _____________________________
4935-4685-1467 v1 160
EXHIBIT “G”
By: _______________________________
Name: Serge Jonnaert
Title: Vice President
Date: _____________________________
[OR]
“TALEGA ASSOCIATES”
Talega Associates LLC,
a Delaware limited liability company
By: Standard Pacific Investment, LLC, a Delaware limited liability company Its: Managing member
By: CalAtlantic Group, LLC, a Delaware limited liability company Its: Managing member
By: Lennar Corporation, a Delaware
corporation
Its: Managing member
By:_______________________________
Name: Brian Bencz
Its: Authorized Agent
Date: __________________________
161
EXHIBIT “G”

STATE OF CALIFORNIA )
) ss

Witness my hand and official seal.

Notary Public
[SEAL]
162
EXHIBIT “H”
City of San Clemente City Hall
910 Calle Negocio
San Clemente, California 92673
Attn: City Clerk
Space above this line for Recorder’s Use
This document is being recorded for the
benefit of the City of San Clemente and is
exempt from the payment of a recordation fee
pursuant to Government Code Sections 6103
and 27383.

APNS: _701-043-07 [OR] 701-043-09

DEED RESTRICTION AND CONSERVATION COVENANT
This Deed Restriction and Conservation Covenant (“Restriction”) is made as of ____________, 2026, by TALEGA ASSOCIATES, LLC, a Delaware limited liability company (“Talega Associates”), as owner of the real property described below and in accordance with that certain

IMPLEMENTATION AGREEMENT FOR THE TRANSFER OF TRANSPORTATION CORRIDOR AGENCY PROPERTY IN SAN CLEMENTE dated effective ____________, 2026 (the “Implementation Agreement”).

RECITALS
A. Talega Associates is the fee owner of certain real property located in the City of San Clemente, County of Orange, State of California, identified generally as APNs 701-043-07 [OR] 701-043-09 (“Property”).

B. The Property is one of the parcels identified in Exhibit “B” to the Implementation Agreement.

C. Section 8.4 of the Implementation Agreement requires that the Property be encumbered by a deed restriction to preserve its habitat, biological, and conservation values in perpetuity.

D. Talega Associates desires to impose binding land-use restrictions on the Property to ensure that the Property remains substantially in its natural condition and is preserved primarily for open space, habitat protection, and conservation purposes.

PROPERTY SUBJECT TO RESTRICTION
The Property subject to this Restriction is described in Appendix “A”, attached hereto and incorporated fully herein by reference.

1. PURPOSE. The purpose of this Restriction is to permanently preserve and protect the natural habitat, wildlife resources, biological communities, scenic open space, and conservation 163
EXHIBIT “H”
values of the Property. The Property contains environmentally sensitive habitat areas, natural landforms, and native vegetation that contribute to regional ecological integrity, wildlife movement, and open space preservation. This Restriction is intended to prevent uses or activities that would materially impair, degrade, fragment, or destroy such conservation values, while allowing limited activities consistent with long-term stewardship and ecological health.

2. PERMITTED USES. The following uses are permitted on the Property, provided that they are conducted in a manner that is consistent with the purposes of this Restriction and applicable laws:
a. Passive open space use, including limited pedestrian access provided by existing trails;
b. Habitat preservation, enhancement, and ecological restoration; c. Biological, environmental, and scientific monitoring, surveys, and studies; d. Vegetation management activities, including invasive species removal and fuel modification conducted for ecological health or wildfire risk reduction, and may include grazing services to conduct such work;
e. Maintenance, repair, and replacement of existing or approved trails, drainage facilities, erosion control features, and similar improvements; [FOR APN 701- 043-07: INCLUDE POTENTIAL RECONFIGURATION OF CHRISTIANITOS BASIN]
f. Installation and maintenance of signs identifying conservation areas or providing regulatory or interpretive information; and
g. Access by public agencies or authorized representatives for inspection, monitoring, maintenance, and emergency response purposes.

3. PROHIBITED USES. Except as expressly permitted above, the following uses and activities are prohibited in perpetuity:
a. Residential, commercial, industrial, institutional, or additional recreational development beyond the existing pedestrian trails;
b. Construction or placement of buildings, structures, roads, utilities, or improvements, except those expressly permitted;
c. Grading, excavation, dredging, filling, or alteration of natural landforms or drainage patterns;
d. Mining, drilling, or extraction of minerals, soils, or other materials; e. Storage, disposal, or release of hazardous substances or waste; f. Introduction of non-native or invasive plant or animal species; 164
EXHIBIT “H”
g. Agricultural activities, grazing, or commercial plant production, except for wildfire abatement activities;
h. Any activity that would degrade habitat quality, disturb wildlife, fragment habitat corridors, or materially alter the natural condition of the Property, except to the extent necessary to prevent wildfires.

4. DURATION. This Restriction is perpetual and shall run with the land and be binding on all present and future owners, tenants, lessees, licensees, and occupants of the Property.

5. ENFORCEMENT. The City of San Clemente (“City”) shall have the exclusive right, but not the obligation, to enforce the terms, covenants, and restrictions set forth in this Restriction. Enforcement may be exercised by the City by any lawful means, including, without limitation, injunctive relief, specific performance, administrative enforcement, and actions to require restoration of the Property to its condition prior to any violation.

No failure or delay by the City in exercising any right or remedy under this Restriction shall be deemed a waiver of the City’s right to do so, nor shall any single or partial exercise of a right or remedy preclude any other or further exercise thereof. The City’s enforcement rights shall be cumulative and in addition to any other remedies available at law or in equity.

In the event of a violation of this Restriction by any person or entity, the City may require the responsible party to restore the Property, at that party’s sole cost and expense, to a condition consistent with the conservation purposes of this Restriction, as determined by the City in its reasonable discretion. In any action by the City to enforce the terms of this Restriction, the prevailing party shall be entitled to recover their costs, including reasonable attorney fees.

6. AMENDMENT. This Restriction may be amended or terminated only by a recorded instrument approved by Talega Associates, their successors, and/or, where applicable, by the City of San Clemente.

7. GOVERNING LAW. This Restriction shall be governed by and construed in accordance with the laws of the State of California.
[SIGNATURES ON FOLLOWING PAGE]
165
EXHIBIT “H”
IN WITNESS WHEREOF, the undersigned Owner has executed this Deed Restriction and Conservation Covenant as of the date first written above. “TALEGA ASSOCIATES”
Talega Associates LLC,
a Delaware limited liability company
By: Standard Pacific Investment, LLC, a Delaware limited liability company Its: Managing member
By: CalAtlantic Group, LLC, a Delaware limited liability company Its: Managing member
By: Lennar Corporation, a Delaware
corporation
Its: Managing member
By: _______________________________
Name: Brian Bencz
Its: Authorized Agent
Date: _____________________________
166
EXHIBIT “H”

STATE OF CALIFORNIA )
) ss

Witness my hand and official seal.

Notary Public
[SEAL]
167
EXHIBIT “H”
APPENDIX “A”
[To be added later and separately for each APN 701-043-07 and APN 701-043-09] 168
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: March 3, 2026 Agenda Item: 10B.

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

INTRODUCTION AND FIRST READING OF AN ORDINANCE ADOPTING THE CITY SEAL AND CITY LOGO AND ES ..body TABLISHING REGULATIONS WITH REGARD TO THEIR USAGE Fiscal Impact:

There is not direct fiscal impact. However, if the seal and logo are improperly used, the City will be able to issue fines and citations for violations of the proposed Ordinance.

Summary:

The City Council is being asked to consider the introduction and first reading of an Ordinance to officially adopt the City seal and City logo and establish regulations relating to their usage.

Background:

The City of San Clemente has historically utilized a City seal and City logo to conduct City business and identify City resources (such as vehicles) and facilities. Both the seal and logo share the same image but are used for different purposes. The seal is embossed on documents to authenticate official City documents or to indicate institutional sanction for official, legal and ceremonial purposes. The City logo is a graphic symbol that is used on materials such as letterhead, publications, programs, flyers, banners, apparel, signage, vehicles, buildings, identification badges, etc. to reflect official City business, ownership, or endorsement, and to identify persons duly elected or appointed to a City position or office. Neither the City seal nor the City logo have been formally adopted by ordinance. In addition, the City has never formally adopted regulations or restrictions relating to use of the City seal or City logo other than in connection with City letterhead (Policy No. 1201-13) and Councilmember use (Policy No. 1201- 14).

Section 2(b) of the Trademark Act, 15 U.S.C. §1052(b), and California Business and Professions Code section 14205(c) prohibit registering the insignia of any state or municipality as a trademark. In 2022, the federal Trademark Trial and Appeal Board issued a precedential decision affirming the U.S. Patent and Trademark Office (PTO) Examining Attorney’s refusal to register two different logo marks filed by the County of Orange because the marks, while not “official”, consisted of and comprised an insignia of a “municipality” for which trademark registration is prohibited under Section 2(b) of the Trademark Act. In re County of Orange, Ser. Nos. 87419378; 87639750 (TTAB, Aug. 4, 2022).

Discussion:

Recently, City staff has received questions about the City seal and logo and anticipates additional inquiries as the 2028 Olympics approach. Under the proposed Ordinance, the City Clerk, or 169
Meeting Date: March 3, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE 2
designee, would become the custodian of the official seal for the City and the City Manager, or designee, would become the custodian of the official logo of the City. The proposed Ordinance would identify appropriate uses for the City seal and logo and would make it unlawful for any person, firm, association or corporation to make or use the City seal, City logo, or any portion, facsimile or reproduction thereof, in a manner that is designed, intended or likely to confuse, deceive or mislead the public, for private or commercial purposes, or for any purpose other than for the official business of the City without the express written consent of the City Clerk or City Manager or designees.

Considerations Identified by Staff:

Staff suggests the adoption of Ordinance No. -- related to the use of the city seal in order to protect it from unauthorized use by any organization or individual outside of the city, ensure its integrity and official status are preserved, and establish clear guidelines and enforcement measures governing its proper display and reproduction. This action will help safeguard the city’s identity, prevent potential misuse or misrepresentation, and provide a consistent framework for approving any authorized uses of the seal.

Council Options:
 Introduce and conduct a first reading of Ordinance No. 1802, adding Chapter 2.58 to the San Clemente Municipal Code relating to the City Seal and Logo.  Modify and adopt Ordinance No. 1802.
 Continue the item and provide additional direction.
 Do not adopt Ordinance No. 1802.

Environmental Review/Analysis:

Adoption of the City Seal and Logo, and establishing regulations for their use is not a project under the California Environmental Quality Act (CEQA).

Recommended Actions:
..recommendation
Introduce and conduct a first reading of Ordinance No. 1802, adding Chapter 2.58 to the San Clemente Municipal Code, officially adopting the City seal and City logo and establishing regulations relating to their usage.
..end
Attachment:

1. Proposed Ordinance No. 1802

2. Policy No. 1201-13

3. Policy No. 1201-14
Notification:

None.
170
Attachment 1
ORDINANCE NO. 1802

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA, ADDING
CHAPTER 2.58 TO THE CITY OF SAN CLEMENTE

MUNICIPAL CODE RELATING TO THE ADOPTION

OF THE OFFICIAL CITY SEAL AND OFFICIAL CITY

LOGO AND ESTABLISHING REGULATIONS WITH

REGARD TO THEIR USE
WHEREAS, the City of San Clemente utilizes an official seal, which is used to emboss official City documents and instruments to validate their authenticity and to indicate institutional sanction for official, legal and ceremonial purposes; and WHEREAS, the City of San Clemente also utilizes a City logo that shares the same image as the City seal, but is a graphic emblem used to identify documents, property, and programs that reflect official City business, ownership, or endorsement, and to also identify persons duly elected or appointed to a City position or office; and WHEREAS, the City Council desires to formally adopt the City seal and City logo by ordinance and to establish regulations and restrictions relating to their use.

NOW, THEREFORE, the City Council of the City of San Clemente, California, hereby ordains as follows:

SECTION 1: Chapter 2.58 (City Seal and Logo) is hereby added to the City of San Clemente Municipal Code to read as follows:

2.58.010. City Seal and Logo - Establishment.

The City hereby adopts an official seal and logo, the design and color of which are as set forth below:

171
Ordinance No. 1802 Page 2

2.58.020. Use of City Seal and City Logo.

A. The City seal and the City logo are the property of the City of San Clemente.

Both share the same image but are used for different purposes. The seal is used to emboss official City documents and instruments to validate their authenticity and to indicate institutional sanction for official, legal and ceremonial purposes. The logo is a graphic emblem used to identify documents, property, and programs that reflect official City business, ownership, or endorsement, and to identify persons duly elected or appointed to a City position or office.

B. The City Clerk or his/her designee shall be the custodian of the official seal for the City.

C. The City Manager or his/her designee shall be the custodian of the official logo of the City.

D. The City Clerk or his/her designee, acting as the custodian of the official seal of the City, is authorized to use the City seal on any ordinance, resolution, honoraria, certificate, notarial jurat or acknowledgment, or other instrument necessary to authenticate official City documents or to indicate institutional sanction for official, legal and ceremonial purposes.

E. The City Manager or his/her designee, acting as the custodian of the official logo of the City, is authorized to determine the appropriate usage of the logo and to ensure that the logo is used only on documents, property, and programs that reflect official City business, ownership, or endorsement, and to identify persons duly elected or appointed to a City position or office. In deciding the manner in which the City's official logo may be utilized, the City Manager shall endeavor to protect the City's brand, reputation and credibility by preventing use of the logo in such a manner as to suggest City endorsement of events, political issues, products and other uses that are not City approved.

F. It shall be unlawful for any person, firm, association or corporation to make or use the City seal, the City logo, or any portion, facsimile or reproduction thereof, or make or use any design, symbol, emblem, insignia or similar device that is an imitation of said City seal or City logo, or that may be mistaken therefor, that is designed, intended or likely to confuse, deceive or mislead the public, for private or commercial purposes, or for any purpose other than for the official business of the City without the express written consent of the City Clerk or City Manager or their designees under the authority granted by the City Council.
172
Ordinance No. 1802 Page 3

2.58.030. Violation—Penalty.

Violations of Section 2.58.020 of the Municipal Code shall be subject to the arrest and citation procedure set forth in Chapter 1.12 and criminal and administrative fines pursuant to Chapters 1.16 and 1.20.

SECTION 2: If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid, such decision shall not offset the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases are declared invalid.

SECTION 3: This Ordinance shall take effect thirty (30) days from the date of its passage. Before the expiration of fifteen (15) days after its passage, this Ordinance shall be published in a newspaper of general circulation, printed and published in the City of San Clemente.

APPROVED AND ADOPTED this _____day of _________________, ________.

ATTEST:
_______________________________ ___________________________ City Clerk of the City of Rick Loeffler, Mayor of the City of San Clemente, California San Clemente, California
173
Ordinance No. 1802 Page 4

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1802 having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
________________________________
Elizabeth A. Mitchell, CITY ATTORNEY
174
Attachment 2
175
176
Attachment 3
177
178
179
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: March 3, 2026 Agenda Item: 10C.

Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Assistant City Manager
Subject:
..titl e

CITY MANAGER COMPENSATION REVIEW AND CONSIDERATION OF A RESOLUTION

AUTHORIZING A THIRD AMENDMENT TO THE EMPLOYMENT AGREEMENT WITH CITY MANAGER ..body ANDY HALL IMPLEMENTING AN EXECUTIVE LEVEL SALARY ADJUSTMENT Fiscal Impact:

If the City Council decides to adjust the City Manager’s salary and/or fringe benefits, the fiscal impact would include the amount of any salary adjustment and the related payroll expenses and/or the cost of any fringe benefits. The City Manager’s current total annual base salary is $315,500.55.

Summary:

At the City Council meeting on February 17, 2026, the City Council reviewed the performance of City Manager Andy Hall in closed session. Government Code section 54957(b)(4) prohibits any discussion or action on proposed compensation in closed session (with limited exceptions not applicable here). Accordingly, a review of the City Manager’s compensation is being presented in open session.

Before the City Council is a draft resolution (Attachment 1) that would authorize a contract amendment to change the City Manager’s compensation as directed by the City Council with a proposed effective date of February 17, 2026. The draft resolution and contract amendment (Attachment 2) both have blanks that the City Council would need to fill in before approving.

There is no legal or contractual requirement to adjust the City Manager’s compensation; it is entirely within the City Council’s discretion.

Background:

Gary Andrew “Andy” Hall has served as City Manager for the City of San Clemente since February 20, 2023. The City Council conducted an annual performance evaluation of Mr. Hall in closed session on February 17, 2026. In accordance with state law, compensation can only be reviewed in an open meeting.

Consistent with practices applied to all executive City managers and other non-represented City staff, the City Manager has received cost of living adjustments (COLA) in parallel with represented employees during his tenure with the City and in conjunction with the Employee Memorandum of Understanding (MOU) adopted August 20, 2024. For the last two years, the City Council has also authorized adjusting the City Manager’s compensation under his Employment Agreement. Accordingly, the City Manager’s current annual base salary is $315,500.55. 180
Meeting Date: March 3, 2026 Agenda Item: 10C.

CITY OF SAN CLEMENTE 2
The attached draft Third Amendment to the Employment Agreement (Attachment 2) has a blank for the City Manager’s new compensation amount. For discussion purposes only, each onepercent (1%) adjustment would be equivalent to an increase of $3,155.01 to be added directly to the current annual base salary. Per Section 5.A of the original Employment Agreement (as amended), any adjustment must be set forth in a contract amendment. For discussion, the City Council could also choose to adjust (or not) any fringe benefits.

The Ralph M. Brown Act (specifically Government Code section 54953(c)(3)) requires that before taking final action, an oral report summarizing the recommendation on the compensation to be paid to a local agency executive be made during the open meeting.

Council Options:
 Adopt Resolution No. 26-37 authorizing the Mayor to finalize and execute a Third Amendment to the Employment Agreement with Mr. Hall for a salary increase and/or an increase in fringe benefits as specified by the City Council and direct staff to implement the change effective February 17, 2026.
 Modify and adopt Resolution No. 26-37 with different amendments to the Employment Agreement with Mr. Hall.
 Continue the item with direction given to staff.
 Deny the Resolution and do not amend the Employment Agreement, which would leave the City Manager compensation unchanged.

Environmental Review/Analysis:

Not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council provide direction to staff, make an oral report summarizing the proposed action, and, if desired, consider Resolution No. 26-37 and the draft Third Amendment to the City Manager’s Employment Agreement and fill in the blanks with respect to any changes to the salary of or fringe benefits for the City Manager desired by the City Council effective February 17, 2026.
..end
Attachment:

1. Draft Resolution No. 26-37

2. Draft Third Amendment to the Employment Agreement between the City of San Clemente and Gary Andrew “Andy” Hall

3. City Manager Employment Agreement effective February 20, 2023, including First Amendment effective February 20, 2024, and Second Amendment effective February 18, 2025
Notification:

None.
181
Attachment 1
RESOLUTION NO. 26-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

MAYOR TO FINALIZE AND EXECUTE A THIRD

AMENDMENT TO THE EMPLOYMENT AGREEMENT WITH
GARY ANDREW “ANDY” HALL IMPLEMENTING AN

EXECUTIVE LEVEL INCREASE IN COMPENSATION
WHEREAS, on February 20, 2023, the City of San Clemente (“City”) and Gary Andrew “Andy” Hall entered into an Employment Agreement (“Employment Agreement”) employing Mr. Hall as City Manager; and
WHEREAS, Section 5(A) of the Employment Agreement provides in part that adjustments to Mr. Hall’s base salary approved by the City Council are to be accomplished by an amendment to the Agreement; and
WHEREAS, effective February 20, 2024, the City and Mr. Hall entered into that certain First Amendment to Employment Agreement (“First Amendment”) increasing Mr.

Hall’s annual base salary to the City Manager classification, Range 99, Step D on the City’s Salary Schedule – Benefited Employees, which was a partial step up and a 2.99% increase; and
WHEREAS, effective February 18, 2025, the City and Mr. Hall entered into that certain Second Amendment to Employment Agreement (“Second Amendment”) increasing Mr. Hall’s annual base salary to $306,311.21, which was a 3% increase; and WHEREAS, pursuant to that certain Second Amendment, Mr. Hall’s base salary is subject to annual base salary increases as identified in Article I – Wages of the Memorandum of Understanding (MOU) between the City of San Clemente and the San Clemente City Employees’ Association (SCCEA) adopted August 20, 2024, and was increased by 3% effective July 7, 2025 to the amount of $315,500.55; and WHEREAS, the City Council concluded its annual performance evaluation for Mr.

Hall on February 17, 2026; and
WHEREAS, consistent with the terms of Mr. Hall’s Employment Agreement, as amended, and in light of his positive evaluation, the City Council finds that it is in the best interests of the City and the public to increase Mr. Hall’s current compensation; and WHEREAS, consistent with Government Code section 54953(c)(3), on March 3, 2026, in a regular City Council meeting and before taking final action, an oral report summarizing the recommendation on the compensation to be paid to a local agency executive was made during the open meeting.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:
182
Resolution No. 26-37 Page 2
SECTION 1. The foregoing recitals are true and correct and incorporated fully herein.

SECTION 2. That the Mayor is authorized and directed to finalize and execute a Third Amendment to the Employment Agreement effective February 17, 2026 in a form approved by the City Attorney that makes the following adjustments to Mr. Hall’s compensation:

A. Adjust Mr. Hall’s base salary by ____% to $_________; and B. Adjust Mr. Hall’s fringe benefits by ___________________________.

SECTION 3. That the Assistant City Manager, or his designee, is authorized and directed in consultation with the City Attorney to take such actions as are necessary and proper to accomplish the purposes and intent of this resolution.

SECTION 4. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2026.

ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the City of San Clemente, California San Clemente, California
183
Resolution No. 26-37 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. 26-37 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:

THIRD AMENDMENT TO

EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SAN CLEMENTE AND GARY ANDREW “ANDY” HALL

This Third Amendment to Employment Agreement between the City of San Clemente and Gary Andrew “Andy” Hall (this “First Amendment”) is made and entered into on this 3rd day of March 2026, by and between the CITY OF SAN CLEMENTE, a California municipal corporation (“City”), and Gary Andrew “Andy” Hall l (“Hall”) in order to modify, in writing, the terms and conditions of the City’s employment of Hall effective February 17, 2026.

R E C I T A L S:

A. City and Hall entered into an Employment Agreement (“Agreement”) on February 20, 2023;
B. Effective February 20, 2024, the City and Mr. Hall entered into that certain First Amendment to Employment Agreement (“First Amendment”); and C. Effective February 18, 2025, the City and Mr. Hall entered into that certain Second Amendment to Employment Agreement (“Second Amendment”); and D. City and Hall desire to amend the Agreement, as amended by the First and Second Amendments, in the manner provided herein.

C O V E N A N T S:

Section 1. Section 5A of the Agreement, as amended, is hereby deleted and replaced in its entirety with the following:
“A. Effective February 17, 2026, City agrees to pay Hall for services rendered an annual base salary of __________ thousand, ________ hundred, ______ dollars ($_______). Said amount shall be subject to annual base salary increases as identified in Article I – Wages of the Memorandum of Understanding (MOU) between the City of San Clemente and the San Clemente City Employees’ Association (SCCEA) adopted August 20, 2024 and future SCCEA MOUs, and shall be payable in bi-weekly installments at the same time and in the same manner as other City employees are paid. Additionally, at a public, regular meeting of the City Council, the City Council can agendize as a non-consent item, an amendment to this Agreement increasing the City Manager’s base salary payable under this Section 5A.

Section 2. Section __ of the Agreement, as amended, is hereby amended to reflect the following changes:
[_______________________________________.]
185
4899-9876-5087 v1
Section 3. Except as expressly amended by this Third Amendment, the remaining portions of the Agreement, as amended by the First and Second Amendments, shall remain in full force and effect.

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

CITY OF SAN CLEMENTE
By:________________________________
ATTEST: Rick Loeffler, Mayor
______________________________ Dated: ____________________, 2026 CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
________________________________
Finance Authorization

GARY ANDREW “ANDY” HALL
________________________________
Dated: __________________, 2026
186
Attachment 3
187
188
189
190
191
192
193
194
195
196
197
198
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: March 3, 2026 Agenda Item: (1)
199

CITY OF SAN CLEMENTE
Tuesday, February 17, 2026
City Council
Regular Meeting Minutes
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
4:30 p.m. - Closed Session
5:30 p.m. - Business Meeting
Mayor Loeffler
Mayor Pro Tem Knoblock
Councilmember Cabral
Councilmember Enmeier
Councilmember Wu
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

A Regular Meeting of the San Clemente City Council was called to order by Mayor Loeffler on February 17, 2026 at 4:30 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

PRESENT: *Cabral, Enmeier, Knoblock, **Wu and Mayor Loeffler * Councilmember Cabral arrived at 4:31 p.m.
**Councilmember Wu arrived at 4:56 p.m.

STAFF PRESENT: Andy Hall, City Manager; Elizabeth Mitchell, City Attorney; Laura Campagnolo, City Clerk; Megan Jimenez, Deputy City Clerk

CLOSED SESSION
Motion by Mayor Pro Tem Knoblock, second by Councilmember Enmeier, CARRIED 3-0 (Councilmember Cabral and Councilmember Wu absent) to recess to Closed Session at 4:31 p.m. to discuss the following:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d) (1) Number of Cases: 1
Case Name: VM Development II, LLC v. City of San Clemente Orange County Superior Court Case No.: 30-2025-01512943-CU-WM-CJC B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Discussion concerning real property transactions in compliance with Government Code section 54956.8 regarding:

Page 1 of 15 ends

200
City Council Regular Meeting Minutes February 17, 2026
Manager; Adam Atamian, Community Development Director
Negotiating Parties: Foothill/Eastern Transportation Corridor Agency, Talega Associates, LLC, and Talega Maintenance Corporation
Under Negotiations: Terms
C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code section 54957(b)
Title: City Manager
AYE: Enmeier, Knoblock and Mayor Loeffler
NOE: None
ABSENT: Cabral and Wu
Closed Session recessed at 5:22 p.m. to the Regular Business meeting.

