Agenda packet — San Clemente City Council, August 18, 2026 (part 1 of 2)

910 Calle Negocio
2nd Floor
San Clemente, California
www.sanclemente.gov
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
*Revised Special and Regular Meeting Agenda
to add item 11B(6) Planning Commission
Adjourned Meeting Minutes of August 5, 2026.

CITY OF SAN CLEMENTE
Tuesday, August 18, 2026
City Council
Revised Special and Regular Meeting
Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

PUBLIC PARTICIPATION
Public Comments may be provided to the City Council concerning matters that are within the jurisdiction of the City of San Clemente through the following methods:

In Person
City Council Chambers
910 Calle Negocio
2nd Floor
San Clemente , CA 92673
Zoom
(Audio participation only; public speakers will not be seen on video) https://us06web.zoom.us/j/87238127088
Webinar ID: 872 3812 7088
Phone
(669) 444-9171
Webinar ID: 872 3812 7088
Written: [email protected]
Note: Public Comments will not be read at the City Council meeting, but will be forwarded via email to the City Council and posted on the City website.

Watch the City Council meeting live via Zoom, YouTube or on Cox Cable.

Page 1 of 16 ends

1 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026

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.

Page 2 of 16 ends

2 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
CLOSED SESSION (SPECIAL MEETING 5:00 P.M.)
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to Government Code Section 54956.9(d)(1) Number of Cases: 2

1. Case Name: City of San Clemente v. Alfie Shahid, et al., Orange County Superior Court Case No. 30-2024-01381591-CU-MC-CJC.

2. Case Name: City of San Clemente v. Mark Middlebrook and Fadia Middlebrook, Orange County Superior Court Case No. 30-30-2025-01524090 -CU-OR-CJC.

BUSINESS MEETING (5:30 P.M.)

CALL TO ORDER
INVOCATION – Pastor Jim Wilke, Calvary South OC

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations
1A. Recognition of Humanitarian Awards Recipients - Sophia DeRouchey and Ryan Cuenca
Presentation of Commendation(s) to Humanitarian Award recipients Sophia DeRouchey and Ryan Cuenca.
1B. Recognition of Outgoing Commission and Committee Members Presentation of Commendation(s) to outgoing Commission and Committee members in recognition of their service and commitment to the City of San Clemente.

Arts and Culture Committee
Nicholas Crays
Kathi Koehler
Joshua Paskowitz
Beaches, Parks and Recreation Commission
Shari Grace
Teddy Kahn
Alyssa McCanne
Matthew Schmitt
Diek Van Nort
Community Safety and Welfare Committee
Stuart Anderson
Tom Hazelton

Page 3 of 16 ends

3 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
Golf Course Committee
Mandy Hamilton
Planning Commission
Gary McCaughan
1C. Orange County Sheriff Department (OCSD) Annual Report Presentation by San Clemente Police Services Chief Chevalier of the OCSD Annual Report.

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

Page 4 of 16 ends

4 City Council Revised Special and Regular Meeting
Agenda
August 18, 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. APPEAL OF THE DENIAL OF AN ADMINISTRATIVE ENCROACHMENT PERMIT FOR A WALL IN THE RIGHT OF WAY LOCATED AT 1202 AVENIDA

DE LA ESTRELLA AND FINDINGS UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Continued public hearing to consider a resident initiated appeal of the City Engineer’s denial of Administrative Encroachment Permit E25-0416 (“Permit”) for the unpermitted wall improvements cited by code enforcement CE2025-0141 located in the street right of way on Avenida De La Estrella and La Placentia. The basis of denial includes the wall’s location and height in excess of zoning standards.

The City Council will also consider whether the project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines such as § 15301.

Potential Action(s)
The City Council should conduct the appeal hearing and consider any information presented by the applicant or the public before or during the hearing. After conducting the appeal hearing, the City Council should adopt a resolution deciding the appeal.

If the City Council moves to adopt Resolution No. 26-109 without modifications, that will:..recommendation

1. Deny the appeal.

2. Uphold the denial of Administrative Encroachment Permit E25-0416 for retaining walls and stairs in the right-of-way.

If the City Council moves to adopt Resolution No. 26-XX without modifications, that will:..recommendation

1. Partially grant the appeal.

2. Determine the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Conversion of Small Structures, 14 CCR 15303(e)).

Page 5 of 16 ends

5 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026

3. Grant an Administrative Encroachment Permit E25-0416 for retaining walls and stairs in the right-of-way subject to the terms and conditions in the permit (Attachment 4), those specified in the resolution (the encroaching wall improvements shall not exceed a maximum height of 30 inches and the drain shall be removed or modified to properly drain to the street and not onto the sidewalk) and those specified in the Agreement Containing Covenants Affecting Real Property (Attachment 5).

If the City Council grants the full appeal of the applicant, the applicant will have no further obligation to correct any of the cited violations. 8B. CONTINUATION OF A SCHEDULED PUBLIC HEARING TO INTRODUCE (FIRST READING) OF AN ORDINANCE, AMENDING CHAPTER 13.04 OF

THE CITY OF SAN CLEMENTE MUNICIPAL CODE, CREATING A UNIFORM

PROCESS FOR SETTING FEES, AND ADOPTION OF A RESOLUTION,

ADJUSTING WATER DEPARTMENT FEE SCHEDULE FOR

MISCELLANEOUS WATER FEES
Public hearing to consider adjustments to the Water Department fee schedule for miscellaneous water fees. At this hearing, the City Council will consider both the amount and the methodology used in establishing the proposed fees and will consider all comments from the public, whether written or oral.

Potential Action(s)
If the City Council concurs with the information provided within this staff report, continue the public hearing to a date uncertain.

9. Unfinished Business
None.

10. New Business
10A. CONSIDERATION OF A RESOLUTION ADOPTING THE REAL ESTATE

ASSET MANAGEMENT PROGRAM (REAMP), APPROVING THE

ASSOCIATED PROGRAM POLICIES AND PROCEDURES, ESTABLISHING

THE CITY COUNCIL-DECLARED SURPLUS PROPERTY LIST,

AUTHORIZING THE CITY MANAGER TO APPROVE FUTURE

ADMINISTRATIVE MODIFICATIONS CONSISTENT WITH THE PROGRAM,

AND FINDING THE ACTION NOT SUBJECT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Potential Action(s)
If the City Council concurs with the contents of the staff report, the appropriate action would be to adopt Resolution 26-135 which will:

Page 6 of 16 ends

6 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
.recommendation

1. Adopt the Real Estate Asset Management Program (REAMP) as the City’s comprehensive framework for the inventory, classification, evaluation, and strategic management of City real property assets.

2. Approve updated City Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City-Owned Property”.

3. Approve new City Policy 901-2, “Property Acquisition Policies and Procedures”.

4. Approve the Citywide Real Property Inventory and associated asset classifications for portfolio-management purposes, subject to the limitations and property-specific requirements stated in the Resolution.

5. Establish Attachment 1, Exhibit A, “City Council-Declared Surplus Property List,” as the City’s official list of real property formally declared surplus by the City Council, and find that each listed property is no longer necessary for the City’s use.

6. Direct staff to administer the properties identified in the City Council-Declared Surplus Property List in accordance with the California Surplus Land Act, other applicable law, City policy, and any applicable procedures previously completed for an individual property.

7. Authorize implementation and public use of the REAMP GIS Dashboard.

8. Authorize the City Manager, or designee, to make non-substantive administrative modifications necessary to maintain the accuracy and usability of the REAMP, provided that such modifications do not change City Council-approved asset classifications, Opportunity Site directives, adopted policies, the City Council-Declared Surplus Property List, statutory surplus or exempt-surplus determinations, or other legislative or property-specific approvals and provided that such modifications are published on the City’s website and reported back to the City Council in connection with the next REAMP-related item.

9. Direct staff to administer the REAMP, maintain the real property inventory and GIS Dashboard, conduct a portfolio review in conjunction with the City’s biennial budget process, and return to the City Council with proposed policy amendments, asset reclassifications, modifications to the City Council-Declared Surplus Property List, and property-specific actions as appropriate.

Page 7 of 16 ends

7 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
10B. CONSIDERATION OF AN ORDINANCE AMENDING SECTION 1.12.010 OF

THE SAN CLEMENTE MUNICIPAL CODE TO AUTHORIZE THE PARK

RANGERS TO ENFORCE PROVISIONS OF THE CALIFORNIA FISH AND GAME CODE; AND FINDING THIS ACTION IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTIONS 15307, 15308, AND 15321
Potential Action(s)
Introduce and conduct a first reading of Ordinance No. 1812 entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SECTION 1.12.010(A)(6) OF THE SAN CLEMENTE

MUNICIPAL CODE RELATING TO PARK RANGER ENFORCEMENT DUTIES

AND FINDING THIS ACTION EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PUSUANT TO CEQA GUIDELINES SECTIONS 15307, 15308, AND 15321.
10C. CONSIDERATION OF RESOLUTION NO. 26-136, APPROVING THE ARTS AND CULTURE COMMITTEE FY 2026-27 WORK PLAN
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-136, which will approve the Arts and Culture Committee Fiscal Year 2026-27 Work Plan as proposed. However, if the City Council would like to modify the resolution to remove any action by the committee in relation to the outdoor amphitheater, the appropriate action would be to modify and adopt Resolution No. 26-136.
10D. CITY POSITION ON RESOLUTION BEING CONSIDERED BY THE LEAGUE OF CALIFORNIA CITIES (“CAL CITIES”) AT THE 2026 ANNUAL

CONFERENCE
Potential Action(s)
Determine whether or not to support the following Resolution at the League of California Cities General Assembly Meeting on September 25, 2026:

A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF

CALIFORNIA CITIES CALLING FOR A WORKING GROUP TO CONSIDER

A STATE CONSTITUTIONAL AMENDMENT OR OTHER FORM OF

INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER HOUSING AND LAND USE DECISIONS.

Page 8 of 16 ends

8 City Council Revised Special and Regular Meeting
Agenda
August 18, 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
Potential Action:
(1) APPROVE THE CITY COUNCIL SPECIAL AND REGULAR MEETING MINUTES OF AUGUST 4, 2026.

B. Commission/Committee Minutes
Receive and file the following:
(1) GOLF COURSE COMMITTEE REGULAR MEETING MINUTES OF
FEBRUARY 5, 2026.
(2) INVESTMENT ADVISORY COMMITTEE SPECIAL MEETING MINUTES OF APRIL 27, 2026.
(3) INVESTMENT ADVISORY COMMITTEE REGULAR MEETING
MINUTES OF APRIL 27, 2026.
(4) ARTS & CULTURE COMMITTEE REGULAR MEETING MINUTES OF APRIL 27, 2026.
(5) GOLF COURSE COMMITTEE REGULAR MEETING MINUTES OF MAY 7, 2026.
(6) PLANNING COMMISSION ADJOURNED MEETING MINUTES OF
AUGUST 5, 2026.

C. Warrant Register
(1) APPROVE WIRE TRANSFER NO.
3479 AND WARRANT NOS.
613105 THROUGH 613233, PAID ON
7-31-26, IN THE AMOUNT OF $6,164,972.67
TOTAL WARRANT REGISTER $6,164,972.67
Payroll Register
None.

Page 9 of 16 ends

9 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
11D. ADOPT ORDINANCE NO. 1811 (SECOND READING) RELATING TO 72-HOUR PARKING RESTRICTIONS AND FINDING THE ORDINANCE NOT

SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Potential Action(s)
Adopt Ordinance No. 1811 entitled AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SECTION

10.28.050 OF THE SAN CLEMENTE MUNICIPAL CODE RELATING TO 72-HOUR PARKING RESTRICTIONS AND FINDING THE ORDINANCE NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.
11E. NOTICE OF COMPLETION - FY 2026 MAJOR STREET MAINTENANCE AND FY 2026 PAVEMENT PRESERVATION PROGRAM
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-137, which will:

1. Accept the FY 2026 Major Street Maintenance and FY 2026 Pavement Preservation Program, CIP Project Nos. 26303 and 26304, from L.C.

Paving & Sealing, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the FY 2026 Major Street Maintenance and FY 2026 Pavement Preservation Program, CIP Project Nos. 26303 and 26304.

3. Authorize the City Clerk to release the payment bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the Contractor, L.C. Paving & Sealing, Inc.

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.

Page 10 of 16 ends

10 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
11F. NOTICE OF COMPLETION - RESERVOIR 12 SITE IMPROVEMENTS Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-138, which will:

1. Accept the Reservoir 12 Site Improvements, CIP Project No. 23403, from GCI Construction, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the construction work related to the Reservoir 12 Site Improvements.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the Contractor, GCI Construction, Inc.

SOIL STABILIZATION PROJECT
Potential Action(s)
If the City Council concurs with the recommendations contained in this staff report, moving this item without modifications would result in adoption of Resolution No. 26-139, which will:
..recommendation

1. Accept the Calle Frontera Sewer Lift Station Soil Stabilization, CIP Project No. 32201, from Alliance Diversified Enterprises, Inc.

2. Authorize the City Clerk to execute and record the Notice of Completion for the completed Calle Frontera Sewer Lift Station Soil Stabilization.

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

Page 11 of 16 ends

11 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
Director/City Engineer in the amount of 25% of the total construction cost. 11H. CONTRACT AWARD - DRIVING RANGE ERRANT BALL NETTING

EXTENSION AND FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-140, which will:
..recommendation

1. Find the Driving Range Errant Ball Netting Extension, CIP Project No. 13607, categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301, Class 1 (Existing Facilities) and Section 15302, Class 2 (Replacement or Reconstruction) of the state CEQA Guidelines.

2. Insist on strict compliance with the bid specifications and reject West Coast Netting, Inc.’s bid as defective and non-responsive.

3. Award the Driving Range Errant Ball Netting Extension, construction contract to Judge Netting, Inc. as the lowest responsible and responsive bidder.

4. Approve, and authorize the City Manager to execute, Contract No. C26- 50, by and between the City of San Clemente and Judge Netting, Inc., providing for the Driving Range Errant Ball Netting Extension, in the amount of $313,200.
11I. CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO THE CITY’S PURCHASING POLICY, AND AWARDING AN AGREEMENT TO ACE PARKING FOR PARKING ENFORCEMENT SERVICES FOR PHASE 2

OF THE PILOT PROGRAM
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-141, which will:

1. Authorize an exemption to the formal solicitation process under Section XI.A.1.2 of City Policy 201-2-1.

2. Award a Professional Services Agreement to Ace Parking III, LLC for Phase 2 parking enforcement pilot program services for an initial six-month term in an amount not to exceed $89,700, and authorize the

Page 12 of 16 ends

12 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
City Manager to extend the agreement on a month-to-month basis, at an amount not to exceed $14,950 per month, for up to six additional months.

3. Approve, and authorize the City Manager to execute, Contract C26-51, by and between the City of San Clemente and Ace Parking III, LLC, providing for parking enforcement services, for an initial six-month term, in an amount not to exceed $89,700, approve the City Manager to extend the agreement on a month-to-month basis, in an amount not to exceed $14,950 per month for up to six months.
11J. CONSIDERATION OF A RESOLUTION AUTHORIZING A SUPPLEMENTAL

APPROPRIATION TO FUND TEMPORARY STAFFING RESOURCES IN THE

UTILITIES WASTEWATER COLLECTIONS DIVISION IN THE AMOUNT OF $100,000 TO ADDRESS TEMPORARY STAFFING NEEDS
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-142, which will:

1. Approve a supplemental appropriation from the Sewer Fund Reserves to Account 054-473-43890, Other Contractual Services in the amount of $100,000.

2. Allow the Utilities Division to pursue temporary staffing resources and/or a limited-term position in order to maintain the current operations of the Sewer Collection System in a safe, reliable manner consistent with regulatory requirements.
11K. CONSIDERATION OF RESOLUTION NO. 26-143, APPROVING THE GOLF COURSE COMMITTEE FY 2026-27 WORK PLAN
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-143, which will approve the Golf Course Committee Fiscal Year 2026-27 Work Plan as proposed.

Page 13 of 16 ends

13 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
11L. CONSIDERATION OF A RESOLUTION TO AUTHORIZE THE PREPARATION

AND SUBMISSION OF AN APPLICATION FOR A COMMUNITY RESILIENCE CENTERS PROGRAM ROUND 2 PLANNING GRANT
Potential Action(s)
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-XX, which would:

1. Authorize staff to prepare and submit an application to the California Strategic Growth Council for up to $500,000 in Community Resilience Centers Program Round 2 Planning Grant funds; and

2. Affirm the City’s commitment to accept the grant funding and comply with grant requirements if the grant is awarded.

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 September 1, 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.

Page 14 of 16 ends

14 City Council Revised Special and Regular Meeting
Agenda
August 18, 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. • Speaker cards must be turned in when the agenda item is announced • 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

Page 15 of 16 ends

15 City Council Revised Special and Regular Meeting
Agenda
August 18, 2026
To minimize meeting distractions and sound system interference, please be sure all personal communication devices are turned off or on silent mode.

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

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

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

Page 16 of 16 ends

16 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 18, 2026 Agenda Item: 8A.

Submitted By: Public Works
Prepared By: Alex Vlosky, Associate Civil Engineer
Zak Ponsen, Assistant City Engineer
Subject:
..titl e

APPEAL OF THE DENIAL OF AN ADMINISTRATIVE ENCROACHMENT PERMIT FOR A WALL IN THE RIGHT OF WAY LOCATED AT 1202 AVENIDA DE LA ESTRELLA AND FINDINGS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body Summary:

The property at 1202 Avenida De La Estrella is a corner-lot parcel (intersecting with La Placentia) with an existing unpermitted retaining wall built in the public right-of-way along both street frontages. The property also has unpermitted concrete steps in the public right-of-way along Avenida De La Estrella. Recently, unpermitted modifications to the wall prompted a public complaint that the wall blocks the vehicle's line of sight at the intersection of Avenida De La Estrella and La Placentia. A Code Case (CE2025-0141) was initiated and the property owner applied for an Administrative Encroachment Permit to allow the wall and steps to remain in place.

The City Engineering Division reviewed the existing wall and site conditions and denied the application for the administrative encroachment permit on March 26, 2026 for several reasons including, but not necessarily limited to:
 Both the pre-existing and recently modified walls block the line of sight for vehicles turning onto Avenida De La Estrella from La Placentia. As constructed, the wall violates Orange County Standard 1117 for proper line of sight at intersections.  The wall and steps were built without permits and are located approximately 2’-4” from the curb face along the street frontages. The Building Code requires permits for such improvements and approval is discretionary, not by right.  The encroachment of walls and steps in the right-of-way prevents the future construction of a public sidewalk along either property frontage and will inhibit an ADA access ramp at the intersection. City Municipal Code 12.08, State, and Federal regulations all require sidewalk along public streets wherever feasible, including this location.  The recent modifications to the wall added light sconces that protrude even further into the right-of-way and pose a hazard to pedestrians in the area already significantly constrained.  The wall is also designed to allow the property to drain directly onto the existing narrow 2-footwide sidewalk creating a slip hazard on the narrow sidewalk. 17 Meeting Date: August 18, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE 2
 The pre-existing and recently modified wall heights exceed the Zoning Code limit, which requires walls and fences to be no more than 3.5 feet in the front yard setback.

The applicant has submitted an appeal letter and package (Attachment 2); however, staff is still unsupportive of allowing the improvements to remain in the right-of-way.

Pre-existing unpermitted wall with fence.

Existing line-of-sight and wall.

Background:

The pre-existing wall located along both frontages of a corner lot at 1202 Avenida De La Estrella has existed since at least 2007. According to the new property owner, the wall was likely built in the 1950-60’s. No permit records for any walls are on file with the City. In accordance with City Improvement plans, the property line is located 5’ from the face of the curb on both cross streets.

The wall encroaches into the right-of-way approximately 2’-4” from the face of the curb on both street frontages.

During the recent wall modifications, the pre-existing fence sections were removed and replaced with a solid wall between the columns, further reducing visibility. The wall height appears to vary from 60” to 75”. The existing drain holes to the sidewalk remain unmodified. Two new lamps were installed that protrude from the face of the wall at about head-height and pose a risk to 18 Meeting Date: August 18, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE 3
pedestrians walking on the narrow sidewalk. The gate at the stairway has also been modified into a solid structure that reduces visibility. The existing steps were not modified but lack a handrail and a compliant landing area.

This matter was included on the June 16, 2026, regular meeting agenda of the City Council. At the request of the property owner, City Council voted to continue the item until August 18, 2026.

Discussion:

San Clemente Municipal Code Chapter 12.20 governs the issuance of permits for encroachments into the public right-of-way. Permanent improvements, such as walls and steps, typically require an Administrative Encroachment Permit agreement to be recorded on the parcel title. These agreements hold the City harmless and require the property owner to remove the improvements in City right-of-way for any reason when requested by the City. This document does not preclude the requirement for building permits or other requirements for existing or proposed improvements (see Attachment 5 for an example).

The City Engineer reviewed the site conditions of the unpermitted wall and found that in accordance with Orange County Standard 1117, the wall violates the adequate site distance requirement for vehicles turning from La Placentia to Avenida De La Estrella. The location of the wall in the right-of-way also prevents the City or the property owner from constructing an ADAcompliant sidewalk in the future, which must be at least 4’ wide to satisfy State and Federal codes. The wall also drains onto the existing, deficient sidewalk creating the potential for unsafe pedestrian use during wet conditions. The modified wall has newly mounted lamps that protrude farther into the right-of-way. Additionally, since there are no records for permitting of the wall, there is no certainty that the wall was built to accepted standards to withstand the new weight that has been recently added to the wall by the recent filling of the areas between the columns with unknown types of soil (compaction issues, settling, expansion, water retention with clay soils absorbing water and becoming too heavy for the wall, etc.).

The Planning Division also reviewed the condition of the wall and found that it exceeds the zoning height limit for walls in the front setback which requires a discretionary hearing for any walls above 42 inches.

The property owner’s Appeal letter (Attachment 2) lists several reasons for arguing that the wall should remain, including privacy, unreasonable burden, and that the wall would meet the criteria for a sidewalk waiver if a sidewalk were to be built. Municipal Code 12.08.010(A)(4) requires property owners to build a sidewalk if their permit valuation exceeds $50,000 and allows application for waiver of sidewalk if the property owner needs to build a retaining wall in excess of 3 feet. This property is not required to install a sidewalk at this time, but a waiver of sidewalk would be reviewed in great detail when and if a project triggers the sidewalk requirement in the future. Based on initial analysis of the current grades of the site and neighboring residences, it appears that the existing wall retains 30-36 inches and may not meet the criteria for a waiver if the property owner were required to build the sidewalk.

The property owner has verbally offered to restore the wall to its original condition or modify it to help mitigate the issues. However, staff have determined that any wall, fence, or railing more than 30 inches high (meeting the 36 inch threshold for line of site with a 30 inch wall and 6 inch curb) 19 Meeting Date: August 18, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE 4
poses a line-of-sight issue at the intersection. Additionally, any allowance for a modified wall at this location should be subject to removal by the owner if the City, for any reason desires to have the wall removed. The City has an upcoming project to add a sidewalk on the other side of the street that may result in the need for a new ADA ramp at this intersection and require removal of the wall improvements in the near future. Finally, there are other safety issues (improper drainage and light sconce protrusions) also need to be corrected for safety reasons.

Considerations Identified by Staff:

The central issue in this appeal is whether a wall should be permitted to encroach into the public right-of-way. There are numerous reasons why the encroachment permit was denied. The sight distance poses a safety issue and a complaint from the public has already been received. Neither the previous wall nor the modified wall satisfies sight distance requirements of Orange County Standard 1117. The wall and step improvements impede the construction of a compliant 4-footwide sidewalk and ADA access ramp. Staff reviewed the other properties along this section of Avenida De La Estrella and determined that sidewalk is feasible along this entire block. There are also additional public safety concerns caused by improper drainage and light sconce protrusions into the public right-of-way.

If City Council elects to uphold the denial of Administrative Encroachment Permit E25-0416, then the property owner will be required to remove the wall and steps from encroaching into the public right-of-way and construct curb drains for the site drainage to properly discharge to the street.

Removing the wall from the right-of-way would result in the property owner needing to either regrade the yard to a sloped condition or construct a new retaining wall at the property line that complies with zoning standards.

Conversely, approving or partially approving the appeal would allow a wall and stairs to encroach in the public right-of way, but should require reducing the wall height to not exceed 30 inches in height in order to satisfy the line-of-sight and zoning standards together with removal of the drains to fix the slipping hazard. The City’s future project to add a sidewalk on the other side of the street will include an ADA ramp to cross the street at this intersection, which could require wall removal at that time.

In either scenario, if the property owner does not voluntarily comply, it would result in continued enforcement action until the property is brought into a safe and legal condition.

In the event the City Council decides to partially or fully approve the property owner’s appeal, a draft version of the Administrative Encroachment Permit is included for City Council and applicant consideration (Attachment 4). Terms of the agreement (Attachments 4 and 5) include, but are not limited to, the following requirements for the property owner(s):
 Recording the agreement in the chain of title on the applicant’s property.  Compiling with City, local, State and Federal requirements.  Maintaining the encroachments in a safe and clean condition at its sole cost and expense. 20 Meeting Date: August 18, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE 5
 Agreeing to remove and pay for the removal and reconstruction of the encroaching improvements.
 Maintaining a homeowner liability policy or commercial general liability insurance naming the City and its elected and appointed officials, officers, employees, agents, and volunteers as additional insureds.
 Agreeing to defend (with counsel acceptable to City), indemnify and hold harmless the City all its agencies, officers, elected and appointed officials, employees, volunteers and agents from and against all liabilities, claims, demands, judgments, damages, losses, costs and expenses, including attorney and expert fees and costs that may in any manner or form arise out of or in connection with the encroachment, the property or issuance of the encroachment permit.

Council Options:
 Adopt Resolution No. 26-109 (Attachment 1), denying the appeal and upholding the denial of Administrative Encroachment Permit E25-0416 for retaining walls in the right-of-way.  Modify and adopt Resolution No. 26-109.
 Modify and adopt Resolution No. 26-___ (Attachment 3, Alternate Resolution), partially granting the appeal, making CEQA findings and directing the issuance of an administrative encroachment permit subject to City Council specified conditions.
 Grant full approval of the appeal which would allow the wall to remain in the current condition with no further obligation of the applicant.
 Continue the item and direct staff to provide additional information.

Environmental Review/Analysis:

If the City Council denies the appeal, the action is not considered a Project pursuant to California Environmental Quality Act (CEQA) Guidelines.

If the City Council elects to allow the existing or modified improvements, then staff recommends that the City Council determine that this project is categorically exempt from CEQA under Class 3 (New Construction or Conversion of Small Structures, 14 CCR 15303(e)) because it is an accessory structure.

Fiscal Impact:

None at this time.

Potential Action(s):
..recommendation
..recommendation
The City Council should conduct the appeal hearing and consider any information presented by the applicant or the public before or during the hearing. After conducting the appeal hearing, the City Council should adopt a resolution deciding the appeal.

If the City Council moves to adopt Resolution No. 26-109 without modifications, that would:..recommendati on 21 Meeting Date: August 18, 2026 Agenda Item: 8A.

CITY OF SAN CLEMENTE 6

1. Deny the appeal; and

2. Uphold the denial of Administrative Encroachment Permit E25-0416 for retaining walls and stairs in the right-of-way.

If the City Council moves to adopt Resolution No. 26-XX without modifications, that would:..recommendation

1. Partially grant the appeal;

2. Determine the project is categorically exempt from CEQA under Class 3 (New Construction or Conversion of Small Structures, 14 CCR 15303(e)); and

If the City Council grants the full appeal of the applicant, the applicant will have no further obligation to correct any of the cited violations.
..recommendation
..end
Attachment:

1. Resolution No. 26-109, denying the appeal

2. Applicant Appeal Package

3. Alternative Resolution No. 26-XX, partially granting the appeal

4. Sample Administrative Encroachment Permit

5. Sample Agreement Containing Covenants Affecting Real Property Notification:

Published in SC Times on June 4, 2026
Daniel Roberts, property owner
22 Attachment 1
4860-5047-5367 v1
RESOLUTION NO. 26-109

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, DENYING AN APPEAL

AND UPHOLDING THE DENIAL OF AN ADMINISTRATIVE

ENCROACHMENT PERMIT FOR A WALL AND STAIRS IN
THE RIGHT OF WAY LOCATED AT 1202 AVENIDA DE LA

ESTRELLA
WHEREAS, the City received a citizen complaint regarding a recently modified wall causing a line-of-sight issue for vehicles traveling from La Placentia onto Avenida De La Estrella; and
WHEREAS, according to the new property owner the wall and steps had existed in its unmodified condition since the 1950-60’s; and
WHEREAS, the original wall and recently modified wall were not permitted to be constructed within the public right-of-way; and
WHEREAS, Code Enforcement case CE2025-0141 was initiated and required the property owner to remove the wall and steps from the right-of-way, or get the necessary permits to allow them to remain; and
WHEREAS, the property owner applied for an Administrative Encroachment Permit per Municipal Code section 12.20.015; and
WHEREAS, the City Engineer/Public Works Director denied the permit application based on the wall improvements blocking the vehicle line-of-sight at the intersection of Avenida De La Estrella and La Placentia, the wall improvements blocking the ability to construct compliant 4-foot-wide sidewalk that meets State and Federal regulations, the wall improvements including light sconces and drainage outlets that cause a safety hazard to the public, and the wall improvements exceeding the Zoning Code’s allowable heights in the front yard setback; and
WHEREAS, per Municipal Code sections 12.20.020 and 17.12.140, the property owner appealed the decision of the Public Works Director to the City Council; and WHEREAS, on June 16, 2026, the City Council conducted a duly noticed appeal hearing and read and considered all evidence, testimony and information presented at or before such hearing; and
WHEREAS, on June 16, 2026, at the request of the property owner, the City Council continued the appeal hearing until August 18, 2026; and WHEREAS, on August 18, 2026, the City Council conducted a duly noticed appeal hearing and read and considered all evidence, testimony and information presented at or 23 Resolution No. 26-109 Page 2
before such hearing.

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

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

SECTION 2. That the City Council hereby denies the property owner’s appeal and upholds the denial of the Administrative Encroachment Permit for the wall and stairs improvements. The encroaching improvements shall be removed from the public right-of-way and the property owner shall comply with applicable laws.

SECTION 3. That City staff is authorized and directed to take all actions as are necessary and proper to accomplish the purposes 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 August, 2026.
__________________________
Rick Loeffler, Mayor of the City of
San Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
24 Resolution No. 26-109 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-109 was adopted at a regular meeting of the City Council of the City of San Clemente held on _______ day of August, 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 ________________, ________. _______________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
25 Attachment 2
City of San Clemente Engineering Division
910 Calle Negocio, Suite I 00
San Clemente, CA 92673
RE: Sidewalk Waiver Request for 1202 A VENIDA DE LA ESTRELLA To the City of San Clemente Engineering Division and the City Manager, This letter is in support of Mr. Roberts' Sidewalk Waiver request. The Sidewalk waiver is necessitated due to the City's recent decision to cite the 50+ year old retaining wall surrounding the property for encroachment.

The City Manager may waive the requirements when any of the following exists:

1. SCMC 12.08.01 0(A)(I ): Due to the location of the property, the terrain, and condition, the construction of the sidewalk would be impractical, as it would require moving a 50+ year old retaining wall.

2. SCMC 12.08.01 0(A)(9): When construction of continuous sidewalk on a street block is highly improbable due to major structures, massive retaining walls or major topographic issues. a. The property is enclosed by a massive retaining wall that was constructed in the 1950s or 1960s. This wall has been a feature of the property for decades and constitutes a "major structure" as described in the ordinance. The presence of this wall makes the installation of a new sidewalk impossible without its complete removal which would fundamentally alter the property and impose an unreasonable burden. The City has not previously required its removal, and to do so now would require the physical moving of this significant, preexisting structure.

3. SCMC 12.08.0 I 0(A)( 4 ): In slope areas, the construction of the sidewalk would require a retaining wall greater than three (3) feet high relative to the surface of the sidewalk. a. The existing retaining wall along the property frontage is currently over three feet high. In order to construct a new sidewalk, this entire wall would have to be demolished and relocated. This action is functionally and financially equivalent to the new construction of a retaining wall greater than three feet high-a condition for which this qualifier is intended to provide relief.

In addition to these primary qualifiers, this application requests that the location of the property line relative to the home is noted as the removal of this wall would create a significant privacy issue. The removal of the wall would establish a direct line of sight from the public right-of-way straight into the home's main living areas. Additionally, based on the 50+ years the wall has existed, the city has waived their right to demand its demolition or relocation.

Given these conditions, the presence of a historic retaining wall, the privacy issues, and the city's waiver of its right to demand the removal of the retaining wall, this letter respectfully request the approval of this application. If you would like more information or to meet at the site to discuss, I am available.

Thank you,
Spencer K. Schneider
Counsel for Mr. Daniel Roberts
26 City of SanClemente Engineering Division
9]OCALLENEGOCiO, SUITE l00 SAN CLEMENTE CA 92673
Phone: (949) 361-6100
Fax: (949)366-474]
E-mail: engineering@sai'i-cleinenie.org

SIDEWALK WAIVER

REQUEST FORM
APPL,cANTIC0 NTAc T Spencer K.Schneider, counsel forDaniel Roberts ADDRESS 205AvenidaDelMar#8l
CITY/STATE/ZIP SanClemente, CA9267
TELEPHONE(949)393-9323 E-MAIL [email protected] OWNER,ifotherthanapplicant Dan!elRo"er(s
ADDRESS 1202AvenidaDeLaEstrella
CITY/STATE/ZIP SanCleinente, CA 92672
TELEPHONE ( 562)7555382 EMAIL [email protected]
BUILDINGDEPARTMENTS CONSTRUCTIONVALUATION:$
ISTHEPROJECTDISCRETIONARY:YES NO (PLEASE CIRCLE ONE)
BUILDING PROJECT NO.

PROJECT DESCRIPTION.

Retaining wallhasbeeniplacesincethe1950sor1960s. After recentinaintenancehnrl nl'irlstrq to thtawi'ili, hy fhp prtor owner, the city has demanded its removal.

SIDEWALK WAIVER REQUEST SHALL INCLUDE:

A. Completed Sidewalk Waiver Request Form
B. Aformalfetterinsupportofthereason(s)forthesidewalkwaiver (SeeAttachment1) C. Clear photo(s) detailing the existing conditions and the limits of sidewalk to be waived (In electronic form)
D. Application fee: Per City Engineering Fee Schedule
I/We certify that I/We are the owners of the subject property or that I/we have been authorized by the owners to process this Sidewalk Waiver Request.

S,35, 10/6/2025
Signature Date
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 Attachment 3
4860-5047-5367 v1
RESOLUTION NO. 26-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, PARTIALLY GRANTING

AN APPEAL, DIRECTING ISSUANCE OF AN

ADMINISTRATIVE ENCROACHMENT PERMIT FOR A
WALL IN THE RIGHT OF WAY LOCATED AT 1202

AVENIDA DE LA ESTRELLA WITH CONDITIONS AND

FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT UNDER CLASS 3 (NEW CONSTRUCTION OR
CONVERSION OF SMALL STRUCTURES, 14 CCR
15303(E)) OF THE STATE CEQA GUIDELINES, SECTION
15303
WHEREAS, the City received a citizen complaint regarding a recently modified wall causing a line-of-sight issue for vehicles traveling from La Placentia onto Avenida De La Estrella; and
WHEREAS, according to the new property owner the wall and steps had existed in its unmodified conditions since the 1950-60’s; and
WHEREAS, the original wall and recently modified wall were not permitted to be constructed within the public right-of-way; and
WHEREAS, Code Enforcement case CE2025-0141 was initiated and required the property owner to remove the wall and steps from the right-of-way, or get the necessary permits to allow them to remain; and
WHEREAS, the property owners applied for an Administrative Encroachment Permit per Municipal Code section 12.20.015; and
WHEREAS, the City Engineer/Public Works Director denied the permit application based on the wall improvements blocking the vehicle line-of-sight at the intersection of Avenida De La Estrella and La Placentia, the wall improvements blocking the ability to construct compliant 4-foot-wide sidewalk that meets State and Federal regulations, the wall improvements including light sconces and drainage outlets that cause a safety hazard to the public, and the wall improvements exceeding the Zoning Code’s allowable heights in the front yard setback; and
WHEREAS, per Municipal Code sections 12.20.020 and 17.12.140, the property owner has appealed the decision of the Public Works Director to the City Council; and WHEREAS, on June 16, 2026, the City Council conducted a duly noticed appeal hearing and read and considered all evidence, testimony and information presented at or before such hearing; and
42 Resolution No. 26-109 Page 2
WHEREAS, on June 16, 2016, the City Council, at the request of the property owner, continued the hearing to August 18, 2026; and
WHEREAS, on August 18, 2026, the City Council conducted a duly noticed appeal hearing and read and considered all evidence, testimony and information presented at or before such hearing.

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

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

SECTION 2. That based on a review of the record as a whole, the City Council hereby finds and determines that the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Conversion of Small Structures, 14 CCR 15303(e)) of the state CEQA Guidelines, Section 15303 because the wall and stairs are an accessory structure.

SECTION 3. That the City Council hereby grant the property owner’s appeal in part and directs the City Engineer to issue an Administrative Encroachment Permit for the wall and stairs improvements with the following conditions:
a. The encroaching wall improvements shall not exceed a maximum height of 30 inches;
b. The drain shall be removed or modified to properly drain to the street and not onto the sidewalk;
c. The property owners shall execute an Administrative
Encroachment Permit and an Agreement Containing Covenants Affecting Real Property in forms substantially similar to those presented to the City Council on August 18, 2026; and
d. The property owners shall comply with applicable laws except as expressly provided otherwise in this resolution.

SECTION 4. That City staff is authorized and directed to take all actions as are necessary and proper to 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 August, 2026.
43 Resolution No. 26-109 Page 3
__________________________
Rick Loeffler, Mayor of the City of
San Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
44 Resolution No. 26-109 Page 4

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

AYES:

NOES:

ABSENT:

DATE ISSUED:

ADMINISTRATIVE ENCROACHMENT PERMIT
PRIVATE IMPROVEMENTS WITHIN PUBLIC RIGHTS-OF-WAY, EASEMENTS, ETC.

PROPERTY ADDRESS: 1202 Avenida De La Estrella TRACT/PM: 795 BLOCK: 8 LOT(S): 1 and 2 CROSS STREETS: La Placentia and Ease El Portal
PROPERTY OWNER: Robert and Heather Watson PHONE: 949-492-6154 ADDRESS: 1202 Avenida De La Estrella
EMAIL: __________________________________________________________________________________________________________________________ DESCRIPTION OF WORK:

Proposal for existing wall, fence, gate, steps, and drains to remain in the public right-of-way.

PERMIT ISSUANCE:

X WALL/FENCE/GATE $ ___
 MAILBOX (001-000-32340)
 HARDSCAPE
 STAIRS

X OTHER
Special Conditions: The encroaching wall improvements shall not exceed a maximum height of 30 inches and the drain shall be removed or modified to properly drain to the street and not onto the sidewalk.

As a condition of the issuance of this encroachment permit, the Property Owner(s) hereby agrees to the special conditions or the conditions of approval attached hereto, agrees to comply with all City, local, state and federal requirements, standards, and policies applicable to the construction and maintenance of the encroaching structure/use, agrees to and agrees to the recording of that certain Agreement Containing Covenants Affecting Real Property attached hereto, agrees to maintain the encroachment in a safe and clean condition at its sole cost and expense, agrees to remove and to pay for the removal and reconstruction/installation of the encroaching structure or use if City concludes, in its sole and absolute discretion, that the encroaching structure or use fails to comply with all applicable requirements, and agrees to remove the encroaching structure/use at applicant’s sole cost and expense should City conclude in its sole and absolute discretion that such removal is appropriate or desirable. The Property Owner(s) agrees to defend (with counsel acceptable to City), indemnify and hold harmless the City of San Clemente and all its agencies, officers, elected and appointed officials, employees, volunteers and agents from and against all liabilities, claims, demands, judgments, damages, losses, costs and expenses, including attorney and expert fees and costs that may in any manner or form arise out of or in connection with the issuance of this permit, any work performed in consequence thereof, any injury to persons or property related to the encroachment or the property or any failure of the Property Owner(s) to comply with the conditions of this permit or to maintain the area of the encroachment in a safe and clean condition.

Attachment 4
46 4936-9546-6423 v2
SIGNATURE:__________________________________________________DATE:______________________ PRINT NAME:_________________________________________________ Property Owner
PLANNING DIVISION ACTION: __________________________________________________________________________________________________________

PLANNING DIVISION STAFF:_____________________________________DATE:____________________

APPROVED BY:_________________________________________________DATE:____________________ City Engineer
47 -2-
4936-9546-6423 v2

RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:

City of San Clemente
910 Calle Negocio, Suite 100
San Clemente, CA 92673
Attn: City Clerk
Space above this line for Recorder’s Use
This Agreement is recorded at the request and for
the benefit of the City of San Clemente, California,
and is exempt from the requirement for payment of
recording fees pursuant to Government Code
Sections 6103 and 27383.

AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
(ADMINISTRATIVE ENCROACHMENT PERMIT)
This AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (ADMINISTRATIVE ENCROACHMENT PERMIT) (the “Agreement”) is dated for reference purposes only as of the ____ day of ____________, 2026 (the “Effective Date”), and is entered into by and between Robert and Heather Watson (“Owner”), and the CITY OF SAN CLEMENTE, a municipal corporation (“City”). Owner and City are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.” R E C I T A L S:

A. Owner is the owner in fee of that certain real property located at _1202 Avenida De La Estrella in the City of San Clemente, County of Orange, State of California, and more particularly described in Exhibit “A” attached hereto and incorporated fully herein by this reference (“Owner’s Property”).

B. City is the owner of an easement and/or public right-of-way on, over, under, and across a portion of the Owner’s Property described generally as follows: Avenida De La Estrella and La Placentia- Lots 3 and 12, Block D, Tract 795 (the “City Property”).

C. Pursuant to San Clemente Municipal Code Sections 12.20.015-12.20.020, any person who desires to construct, install, or maintain any improvements on City property or within a City easement or right-of-way must apply for and obtain an administrative encroachment permit.

Attachment 5
48 -3-
4936-9546-6423 v2
D. On July 25, 2006, the City Council of the City adopted Resolution No. 06-51 authorizing the City Manager or his/her designee to enter into written agreements with property owners to authorize encroachments granted pursuant to the City’s administrative encroachment permit process.