Motion by Councilmember Enmeier, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to continue Closed Session following the end of the Regular Business meeting.

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

INVOCATION
Lead Pastor Mark Ambrose, Pacific Coast Church, gave the invocation.

PLEDGE OF ALLEGIANCE
Mayor Pro Tem Knoblock led the Pledge of Allegiance.

1. Special Presentations
None.

2. Council Member Reports
Councilmember Enmeier:
· Attended a Coastal Animal Services Authority (CASA) meeting; announced that CASA is offering a Valentine’s Day discount on adoption fees. · Met with Mary Erickson Community Housing.
· Attended the Love San Clemente volunteer day at San Clemente High School.

Councilmember Wu:
· Attended a Southern California Association of Governments (SCAG) meeting via zoom on February 5, 2026.
· Attended the Orange County Heritage Council’s Orange County Black History

Page 2 of 15 ends

201
City Council Regular Meeting Minutes February 17, 2026
Parade and Unity festival on February 7, 2026.

Councilmember Cabral:
· Attended the San Onofre Nuclear Generating Station (SONGS) Community Engagement Panel meeting on February 4, 2026.
· Attended the San Clemente Chamber of Commerce meeting on February 5, 2026.
· Attended the Golf Course Committee meeting on February 5, 2026. · Displayed a photo of a newly placed buoy to track sharks that was deployed on February 6, 2026. A hard copy of the photograph is on file with the City Clerk.
· Displayed a PowerPoint presentation of the work of the Love San Clemente volunteers at the work day on February 7, 2026; recognized organizers and volunteers. A hard copy of the presentation is on file with the City Clerk. · Watched the Super Bowl on February 8, 2026 and announced that the City is working to recognize San Clemente High School Alumni, Sam Darnold, for winning the Super Bowl with the Seattle Seahawks.
· Attended the White House Religious Liberty Commission meeting remotely on February 9, 2026.
· Met with residents concerning a drainage issue near their home on February 10, 2026.
· Met with a neighboring City on February 13, 2026 concerning the use of drones to monitor illegal fireworks on the 4th of July. · Attended the Cal Cities meeting on February 13, 2026. · Attended Cars and Coffee at the San Clemente Outlets on February 14, 2026.
· Attended a dinner with the Mayor of Newport Beach.
· Met with elected officials on February 16, 2026.

Mayor Pro Tem Knoblock:
· Met with Orange County Power Authority on February 6, 2026. · Met with an ad-hoc committee concerning the feasibility of having a small craft landing access at North Beach on February 6, 2026. · Met with state assemblywoman Dixon concerning sand resources on February 13, 2026.
· Met with San Diego County Supervisor Desmond on February 14, 2026.

Mayor Loeffler:
· Attended the San Clemente Chamber of Commerce meeting on February 5, 2026.
· Attended the Boys and Girls Club gym reopening and awards on February 5, 2026.
· Attended the Spectrum new interview/Olympic Surfing on February 6, 2026. · Attended a Short Term Lodging Unit meeting on February 6, 2026. · Attended the Homeless Collaborative meeting on February 9, 2026. · Attended the Shorecliffs Resident Community meeting on February 9, 2026.

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· Toured the Municipal Golf Course with residents concerning possible improvements on February 12, 2026.
· Met with the Business Park representative concerning water use and open land on February 13, 2026.
· Met with a developer concerning potential opportunities on February 13, 2026.
· Attended birthday celebration for W.W. II Vet at San Clemente Villas on February 16, 2026. Displayed a photograph of the birthday celebration. A hard copy of the photograph is on file with the City Clerk. · Interview with Real Estate Organization concerning San Clemente Trends on February 17, 2026.
· Attended a briefing with the City Manager and City Attorney on February 17, 2026.

3. Oral Communications (Part 1)
Susan McDevitt, Mark Erickson Community Housing, requested that the City forgive a loan that was utilized for affordable housing.

Douglas Bystry, Mary Erickson Community Housing, requested that the City forgive a loan that was utilized for affordable housing.

Sandra Kunipo, Mary Erickson Community Housing, requested that the City forgive a loan that was utilized for affordable housing.

Lois McNicoll commented on gathering signatures for petitions; opined on public participation at City Council meetings.

Linda More, San Clemente, expressed concerns regarding the City's approved marine surveillance contract with Department of Homeland Security.

Susan Rosenberger, San Clemente, expressed concerns regarding the City's approved marine surveillance contract with Department of Homeland Security.

Louise Herbert, San Clemente, expressed concerns regarding the City's approved marine surveillance contract with Department of Homeland Security.

Patricia Holloway, San Clemente, expressed concerns regarding the City's approved marine surveillance contract with Department of Homeland Security.

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

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

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5. Consideration of agendizing items requiring immediate action None.

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

Announced that Councilmember Cabral joined the meeting at 4:31 p.m.

Direction given, no reportable action concerning:

Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 1
Case Name: VM Development II, LLC v. City of San Clemente Orange County Superior Court Case No.: 30-2025-01512943-CU-WM-CJC Direction given, no reportable action concerning:

Discussion concerning real property transactions in compliance with Government Code section 54956.8 regarding:

Real Property Negotiations: APN: 701-041-06, 701-041-52, 701-041-55, 701- 041-58, 701-041-59, 701-041-62, 701-043-07, 701-043-08, 701-043-09, and 701-341-02 Property: Properties located near the eastern terminus of Avenida Pico in the City of San Clemente
City Negotiators: Andy Hall, City Manager; Brian Brower, Assistant City Manager; Adam Atamian, Community Development Director
Negotiating Parties: Foothill/Eastern Transportation Corridor Agency, Talega Associates, LLC, and Talega Maintenance Corporation
Under Negotiations: Terms
Closed Session Item C has been continued to the end of the meeting.

7. Staff Communications
Public Works Director/City Engineer Rebensdorf narrated a PowerPoint presentation concerning construction of the beach trail and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

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8. Public Hearings
8A. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION

UPDATING LEASE RATES, METHODOLOGY AND PROCESS FOR

WIRELESS TELECOMMUNICATIONS FACILITIES ON CITY OWNED

PROPERTY
Mayor Loeffler opened the public hearing.

City Planner Lightfoot narrated a PowerPoint presentation entitled "Wireless Telecommunications Lease Update" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Mindy Hartstein, T-Mobile, requested that the City Council continue this item to allow further review.

There being no others desiring to speak, Mayor Loeffler closed the public hearing.

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

Adopt Resolution 26-28, which will:

1. Adopt the staff recommended lease rate and methodology, which reflects a reduced rate version of the California Department of General Services program as indicated in Exhibit A of Attachment 1, which consists of $3,000 per month for Microcell facilities, $4,000 per month for Minicell facilities, and $5,000 per month for Macrocell facilities, all with an annual 3% escalator.

2. Repeal any prior City Council actions or resolutions in conflict with the approved lease rate and methodology.

3. Implement the new standardized lease structure for all future telecommunications company leases, or amendments of such, on City-owned property.

4. Approve the standardized telecommunications lease template, included as Exhibit B to Attachment 1.

5. Authorize the City Manager to execute future leases, using the standardized telecommunications lease template and the standardized lease structure and methodology adopted herein, that are consistent with any applicable Conditional Use Permit or City Antenna Permit.

6. Direct staff to initiate an amendment City Policy 901-1 (“Property

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Management Policies and Procedures for Lease and Sale of City-owned Property”) to formalize the City Manager’s authorization to execute leases consistent with an adopted rate schedule.

AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None
8B. PROTEST HEARING TO CONSIDER ALL WRITTEN PROTESTS AND HEAR

ALL ORAL COMMENTS TO PROPOSED WATER RATES AND FEES
PURSUANT TO PROPOSITION 218, CONSIDERATION OF A RESOLUTION

ADOPTING PROPOSED WATER FEES AND RATES WITH ANNUAL
ADJUSTMENTS AND PASS-THROUGH RATES THROUGH JANUARY 1, 2030

AND INTRODUCTION (FIRST READING) OF AN ORDINANCE AMENDING SAN CLEMENTE MUNICIPAL CODE SECTION 13.04.220 REGARDING

ADOPTION OF FUTURE WATER RATES
Mayor Loeffler opened the public hearing.

Public Works Director/City Engineer Rebensdorf announced that the City received two protests.

Public Works Director/City Engineer Rebensdorf with Sanjay Guar, Water Resources Economics, narrated a PowerPoint presentation and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

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

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

1. Adopt Resolution No. 26-29 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, MAKING

FINDINGS FOLLOWING PROTEST HEARING, AND ADOPTING WATER

RATES AND CHARGES, WITH ANNUAL ADJUSTMENTS AND
PASS-THROUGH RATES THROUGH JANUARY 1, 2030.

2. Introduce and conduct a first reading of Ordinance No. 1799 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SECTION 13.04.220 OF THE CITY OF SAN CLEMENTE MUNICIPAL CODE RELATING TO WATER RATES.

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

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9. Unfinished Business
None.

10. New Business
10A. INTRODUCTION (FIRST READING) OF ORDINANCE NO. 1800 TO AMEND SECTION 3.40.030 OF THE SAN CLEMENTE MUNICIPAL CODE TO REVISE

THE DEFINITION OF LOCAL BUSINESS FOR THE LOCAL PREFERENCE

PROGRAM
Motion by Mayor Pro Tem Knoblock, second by Councilmember Cabral, CARRIED 5-0, to introduce and conduct a first reading of Ordinance No. 1800 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN

CLEMENTE, CALIFORNIA, AMENDING SAN CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.40, SECTION 3.40.030(A)

RELATING TO THE DEFINITION OF LOCAL BUSINESS FOR THE LOCAL VENDOR PREFERENCE.

AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None
10B. INFORMATIONAL REPORT ON THE STATUS OF THE EXTENSION OF THE

PILOT GOAT-GRAZING PROJECT
Community Development Director Atamian reviewed the contents of the Administrative Report and responded to City Council inquiries.

Mike Kay recognized the City Council for their support of the goat grazing program.

Motion by Councilmember Cabral, second by Mayor Pro Tem Knoblock, CARRIED 5-0, to receive and file the Administrative Report dated February 17, 2026 and on file with the City Clerk.

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

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11. Consent Calendar
The City Council requested item 11E be removed from the Consent Calendar for discussion.

Public Comment
Item 11H - Fee Waiver for "Beach Church".

George Gregory, San Clemente, spoke in opposition to the fee waiver.

A. City Council Minutes
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF FEBRUARY 3, 2026.

AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None
B. Commission/Committee Minutes
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to:
(1) GOLF COURSE COMMITTEE REGULAR ADJOURNED MEETING MINUTES OF NOVEMBER 20, 2025.
(2) PLANNING COMMISSION REGULAR MEETING MINUTES OF JANUARY 21, 2026.
(3) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF JANUARY 22, 2026.
(4) DESIGN REVIEW SUBCOMMITTEE REGULAR MEETING MINUTES OF JANUARY 28, 2026.

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

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C. Warrant Register
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to:
(1) APPROVE WIRE TRANSFER NOS.
3374 THROUGH 3377 AND WARRANT NOS.
609421 THROUGH 609527, PAID ON
1-23-26, IN THE AMOUNT OF $2,356,655.41
(2) APPROVE WIRE TRANSFER NOS.
3378 THROUGH 3379 AND WARRANT NOS.
609528 THROUGH 609671, PAID ON
1-30-26, IN THE AMOUNT OF $1,085,158.22
(3) APPROVE WIRE TRANSFER NOS.
3380 THROUGH 3387 AND WARRANT NOS.
609672 THROUGH 609782, PAID ON
2-6-26, IN THE AMOUNT OF $3,852,900.52
TOTAL WARRANT REGISTER $7,294,714.15
AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None
Payroll Register
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to:

APPROVE AUTOMATIC DEPOSIT
ADVISES 109263 THROUGH 109575,
FOR THE PERIOD 1-5-26 THROUGH
1-18-26, PAID ON 1-23-26, IN
THE AMOUNT OF $536,757.78
APPROVE WARRANT NO. 993, AND
AUTOMATIC DEPOSIT ADVISES 109576
THROUGH 109907, FOR THE PERIOD
1-19-26 THROUGH 2-1-26, PAID
ON 2-6-26, IN THE AMOUNT OF $570,098.11
TOTAL PAYROLL REGISTER $1,106,855.89
AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None

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11D. CONTRACT AWARD - ALLEY PAVEMENT REHABILITATION PROGRAM,

AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to:

Adopt Resolution No. 26-30, which will:

1. Find the Alley Pavement Rehabilitation Program, CIP Project Nos. 16316 and 15316 and 12305, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award the Alley Pavement Rehabilitation Program, CIP Project Nos. 16316 and 15316 and 12305, contract to Eagle Paving LLC.

3. Approve, and authorize the City Manager to execute, Contract No. C26-15, by and between the City of San Clemente and Eagle Paving, LLC., for the Alley Pavement Rehabilitation Program, in an amount not to exceed $338,400, in a form substantially similar to Contract No. C26-15 (Attachment 2).

AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None
11F. CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER

TO NEGOTIATE AND EXECUTE AN EMERGENCY LETTER AGREEMENT

AND A COOPERATIVE AGREEMENT WITH ORANGE COUNTY

TRANSPORTATION AUTHORITY (OCTA) TO INSTALL AND MANAGE A TEMPORARY SEWER BYPASS, IN AN ESTIMATED AMOUNT OF $690,911;

APPROVING AN EXEMPTION TO THE FORMAL BIDDING PROCESS DUE TO A BONA FIDE EMERGENCY; AWARDING AN EMERGENCY

CONSTRUCTION CONTRACT TO VORTEX SERVICES, LLC DBA SANCON

TECHNOLOGIES FOR THE INSTALLATION OF A CURED-IN-PLACE PIPE (CIPP) LINER IN AN AMOUNT NOT TO EXCEED $247,008; AND FINDING

THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to:

Adopt Resolution No. 26-32, which will:

1. Find the project statutorily exempt from the California Environmental Quality Act (CEQA) under Section 15269(b) of the CEQA Guidelines (14 CCR 15269(b)) for emergency repairs.

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2. Authorize the City Manager to negotiate and execute a letter agreement to reimburse OCTA to manage and install a temporary sewer bypass, in an amount estimated at $690,911.

3. Authorize the City Manager to negotiate and execute a final Cooperative Agreement with OCTA for the temporary sewer bypass with key terms similar to those in the letter agreement.

4. Make a finding that an emergency exists due to the potential failure of the City’s beach trunk sewer line while OCTA’s contractor Condon Johnson & Associates is completing the work on the catchment wall for Area 3, and to prevent a sewer spill and protect public health and safety.

5. Declare that the public interest and necessity demand the immediate expenditure of public funds to safeguard public health and approve an exemption to the formal bidding process due to a bona fide emergency.

6. Approve, and authorize the City Manager to execute, Contract No. C26-17, an emergency contract, by and between the City of San Clemente and Sancon Technologies, Inc., providing for the installation of a cured-in-place pipe (CIPP) liner, in an amount not to exceed $247,008.

AYE: Cabral, Enmeier, Knoblock, Wu and Mayor Loeffler
NOE: None
11G. CONSIDERATION OF A FEE WAIVER REQUEST FOR SAN CLEMENTE HIGH

SCHOOL SWIM TEAM SPRING PRACTICE AT THE SAN CLEMENTE

AQUATIC CENTER
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to adopt Resolution No. 26-33 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING A

FEE WAIVER FOR USE OF THE SAN CLEMENTE AQUATIC CENTER BY SAN CLEMENTE HIGH SCHOOL FOR SPRING SWIM TEAM PRACTICES.

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

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11H. CONSIDERATION OF A FEE WAIVER REQUEST FOR CHRIST LUTHERAN CHURCH “BEACH CHURCH” SUNDAY SERVICES AT NORTH BEACH FOR CALENDAR YEAR 2026
Motion by Councilmember Enmeier, second by Councilmember Wu, CARRIED 5-0, to adopt Resolution No. 26-34 entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING A PARTIAL FEE WAIVER FOR CHRIST LUTHERAN CHURCH’S “BEACH
CHURCH” SUNDAY SERVICES AT NORTH BEACH FOR CALENDAR YEAR 2026.

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

ITEM REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
11E. CONSIDERATION OF A RESOLUTION MODIFYING THE SENIOR MOBILITY

PROGRAM TO LIMIT THE NUMBER OF RIDES ALLOWED PER RIDER,

AWARDING A CONTRACT TO OCY MANAGEMENT, LLC FOR SENIOR

MOBILITY PROGRAM TRANSPORTATION SERVICES, APPROVING
SUPPLEMENTAL APPROPRIATIONS TOTALING $70,000, AND FINDING

THE PROJECT STATUTORILY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Motion by Mayor Loeffler, second by Councilmember Wu, CARRIED 5-0, to:

Adopt Resolution No. 26-31, 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 the modification of the Senior Mobility Program to limit each rider to eight (8) one-way rides per month with the exemption of rides to and from the Dorothy Visser Senior Center. Directing staff to return to the City Council by June 2026 with an update on financial impacts to the program.

3. Approve supplemental appropriations in the amount $56,000 from the Senior Mobility Fund (015) to Account No. 015-806-44723-000-00000 and $14,000 from the General Fund (001) to Account No. 001-203-47012-000-00000.

4. Award a Professional Services Agreement to OCY Management LLC for Senior Mobility Program; and

5. Approve, and authorize the City manager to execute, Contract No. C26-16, by and between the City of San Clemente and OCY Management, LLC., providing for the Senior Mobility Program, for a four-month term through June 30, 2026 in an amount not to exceed $70,000.

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6. Authorize the City Manager to approve up to three one-year contract extensions in an amount not to exceed $180,000 per year from July 1, 2026 through June 30, 2029, exercisable at the City Manager’s discretion.

7. Direct staff to contact the Village to determine if their transportation program can supplement transportation for the Senior Mobility Program and provide an update by June 2026.

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

12. Oral Communications (Part 2)
None.

13. Future Agenda Items
Mary Erickson Community Housing Loan
Councilmember Enmeier, with the support of Mayor Pro Tem Knoblock, Mayor Loeffler and Councilmember Cabral, agendized a review of the Mary Erickson Community Housing loan and request for loan forgiveness.

14. Reports
A. City Attorney
None.

B. City Manager
None.

CLOSED SESSION
Motion by Mayor Pro Tem Knoblock, second by Mayor Loeffler, CARRIED 5-0, to recess to Closed Session at 7:04 p.m. to discuss Item C.

City Attorney Mitchell announced that there is no anticipated action being taken in Closed Session that would require to be reported.

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

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The City Council recovened at 7:46 p.m.

City Attorney Mitchell reported that direction was given, no reportable action concerning:

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code section 54957(b)
Title: City Manager

15. Adjournment
Motion by Mayor Pro Tem Knoblock, second by Councilmember Enmeier, CARRIED 5-0, to adjourn at 7:47 p.m. The next Regular Meeting will be held on March 3, 2026. Closed Session will begin at 4:30 p.m.The Business Meeting will commence at 5:30 p.m. The meeting will take place at City Hall Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

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

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AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: (1)
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AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: (2)
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AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: (3)
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AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: (4)
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AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: (5)
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Minutes to be presented for approval at the Adjourned Regular Meeting of the Community Safety and Welfare Committee on February 24, 2026.

CITY OF SAN CLEMENTE

MINUTES OF THE ADJOURNED REGULAR MEETING OF THE

COMMUNITY SAFETY AND WELFARE COMMITTEE
DECEMBER 16, 2025

CALL TO ORDER/ROLL CALL
The Adjourned Regular Meeting of the City of San Clemente Community Safety and Welfare Committee was called to order on December 16, 2025, at 3:05 p.m. The meeting was held at San Clemente City Hall, Community Room, located at 910 Calle Negocio, San Clemente, California.

Committee
Members Present: Stuart Anderson, Michael Greenwald, Tom Hazelton, Rosemary Salas, Michael Spohn, Gary Walsh; James Allen
Royer arrived at 3:26 p.m. during item 5.A.

Absent: None
Staff Present: Andy Hall, City Manager
Rod Mellott, Marine Safety Chief
Adam Atamian, Community Development Director
Maile Stivers, Public Information Coordinator

PLEDGE OF ALLEGIENCE
Mayor Rick Loeffler led the Pledge of Allegiance.

1. PRESENTATIONS
A. Orange County Sheriff’s Department – Deputy Martin presented OCSD information, and responded to committee member inquiries.

B. Orange County Fire Authority – Chief Cheyne Maule presented OCFA quarterly statistics and activities; and responded to committee member inquiries.

C. San Clemente Marine Safety - Chief Rod Mellott presented quarterly statistics and Marine Safety activities, and responded to committee member inquiries.

D. San Clemente Park Rangers – None.

2. APPROVAL OF MINUTES
A. October 28, 2025 Special Meeting Minutes
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Minutes of the Special Meeting of Community Safety and Welfare Committee of December 16, 2025 Page 2

MOTION BY COMMITTEE MEMBER ANDERSON, SECOND BY VICE CHAIR SALAS, TO APPROVE THE MINUTES. THE MOTION CARRIED 6-0-1 WITH COMMITTEE MEMBER SPOHN ABSTAINING.

3. ORAL COMMUNICATIONS
None.

4. UNFINISHED BUSINESS
None.

5. NEW BUSINESS
A. Parking on Public Streets in Excess of 72 Hours
Andy Hall, City Manager and Adam Atamian, Community Development Director, summarized the contents of the administrative report and responded to committee member inquiries. Deputy Martin responded to committee member inquiries.

Dee Coleman, San Clemente, presented information regarding vehicles stored on a residential street; opined an ordinance should be adopted to require vehicles to move a minimum distance each 72 hours; noted ordinances in other cities; and responded to committee member inquiries.

Committee members discussed residential parking permit programs, methods of determining vehicle movement, practices in other cities, and street sweeping signage.

CHAIR GREENWALD DIRECTED THE “VEHICLE AND E-BIKE SAFETY PROGRAMS” SUBCOMMITTEE TO REVIEW THE ITEM.

B. Selection of One Committee Member to Serve on the Social Service/Community Service Budget Committee
Adam Atamian, Community Development Director, summarized the responsibility of the Social Service/Community Service Budget Committee.

Committee Members Anderson, Salas and Royer expressed interest in participating.

CHAIR GREENWALD APPOINTED COMMITTEE MEMBER ANDERSON TO
THE SOCIAL SERVICE/COMMUNITY SERVICE BUDGET COMMITTEE.

6. COMMUNICATIONS
A. Junior Leadership Program
Vice Chair Salas communicated the success of the recent Junior Leadership presentation.
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Minutes of the Special Meeting of Community Safety and Welfare Committee of December 16, 2025 Page 3 B. Potential E-Bike Licensing
Andy Hall, City Manager communicated possible regulation or legislation related to e-bikes.

C. Community Safety and Welfare Items
Chair Greenwald communicated a desire to form a Neighborhood Watch Subcommittee; and requested a CERT update at a future meeting.

7. ITEMS FROM SUBCOMMITTEES
A. Homelessness – Anderson/Walsh
Committee Members Anderson and Walsh reported recent activities of the Homelessness Subcommittee including meeting with Community Outreach Workers and discussed available shelter beds and cold weather supplies.

B. Fire Mitigation – Hazelton/Salas/Walsh
Committee Members Hazelton, Salas and Walsh reported recent activities of the Fire Mitigation Subcommittee including discussing the direction of the Subcommittee, OCFA activities, City fire mitigation efforts including Local Hazard Mitigation Plan, outreach to neighboring cities, a community siren warning system, business property mitigation efforts, and enforcement.

C. Improvement of Park Ranger Program – Greenwald/Royer Chair Greenwald reported recent activities of the Improvement of Park Ranger Program Subcommittee including an upcoming meeting with Park Ranger staff.

D. Humanitarian Award – Anderson/Salas
Vice Chair Salas reported recent activities of the Humanitarian Award Subcommittee including status of past recipient of the Humanitarian Award.

E. Vehicle and E-Bike Safety Programs – Royer/Salas
Committee Member Spohn was appointed to the E-Bike Safety Programs Subcommittee.

F. Communication and Disaster Preparedness – Greenwald/Hazelton Committee Member Spohn was appointed to the Communication and Disaster Preparedness Subcommittee.

8. ADJOURNMENT

VICE CHAIR SALAS MOVED AND COMMITTEE MEMBER HAZELTON
SECONDED A MOTION TO ADJOURN THE MEETING AT 5:09 P.M. TO AN

ADJOURNED REGULAR MEETING OF THE COMMUNITY SAFETY AND
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Minutes of the Special Meeting of Community Safety and Welfare Committee of December 16, 2025 Page 4 WELFARE COMMITTEE SCHEDULED TUESDAY, FEBRUARY 24, 2026 AT 3:00PM IN THE CITY HALL COMMUNITY ROOM LOCATED AT 910 CALLE NEGOCIO, SAN CLEMENTE, CA 92673.

Respectfully submitted,
______________________________
Michael Greenwald, Chair
Attest: ______________________________
Andy Hall, City Manager
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910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: (6)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR MEETING MINUTES OF FEBRUARY 18, 2026 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
239

MINUTES OF THE REGULAR MEETING

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
February 18, 2026 @ 6:00 p.m.