E. Pursuant to Municipal Code Sections 12.20.015-12.20.020 and Resolution No. 06-51, Owner has applied to City for an administrative encroachment permit to allow certain private improvements to be constructed, installed, and/or maintained within the City Property, as depicted or described in Exhibit “B” attached hereto and incorporated herein fully by this reference (the “Owner’s Improvements”).

F. On August 18, 2026, City approved said encroachment permit for the Owner’s Improvements (the “Encroachment Permit”) subject to the conditions set forth in adopted Resolution No. 26-XXX, including that Owner and City execute and record this Agreement against the Owner’s Property.

C O V E N A N T S:

Based upon the foregoing Recitals, which are incorporated into this Agreement by this reference, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both Parties, Owner and City agree as follows:

1. Owner’s Right to Construct, Install, and Maintain Owner’s Improvements on City Property. Subject to all of the other terms and conditions set forth in this Agreement, City hereby grants to Owner a revocable, non-exclusive license to enter onto the City Property to construct, install, repair and maintain the Owner’s Improvements. Owner shall at all times construct, install, repair and maintain the Owner’s Improvements in strict conformity with:

1.1 All applicable federal, state, and local laws, regulations, and official policies, including but not limited to the California Environmental Quality Act (Public Resources Code 21000 et seq.) and all applicable building, electrical, plumbing, and mechanical codes;

1.2 Any and all conditions set forth in the Encroachment Permit (a copy of which is a public record available for inspection during normal business hours in the office of the City Clerk located at 910 Calle Negocio, San Clemente, California, 92673);

1.3 The terms of this Agreement, including without limitation Exhibit “B” hereto; and

1.4 Any applicable permits, licenses, or approvals from other governmental agencies having jurisdiction over the Owner’s Improvements or the City Property.

2. If any of the Owner’s Improvements are located within a public street right-ofway, Owner shall not allow any of the Owner’s Improvements or any persons constructing, installing, maintaining, repairing, replacing, or removing the Owner’s Improvements on Owner’s behalf to obstruct or impair in any way vehicular, pedestrian, or bicycle travel or visibility on and along such street and Owner shall comply with and cause all of its employees, independent 49 -4-
4936-9546-6423 v2
contractors, and agents to comply with all safety rules and regulations and traffic control requirements as may be prescribed by the City’s Public Works Director or his/her designee.

3. Owner shall not in any way damage any City improvements on or adjacent to the City Property and, if any such damage occurs as a result of any acts or omissions of Owner or any employee, independent contractor, consultant, or agent of Owner, Owner shall promptly repair said damage to the satisfaction of the City’s Public Works Director or his/her designee and restore said City improvements as nearly as practicable to the condition existing immediately prior to such damage. All repairs and restoration work shall be completed within thirty (30) days of written notice from City, unless a longer period is approved in writing by the City’s Public Works Director or his/her designee.

4. Owner shall have no right to expand, enlarge, or otherwise alter the Owner’s Improvements in a manner inconsistent with or beyond the scope of City’s initial approval of same. If Owner desires to expand, enlarge, or otherwise alter the Owner’s Improvements in such manner, Owner shall first be required to obtain the written approval of City’s Public Works Director or his/her designee, which approval may be withheld in City’s sole and absolute discretion. In the event City’s approval for an expansion, enlargement, or alteration to the Owner’s Improvements is obtained, the Parties agree to execute an appropriate amendment to this Agreement to depict or describe the change and to record said amendment against the Owner’s Property, and at such time all references in this Agreement to the “Owner’s Improvements” shall be deemed to refer to the Owner’s Improvements as so expanded, enlarged, or altered.

5. Owner shall at all times maintain the Owner’s Improvements in good condition and repair (including without limitation repainting of any painted surfaces and removal of graffiti, if applicable) and Owner shall maintain the immediate area in a neat, tidy, and clean condition, free of any refuse and debris. In the event that any of the Owner’s Improvements consist of landscaping, Owner shall maintain said landscaping in a healthy condition, Owner shall promptly remove or replace any diseased or dead landscaping, and Owner shall prune or trim said landscaping in order to avoid or eliminate any potential traffic or safety hazards on adjacent roadways or sidewalks. Not by way of limitation of the foregoing, if any roots from any landscaping installed or maintained by Owner cause any damage to any City Street, curb, gutter, sidewalk, storm drain facility, pipeline, or other improvement, Owner shall promptly repair such damage and replace any damaged City improvement promptly upon City’s written demand. In addition, Owner at all times shall maintain any portion of the Owner’s Improvements consisting of irrigation lines, valves, and other equipment so as to conserve the use of water, comply with any applicable water conservation ordinances or regulations, prevent erosion, and contain runoff within the Owner’s Property (and to avoid runoff onto adjacent City streets and storm drains).

6. Owner shall maintain, or cause to be maintained, a homeowner’s liability policy or commercial general liability insurance covering the Owner’s Improvements and activities on the City Property within limits as specified by the City’s Risk Manager, naming the City, its elected and appointed officials, officers, employees, agents, and volunteers as additional insureds. Proof of insurance shall be provided to City prior to commencement of any work and maintained throughout the term of this Agreement. Owner shall provide City with at least thirty (30) days’ advance written notice of any cancellation, non-renewal, or material change in 50 -5-
4936-9546-6423 v2
coverage. The foregoing requirements may be waived in writing by the City Engineer in appropriate cases.

7. City Right to Expand, Enlarge, or Alter City Improvements. Notwithstanding the rights granted to Owner hereunder, City reserves the right to expand, enlarge, alter, maintain, repair, replace, and relocate any City-owned improvement on, over, under, or across the City Property and any adjacent City easement or right-of-way at any time, without any obligation or liability to Owner to repair or restore any damage that may be caused to any of the Owner’s Improvements. City shall provide Owner with reasonable advance written notice of any such work where practicable, but City’s failure to provide such notice shall not create any liability to Owner or limit City’s rights under this Section.

8. No Property Interest. The Encroachment Permit and this Agreement are not intended to and do not convey to Owner or create any interest in the City Property. This Agreement is intended as a non-exclusive and revocable license only. Owner has no right, title or interest in the City Property except as expressly provided in this Agreement.

9. No License Fee. Owner’s rights set forth in this Agreement are conditional and contingent upon Owner having paid to City any and all fees required to obtain the Encroachment Permit. Otherwise, however, Owner shall not be required to pay any license fee or similar consideration to City except as expressly set forth herein.

10. Term; Termination and Revocation of Encroachment Permit and Agreement.

This Agreement shall be of indefinite duration and shall be effective from the date this Agreement is fully executed and recorded against the Owner’s Property until the date this Agreement is terminated by either Party or revoked by the City pursuant to this Agreement.

10.1 Either Party shall have the right to terminate the Encroachment Permit and this Agreement, with or without cause, by delivery of written notice to the other Party. Prior to any termination by Owner becoming effective, Owner shall remove any Owner’s Improvements from the City Property, repair any damage caused by the Owner’s Improvements or removal of same to the City Property, and restore the City Property as nearly as practicable to the condition existing immediately prior to the installation of the Owner’s Improvements, all to the satisfaction of the City Public Works Director or his/her designee.

10.2 Subject to the next paragraph herein below, if City delivers written notice to Owner of City’s decision to terminate the Encroachment Permit and this Agreement, said termination shall be effective within thirty (30) days after the date of said notice unless the Parties mutually agree in writing to a different timeframe. Within said thirty (30) day period, Owner shall remove all of Owner’s Improvements from the City Property, repair any damage caused to the City Property by Owner’s Improvements and/or the removal of same, and restore the City Property as nearly as practicable to the condition existing before the installation of the Owner’s Improvements, all to the satisfaction of the City’s Public Works Director or his/her designee.

10.3. In addition to the foregoing, in the event Owner violates any of the terms or conditions set forth in the Encroachment Permit or this Agreement, City shall have the right upon 51 -6-
4936-9546-6423 v2
delivery of written notice to Owner to revoke the Encroachment Permit and this Agreement on shorter notice than thirty (30) days or, in cases of imminent threat to public health, safety, or welfare, no notice at all. In such event, Owner shall immediately remove all of Owner’s Improvements from the City Property, repair any damage caused to the City Property by Owner’s Improvements and/or the removal of same, and restore the City Property as nearly as practicable to the condition existing before the installation of the Owner’s Improvements.

10.4. Upon termination or revocation of the Encroachment Permit and this Agreement, neither Party shall have any further rights or obligations under this Agreement, subject to the following exceptions:
(i) Owner’s obligation to remove the Owner’s Improvements and repair and restore any damage to the City Property, as set forth hereinabove, shall survive the effective date of any such termination or revocation;
(ii) In the event Owner fails to timely remove any of the Owner’s Improvements and/or repair and restore any damage to the City Property, City reserves its legal remedies as set forth herein, including the right to recover from Owner City’s actual out-ofpocket costs, plus administrative charges and interest, to effectuate said work; and (iii) Owner’s release of liability and the rights of the City Indemnitees as set forth in herein shall survive any such termination or revocation.

11. City Remedies. If City determines that Owner is not maintaining any of the Owner’s Improvements in accordance with the Encroachment Permit or this Agreement or if City determines that Owner has not timely removed any Owner’s Improvements or unauthorized improvements or repaired any damage to the City Property and restored the City Property in accordance with the Encroachment Permit or this Agreement, City shall have the right to deliver written notice to Owner stating in reasonable detail what maintenance, repair, or improvement work is required. If Owner thereafter fails to perform such work within a reasonable period, not to exceed thirty (30) days from the date of City’s notice unless a different timeframe is specified in the notice based on the nature and urgency of the work, City reserves the right, in addition to any other rights and remedies it may have hereunder or pursuant to applicable law, to enter onto the City Property, and if necessary the Owner’s Property, to perform said maintenance, repair, improvement, or removal work itself, in which event Owner shall be responsible for reimbursing City for all of City’s actual out-of-pocket costs (including payroll costs for work performed by City employees) plus an administrative charge of fifteen percent (15%). In addition, if Owner fails to pay any City invoice for said work within thirty (30) days after written demand from City, Owner shall additionally be liable to pay City interest on the delinquent payment at the rate of ten percent (10%) per annum or the maximum interest rate permitted by law, whichever is less. City’s rights set forth in this Section shall survive a termination or revocation of the Encroachment Permit and this Agreement. City may also pursue any other legal or equitable remedies available under law, including but not limited to, seeking injunctive relief or recording a notice of noncompliance against the Owner’s Property.

12. As-Is Condition; No City Representations and Warranties Regarding Condition of City Property; Release and Indemnity.
52 -7-
4936-9546-6423 v2

12.1 Owner acknowledges and agrees that City is making no representations or warranties to Owner regarding the physical condition of the City Property, the existence of any patent or latent defects in the City Property or the location, condition, or other characteristics of any improvements situated on, over, or under the City Property, or the suitability of the City Property for Owner’s intended use or any of the Owner’s Improvements to be located thereon, and Owner assumes the full risk with respect thereto. Owner hereby releases City from any and all claims, liabilities, and losses that may be incurred by Owner with respect to the construction, installation, maintenance, repair, improvement, replacement, and removal of the Owner’s Improvements, including any personal injury or death, property damage, or economic loss arising therefrom, and City shall have no liability therefor.

12.2 In addition to the foregoing, Owner agrees to indemnify, defend (with counsel acceptable to City), and hold harmless City and City’s elected and appointed officials, officers, employees, contractors, volunteers and agents (collectively, the “City Indemnitees”) from and against any and all claims, demands, liabilities, judgments and losses arising out of or in connection with Owner’s construction, installation, maintenance, repair, improvement, replacement, existence or removal of any of the Owner’s Improvements, the use of the City Property or the Owner’s Property, or the issuance of the Administrative Encroachment Permit or this Agreement, including without limitation claims for personal injury or death, property damage, and economic loss, and including without limitation fines and penalties imposed by any governmental agency and attorney and expert fees and costs.

12.3 In the event that any claim is made by any third party against any of the City Indemnitees, City agrees to promptly tender said claim to Owner and thereafter Owner shall defend said claim with counsel reasonably acceptable to City. Owner shall keep City fully informed of the status of any such claim and shall not settle any claim without the prior written consent of City, which consent shall not be unreasonably withheld. City agrees to cooperate reasonably in the defense of any said claim, provided that Owner shall promptly reimburse City for any City out-of-pocket costs incurred with respect thereto, including without limitation payroll costs at the applicable City rates for any time reasonably expended by City employees in assisting with said defense.

12.4 City’s rights set forth herein shall survive a termination or revocation of the Encroachment Permit and this Agreement.

13. Miscellaneous.

13.1 Notices. Any notices required to be delivered by one Party to the other Party pursuant to the terms of this Agreement shall be in writing. Notices shall be deemed effective if personally served in the manner authorized in the California Code of Civil Procedure for the service of lawsuits or by mail delivered by United States mail, first class, postage prepaid, or by email to the email address provided by the Parties, to the following addresses: (i) for Owner, the address and email address of Owner’s Property as set forth on the cover page of this Agreement or as subsequently updated by written notice to City; and (ii) for City, the City Hall address (with notices directed to the attention of the City Manager and the City Clerk), and to the email addresses designated by City from time to time.
53 -8-
4936-9546-6423 v2

13.2 No Third Party Beneficiaries; Successors and Assigns. Notwithstanding any other provision set forth in this Agreement to the contrary, nothing herein is intended to create any third party beneficiaries to this Agreement (with the exception of the rights set forth in herein benefiting the City Indemnitees), and no person or entity other than Owner, City, and the City Indemnitees, and the permitted successors and assignees of any of them, shall be authorized to enforce the provisions set forth in this Agreement. This Agreement is intended to benefit and be binding upon Owner and any successor or assignee of Owner’s fee title to the Owner’s Property.

13.3 This Agreement shall constitute a covenant running with the land and shall be binding upon all future owners, heirs, successors, and assigns of the Owner’s Property.

13.4 Modification. No termination, amendment or other modification of any provision of this Agreement shall be effective unless set forth in writing and executed by both Parties.

13.5 Governing Law and Venue. This Agreement shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Orange, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation concerning this Agreement. Owner waives any right to removal under Code of Civil Procedure section 394.

13.6 Counterparts. This Agreement may be executed in counterparts, each of which, after all the Parties hereto have signed this Agreement, shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

13.7 Attorney Fees and Costs. In the event a Party hereto brings suit to enforce the terms of this Agreement or on account of breach hereof, the Party not prevailing in such suit shall pay all reasonable costs and expenses incurred by the other Party in such suit, including, without limitation, court costs, attorneys’ fees, and expert witness fees.

13.8 Entire Agreement. This Agreement constitutes the complete, integrated, and final agreement between the Parties with respect to the subject matter set forth herein and supersedes any prior discussions, negotiations, or agreements between the Parties on the same subject.

13.9 Severability. If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to make it valid and enforceable, and the remainder of this Agreement shall remain in full force and effect.

13.10 Waiver. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing 54 -9-
4936-9546-6423 v2
waiver unless otherwise expressly provided. No waiver shall be binding unless executed in writing by the party making the waiver.

13.11 Interpretation. This Agreement has been negotiated by the Parties and shall be interpreted fairly in accordance with its terms and not strictly for or against either Party.

The captions and headings used herein are for convenience only and shall not be used to interpret the substantive provisions of this Agreement.

13.12 Signatory Authority. Each person signing on behalf of a Party represents and warrants to the other Party that it has full power and authority to enter into and bind such Party to this Agreement, and that he/she will indemnify the other Party should such representation prove false.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

Date: _________________, 20___
“Owner”
___________________________________,
a ____________________________
By:

Its:

Date: _________________, 20___
Date: _________________, 20___
Owner”
___________________________________,
a ____________________________
By:

Its:
“City”

CITY OF SAN CLEMENTE,
a municipal corporation
By:

City Engineer
55 -10-
4936-9546-6423 v2
ATTEST:

City Clerk

ALL CAPACITY ACKNOWLEDGEMENT

STATE OF CALIFORNIA )
) ss

COUNTY OF )
On , before me, ,
personally appeared
who 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.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
_____________________________________
Signature of Notary Public (Notary Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
56 4936-9546-6423 v2
EXHIBIT “A”
LEGAL DESCRIPTION OF OWNER’S PROPERTY
Lots 1 and 2, Block 8, Tract 795
57 -12-
4936-9546-6423 v2
EXHIBIT “B”
DESCRIPTION/DEPICTION OF OWNER’S IMPROVEMENTS
Improvements include: masonry wall, fencing, gate, stairway, light fixtures, drainage, and landscaping.
58 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 18, 2026 Agenda Item: 8B.

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

CONTINUATION OF A SCHEDULED PUBLIC HEARING TO INTRODUCE (FIRST READING) OF AN ORDINANCE, AMENDING CHAPTER 13.04 OF THE CITY OF SAN CLEMENTE

MUNICIPAL CODE, CREATING A UNIFORM PROCESS FOR SETTING FEES, AND

ADOPTION OF A RESOLUTION, ADJUSTING WATER DEPARTMENT FEE SCHEDULE FOR

MISCELLANEOUS WATER FEES

Summary:

After notification and publication of a Public Hearing to discuss the creation of a uniform process for establishing fees and consideration of certain fees assessed by the Water Department, it was discovered that additional refinements are necessary. Therefore, staff requests continuation of the Public Hearing, to a date uncertain, when the Public Hearing will be noticed and published.

Background:

The Water Department provides numerous services to residents in addition to the provision of drinking and irrigation water such as meter replacements, waterline connections and similar related activities. Occasionally when the water rates are examined, there are some of the services that do not get reviewed. Staff are examining these services to ensure they are fair and equitable so that customers are not being overcharged for services provided to individual properties. Some additional research is necessary before making final determinations and a continuation of the Public Hearing is appropriate at this time.

Council Options:
 Open the Public Hearing to receive any public input and continue the hearing to a date uncertain.
 Provide specific direction to staff.

Environmental Review/Analysis:

Continuation of the item is not a project as defined by the California Environmental Quality Act (CEQA).

Fiscal Impact:

None.

Potential Action(s):

If the City Council concurs with the information provided within this staff report, continue the public hearing to a date uncertain.
59 Meeting Date: August 18, 2026 Agenda Item: 8B.

CITY OF SAN CLEMENTE 2
Notification:

Public Notice – San Clemente Times
60 910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 18, 2026 Agenda Item: 10A.

Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director Andy Flores, Management Analyst
Subject:
..titl e

CONSIDERATION OF A RESOLUTION ADOPTING THE REAL ESTATE ASSET

MANAGEMENT PROGRAM (REAMP), APPROVING THE ASSOCIATED PROGRAM

POLICIES AND PROCEDURES, ESTABLISHING THE CITY COUNCIL-DECLARED SURPLUS

PROPERTY LIST, AUTHORIZING THE CITY MANAGER TO APPROVE FUTURE

ADMINISTRATIVE MODIFICATIONS CONSISTENT WITH THE PROGRAM, AND FINDING THE ACTION NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body Summary:

At the June 16, 2026 City Council meeting, the City Council received an introductory presentation of the Real Estate Asset Management Program (REAMP), including the preliminary program framework, proposed asset classifications, and beta Geographic Information System (GIS)-based REAMP Dashboard. At that meeting, the City Council acknowledged the program and directed staff to continue development and return with final implementation recommendations. The minutes of the City Council meeting of June 16, 2026 are provided as Attachment 6.

Since the introductory presentation, staff has completed the comprehensive inventory of Cityowned real property, finalized the asset classification framework, developed supporting policies and administrative procedures, expanded the REAMP Dashboard, and incorporated feedback received during the program's development. Staff also evaluated comments received from the City Council and conducted additional research to identify opportunities where the REAMP can better support long-term municipal planning. Key considerations include:
 Wildfire Prevention and Land Management – Staff conducted additional research into municipal wildfire prevention and vegetation management practices, including the strategic use of City-owned property to support fuel reduction, habitat management, emergency preparedness, and public education.
 Governmental and Private Agricultural Uses of City-Owned Property – REAMP provides a framework for evaluating City-owned properties not only for traditional municipal operations but also for future governmental and private agricultural uses that advance City priorities.

The proposed Resolution (Attachment 1) formally adopts the REAMP document (Attachment 2) as the City's comprehensive framework for managing municipal real property, and approves an update to City Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City Owned Property” (Attachment 3) and approves a new City Policy 901-2, “Property Acquisition Policies and Procedures” (Attachment 5). The program establishes standardized 61 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 2
policies for inventory management, asset classification, acquisition, leasing, preservation, and disposition of City-owned property while improving transparency, supporting long-range financial planning, promoting compliance with applicable State laws, and providing a consistent framework for future real estate decisions.

The proposed Resolution also establishes Attachment 1, Exhibit A, “City Council-Declared Surplus Property List,” as the City’s official list of real property formally declared surplus by the City Council. Through the adoption of the Resolution, the properties included on that list are or will be determined to be not necessary for the City’s use and will be, or will continue to be, administered in accordance with the California Surplus Land Act and other applicable requirements. Establishment of the list does not approve the sale, lease, exchange, or other disposition of any listed property; it only declares the properties surplus or affirms that they have been previously declared surplus.

Additionally, the proposed Resolution authorizes the City Manager to approve future administrative modifications to the program document necessary to maintain the program, provided such modifications do not materially alter City Council-adopted policies or change the intended purpose of the program. Any such modifications would be published on the City’s website and reported to the City Council at its next meeting in connection with any REAMPrelated item.