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

1. CALL TO ORDER
Vice Chair Camp called the Regular Meeting of the Planning Commission of the City of San Clemente to order at 6:03 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 McCaughan led the Pledge of Allegiance.

3. ROLL CALL
Commissioners Present: Vice Chair M. Steven Camp; Chair Pro Temp Scott McKhann; Gary McCaughan (arrived at 6:06 p.m.); Brett Freeman; Patrick Griffin; and Karen Prescott-Loeffler
Commissioners Absent: Chair Cameron Cosgrove
Staff Present: Zach Rehm, Principal Planner
David Carrillo, Lead Project Planner
Alexia Gruszczynski, Assistant Planner
Gena Burns, Deputy City Attorney
Tamara Tatich, Recording Secretary
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

4. SPECIAL ORDER OF BUSINESS/SPECIAL PRESENTATION
None.

5. MINUTES
A. Receive and file Minutes from the Planning Commission Regular Meeting of December 17, 2025.

DRAFT
240
Planning Commission Regular Meeting Minutes of February 18, 2026 Page 2

IT WAS MOVED BY COMMISSIONER PRESCOTT-LOEFFLER, SECONDED BY COMMISSIONER MCCAUGHAN, AND CARRIED 5-1, COMMISSIONER GRIFFIN

ABSTAINED, VICE COSGROVE ABSENT, TO RECEIVE AND FILE THE MINUTES FROM THE REGULAR MEETING OF DECEMBER 17, 2025.

B. Receive and file Minutes from the Planning Commission Regular Meeting of January 21, 2026.

IT WAS MOVED BY COMMISSIONER GRIFFIN, SECONDED BY COMMISSIONER FREEMAN, AND CARRIED 5-1, COMISSIONER PRESCOTT-LOEFFLER ABSTAINED,

CHAIR COSGROVE ABSENT, TO RECEIVE AND FILE THE MINUTES FROM THE REGULAR MEETING OF JANUARY 21, 2026.

6. ORAL AND WRITTEN COMMUNICATIONS
None.

7. CONSENT CALENDAR
None.

8. PUBLIC HEARING
A. Public Hearing Permit (PHP) 25-516, Animal Hospital, 43 Via Pico Plaza A public hearing to request the Planning Commission to approve Conditional Use Permit (CUP) 25-556 to establish a 3,340 square foot animal hospital in existing commercial space within the Pico Plaza shopping center.

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).

Assistant Planner Gruszczynski summarized a presentation titled, “Animal Hospital Public Hearing Project (PHP) 25-516 & Conditional Use Permit (CUP) 25-556, February 18, 2026.” A copy of the presentation is available by contacting the City of San Clemente Planning Division and highlighted the project location within Pico Plaza; the project description with hours of operation and animal waste plan; site and floor plans; and a parking analysis.

Commissioner Freeman disclosed that he performed a site visit prior to the meeting. Having heard no other disclosures, Vice Chair Camp opened the public hearing.

Commissioners Questions and Discussion:
• The hours of operation were proposed by the applicants and not staff, and other established businesses in the center will also be operating during the applicant’s proposed hours of operation.

DRAFT
241
Planning Commission Regular Meeting Minutes of February 18, 2026 Page 3 • The animal hospital is projected to have twelve full-time staff members. • Location of the waste bag dispenser was discussed.
• Staff clarified that there are no tenant-restricted parking spaces and that all the tenants, their staff, and customers use the entire parking area; although the new use intensifies the parking more than the previous tenant, a surplus of 72 spaces remains.

Applicant’s Representative Presentation:

Yubin Xie, the applicant’s designer, provided a brief presentation and confirmed that there are to be 12 full time staff members on site and that the applicant proposed the hours of operation. He also confirmed that the animal hospital would be able to support those entering the tenant space with multiple pets in their respective family.

Vice Chair Camp closed the public hearing.

CHAIR PRO TEM MCKHANN MADE A MOTION, SECOND BY COMMISSIONER PRESCOTT-LOEFFLER, MOTION PASSED 6-0, CHAIR COSGROVE ABSENT TO

DETERMINE THE PROJECT IS CATEGORICALLY EXEMPT FROM THE
REQUIREMENTS OF CEQA PURSUANT TO THE CEQA GUIDELINES §15301 AND TO ADOPT RESOLUTION PC 26-004 APPROVING CONDITIONAL USE PERMIT 25-556 ANIMAL HOSPITAL, 43 VIA PICO PLAZA, SUBJECT TO THE CONDITIONS OF APPORVAL.

9. NEW BUSINESS
A. Batch Zoning Amendments Introduction
Staff is seeking feedback on an introduction of zoning code amendments that are to cleanup and clarify sections of the Zoning Code as part of the City’s ongoing batch zoning amendment updates.

Lead Project Planner Carrillo and Assistant Planner Gruszczynski summarized a presentation titled, “Cleanup Batch Amendments, February 18, 2026.” A copy of the presentation is available by contacting the City of San Clemente Planning Division. The report highlighted the priority to improve the development review process and clarify or update the code as City Council initiated on May 20, 2025; the goal of the meeting is to introduce the cleanup amendments to the Planning Commission to provide feedback and direction to staff for landscaping requirements, vacation rentals, and the commercial use table.

Landscaping:

Staff explained that the amendment provides clarity between “planting” versus “landscaping” versus “permeable.” There is an additional definition included for “vertical landscape.”
There was discussion on setbacks; percentage of landscape surface required to have plant material, native and drought tolerant plants; artificial turf and DRAFT
242
Planning Commission Regular Meeting Minutes of February 18, 2026 Page 4 hardscape; compliancy with Model Water Efficiency Landscape Ordinance; providing public resources and guidance on landscaping; and code enforcement.

Principal Planner Rehm stated that staff will notate the areas the Commission would like to further discuss, that one-on-one sessions to review the amendments are available if requested; option to provide more specificity in the type of landscaping desired across the city.

Short Term Apartment Rentals:

Lead Project Planner Carrillo noted the removal of this item from the current batch to allow more time to refine the amendment, considering the 2028 Olympic Games, which led to Planning Commission discussion on options and opportunities.

Commercial Use Table:

Lead Project Planner Carrillo noted unintended changes in the 2014 General Plan Update in the Neighborhood Commercial (NC) zones. This update is to make the NC1.2 uses consistent with the NC2 zone, and staff explained the differences in the zones and the proximity of the two focused areas.

Principal Planner Rehm advised that staff will bring the Landscaping and Commercial Use Table items to the Commission in a month or two; and that the STAR item will be presented in six to eight months. Future Planning Commission meetings will include staff presentation and discussion of other draft zoning amendment topics.

10. OLD BUSINESS
None.

11. REPORTS OF COMMISSIONERS AND STAFF
A. Commissioner Reports
Chair Pro Tem McKhann advised he was unable to attend the February 25, 2026 Design Review Subcommittee (DRSC) meeting due to his residential proximity within 500 sq. ft. of the project being presented.

Alternate DRSC member Freeman stated his availability to attend the meeting.

B. Tentative Future Agenda
Written report provided.

C. Administrative Permit Report
Written report provided.

DRAFT
243
Planning Commission Regular Meeting Minutes of February 18, 2026 Page 5 D. Staff Reports
None.

12. ADJOURNMENT
The Planning Commission adjourned to the Regular Meeting of the Planning Commission to be scheduled for Wednesday, March 4, 2026 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,
___________________________
M. Steven Camp, Vice Chair
Attest:
___________________________
Zach Rehm, Secretary to the Planning Commission
DRAFT
244
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: March 3, 2026 Agenda Item: (7)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF FEBRUARY 19, 2026 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
245

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING

OF THE ZONING ADMINISTRATOR
February 19, 2026
San Clemente City Hall
First Floor Community Room
910 Calle Negocio
San Clemente, California 92673

1. CALL TO ORDER
Zoning Administrator (ZA) Adam Atamian called the Regular Meeting of the City of San Clemente Zoning Administrator to order on February 19, 2026 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
Araceli Mejia, Assistant Planner
Tamara Tatich, Administrative Assistant

2. MINUTES
A. Receive and file Minutes for the January 22, 2025 Regular Zoning Administrator Meeting.

ZA Atamian received and filed the Zoning Administrator Regular Meeting Minutes of January 22, 2025.

3. ORAL AND WRITTEN COMMUNICATION
None.

4. PUBLIC HEARING
A. Public Hearing Project (PHP) 25-499, Preece Star, 309 W. Avenida Palizada A request for the Zoning Administrator to approve Short Term Apartment Rental (STAR) 25-551 to establish one Short-Term Apartment Rental located at 309 W. Avenida Palizada, Unit A; and one Short-Term Manager’s Unit located at 309 W. Avenida Palizada, Unit B.

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).

DRAFT
246
Zoning Administrator Regular Meeting February 19, 2026 Page 2 Assistant Planner Mejia summarized the staff report in a presentation titled “Preece STAR, PHP26-499, STAR25-551,” a copy of which can be requested by contacting the Planning Division. The report highlighted the property location, project overview, analysis and a site plan.

Upon completion, staff introduced the applicant, Robert Preece who thanked staff and expressed his anticipation of an approval.

ZA Atamian opened the public hearing.

ZA Atamian noted a discrepancy in the presentation in that the unit is limited to four guests, but the Resolution and staff report state six. ZA Atamian expressed parking concerns, as the plan indicated a laundry room in the garage, potentially reducing parking space. ZA Atamian stated he was unable to locate the permit for the laundry room when conducting his research on the project.

Mr. Preece stated the property manager is his mother-in-law and she does not drive, and that the guests will be limited to one car that is parked in the driveway. ZA Atamian expressed concern for future parking if the property manager should change and has a vehicle.

ZA Atamian closed the public hearing and stated that the property is a good location for a short-term apartment rental and is close to the walkable downtown.

Action: The Zoning Administrator determined the project is Categorically Exempt from the requirements of CEQA pursuant to CEQA Guidelines §15301 (Class 1:

Existing Facilities); and moved to approve Public Hearing Project 25-499 and Short-Term Apartment Rental 25-551, Preece STAR, 309 W. Avenida Palizada, subject to the Conditions of Approval with the following modifications:
• Change Resolution Page 3, Item D2 to reflect four (4) guests; • Change Conditions of Approval Page 2, Condition 7.15 to reflect four (4) guests and guests are expected to store their vehicle within the available parking space on site; and
• Add Condition of Approval 7.16: Guests of the Short-Term Apartment Rental shall be limited to one (1) vehicle and shall advertise as such on their listing.

B. Public Hearing Project (PHP) 25-257, Taco Bell Remodel, 918 S. El Camino Real
A request for the Zoning Administrator to approve Development Permit (DP) 25- 259, for an exterior remodel of an existing Taco Bell Restaurant with a new outdoor dining area of less than 16 seats within the Architectural Overlay.

DRAFT
247
Zoning Administrator Regular Meeting February 19, 2026 Page 3 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 15303 (Class 3: New Construction or Conversion of Small Structures).

Assistant Planner Mejia summarized the staff report in a presentation titled “Taco Bell Remodel, PHP25-257, DP25-259,” a copy of which can be requested by contacting the Planning Division. The report highlighted the property location, project overview, analysis and proposed plans.

ZA Atamian opened the public hearing.

Staff introduced the applicant, Dru Fanticola who had nothing to add to the staff presentation.

ZA Atamian inquired about the previous updates to the building and the rational for the remodel. Mr. Fanticola stated only paint and new signage was needed in the ten years he owned the franchise; remodels are required under the franchise agreement to maintain the Taco Bell brand; that the previous update was a “midterm” and this type is a “successor that is more involved with furniture, entryways, cashier stations, signage, flooring and ceilings. The successor remodel is to achieve the new look and feel of today’s Taco Bell.

ZA Atamian inquired the design process and Mr. Fanticola stated there were several meetings with staff with reviews conducted by the Senior Planner and City Planner who determined the project met the criteria for architectural review and did not require Design Review Subcommittee (DRSC) review.

ZA Atamian expressed concern surrounding the purple entryways in that it didn’t comply with the design guidelines for a building located along the main, highlytraveled arterial road. ZA Atamian believed there are opportunities to design more consistently with the other buildings in the area, and requested the project be reviewed by the DRSC to get feedback on the color treatment and layering of the building design. ZA Atamian stated the importance of the building’s location and the DRSC needs to be involved in the process.

Mr. Fanticola expressed his frustration with the process. ZA Atamian directed staff to expedite the process by submitting the project in the following week’s DRSC meeting and continuing the discretionary hearing to a Special Zoning Administrator meeting.

The public hearing remained open.

DRAFT
248
Zoning Administrator Regular Meeting February 19, 2026 Page 4 Action: The Zoning Administrator referred Public Hearing Project 25-257, Development Permit 25-259, Taco Bell Remodel, 918 S. El Camino Real, to be reviewed at the Design Review Subcommittee Regular Meeting on Wednesday, February 25, 2026 at 3:00 p.m.; and continued the discretionary hearing to the Zoning Administrator Special Meeting on Thursday, March 5, 2026 at 2:00 p.m.

5. NEW BUSINESS
A. Review of Tentative Future Agendas (TFA)
No changes the TFA were made.

6. OLD BUSINESS
None.

7. ADJOURNMENT
Zoning Administrator Atamian adjourned the Special meeting of the Zoning Administrator to be held at 2:00 p.m. on Thursday, March 5, 2026, followed by the Regular meeting at 3:00 p.m., 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 Adminis
DRAFT
trator
249
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: March 3, 2026 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Warrant Nos.
609783 through 609915, paid on
2-13-26, in the amount of $2,477,989.53
TOTAL WARRANT REGISTER $2,477,989.53 ..end
250

CITY OF SAJN CLEMEISJTE

CERTIFICATION OF WARRANTS

I HEREBY SUBMIT THE ATTACHED

WARRANT REGISTER FOR AUDIT

AND APPROVAL BY THE CITY

COUNCIL, CITY OF SAN CLEMENTE

APPROVED AND ORDERED PAID AT

THE MEETING OF THE CITY COUNCIL

HELD ON
IN THE AMOUNT OF $2,477,989.53
DATED ON 02/"1 3/2026

CITY MANAGER MAYOR
ATTEST:

CITY CLERK

I HEREBY CERTIFY TO THE ACCURACY OF THE FOREGOING

DEMANDS AND THAT FUNDS ARE AV AILABLE FOR PAYMENT
THEREOF:

PAID BY WARRANTS SIGNED BY LEGALLY

DESIGNATED PERSONS IN ACCORDANCE

WITH THE STATE OF CALIFORNIA
GOVERNMENT CODE, SECTION-41003

FINANCE MANAGER CITY TREASURER
251
apChkLse
02/12/2026 9:07:58AM
Final Check List

SAN CLEMENTE
Page: 1
Bank : city BMO
Check #
609783
609784
Date Vendor
2/13/26 035116
2/13/26 000042
609785
609787
2/13/26 015621
2/13/26 034565

ACCESS CONTROL SECL

AKM CONSULTING ENGI)

ALEXANDER'S CONTRAC

AMAZON BUSINESS
Invoice Inv Date Description
0072640 1/27/26
0013829 2/4/26
0013816 2/3/26
20261300014 /30/26
QTM-W3FW-X' /26/26
NJX-XKGK-XD /27/26
G9L-JWYN-QX /27/26
1 PR-V6W4-R7( /30/26
RL3-HDMJ-L9'T /27/26
KHD-7G6D-J9( /28/26
F7D-JN11-JKlj /12/26
6QF-PMN3-PK' 2/2/26
QYQ-4NYW-N( 2/2/26
7Y1 -J4C6-GMV 2/2/26
NGL-FWHD-IC 2/3/26
FWX-R9YH-NC /12/26
Y6L-XWM7-LYI /al5/26
D9V-J6JT-iFC' /20/26
YFT-PKFF-NLJ /"12/26
44G-CXL1-N9)t /12/26
YFT-PKFF-MV /12/26
4NW-PNCN-V!: /26/26
WXK-FL6F-T9, /12/26
4YF-YRCH-JJF /"15/26
GVJ-4PTJ-QRj /15/26
K6G-PJHM-N41 /29/26
F3F-4LTR-NR(: /12/26
GTF-NDVT-MY /20/26
RJ1-DRDR-LD: /21/26
P4D-VRR7-KY; /21/26
Y9Q-P\/Y7-W4 /23/26
RL3-HDMJ-4Ml /26/26
316-9J6Q-4C7( /26/26
WC9-LWWL-C' /28/26

PRIVATE PARKING ENFORCE
WELL WATER QUALITY SYSPROFESSIONAL ENGINEERlTh

METER SERVICE CONTRACT

SUPPLIES

SUPPLIES
Amount Paid
1 ,504.00
3,656.00
1 ,883.00
2 2,344.39
158.29

28.64 437.00
2 ,596.07
224.31
348.59

75.41 57.84
140.06

78.14 66.52

21.30 58.75

21.30 8.40

7.08 200.95
203.68
3 ,056.35

26.93 57.08
914.59
328.58

15.70 81 .35
4 5.24

85.92 161.99
492.79

27.30 Check Total
1,504.00
5,539.00
22,344.39
Page: 1
252
ape'hkLst
02/12/2026 9:07:58AM
Final Check List

SAN CLEMENTE
Page: 3
Bank : city BMO
Check #
609807
609808
609809
Date Vendor
2/13/26 037343
2/13/26 009040
2/13/26 019519
609810
609811
2/13/26 028815
2/13/26 026046
609812
609813
609814
2/13/26 001394
2/13/26 001086
2/13/26 006090
609815
609816
2/13/26 000168
2/13/26 002749
(Continued)
Invoice
CAPITOL ADVOCACY LLC 999153
CDW GOVERNMENT INC. AH8175P
CINTAS CORPORATION 9357462887
9356879157
CMCPLUS LLC 357365
COLTS LANDSCAPE INC 2425
2427
2385
2386
2387
2429
2428
2426
2393
2392
COOK PGA GOLF SHOP II 020926
COUNTY OF ORANGE PW260304
COX COMMUNICATIONS 049223401
049230901
CWEA - TCP 61311
DELTA DENTAL OF CALIFI BEOO6929171
Inv Date Description
1/31/26
1/29/26
1/30/26
1/27/26
12/21/25
2/2/26
2/2/26
1/22/26
1 /22/26
1 /23/26
2 /2/26
2/2/26
2/2/26
1/28/26
1 /28/26
2 /9/26
11/3/25
1/22/26
1 /4/26
1/20/26
1/31/26

LEGISLATIVE ADVOCACY SEI
ACCOUNT #3234512 BATTER'

UNIFORM RENTAL

CMCREC ANNUAL FEE AND

COLTS - LANDSCP EAST - SU
COLTS - STREETSCAPES - Sl

COLTS - LANDSCP EAST - SU

COLTS - LANDSCP EAST - BA
COLTS - BCHS, ACCESS & Pli
COLTS - STREETSCAPES - Eli
COLTS - STREETSCAPES - St
COLTS - STREETSCAPES - Sl
02/02/26 - 02/08/26 WEEKLY P
FY 25-26 SOUTH ORANGE C(
MONTHLY COX SCADA COMt'i
MONTHLY COX SCADA COMTh
MEMBERSHIP RENEWAL - A.
05-0879300000DENTAL CLAIIV
Amount Paid
2,580.00
1 ,903.23
322.93

33.88 47,250.00
2,087.96
1,260.00
750.00
480.00
430.00
61 ,57"l.79
18,422.53
25,422.67
810.30
225.00
22,149.96
7,446.02

59.65 119.30
251 .00
22,520.59
Check Total
2,580.00
1 ,903.23
356.81
47,250.00
111,460.25
22,149.96
7,446.02
178.95
251.00
22,520.59
Page:3
253
apChkLst
02/12/2026 9:07:58AM
Final Check List

SAN CLEMENTE
Page: 5
Bank : city BMO
Check #
609824
609825
609826
609827
609828
609829
609830
609831
609832
609833
609834
609835
609836
609837
609838
609839
Date Vendor
2/13/26 010878
2/13/26 000026
2/13/26 012157
2/1 3/26
2/1 3/26
2/1 3/26
2/1 3/26
2/1 3/26
037680
034002
038246
015477
002662
2/13/26 013107
2/13/26 030042
2/13/26 001926
2/13/26 037236
2/13/26 032998
2/13/26 001140
2/13/26 000028
2/13/26 008612
(Continued)

EWING IRRIGATION PROI

FEDERAL EXPRESS COR

FERGUSON WATERWOR

FIRED UP ARTS

FITCH, SUSAN

FITZGERALD JR, HOWAR

FLEXTG LLC

GANAHL LUMBER CO

GORMAN, RON

GPA CONSULTING

GRAINGER INC, W W

GREAT SCOTT TREE CAF
GREEN ZONE WASH WA1

HACH COMPANY

HARDY & HARPER INC

HARTFORD FIRE INSURA
Invoice
28895370
9-159-678"l3
9-712-24360
0061974
0069359
6086145
012926
020526
01 DEPOSIT
INV 40663-CBE
021261231
021258904
012926
25-00975
9783101042
9784673858
9784741077
9784940778
9785912560
9786610999
97831 07247
9789416410
9789172286
9792797 418
9703798091
9781276549
97817 47333
58204
001332
001329
14842219
PP5F1NAL
31 665879-2663!1
Inv Date Description
/20/26
/30/26
/23/26
2/29/25
/28/26
/27/26
/29/26
2/5/26
2/6/26
/1 2/26
/27/26
/21 /26
/29/26
1/5/25
/23/26
/26/26
/26/26
/27/26
/27/26
/28/26
/23/26
/29/26
/29/26
2/2/26
11/7/25
1 /22/26
1/22/26
10/1 0/25
2/7/26
1/23/26
1/23/26
1/28/26
1/27/26
IRRIGATION SUPPLIES NC#4

SHIPPING CHARGES

FIRE HYDRANT PARTS-MICR
CUSTOMER #701
CUSTOMER #847552

INSTRUCTOR PAYMENT
REIMB. FOR FOOD AT CERT I

DEPOSIT - MANGOS & TANG(
CITYWIDE COPIER MAINTEN.

SUPPLIES/REPAIR PARTS

INSTRUCTOR PAYMENT

MILLS ACT SERVICES - CM A

HARDWARE EQUIPMENT

RETURNED COMBINATION X

HARDWARE / EQUIPMENT

GREAT SCOTT - PALM RMVL

MOBILE WASHING SERVICEE
TROLLEY WASHING FY 25-26

LAB SUPPLIES
AS-NEEDED STREET IMPRO\
POLICY #99061755282020
Amount Paid
856.62

69.56 5.00
8,064.08
1 ,549.76
2 37.58
1 ,520.40

54.25 337.00
6,445.56
125.51
141.52
420.00
3,275.00
603.37
3,119.70
1 ,229.58
306.06
612.13
306.06
951 .42
629.34

69.16 376.21
-40.39
192.20
517.98
36,7 43.00
1,222.75
500.00
795.21
42,815.55
3,310.00
Check Total
856.62

74.56 9,851 .42
1,520.40

54.25 337.00
6,445.56
267.03
420.00
3,275.00
8,872.82
36,7 43.00
1,722.75
795.21
42,815.55
3,310.00
Page: 5
254
apChkLst
02/12/2026 9:07:58AM
Final Check List

SAN CLEMENTE
Page: 7
Bank : city BMO
Check #
609849
609850
609851
609852
609853
609854
609855
609856
609857
609858
609859
609860
609861
609862
609863
609864
609865
609866
Date Vendor
2/13/26 007564
025638
003216
038245
006627
004al85
038243
000514
038227
038239
030289
2/13/26 037777
2/13/26 001207
2/13/26 004049
2/13/26 038247
2/13/26 0al2346
2/13/26 006158
2/13/26 010648
(Continued)
Invoice
LOWE'S COMPANIES INC 71742
86308
90210
99651
71192
70406
70565
87398
MICHAEL BAKER INTLIN( 1273508
MIRACLE RECREATION E 898650
MORIN, CARA 020226-020526
MUNI WATER DIST OF OF 1200al
MUTUAL LIQUID GAS & El 49747
NAHID, HASHEM 121225
NATIONAL SAFETY COMF 103733
NAUTILUS ENVIRONMEN' NAU2601052
NEIMAN, RONA Ref002571445
OCCUPATIONAL HEALTH 89687550
89607873
OCY MANAGEMENT LLC 1703026
ODP BUSINESS SOLUTIO 455043119001
456985390001
45664867 4001
454824850001
454819066001
453959404001
456976133001
457288056001
ORANGE COUNTY REGIS 0000635913
PACE PAYMENT SYSTEM: 450139
PACIFIC PRODUCTS & S\i 37552
37540
PCH SHEET METAL & AIR A2324
PLUMBERS DEPOT INC PD-60414
PD-60538
Inv Date Description
1 /29/26
2/3/26
1/26/26
1/29/26
1/29/26
1/29/26
1 /29/26
2 /3/26
1/12/26
1 /22/26
2/5/26
1 /15/26
2 /1 /26
I2/1 2/25
1/31/26
1 /27/26
2 /4/26
/28/26
/21/26
/31/26
/1 5/26
/23/26
/21/26
/16/26
/1 6/26
/16/26
/23/26
/27/26
/31/26
/31 /26
/30/26
/28/26
/28/26
/14/26
/30/26
#9800
#9800
#9800
#9800
#9800
#9800
#9800
#9800
5438
5438
5438
5438
5438
5438
5438
5438
2 SUPPLIES
2 SUPPLIES
2 SUPPLIES
2 SUPPLIES
2 SUPPLIES
2 SUPPLIES
2 SUPPLIES
2 SUPPLIES

CEQA COMPLIANCE SERVICE

LINDA LANE PK PLAYGROUN

EXP REIMB - JPIA RISK MANA
FISCAL YEAR 2026 - MWDOC
PROPANE ACCOUNT #29498

PARKING REFUND
D.O.T. DRUG TESTING, ALCC

GIANT KELP CHRONIC GERV
UB Refund Cst #090726

MEDICAL SERVICES FOR CIT

MEDICAL SERVICES FOR CIT
SEN OR MOBILITY PROGRAffi
OFFICE SUPPLIES A/C #8983'
OFFICE SUPPLIES A/C #8983'
OFFICE SUPPLIES A/C #8983'
OFFICE SUPPLIES A/C #8983'
OFFICE SUPPLIES A/C #8983a
OFFICE SUPPLIES A/C #8983'
OFFICE SUPPLIES A/C #8983'
OFFICE SUPPLIES A/C #8983a
A/C #5190030
MERCHANT #6316385538691:

SIGN ANCHORS

TRUCK TOOLS
COMM. CTR. - MATERIALS
PURCHASE OF 2023 VHX42 V

PARTS / SUPPLIES
Amount Paid

59.33 114.72

42.65 72.75

56.39 117.89

24.61 20.45
34,890.00
2,107.71

60.10 597,937.11

30.00 15.00
150.00
i,725.00
697.47
I ,410.00
1 ,410.00
2 9,776.50
107.00

61.22 0.92

29.62 31 .20
106.66
357.20
126.65
3,018.68
3,729.05
1,103.24
992.81

71.12 721 ,617.31
874.65
Check Total
508.79
34,890.00
2,107.71

60.10 597,937.11

30.00 15.00
150.00
I ,725.00
697.47
2,820.00
29,776.50
820.47
3,018.68
3,729.05
2,096.05

71.12 722,491 .96
Page: 7
255
apChkLst
02/12/2026 9:07:58AM
Final Check List

SAN CLEMENTE
Page: 9
Bank : city BMO
Check #
609881
609882
609883
609884
609885
609886
609887
609888
609889
609890
609891
609892
609893
609894
609895
609896
609897
609898
609899
Date Vendor
2/13/26 034013
2/13/26 016912
2/13/26 027573
2/13/26 000311
2/13/26 002755
2/13/26 000170
2/ 3/26
2/ 3/26
2/ 3/26
2/ 3/26
2/ 3/26
2/ 3/26
2/ 3/26
003204
000208
016575
032032
001816
037235
014307
2/13/26 036718
2/13/26 038021
2/13/26 000976
2/13/26 001088
2/13/26 029845
2/13/26 001680
(Continued)
Invoice
SCA OF CA LLC CA2500570i
SECURE LIVE SCAN 17697
SIERRA ENGINEERING St SCWW1019
SOUTH COAST AIR QUAL 4659860
SOUTH COAST DISTRIBU 322449
SOUTH COAST WATER D 4-2354
4-2237
4-2481
4-2495
SOUTHERN CALIF GAS C 012826A
SOUTHERN COUNTIES FI IN-0000289032
STIVERS, MAILE 020426
SUNSTATE EQUIPMENT ( 14057866-001
SWRCB-DWOCP 29104
TAIT & ASSOCIATES INC 166791
TIMES MEDIAGROUP 84FA23BA-0196
8E9CBE99-0010
2026-168976
2026-173641
TRANSDEVFLEETSERVI 11960226
11960227
5C231 3D9
76FE5206
3D824754
70F8AF73
F44C6D78
477Ei3
47754
UNDERGROUND SERVICI 120260616
25-262592
UNITED BLDG & DEVELPI 2532
UNITED RENTALS NORn- 257264383-001

TURBO DATAINC

TREVIPAY
Inv Date Description
/27/26
/31 /26
/14/26
/14/26
/22/26
/27 /26
/27/26
/27 /26
/27/26
/28/26
2/2/26
2/4/26
1 /21/26
2 /2/26
9/30/25
/30/26
/28/26
/31 /26
/31 /26
/31 /26
/31 /26
/7/26
/29/26
/22/26
/22/26
/15/26
/31/26
/31 /26
2/1 /26
2/1 /26
1/25/26
1/20/26

STREET SWEEPING AT WATE

FINGERPRINT FEES - SECUR

PREPARATION OF AQMD EMI

ANNUAL EMISSION REPORT

SUPPLIES

WATER BILLING

WATER BILLING
01060702006 GAS SERVICES

FUEL PURCHASES FOR CITY
REIMB FOR OCCMA ACTMT'i

BOOM LIFT RENTAL
T2 CERT. RENEWAL - M. IVEF

DESIGN & SUPPORT SERVIC

DISPLAY ADS NOTICE

CITY LEGAL ADS NOTICE
ADS 2026 ENVIRONMENTAL (

LEADERSHIP ADS

FLEET MAINTENANCE CONTI

TROLLEY MAINTENANCE SEI

SUPPLIES - GAP

SUPPLIES - PLAYSCHOOL

SUPPLIES - SC SOCIAL

CITATION PROCESSING FOR
ADMIN CITATION PROCESSlTh

UNDERGROUND SERVICE F(

REPAIR TRELLIS BEAM

DUMP TRUCK RENTAL
Amount Paid
553.80
490.00
1,500.00
1 ,751 .26
2 92.47

45.7"l
i ,491 .75
162.74
133.95

67.92 12,467.51
190.00
2,087.38

60.00 4,860.00
936.63
I ,035.23
545.00
300.00
54,939.83
3,878.36

36.82 68.10
211.58
105.04
277.00
3,722.40
140.10
274.45

91.47 1 ,392.00
2 ,590.46
Check Total
553.80
490.00
1,500.00
1 ,751 .26
2 92.47
1,834.15

67.92 12,467.51
190.00
2,087.38

60.00 4,860.00
2,816.86
58,818.19
698.54
3,862.50
365.92
1 ,392.00
2 ,590.46
Page: 9
256
apChkLst
02/12/2026 9:07:58AM
Final Check List

SAN CLEMENTE
Page: Il
Bank : city BMO
Check #
609915
Date Vendor
2/13/26 027059
(Continued)
Invoice
ZAPP PEST MANAGEMEh 24629
24568
24680
24857
24639
24615
24566
24685
24640
24567
24565
24562
24564
24563
24619
Inv Date Description
/23/26
/23/26
/22/26
/13/26
/1 5/26
/29/26
/22/26
/29/26
/23/26
/29/26
/22/26
/14/26
/14/26
/14/26
/16/26

ZAPP - PEST CTRL BCH&PIEF

PEST CONTROL SERVICE

ZAPP - PEST CTRL CITY FACI

ZAPP PEST MGMT - GOPHER

ZAPP - PEST CTRL CITY FACI

PEST CONTROL SERVICE

ZAPP - PEST CTRL CITY FACI

ZAPP - PEST CTRL CITY FACI
Amount Paid
125.00
235.00

85.00 225.00
125.00
130.00

65.00 1,800.00
325.00
105.00

75.00 60.00

65.00 60.00

75.00 Check Total
3,555.00
Sub total for BMO: 2,477,989.53
Page: 11
257
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: March 3, 2026 Agenda Item: 11D.
..agendizedby
..end
..titl e
..body
ORDINANCE NO. 1799

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
CLEMENTE, CALIFORNIA, AMENDING SECTION 13.04.220 OF THE

CITY OF SAN CLEMENTE MUNICIPAL CODE RELATING TO

WATER RATES
WHEREAS, the City owns and operates approximately 230 miles of water lines, 15 reservoirs, 16 pump station and 56 pressure reducing stations; and WHEREAS, the City receives imported water from Metropolitan Water District from Northern California and the Colorado River Basin through its wholesaler Municipal Water District of Orange County (MWDOC); and
WHEREAS, the City has local water resources from two wells and produces recycled water at the Water Reclamation Plant for irrigation purposes; and WHEREAS, the City provides water service meeting state and federal standards to approximately 17,600 service meters consisting of residential, multifamily, irrigation and commercial accounts; and
WHEREAS, the City exercises its constitutional authority to establish, operate, and regulate a water service system, pursuant to California Constitution Article XI, section 7, and establish rates for providing those services to property owners and customers in accordance with San Clemente Municipal Code Chapter 13.04, subject to the requirements and limitations of California Constitution Article XIII D, Section 6 (a.k.a., “Proposition 218”); and WHEREAS, pursuant to the requirements of Proposition 218, prior to extending, imposing or increasing water rates (for a property-related service), the City must provide property owners notice at least 45 days before a public hearing regarding modifications to the water rates; and WHEREAS, in order to evaluate the costs of providing service to City customers and maintain operation of the water system, the City Council hired Water Resources Economics, LLC on May 6, 2025 to conduct a cost-of-service study to evaluate the City’s costs of providing water services in comparison to water rate and other revenues; and
WHEREAS, Water Resources Economics, LLC reviewed the City’s water finances, presented preliminary recommendations and received direction from the City Council on September 16, 2025; and
258
Meeting Date: March 3, 2026 Agenda Item: 11D.

CITY OF SAN CLEMENTE 2
WHEREAS, on October 7, 2025, the City Council adopted water rate setting procedures under Proposition 218 and Government Code sections 53750 through 53759.2 and 54354.5 to establish a process for property owner objections to proposed water fees; and WHEREAS, Water Resources Economics, LLC completed a cost-of-service study, as documented in the November 2025 Water Rate Study Final Report (“Water Rate Study”) that recommended changes in the rate structure, five-year rate adjustments, fixed and pass through of charges from the Municipal Water District of Orange County, and establishment of recycled water rates and demand manager rates in the event there is a required reduction in water use; and WHEREAS, on November 18, 2025, based on the Water Rate Study, the City Council directed staff to mail a Proposition 218 public hearing notice to all property owners served by City water, and that notice established a deadline to receive written objections by January 15, 2026 at 5:00 p.m., set a Public Hearing for February 3, 2026, at 5:30 p.m. to consider all timely written objections, and set a Public Hearing for February 17, 2026, at 5:30 p.m. to conduct a protest hearing under Proposition 218 and to consider proposed adjustments to and adoption of water rates and service charges; and
WHEREAS, those Proposition 218 public hearing notices were mailed to all property owners receiving City water services (including tenants who are directly liable to pay water rates) on December 1, 2025, a minimum of 45 days prior to the requirement for objections to be received by the City on January 15, 2026 at 5:00 p.m.; and
WHEREAS, the City Council conducted a duly noticed objection hearing on February 3, 2026, to consider all written communications related to the proposed update to water rates that were received by the City prior to the January 15 deadline, as well as the responses to those communications prepared by City staff, and the Council determined no such written communications met the definition of a written objection, and determined no clarifications, further review or reduction or abandonment of the proposed water rates, fees and charges was warranted in accordance with Government Code sections 53759.1 and 53759.2; and
WHEREAS, the City Council conducted a duly noticed public protest hearing on February 17, 2026, to consider all written protests and hear all oral comments, determine whether or not a majority protest was made and set rates in accordance with the Proposition 218 Notice; and WHEREAS, San Clemente Municipal Code section 13.04.220 sets forth an old water schedule and requires amendment to prevent customer confusion and accurately reflect the City’s process for rate setting.

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

SECTION 1. The aforementioned recitals are true and correct and incorporated fully herein.

SECTION 2. Section 13.04.220, including subsections A through E, of the San Clemente Municipal Code is hereby deleted in its entirety and replaced with the following:
259
Meeting Date: March 3, 2026 Agenda Item: 11D.

CITY OF SAN CLEMENTE 3

13.04.220 – Establishment of water rate schedule
A. Water Rates Adopted by Resolution. The City Council shall adopt water rates by resolution. Water rates may include both fixed and variable consumption components in order to allow the City to recover its costs for the provision of service. Each property owner (or the property owner’s tenant) to whom the City has issued a water meter shall pay the water rates in accordance with such resolution adopting rates and this Chapter 13.04.

B. Demand Management Rate. The water rates adopted by the City Council by resolution may include a demand management rate. At any time that the City Council adopts a resolution declaring a water shortage emergency in accordance with the City’s Urban Water Management Plan, customers shall pay the supplemental demand management rate corresponding to the level of emergency declared by City Council for as long as the water shortage emergency remains in effect.

SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid, such decision shall not offset the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases are declared invalid.

SECTION 4. This Ordinance shall take effect thirty (30) days from the date of its passage.

Before the expiration of fifteen (15) days after its passage, this Ordinance shall be published in a newspaper of general circulation, printed and published in the City of San Clemente.

APPROVED AND ADOPTED this _____ day of March, 2026.

ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the
San Clemente, California City of San Clemente, California 260
Meeting Date: March 3, 2026 Agenda Item: 11D.

CITY OF SAN CLEMENTE 4

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 Ordinance No. 1799, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, 2026, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _____________, ______. _________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney..recommendation
..end
261
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: March 3, 2026 Agenda Item: 11E.

ORDINANCE NO. 1800

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALIFORNIA, AMENDING SAN
CLEMENTE MUNICIPAL CODE TITLE 3 REVENUE AND
FINANCE, CHAPTER 3.40, SECTION 3.40.030(A)

RELATING TO THE DEFINITION OF LOCAL BUSINESS

FOR THE LOCAL VENDOR PREFERENCE
WHEREAS, California Public Contract Code section 2002 allows a local agency to provide for a local vendor preference in awarding contracts within the requirements of such section; and WHEREAS, the City Council of the City of San Clemente has determined that the provision of a Local Vendor Preference Ordinance is in the best interests of the community, the local economy, and the economic stability of the City; and
WHEREAS, the City Council has an interest in improving the community by leveraging, to the greatest extent possible, the funds spent contracting with private firms for goods, equipment and services to and for the benefit of the City and its residents; and WHEREAS, the City Council has determined that funds spent locally, with local businesses, provide an enhanced economic benefit to the entire City as reinvestment and recirculation of the funds in the local economy generates taxable transactions, retains and creates local jobs, increases local profits, provides for greater involvement and contributions to local charities, and increases procurement of local goods and services for resale and operations; and
WHEREAS, a Local Vendor Preference Ordinance can encourage businesses to compete for City contracting opportunities, locate operations in the City, and encourage existing local businesses to refrain from relocating to different, less expensive areas; and WHEREAS, on May 16, 2023, City Council adopted Ordinance No. 1750, which added Section 3.40.030 to the San Clemente Municipal Code and established a local preference with provisions that met the requirements of Public Contract Code section 2002, had a rational relationship to the legitimate governmental purpose by stimulating a local market for services, equipment, materials, supplies and any City funds will stimulate the local economy and reduce unemployment; and
WHEREAS, an amendment is needed to the definition of local business under Section

3.40.030(A) to the San Clemente Municipal Code to provide additional eligibility criteria and 262
Meeting Date: March 3, 2026 Agenda Item: 11E.

CITY OF SAN CLEMENTE 2
ensure that business are truly local, thereby accomplishing the purpose of stimulating the local economy and reducing unemployment.

NOW, THEREFORE, the City Council of the City of San Clemente, California, hereby ordains as follows:

SECTION 1: Recitals and Scope
The recitals above are considered true and correct and incorporated fully into this Ordinance. The scope of this Ordinance is strictly financial. This Ordinance does not allow local applicants to be relieved of any specification, license requirement or any other provision of the Bid or Request for Proposal.

This Ordinance applies only to contracts that involve the expenditure of funds entirely within the City's control where responsibility and quality are equal and shall not apply to contracts that involve the expenditure of funds that are not entirely within the City's control, such as state and federal grant funds, that due to legal restrictions prohibit its application.

SECTION 2: Environmental Review
This Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines (14 CCR 15061) because there is no possibility that the activity in question may have a significant effect on the environment and this Ordinance is not a project as defined by CEQA.

SECTION 3: Amendment to San Clemente Municipal Code section 3.40.030(A) Section

3.40.030(A) of the Municipal Code of the City of San Clemente is hereby amended to read in its entirety as follows (underlines are additions):

A. Definitions
The following definitions shall apply to this Ordinance:
"Bid" means any response to a City solicitation for bids or proposals. "City" means the City of San Clemente.
"Contract" means a written agreement for the purchase of goods, equipment or services, including construction, for the benefit of the City or its residents. "Contractor" means a person, business or entity awarded a Contract by the City. “Local Vendor”, "Local Business", “Local Contractor”, or “Local Bidder” means a Small Business with a physical location in San Clemente as indicated on an approved Business License as more particularly defined below:

1. Businesses must have a physical location in San Clemente as indicated on an approved business license from which they regularly do business.
263
Meeting Date: March 3, 2026 Agenda Item: 11E.

CITY OF SAN CLEMENTE 3

2. Physical locations can include a main office, headquarters, branch office, or similar functional location within the geographic boundaries of the City where business work is regularly performed.

3. An approved business license issued with a valid City business site address must be established prior to the City inviting bids or requesting proposals for the procurement.

4. Post Office Box address, shared office space without a sublease or regular performance of business work from the space or similar arrangement within the City shall not qualify as a valid business location.

5. The City reserves the right to verify claimed business location and may require documentation demonstrating qualification and business being conducted therefrom.
"Proposal" means any response to a City solicitation for bids or proposals. “Small Business” means a business or entity that meets the requirements of a small business enterprise certified pursuant to Article 1 (commencing with Section 14835) of Chapter 6.5 of Part

5.5 of Division 3 of Title 2 of the Government Code as that section may be amended from time to time and that performs a commercially useful function within the meaning of Public Contract Code section 2002(d) as that section may be amended from time to time.

SECTION 4: Severability
All ordinances or parts of ordinances or resolutions or parts of resolutions in conflict with any applicable law are hereby repealed to the extent of such conflict and no further.

SECTION 5: Effective Date
This ordinance shall take effect 30 days after passage and proper publication at least once in a newspaper of general circulation in the City of San Clemente.

SECTION 6: The City Clerk shall certify to the passage of this ordinance and cause the same to be published as required by law, and the same shall take effect as provided by law.

INTRODUCED AND FIRST READ at a regular meeting of the City Council of the City of San Clemente, California, on the 17th day of February, 2026.

APPROVED AND ADOPTED at a regular meeting of the City Council of the City of San Clemente, California, on _____day of _________________, 2026. 264
Meeting Date: March 3, 2026 Agenda Item: 11E.

CITY OF SAN CLEMENTE 4
ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the City San Clemente, California of San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1800 having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________. _________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
____________________________
Elizabeth A. Mitchell, City Attorney
265
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: March 3, 2026 Agenda Item: 11F.

Submitted By: Public Works
Prepared By: Masako Hennequin, Senior Civil Engineer
Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO ACCEPT AND FILE A NOTICE OF COMPLETION FOR THE FY 2025 AS-NEEDED STREET IMPROVEMENT PROGRAM, CIP PROJECT NO. 15318 ..body
Fiscal Impact:

The total construction cost of $191,600 was within the approved budget of $200,000 from the Gas Tax Fund, FY 2025 As-Needed Street Improvement Program, Account Number 012-861-45300- 000-15318.

Summary:

The City Council is being asked to consider a Resolution and Notice of Completion for the FY 2025 As-Needed Street Improvement Program (Attachments 1 and 2).

Background:

On December 10, 2024, the City Council awarded a construction contract to Hardy & Harper, Inc. for the FY 2025 As-Needed Street Improvement Program (Attachment 3). The project consisted of repairing concrete pavement including cross gutter, curb and gutter, sidewalk, and driveway approaches for citywide streets on as-needed basis. City staff issued five work orders within the one-year contract period to complete several streets as listed on Attachment 4.

266
Meeting Date: March 3, 2026 Agenda Item: 11F.

CITY OF SAN CLEMENTE 2
A summary of the total construction expenditures is as follows:

Construction Management and Inspection $ 1,930
Construction 189,670
Total Project Construction Cost $191,600
Council Options:
 Adopt Resolution No. 26-38, which would accept the completed FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318.
 Modify and adopt Resolution No. 26-38.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

This project was previously determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

Recommended Actions:
..recommendation
Staff recommends that the City Council Adopt Resolution No. 26-38, which will:

1. Accept the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318, from Hardy & Harper, Inc.;

2. Authorize the City Clerk to execute and record the Notice of Completion for the FY 2025 AsNeeded Street Improvement Program, CIP Project No. 15318;

1. Resolution No. 26-38

2. Notice of Completion

3. Staff Report dated December 10, 2024 (without attachments)

4. Completed streets list
Notification:

None.
267
Attachment 1
RESOLUTION NO. 26-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ACCEPTING AS
COMPLETE THE FY 2025 AS-NEEDED STREET
IMPROVEMENT PROGRAM, CIP PROJECT NO. 15318
WHEREAS, on December 10, 2024, the City Council awarded a construction contract to Hardy & Harper, Inc. for the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318; and
WHEREAS, the work consisted of repairing concrete pavement including cross gutter, curb and gutter, sidewalk, and driveway approaches for certain streets; and WHEREAS, Hardy & Harper, Inc. has completed the work to the satisfaction of the Public Works Director/City Engineer.

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

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

SECTION 2. That the City Council accepts as complete the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318.

SECTION 3. That the City Council authorizes the City Clerk to execute and record a Notice of Completion for the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318.

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

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

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

PASSED AND ADOPTED this _____ day of ____________________, 2026. 268
Resolution No. 26-38 Page 2
ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the
San Clemente, California City of San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-38 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:

City of San Clemente
When Recorded, Mail To:

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

Space above this line is for Recorder’s Use Only

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

1. Project title or description of work: FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318.

2. Date of completion: January 21, 2026.

3. Street address or legal description of the project site: Various streets.

4. Name of owner: City of San Clemente.

5. Interest or estate of owner: Public Facility; Owned in Fee.

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

7. Name and address of contractor: Hardy & Harper, Inc., 32 Rancho Circle, Lake Forest, CA 92630.

I am the City Clerk for the City of San Clemente, a Municipal Corporation, the owner of the indicated interest or estate in the property described above. I make this verification on behalf of the City of San Clemente. I have read this Notice of Completion and know its contents. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on __________________________ in San Clemente, California. _________________________________
Laura Campagnolo, City Clerk
City of San Clemente
270
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

CITY OF SAN CLEMENTE
Meeting Date: December 10, 2024 Agenda Item: 11I
Submitted By: Public Works
Prepared By: Masako Hennequin, Associate Civil Engineer Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO HARDY & HARPER, INC. FOR FY 2025 AS-NEEDED STREET IMPROVEMENT PROGRAM, CIP PROJECT NO. 15318; AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT IN AN AMOUNT NOT TO EXCEED $200,000; AND FINDING THE PROJECT CATEGORICALLY ..body EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Fiscal Impact:

The estimated total construction cost of $200,000 per year is within the approved budget amount of $200,000 from the Gas Tax Fund, FY 2025 As-Needed Street Improvement Program, Account No. 012-861-45300-000-15318.

Summary:

Before the City Council is the award of a construction contract to Hardy & Harper, Inc. in an amount not to exceed $200,000 for the FY 2025 As-Needed Street Improvement Program.

Background:

The FY 2025 As-Needed Street Improvement Program will repair Citywide asphalt and concrete pavement in areas that need immediate attention to prevent further damage. City staff will provide the contractor with a list of pavement repairs and locations on an as-needed basis to perform repairs with a total cost of not to exceed $200,000 per year based on the contractor’s unit prices (Attachment 2) for the requested type of work.

On October 10, 2024, staff reached out to local contractors and published a notice inviting bids for this project in the SC Times and on PlanetBids. Bids were opened on October 24, 2024, and the results are presented in the Table 1. below. The total bid price was based on the sum of the unit prices on the bid form (Attachment 2). Unit price Bids ranged from $5,791 to $28,445. There were no local bidders from San Clemente.

Table 1. Unit Price Bid Summary
Company Name Company Location Total Bid Price
Hardy & Harper, Inc. Lake Forest, CA $5,791.00
A&Y Asphalt Contractors, Inc. Norco, CA $9,977.00
ONYX Paving Company, Inc. Anaheim, CA $22,200.00
Horizons Construction Company Orange, CA $23,459.46
We R Builders, Inc. Glendale, CA $28,445.00
2711
Meeting Date: December 10, 2024 Agenda Item: 11I

CITY OF SAN CLEMENTE
The lowest responsive and responsible bidder is Hardy & Harper, Inc. of Lake Forest, California with a total unit bid price of $5,791.

As required by state law and City policy, the Hardy & Harper, Inc. will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 3). Project plans and specifications are on file in the City Clerk’s office.

Council Options:
 Adopt Resolution No. 24-201 (Attachment 1), awarding the FY 2025 As-Needed Street Improvement Program contract to Hardy & Harper, Inc., authorizing the City Manager to execute a construction contract an amount not to exceed $200,000, and finding the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.
 Modify and adopt Resolution No. 24-201.
 Continue the item and direct staff to provide additional information.  Do not award the contract or construct the sidewalk improvements.

Environmental Review/Analysis:

This project is exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of repairs to existing City facilities, involves negligible or no expansion of existing or former use and there is no possibility of a direct or reasonably foreseeable indirect effect on the environment.

Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 24-201, which will:
..recommendation

1. Find the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318, categorically exempt from the CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines;

2. Award the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318, contract to Hardy & Harper, Inc.; and

3. Authorize the City Manager to execute a contract with Hardy & Harper, Inc. in an amount not to exceed $200,000 per year, in a form substantially similar to Contract No. C24-86 (Attachment 3) for the FY 2025 As-Needed Street Improvement Program, CIP Project No. 15318.
..end
Attachment:

1. Resolution No. 24-201

2. Hardy & Harper, Inc. Unit Price List

3. Contract No. C24-86
2722
Meeting Date: December 10, 2024 Agenda Item: 11I

CITY OF SAN CLEMENTE
Notification:

All bidders
2733
PN 15318
P.C.C. LISTING
Address width length SF comments
Cross Gutter removal & replacement
Via San Gorgonio at San Gorgonio Park exit 5.90 11.00 64.90 Via San Gorgonio NB at Calle Vista Torito 3.60 14.00 50.40 Calle Nuevo at Shorecliffs Terrace 8 9.00 72.00
Estancia at Domador 8 6.30 50.40
Calle Monterey EB at Calle Mayo 3.20 11 35.20
Calle Monterey EB at Calle Mayo 4 11 44.00
Calle Monterey WB at Calle Mayo 4 8.35 33.40
Calle Sacramento WB at Calle Abril 4 12 48.00
Total 398.30 SF
Curb and Gutter A2-6 or A2-8 (W=24") removal & replacement 2923 Caballista Del Norte 15.60
2922 Caballista Del Norte 5.50
2901 Bonanza 21.00
4138 Costero Risco 11.00
Via San Gorgonio NB just north of San Gorgonio Park entrance 24.00 Via San Gorgonio NB just north of Calle Vista Torito x-gutter 14.00 across from 2935 Via San Jacinto 25.00
Calle Monterey EB above Calle Mayo 6.00
314 Calle Descanso 4.00
506 Calle Amigo 9.80
507 Calle Amigo 5.20
across from 1002 Ave. De La Estrella 16.00
across from 1004 Ave. De La Estrella 21.50
across from 1012 Ave. De La Estrella 8.00
across from 1202 Ave. De La Estrella 25.00
across from 1202 Ave. De La Estrella 24.00
across from 1206 - 1208 Ave. De La Estrella 31.00
across from 1208 - 1212 Ave. De La Estrella 93.00
across from 1218 Ave. De La Estrella 10.00
across from 1310 Ave. De La Estrella 23.50
across from 1310 Ave. De La Estrella 10.50
across from 1310 Ave. De La Estrella 12.00
2910 Calle Frontera 3
706 Calle Contenta 6
across from 2866 Via Bellota 14.70
across from 2828 Via Amapola 20.50
across from 2844 Via Amapola 11.50
end of Calle Vicente cul de sac near catch basin 5.50
602 Calle Vicente 32
across from 614 Calle Vicente 38
across from 630 Calle Vicente 67
9 Via Floritas along reservoir access road 12
608 Calle Bienvenido 14
across from 3923 Calle Real before Calle Andalucia 25
2904 Calle Grande Vista 19
211 Via Nada 6
212 Via Nada 11
Total 701 LF
Attachment 4
274
PN 15318
P.C.C. LISTING
Sidewalk removal and construction
2901 Bonanza 4.50 17.00 76.50
2922 Caballista Del Norte 4.50 5.00 22.50
2927 Caballista Del Norte 4.50 7.00 31.50
1307 Domador (across from 2903 Arreos) 4.50 18.50 83.25 1307 Domador (across from 2903 Arreos) 4.50 6 27.00
314 Calle Descanso 5 5 25.00
301 Calle Descanso at Calle Amigo 7.40 6.60 48.84
507 Calle Amigo 6.00 4.10 24.60
Calle Frontera behind 2462 Corte Merlango 4.50 6.00 27.00 2910 Calle Frontera 3.90 11.90 46.41
Camino Vera Cruz SB before Plaza Pacifica at fire hydrant 4.50 5.50 24.75 Camino Vera Cruz SB before Plaza Pacifica at FH splash pad 2.50 3 7.50 2904 Calle Grande Vista 4 15 60.00
608 Calle Bienvenido 5 14 70.00
Total 574.85 SF
Residential Driveway Approach removal and construction
2922 Caballista Del Norte 4.50 3.40 15.30
2927 Caballista Del Norte 4.50 3.80 17.10
Total 32.40 SF
Gutter only (W=18" or 24")
706 Calle Contenta 3 LF
275
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: March 3, 2026 Agenda Item: 11G.

Submitted By: Public Works
Prepared By: Masako Hennequin, Senior Civil Engineer
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO TOWO ENTERPRISE INC FOR THE FY 2026 STREET IMPROVEMENT PROGRAM (PAVEMENT REPAIRS), CIP PROJECT NO. 16318, AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT IN AN AMOUNT NOT TO EXCEED $500,000 PER YEAR, WITH AN

OPTION TO RENEW FOR UP TO THREE ADDITIONAL ONE-YEAR TERMS, AND EXECUTE

AND AWARD FUTURE SIMILAR PAVEMENT REPAIR CONTRACTS THAT FALL WITHIN THE

CITY COUNCIL APPROVED BUDGET, AND FINDING THE PROJECT CATEGORICALLY EXEMPT ..body FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Fiscal Impact:

The estimated project cost of $534,000 ($500,000 for construction and $34,000 for construction management/inspection) is within the available approved budget of $700,000 from the Gas Tax Fund, Account No. 012-861-45300-000-16318, FY 2026 Street Improvement Program. Funding for future contract years will be included in the Gas Tax Fund for the applicable fiscal year.

Summary:

City staff is recommending the City Council consider adoption of a resolution (Attachment 1) to award and authorize the execution of a construction contract to TOWO Enterprise, Inc. in an amount not to exceed $500,000 per year, for the FY 2026 Street Improvement Program (Pavement Repairs) throughout the City, with an option to renew for up to three additional oneyear terms exercisable at the discretion of the City Manager (Attachment 2). This has been a successful, ongoing program to expedite paving repairs, planned or as needed when potholes or raveling occur. The program extends the useful life of the City’s streets by maintaining the asphalt and thereby minimizing the need for replacement in the future. Provided that the City Council continues to approve the budget for this program, staff recommends that the City Manager be granted authorization to award future similar contracts within the City Council-approved budget.

Background:

The proposed FY 2026 Street Improvement Program includes citywide pavement repairs in areas requiring immediate attention, as well as emergency street maintenance repairs for pothole repair, fatigue cracking, and raveling pavement rehabilitation throughout the City. Maintaining City streets through pavement programs, such as this, helps support local and arterial street programs, keeping them in a maintenance phase rather than a more costly replacement phase. 276
Meeting Date: March 3, 2026 Agenda Item: 11G.

CITY OF SAN CLEMENTE 2
Existing Pavement Existing Pavement
On January 15, 2026, staff contacted local contractors, published a notice inviting bids for this project in the SC Times, and posted a bid solicitation on PlanetBids. Bids were received on February 5, 2026, and the results are presented in Table 1 below. Bids ranged from $429,400 to $810,900. There were no bids from businesses based in San Clemente.

The base bids were established based on the sum of unit prices provided by the bidders, which will be used to complete various items on an as-needed basis. Staff is recommending a not-toexceed contract of $500,000 to complete the required pavement maintenance items.

The lowest responsive and responsible bidder was TOWO Enterprise Inc. of Fullerton, California, with a total bid amount of $429,400, with all work performed based on the contractor’s unit prices (Attachment 3) for the requested type of work.

Table 1. Bid Summary
Company Name Company Location Amount
TOWO Enterprise, Inc. Fullerton, CA $429,400.00
ONYX Paving Company, Inc. Yorba Linda, CA $432,000.00
LC Paving & Sealing, Inc. Escondido, CA $434,999.50
Cali State Paving, Inc. Riverside, CA $473,550.00
Eagle Paving Poway, CA $575,970.00
All American Asphalt Corona, CA $681,407.50
Paveco Construction, Inc. Baldwin Park, CA $810,025.00
PALP dba Excel Long Beach, CA $810,900.00
The total estimated project cost is $534,000, as summarized below in Table 2:

Table 2 Cost Summary
Construction Management and Inspection $ 34,000
Construction $ 500,000
Total Estimated Construction Cost $ 534,000
277
Meeting Date: March 3, 2026 Agenda Item: 11G.

CITY OF SAN CLEMENTE 3
As required by state law and City policy, TOWO Enterprise Inc. will be required to provide performance and payment bonds simultaneously with the execution of the construction contract (Attachment 2). Project plans and specifications are on file in the City Clerk’s office.

Staff recommends that City Council authorize the City Manager to (a) renew the contract for up to three additional one-year terms, exercisable at the City Manager's discretion, if within the City Council-approved budget and (b) award and execute similar future contracts that are within the City Council-approved budget following future competitive bidding for the Street Improvement Program (Pavement Repairs). Alternatively, the City Council could direct staff to rebid for next year’s program and return to the City Council for the award.

Staff Identified Considerations:

The Street Improvement Pavement Programs that City staff runs annually help keep City streets in a “maintenance phase”. These programs extend the useful life of the City’s streets by maintaining the asphalt and thereby minimizing the need for replacement. Tools such as crack sealing, crack filling, mill and fill, micro-surfacing, and slurry seal keep the City’s Arterial and local streets in that “maintenance phase,” providing significant cost savings to the City.

If the City defers its annual street maintenance program, City streets would eventually fall into disrepair. Once paving failure occurs, complete removal and replacement are required, which is significantly more costly and more disruptive to City residents.

Council Options:
 Adopt Resolution No. 26-39 (Attachment 1), awarding the FY 2026 Street Improvement Program (Pavement Repairs) contract to TOWO Enterprise Inc., authorizing the City Manager to execute the construction contract in an amount not to exceed $500,000 per year, with an option to renew for up to three additional one-year terms, and award and execute future similar contracts if within the approved budget, and finding the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.
 Modify and adopt Resolution No. 26-39.
 Continue the item and direct staff to provide additional information.  Do not award the contract or construct the street maintenance.

Environmental Review/Analysis:

This project is exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of repairs to existing City facilities, involves negligible or no expansion of existing or former use, and has no possibility of a direct or reasonably foreseeable indirect effect on the environment. 278
Meeting Date: March 3, 2026 Agenda Item: 11G.

CITY OF SAN CLEMENTE 4
Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 26-39, which will:
..recommendation

2. Award the FY 2026 Street Improvement Program (Pavement Repairs), CIP Project No. 16318, contract to TOWO Enterprise, Inc.;

3. Authorize the City Manager to execute a contract with TOWO Enterprise, Inc. in an amount not to exceed $500,000, in a form substantially similar to Contract No. 26-xx, for the FY 2026 Street Improvement Program (Pavement Repairs), CIP Project No. 16318; and

4. Authorize the City Manager to renew the contract for up to three additional one-year terms, and award and execute similar future contracts, provided that they are within the City Councilapproved budget for pavement repairs and City policy and ordinances and state law regarding the procurement and public contracting is otherwise followed. ..end
Attachment:

1. Resolution No. 26-39

2. Contract No. C26-19 (without attachments)

3. TOWO Enterprise Inc. Unit Price List
Notification:

All bidders.
279
Attachment 1
4882-9904-3949 v1
RESOLUTION NO. 26-39

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA,

AWARDING A CONSTRUCTION CONTRACT TO
TOWO ENTERPRISE INC. TO PERFORM FY 2026

STREET IMPROVEMENT PROGRAM (PAVEMENT

REPAIRS) IN AN AMOUNT NOT TO EXCEED
$500,000 PER YEAR, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONTRACT AND

SIMILAR FUTURE CONTRACTS WITHIN CITY

COUNCIL APPROVED BUDGET LIMITATIONS AND

FINDING THE PROJECT CATEGORICALLY

EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) UNDER
CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION
15301) OF THE STATE CEQA GUIDELINES
WHEREAS, the City strives to extend the useful life of its streets by hiring as needed contracts to perform maintenance when needed for repairing potholes, raveling, and cracks; and
WHEREAS, the City conducted formal competitive bidding for the FY 2026 AsNeeded Street Improvement Program (Pavement Repairs), Project No. 16318 (Project); and WHEREAS, on February 5, 2026, the City received eight bids ranging from $429,400 to $810,900 for the Project; and
WHEREAS, the TOWO Enterprise, Inc. was the lowest responsive and responsible bidder with a bid of $429,400.

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

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

SECTION 2. That based on substantial evidence in the record as a whole, the project is hereby determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced and there is no possibility of a direct or reasonably foreseeable indirect substantial impact on the environment.

SECTION 3. That the Construction Contract Agreement for the FY 2026 Street Improvement Program (Pavement Repairs), Project No. 16318 is awarded to TOWO 280
Resolution No. 26-39 Page 2
4882-9904-3949 v1
Enterprise, Inc.

SECTION 4. That the City Manager is hereby authorized and directed to execute a construction contract for the FY 2026 Street Improvement Program (Pavement Repairs), Project No. 16318 with TOWO Enterprise, Inc. in an amount not to exceed $500,000, in a form substantially similar to that presented to City Council on March 3, 2026.

SECTION 5. That the City Manager is authorized to approve up to three additional one-year terms and award and execute future contracts for the City’s Street Improvement Program (Pavement Repairs) provided that they are within the City Council approved budget for such program. The City Manager and staff shall otherwise follow City policy and ordinances and state law regarding such procurements and public contracting.

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

PASSED AND ADOPTED this _____ day of March 2026.
__________________________
Rick Loeffler, Mayor of the City
of San Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
281
Resolution No. 26-39 Page 3
4882-9904-3949 v1

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. 26-39 was adopted at a regular meeting of the City Council of the City of San Clemente held on _______ day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:

CONTRACT
THIS CONSTRUCTION CONTRACT FY 2026 STREET IMPROVEMENT PROGRAM (PAVEMENT REPAIRS), PROJECT NO. 16318 (“Contract”) is made this _____ day of _________, 2026, in the County of Orange, State of California, by and between the City of San Clemente, a municipal corporation (“CITY”), and TOWO Enterprise Inc., a California corporation with its principal place of business at 2536 Fender Avenue, Suite D, Fullerton, CA 92831 (“Contractor”). City and the Contractor for the considerations stated herein agree as follows:

ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:

FY 2026 Street Improvement Program (Pavement Repairs), Project No. 16318 The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor is required to commence each work order within ten (10) working days of receiving a work request for specific Pavement Repair Services from the City. The Contractor shall complete all Work required by the Contract Documents within the number of working days from the date specified in the written Notice to Proceed for each work order. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract and the Work, which includes everything that is reasonably foreseeable related thereto, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum listed on each work order, which shall be based on the unit prices contained in the Contractor’s Bid Form. Total compensation under this Contract shall not exceed Five Hundred Thousand Dollars ($500,000) for the initial one-year contract term, with an option to renew for up to three (3) additional one-year terms exercisable at the discretion of the City Manager. The City retains the right to exercise the optional renewal(s) at its sole and absolute discretion. Option year pricing may be negotiated by the Contractor upon written request at least ninety (90) days before the end of the then current term.

Any unit cost price rate increase shall not exceed the percentage of change in the United States Bureau of Labor Statistics (BLS) Consumer Price Index “All Urban Consumers for Los AngelesRiverside-Orange County, California (CPI-U)” not seasonally adjusted, for the most recent twelve months for which statistics are available. Renewal term(s) shall only be effective upon the City exercising its option in writing. Any price adjustments shall not be effective until execution of an amendment to the Contract by both parties. Payment shall be made as set forth in the General Conditions.

At any time during the term of the Contract, City may, pursuant to the terms and provisions of the Contract Documents, request that the Contractor perform additional work. Contractor shall not perform, nor be compensated for, additional work without written authorization from the City pursuant to the terms and provisions of the Contract Documents. Additional work that would cause total compensation to exceed Five Hundred Thousand Dollars ($500,000) per one contract 283
year requires prior approval of City Council and shall not be authorized without such prior approval.

ARTICLE 4. LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay City the sum of $1,000 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event that Liquidated Damages are not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.

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

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

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

ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project. 284
ARTICLE 7. INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.

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

IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
[Signatures on following page]
285
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 20____
_____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization

TOWO ENTERPRISE INC., a
California corporation
(“CONTRACTOR”)
By:_____________________________
YUN SU CHUNG, CEO, Secretary, CFO
Dated: __________________, 20____

END OF CONTRACT
286
287
288
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: March 3, 2026 Agenda Item: 11H.

Submitted By: Planning Division
Prepared By: Zach Rehm, Acting City Planner
Jessica Gatny, Assistant Planner
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A PURCHASE AGREEMENT TO

ELECTRIC VEHICLE CHOICE UNDER THE COOPERATIVE SOURCEWELL CONTRACT FOR

TWO ALTERNATIVE QUALIFYING ELECTRIC VEHICLES USING GRANT FUNDS FROM THE

CLEAN MOBILITY OPTIONS (CMO) GRANT VOUCHER PROGRAM, AUTHORIZING THE

CITY MANAGER TO EXECUTE THE AGREEMENT AND AN AMENDMENT TO THE CMO

GRANT BUDGET TO REFLECT THE FINAL COST OF THE VEHICLES, APPROVING AN EXEMPTION TO THE CITY’S PURCHASING POLICY TO USE A COOPERATIVE PURCHASE AGREEMENT, APPROPRIATING THE $1.8 MILLION IN GRANT REVENUES, AND FINDING

THE PROJECT STATUTORILY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CALIFORNIA PUBLIC RESOURCES CODE § 21080.25 ..body Fiscal Impact:

The City of San Clemente was awarded a grant of $1.8 Million to implement a Clean Mobility Options (CMO) pilot project. These program funds will cover the costs for the purchase of these vehicles. The purchase of the electric vehicles using the grant funds will be conducted through a supplemental appropriation from the General Fund revenue account 001-000-33490 and expense account 001-808-45600. There is no impact to the General Fund.

Summary:

The City Council is being asked to consider a Resolution (Attachment 1) that would authorize the City Manager to purchase two alternative qualifying electric vehicles, totaling $725,184, using CMO grant voucher funding from Electric Vehicle Choice under the terms of its cooperative agreement with Sourcewell. The vehicles will be used to provide a new transit opportunity (trolley line) with a service area generally between Max Berg Park and the Rancho San Clemente Business Park with service to grocery, service, and employment opportunities consistent with grant requirements.

Background:

On March 4, 2025, the City Council authorized acceptance of a $1.8 million grant award for the CMO Voucher Pilot Program. The CMO Voucher Pilot Program provides funding for community mobility projects that increase resident access to key destinations by providing clean transportation options. All projects funded by CMO must directly benefit residents of a low-income community or a disadvantaged community (DAC). The project area must either be DAC as defined by SB 535, a low-income community or household as defined by Assembly Bill 1550 or Tribal land within DACs or low-income communities.
289
Meeting Date: March 3, 2026 Agenda Item: 11H.

CITY OF SAN CLEMENTE 2
As identified in the March 4, 2025 City Council Agenda Report1, the first phase of the program included outreach and engagement with the community. Changes to the vehicle type or route may be authorized by the Program Administrator as a result of community outreach findings. The initial CMO grant proposal designated four MotoEV Electro Transit Buddy vehicles at a total budgeted cost of $228,000. However, limitations such as speed restrictions and street-legal compliance issues with the vehicles were identified. Following further research, it was determined that an alternative vehicle type would be necessary for the program.

On June 17, 2025 the City Council was presented with three alternative vehicle options: 1) Hometown Trolley, 2) Karsan-Damera eJest Mini Bus, and 3) EV Star Mobility Plus Shuttle.

Public input for vehicle preference was collected at three community events. The data from the first two events indicated a strong preference for the Trolley in comparison to the other two vehicle options. However, at the final community event the presentation poster was updated to feature one trolley or two shuttles, as two shuttles could be acquired for approximately the same cost as one trolley. The responses from the final engagement session were nearly split between the trolley and the two shuttles.

Discussion:

Trolley vs. Shuttle/Mini Bus
A key distinction between the alternative vehicle options is cost. One trolley can be acquired for approximately the same cost as two shuttles or two mini buses. Another significant difference is the level of service: two shuttles will reduce wait times and the shuttle vehicles would be better suited to navigate narrow streets when needed. The proposed route will take 30-40 minutes to drive and thus wait times would be about 40 minutes for 1 trolley or 20 minutes for two shuttles.

However, driver costs, which is expected to be the greatest cost of the program, would be lower with only one trolley. Staff has also learned that Hometown Trolley is ending their use of Motiv chasses for their vehicles, which added further uncertainty into the lead times and reliability of that option. These factors lead staff to suggest that a shuttle or mini bus would be a better option for the program.

Minibus vs. Shuttle
Staff analyzed a variety of factors in narrowing the list of electric transit vehicles that would be suitable for the fixed route service along the Pico corridor, including: pricing, seating capacity, top speed capability, ADA accessibility, and lead time on deliveries. With those parameters in mind, staff identified the Motiv Shuttle and the Karsan e-Jest Mini Bus as the two best options. A quote for two Motiv/Endera vehicles is provided in Attachment 2. A quote for two Karsan e-Jest Mini Buses is provided in Attachment 4. A brief comparison of the two alternatives is included below:

1 Resolution 25-18 and March 4, 2025 Agenda Report is available online here: https://casanclemente.civicplus.com/AgendaCenter/ViewFile/Item/90?fileID=603 290
Meeting Date: March 3, 2026 Agenda Item: 11H.

CITY OF SAN CLEMENTE 3
Motiv Shuttle
(2024 Endera B4)2
2024 new KARSAN
model e-JEST3
Price (for 2) $627,989 $725,184
Range 105 miles 130 miles
ADA Lift at rear Center ramp
Composition Ford E-Series cutaway chassis Custom build
Features Not included Includes Destination sign and
interior camera
Passengers 12 (2 ADA) 9 (1 ADA)
Charging Level 2 AC (3.75-8h) DC Combo 1 (up to 50 kW)
Licensure CDL Required CDL Not Required
Staff contacted the City of Santa Maria for insight
because the City currently uses the the Karsan-Damera
eJest Mini Bus to operate their new micro-transit pilot program. Some benefits of the Karsan-Damera eJest Mini
Bus include a low-profile side entry allowing seamless
ADA/wheelchair accessibility with an integrated electric ramp; a compact size (around 19-feet) to navigate narrow roads; and the option to not require Commercial Driver’s License (CDL) which would provide future flexibility in the hiring process and allow any authorized City employee to operate the vehicles. The SMT Manager also indicated
that the eJest requires less maintenance because it is a custom build and not a cutaway chassis. He indicated
that they have not had significant issues with the fleet of eJest vehicles.

In conclusion, while the initial price is slightly higher for the eJest vehicle, staff suggests that selecting this vehicle for the new “Pico Route” is preferable because of the custom build and design, superior mileage, better maintenance record, and flexibility allowing drivers that do not possess a CDL for operation. Under the CMO voucher, the City will be reimbursed for the cost of the vehicles. The CMO program administrators have received approval from the California Air Resources Board (CARB) to amend the City’s grant agreement to reflect the increased cost of electric vehicles and to apply a commensurate decrease in driver hours (reduced hours of operation) to offset the increase. The Amendment Request Form is provided as Attachment 6.

Vehicle Procurement
Staff has obtained pricing estimates for two e-Jest vehicles from all vendors authorized to sell in the United States. The only available purchasing options are through Electric Vehicle Choice or directly from the manufacturer. Based on the estimates, Electric Vehicle Choice currently offers the lowest price on the market, which was negotiated through Sourcewell. The quote from the manufacturer was higher than the quote from Electric Vehicle Choice for the same vehicle. The manufacturer’s quote is provided as Attachment 7.

2 https://www.enderamotors.com/electric-shuttle-bus
3 https://www.dameracorp.com/ejest/e-jest
e-Jest Mini Bus (above) and Motiv Shuttle (below)
291
Meeting Date: March 3, 2026 Agenda Item: 11H.

CITY OF SAN CLEMENTE 4
The proposed procurement requires an exemption to the City’s Purchasing Policy consistent with Section 1.4.3b to use a cooperative purchase agreement. The vehicles will be procured from Electric Vehicle Choice under a cooperative Sourcewell contract (Sourcewell Contract EV032824, provided in Attachment 8). As noted in the policy, this requires the City to enter into a separate contract with the vendor that follows approval thresholds set forth in the City’s Purchasing Policies and Procedures manual. Consistent with the policy, City Council approval would allow staff to negotiate a contract with the vendor consistent with the rate negotiated through Sourcewell, which staff has verified as the lowest rate.

Council Options:
 Approve Resolution No. 26-40, authorizing the purchase of two Karsan-Damera eJest Mini Buses from Electric Vehicle Choice using grant funds from the Clean Mobility Options Grant Voucher Program, authorizing an exemption to the City’s Purchasing Policy and awarding and authorizing the City Manager to negotiate, finalize and execute and agreement with Electric Vehicle Choice piggybacking off of the cooperative purchase agreement with Sourcewell and finding the action exempt from the California Environmental Quality Act (CEQA); or
 Modify Resolution No. 26-40, authorizing the purchase of two Motiv/Endera B4 eShuttles from Chrysler of Forest City; or
 Continue the item and direct staff to provide additional information.

Environmental Review/Analysis:

The City of San Clemente’s proposed project under the Clean Mobility Options (CMO) Voucher Pilot Program is statutorily exempt from CEQA under California Public Resources Code § 21080.25 because it involves a new transit service on existing public right of way within an urbanized area.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 26-40, which would:

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

2. Authorize an exemption to City Purchasing Policy 201-2-1 to allow for utilization of a cooperative purchasing agreement, specifically Sourcewell Contract EV-032824, consistent with Purchasing Policy Section XI.A.1.4;

3. Award a purchase agreement to Electric Vehicle Choice for two Karsan-Damera eJest Mini Buses in the amount of $725,183.47;

4. Authorize the City Manager to negotiate and execute contract documents consistent with Sourcewell Contract EV-032824 for the purchase of two Karsan-Damera eJest Mini Buses 292
Meeting Date: March 3, 2026 Agenda Item: 11H.