Background:

The City of San Clemente owns and manages a diverse portfolio of real property assets, including civic facilities, administrative offices, community centers, beaches, parks, open space, parking facilities, utility sites, leased properties, public rights-of-way, and other municipal assets.

Figure 1, below, provides a map of the City showing the general location of City-owned real estate assets.

Historically, these assets have been managed through individual departments and programs, resulting in the absence of a centralized inventory and coordinated asset management strategy.

While this decentralized approach has allowed departments to effectively manage individual properties, it has limited the City's ability to comprehensively evaluate its real estate portfolio, identify strategic opportunities, maximize revenue potential, ensure regulatory compliance, and align property management decisions with long-term City objectives. Recognizing these challenges, staff initiated development of the REAMP. The program establishes a City-wide framework for inventorying, classifying, evaluating, and strategically managing municipal real estate assets while promoting transparency, accountability, and informed decision-making, all in compliance with state law requirements.
[Continued on next page]
62 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 3
Figure 1 – Map of City-owned Parcels
Discussion:

The REAMP was developed to establish a comprehensive framework for managing the City's real estate assets and complying with the Surplus Lands Act (SLA). The program is intended to provide the City Council, staff, the public, and entities interested in purchasing or leasing Cityowned property, with a centralized resource for understanding the City's real property portfolio, and current City Council direction on the use of City-owned properties.

As part of this effort, the REAMP seeks to provide a structured approach for evaluating the role of municipal real estate within the broader context of City operations, community needs, and longterm financial sustainability. It also formalizes a process to ensure regular review of those properties and compliance with the SLA.
63 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 4
REAMP Document
The REAMP is designed to assist the City in identifying which properties are essential to municipal operations, which assets should be preserved for future public use, where opportunities may exist to improve utilization of underperforming properties, and where properties should be declared surplus. In addition, the framework supports the evaluation of potential revenuegenerating opportunities through leases, partnerships, and redevelopment initiatives, while also identifying properties that may be suitable for acquisition, or use for affordable housing, economic development, public facilities, open space preservation, or other public benefit purposes. Equally important, the REAMP establishes a consistent process for evaluating future surplus property determinations and ensuring ongoing compliance with the requirements of the SLA.

The proposed classifications of City-owned properties include:
• Core / Strategic Assets
• Open Space Assets
• Future Development Assets
• Under-Utilized Assets
• Surplus Assets
• Exempt Surplus Assets
• Temporary Holding Assets
The REAMP provides a definition and description of each classification status, as well as an operational directive to inform how such properties are to be treated. These classifications are intended to establish a consistent methodology for evaluating City-owned properties and determining how those assets should be managed over time.

Opportunity Sites
Staff wishes to call specific attention to the “Opportunity Sites Short-List” provided on pages 12- 14 of the REAMP. This is an excerpted list to highlight the City-owned “Opportunity Sites” contained in the REAMP (Attachment 1, Exhibit A) that are identified as Surplus, Exempt-Surplus, or Future Development Assets, or, within the next two years, are likely to become an available Future Development Asset, or may be considered for a change in use or status of a Core/Strategic or Under-Utilized Asset. The “Opportunity Sites Short-List” is provided in Table 1, below, for ease of reference.

Table 1 - “Opportunity Sites Short-List”
Name APN Acreage General
Plan
Description
Status Discussion
Boys and Girls
Club Building
057-160-
03 1.13 Open Space
Public
Core/Strategic Currently utilized and provides
significant community benefit.

City staff intends to work
cooperatively in partnership
with the Boys and Girls Club to
facilitate potential Future
Development Opportunities to
renovate and expand the
64 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 5
Name APN Acreage General
Plan
Description
Status Discussion
existing building, including
identifying possible future lease
agreement extensions.

North Beach
Vacant Lot
057-192-
04 0.43 Mixed Use 1 Future
Development
Asset
Potential for conversion to a
Core/Strategic asset providing
additional public recreational
amenities to be determined by
future Council action. From
results of a Council-directed
public survey, the BPR
Commission recommends
developing the lot into a
flexible, structure-free
community space to host
seasonal programming,
fortified by a safety wall along
El Camino Real.

Senior Center
1 Senior Center
2 058-091-
33 058-091-
34 0.09

0.09 Residential
Medium
Density
Core/Strategic Currently utilized and provides
significant community benefit.

City staff will review proposals,
for Council consideration, to
provide Joint-Use parking lot
space leases/agreements for
public parking purposes during
times outside of Senior Center
hours.

Library 058-111-
60 0.76 Public Core/Strategic Currently utilized and provides significant community benefit.

City staff will evaluate, for
Council consideration, Future
Development opportunities for
additional public and Joint Use
purposes, as such
opportunities are identified,
such as a parking structure.
65 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 6
Name APN Acreage General
Plan
Description
Status Discussion
Vista Hermosa
Sports Park
678-163-
01 80.74 Open Space
Private
Core/Strategic City staff will evaluate, for
Council consideration, Future
Development opportunities for
additional Joint Use purposes,
similar to those already existing
(e.g., Fire Station, Salty Turf
lease, Goat Grazing lease,
OCFA Helipad, and additional
sports fields and facilities) to
maximize community benefit
and long-term asset value.

Old City Hall 1
Old City Hall 2
690-012-
01 690-012-
02 2.9

1.68 Civic Center Surplus City staff will evaluate, for Council consideration, Future
Development opportunities
from qualified bidders through
RFP or other marketing
strategies deemed appropriate.
(Note: The City has completed
the Surplus Land Act Low- and
Moderate-Income Housing
Notice of Availability process,
thereby making the property
eligible for disposition to other
parties.)
Steed Park 690-552-
06 43.43 Open Space
Private
Core/Strategic City staff will evaluate, for
Council consideration, Future
Development opportunities for
additional public and Joint Use
purposes, as such
opportunities are identified, to
increase community benefit and
asset utilization. Focus shall be
placed on uses which provide
public benefit through wildfire
prevention, governmental and
private agricultural uses,
education, community
outreach, public event and
demonstration space, and
similar facilities.

Parcel on 679-152- 3.31 Open Space Future City staff will evaluate, for 66 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 7
Name APN Acreage General
Plan
Description
Status Discussion
Camino Vera
Cruz
03 Private Development
Asset
Council consideration, Future
Development opportunities for
public, private, or Joint Use
purposes consistent with
applicable Open Space zoning
requirements, as such
opportunities are identified, to
increase community benefit and
asset utilization.

City Council-Declared Surplus Property List
As part of the proposed action, the City Council is requested to establish Attachment 1, Exhibit A, “City Council-Declared Surplus Property List,” as the City’s official list of real property formally declared surplus. The list consolidates the City’s currently designated surplus properties into a single Council-approved reference document and provides a clear basis for future administration of those properties under the California Surplus Land Act.

The properties included in the City Council-Declared Surplus Property List are determined to be owned by the City in fee and no longer necessary for the City’s use, including present or foreseeable operational, strategic, infrastructure, public-service, or other municipal needs. The Resolution therefore formally declares the listed properties surplus and directs staff to administer them in accordance with applicable law, while recognizing and affirming any Surplus Land Act procedures previously completed for an individual property.

The declared surplus property list is distinct from the broader asset classifications contained in the REAMP. Approval of the Citywide Real Property Inventory and Asset Classification Framework establishes the intended portfolio-management status of City-owned properties.

Except for those properties expressly identified in Attachment 1, Exhibit A, adoption of a REAMP classification does not, by itself, constitute a formal declaration of surplus land or exempt surplus land under the California Surplus Land Act. Any future addition to, removal from, or modification of the City Council-Declared Surplus Property List will require subsequent City Council action and any findings required by applicable law.

The establishment of the list does not authorize or commit the City to a particular disposition or development outcome (except for the underlying surplus designation). A future sale, lease, exchange, development agreement, or other property-specific action will be presented separately to the City Council or other appropriate approving authority after completion of applicable legal, fiscal, environmental, and transactional review.

Policy Framework and Effect of Adoption
As the City takes these necessary steps to implement the REAMP, new and amended existing policies will continue to ensure consistency with the City's real estate asset management objectives, current operational practices, and applicable State laws. These efforts include the newly drafted policies governing the acquisition of real property and overall real estate asset 67 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 8
management practices, as well as updates to existing real property policies related to the disposition of City-owned property and the ongoing leasing of municipal assets.

Implementation of the REAMP is supported by an update to existing City Policy 901-1 and the adoption of new City Policy 901-2. Together, these policies establish the procedures that will govern the City’s management, leasing, disposition, exchange, and acquisition of real property interests.

Updated Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City-Owned Property,” replaces the City’s existing 1994 policy with a modernized framework tied directly to the REAMP. A copy of this proposed policy is provided as Attachment 3, and the current version of the policy is provided as Attachment 4. The updated policy establishes procedures for periodic portfolio review and City Council assignment of asset classifications; compliance with the Surplus Land Act, CEQA, grant restrictions, and other regulatory requirements; evaluation of fair market value and fair market rent; use of competitive marketing or negotiated transactions when appropriate; and the preparation, approval, closing, and documentation of leases, sales, exchanges, and other real property transactions. The policy also recognizes that the highest monetary offer may not always provide the greatest overall public benefit and allows the City Council to consider proposed use, community benefit, transaction structure, financial return, and other municipal interests when evaluating a transaction.

New Policy 901-2, “Property Acquisition Policies and Procedures,” establishes a comprehensive framework for evaluating the acquisition or acceptance of real property interests by the City. A copy of this proposed policy is provided as Attachment 5. The policy requires identification of a public purpose, preliminary fiscal and strategic review, and appropriate due diligence concerning title, boundaries, environmental conditions, geotechnical conditions, buildings, infrastructure, maintenance obligations, risk, and long-term ownership costs. It also establishes additional protections for donated property and open space acquisitions, including lifecycle cost analysis, owner financial contributions, maintenance endowments, recorded maintenance agreements, easements, and other mechanisms intended to prevent the City from accepting unfunded or impractical long-term obligations. The policy further authorizes the use of qualified consultants, appraisers, brokers, engineers, environmental professionals, and other specialists when necessary to support an informed acquisition decision.

Adoption of the REAMP and its asset classifications establishes a portfolio-management framework and provides direction for future evaluation of City-owned property. The proposed action does not approve any specific acquisition, lease, sale, exchange, development project, land-use entitlement, expenditure, or physical improvement. Except where expressly stated in the proposed adopting resolution and supported by the findings required by applicable law, adoption of an asset classification does not independently constitute a declaration of surplus land or exempt surplus land under the California Surplus Land Act. Any future property-specific transaction or development proposal will remain subject to separate review and approval by the appropriate City authority, including applicable fiscal analysis, environmental review, public notice, regulatory compliance, and City Council consideration and approval.

The proposed authorization for future administrative modifications is intended to allow the City Manager, or designee, to maintain the accuracy and usability of the REAMP by correcting 68 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 9
typographical errors, updating hyperlinks and statutory references, revising lease or ownership information following an independently City Council-approved transaction, updating dashboard data, and making similar non-substantive changes. The authorization would not permit administrative changes to City Council-approved asset classifications, Opportunity Site directives, adopted policies, legislative or property-specific approvals, or adding property to, removing property from, or otherwise substantively modifying the City Council-Declared Surplus Property List. Any administrative modifications would be published immediately on the City’s website and reported to the City Council in connection with the next item related to any REAMP issue.

Additionally, staff proposes new procedures related to surplus property administration in order to incorporate evolving requirements of the California Surplus Land Act and establish a more comprehensive framework for evaluating, designating, and disposing of Surplus and ExemptSurplus properties. These policy updates will help ensure that future real estate transactions are administered in a consistent, transparent, and strategically aligned manner while providing clear guidance for staff, decision-makers, and the public.

As noted above, a significant component of the REAMP involves compliance with California's Surplus Land Act (Government Code Sections 54220 et seq.). The Act establishes specific procedures that local agencies must follow when declaring property surplus and disposing of publicly owned land. The current version of City Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City Owned Property,” indicates that, “All unused and marginally used City-owned property will be reviewed bi-annually to determine public facility or service needs and General Plan Element support needs.” Staff proposes to maintain this periodic review, which provides for City Council direction on the REAMP every two years, to ensure that City Council-direction on the City’s real estate portfolio remains current.

As part of the REAMP, staff has also developed the REAMP Dashboard utilizing GIS technology.

The dashboard is intended to serve as the public-facing component of the program and provide relevant information regarding City-owned real estate assets. The dashboard provides additional property data, lease information, revenue analyses, opportunity site evaluations, asset classifications, and supporting documentation.

Considerations Identified by Staff:

As the Real Estate Asset Management Program (REAMP) transitions from development to implementation, staff has identified several ongoing considerations that will support the program's long-term success. Throughout the development process, staff carefully considered comments and recommendations received from the City Council, members of the public, and City staff, and incorporated those recommendations into the final framework whenever feasible and consistent with the program's objectives. As a result, the REAMP has been refined to better reflect the City's operational needs, policy priorities, and community values.

As a conceptual example, the City-owned property located behind Steed Park, which is currently utilized for construction storage, is recommended to be evaluated with a focus on wildfire prevention, governmental and private agricultural uses, education, community outreach, public event and demonstration space, and similar facilities. This focus would provide staff direction to investigate the use of this area as a potential location for a future wildfire resilience campus, or similar use. Such a facility could include an expanded goat grazing and vegetation-management 69 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 10
operation to support vegetation management throughout the City, emergency and fuel-reduction related equipment and material storage, public education space focused on wildfire preparedness and defensible space practices, demonstration gardens, composting facilities for vegetation management byproducts, and a helicopter landing area (Helipad), and related facilities, to support emergency response operations. This example demonstrates how REAMP can assist, identify, and evaluate long-term opportunities for municipal properties while ensuring that future projects remain subject to separate City Council review, environmental analysis, funding availability, and all applicable regulatory approvals.

Looking forward, staff will continue to periodically review property classifications to ensure they remain aligned with changing municipal needs and Council priorities. Staff will evaluate opportunities for appropriate revenue generation through leases, partnerships, and other strategic uses of City-owned property, and assess under-utilized assets for potential public benefit or future municipal objectives. This program also allows staff to integrate the REAMP into future Capital Improvement Program planning and other long-range initiatives and ensure continued compliance with the Surplus Land Act and other applicable laws and regulations. Staff will maintain the GIS dashboard and real property inventory as accurate, transparent, and reliable resources for the City Council, staff, and the public. Staff believes these ongoing efforts will help ensure the City's real estate portfolio continues to be managed strategically, responsibly, and in a manner that advances the City's long-term vision and policy objectives.

Council Options:
 Adopt Resolution 26-135, which will approve and implement the Real Estate Asset Management Program, approve the associated program policies, establish Attachment 1, Exhibit A as the City Council-Declared Surplus Property List, and authorize the City Manager to approve future non-substantive administrative modifications consistent with City Counciladopted policies and the limitations contained in the Resolution.  Adopt Resolution 26-135 with modifications identified by the City Council  Do not adopt the Resolution 26-135 and provide alternative direction to staff.

Environmental Review/Analysis:

The proposed action is not a “project” pursuant to Section 15378 of the California Environmental Quality Act (CEQA) Guidelines because it involves organizational, administrative, and governmental planning activities that will not result in a direct or indirect physical change in the environment.

Establishment of the City Council-Declared Surplus Property List identifies the properties that will be administered as surplus under applicable law but does not approve or commit the City to any sale, lease, exchange, development, physical improvement, or other disposition. Any future property-specific transaction or development proposal will be evaluated separately for compliance with CEQA before approval, as required by law.

Any future acquisition, disposition, development, redevelopment, or entitlement action associated with individual properties will be reviewed separately for CEQA compliance, as required by law. 70 Meeting Date: August 18, 2026 Agenda Item: 10A.

CITY OF SAN CLEMENTE 11
Fiscal Impact:

There is no immediate fiscal impact associated with the action. No new appropriation is requested as part of this action. Initial administration of the REAMP and maintenance of the GIS Dashboard will be performed using existing staff resources and approved departmental budgets. Future consultant services, appraisals, environmental investigations, title work, brokerage services, capital improvements, or other costs associated with individual property transactions will be evaluated and authorized through the applicable budget, purchasing, or City Council approval process.

Establishment of the City Council-Declared Surplus Property List does not itself generate revenue or authorize expenditures. Any future transaction costs, proceeds, brokerage expenses, legal expenses, environmental-review costs, or other fiscal impacts associated with disposition of a listed property will be evaluated and presented as part of the applicable property-specific action.

Potential Action(s):

If the City Council concurs with the contents of the staff report, the appropriate action would be to adopt Resolution 26-135 which will:
..recommendation

1. Adopt the Real Estate Asset Management Program (REAMP) as the City’s comprehensive framework for the inventory, classification, evaluation, and strategic management of City real property assets;

2. Approve updated City Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City-Owned Property”;

3. Approve new City Policy 901-2, “Property Acquisition Policies and Procedures”;

7. Authorize implementation and public use of the REAMP GIS Dashboard;

CITY OF SAN CLEMENTE 12
and provided that such modifications are published on the City’s website and reported back to the City Council in connection with the next REAMP-related item; and

1. Draft Resolution No. 26-135
Exhibit A – City Council-Declared Surplus Property List

2. Draft Real Estate Asset Management Program (REAMP)
Exhibit A - City-Owned Property Inventory
Exhibit B - City-Owned Wireless Facility Inventory

3. Proposed Updated Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City Owned Property”

4. Current Version of Policy 901-1

5. Proposed Policy 901-2, “Property Acquisition Policies and Procedures”

6. Meeting Minutes from June 16, 2026 City Council Meeting Notification:

Interested members of the public, via email
72 Attachment 1
RESOLUTION NO. 26-135

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA,

ADOPTING THE REAL ESTATE ASSET

MANAGEMENT PROGRAM (REAMP),
APPROVING UPDATED CITY POLICY 901-1 AND
ADOPTING CITY POLICY 901-2, APPROVING THE

CITYWIDE REAL PROPERTY INVENTORY AND

ASSET CLASSIFICATIONS, ESTABLISHING THE

CITY'S OFFICIAL CITY COUNCIL-DECLARED

SURPLUS PROPERTY LIST, AUTHORIZING

ADMINISTRATION OF THE PROGRAM AND

NON-SUBSTANTIVE ADMINISTRATIVE

MODIFICATIONS, AND FINDING THE ACTION

NOT SUBJECT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of San Clemente owns and manages a diverse portfolio of real property utilized for governmental, recreational, environmental, public safety, infrastructure, housing, utility, and other municipal purposes; and WHEREAS, the City Council recognizes the importance of managing municipal real property in a strategic, transparent, fiscally responsible, and consistent manner that supports the City's long-term goals and public interests; and WHEREAS, historically, City-owned real property has been managed by individual departments based upon operational needs without a centralized inventory or standardized asset management framework; and
WHEREAS, the Real Estate Asset Management Program (REAMP) establishes a comprehensive framework for inventorying, classifying, evaluating, acquiring, leasing, preserving, managing, and disposing of City-owned real property while improving transparency, accountability, regulatory compliance, and long-range planning, all in compliance with the Surplus Lands Act (SLA); and
WHEREAS, on June 16, 2026, the City Council received an introductory presentation of the Real Estate Asset Management Program and directed staff to continue development of the program and return with final implementation recommendations; and
WHEREAS, since that time, staff has completed a comprehensive inventory of City-owned real property, refined the proposed asset classification framework, developed supporting policies and administrative procedures, expanded the Geographic Information System (GIS) dashboard, and incorporated comments received from City Council 73 Resolution No. 26-135 Page 2
Members, City staff, and members of the public whenever feasible and consistent with the objectives of the program; and
WHEREAS, updated City Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City-Owned Property,” replaces the City’s 1994 policy with a modernized framework for portfolio review, asset classification, regulatory compliance, valuation, marketing, negotiation, leasing, sale, exchange, closing, and postclosing administration; and WHEREAS, new City Policy 901-2, “Property Acquisition Policies and Procedures,” establishes requirements for public-purpose findings, preliminary review, due diligence, fiscal and lifecycle cost analysis, risk allocation, long-term stewardship, and City Council consideration of proposed real property acquisitions; and WHEREAS, the SLA, specifically Government Code section 54221, subdivision (b)(1), provides that a local agency’s governing body may declare multiple parcels surplus land by formal action at a regular public meeting, supported by written findings that the land is not necessary for the agency’s use; and
WHEREAS, the City Council has reviewed the real properties identified in Exhibit A to this Resolution, which are each owned in fee simple by the City to determine whether they are necessary for the City’s use, including present or foreseeable municipal operations and should be maintained as the only properties currently declared surplus on the City’s official City Council-declared surplus property list; and WHEREAS, adoption of the Real Estate Asset Management Program and related policies establishes a comprehensive governance framework that will improve municipal asset management while preserving the City Council's authority over legislative policy decisions and property-specific actions; and
WHEREAS, except for the surplus land declarations expressly made by this Resolution, adoption of the Real Estate Asset Management Program does not authorize the acquisition, sale, lease, exchange, development, redevelopment, entitlement, expenditure, physical improvement, or change in use of any individual property, all of which shall remain subject to applicable City policies, State law, environmental review, and separate approval by the appropriate City authority.

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

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

SECTION 2. CEQA. Based on a review of the record as whole, the City Council finds and determines that this action is not a project under the California Environmental Quality Act pursuant to CEQA Guidelines section 15378, subdivision (b)(5), because it 74 Resolution No. 26-135 Page 3
consists of organizational, administrative, and governmental planning activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment. Any future acquisition, disposition, lease, exchange, development, redevelopment, entitlement, or other property-specific action shall be reviewed separately for CEQA compliance, as required by law.