CITY OF SAN CLEMENTE 5
from Electric Vehicle Choice in the amount of $725,183.47, using funds from the Clean Mobility Options (CMO) Voucher Pilot Program Grant;

5. Authorize and direct the City Manager to negotiate and execute an amendment to the CMO grant budget and to the Mobility Project Voucher Agreement (Agreement Number MP23W2A16G) to reflect the final cost of the purchased vehicles; and

6. Authorize related supplemental appropriations from the General Fund revenue account 001- 000-33490 and expense account 001-808-45600 to receive all Voucher Pilot Program funds in the amount of $1.8 million, a portion of which will be used to fund the purchase of these two electric vehicles.
..end
Attachment:

1. Resolution 26-40

2. Motiv/Endera B4 eShuttle Quote

3. Motiv/Endera B4 eShuttle Brochure

4. Karsan-Damera eJest Mini Bus Quote from Electric Vehicle Choice

5. Karsan-Damera eJest Mini Bus Brochure

6. CMO Amendment Request Form

7. Karsan-Damera eJest Mini Bus Quote from Manufacturer Damera

8. Sourcewell Contract EV-032824 (negotiated rate)
Notification:

Electric Vehicle Choice and Karsan-Damera
293
Attachment 1
RESOLUTION NO. 26-40

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

PURCHASE OF TWO KARSAN-DAMERA EJEST MINI

BUSES USING GRANT FUNDS FROM THE CLEAN

MOBILITY OPTIONS VOUCHER PROGRAM, AUTHORIZING

THE CITY MANAGER TO EXECUTE AN AMENDMENT TO

THE CMO GRANT BUDGET TO REFLECT THE FINAL COST

OF THE VEHICLES, APPROVING AN EXEMPTION TO THE
CITY’S PURCHASING POLICY TO USE A COOPERATIVE
PURCHASING AGREEMENT, APPROPRIATING THE $1.8

MILLION IN GRANT REVENUES, AND FINDING THE

PROJECT STATUTORILY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER
CALIFORNIA PUBLIC RESOURCES CODE § 21080.25
WHEREAS, the Clean Mobility Options Voucher Pilot Program (Clean Mobility Voucher Pilot Program or “CMO”) provides funding for community-driven mobility projects that increase residents’ access to key destinations by providing various clean transportation options; and
WHEREAS, on February 21, 2023, the City Council of the City of San Clemente directed City staff to apply for a grant under the CMO Voucher Pilot Program’s 2023 Mobility Project Voucher (“MPV”); and
WHEREAS, the City of San Clemente qualifies as a voucher applicant per the Implementation Manual for the Clean Mobility Options (hereinafter “CMO”) Voucher Program (hereinafter “Program”); and
WHEREAS, the City of San Clemente, as Lead Applicant, submitted a Mobility Project Voucher Application on March 1, 2023, for the Clean Mobility Options Voucher Pilot Program (“CMO”), which application was for the procurement of light or medium duty battery electric vehicles to serve local mobility needs for the AB 1550 Low-income Communities west of Interstate 5, south of Avenida Pico, and north of Avenida Valencia; and WHEREAS, CALSTART, as the CMO Program Administrator, desires to contract with City of San Clemente for, and City of San Clemente desires to provide mobility services described in its application for the CMO MPV; and
WHEREAS, the City of San Clemente is eligible to receive funding through CMO, a statewide initiative funded by California Climate Investments and California Energy Commission Clean Transportation Program Investments, and administered by California Air Resource Board’s Program Administrator team to provide funding for zero-emission shared mobility options to under-resourced communities in California; and WHEREAS, the City of San Clemente will comply with the requirements of the program and on March 4, 2025 the City Council adopted Resolution No. 25-018 to accept 294
Resolution No. 26-40 Page 2
CMO voucher funds in the amount of up to $1,800,000 for the San Clemente NEV Circulator Program for FY 2024/25 through 2029/30; and
WHEREAS, the City of San Clemente staff have reviewed commercially available vehicle models and associated costs of procurement and operation, and procurement of any qualifying commercial vehicles will require a revision to the grant agreement to reallocation or potion of operations costs to capital costs, in order to provide the service required by the grant terms and desired by the community; and WHEREAS, the only available purchasing options are through Electric Vehicle Choice, as negotiated by Sourcewell, or directly from the manufacturer. Based on the estimates, Electric Vehicle Choice currently offers the lowest price on the market, which was negotiated through Sourcewell Contract EV-032824. The quote from the manufacturer was higher than the quote from Electric Vehicle Choice for the same vehicle; and
WHEREAS, on June 16, 2025, the City Council approved Resolution 25-103 authorizing the City Manager, or designee, to submit an amendment request to the CMO grant (Agreement Number MP23W2A-11G) to reallocate grant funds from vehicle operations to vehicle purchase capital costs, with no changes to the City’s previous commitment of $200,000 in matching funds for operations.

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 and true and correct and incorporated fully herein as findings.

SECTION 2. That based on a review of the record as a whole, the project is hereby determined to be statutorily exempt from the California Environmental Quality Act under California Public Resources Code § 21080.25 because it involves a new transit service on existing public right of way within an urbanized area.

SECTION 3. That an exemption to City Purchasing Policy 201-2-1 to allow for utilization of a cooperative purchasing agreement, specifically Sourcewell Contract EV032824, for the City’s purchase from Electric Vehicle Choice, is hereby authorized because the purchase is consistent with Purchasing Policy Section XI.A.1.4 in that Sourcewell conducted a competitive bidding process, Electric Vehicle Choice has quoted the lowest price under its contract with Sourcewell, utilizing the Sourcewell contract and process is consistent with the purpose and intent of the City’s Purchasing Policy and state law and piggybacking off the Sourcewell contract is in the best interests of the City because a better price cannot be obtained through the City conducting an additional formal competitive process.

SECTION 4. That Electric Vehicle Choice is hereby awarded a purchase agreement for two Karsan-Damera eJest Mini Buses from Electric Vehicle Choice in the amount of $725,183.47 under the terms of the Sourcewell contract.

SECTION 5. That the City Manager is hereby authorized and directed to purchase 295
Resolution No. 26-40 Page 3
two Karsan-Damera eJest Mini Buses from Electric Vehicle Choice in the amount of $725,183.47, using funds from the Clean Mobility Options (CMO) Voucher Pilot Program Grant and to negotiate and execute a purchase agreement for the same substantially consistent with or better than the terms of the Sourcewell contract.

SECTION 6. That supplemental appropriations from the General Fund revenue account 001-000-33490 and expense account 001-808-45600 to receive all Voucher Pilot Program funds in the amount of $1.8 million, a portion of which will be used to fund the purchase of these two electric vehicles are hereby authorized and approved.

SECTION 7. That the City Manager is hereby authorized and directed to execute an amendment to the CMO grant budget and to the Mobility Project Voucher Agreement (Agreement Number MP23W2A-16G) to reflect the final cost of the purchased vehicles and to execute such other documents and take such other and further actions as may be necessary and proper to implement the CMO Project as indicated within Agreement Number MP23W2A-11G and accomplish the purposes and intent of this resolution.

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

PASSED AND ADOPTED this _____ day of ____________________, _______.

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. 26-40 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:

Buyer City of San Clemente
Co-Buyer
Address Chrysler of Forest City
1445 Hwy 69
Forest City, IA 50423
City San Clemente
State CA Zip 92673
641-843-3871 Phone
VIN
Vehicle
Model B4
White
Stock#
Year 2024 Make Endera
Body Type Medium Duty Bus Trim Color
$ 298,371.00 TRADE-IN ALLOWANCE AND OTHER CREDITS:

Year VIN
Price
Ford GPC Incentive
Make Model
Balance Owed to:

TRADE-IN GROSS ALLOWANCE: $ 0.00
Less Amount Owing 0.00
Net Trade-In Allowance 0.00
Or Remaining Trade-In Debt
Cash Down Payment or Credit Balance 0.00
Manufacturer's Rebate (if any) 1,000.00
TOTAL DOWN PAYMENT or AMOUNT OWED $ 1,000.00

BUYER'S TRADE-IN CERTIFICATION
$ 297,871.00
If you are trading in a vehicle, you certify the following:

1. That there is no salvage, repair or other history on the vehicle title that would affect the value of the vehicle. If there is salvage, repair or other history on the -11,790.00
title, you agree that the dealer may cancel this sale. That to the best of your 286,081.00
knowledge, the vehicle was never on a salvage, rebuilt or flood title in this or Base Selling Price
Non-Taxable ADA
Total Taxable Amount
Registration Fee
Title Fee
CA Highway Patrol Fee
Reflect Fee
Alt Fuel Surcharge

4.438% Sales Tax(EV)
VLF Fee
TIF Fee
County Fees
Weight Fee
Expedite Fee
Doc Fee
ABS Contingency Allowane
any other state.

2. That the air bags are intact and in working order.

3. That while you have owned the trade-in, its odometer has not been repaired, replaced, tampered with or altered in any way. That the odometer statement, damage disclosure statement and prior vehicle history which you provided us for your trade-in is true and correct.

4. That the original emission control system (including the catalytic converter) is intact. That the engine and transmission have not been changed from the manufacturer's original specifications. That the trade-in does not have a cracked or defective head, block, power-train or frame.

WARRANTY DISCLAIMER
YOU UNDERSTAND THAT THE VEHICLE IS SOLD "AS IS" WITH ALL FAULTS AND THAT THERE ARE Total Cash Delivered Price:

Less Manufacturer's Rebate::

Unpaid Cash Due on Delivery: NO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, or any other warranties, express or implied, covering the vehicle unless we make a written warranty to you or unless Comments:
(Applied toward third-party processing, DMV, title, and registration charges. Itemized bill provided; any unused portion will be refunded.) we make a written warranty to you or unless we enter into a service contract with you within 90 days from the date of this contract. If we do so, any implied warranty will last only as long as the limited written warranty.

This provision does not affect any warranties which may be provided by the manufacturer. If there is a manufacturer's warranty on the vehicle, we are not a part to it and it is not a part of this contract. If we are authorized by the manufacturer to perform warranty work on your vehicle, we hope that you ask us to perform the work. However, the manufacturer's warranty is between you and the manufacturer.

You understand that this agreement (including the terms on page 2) is an offer to purchase the vehicle described which will become a binding contract once the dealer has signed it. This document represents the complete agreement between you and the dealer regardless of any other oral, written or prior agreements or representations. However, if you are buying a used vehicle, the information you see on the window form for this vehicle is part of the contract and the information on the window form overrides any contrary provision in the contract.

Iowa law requires us to give you the following notice: You understand that liability insurance coverage which would protect you under the Iowa Motor Vehicle and Safety Responsibility Act IS NOT INCLUDED in your purchase of this motor vehicle.

By signing the contract, you are certifying that you are at least 18 years old (if there are two buyers, that at least one of you is 18 years old), that you have read this contract, all pages, and agree to its terms, and that you have received a copy of it.

Accepted By: X
Dealer's Authorized Representative Buyer's Signature
R_FMU_FLEETINV1_PP Page 1 of 2
910 Calle Negocio

65.00 25.00

30.00 1.00

3.00 12,832.30
1,957.00
193.00

10.00 8.00

75.00 285.00
1,638.94
$ $314,994.24
$
$ $313,994.24
$-500.00
-1,000.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Attachment 2
298
Features
• Unique redundant high voltage safety systems protects operator and vehicle • Electronic Stabilization Control helps prevent roll over or skidding during sudden deceleration
Patented battery management software and active thermal battery management optimizes charging and cold weather performance while maintaining highest level of system safety
• Proprietary Hill Hold technology ensures vehicle and driver safety • Over-the-air software updates
• Proprietary fleet health reports use vehicle field data to provide insights to help optimize fleet efficiencies and improve driver experience • Customizable regenerative braking settings for maximum range and operator comfort • Multiple body configurations available
• No CDL required
Shuttle Buses
Motiv has been electrifying shuttle buses for
airports, municipalities, hospitals, universities,
hotels and corporate campuses since 2015.

Our shuttles provide a healthier, smoother and
quieter ride while offering unparalleled reliability,
enhanced driver experience and significant
operating and maintenance cost savings.
of the top 20
North American fleets
10 fleet uptime
>98%
300+
customer vehicles
customer miles driven

4.5M
202407 | The information presented here may be subject to change at any time. | motivtrucks.com | © 2024 Motiv Power Systems Attachment 3
299
Electric Shuttle Bus Specifications
• Incentives and tax
rebates available
• Leasing and financing
• Charging infrastructure
and installation
Additional Options
Motiv Platform EPIC4
Passenger Count Up to 14 passengers, configurations vary Range Up to 105 miles
Max GVWR 14,500 lbs
Max Speed 65 mph
Overall Length 24’
Battery Capacity 127 kWh
Battery Technology Lithium-ion
Peak Motor Power Rating 295 kW / 394 hp
Peak Motor Torque Rating 1,190 Nm / 870 ft lbs
Gradeability 17%
Regenerative Braking Configurable
Level 2 AC Charging 19.2 kW / J1772
50% Charge Time ~2.5 hours
100% Charge Time ~8 hours
Level 3 DC Fast Charging (Optional) 60 kW / CCS
Built with our partners
Founded in 2009 and headquartered in the San Francisco Bay Area, Motiv is a leading manufacturer of medium-duty, zero-emission electric trucks. Motiv produces a range of vehicles, including step vans, shuttle buses, box trucks, and work trucks basis, all of which eliminate tailpipe CO2 emissions and particulate matter, while offering drivers and passengers a more comfortable, quieter and safer ride.

Motiv’s combination of operational cost savings and environmental performance helps customers meet increasingly stringent emissions and pollution standards as well as achieve their own Net-Zero, ESG or other climate impact-related pledges and commitments.

More information about the company’s products, services and career opportunities is available at motivtrucks.com
About Motiv Electric Trucks
Motiv Electric Trucks
[email protected]
650.458.4804
motivtrucks.com
For more information or
to order a Motiv electric
vehicle, please contact:
202407 | The information presented here may be subject to change at any time. | motivtrucks.com | © 2024 Motiv Power Systems 300 Electric Vehicle Choice
11033 Shoemaker Ave
Santa Fe Springs, CA, 90670-4636
USA
562-273-7777
www.evchoice.com
[email protected]

ESTIMATE
08/14/2025
Date Exp Date
EV-1296
Quote #
3 months, if PO received by Sept.
30 2025
Lead Time
09/03/2025
Description
Bill to Address
Qty Rate Amount
Ship to Address
Item
Jessica Gatny
City of San Clemente
910 Calle Negocio
San Clemente, California 92673
Jessica Gatny
City of San Clemente
910 Calle Negocio
San Clemente, California 92673
2 2024 new KARSAN model e-JEST Standard $326,426.67
Plus:minibus with small Hanover
amber/whiteDestination Sign, SEON 7 Camera
System with harddrive, and driver fan.

Completed $652,853.34 Tax
Vehicle:Karsan
Minibus
Sourced Good 2 As per 032824-ELV (cost + 10%) $32,642.67 $65,285.34 Tax Multiplier
Sourcewell 2 -$22,642.67 $-45,285.34 Tax
Discount
2 CA DMV exempt license plates, registration admin $85.00 fees.

Registration Fees $170.00 Non
California Tire Fee 8 CA state new tire fee, per tire. $1.75 $14.00 Non Tax
$673,037.34
$0.00
$52,146.13
Subtotal
Shipping
Order subject to Terms and Conditions of Sourcewell Contract 032824-ELV.

Sourcewell member No. 47992; https://www.sourcewellmn.
gov/participating-agency/47992
HVIP incentive is a competitive program with first come first serve basis. Vouchers are not guaranteed .

Accepted By: Accepted Date:

Total USD $725,183.47
Print Name:

Attachment 4
301
www.dameracorp.com 1
North America’s
Zero-Emission Mini-Bus
19-foot / 5,8m ZEB
Low Floor Entry

10.1” Touchscreen
High Maneuverability
Independent Suspension
19 passengers
Attachment 5
302
www.dameracorp.com 2
Lower maintenance and operation costs
Ideal for narrow streets
Quiet and comfortable
Quick Charging
The Perfect Choice
for Low-Ridership Areas
www.dameracorp.com 2
303
www.dameracorp.com 3
The Ultimate Solution
for On-Demand Transportation
Longer Service Hours
Enhanced
Connectivity and
Accessibility in
Suburban Areas
www.dameracorp.com
304
www.dameracorp.com 4
The 16” aluminum alloy
rims reflect its energetic
soul with a flawless
appearance on the road
LED headlamps, grooved front grille and LED
daytime running lamps create a stylish design
detailed with sharp lines that leaves a lasting
impression
Design
305
www.dameracorp.com
5 112 in / 2850 mm
99,8 in / 2534 mm
Stylish&
Charming
By having compact
dimensions, this EV
is well-suited and appealing
for navigating through
narrow streets
306
www.dameracorp.com
6 112in / 2850mm
230in / 5845mm
47in / 1189mm
Low
Entrance
Wide Sliding Door
Getting in eJEST is as easy as walking on the
straight road. The low floor allows passengers
to get in by just a half step. Thanks to these
advantages and a wide sliding door, parents
with strollers and the elder people get on and off
eJEST easily.
307
www.dameracorp.com
7 Elegant
Rear Design
A modern bus that will
revitalize the atmosphere
of your city
308
www.dameracorp.com www.dameracorp.com 6625 Kestrel Rd, Mississauga, ON L5T 1P4 905-696-8328 8 Protect Your
Investments
with eJEST
309
www.dameracorp.com www.dameracorp.com 9
Reliability
Handles tough weather
and difficult
road conditions
Karsan has designed a reliable mini-bus equipped with high-performance Li-ion batteries and a powerful electric motor. 310
www.dameracorp.com 10
Monocoque
Space Frame
Robust structure
Less vibration
Reliable
311
www.dameracorp.com 11
Cataphoresis
Electric Coating
10 Years
Anti-Corrosion Warranty
eJEST is produced with technology gained from Karsan’s
50+ years of manufacturing, including corrosion protection using cataphoresis techniques. In addition to being designed as a public transport vehicle, eJEST will withstand years of daily use with its strong monocoque chassis and composite plastic and aluminum body panels. With these standard features, eJEST will protect the user investment for the life of the vehicle.
312
www.dameracorp.com 12
The EV Solution
to Reduce Operational Costs
and maintenance
Fossil fuel reserves are decreasing gradually.

The decline triggers prices and reduces
the profit margin of public transportation
companies. This is where e-JEST comes in.

Because e-JEST is electric powered, it does
not pollute nature and reduces the total utility
costs by using a more economical resource.
www.dameracorp.com 12
Doesn’t
pollute the nature
313
www.dameracorp.com www.dameracorp.com 13
Charging
eJEST easily charges itself
through the charging socket
in the front grill.
13 314
www.dameracorp.com 14
Li-Ion batteries
Battery warranty is limited to 4 years or 124 274 mi / 200.000 km (whichever finishes the first) *Charging up to 80% battery capacity in ideal conditions Double
Battery
88 kWh
130mi / 210km 4 hours/ or 65 min - quick charging
Quick Charging
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Damera offers ABB charging solutions:

Terra AC Wallbox
22 kWh
Terra 124 UL Fast Charger
124 kWh (2x60 kW)
Charging stations
eJEST can be charged with
two types of AC and DC chargers
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Regenerative
Braking
During braking eJest charges
it’s batteries —
this increases its range
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As Powerful
as Diesel Vehicles
135kW
Max. Power
25%
Max. Gradeability
290Nm
Max. Torque
65mi/h/105km/h
Max. Speed
100% electric motor ensures strong acceleration
performance, generates high torque and reassures
the driver in demanding situations.
eJEST is always ready to conquer any city terrain.
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Steep hills do not pose a challenge for eJEST.
eJEST is always ready with its strong motor to
conquer any city terrain. eJEST’s electric motor
generates high torque and reassures the driver in
demanding situations. With its hill holder function,
on steep hills it is as easy as going on the straight
road.

Thanks to the short turning radius and
superior climbing performance, eJEST
travels easily in narrow streets and climbs up
ramps while fully loaded.

Comfortable Hill Start
Even 25% Slope
Superior
Maneuverability
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Utmost
capacity
utilization
19,2 ft 26,2 ft 40 ft
100%
Peak Hours
100%
Peak Hours
100%
Peak Hours
100%
Off-Peak Hours
43%
Off-Peak Hours
24%
Off-Peak Hours
eJEST reduces operational costs during off
peak hours where oversized empty buses has
redundant capacity. Thus it offers the capacity as
required by a city for these hours and brings an
affordable approach to public transportation.
eJEST
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Passenger Capacity
& Layout
Passengers getting on the eJEST can reach
seats positioned on the low floor conveniently
without an extra step.

In addition to adequate seat width and ample
space between the seats, eJEST offers spacious
travel possibilities with its roomy interior design
and panoramic windows, so the passengers
just need to sit back on their front-facing fixed
seats and relax while viewing the cityscape.
*Values are examples. These values may change as +/- depending on the selected features.

Battery
Capacity
Seated Foldable Wheelchair Max.

Standing**
Max. Total
Passenger**
Class I 88 kWh 10 2 1 9 19
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www.dameracorp.com www.dameracorp.com 6625 Kestrel Rd, Mississauga, ON L5T 1P4 905-696-8328 21 Comfort
and safety
for driver and
passenger
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4-Wheel Independent
Suspension
Rides like a car
Until eJEST, passenger and operator
comfort has not been expected in
public transport.

With 4-wheel independent suspension,
eJEST reduces road vibration and
increases passenger comfort offering
an automobile like comfort.
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Heated Windows
and Windshield
Tinted Windows
Tiltable & Telescopic Electrohydraulic
Leather Steering Wheel
Electric
Heated
Mirrors
Full Digital Cluster
A/C
Start/Stop

10.1” Multimedia
Touchscreen
Cabin
Everything considered
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Digital Claster
Digital instrument cluster provides all vehicle information and warnings like charge status, remaining range and average consumption, for safe and easy operation. All you need to do is to enjoy a smooth ride www.dameracorp.com 6625 Kestrel Rd, Mississauga, ON L5T 1P4 905-696-8328 325
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Touch
Screen
Everything is at the tip of your fingers thanks to the eJEST’s wide touchscreen, which is equipped with a radio/MP3 player, bluetooth and USB port for a more enjoyable journey. From this screen you can control air conditioning in the vehicle, select best routes with navigation, view rear camera and surveillance system for safe and easy driving experience
Diagnosis
Ambience Lights
Fof Lights
Charging
A/C Settings
Multimedia
(FM Radio, MP3 Player, Bluetooth)
Rear View Camera
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Technological solutions which make life easier
are incorporated into eJEST. It is so smart that
it does not need a key. RFID Card is enough for
it to wake up. To start eJEST, only touch the
Start/Stop key after you insert the card. It’s that
simple.

Drive with the comfort of your home with arm
rest. Has pneumatic suspension, lumbar support, foldable left arm rest.

ESP
ABS
DTC
HSA
TPMS
EBD
TCS
BAS
VDC
Keyless
Start&Stop
6 Way Adjustable
Pneumatic Driver Seat
Safety

BATTERY ROOM FIRE DETECTION SYSTEM

ELECTRIC MOTOR FIRE DETECTION SYSTEM

BRAKE PAD WEAR SENSOR

REVERSE GEAR BUZZER

FIRE SUPRESSION SYSTEM
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Validator Preparation
Internet Access
Infrastructure
Electric Roof Hatch and LED lights
USB Plugs
Intelligent Public Transportation
Internet connection is at your
service with Wi-Fi router
Nice and light interior with fresh air inside
Passengers can charge their devices on board
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Digital Route Indicator
eJEST provides solutions to transportation
issues with new generation technology,
and becomes the source of happiness for
communities.

The Karsan eJEST mini-bus can be an
effective solution for improving transportation
in suburban areas in North America. Low
population density in suburban areas makes
it economically challenging to develop and
maintain public transportation systems.

Due to its size (19ft) and full-capacity of
22 passengers, it is the best choice for the
development of on-demand transportation in
suburban areas. The eJEST can also navigate
through narrow streets and tight turns, which
is ideal for suburban areas with winding
roads and smaller lanes.

Positive
change
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Sustainable
Transit
Municipalities are increasingly opting for electric transportation as it offers numerous benefits over traditional fossil fuel-based vehicles. Electric vehicles are environmentally friendly, emitting little to no harmful pollutants and reducing carbon emissions, which helps to combat climate change. They are also quieter and more efficient, requiring less maintenance and operating costs in the long run. Furthermore, the use of electric vehicles can help to reduce the dependence on oil and enhance energy security. Overall, the adoption of electric transportation aligns with the goals of many municipalities to create more sustainable and livable cities.

Replacement of one 40-foot bus
with a Karsan eJEST will save about
80,000 kilograms of CO
2 per year.
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Karsan eJEST Specification
for Canada

VEHICLE TYPE
Vehicle Category & Class Bus/Class III

POWERTRAIN SYSTEM
Drive Type Battery Electric Vehicle (BEV)
Engine Type Electric Traction Motor
Maximum Power (kW & hp) 135 & 184
Maximum Torque (Nm) 290
Transmission Automatic

PERFORMANCE & ELECTRICAL SYSTEM
Top Speed (mph/kph ) 65/105
Maximum Gradeability (%) 25
Range (mi/km)¹ 130/210
High Voltage Battery (Type - Capacity) Li-ion - 88 kWh
Charging DC Up to 50 kW
BODY
Body Type Monocoque Chassis
Low Floor (10”/25cm Step Height)

SUSPENSION
Suspension System Four Wheel Independent Suspension
Front Axle Independent, MacPherson, Coil Springs
& Telescopic Shock Absorber
Rear Axle Trailing Arm, Helical Spring + Anti Roll Bar
BRAKES
Front & Rear Brakes Hydraulic Disc

DIMENTIONS
Overall Length 19’2”/5.9m
Overall Width Without Mirrors 6’9”/2.1m
Overall Width With Mirrors 8’4”/2.5m
Overall Height 9’4”/2.8m
Interior Height 6’4”/1.9m(min) and 7’2”/2.2m (max)
Front Overhang 47”/119cm
Rear Overhang 35”/89cm
Wheelbase 12’4”/3.75m
Turning Radius 22’11”/7m
Gross Vehicle Weight 11,000lbs/5,000kg
Curb Weight 8,400lbs/3,800kg
TIRES
Tire Sizes 225 / 75R16
Rim Sizes 6J x 16“
¹Based on NEDC testing standards with a base-level equipped vehicle. Range may vary depending on various factors, in particular: individual driving style, route characteristics, outside temperature, heating/air conditioning, seated & standing passenger weight. *Values are examples. These values may change as +/- depending on the selected features.

Battery
Capacity
Seated Foldable Wheelchair Max.

Standing**
Max. Total
Passenger**
Class I 88 kWh 10 2 1 9 19
STYLE
Exterior Design
LED High Beam & Low Beam Lights S
LED DRL (Day Time Running Lights) S
LED Fog Lamps S
LED 3rd Stop Lamp S
Rear Clearance Lamps S
16” Alloy Wheels S
Tinted Side/Transom Windows S
Driver Door S
2nd Emergency Door (CSA 409) O
Sliding Passenger Door S
Electric Access Ramp S
Body Colored Bumpers S
Bike Rack O
Impact Resistant Bumper O
Passenger Compartment
Yellow Handrails S
Stainless Steel Handrails O

TECHNOLOGY
Driver Compartment
Leather Steering Wheel S
10” Digital Cluster S
Electric Park Brake S
10,1” Multimedia Touchscreen S
2 Regeneration Modes S
Rear Parking Sensor S
Camera Systems
Rear View Camera S
Side View Camera O
Interior View Camera O
Video & Audio Systems
4 Speakers S
External Speaker S
PA System O
Passenger Compartment
Stop Sign & Digital Clock S
USB Ports in Passenger Area S
Internet Access (Wi-Fi Router) O
Line Systems
Telematics O
Front Destination Sign S
Other Destination Sign(s) O

CAD/AVL O

COMFORT
Heating & Cooling System
Roof Mounted Passenger A/C S
Driver A/C S
Passenger Heating S
(Cold Climate) CC Heater O
Driver Fan O
Mirrors & Windows
Roof Hatch S
Electric & Heated Side Mirror S
Electric & Heated Driver Window S
Heated Front Right Window S
Heated Windscreen S
Front Manual Sun Visor (Driver Only) S
Interior Lights
Driver Area Illumination S
Passenger Area LED Light Path S
Driver Compartment
Tiltable & Telescopic Hydraulic Steering
Wheel S
Remote Controlled Central Locking S
Driver Overhead Bin S
DPS O
Passenger Compartment
10 Fixed Seat, 2 fold-down/1 PMD S
Plastic Ergonomic Passenger Seats S
Plastic Passenger Seats with Insert O
Other
12V Battery S
FMS Gateway S
Farebox O
SAFETY
ESP - Electronic Stability Program S
Hill Holder S
ABS - Anti-lock Braking System S
HBA - Hydraulic Brake Assistant S
VDC - Vehicle Dynamics Control S
TCS - Traction Control System S
DTC - Drag Torque Control S
TPMS - Tire Pressure Monitoring System S
Battery Room Fire Detection System S
Electric Motor Fire Detection System S
Fire Supression System (For CC Heater) O
Brake Pad Wear Sensor S
Reverse Gear Indicator S
S = Standart
O = Option
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99,8/2534 (With Side mirrors)
82,5/2095 (With Fender Wick)
81/2055 (Without Mirrors)
112/2850 (With A/C)
35,5/903 147,6/3750 46,7/1187
71,3/1810
in/mm
71,3/1810
230/5845
Sizes in inches & mm
Technical Drawings
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Damera Corporation
www.dameracorp.com
USA: 1101 Miranda Lane, Kissimmee, FL 34741
Canada: 6625 Kestrel Rd, Mississauga, ON L5T 1P4
905-696-8328
[email protected]
Karsan Authorized Dealer
333
Attachment 6
334
1 of 1 | P a g e
TO Jessica Gatny
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673

SALESPERSON JOB PAYMENT TERMS EXPIRATION DATE
Roman Duplak Delivery of 2 bus units Net 30 days March 16th, 2026

QTY DESCRIPTION UNIT PRICE LINE TOTAL
2 KARSAN 2024 eJEST minibus with:
• Small Amber/White Hanover Head
Destination Sign with ECU
• SEON 7 Camera System with hard drive
• Driver Fan
• Universal Cupholder
$359,156.09 $718,312.18
2 Operator & Technician Maintenance Training
Packages Included Included
2 Standard Warranty Package (See attached)
• 2-year bumper-to-bumper
• 4-year high voltage battery only
Included Included
SUBTOTAL $718,312.18
SALES TAX TBD by Customer
TOTAL $718,312.18
Quotation prepared by: Roman Duplak
This is a quotation on the goods named, subject to the conditions noted below: All sales final, payment due within 30 days following receipt of buses and invoice. Expected bus delivery lead-time is 2 to 3 months.

To accept this quotation, sign here and return: ______________________________________________ Damera Bus USA LLC
1101 Miranda Lane
Kissimmee, FL 34741

QUOTATION
DATE: FEBRUARY 23, 2026
Attachment 7
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032824-ELV
Rev. 3/2022 1
Solicitation Number: RFP #032824

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Electric Vehicle Conversions, LLC, 11043 Shoemaker Avenue, Santa Fe Springs, CA 90670 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Class 4-8 Chassis and Cabs with Related Equipment, Accessories, and Services from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

EXPIRATION DATE AND EXTENSION. This Contract expires July 9, 2028, unless it is cancelled sooner pursuant to Article 22. This Contract allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier. Sourcewell retains the right to consider additional extensions beyond seven years as required under exceptional circumstances.

B. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES

Attachment 8
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A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

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A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
x Identify the applicable Sourcewell contract number;

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x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized

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subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE

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A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:

x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted

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price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

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D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.

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b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.

2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

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14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms

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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000

5. Professional/Technical, Errors and Omissions, and/or Miscellaneous Professional Liability. During the term of this Contract, Supplier will maintain coverage for all claims the Supplier may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Supplier’s professional services required under this Contract.

Minimum Limits:
$2,000,000 per claim or event
$2,000,000 – annual aggregate

6. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.

Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

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Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

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Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.

The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.

A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-

1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.

B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with

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the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.

C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).

Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

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Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.

F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.

G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).

H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.

I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.

K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and

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records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.

L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.

N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.

O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.

P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.

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R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.

Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.

S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.

T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.

22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Electric Vehicle Conversions, LLC
By: __________________________ By: __________________________ Jeremy Schwartz Jeramy Ostrander
Title: Chief Procurement Officer Title: CEO
Date: ________________________ Date: ________________________

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Electric Vehicle Choice (EVC) #032824-ELV
Pricing for contract #032824-ELV offers Sourcewell participating agencies the following discounts:
• Class III - VIII EVs range from 4.1% - 41.33% off EVC list price, by brand. • Chargers and other related products and services range from 9.45% - 72.67% off EVC list price, by brand.
• Up to 10% markup on cost of goods and services (i.e. body upfits and installation) • For purchases of 10 or more EVs of equal value, 1.5% volume discount. • For purchases of 20 or more EVs of equal value, 2.0% volume discount. • Additional discounts may be offered on a deal-by-deal basis. 371
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: March 3, 2026 Agenda Item: 11I.

Submitted By: Public Works
Prepared By: Belgin Cuhadaroglu, P.E, Senior Civil Engineer Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING A PROFESSIONAL CONSULTANT SERVICES AGREEMENT TO HOUT CONSTRUCTION SERVICES, INC., FOR

CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE CALLE FRONTERA LIFT STATION SOIL STABILIZATION, CIP PROJECT NO. 32201, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT IN AN AMOUNT NOT TO EXCEED $109,200 ..body
Fiscal Impact:

The expenditure of $109,200 for the Calle Frontera Lift Station Soil Stabilization is within the available approved budget of $1,080,976 from the Sewer Fund Depreciation Reserve, Account No. 054-467-43890-000-32201.

Summary:

The City Council is being asked to consider adoption of a Resolution (Attachment 1) awarding a Professional Consultant Services Agreement to Hout Construction Services, Inc. (HCS), in an amount not to exceed $109,200 (Attachment 2), for construction management and inspection services for the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201.

Due to the ongoing soil movement that the Calle Frontera Sewer Lift Station (Station) has been experiencing, a geotechnical team (i.e., Ninyo & Moore Geotechnical Consultants) recommended additional support of the Station. Stantec Consulting Services, Inc. designed a system consisting of caissons and a grade-beam to control future movement of the existing building and to prevent formation of deterioration cracks in the wet well structure. 372
Meeting Date: March 3, 2026 Agenda Item: 11I.

CITY OF SAN CLEMENTE 2
Alliance Diversified Enterprises was hired by the City Council on January 20, 2026 to construct the project and following staff analysis of qualifications, staff is recommending HCS provide construction management and daily inspection services for the project. The firm will also serve as liaison between the City and contractor to ensure the project plans and specifications are implemented as intended by the design engineer.

Background:

The Frontera Sewer Lift Station was constructed in the late 1970s and the building has been experiencing soil settlement. Building settlement monitoring and investigation conducted by a geotechnical team (i.e., Ninyo & Moore Geotechnical) revealed that the near-surface soils had high expansion potential and are prone to slope failure. The geotechnical team designed additional foundation support consisting of caissons and a grade-beam to control future movements of the existing building and prevent the formation of deterioration cracks in the wet well structure.

Stantec Consulting Services, Inc. prepared a bid package for the recommended improvements to the Calle Frontera Lift Station Soil Stabilization project. On January 20, 2026, the City Council awarded a construction contract in the amount of $769,904 to Alliance Diversified Enterprises, Inc. for the Calle Frontera Lift Station Soil Stabilization (Attachment 3) to implement the improvements.

This is a significant project that needs specialized inspections. Staff prepared a Request for Proposals (RFP), evaluated local consulting firms and did not find any local firms with adequate geotechnical construction management and inspection experience. Staff proceeded to contact six firms with known experience meeting the needs of the project, specifically, BKF Engineers, Advantec Consulting Engineers, Dudek, Michael Baker International, Inc., CJC Consulting, and MSN Engineers, Inc. City staff followed the City’s Procurement Policy and Procedures section VIII.C.4 by contacting at least five consultants, but only received one proposal from HCS an amount not-to-exceed $109,200. Thereafter, staff contacted an additional three firms (i.e., DeistBinsfield, Inc (DBI), Lee & Ro and AKM consulting Engineers) for additional proposals; however, no additional proposals were received.

HCS provided a very comprehensive and detailed proposal, has related geotechnical construction experience and provided a solid team with reasonable hourly rates compared to the industry standard. Staff would suggest that awarding a Professional Consultant Services Agreement to HCS is the best way to ensure successful project completion. HCS will serve as liaison between the City and the Contractor to ensure the project plans and specifications are implemented as intended by the design engineer. The scope of work for HCS to provide inspection services is provided in the proposed contract (Attachment 2).

The anticipated construction completion is spring of 2026. Staff is currently working with the contractor to establish a more detailed construction schedule.

Considerations Identified by Staff
The stabilization of the wastewater facility is critical in the operation of the sewer system. The best way to ensure project success is to have consistent and effective inspection services focused on making sure the project is constructed according to the project design. It may be 373
Meeting Date: March 3, 2026 Agenda Item: 11I.

CITY OF SAN CLEMENTE 3
possible to complete inspections with City staff, but with the anticipated inspection hours and specialized inspection needs, the services provided by HCS will be advantageous and preferrable.

Council Options:
 Adopt Resolution No. 26-41 (Attachment 1), awarding a Professional Consultant Services Agreement to Hout Construction Services, Inc., in an amount not to exceed $109,200, and authorizing the City Manager to execute the Agreement.
 Modify and adopt Resolution No. 26-41.
 Deny the adoption of Resolution No. 26-41 to authorize execution of the Professional Services Agreement with Hout Construction Services, Inc. and provide direction to staff.  Continue the item and direct staff to provide additional information.

Environmental Review/Analysis:

The Calle Frontera Lift Station Soil Stabilization was previously determined to be exempt from CEQA under Class 3 (New Construction or Conversion of Small Structures, 14 CCR section 15303) of the State CEQA Guidelines. A Notice of Exemption was filed with the County of Orange Recorder’s Office on August 7, 2025 for this Project.

Recommended Actions:

After consideration of available options, the City Council will need to determine if awarding a Professional Services Agreement to HCS is in the best interest of the City and in particular, the wastewater (sewer) system. If the City Council chooses to approve a Professional Services Agreement, staff suggests the City Council adopt Resolution No. 26-41, which will:

1. Award a Professional Services Agreement to Hout Construction Services, Inc. for construction management and inspection services for the Calle Frontera Lift Station, CIP Project No. 32201; and

2. Authorize the City Manager to execute a Professional Services Agreement with Hout Construction Services, Inc., in an amount not to exceed $109,200, in a form substantially similar to Contract No. C26-21 (Attachment 2) for the Calle Frontera Lift Station, CIP Project No. 32201.
..end
Attachment:

1. Resolution No. 26-41

2. Professional Consultant Services Agreement Contract No. C26-21

3. Staff Report dated January 20, 2026 (without attachments) ..recommendation
..end
Notification:

Hout Construction Services, Inc.
374
Attachment 1
4882-9904-3949 v1
RESOLUTION NO. 26-41

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AWARDING A

PROFESSIONAL CONSULTANT SERVICES AGREEMENT
TO HOUT CONSTRUCTION SERVICES, INC. FOR

CONSTRUCTION MANAGEMENT AND INSPECTION

SERVICES FOR THE CALLE FRONTERA LIFT STATION
SOIL STABILIZATION, CIP PROJECT NO. 32201, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AGREEMENT
WHEREAS, the Calle Frontera Sewer Lift Station is constructed in the late 1970s and the building has been experiencing some soil settlement; and WHEREAS, a building settlement monitoring and investigation conducted by a geotechnical team (i.e., Ninyo & Moore Geotechnical) revealed that the near-surface soils had high expansion potential and are prone to slope failure; and WHEREAS, the geotechnical team recommended additional foundation support with caissons and grade-beam to control future movements of the existing building and prevent the formation of deterioration cracks in the wet well structure; and WHEREAS, Stantec Consulting Services, Inc. designed and prepared a bid package for the Calle Frontera Lift Station Soil Stabilization. The work to be performed includes excavations and installation of new concrete cast-in-drilled-hole pile foundations; and
WHEREAS, on January 20, 2026, City Council awarded the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201, construction contract to Alliance Diversified Enterprises, Inc. as the lowest responsible and responsive bidder; and WHEREAS, the Project requires construction management and inspection services; and
WHEREAS, staff prepared a Request for Proposal and contacted six firms (i.e., BKF Engineers, Advantec Consulting Engineers, Dudek, Michael Baker International, Inc., CJC Consulting and MSN Engineers, Inc.) and received one proposal from Hout Construction Services, Inc. (HCS) through BKF in the amount not-to-exceed $109,200; and
WHEREAS, thereafter, staff contacted three other firms (i.e., Deist-Binsfield, Inc (DBI), Lee & Ro and AKM consulting Engineers) for additional proposals; however, no additional proposals were received; and
WHEREAS, HCS provided a comprehensive and detailed proposal, has related geotechnical construction experience and provided a solid team with fair and reasonable hourly rates compared to the industry standard.
375
Resolution No. 26-41 Page 2
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:

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

SECTION 2. A Professional Consultant Services Agreement is hereby awarded to Hout Construction Services, Inc. for the construction management and inspection services for the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201.

SECTION 3. That the City Manager is authorized and directed to execute a Professional Services Agreement with Hout Construction Services, Inc. in an amount not to exceed $109,200, in a form substantially similar to that presented to the City Council on March 3, 2026 for the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201.

SECTION 4. That the City Manager is authorized and directed to execute such additional documents and take such other and further actions as are necessary and proper to complete the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201 and accomplish the purposes of this resolution.

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

PASSED AND ADOPTED this _________ day of ______________, 2026.

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. 26-41 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _____ day of ______, 2026, 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 _________________, 2026. ________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_____________________________
Elizabeth A. Mitchell, City Attorney
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CITY OF SAN CLEMENTE

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 2026, by and between the City of San Clemente, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 910 Calle Negocio, San Clemente, California, 92673 ("City") and Hout Construction Services, Inc., a California corporation, with its principal place of business at 20250 SW Acacia Street, Suite 150, Newport Beach, CA ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional Construction Management and Inspection consultant services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional Construction Management consulting services to public clients, is licensed in the State of California, if applicable, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such professional Construction Management and Inspection services for the Calle Frontera Lift Station Soil Stabilization Project, P.N. 32201, project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the construction management consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from January 21, 2026 until the Services are completed to the satisfaction of the City, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this 378
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Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control, the City being only concerned with the finished results of the work being performed. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be solely responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Neither Consultant nor Consultant's employees shall in any event be entitled to any benefits to which City employees are entitled, including, but not limited to, overtime, retirement benefits, workers’ compensation benefits, injury leave or other leave benefits. Consultant is solely responsible for all such matters, as well as compliance with social security and income tax withholding and all other regulations and laws governing such matters.

3.2.2 PERS Eligibility and Employee Payments Indemnification. In the event that Consultant's employee providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions that would otherwise be the responsibility of the City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant's employees providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contributions to be paid by City for employer contributions and/or employee contributions for PERS benefits. Consultant agrees to defend and indemnify the City for any obligation, claim, suit or demand for tax, retirement contribution including any contribution to the PERS, social security, salary or wages, overtime payment, or workers’ compensation payment that the City may be required to make for work done under this Agreement. The provisions of this section 3.2.2 are continuing obligations that shall survive expiration or termination of this Agreement.

3.2.3 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.4 Endorsement on PS&E/ Other Data. Consultant shall sign all plans, specifications, estimates (PS&E) and engineering data furnished by Consultant, and where appropriate will indicate Consultant’s authorized signature and professional registration number.

3.2.5 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.6 Substitution of Key Personnel. Consultant has represented to City that 379
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certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Sam A Hout, CEO

3.2.7 City's Representative. The City hereby designates Director of Public Works/City Engineer, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.8 Consultant's Representative. Consultant hereby designates Sam A Hout, CEO, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.9 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.10 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.
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3.2.11 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Insurance. Consultant agrees to procure and maintain, at Consultant’s expense all insurance specified in Exhibit “C” attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "D" attached hereto and incorporated herein by reference. The total compensation shall not exceed One Hundred Nine Thousand Two Hundred Dollars ($109,200.00) without prior written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "D" of this Agreement. 381
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3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “D” may be adjusted each year at the time of renewal as set forth in Exhibit “D.”

3.3.6 Labor Code Requirements.

3.3.6.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.6.2 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code sections 1725.5 and 1771.1 shall not apply to Services performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code sections 1725.5 and 1771.1.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.
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3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time, with or without cause, by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Hout Construction Services
20250 SW Acacia Street, Suite 150
Newport Beach, CA 92660
ATTN: Legal Department
City: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
ATTN: David T. Rebensdorf, P.E., City Engineer and
Laura Campagnolo, City Clerk
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the 383
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City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.

3.5.6 Indemnification.

3.5.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if 384
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any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.5.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
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3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City, state and federal grant requirements and related programs, policies and guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts/Electronic Signatures. This Agreement may be signed in counterparts, each of which shall constitute an original. This Agreement may be signed with the same force and effect as original ink signatures.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 2026
______________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization

Hout Construction Services, Inc.,
a California corporation
(“CONSULTANT”)
By: _______________________________
Sam A. Hout/ CEO
Dated: __________________, 2026
By: ____________________________
Adam S. Hout/ CFO
Dated: __________________, 2026
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EXHIBIT "A"

SCOPE OF SERVICES
Consultant shall perform the following services for the City (collectively, the “Services”) to the City’s satisfaction:

Construction Management and Inspection Services, including:

1. Manage and administer project construction contract.

2. Negotiate and resolve construction contract disputes.

3. Evaluate and prepare change orders.

4. Prepare and administer project biweekly progress meetings.

5. Review and provide disposition of constructor submittals and design clarification requests in comparison with requirements of the contract documents, and coordinate with the design engineer and the City as applicable.

6. Coordinate additional review and disposition of structural construction shop drawings and design clarification requests with the design engineer and the City as applicable.

7. Monitor contractor’s compliance with Water Quality BMP’s.

8. Provide daily inspection of construction activities for compliance with plans and specifications, provide daily reports, coordinate and obtain required testing performance and test results.

9. Review and recommend the City for approval contractor’s pay requests.

10. Coordinate and assist in resolution of citizen concerns and complaints related to the project.

11. Compile and maintain project as-built drawing, photos and all construction related documentation to provide to the City upon completion of the project.

12. Provide all required communication equipment (phone), computer etc. required for the performance of the work. No field office will be provided by the Contractor or the City for the project. City offices can be used for project meetings. 388
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EXHIBIT "B"

SCHEDULE OF SERVICES
Consultant shall diligently perform the services to the City’s satisfaction according to the timetable requested by the City.
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2 EXHIBIT “C”

INSURANCE REQUIREMENTS

3.2.12 Insurance.

3.2.12.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.12.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000 per claim. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. (E) Cyber Liability Insurance. Not applicable.
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3 3.2.12.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

3.2.12.4 Professional Liability (Errors & Omissions):
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.

3.2.12.5 Workers' Compensation:
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

3.2.12.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.12.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall specifically allow Consultant or others providing 391
Attachment 2
4 insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.2.12.8 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention greater than $5,000 must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.12.9 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.12.10 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.

3.2.12.11 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A- VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.12.12 Enforcement of Agreement Provisions (non estoppel).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.2.12.13 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

3.2.12.14 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing 392
Attachment 2
5 subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
393
Attachment 2
6 EXHIBIT “D”

COMPENSATION
In full compensation for the Services rendered by the Consultant under the Agreement, the City shall pay the Consultant for actual work performed at the following hourly rates and within the following budget:

Construction Management/ Inspection:
 Project Manager
120 hours x $185= $22,200
 Field Inspectors
360 hours x $150= $54,000
 Construction Manager
40 hours x $150= $6,000
 Office Engineer
90 hours x $150= $13,500
 Project Control Lead
90 hours x $150= $13,500
TOTAL COMPENSATION SHALL NOT EXCEED: $109,200.00
394
Attachment 2
7 There are no reimbursable expenses under this Agreement. 395
Attachment 2
8 WORKER’S COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION
I hereby affirm under penalty of perjury one of the following declarations:
(ONE OF THE BOXES BELOW MUST BE CHECKED)
I have and will maintain a certificate of consent from the California Labor Commission to self-insure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract.

I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract. My workers' compensation insurance carrier and policy number are:

Carrier____________________________________________________ Policy Number______________________________________________ I certify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of San Clemente and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and property damage arising out of my failure to provide such worker’s compensation insurance. I further agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.

WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION

COVERAGE IS UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO

CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY’S FEES.
(Signature on following page)
396
Attachment 2
9 Dated: ________________________, 20____
_ DUDEK_
(“CONSULTANT”)
By: ________________________________________
________________________________________
Title
________________________________________
Address
________________________________________
397
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING

CITY OF SAN CLEMENTE
Meeting Date: January 20, 2026 Agenda Item: 10B.

Submitted By: Public Works
Prepared By: Belgin Cuhadaroglu, Senior Civil Engineer
Subject:
..titl e

BID PROTEST HEARING FOR THE CALLE FRONTERA SEWER LIFT STATION SOIL STABILIZATION PROJECT, CIP PROJECT NO. 32201, AND CONSIDERATION OF A

RESOLUTION AWARDING A CONSTRUCTION CONTRACT FOR THE PROJECT TO THE

LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, AUTHORIZING THE CITY MANAGER

TO EXECUTE THE CONSTRUCTION CONTRACT, AND FINDING THE PROJECT CATEGORICALLY ..body EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Fiscal Impact:

The consideration of the bid protest will affect the fiscal impact on the project, if the local contractor, second low bidder, becomes a low bidder per the San Clemente Municipal Code section 3.40.030 (E). The apparent low bidder is the protestor.

If the bid protest is denied, the total estimated construction cost for the Calle Frontera Sewer Lift Station Soil Stabilization project will be $885,404 (i.e., selecting Alliance Diversified Enterprises, Inc.), funded from the Sewer Depreciation Reserve Fund, Account No. 054-476-43890-000- 32201. If the bid protest is granted, the total estimated construction cost based on the lower bid estimate, from Wright Construction Engineering Corporation, is $853,202, which is funded from the same account. The available approved project budget is $1,969,517.

Summary:

Due to the ongoing soil movement that the Calle Frontera Sewer Lift Station (Station) has been experiencing, a geotechnical team (i.e., Ninyo & Moore Geotechnical Consultants) recommended additional support of the Station. The work includes caissons and grade-beam foundation to control future movement of the existing building and to prevent formation of deterioration cracks in the wet well structure.