SECTION 3. The City Council hereby adopts as the City's comprehensive framework for the inventory, classification, evaluation, and strategic management of Cityowned real property, the Real Estate Asset Management Program (REAMP), including its exhibits, as those documents were presented as Attachment 2, with Exhibits A and B, to the City Council Agenda Report, dated August 18, 2026, entitled “Consideration of a Resolution Adopting the Real Estate Asset Management Program (REAMP), Approving the Associated Program Policies and Procedures, Establishing the City Council-Declared Surplus Property List, Authorizing the City Manager to Approve Future Administrative Modifications Consistent with the Program, and Finding the Action Not Subject to the California Environmental Quality Act”.

SECTION 4. The City Council hereby approves updated City Policy 901-1, “Property Management Policies and Procedures for Lease and Sale of City-Owned Property,” which supersedes the prior version of Policy 901-1, and adopts City Policy 901- 2, “Property Acquisition Policies and Procedures,” as those documents were presented as Attachments 3 and 5, respectively, to the City Council Agenda Report, dated August 18, 2026, entitled “Consideration of a Resolution Adopting the Real Estate Asset Management Program (REAMP), Approving the Associated Program Policies and Procedures, Establishing the City Council-Declared Surplus Property List, Authorizing the City Manager to Approve Future Administrative Modifications Consistent with the Program, and Finding the Action Not Subject to the California Environmental Quality Act”.

SECTION 5. The City Council hereby approves the initial Citywide Real Property Inventory and Asset Classification Framework, including the Opportunity Site directives, as presented in the REAMP document approved in Section 3. Except as provided in Section 3 for surplus properties, the adopted classifications and directives are intended to guide future planning and management decisions and shall not, by themselves, authorize the acquisition, disposition, lease, exchange, development, redevelopment, entitlement, expenditure, physical improvement, or change in use of any City-owned property.

SECTION 6. By adoption of this Resolution at a regular public meeting, the City Council hereby establishes the City’s official City Council-declared surplus property list set forth in Exhibit A to this Resolution. For each real property listed, the City Council hereby finds that the City owns the property in fee simple, the property is no longer necessary for the City’s use, and the property is therefore declared surplus land pursuant to Government Code section 54221, subdivision (b)(1). To the extent a listed property was previously declared surplus, this Resolution confirms and consolidates that declaration into the City’s current list and this does not constitute a new declaration as to those properties. Staff shall administer each listed property in accordance with all 75 Resolution No. 26-135 Page 4
applicable requirements of the Surplus Land Act, taking into account any procedures previously completed. The list may be amended only by subsequent formal action of the City Council at a regular public meeting, supported by written findings required by applicable law. No other classification in the REAMP constitutes a declaration of surplus land or exempt surplus land.

SECTION 7. The City Council authorizes implementation and ongoing maintenance of the REAMP Geographic Information System (GIS) Dashboard as the public-facing informational component of the City’s municipal real property inventory.

SECTION 8. The City Manager, or designee, is hereby authorized and directed to administer and implement the Real Estate Asset Management Program (REAMP) and to make non-substantive administrative modifications necessary to maintain the program in an accurate, effective, and current manner. Permitted administrative modifications include correcting typographical, clerical, mapping, and data-entry errors; updating hyperlinks and statutory references; updating ownership, lease, and transaction information following a separately City Council-authorized action; updating GIS Dashboard data and supporting documentation; and revising forms, administrative procedures, and departmental assignments that do not alter substantive policy. Such modifications shall be published on the City’s website as soon as practicable and reported to the City Council in connection with the next REAMP-related item or upon bi-annual review, whichever is earlier.

SECTION 9. Nothing in this Resolution shall be construed to authorize the City Manager, or designee, to amend City Council-adopted policies, change City Councilapproved asset classifications or Opportunity Site directives, add or remove property from the official City Council-declared surplus property list, approve the acquisition or disposition of real property, declare property surplus or exempt surplus, authorize development, redevelopment, entitlement, or changes in land use, or take any action otherwise requiring City Council approval under applicable law, the San Clemente Municipal Code, or City policy. Any such policy amendment, classification change, surplus or exempt-surplus declaration, or property-specific action shall be presented to the City Council for consideration.

SECTION 10. Staff shall administer and periodically update the Real Estate Asset Management Program, maintain the Citywide Real Property Inventory and GIS Dashboard, conduct a portfolio review in conjunction with the City’s biennial budget process, and return to the City Council with recommended policy amendments, asset reclassifications, amendments to the official City Council-declared surplus property list, significant program updates, or property-specific actions as appropriate and shall comply with the SLA as applicable.

SECTION 11. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. [Continued on next page.]
76 Resolution No. 26-135 Page 5
PASSED 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
77 Resolution No. 26-135 Page 6

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-135 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
78 Resolution No. 26-135 Page 7

EXHIBIT A

CITY COUNCIL-DECLARED SURPLUS PROPERTY LIST
Pursuant to Section 4 of Resolution No. 26-135, the City Council hereby declares the following City-owned real property to be surplus land under Government Code section 54221, subdivision (b)(1) and that the following is a complete list of all City-owned surplus land:

1. Assessor’s Parcel Number 690-012-01; approximately 2.90 acres; 100 Avenida Presidio (Old City Hall).

2. Assessor’s Parcel Number 690-012-02; approximately 1.68 acres; 100 Avenida Presidio (Old City Hall).

For each property listed above, the City Council finds that the City owns the property in fee simple and that the property is no longer necessary for the City’s use. For each property previously declared surplus by prior City Council action, the above constitutes an affirmation of the previous declaration, not a new declaration. Previous actions taken in compliance with the Surplus Lands Act procedures are affirmed and any process shall continue as appropriate where it left off. Nothing herein is intended in any way to restart any Surplus Lands Act process.
79 1 | P a g e
Real Estate Asset Management Program
(“REAMP”)
Administrative Purview:

Department: Community Development Department - Administration Staff: Adam Atamian, Community Development Director
Andy Flores, Management Analyst II
Version: 1 | Dated: August 18, 2026 | Draft
Attachment 2
80 2 | P a g e
Contents
Executive Summary and Introduction ........................................................................................................................3 Definitions .................................................................................................................................................................. 4 Policies and Regulatory Framework .......................................................................................................................... 6 • Applicable City Policies ............................................................................................................................... 6 • Applicable State Laws and Regulations ...................................................................................................... 6 • Entitlement and Development Standards .................................................................................................. 6 • Lease Administration and Agreement Structure ........................................................................................ 7 Real Estate Portfolio .................................................................................................................................................. 8 • Historic Lease Revenue Analysis ................................................................................................................ 8 • Consolidated Asset Status Framework ...................................................................................................... 9 • REAMP Asset Status Legend ..................................................................................................................... 10 • Opportunity Sites ...................................................................................................................................... 12 Wireless Facility Asset Management ....................................................................................................................... 14 • Telecommunications Leasing Program ......................................................................................................14 • Wireless Facility Inventory ........................................................................................................................ 14 REAMP GIS Dashboard ............................................................................................................................................. 14 • Dashboard Overview ................................................................................................................................. 14 • Asset Inventory Integration ....................................................................................................................... 14 • Public Transparency and Accessibility ....................................................................................................... 14 Exhibit A – City-Owned Property Inventory ........................................................................................................16-25 Exhibit B – City-Owned Wireless Facility Inventory ................................................................................................ 26 81 3 | P a g e
Executive Summary and Introduction
Primary Objective
Effectively administer a comprehensive Real Estate Asset Management Program (“REAMP”) that accurately identifies, catalogs, and manages all city-owned real property—including buildings, land, leased spaces, and other real estate holdings. The program will establish clear records of ownership, usage, lease terms, and availability, with a strong emphasis on transparency and public accessibility.

Intent and Goals
The purpose of this program is to establish a comprehensive, long-term strategy for managing the City’s real estate assets through an efficient and transparent model of asset management. This approach aims to enhance the strategic use of City-owned real property, improve service delivery, ensure compliance with the Surplus Land Act and strengthen the City’s financial position. A user-friendly, openly accessible REAMP GIS Dashboard will be available to support these efforts. Designed for residents, City officials, and stakeholders, the platform will promote informed decision-making, accountability, and the effective use of public assets.

In addition to this platform, the following goals are key to the success of the program:
 Ensure the most effective and accountable use of taxpayer funds in managing City-owned real estate.  Create a strategic plan that leverages City real property assets to support cost-effective economic growth.  Implement a data-driven real estate decision-making framework that aligns with the City's Long-Term Financial Plan (“LTFP”).
 Lower operational expenses through proactive and efficient asset management practices.  Increase revenue by optimizing the acquisition, sale, shared use, and overall management of City real property.
 Improve the delivery of City services by making the best use of existing facilities, including opportunities for shared use and public-private partnerships.
 Comply with the Surplus Lands Act and identify any potential affordable housing sites.

By achieving these objectives, the City will enhance the comprehensive management of its real property assets and strengthen its overall financial position.

Compliance
The program includes clearly defined steps and procedures to implement all key elements effectively. These steps will be guided by applicable policies, rules, regulations, and laws that govern execution and ensure compliance.

While additional legal requirements may arise depending on specific circumstances, the policies and laws outlined below will serve as the primary framework for program implementation and compliance. Modifications to applicable laws, rules, regulations, or related policies may necessitate changes to the processes and procedures governing the administration of this program. In such instances, this document will be revised accordingly, and City staff will notify all relevant parties as appropriate.
82 4 | P a g e
Definitions
Acquisition: The purchase, dedication, or acceptance of real property by the City through any lawful means for public use, municipal operation, or strategic purpose.

Asset Inventory: A centralized and continuously updated record of all City owned real estate assets, including location, size, use, ownership history, valuation, encumbrances, and lease information.

City Owned Property: All real property held in fee by the City of San Clemente, whether used for municipal operations, community services, leased for private use, or reserved for future development or public purpose.

Core / Strategic Asset: Real property that is essential to the delivery of municipal services, governmental operations, public safety, utilities, transportation infrastructure, parks, recreation, or other critical public functions. These assets are retained to support the City's mission and are generally not considered for disposition except under extraordinary circumstances.

Disposition of Surplus Land: The process of transferring, selling, leasing, exchanging, or otherwise conveying Cityowned real property that has been designated as surplus by the City Council and disposed of in accordance with the California Surplus Land Act and Government Code §54221(d), as amended.

Encumbered Property: Property subject to legal or financial obligations such as leases, easements, deed restrictions, or bond covenants that may limit its disposition or reuse.

Entitlement: The formal process of securing the necessary land use approvals, including zoning, permits, and environmental review, to authorize a particular use or development of City property.

Exempt Surplus Property/Exempt Surplus Asset: Property owned by the City that meets the criteria under Government Code §54221(f) and has been declared as “exempt surplus land” by formal City Council action in a regular City Council meeting and supported by written findings and is therefore exempt from the standard disposition of surplus land and notice requirements of the Surplus Lands Act. Examples include property transferred to support affordable housing, public right of way, agency use, or properties dedicated for agency exchange, development, or continued public use.

FMV (Fair Market Value): The estimated price that a property would sell for on the open market between a willing buyer and a willing seller, each having reasonable knowledge of relevant facts and neither being under duress.

Future Development Asset: A property acquired or retained to support anticipated future municipal objectives, including public facilities, infrastructure improvements, affordable housing, economic development initiatives, parks, public parking, civic uses, or other strategic community investments. These assets may remain undeveloped or underutilized until a future need is identified and funded.

GIS (Geographic Information System): A digital mapping and data platform used to integrate spatial and property information to visualize, analyze, and manage City owned real estate assets.

HCD (California Department of Housing and Community Development): The State agency responsible for administering and enforcing provisions of the Surplus Lands Act and related housing and land use regulations. 83 5 | P a g e
Joint Use Property: City owned real property that serves both municipal and non-municipal uses through shared occupancy or cooperative agreements with other public agencies, nonprofit organizations, or private partners (e.g., OCFA Helipad at SW corner of Vista Hermosa/La Pata).

LTFP (Long Term Financial Plan): The City’s strategic financial plan guiding fiscal sustainability, capital investment, and long-range budgeting objectives, with which REAMP aligns its property related strategies.

Open Space: Land or water areas owned or managed by the City that are designated in the General Plan for recreation, resource preservation, or visual relief. Open space includes beaches, parks, trails, canyons, golf courses, and natural areas preserved for public use, environmental protection, or scenic value.

Open Space Asset: Real property preserved for environmental, recreational, scenic, conservation, habitat protection, watershed management, wildfire mitigation, or public access purposes. These assets provide ecological and community benefits and are generally intended for long-term preservation rather than revenue generation or development.

Operational Property: Real estate actively used by the City for municipal functions, including administrative offices, public safety facilities, parks, and infrastructure support sites.

Public Private Partnership (P3): A cooperative arrangement between the City and one or more private entities to share resources, risks, and rewards in the development, operation, or management of public real estate assets or facilities.

Redevelopment Agency/Successor Agency Property: Assets formerly owned by the City’s Redevelopment Agency and now administered under state mandated Successor Agency obligations, subject to oversight board and state approval requirements. (Note: The City of San Clemente is no longer a Successor Agency to the Redevelopment Agency as dissolution was approved via City Council action on April 1, 2025. Additional information on the dissolution can be found on the Agenda Report and Resolution located here.) SCMC (San Clemente Municipal Code): The codified body of ordinances and regulations adopted by the City of San Clemente governing municipal operations, including planning, zoning, real property disposition, and financial management.

SLA (Surplus Lands Act): The State law (Government Code §§54220 et seq.) establishing procedures for identifying, noticing, and disposing of surplus public property, ensuring opportunities for affordable housing and community development.

Surplus Asset: Real property that has been declared as “surplus land” by formal City Council action in a regular City Council meeting because it is no longer necessary for the City's use based on written findings, including present or foreseeable operational, strategic, or public service needs. Surplus Assets are subject to the requirements of the California Surplus Land Act and must undergo the applicable noticing, offering, and disposition of surplus land procedures prior to sale or transfer.

Temporary Holding Asset: Real property acquired through dedication, foreclosure, settlement, exchange, donation, tax default, or other means where a long-term ownership strategy has not yet been established. These assets are held temporarily pending evaluation, classification, disposition, or integration into the City's broader real estate portfolio.
84 6 | P a g e
Under-Utilized: Real property that is currently generating limited public benefit, operational value, or economic return relative to its location, size, zoning, market conditions, or development potential. These assets are periodically evaluated for redevelopment, repurposing, lease opportunities, partnerships, or reclassification to ensure alignment with City goals and highest-and-best-use principles.

Policies
All property transactions conducted under the REAMP shall comply with all applicable provisions of the California Government Code, including but not limited to the Surplus Lands Act (Gov. Code §§54220 et seq.), as well as any other relevant federal, state, or local laws, regulations, and City policies adopted under the SCMC or future amendments thereof.

Links to Applicable City of San Clemente Policies:
 Purchasing Policies and Procedures - Financial Services – 201-2-1  Property Management Policies and Procedures for Lease and Sale of City Owned Property – Real Property Management – Policy 901-1
 Property Acquisition Policies and Procedures – Real Property Management – 901-2 Link to Applicable HCD Policies:
 Surplus Land Act Guidelines (2024)
Link to Applicable California Government Code Provisions:
 §§54220–54234 (surplus property)
Entitlement and Development Standards
All City-owned properties managed under the REAMP shall be reviewed, entitled, and administered in accordance with the City of San Clemente Centennial General Plan, and applicable provisions of the SCMC, including but not limited to, Title 12 (Streets, Sidewalks, and Public Spaces), Title 15 (Building and Construction), Title 16 (Subdivisions), Title 17 (Zoning), and other relevant planning and development regulations.

The entitlement and departmental framework ensure that all real estate activities, whether acquisition, disposition, lease, or redevelopment, are consistent with adopted City policies and long-term land use objectives.

Key Standards and Practices:
 General Plan Consistency – All property actions shall align with the City’s adopted General Plan, ensuring conformity with its land use, housing, circulation, and open space elements.  Zoning Compliance – the REAMP shall ensure that all properties and proposed uses conform to applicable zoning designations, specific plans, overlay zones, and development standards, or pursue amendments through the established public process.
 Interdepartmental Coordination – The program shall be overseen and managed by the Community Development Department, and include close coordination with the City Manager, Finance and Administrative Services, Public Works, Public Safety, and Beaches, Parks, and Recreation Departments, and other public agencies at the regional and state level, to review entitlement requirements, evaluate zoning constraints, and identify potential reuse or redevelopment opportunities. 85 7 | P a g e
 Entitlement Review Process – Any proposed change in land use, density, or intensity on City-owned property shall follow applicable procedures for zoning amendments, use permits, variances, or environmental review pursuant to CEQA and local noticing requirements.  Transparency and Public Engagement – REAMP shall promote transparency in all entitlement actions through public hearings, published notices, and accessible documentation.  Integration with Long-Term Planning – REAMP shall provide data, mapping, and inventory updates that support future updates to the General Plan, Housing Element, and Capital Improvement Program, ensuring that real estate decisions align with the City’s strategic planning priorities, specifically those mentioned in the City’s LTFP.

All property transactions and entitlement actions under REAMP shall comply with applicable provisions of the California Government Code, including but not limited to the Surplus Lands Act (Gov. Code §§54220 et seq.), as well as any other relevant federal, state, or local laws, regulations, and City policies adopted under the San Clemente Municipal Code or subsequent amendments.

Lease Administration and Agreement Structure
Lease agreements administered through the REAMP vary based on the type of asset, intended use, and operational objectives of the City. While no single agreement structure applies to all City-owned real estate assets, each lease is developed to protect the City's interests, ensure compliance with applicable laws and policies, and maximize public benefit.

For City-owned commercial buildings, the City's recent practice has been to procure professional real estate brokerage services through a competitive Request for Proposals (RFP) process in accordance with the City's Purchasing Policy. Upon award, the City enters into a Professional Consulting Services Agreement with the selected brokerage firm. Throughout the marketing, negotiation, and leasing process, City staff remain actively involved and provide oversight to ensure the transaction aligns with City policies, operational needs, and strategic objectives.

While the broker provides specialized real estate expertise, market analysis, tenant outreach, and negotiation support, City staff participate in evaluating proposals, reviewing lease terms, coordinating with legal counsel, and making recommendations to City management and the City Council, as applicable. The broker then assists with preparing lease documents utilizing the most current version of the “Standard Industrial/Commercial Single-Tenant Lease – Gross” form.

A similar process is utilized for vacant commercial land assets. Following broker procurement, lease agreements are generally prepared using the “Standard Industrial/Commercial Land Lease – Gross” form, with terms tailored to the specific property and proposed use. In some instances, lease negotiations and lease agreement preparation are facilitated by City staff, when that process is deemed more appropriate for the specific land lease situation. For both commercial buildings and land assets, customary real estate practices are employed to establish Fair Market Value (FMV), evaluate market demand, and ensure the asset is utilized in a manner that serves the City's best interests.

Commercial leases are typically structured as triple-net (NNN) agreements, whereby the tenant is responsible for property taxes, insurance, maintenance, utilities, and other operating expenses in addition to the base rental payment. This structure minimizes ongoing costs to the City while ensuring appropriate stewardship of public assets.

Other asset types, such as concession agreements, are structured using City-approved templates and tailored to the specific nature of the operation and public asset involved. Similar to the City's commercial leases, concession agreements are generally structured as triple-net arrangements, whereby the operator is responsible for applicable 86 8 | P a g e
operating expenses, maintenance obligations, utilities, insurance, and other costs associated with the use of the property. Compensation structures may vary and often include a combination of fixed base rent and percentage rent derived from gross sales, allowing the City to participate in the success of the business while ensuring an appropriate return on public assets. These agreements also establish operational standards, maintenance requirements, reporting obligations, and performance expectations designed to protect the City's interests and provide economic and community benefits.

Telecommunications facilities represent a specialized category of City lease agreements. On February 17, 2026, the City Council adopted a comprehensive update to the City's telecommunications leasing program and fee structure.

This action modernized an approach that had remained largely unchanged for more than two decades and established a standardized, tiered leasing framework for wireless facilities located on City-owned property. The updated program streamlines negotiations, creates greater consistency among agreements, improves administrative efficiency, and aligns lease rates with current market conditions. The City Council action also authorized updated lease templates and fee schedules designed to ensure fair compensation to the City while supporting continued deployment of telecommunications infrastructure. Additionally, this City Council action provided authorization to the City Manager to execute lease agreements when they are based on a City Councilapproved lease template and rate schedule.

Real Estate Portfolio
The City of San Clemente owns and manages a diverse portfolio of real estate assets, including civic buildings, community centers, fire and lifeguard facilities, parklands, beaches, parking lots, service yards, and leased commercial properties. Collectively, these holdings represent one of the City’s most valuable resources, both financially and in terms of public benefit. Additionally, the City owns various properties and structures providing wireless facilities. These assets are described within the “Wireless Sites Facilities” Section of the REAMP.

While smaller in scale than major metropolitan portfolios, San Clemente’s assets are integral to delivering highquality services to residents, supporting community recreation and cultural life, and enabling economic activity.

Figure 1, below, provides a historic trend analysis for the City’s revenue-generating real property leases, which include land/building leases, but excludes wireless facility leases. Like many cities, San Clemente faces rising costs related to real estate management, such as those for maintenance, utilities, and depreciation—costs that directly affect the City’s General Fund and long-term financial sustainability.