City staff publicly bid the project and received a
protest in relation to the project bids. The protest
is presented to the City Council who will
determine whether to grant or deny the protest
following a hearing. If the protest is granted, the
protestor will become the lowest responsive
bidder (i.e., Wright Construction Engineering
Corporation); however, if the protest is denied,
the lowest responsive bidder is Alliance
Diversified Enterprises, Inc.
1 Attachment 3
398
Meeting Date: January 20, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE
Background:

The Frontera Sewer Lift Station is constructed in the late 1970s. The tributary area to this Station is approximately 670 acres. Upon receipt of the wastewater, the Station discharges through a 12- inch diameter forcemain in Calle Frontera to a manhole just west of Avenida Vista Hermosa, at which point the wastewater is conveyed through the collection system to the City’s Water Reclamation Plant for treatment.

A building settlement monitoring and investigation conducted by a geotechnical team (i.e., Ninyo & Moore Geotechnical) revealed that the near-surface soils had high expansion potential and are prone to slope failure. The geotechnical team recommended additional foundation support with caissons and grade-beam to control future movements of the existing building and prevent the formation of deterioration cracks in the wet well structure.

Stantec Consulting Services, Inc. designed and prepared a formal bid package for the Calle Frontera Sewer Lift Station Soil Stabilization. The work to be performed generally includes installation of concrete piles, constructing concrete pile caps and grade-beams, modifying lift station aboveground plumbing to recenter pipes in existing sleeves, and other miscellaneous site improvements.

Staff notified local contractors, advertised the project for competitive bidding on the PlanetBids website, and in the San Clemente Times. Five bids were received on November 12, 2025, ranging from $741,902 to $1,809,444 as shown on the table below.

Company Name
Company
Location Bid Amount
Wright Construction Engineering Corp. San Marcos, CA $ 741,902 Alliance Diversified Enterprises, Inc. San Clemente, CA $ 769,904 RE Chaffee Construction, Inc. Wrightwood, CA $ 1,166,900 Tharsos, Inc. La Mesa, CA $ 1,264,970
Bosco Constructors, Inc. Chatsworth, CA $ 1,809,444
The apparent lowest bid is Wright Construction Engineering Corp. of San Marcos, California at $741,902. However, the City received one bid from a local contractor, Alliance Diversified Enterprises, Inc., in the amount of $769,904. According to the San Clemente Municipal Code 2 I I J
I
I I r--
I I J
,--- ~ I -
-
399
Meeting Date: January 20, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE
section 3.40.030 (E) regarding the Local Vendor Preference for a sealed bid, the seven percent preference amount is $53,893. Applying the seven percent preference amount, Alliance Diversified Enterprises, Inc. bid is reduced by $53,893 to $716,011. With the local preference applied, Alliance Diversified Enterprises, Inc. is the lowest bidder.

The Bid Protest:

Following the bid opening on November 13, 2025, staff received a bid protest letter from Wright Construction Engineering Corp. (Attachment 3) regarding irregularities in the Alliance Diversified enterprises, Inc. bid documents.

Wright Construction Engineering Corp. protested on the grounds that Alliance Diversified Enterprises, Inc. (ADEI) bid was non-responsive based on the following irregularities:

1. “ADEI did not include a surveyor in their subcontractor form.

2. The bid was signed by the project manager and ADEI did not submit the appropriate documents to demonstrate signing authority of the project manager.

3. The bid bond was missing a notary acknowledgment, thus making the bid bond in violation of California Civil Code 1188.

4. ADEI did not include names/contact info on the experience form in the bid.

5. ADEI should not have been granted the 7% local vendor preference as a local bidder, per SCMC 3.40.030(E), as their principal place of business is in Escondido.

6. Violations illustrated above create an unfair competitive advantage for Alliance Diversified Enterprises, Inc. at the expense of all fully compliant bidders…” A city generally has the discretion to determine bid responsiveness and may either demand strict compliance with the bid specifications or can choose to waive a defect that is inconsequential or is an immaterial deviation. See Taylor Bus Serv., Inc. v. San Diego Bd. of Educ. (1987) 195 Cal.App.3d 1331, 1343. A bid defect cannot be considered inconsequential or immaterial if it gives the bidder an unfair competitive advantage or benefit over other bidders.

In response to Wright’s protest, staff has the following responses, as numbered per the above items:

1. Surveying is not listed as a bid item in the bid schedule, and will not be required of the contractor (See Attachment 5). The design engineer had performed the necessary survey during the design phase. Accordingly, this item is not a defect.

2. The instructions to the bidders (i.e. Section 00200 of the project Specifications) provide that the bidder may be requested to submit documentation, not that they must include them with the bid. (See Attachment 4). The City requested and obtained a letter of authorization from 4003
Meeting Date: January 20, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE
ADEI that the project manager was properly authorized to sign the bid (See Attachment 6).

Accordingly, this item is not a defect.

3. The stamp of the bid bond was not visible when scanned because it was white. ADEI submitted the original hard copy of the bid bond within 24hrs as required in the specifications.

Thus, the bid was not deficient. Further, Civil Code section 1188 is not applicable; it has to do with transfers of property. Accordingly, this item is not a defect.

4. The City requested and obtained names/contact information on the experience form (See Attachment 7). Requesting names/contact information on the experience form after the close of bids does not prejudice other bidders or give ADEI an unfair advantage. Accordingly, staff believes that this irregularity is inconsequential and recommend that it be waived.

5. Under San Clemente Municipal Code section 3.40.030, "local bidder" means a business with a physical location in San Clemente as indicated on an approved business license. ADEI has a San Clemente business license and conducts business out of a physical location in San Clemente located at 209 Avenida del Mar, Suite 201B (which is an office that they share with a company called WGI). (See Attachment 8). Accordingly, ADEI complies with the local bidder requirement that allows it to benefit from the 7% local vendor preference.

6. As noted, the only actual defect in the bid is the missing contact information from ADEI’s experience form, which staff believes is immaterial. The information has since been obtained and its omission does not prejudice the other bidders or create an unfair competitive advantage for ADEI.

Based on the above responses, staff believes that Alliance Diversified Enterprises, Inc. bid was responsive, and finds the defects were inconsequential and immaterial; therefore, staff recommends that the City Council waive the minor irregularities (item 4, providing names/contact information after the bid close), and award the contract to Alliance Diversified Enterprises, Inc. as the lowest responsive and responsible bidder.

Alternatively, after conducting the bid protest hearing, if the City Council determines that the irregularities in Alliance Diversified Enterprises are material or declines to waive them and insist on strict compliance, the contract should be awarded to the second lowest bidder after the application of the local vendor preference (Wright Construction Engineering Corp).

Based on the lowest responsive and responsible bidder being Alliance Diversified Enterprises, Inc., in the amount of $769,904, the estimated total construction cost for this project is as follows:

Construction Administration, Management and Inspection $115,500 Construction $769,904
Estimated Total Construction Cost $885,404
As required by state law and City policy, the selected contractor will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 2). Project plans and specifications are on file in the City Clerk’s office. 4014
Meeting Date: January 20, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE
Council Options:

The City Council should conduct the bid protest hearing and then may:
 Adopt Resolution No. 26-07 (Attachment 1), rejecting the bid protest submitted by Wright Construction Engineering Corp., waiving the immaterial bid error in the bid submitted by Alliance Diversified Enterprises, Inc., awarding the contract for the project to Alliance Diversified Enterprises, Inc., as the lowest responsible bidder submitting a responsive bid, and finding the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Conversion of Small Structures, 14 CCR Section 15303) of the State CEQA Guidelines, and authorizing the City Manager to execute a construction contract in an amount not to exceed $769,904.
 Accept the bid protest and modify and adopt Resolution 26-07 by awarding the contract to Wright Construction Engineer Corp. with the appropriate findings.  Continue the item and direct staff to provide additional information.  Do not adopt Resolution No. 26-07 and put the project on hold.

Environmental Review/Analysis:

This Project was determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Section 15303 of the state CEQA Guidelines, Class 3 (New Construction or Conversion of Small Structures), 14 CCR Section 15303). The Notice of Exemption was filed with the County of Orange Recorder’s office on August 7, 2025. (See Attachment 9.) Recommended Actions:
..recommendation
Staff recommends that the City Council:

1. Conduct a bid protest hearing, open the hearing, hear public testimony and comments, including any evidence and argument presented by the bidders, and close the hearing; AND, after the protest hearing, adopt Resolution No. 26-07, which would:

2. Find the Calle Frontera Lift Station Soil Stabilization, Project No. 32201, categorically exempt from CEQA under Class 3 (New Construction or Conversion of Small Structures, 14 CCR section 15303) of the State CEQA Guidelines;

3. Deny the bid protest submitted by Wright Construction Engineering Corp. and waive the immaterial bid irregularity in the bid submitted by Alliance Diversified Enterprises, Inc.;

4. Award the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201, construction contract to Alliance Diversified Enterprises, Inc., as the lowest responsible and responsive bidder after application of the local vendor preference; and

5. Authorize the City Manager to execute a construction contract with Alliance Diversified Enterprises, Inc. in an amount not to exceed $769,904, in a form substantially similar to Contract No. 26-02 (Attachment 2).
..end
4025
Meeting Date: January 20, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE
Attachment:

1. Resolution No. 26-07

2. Construction Contract with Alliance Diversified Enterprises, Inc.

3. Protest Letter from Wright Construction Engineering Corp.

4. Section 00200 of the project Specifications

5. Alliance Diversified Enterprises, Inc.’s Bid Documents

6. Authorization letter

7. Names/contact information for experience form

8. Alliance Business License

9. Notice of Exemption
Notification:

All Bidders.
4036
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: March 3, 2026 Agenda Item: 11J.

Submitted By: Public Works
Prepared By: Niki Beach, Environmental Programs Analyst Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO APPROVE AN AMENDED AND RESTATED

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) STORMWATER PERMIT IMPLEMENTATION AGREEMENT ..body
Fiscal Impact:

The cost for programs associated with the agreement will continue to be budgeted annually as part of the City’s budget process. The estimated cost for fiscal year 2026/27 is $315,000, increasing from the current cost of $265,000. As with prior iterations, this amended agreement will continue to provide for the establishment of annual cost-share budgets to be funded in part by the City, along with all other Orange County permittees.

Summary:

The City Council is being asked to consider a Resolution (Attachment 1) to approve an Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement (“Agreement,” Attachment 2) between the County of Orange, Orange County Flood Control District (“District”), and participating Orange County cities (collectively called the “Permittees.”) Key updated provisions of the Agreement include:
 Continued designation of the County as the administrator of the regional Orange County Stormwater Program.
 Clarification of Permittee responsibilities, including compliance reporting, monitoring, and implementation of Best Management Practices (BMPs).
 Engagement with the Orange County City Managers Association (OCCMA) for strategic input on compliance and funding.
 Opportunities for cost-sharing among smaller groups of Permittees to support development of targeted water quality projects and programs.

Background:

The City is a Permittee under the Municipal Separate Storm Sewer System (MS4) permit issued by the San Diego Regional Water Quality Control Board. The original NPDES Stormwater Permit Implementation Agreement (County Agreement #D90-94) which was executed in 1990 and amended in 1993 and 2002 (County Agreement #D02-048), established a cooperative framework for implementing the Orange County Stormwater Program to improve surface water quality and 404
Meeting Date: March 3, 2026 Agenda Item: 11J.

CITY OF SAN CLEMENTE 2
meet MS4 permit requirements for both the San Diego Region and the Santa Ana (north Orange County) Region. The Agreement allowed for collaboration, consistency, and cost sharing of regional compliance strategies, municipal staff training, watershed monitoring and reporting efforts, and other MS4 program elements required of each of the Permittees.

While the current Agreement has achieved many significant water quality improvements to local beaches and inland waters, state regulatory requirements issued through the MS4 permits have changed significantly since the Agreement was last updated. Watershed-specific water quality priorities have become increasingly complex requiring targeted solutions including structural treatment projects to meet ongoing and forthcoming compliance requirements.

The proposed Agreement restates and updates the original Agreement to reflect current regulatory requirements, administrative practices, and programmatic needs. It continues the collaborative approach among the Permittees to implement regional stormwater management strategies, but it also provides added flexibility in designing, and equitably funding, watershedspecific strategies, programs, and projects. As part of the shared cost budget approval process, the amended and restated Agreement also formalizes the consultation process with the OCCMA each year, which updates and improves the existing annual budget collaboration process already implemented with OCCMA.

The shared cost budget that is developed annually for this Agreement maintains the existing cost sharing formula approach based on land area and population for the unincorporated County and 34 Orange County cities, with the District contributing a flat 10% of the overall cost. For subbudgets allowed under this Agreement that do not apply to all the Permittees, this same cost sharing formula approach would be applied for the participating Permittees. Examples of the types of geographic areas that a sub-budget could apply include: across an MS4 permit area (e.g.

South Orange County), watershed level (e.g. Prima Deshecha Canada watershed), or subwatershed scales (e.g. Pier Bowl neighborhood).

Council Options:
 Adopt Resolution No. 26-42, which would authorize the approval of the Amended and Restated NPDES Stormwater Permit Implementation Agreement.
 Adopt Resolution No. 26-42 with modifications.
 Deny the adoption of Resolution No. 26-42 and withdraw participation in the NPDES Implementation Agreement, requiring the City to execute all the duties and functions of stormwater permit compliance individually and without existing economies of scale.  Continue the item with direction to provide additional information.

Environmental Review/Analysis:

Entering into an updated cost-share and program implementation agreement is not considered a project under the California Environmental Quality Act (CEQA). 405
Meeting Date: March 3, 2026 Agenda Item: 11J.

CITY OF SAN CLEMENTE 3
Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 26-42, which will approve and authorize the City Manager to execute the Amended and Restated NPDES Stormwater Permit Implementation Agreement.
..end
Attachment:

1. Resolution 26-42

2. Amended and Restated NDPES Stormwater Permit Implementation Agreement

3. Current Implementation Agreement D02-048 (C90-016) with the County of Orange

4. Staff Report dated June 19, 2002
Notification:

None.
406
Attachment 1
RESOLUTION NO. 26-42

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING AN

AMENDED AND RESTATED NATIONAL POLLUTANT

DISCHARGE ELIMINATION SYSTEM (NPDES)

STORMWATER PERMIT IMPLEMENTATION AGREEMENT
WHEREAS, since 1990, the City has participated in an NPDES Stormwater Permit Implementation Agreement with the County of Orange and other regulated cities within Orange County; and
WHEREAS, the Orange County NPDES Stormwater Permit Implementation Agreement was amended in 1993 and again in 2002 to add newly incorporated cities and clarify program responsibilities; and
WHEREAS, there is a need to amend and restate the Agreement once again to address the most recent and increasingly stringent regulatory requirements, to provide opportunities for local watershed-based planning and cost-sharing, and to formalize consultation on annual budget approvals with the Orange County City Managers Association; and
WHEREAS, with input from city managers, city attorneys, and stormwater program managers from throughout the County, the County of Orange has provided a newly Amended and Restated NPDES Stormwater Permit Implementation Agreement for approval and signature by each of the stormwater permittee cities in the County, which is in the best interests of the City.

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 Amended and Restated NDPES Stormwater Permit Implementation Agreement as presented on March 3, 2026, which shall replace the 2002 iteration of the Agreement.

SECTION 3. That the Mayor is authorized and directed to execute the Amended and Restated NDPES Stormwater Permit Implementation Agreement in a form substantially similar to that presented to the City Council on March 3, 2026.

SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2026. 407
Resolution No. 26-42 Page 2
ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the City of San Clemente, California San Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-42 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
408
No Highlight = Original Agreement Language unchanged
Blue Highlight = Original Agreement Language updated to current requirements/program administration Yellow Highlight = New Text/New Administration Intent
1 AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

STORMWATER PERMIT IMPLEMENTATION AGREEMENT
This AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT (“AGREEMENT”), for purposes of identification numbered [D02-048], and which may be alternatively referred to as the “OC Stormwater Program Implementation Agreement,” is entered into this ____ day of _________, 2026, by the County of Orange, (herein called the COUNTY), the Orange County Flood Control District (herein called DISTRICT) and the cities of Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, La Habra, La Palma, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (herein called CITIES).

The COUNTY, DISTRICT, and CITIES may be referred to collectively as PERMITTEES or individually as PERMITTEE, COUNTY, DISTRICT, or CITY, respectively, in this AGREEMENT.

RECITALS
WHEREAS, the United States Congress in 1987, through the Water Quality Act, amended Section 402 of the Clean Water Act (33 U.S.C.A. 1342(p)) to require the United States Environmental Protection Agency (“EPA”) to promulgate regulations for permitting stormwater discharges; and
WHEREAS, EPA regulations require National Pollutant Discharge Elimination System (“NPDES”) permits for discharges from a municipal separate storm sewer Attachment 2
409
No Highlight = Original Agreement Language unchanged
Blue Highlight = Original Agreement Language updated to current requirements/program administration Yellow Highlight = New Text/New Administration Intent
2 system (“MS4”)(herein after called MS4 permits), and further require MS4 permits to include requirements to control pollutants from stormwater discharges; and WHEREAS, in 1927, the Orange County Flood Control Act created the DISTRICT to provide for the control of flood and stormwater and protect from damage from those flood or stormwater, the harbors, waterways, public highways, and property within the DISTRICT’s jurisdiction; and
WHEREAS, the powers granted to the DISTRICT include the authority to regulate discharges that threaten to impact its system and carry on technical and other investigations, examinations, or tests of all kinds, making measurements, collecting data, and making analyses, studies, and inspections pertaining to water supply, control of floods, use of water, water quality, nuisance, pollution, waste, and contamination of water, both within and without the DISTRICT; and
WHEREAS, the California State Water Resources Control Board (“SWRCB”), as designee of the EPA, has delegated authority to the California Regional Water Quality Control Boards-Santa Ana Region (“RWQCB-SAR”) and San Diego Region (“RWQCB-SDR”)(collectively, the RWQCBs) for administration of MS4 permits within the boundaries of their regions; and
WHEREAS, the COUNTY, DISTRICT, and CITIES are PERMITTEES under MS4 permits issued by the RWQCBs; and
WHEREAS, the RWQCBs have designated the COUNTY as the Principal PERMITTEE or Principal Watershed Co-permittee, as defined in the MS4 permits; and WHEREAS, the COUNTY, the DISTRICT and the CITIES previously entered into that certain agreement entitled National Pollutant Discharge Elimination System Stormwater Permit Implementation Agreement D90-094, on December 18, 1990, which was subsequently amended on October 26, 1993 by Amendment No. 1 and then on June 25, 2002 (the December 18, 1990 Agreement as Amended by Amendment No. 1 and the June 25, 2002 amendment will be referred to collectively hereinafter as the 410
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3 ORIGINAL AGREEMENT), to cooperatively develop, and did thereunder develop, an integrated stormwater runoff management program with the objective of fulfilling MS4 permit requirements and improving water quality in Orange County (program referred to herein as the “OC Stormwater Program”); and WHEREAS, Section X of the ORIGINAL AGREEMENT provides that the ORIGINAL AGREEMENT may be amended by consent of a majority of the PERMITTEES which represent a majority of the percentage contributions as described in Section IV of the ORIGINAL AGREEMENT; and
WHEREAS, continued cooperation between the CITIES, the COUNTY, and the DISTRICT to jointly implement the OC Stormwater Program to fulfill prior, new, and potential future MS4 permit requirements, to the extent feasible, is in the best interests of the CITIES, the COUNTY, and the DISTRICT; and WHEREAS, the PERMITTEES now desire to restate and amend the ORIGINAL AGREEMENT, as reflected and set forth in this AGREEMENT.

NOW, THEREFORE, the PERMITTEES do mutually agree as follows:

I. FILING STATUS
The COUNTY, the DISTRICT, and each CITY have filed applications for MS4 permits as PERMITTEES. The COUNTY, the DISTRICT, and each CITY is a PERMITTEE under each MS4 permit to which they are subject.

II. INCORPORATION OF FEDERAL GUIDELINES
All applicable federal and state water quality regulations and guidelines under the Federal Clean Water Act, as presently written or as changed during the term of this AGREEMENT, are hereby incorporated by reference and made a part of this AGREEMENT and take precedence over any inconsistent terms of this AGREEMENT.

III. DELEGATION OF RESPONSIBILITIES
The responsibilities of each of the parties shall be as follows:

A. The COUNTY shall be the administrator of the OC Stormwater Program and, 411
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4 on a cost-shared basis, perform the following functions:

1. Annual operating budgets.
a. Prepare the annual operating budget (“annual operating budget”), which shall include a work plan and associated financial plan and budget. The annual operating budget is intended to provide for all programmatic functions and associated costs of the OC Stormwater Program, as outlined in this AGREEMENT and as generally described in section V.A. Annual operating budgets and work plans may be based on RWQCB region (i.e., Santa Ana Region versus San Diego Region). The budget year shall coincide with the COUNTY’s fiscal year, July 1 – June 30.
b. Consult with the Stormwater Program Representatives (as defined in Section III.C.8) when preparing annual operating budgets and major program elements therein.
c. A draft of the annual operating budget may be prepared for the PERMITTIES for review by February 15 each year. Annual operating budgets shall be submitted to the PERMITTEES for consideration and approval by May 15 of each year. Individual CITY approval shall be obtained from each CITY’s city manager or designee thereof by July 30 of each year. CITY manager designations for annual operating budget approval shall be provided in writing to the County and shall remain in effect until revoked in writing by the CITY’s city manager. An annual operating budget shall be deemed approved and adopted for the OC Stormwater Program by affirmative responses from PERMITTEES which represent a majority (50% or greater) of both the area and population percentage contribution as calculated in accordance with Section V.A (method for calculating approval percentage referred to as “Majority 412
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5 Approval”). The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V.A. d. An approved and adopted annual operating budget shall not be exceeded without prior Majority Approval of the PERMITTEES.

2. Project or watershed-specific sub-budgets.
a. In coordination with the PERMITTEES, prepare project-specific and/or watershed-specific budgets and associated work plans (collectively, “sub-budget(s)”) for the design of water quality projects and/or responding to RWQCB enforcement orders and/or other orders (e.g., California Water Code 13267 or 13383 orders). b. Sub-budgets shall be prepared and proposed on an as-needed basis, at the discretion of the COUNTY, or as requested by interested PERMITTEES, subject to concurrence of the COUNTY.
c. Each PERMITTEE willing to participate in a sub-budget will confirm participation to the COUNTY in writing. A PERMITTEE who confirms participation in a sub-budget shall be referred to herein as “PARTICIPATING PERMITTEE(s).” Sub-budgets will be subject to unanimous approval by all PARTICIPATING PERMITTEES, except that where a Participating Permittee fails to vote to approve a proposed sub-budget, such failure shall be deemed a withdrawal from the sub-budget and the withdrawing PERMITTEE shall no longer be considered a PARTICIPATING PERMITTEE and shall have no obligation to pay for or participate in the sub-budget. d. Project elements that go beyond design (e.g., construction, operation, and maintenance) shall not be provided for in subbudgets and, instead, are subject to separate agreement between 413
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6 the Participating Permittees.

3. Represent the OC Stormwater Program in reviews of documents, comments, and discussions with EPA, SWRCB, and RWQCBs and/or other resource agencies regarding MS4 permit requirements and related policies, programs, and regulations. The COUNTY shall timely notify the PERMITTEES of any decision reached during these discussions that, in the determination of the County, substantially impacts the OC Stormwater Program.

4. Implement approved annual operating budgets and sub-budgets.

5. Working in collaboration with PERMITTEES, prepare and submit regional compliance reports as the Principal PERMITTEE, as required under the MS4 permits, and/or as designated in the approved workplans.

6. Implement the regional monitoring and reporting program elements from approved workplans for the MS4 permits, including, but not limited to, tasks to monitor and measure the effectiveness of Best Management Practices (“BMPs”). This may include monitoring, and modeling.

7. Obtain, as may be required by the annual operating budget and/or subbudgets approved pursuant to this AGREEMENT, professional services, including, but not limited to, scientific, engineering, environmental, economic, and/or legal consultants to provide technical assistance for the work associated with the OC Stormwater Program. This work may include, but is not limited to, the preparation of technical or economic studies, legal analysis, watershed management plans, stormwater runoff management plans, water quality improvement plans, modeling, reasonable assurance demonstrations/reasonable assurance analyses, monitoring plans, technical reports, municipal staff training activities, and the design of structural and non-structural BMPs and strategies to prevent and/or reduce pollutants in stormwater runoff. Contracts for 414
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7 professional services to be funded under this AGREEMENT shall be made in conformance with the COUNTY’s procurement policies, and, to the extent there is no conflict, the following:
a. The COUNTY shall make efforts to stagger the date of issuance of new contracts for professional services, so that PERMITTEES may better absorb increases in consultant fee rates.
b. For contracts for professional services that would require approval by the Orange County Board of Supervisors (as determined within the sole discretion of the COUNTY), one Stormwater Program
Representative for every two designees of the COUNTY shall be allowed to participate in any panel formed for the purpose of evaluating responses to Requests for Proposals or similar competitive solicitations submitted by potential consultants. Where any contract subject to this provision is to be extended beyond the initial term, the COUNTY shall request feedback from the Stormwater Program Representatives, regarding the consultant’s performance, prior to executing the extension. This process shall in no way impinge upon or limit the COUNTY’s discretion to enter into, amend, extend, renew, or cancel any contract for professional services for the OC Stormwater Program.
c. The COUNTY shall notify the PERMITTEES of any changes in the COUNTY’s procurement policies that significantly affect the thresholds for competitive procurement, scoring, or selection processes for contract services.

San Clemente City CouncilMarch 3, 2026

San Clemente City Council
March 3, 2026