FIGURE 1 – HISTORIC LEASE REVENUES
87 9 | P a g e
Historically, the City has managed its properties through individual departments and staff assignments. However, the lack of a unified inventory and dedicated asset management framework has limited the City’s ability to maximize the potential of its real estate. Properties may be underutilized, land may not be strategically evaluated, and opportunities for joint-use or revenue generation can be overlooked.

Through the REAMP, San Clemente will transition from a reactive, department-based approach to a coordinated, citywide strategy that strengthens financial performance, optimizes public facilities, builds community trust through transparency and accessibility and ensures compliance with applicable laws.

During the biennial REAMP assessment, the City Council establishes the "Status" of all municipal property to ensure the City’s real estate portfolio remains aligned with current operational and policy goals.

Consolidated Asset Status Framework
The following asset status classifications provide a standardized framework for evaluating and managing City-owned real property. These classifications assist the City in aligning property management decisions with operational needs, financial objectives, community priorities, and long-term strategic planning goals.  Core / Strategic: Essential real estate assets required for City operations, public services, or long-term infrastructure.
 Open Space Asset: Properties acquired for conservation, recreation, habitat preservation, wildfire risk reduction, watershed protection, scenic preservation, or other environmental and public benefit purposes.  Future Development Asset: Properties acquired or retained for anticipated future public facilities, infrastructure improvements, redevelopment opportunities, affordable housing, parks, or other long-term municipal objectives.
 Under-Utilized: Assets retained for future use but currently performing below their highest potential; flagged for further evaluation, repurposing or redevelopment.  Surplus: Real property that has been designated “surplus” under the Surplus Land Act by formal action of the City Council at a regular City Council meeting based on written findings because they are no longer needed for City use. This designation triggers a formal disposal process, requiring the City to first offer the land for affordable housing, parks, or open space in compliance with the Surplus Land Act.  Exempt Surplus: Real property that has been designated “exempt surplus” under the Surplus Land Act by formal action of the City Council at a regular City Council meeting based on written findings because they are no longer needed for City use but qualify for an exemption from standard bidding and notification requirements. This status allows for an expedited sale or transfer, typically used for "remnant" land slivers, transfers to other government agencies, or specific high-priority affordable housing developments.  Temporary Holding Asset: Real property acquired through dedication, settlement, foreclosure, exchange, or other circumstances where a long-term ownership strategy or asset classification has not yet been determined.

To support consistent and transparent management of municipal real estate assets, the City utilizes a series of asset status classifications that reflect each property's role within the overall portfolio. These classifications guide investment decisions, maintenance priorities, redevelopment evaluations, revenue generation opportunities, surplus and exempt surplus land disposition, and acquisition considerations. Additional information regarding the 88 10 | P a g e
purpose, management approach, and operational directives associated with each status category is provided in Figure 2 – REAMP Asset Status Legend, below.

FIGURE 2 - REAMP ASSET STATUS LEGEND
Status Definition Operational Directive
Core / Strategic Essential for municipal operations or
long-term public purposes.

Retain & Invest: Maintain for City services or future
infrastructure. Property that is needed for ongoing agency use is not considered “surplus land” under the California Surplus Land Act. Because it has not been declared surplus, it is not subject to the Act’s notice, negotiation, or affordability requirements. The Surplus Land Act only applies once a
governing body formally declares property as surplus or exempt surplus.

Open Space Asset
Properties held for conservation,
habitat protection, recreation, wildfire
risk reduction, watershed protection,
scenic preservation, governmental
and private agricultural uses, or
similar environmental purposes.

Preserve & Steward: These assets are generally intended to remain in long-term public ownership and should be managed to preserve their natural, recreational, and ecological value.

Operational activities may include habitat restoration, invasive species management, fuel modification, trail maintenance, erosion control, public access improvements, and resource protection measures. Because Open Space Assets frequently provide environmental and community benefits that extend beyond their financial value, evaluation of these properties should prioritize public benefit, conservation objectives, liability exposure, and long-term maintenance obligations rather than revenue generation.

Future Development Asset
Properties held for future public
facilities, parks, infrastructure and
emergency preparedness projects,
redevelopment opportunities, or
other long-term municipal purposes.

Plan & Position: These assets serve as strategic land reserves and may remain undeveloped for extended periods while
future needs, funding sources, partnerships, entitlements, or project priorities are evaluated. During the holding period, these assets may be strategically managed to support fiscal sustainability through leases, public-private partnerships, redevelopment opportunities, or other economic initiatives.

Simultaneously, staff actively monitors market conditions, potential development opportunities, regulatory changes, grant availability, and community needs to ensure the property remains aligned with City objectives.

Under-Utilized Retained by the City but not
performing at its highest and best use.

Review: Property needed for ongoing agency use is not
considered “surplus land” under the California Surplus Land Act and is not subject to its notice or affordability requirements.

Even so, such property may be underutilized, meaning it is not being used to its full operational or community potential. In those cases, the governing council may direct evaluation of more beneficial or efficient uses while the property remains in agency control. These properties may be flagged for potential redevelopment, densification, or repurposing.
89 11 | P a g e
Status Definition Operational Directive
Surplus No longer required for City use;
subject to the Surplus Land Act.

Declaration and Disposition of Surplus Land: Under California’s Surplus Land Act, once land is declared surplus it must first be offered via a Notice of Availability (NOA) to eligible public agencies and affordable housing developers. Affordable
housing proposals generally receive the highest statutory priority in the process. Parks and recreation agencies are included in the required notice process but only take priority in limited cases where the land is already designated or used for park purposes.

Exempt Surplus No longer required, but meets legal
criteria for expedited disposal.

Accelerate: Exempt surplus land is not subject to the California Surplus Land Act’s standard notice, negotiation, or affordability priority requirements, and may be disposed of without first being offered to affordable housing developers or other public agencies. However, the property must first be formally declared surplus by the City Council, and it must meet specific statutory criteria to qualify for an exemption. Without that declaration and qualifying exemption, the standard Surplus Land Act process applies.

Temporary Holding Asset
Properties acquired through
settlement, dedication, foreclosure,
tax proceedings, or other
circumstances where long-term
ownership objectives have not yet
been determined.

Evaluate & Determine: These properties are generally
considered interim holdings and should undergo a formal evaluation to determine the most appropriate long-term
classification and management strategy. Staff shall assess operational needs, market conditions, legal constraints, maintenance obligations, revenue potential, public benefit opportunities, and future municipal requirements. Following evaluation, Temporary Holding Assets should be reclassified under another asset category, as appropriate. The City should seek to minimize prolonged ownership under this classification unless a specific public purpose justifies continued temporary retention.

Summary of Council Action: The biennial designation of "Status" serves as a formal directive. It determines whether an asset receives capital investment, is a municipal or revenue generating asset, undergoes performance review, is considered for development or disposition as surplus or exempt surplus land, and will ultimately enhance revenues and meet community housing mandates.

Attached hereto as Exhibit A is the list of properties compiled by the City for cataloging and reference purposes.

Exhibit A shall serve as the official reference list of the properties identified therein. The subsection below is provided as an excerpted list to highlight the City-owned “Opportunity Sites” contained in Exhibit A that are identified as surplus or exempt-surplus, or, within the next two years, are likely to become an available future development asset, or may be considered for a change in use or status of a core/strategic or under-utilized property. 90 12 | P a g e
FIGURE 3 - OPPORTUNITY SITES SHORT-LIST
Name APN Acreage General Plan
Description
Status Discussion
Boys and Girls Club
Building
057-160-03 1.13 Open Space Public Core/Strategic Currently utilized and provides significant community benefit.

City staff intends to work
cooperatively in partnership
with the Boys and Girls Club to
facilitate potential Future
Development Opportunities to
renovate and expand the
existing building, including
identifying possible future
lease agreement extensions.

North Beach Vacant
Lot
057-192-04 0.43 Mixed Use 1 Future
Development Asset
Potential for conversion to a
Core/Strategic asset providing
additional public recreational
amenities to be determined by
future Council action. From
results of a Council-directed
public survey, the BPR
Commission recommends
developing the lot into a
flexible, structure-free
community space to host
seasonal programming,
fortified by a safety wall
along El Camino Real.

Senior Center 1
Senior Center 2
058-091-33
058-091-34

0.09 0.09
Residential
Medium Density
Core/Strategic Currently utilized and provides
significant community benefit.

City staff will review
proposals, for Council
consideration, to provide
Joint-Use parking lot space
leases/agreements for public
parking purposes during times
outside of Senior Center
hours.

Community Center 058-111-55 1.89 Public Core/Strategic City staff will evaluate, for Council consideration, Future
Development opportunities
for additional public and Joint
Use purposes, as such
opportunities are identified,
such as a parking structure, or
additional leases for publicserving amenities within
existing buildings on site.
91 13 | P a g e
Name APN Acreage General Plan
Description
Status Discussion
Library 058-111-60 0.76 Public Core/Strategic Currently utilized and provides significant community benefit.

City staff will evaluate, for
Council consideration, Future
Development opportunities
for additional public and Joint
Use purposes, as such
opportunities are identified,
such as a parking structure.

Vista Hermosa
Sports Park
678-163-01 80.74 Open Space
Private
Core/Strategic City staff will evaluate, for
Council consideration, Future
Development opportunities
for additional Joint Use
purposes, similar to those
already existing (e.g., Fire
Station, Salty Turf lease, Goat
Grazing lease, OCFA Helipad,
and additional sports fields
and facilities) to maximize
community benefit and longterm asset value.

Old City Hall 1
Old City Hall 2
690-012-01
690-012-02

2.9 1.68
Civic Center Surplus City staff will evaluate, for
Council consideration, Future
Development opportunities
from qualified bidders through
RFP or other marketing
strategies deemed
appropriate. (Note: The City
has completed the Surplus
Land Act Low- and ModerateIncome Housing Notice of
Availability process, thereby
making the property eligible
for disposition to other
parties)
Steed Park 690-552-06 43.43 Open Space
Private
Core/Strategic City staff will evaluate, for
Council consideration, Future
Development opportunities
for additional public and Joint
Use purposes, as such
opportunities are identified, to
increase community benefit
and asset utilization. Focus
shall be placed on uses which
provide public benefit through
wildfire prevention,
governmental and private
agricultural uses, education,
community outreach, public
92 14 | P a g e
Name APN Acreage General Plan
Description
Status Discussion
event and demonstration
space, and similar facilities.

Pico Park Lot
(South)
691-431-11 0.96 Coastal Serving
Recreational
Future
Development Asset
City staff will evaluate, for
Council consideration, Future
Development opportunities
for public and Joint Use
purposes, as such
opportunities are identified, to
increase community benefit
and asset utilization
Vera Cruz Lot 679-152-03 3.31 Open Space
Private
Future
Development Asset
City staff will evaluate, for
Council consideration, Future
Development opportunities
for public, private, or Joint Use
purposes consistent with
applicable Open Space zoning
requirements, as such
opportunities are identified, to
increase community benefit
and asset utilization
Wireless Facility Asset Management
Also attached as Exhibit B is a general inventory of City-owned properties improved with wireless communication facility structures. The exhibit provides an overview of the existing telecommunications assets on City property and serves as a reference for future asset management, lease administration, and revenue generation efforts under the REAMP.

On February 17, 2026, the City Council adopted a comprehensive update to the City's telecommunications leasing framework for City-owned properties improved with wireless communication facilities. The action established a new three-tier lease structure for Macrocell, Minicell, and Microcell facilities, updated the City's telecommunications fee schedule to better align with market conditions and regional agency practices, and amended City policies to authorize the City Manager to execute telecommunications lease agreements that are consistent with the adopted rate schedule and approved terms. These changes streamlined the City's leasing process, improved administrative efficiency, and established a more predictable framework for telecommunications providers seeking to locate facilities on City-owned property.

As REAMP continues to evolve, the wireless facility inventory will assist the City in monitoring these assets, evaluating future leasing opportunities, identifying potential co-location sites, and ensuring that City-owned properties improved with telecommunications infrastructure continues to support both community needs and longterm revenue objectives.

REAMP GIS Dashboard
The REAMP establishes a comprehensive inventory of all City-owned real property assets, including land, buildings, facilities, easements, telecommunications infrastructure, and lease agreements. Utilizing the REAMP GIS Dashboard, staff has consolidated property information into a centralized, map-based platform that provides real93 15 | P a g e
time access to parcel data, asset classifications, ownership information, lease activity, zoning, and other relevant property characteristics. This tool allows staff and decision-makers to visualize the City's real estate portfolio, better understand how assets are currently being utilized, and identify opportunities for enhanced public benefit, operational efficiency, revenue generation, or future development, including affordable housing.

In addition to creating a complete inventory of City-owned assets, REAMP establishes a framework for evaluating and categorizing properties based on their function, strategic importance, development potential, and community value. The GIS Dashboard serves as the foundation for this analysis by providing a dynamic and scalable platform that can be updated as assets are acquired, developed, leased, reclassified, or disposed of over time. Together, the inventory and dashboard improve transparency, support data-driven decision-making, strengthen long-range planning efforts, and help ensure that City-owned properties are managed in a manner consistent with City Council priorities, fiscal sustainability objectives, and community needs, including housing. 94 16 | P a g e
Exhibit A - City Owned Properties
APN Acreage Zoning General Plan Description Status Current Land Use 057-020-46 0.05 P Public Core/Strategic Portion of City Water Reclamation Facility 057-020-47 0.04 OS1 Open Space Public Core/Strategic City PW/Utility Facility 057-020-51 0.04 P Public Core/Strategic Portion of City Water Reclamation Facility 057-052-10 0.62 RL Residential Low Density Open Space
Asset
El Oriente Canyon Lot, between 173 La Cuesta
and 223 El Oriente
057-053-01 0.05 RL Residential Low Density Core/Strategic Strip of public street adjacent to 230 De La Paz 057-053-40 0.52 P Public Core/Strategic City PW/Utility Facility 057-072-27 1.71 P Public Core/Strategic City PW/Utility Facility 057-151-25 2.78 OS1 Open Space Public Core/Strategic Bonito Canyon Park 057-160-02 2.96 OS1 Open Space Public Core/Strategic Bonito Canyon Park 057-160-03 1.13 OS1 Open Space Public Core/Strategic Boys and Girls Club Building, under current lease
057-162-81 2.23 OS1 Open Space Public Core/Strategic Bonito Canyon Park 057-182-63 0.05 HI Heavy Industrial Core/Strategic Vacant Parcel behind 110 Rincon Ct. 057-182-66 0 P Public Core/Strategic Portion of City Water Reclamation Facility 057-182-81 0.04 HI Heavy Industrial Core/Strategic Vacant Parcel behind 116 Rincon Ct. 057-192-04 0.43 MU1 Mixed Use 1
Future
Development
Asset
North Beach Vacant Lot
N/A 0.1 ROW Public Right-Of-Way Core/Strategic North Beach Train Depot Building, under current lease
057-192-10 0.08 P Public Core/Strategic North Beach Parking Lot 057-192-11 0.1 P Public Core/Strategic North Beach Parking Lot 057-192-12 0.09 P Public Core/Strategic North Beach Parking Lot 057-192-13 0.1 P Public Core/Strategic North Beach Parking Lot 057-192-14 0.1 P Public Core/Strategic North Beach Parking Lot 057-192-15 0.09 P Public Core/Strategic North Beach Parking Lot 95 17 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 057-192-16 0.1 P Public Core/Strategic North Beach Parking Lot 057-192-17 0.1 P Public Core/Strategic North Beach Parking Lot 057-192-18 0.11 P Public Core/Strategic North Beach Parking Lot 057-192-19 0.42 P Public Core/Strategic North Beach Parking Lot 057-192-20 1.53 P Public Core/Strategic OHBC - Current Lease to Cease after 9/2026 057-232-10 0.77 P Public Core/Strategic City PW/Utility Facility 058-073-49 0.28 MU3.1 Mixed Use 3.1 Core/Strategic Downtown Parking Lot 058-081-10 0.08 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-081-12 0.08 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-081-13 0.08 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-081-53 0.08 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-082-23 0.09 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-082-24 0.09 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-082-28 0.09 MU3.0 Mixed Use 3.0 Core/Strategic Downtown Parking Lot 058-091-09 0.09 RM Residential Medium Density Core/Strategic Downtown Parking Lot 058-091-10 0.09 RM Residential Medium Density Core/Strategic Downtown Parking Lot 058-091-31 0.09 RM Residential Medium Density Core/Strategic Fire Station 058-091-32 0.09 RM Residential Medium Density Core/Strategic Fire Station 058-091-33 0.09 RM Residential Medium Density Core/Strategic Senior Center 058-091-34 0.09 RM Residential Medium Density Core/Strategic Senior Center 058-091-38 0.14 RM Residential Medium Density Core/Strategic Fire Station 058-091-44 0.05 RM Residential Medium Density Core/Strategic Fire Station 058-104-19 0.19 RM Residential Medium Density Open Space Asset
Portion of Trafalgar Canyon and Right-of-Way
west of 259 Avenida Madrid
058-111-55 1.89 P Public Core/Strategic Community Center - Joint Use Property 058-111-60 0.76 P Public Core/Strategic Library
058-240-02 0.21 OS1 Open Space Public Open Space
Asset Beach area south of Capistrano Shores MHP
96 18 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 058-240-06 0.29 OS1 Open Space Public Open Space
Asset Beach area west of Buena Vista (1107 to 1407)
058-240-07 1.08 OS1 Open Space Public Open Space
Asset Bluff west of Buena Vista (1407 to 1527)
058-240-08 0.52 OS1 Open Space Public Open Space
Asset Bluff west of Buena Vista (1200 to 1511)
058-240-09 0.59 OS1 Open Space Public Open Space
Asset Beach area west of Buena Vista (803 to 1011)
058-240-10 0.24 OS1 Open Space Public Open Space
Asset Beach area west of W. Marquita (259 to 265)
058-240-11 0.68 OS1 Open Space Public Open Space
Asset Beach area west of Linda Lane Park
058-240-12 0.3 OS1 Open Space Public Open Space
Asset Beach area west of Granada (423)
058-240-13 0.41 OS1 Open Space Public Core/Strategic Marine Safety Headquarters 058-240-14 0.22 OS1 Open Space Public Core/Strategic Marine Safety Headquarters 058-240-15 3.95 OS1 Open Space Public Core/Strategic
Beach area containing base of Municipal Pier,
restaurant under lease (Fisherman’s), and
Restrooms
N/A 1.1 ROW Public Right-Of-Way Core/Strategic Municipal Pier, Tower 0, concession stand under current lease
N/A – Railroad R.O.W. 0.75 OS1 Open Space Public Core/Strategic Pier and end-of-pier concession stand N/A – Railroad R.O.W. 0.1 OS1 Open Space Public Core/Strategic Base of Pier concession stand and restrooms 058-240-18 0.11 OS1 Open Space Public Open Space
Asset Beach area south of Capistrano Shores MHP
058-240-19 0.07 OS1 Open Space Public Open Space
Asset Beach area south of Capistrano Shores MHP
058-240-20 0.07 OS1 Open Space Public Open Space
Asset Beach area south of Capistrano Shores MHP
97 19 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 058-240-21 0.64 OS1 Open Space Public Core/Strategic
Beach area west of Ole Hanson Beach Club,
includes North Beach restrooms and City Safety
Hub building
058-240-22 1.63 OS1 Open Space Public Open Space
Asset Beach area west of Buena Vista (1407 to 1527)
058-240-23 0.08 OS1 Open Space Public Open Space
Asset Beach area west of Buena Vista (1407)
058-240-24 0.07 OS1 Open Space Public Open Space
Asset Beach area west of Buena Vista (1013)
058-240-25 0.01 OS1 Open Space Public Open Space
Asset Beach area west of La Paloma (257)
058-240-29 0.45 OS1 Open Space Public Open Space
Asset Bluff west of Buena Vista (803 to 1011)
058-240-30 0.11 OS1 Open Space Public Open Space
Asset Beach area west of Linda Lane Park
058-240-31 0.07 OS1 Open Space Public Open Space
Asset Beach area west of Linda Lane Park
060-010-05 64.68 OSC Open Space Public Core/Strategic Municipal Golf Course 060-010-08 43.56 OSC Open Space Public Core/Strategic Municipal Golf Course 060-010-40 28.2 OSC Open Space Public Core/Strategic Municipal Golf Course 060-083-87 1.36 P Public Core/Strategic City PW/Utility Facility 060-092-41 0.04 MU5 Mixed Use 5 Core/Strategic Freeway Pedestrian Bridge Ramp 060-142-26 0.03 OS1 Open Space Public Core/Strategic Parcel in Calafia Parking lot/building 060-191-15 0.11 OS1 Open Space Public Open Space
Asset Bluff west of De Los Alamos (2022 to 2024)
060-251-02 0.09 P Public Core/Strategic Freeway Pedestrian Bridge Ramp 675-072-12 0.45 P Public Core/Strategic Fire Station
675-223-19 0.01 RL Residential Low Density Core/Strategic City PW/Utility Facility 678-071-15 19.13 OS Open Space Public Core/Strategic Forster Ranch Park 678-161-04 157.48 OS2 Open Space Private Open Space
Asset
Open Space northwest of La Pata and Vista
Hermosa
98 20 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 678-162-01 15.77 OS2 Open Space Private Open Space
Asset
Open Space northeast of La Pata and Vista
Hermosa, SCE Easement
678-163-01 80.74 OS2 Open Space Private Core/Strategic
Vista Hermosa Sports Park - Joint Use Property:

Fire Station, and leases for Salty Turf, Goat
Grazing Pen, OCFA Helipad
678-165-01 28.29 OS1 Open Space Public Open Space
Asset Open Space east of La Pata , SCE Easement
679-021-13 2.5181 RM Residential Medium Density Core/Strategic Further investigation required, portion of condos at VH and Frontera
679-152-03 3.31 OS2 Open Space Private
Future
Development
Asset
Parcel on Camino Vera Cruz
679-161-31 2.95 OS2 Open Space Private Open Space
Asset
Open Space west of Vista Hermosa, south of
the Reserve West
679-171-06 0.28 RL Residential Low Density Core/Strategic City PW/Utility Facility 679-191-49 4.13 OS1 Open Space Public Core/Strategic Marblehead Park 679-242-05 1.89 OS2 Open Space Private Core/Strategic Reservoir Site 680-521-04 1.71 OS2/
RVL
Open Space Private/ Res.

Very Low Core/Strategic Reservoir Site
688-022-01 0.24 OS2 Open Space Private Core/Strategic City PW/Utility Facility 688-031-07 2.47 LI Light Industrial Core/Strategic City Hall 688-071-02 2.84 P Public Core/Strategic City PW/Utility Facility 688-082-01 6.46 OS1 Open Space Public Core/Strategic Rancho San Clemente Park 688-142-35 0.48 LI Light Industrial Core/Strategic 1030 Calle Negocio Commercial Building 690-012-01 2.9 CVC Civic Center Surplus 100 Avenida Presidio - Old City Hall – Notice of Availability (NOA) was completed
690-012-02 1.68 CVC Civic Center Surplus 100 Avenida Presidio - Old City Hall 690-031-32 0.04 RM Residential Medium Density Open Space Asset Vacant Strip west of 301 E. Cordoba
690-085-14 0.07 RL Residential Low Density Open Space
Asset Vacant Strip south of 301 E. Cordoba
99 21 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 690-111-06 0.68 OS1 Open Space Public Open Space
Asset Vacant slope west of Presidio (909 to 915)
690-111-07 1.53 OS1 Open Space Public Open Space
Asset Vacant slope west of Presidio (717 to 907)
690-150-02 0.05 RL Residential Low Density Core/Strategic Part of Ave Acapulco 690-234-07 2.23 OS1 Open Space Public Open Space
Asset Vacant Parcel behind Acapulco (601 to 611)
690-241-01 15.85 OS2 Open Space Private Open Space
Asset Acapulco/Zapata Canyon
690-260-01 0.66 OS1 Open Space Public Open Space
Asset Salvador Canyon
690-260-02 2.62 P Public Core/Strategic Reservoir Site
690-260-03 1.41 P Public Core/Strategic Reservoir Site
690-260-04 5.48 OS1 Open Space Public Open Space
Asset Salvador Canyon
690-260-05 1.86 OS1 Open Space Public Open Space
Asset Slope south of San Pablo at Acapulco
690-260-06 3.04 OS1 Open Space Public Open Space
Asset
Vacant Parcel adjacent to Acapulco (west of
601)
690-260-07 0.96 RL Residential Low Density Core/Strategic Reservoir Site 690-282-08 0.16 RL Residential Low Density Open Space
Asset Strip of land west of 201 Calle Del Juego
690-282-14 3.19 OS1 Open Space Public Core/Strategic Verde Park 690-282-36 0.07 RL Residential Low Density Open Space
Asset
Strip of land west of 235 Calle Empalme and
Verde Park
690-372-03 0.16 OS1 Open Space Public Open Space
Asset
Undeveloped Lot (provides main access to
Acapulco/Zapata Canyon)
690-392-08 1.91 P Public Core/Strategic City PW/Utility Facility 690-412-29 0.01 RL Residential Low Density Core/Strategic Parcel between 113 and 115 E. Lobos Marinos 690-502-16 1.25 P Public Core/Strategic Salvador Reservoir and Tower Site 690-531-10 1.32 OS2 Open Space Private Core/Strategic Via Santa Maria Reservoir 100
22 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 690-552-06 43.43 OS2 Open Space Private Core/Strategic Steed Park 690-661-09 1 HI Heavy Industrial
Future
Development
Asset
Vacant Lot south of CASA, currently under lease
690-661-20 1.38 HI Heavy Industrial Core/Strategic Coastal Animal Services Authority (CASA) 691-094-01 2.14 OS1 Open Space Public Core/Strategic Mira Costa Park 691-130-12 1.55 OS1 Open Space Public Core/Strategic Mira Costa Park 691-211-02 3.85 OS1 Open Space Public Core/Strategic San Gorgonio Park 691-211-04 18.91 OS1 Open Space Public Core/Strategic San Gorgonio Park 691-253-01 0.27 RL Residential Low Density Open Space
Asset Vacant Slope on Via Montecito
691-253-02 0.08 RL Residential Low Density Open Space
Asset Vacant Slope on Via Montecito
691-301-08 0.02 NC1.1 Neighborhood Commercial

1.1 Core/Strategic Portion of commercial center parcel at Vaquero and Cascadita 691-322-01 1.93 OS1 Open Space Public Open Space
Asset Vacant slope on Calle Grande Vista
691-421-01 8.59 OS1 Open Space Public Core/Strategic Jim Johnson Park 691-424-10 0.1 RL Residential Low Density Core/Strategic Portion of residential lot at 149 Via Murcia 691-431-04 0.6 OS1 Open Space Public Core/Strategic Canyon View Park 691-431-11 0.96 CRC Coastal Serving Recreational
Future
Development
Asset
Lot south of Pico Park
691-433-01 17.29 P Public Core/Strategic City Water Reclamation Facility 691-435-44 0.63 OS2 Open Space Private Core/Strategic Vista Del Sol Park 691-435-47 0.67 ROW Public Right-Of-Way Core/Strategic Portion of Entrada Del Sol Street 692-011-01 0.12 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-02 0.14 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-05 0.1 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-06 0.08 OS1 Open Space Public Core/Strategic Linda Lane Park 101
23 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 692-011-07 0.09 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-09 0.09 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-12 0.25 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-13 0.03 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-16 0.16 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-18 0.12 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-19 0.02 OS1 Open Space Public Core/Strategic Linda Lane Park 692-011-21 0.01 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-05 0.09 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-07 0.08 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-08 0.07 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-09 0.09 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-10 0.14 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-11 0.13 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-12 0.13 OS1 Open Space Public Core/Strategic Linda Lane Park N/A 0.05 ROW Railroad Right-Of-Way Core/Strategic Linda Lane Restrooms 692-012-13 0.15 OS1 Open Space Public Core/Strategic Linda Lane Park 692-012-32 0.32 OS1 Open Space Public Core/Strategic Park Semper Fi 692-012-33 0.53 P Public Core/Strategic Lower Pier Bowl Parking Lot 692-012-34 0.38 OS1 Open Space Public Core/Strategic Park Semper Fi 692-012-38 2.39 P Public Core/Strategic Casa Romantica Property, 415 Granada, currently under lease
692-012-39 0.02 P Public Core/Strategic Casa Romantica Property, 415 Granada, currently under lease
692-013-01 0.9 P Public Core/Strategic Upper Pier Bowl Parking Lot 692-014-01 0.51 P Public Core/Strategic Parque Del Mar
692-031-01 0.16 P Public Core/Strategic Parque Del Mar
692-095-19 0.02 OS1 Open Space Public Core/Strategic Linda Lane Park 692-095-22 0.03 OS1 Open Space Public Core/Strategic Linda Lane Park 102
24 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 692-095-23 0.04 OS1 Open Space Public Core/Strategic Linda Lane Park 692-095-33 0.04 OS1 Open Space Public Core/Strategic Linda Lane Park 692-095-34 0.02 OS1 Open Space Public Core/Strategic Linda Lane Park 692-095-42 0.06 RM Residential Medium Density Core/Strategic Linda Lane Park 692-095-46 0.15 OS1 Open Space Public Core/Strategic Linda Lane Park 692-095-47 0 OS1 Open Space Public Core/Strategic Linda Lane Park 692-102-24 0.84 OS2 Open Space Private Open Space
Asset Vacant lot along Avenida De La Estrella
692-111-07 0.07 OS1 Open Space Public Core/Strategic Portion of El Portal Beach Staircase 692-141-01 1.18 OS1 Open Space Public Open Space
Asset Trafalgar Canyon
692-212-15 0.01 RL Residential Low Density Core/Strategic Sliver Property between 141 and 143 Lobos Marinos
692-212-20 1.76 OS1 Open Space Public Open Space
Asset San Antonio Canyon, 100 block
692-252-22 0.25 RL Residential Low Density Core/Strategic Vacant Lot at 200 Trafalgar Lane 692-272-24 0.13 OS1 Open Space Public Open Space
Asset Bluff west of Boca Del Canon (316 to 326)
692-304-05 0.2 OS1 Open Space Public Core/Strategic Leslie Park 692-321-02 1.4 OS1 Open Space Public Open Space
Asset Beach area west of Cristobal (340 to 354)
692-321-03 1.53 OS1 Open Space Public Open Space
Asset Beach area west of Cristobal (329 to 338)
N/A 1.05 ROW Railroad Right-Of-Way Core/Strategic T-Street Restrooms, North and South 692-331-01 3.58 OS1 Open Space Public Open Space
Asset Beach area west of Boca Del Canon
692-332-01 0.15 OS1 Open Space Public Open Space
Asset Bluff west of De Los Alamos (1810 to 1816)
692-341-01 0.2 OS1 Open Space Public Open Space
Asset Bluff west of De Los Alamos (1820 to 1906)
103
25 | P a g e
APN Acreage Zoning General Plan Description Status Current Land Use 692-341-04 0.13 OS1 Open Space Public Open Space
Asset Bluff west of De Los Alamos (2012 to 2022)
692-342-01 1.36 OS1 Open Space Public Open Space
Asset
Beach area west of De Los Alamos (1822 to
1908)
692-391-01 3.1 OS1 Open Space Public Core/Strategic Max Berg Plaza Park 692-393-01 0.04 NC2 Neighborhood Commercial 2 Core/Strategic 1100 North El Camino Real Building, under current lease
701-012-01 5.35 OS1 Open Space Public Core/Strategic Talega Park 701-041-56 0.28 OS1 Open Space Public Open Space
Asset
To be transferred to Talega Maintenance under
proposed TCA Implementation Agreement
701-041-58 0.42 OS2 Open Space Public Open Space
Asset
To be transferred to Talega Maintenance under
proposed TCA Implementation Agreement
701-041-60 0.11 OS3 Open Space Public Open Space
Asset
To be transferred to Talega Maintenance under
proposed TCA Implementation Agreement
701-332-08 9 OS2 Open Space Private Core/Strategic Liberty Park 701-361-02 8.01 OS1 Open Space Public Open Space
Asset Open Space lot north of Calle Canela
701-361-17 14.98 OS1 Open Space Public Open Space
Asset Open Space lot east of La Pata
708-051-17 8.35 OS2 Open Space Private Core/Strategic Tierra Grande Park 104
26 | P a g e
Exhibit B - City Owned Wireless Sites
Lease ID
Lease
Status APN Address Zoning Classification
CSL-203-01 Active 678-163-01 987 Avenida Vista Hermosa Public Open Space CSL-203-02 Active 988-021-80 150 East Magdalena Open Space - Golf Course CSL-203-03 Active 988-009-65 3895 Calle Andalucia Open Space - Water Tower CSL-203-04 Active 4159 1/2 Costero Risco
CSL-203-05 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-06 Active 691-211-04 2916 1/2 Via San Gorgonio Public Open Space CSL-203-07 Active 688-071-02 1001 Calle Cordillera Open Space - ES CSL-203-08 Active 691-211-04 2916 Via San Gorgonio Public Open Space CSL-203-09 Active 057-160-02 1304 Calle Valle Public Open Space CSL-203-10 Active 988-021-80 150 E. Avenida Magdalena Open Space - Golf Course CSL-203-11 Active 690-552-06 241 Avenida La Pata Public Open Space CSL-203-12 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-13 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-14 Active 675-321-03 3895 Calle Andalucia
Public Open Space located within the City of San Juan
Capistrano
CSL-203-15 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-16 Active 2401 1/2 Ave Del Presidente
CSL-203-17 Active
South El Camino Real at West
Avendia Cadiz Public ROW
CSL-203-18 Active
North El Camino Real at Boca De
La Playa Public ROW
CSL-203-19 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-20 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-21 Active 690-502-16 721 Avenida Salvador Public Space CSL-203-22 Active 690-502-16 721 Avenida Salvador Public Space 105

POLICY AND PROCEDURE

1.0 PURPOSE:

The purpose of these policies and procedures is to establish a consistent framework for managing the City's real property portfolio through periodic review, asset classification, and evaluation. The procedures provide guidance for determining the appropriate long-term role of individual properties and, where appropriate, implementing lease, sale, exchange, and other real property transactions in accordance with applicable law and City policy.

This policy does not apply to franchise agreements or other regulatory authorizations for the use of public property that are governed by separate provisions of the San Clemente Municipal Code or other applicable law.

2.0 ORGANIZATION AFFECTED:

All Departments/Divisions.

3.0 REFERENCES:

California Surplus Land Act (Government Code Section 54220 et seq.) City Real Estate Asset Management Program (REAMP)
California Environmental Quality Act (CEQA)

4.0 POLICY:

This policy governs how the City manages its real property interests and conducts real property transactions.

4.1 Portfolio Management
The City shall manage its real property portfolio to support municipal needs, adopted City objectives, and the efficient use of public assets. The Subject: Property Management
Policies and Procedures for Lease and
Sale of City-owned Property
Index: Real Property
Management
Number: 901-1
Effective Date: Prepared By: Community
Development
Supersedes: July 1, 1994 Approved By:

Attachment 3
106
Real Estate Asset Management Program (REAMP) is the City's primary tool for evaluating and managing its real property portfolio.

Staff shall review the City's real property portfolio in conjunction with the City's biennial budget development process. Where the review identifies changes in municipal needs, legal requirements, property conditions, or other factors affecting the City's real property portfolio, staff shall update the REAMP and present any recommended asset classifications or reclassifications to the City Council. The REAMP shall also be updated as needed outside the budget development process as necessary to reflect approved changes, comply with applicable law, or address municipal needs.

4.2 Asset Classification
The City Council shall consider the recommendations of the REAMP and determine the long-term role of City-owned real property within the City's real estate portfolio by assigning an appropriate asset classification.

Classifications supporting surplus land disposition are subject to the requirements of the Surplus Land Act and other applicable law.

4.3 Real Property Transaction Authority
Real property transactions require approval from the authority designated by law, the Municipal Code, or City Council action.

4.4 Transaction Recommendations
Prior to recommending a real property transaction, staff shall evaluate and document its financial, strategic, and operational impacts, aiming for the greatest overall public benefit.

4.5 Negotiation Authority
Real property transactions shall be negotiated by the City Manager or designee, subject to any direction provided by the City Council. Price and terms of proposed real property transactions may be discussed in closed session in compliance with the Ralph M. Brown Act. The City Council may provide direction to the City Manager or designee for further negotiation or study or direct the proposed transaction be returned to open session for approval, disapproval or other action.

4.6 Unsolicited Requests
The City may receive unsolicited requests to purchase, lease, exchange, or otherwise obtain an interest in City-owned property. Staff evaluates any such request against the real property's existing classification and the City's objectives at the time of the request. Receipt of an unsolicited request does not obligate the City to evaluate, negotiate, consider formally or convey an interest in the property. Unsolicited requests for proposed 107
transactions that are inconsistent with the real property's existing classification and the City's objectives at the time of the request may be summarily rejected by staff.

4.7 Administration
Responsibility for administering and implementing this policy and procedure is delegated to the City Manager or designee.

5.0 PROCEDURE:

5.1 Real Estate Portfolio Management
Staff shall periodically prepare updates to the Real Estate Asset Management Program (REAMP) in accordance with the procedures established for administration of the REAMP. The REAMP provides the framework for evaluating City-owned property and developing recommendations regarding the property’s long-term role in meeting municipal needs and City objectives.

5.1.1 Bi-Annual REAMP Portfolio Evaluation
As part of the REAMP, staff shall evaluate City-owned properties to develop recommendations for City Council consideration regarding any proposed asset classifications or reclassifications.

5.1.2 Evaluation Outside the REAMP Cycle
Staff may initiate an evaluation of individual properties outside the regular REAMP cycle when circumstances warrant,
including changes in operational needs, capital improvement planning, development or redevelopment opportunities,
unsolicited purchase or lease requests, intergovernmental opportunities, grant opportunities, or other circumstances affecting a property's long-term role.

Evaluations conducted outside the regular REAMP cycle shall follow the same analysis, documentation, and recommendation process established by the REAMP procedures.

5.2 Recommendation to City Council
Based upon a completed evaluation, the City Manager or designee shall recommend asset classifications or reclassifications to the City Council together with supporting analysis and findings.

The City Council shall consider the recommendation and determine the property's long-term role within the City's real estate portfolio by assigning an appropriate asset classification.
108

5.3 Regulatory Compliance
Following City Council assignment of an asset classification, staff shall complete all applicable statutory and regulatory requirements before submitting the proposed transaction to the appropriate approving authority.

5.3.1 Surplus Land Act – Exempt Property Process
Where the approved asset classification supports a surplus land disposition and qualifies for an exemption under the Surplus Land Act, staff shall complete the required documentation and reporting to the California Department of Housing and
Community Development (HCD). Following satisfaction of the applicable statutory notice requirements and consideration of any response received from HCD, staff may proceed with
transaction development.

5.3.2 Surplus Land Act – Non-Exempt Property Process
Where the approved asset classification supports a surplus land disposition and has been determined to be a non-exempt surplus property, staff shall complete all notices, offer requirements, negotiation periods, and other procedures required by the Surplus Land Act. Upon completion of the applicable statutory requirements, staff may proceed with transaction development and submit the proposed transaction to the appropriate
approving authority.

5.3.3 Environmental Review
Where required by the California Environmental Quality Act (CEQA) or other applicable law, staff shall complete the required environmental review or recommendation for appropriate CEQA determination simultaneously with submitting the proposed transaction for final approval or execution, as applicable.

5.3.4 Grant Requirements
Where City-owned property is subject to state or federal grant requirements, deed restrictions, funding agreements, or other funding conditions, staff shall ensure compliance with all applicable requirements before proceeding with the proposed transaction.

5.3.5 Other Regulatory Approvals
Where other federal, state, regional, or local approvals, permits or authorizations are required, staff shall obtain or satisfy such 109
approvals before submitting the proposed transaction for final approval or execution, as applicable.

5.4 Transaction Process
Following completion of any required regulatory compliance activities, staff shall develop the proposed real property transaction in accordance with this policy, applicable law, and the approved asset classification. Staff shall determine the transaction strategy most appropriate to achieve the City's long-term objectives.

5.4.1 General Transaction Requirements
All real property transactions shall be conducted in accordance with applicable federal, state, and local laws, regulations, and City policies. Staff shall coordinate with affected departments and agencies as necessary to complete the proposed
transaction. The City may utilize qualified real estate professionals or other specialized consultants, as appropriate, to assist with the evaluation, marketing, negotiation, or
implementation of real property transactions.
a. Transaction Development
Staff shall develop a recommended transaction strategy
by evaluating the transaction structure and transaction method that best support the approved asset
classification, considering municipal objectives,
operational needs, legal and regulatory requirements,
financial and risk considerations, long-term public benefit, and other relevant factors.

The recommended transaction strategy shall be consistent with the approved asset classification and the long-term role established by the City Council. In developing a
recommendation, staff shall also consider the long-term operational, financial, and strategic implications of the proposed transaction on the City's real property portfolio.

The selected transaction structure should reflect the
approved asset classification and the manner in which the City’s long-term objectives are best implemented. Lease transactions may be appropriate where continued City
ownership advances municipal objectives while allowing
another party to utilize, improve, or activate the property.

Sale transactions may be appropriate where permanent
110
transfer of ownership best advances the City's long-term objectives and public benefit.
b. Fair Market Value / Fair Market Rent
Unless otherwise authorized by law or approved by the
City Council based on an identified public benefit, real property transactions shall generally be based upon Fair Market Value (FMV) or Fair Market Rent (FMR), as
applicable. The valuation supporting a recommended
transaction must be no more than twelve months old at the time the transaction is presented to the City Council. Staff may obtain an appraisal, broker opinion of value, or other market valuation, as appropriate, to support the
recommended transaction.
c. Standard Forms and Templates
Transaction documents shall utilize City-approved forms or templates when available, unless otherwise authorized by the approving authority.
d. City Council Approval of Final Transaction
The staff report presented to the City Council for a
proposed real property transaction must include:

1. Background — the property, its asset
classification, and the type of
transaction recommended;

2. Reason for the transaction — why this
type of transaction (lease, sale, or
exchange) was chosen over other
options, and what public benefit or City
goal it supports;

3. Financial terms — what the City will
receive, and if it's below Fair Market
Value or Fair Market Rent, the specific
public benefit and basis that justifies the
lower amount;

4. Legal requirements met — confirmation
that the Surplus Land Act, CEQA, and
any other required reviews have been
completed;

5. Staff recommendation.

Unless otherwise authorized by applicable law or by City Council through ordinance, resolution, or adopted policy, transactions involving the conveyance of an interest in 111
City-owned real property shall require City Council
approval.

5.4.2 Transaction Approach
The selected transaction approach shall govern the procedures applicable to the transaction. Competitive and negotiated transactions shall be conducted as follows:
a. Competitive Marketed Transactions
Competitive transactions are the City's preferred method for offering real property interests to the market unless applicable law or the circumstances of the proposed
transaction support a negotiated transaction in
accordance with Section 5.4.2.2. Competitive transactions may include the sale or lease of City-owned property.

1. Marketing
Marketing shall be conducted using methods
appropriate to the property, approved asset
classification, and approved transaction strategy.

Marketing may include notice of availability,
professional brokerage services procured in
accordance with the City's purchasing policies,
public advertising, online commercial listing
services, requests for proposals, direct outreach, or
other methods appropriate to the proposed
transaction. Any notices required by applicable law
shall also be completed.

2. Evaluate Offers
Offers shall be evaluated based upon the overall
public benefit and consistency with the City's
adopted objectives. While financial consideration is
an important factor, the City Council is not obligated
to approve the highest monetary offer and may
consider other factors, including proposed land use,
development concept, public benefit, transaction
structure, financial return, and other municipal
interests. Evaluation criteria shall reflect the
objectives established for the property through the
approved asset classification.

Where brokerage fees are paid by the City,
proposed consideration shall be evaluated based
112
on the net financial benefit to the City, taking into
account any applicable brokerage fees and other
transaction costs.

3. Recommend
Following completion of the competitive process,
staff shall recommend the preferred transaction to
the appropriate approving authority together with
supporting analysis and findings.
b. Negotiated Transactions
Negotiated transactions may be appropriate where
applicable law or the characteristics of the proposed
transaction make competitive marketing impractical or
inconsistent with the City's objectives. Circumstances
supporting a negotiated transaction may include, but are not limited to:

1. Statutory Negotiations
Where required by applicable law, including the
Surplus Land Act, the City shall conduct
negotiations with eligible entities in accordance with
applicable statutory requirements. Completion of
any required statutory negotiation process does not
obligate the City to approve a transaction unless
otherwise required by law.

2. Adjoining Property Owner
Properties having practical value primarily to one or
more adjoining property owners may be appropriate
for a negotiated transaction because competitive
marketing is unlikely to result in additional
meaningful competition or increased public benefit.

3. Public Agency Transactions
Negotiated transactions may be appropriate where
the proposed transaction is with another
governmental, public, or quasi-public agency and
the transaction advances a public purpose or
municipal objective that would not be enhanced
through competitive marketing.

4. Nonprofit Organizations
Negotiated transactions may be appropriate where
state law authorizes conveyance to a qualified
113
nonprofit organization and the proposed
transaction advances an identified public purpose
or development objective.

5. Property Exchanges
Property exchanges may be appropriate where
another governmental or public agency owns
property needed to further municipal objectives or
where an exchange otherwise provides a clear
advantage to the City. See Section 5.4.5 for
exchange transactions.

6. Entitlement and Due Diligence Contingencies
Negotiated transactions may be appropriate where
entitlement requirements, environmental review,
due diligence, development obligations, or other
property-specific conditions make competitive
marketing impractical or contrary to the City's
interests.

7. Documentation of Negotiated Transactions
Staff shall document the basis for recommending a
negotiated transaction, including the circumstances
supporting negotiation, the basis for the proposed
consideration, and the public benefit or municipal
interest served by the transaction.

8. City Council Authorization to Negotiate
Where the City Council determines that a
negotiated transaction is appropriate, staff may
proceed with negotiations in accordance with the
direction provided by the City Council and return
with a proposed transaction for final consideration.

5.4.3 Lease Transactions
Lease agreements shall be structured to retain City ownership while advancing the approved asset classification and municipal objectives. Lease terms shall appropriately allocate financial responsibilities, operational obligations, maintenance
responsibilities, and risk in a manner that protects the City's interests and supports the intended use of the property. a. Lease Consideration
Lease consideration shall generally reflect Fair Market Rent unless otherwise authorized by law or by the
114
appropriate approving authority. Lease agreements shall include appropriate rent adjustment mechanisms, such as periodic review, CPI adjustments, reappraisals,
percentage rent, or other methods appropriate to the
transaction.
b. Lease Terms
Lease agreements may utilize gross, net, modified gross, percentage rent, triple net, or other rental structures appropriate to the proposed transaction.
c. Selection of Lessee
Staff shall evaluate lease proposals based on the
approved transaction strategy and the extent to which the proposal advances the approved asset classification and municipal objectives. Evaluation may include
consideration of:

1. consistency with the approved asset classification;

2. compatibility with municipal objectives;

3. proposed public benefit;

4. proposed land use or use of the property;

5. financial consideration;

6. financial capability to perform the lease
obligations; or

7. demonstrated experience operating similar
facilities or activities, where applicable;
d. Amendments
Amendments shall be approved by the authority having
jurisdiction under applicable law, ordinance, resolution, or policy. Where an amendment materially affects the
economic terms of the lease, staff shall evaluate whether the proposed consideration remains consistent with Fair Market Rent or otherwise supports the City's interests.

Such evaluation may be supported by an appraisal, broker opinion of value, market survey, or other information
appropriate to the proposed amendment.
e. Financial Encumbrances
The City shall generally not subordinate its ownership
interest in City-owned property to financing or other
encumbrances associated with a leasehold interest.

Exceptions may be approved by the appropriate approving 115
authority when determined to protect the City's interests and support the approved transaction.
f. Improvement
Lease improvements installed by the lessee shall be
removed at termination without cost to the City, or will revert to the City, at the City's option, unless otherwise provided in the lease agreement. Leasehold
improvements shall be subject to the approvals required by applicable law and the applicable lease agreement.
g. Audits
The City may review or audit lease records, financial
information, or other documentation as authorized by the lease agreement to verify compliance with lease terms and financial obligations. Lease agreements that include
percentage rent or other performance-based
compensation should include appropriate reporting and
audit provisions.

5.4.4 Sale transactions
Sale transactions shall be structured to implement the approved asset classification through the transfer of ownership in a manner that advances municipal objectives, protects the City's interests, and provides the greatest overall public benefit consistent with applicable law.
a. Purchase and Sale Agreement
Following City Council approval of a transaction, staff shall prepare a purchase and sale agreement or other
transaction documents appropriate to the disposition,
using City-approved forms or templates where available.

The agreement shall establish the terms of sale, including purchase price, contingencies, closing timeline, and any conditions, covenants, or restrictions necessary to protect the City's interests or satisfy applicable regulatory
requirements.
b. Bid and Sale Deposits
The City may require deposits, earnest money, bid
security, or other financial assurances as appropriate to the proposed transaction. Deposit amounts, form, and
timing shall be established in the solicitation documents, purchase agreement, or other transaction documents
116
approved by the City. Failure to timely deliver a required deposit may be treated as a withdrawal of the offer, and the City may pursue the transaction with the next qualified party.
c. Escrow
Sale transactions shall be closed through escrow with a qualified escrow or title company. Escrow instructions
shall be consistent with the approved purchase and sale agreement and executed by the City Manager or
designee.
d. Conveyance and Deed
Title shall be conveyed by grant deed or other instrument appropriate to the transaction, subject to any reservations, covenants, conditions, restrictions, or exceptions
approved by the City Council or required by applicable law.

Staff shall ensure the deed and any related recorded
documents accurately reflect the approved terms of the
transaction.
e. Disposition of Proceeds
Net proceeds from the sale of City-owned property shall be deposited and allocated in accordance with the City's adopted financial policies, budget direction, or any specific direction provided by the City Council at the time of
transaction approval, including any restrictions imposed by grant funding, deed restrictions, or other applicable law.

5.4.5 Exchanges
Property exchanges shall be structured to advance the approved asset classification and municipal objectives through the mutual conveyance of real property interests. Exchanges shall generally follow the transaction procedures established in Section 5.4.4, with the following distinctions:
a. Value Equivalency
Staff shall obtain appraisals, broker opinions of value, or other market valuations for each property involved in the exchange sufficient to establish rough equivalency of
value. Where the properties are not of substantially equal value, the transaction may include an equalization
payment or other consideration to account for the
difference, subject to City Council approval.
117
b. Reciprocal Conveyance
Because an exchange involves the City conveying and
receiving an interest in real property in the same
transaction, closing documents shall address conveyance in both directions concurrently, including reciprocal deeds and any escrow instructions necessary to ensure
simultaneous or conditioned closing.
c. Regulatory Considerations
Staff shall confirm whether the exchange qualifies for any applicable exemption under the Surplus Land Act or other law, and shall complete any due diligence, entitlement, or environmental review applicable to the property being
acquired by the City, in addition to the property being conveyed.

5.4.6 Closing and Post Closing.

Following execution of a real property transaction, staff shall complete the closing and post-closing activities necessary to finalize the transaction and maintain accurate City records. a. Recording
Deeds, easements, memoranda of lease, and other
instruments affecting title to City-owned property shall be recorded with the County Recorder as necessary to
provide public notice and protect the City's interests, unless the City Manager or designee determines that
recordation is not required or appropriate for the
transaction.
b. Asset Records
Upon closing, staff shall update the City's title,
encumbrance, and lease administration records to reflect the completed transaction, including any changes in
ownership, easements, restrictions, or lease obligations affecting the property.
c. REAMP Update
Following completion of a real property transaction, staff shall update the Real Estate Asset Management Program
(REAMP), property inventory, and any related records to reflect the completed transaction and the current status of the property. Completion of a transaction does not
preclude future evaluation or reclassification of remaining 118
City-owned property as municipal needs and priorities
evolve.
d. Financial Reporting
Staff shall report completed real property transactions in accordance with the City's adopted financial policies and reporting practices, including any information necessary to support the City's annual financial statements, capital asset records, or budget documents, and any reporting
required under the Surplus Land Act or other applicable law.
119
Attachment 4
120
121
122
123
124
125
126

POLICY AND PROCEDURE

1.0 PURPOSE:

The purpose of these policies and procedures is to establish guidelines for the identification, evaluation, acquisition, acceptance, and management of real property interests by the City. The policy is intended to ensure that all acquisitions serve a legitimate public purpose, are consistent with adopted City goals and plans, are fiscally responsible, and are supported by appropriate due diligence to identify risks, liabilities, and long-term ownership obligations.

This policy applies to fee title acquisitions, easements, rights-of-way, dedications, donations, bargain sales, conservation acquisitions, property exchanges, and any other real property interests acquired by the City.

2.0 ORGANIZATION AFFECTED:

All Departments and Divisions.

3.0 REFERENCES:

Government Code Sections 37350 et seq.

Government Code Section 65402
California Environmental Quality Act (CEQA)
California Surplus Land Act (Government Code Section 54220 et seq.) City General Plan
Local Coastal Program
Capital Improvement Program
Real Estate Asset Management Program
Applicable State and Federal Grant Requirements
Subject: Property Acquisition
Policies and Procedures
Index: Real Property
Management
Number: 901-2
Effective Date: Prepared By: Community
Development Department
Supersedes: N/A Approved By:

Attachment 5
127

4.0 POLICY:

The following policies shall govern the acquisition of real property interests by the City.

4.1 Public Purpose
The City shall acquire property only when the acquisition serves a legitimate municipal purpose or advances an adopted City objective.

Staff shall identify and document the public purpose served by a proposed acquisition prior to recommending further evaluation, due diligence, or acquisition. Such purposes may include public facilities, infrastructure, open space, housing, economic development, public access, or other adopted municipal objectives.

4.2 Fiscal Responsibility
Property acquisitions shall be evaluated based upon both acquisition costs and long-term ownership obligations.

Staff shall evaluate and document the anticipated financial, operational, maintenance, risk, and long-term ownership implications associated with a proposed acquisition prior to recommending further evaluation, due diligence, or acquisition. Such evaluation may include consideration of acquisition costs, capital improvement requirements, maintenance obligations, funding constraints, revenue opportunities, and other factors affecting the long-term fiscal sustainability of ownership.

4.3 Due Diligence Requirement
No property acquisition shall be recommended to the City Council until sufficient due diligence has been completed to identify material risks, liabilities, costs, constraints, and opportunities associated with ownership.

4.4 City Council Authority
Unless otherwise expressly delegated by ordinance or resolution, the City Council shall retain authority to approve all acquisitions of real property interests.

4.5 Unsolicited Offers and Property Donations
The City may receive unsolicited proposals involving the sale, transfer, donation, or other conveyance of real property interests to the City.

Receipt of an unsolicited offer or proposed property donation does not obligate the City to evaluate, negotiate, or accept the property.

Staff may conduct a preliminary review to determine whether an unsolicited acquisition opportunity supports identified City needs, priorities, or adopted objectives and warrants further evaluation. 128
The City shall not be obligated to accept ownership of property solely because the property is offered without cost.

The absence of an acquisition price does not eliminate future ownership obligations and liabilities. Donated properties shall be subject to the same evaluation and due diligence requirements applicable to purchased properties.

4.6 Responsibility
Responsibility and authority for implementation and administration of these policies and procedures shall vest with the City Manager or the City Manager's designee.

5.0 PROCEDURE:

5.1 Identification of Property
Potential acquisitions may be identified through City-initiated planning efforts or through opportunities presented by property owners, developers, governmental agencies, nonprofit organizations, or other parties.

5.1.1 City-Initiated Identification
Potential acquisitions may be identified through Capital Improvement Program needs, General Plan implementation, strategic planning initiatives, open space preservation opportunities, public infrastructure projects, affordable housing initiatives, economic development programs, or other City operational needs.

5.1.2 Externally Identified Opportunities
Potential acquisitions may be identified through property owner proposals, property donations, development conditions or dedications, grant funding opportunities, or other opportunities presented by external parties.

5.2 Preliminary Evaluation
Prior to initiating formal acquisition activities, staff shall prepare a preliminary evaluation of the real property.

5.2.1 Public Benefit
Staff shall identify the public purpose served by the proposed acquisition and the anticipated public benefits associated with ownership. Public benefits may include open space
preservation, recreation, infrastructure, transportation, public safety, affordable housing, municipal operations, economic 129
development, land assembly, public access, and similar
municipal objectives.

5.2.2 Fiscal and Strategic Review
Staff shall conduct a preliminary review of the anticipated fiscal and strategic implications of a proposed acquisition to inform the determination of whether further evaluation and due diligence is warranted. The review is intended to identify significant considerations that may affect the viability of the acquisition and is not a substitute for the more detailed analyses performed during due diligence or subsequent evaluation activities.

Considerations may include acquisition costs, anticipated operational and maintenance obligations, funding availability and restrictions, potential revenue opportunities, significant known risks or liabilities, and strategic value to the City.

5.2.3 Consistency with City Plans
Staff shall evaluate consistency with applicable City plans and programs, including the General Plan, Local Coastal Program, Capital Improvement Program, Local Hazard Mitigation Plan, adopted strategic plans, Parks and Recreation Master Plan, open space and conservation objectives, and other applicable planning documents.

5.2.4 Alternative Approaches
Staff shall evaluate whether the public purpose served by the proposed acquisition could reasonably be achieved through alternatives to property acquisition, including easements, licenses, maintenance agreements, joint-use agreements, conservation restrictions, or other mechanisms requiring less financial commitment than fee ownership.

5.2.5 Determination to Proceed
Upon completion of the preliminary evaluation, the City Manager or the City Manager's designee shall determine whether the proposed acquisition warrants further evaluation and due diligence. If the proposed acquisition is determined not to warrant further consideration, staff may discontinue the acquisition process. If the proposed acquisition is determined to warrant further consideration, staff may proceed with the due diligence activities described in Section 5.3.
130

5.3 Required Due Diligence

5.3.1 Title Review
A title review shall be completed to identify legal interests affecting the property.

The review shall evaluate:
a. Ownership and vesting;
b. Easements;
c. Encroachments;
d. Deed restrictions;
e. Covenants;
f. Access rights;
g. Mineral rights;
h. Existing leases or licenses;
i. Liens and assessments;
j. Other encumbrances affecting ownership or use.

5.3.2 Boundary and Survey Review
When appropriate, staff shall obtain or review surveys to verify:
a. Property boundaries;
b. Acreage;
c. Easements;
d. Access points;
e. Encroachments;
f. Topographic conditions;
g. Consistency between legal descriptions and physical
conditions.

5.3.3 Environmental Assessment
Environmental due diligence shall be performed, as appropriate, for the acquisition. Studies may include Phase 1 environmental studies, hazardous materials investigations, natural resource assessments, cultural resource investigations, and other environmental studies appropriate to the property. Staff shall identify potential environmental liabilities and estimated remediation costs.

5.3.4 Geotechnical Evaluation
Properties containing slopes, bluffs, drainage facilities, retaining walls, canyons, or other geologic features shall be evaluated as appropriate.

Reviews may include:
131
a. Slope and Stability

1. Geotechnical investigations;

2. Slope stability evaluations;

3. Landslide hazard analyses;

4. Bluff stability studies;

5. Erosion assessments;

6. Retaining wall inspections;
b. Soil and Seismic Conditions

1. Soil suitability assessments;

2. Seismic hazard evaluations;

3. Liquefaction analyses.

5.3.5 Infrastructure and Facility Assessment
Where improvements exist, staff shall evaluate the condition and functionality of all structures and infrastructure. Assessments may include evaluations of building conditions, structural integrity, building systems, accessibility compliance, utilities, drainage facilities, transportation infrastructure, recreational improvements, and other site improvements. Particular attention shall be given to deferred maintenance obligations and future replacement costs.

5.3.6 Financial Assessment
Staff shall evaluate the anticipated financial implications of acquisition and ownership. The Financial Assessment shall incorporate findings from other due diligence activities, as appropriate. The Financial Assessment shall review for the following considerations:
a. Financial Considerations

1. Purchase price or acquisition cost;

2. Capital improvement requirements;

3. Potential revenue generation opportunities;

4. Due diligence expenses;

5. Funding source restrictions.
b. Operations and Maintenance Considerations

1. Landscape maintenance;

2. Habitat management;

3. Fuel modification and wildfire mitigation;

4. Building maintenance;

5. Utility costs;

6. Insurance costs;
132

7. Storm drain maintenance;

8. Trail maintenance;

9. Security needs;

10. Staffing requirements;

11. Contract service requirements;

12. Equipment requirements;

13. Capital reserve funding.
c. Risk and Liability Considerations

1. Public safety concerns;

2. Environmental liabilities;

3. Flood hazards;

4. Litigation exposure;

5. Accessibility compliance obligations;

6. Security concerns;

7. Regulatory compliance requirements;

8. External agency requirements, approvals, or
coordination needs;

9. Unfunded maintenance obligations;

10. Deferred maintenance liabilities;

11. Future capital expenditures;

12. Potential nuisance conditions;

13. Other material financial risks.

Where feasible, annual costs should be estimated for at least the first ten years of ownership.

5.4 Appraisal and Valuation

5.4.1 Acquisitions Involving Compensation
Acquisitions involving compensation shall generally be
supported by an appraisal, appraisal review, broker opinion of value, or other valuation method appropriate to the transaction.

5.4.2 Donations and Dedications
Valuation may be obtained for donated property when necessary for financial reporting, tax liability, grant requirements, accounting purposes, or City Council consideration. Donated property shall be evaluated using the same due diligence procedures applicable to other acquisitions under this policy.

5.5 Risk Allocation and Long-Term Stewardship

5.5.1 Owner Retained Obligations
The City recognizes that certain properties may provide a public benefit warranting acquisition while simultaneously containing 133
improvements, facilities, operational obligations, or maintenance responsibilities that are not financially feasible, operationally advantageous, or strategically appropriate for the City to assume.

Accordingly, the City may condition acquisition upon the retention of certain maintenance, operational, repair,
replacement, monitoring, or management obligations by the transferring property owner or other responsible party.

5.5.2 Financial Contributions
As a condition of acquisition, the City may require one-time or ongoing financial contributions to offset anticipated ownership and maintenance costs.

Funding mechanisms may include maintenance endowments,
reserve funds, capital repair contributions, annual maintenance payments, assessment district funding, Community Facilities District funding, special benefit assessments, homeowners association contributions, or other funding arrangements deemed appropriate by the City.

The amount of any contribution may be based upon estimated lifecycle costs, anticipated maintenance obligations,
replacement reserves, liability exposure, or other relevant considerations.

5.5.3 Maintenance Agreements
The City may enter into maintenance agreements whereby the transferring property owner, homeowners association, property management entity, developer, assessment district, or other responsible party agrees to continue maintaining specified improvements or facilities following transfer of ownership. Such improvements or facilities may include manufactured slopes, retaining walls, drainage facilities, debris basins, trails, irrigation systems, habitat restoration areas, fuel modification zones, landscaping, or other site-specific improvements. Such
agreements may be temporary or perpetual in duration, as determined appropriate by the City.

5.5.4 Easements and Access Rights
In lieu of assuming full maintenance responsibility, the City may require the reservation or grant of easements, access rights, maintenance rights, inspection rights, or other legal instruments 134
necessary to allow continued maintenance by responsible parties.

Such arrangements may be used where the public benefits of City ownership can be achieved without transferring all operational and maintenance obligations to the City.

5.5.5 Long-Term Stewardship Obligations
Where long-term maintenance obligations are retained by another party, the City shall seek to ensure that adequate legal mechanisms exist to provide for continued performance of those obligations.

Such mechanisms may include legal mechanisms such as
recorded maintenance agreements, easements, and covenants running with the land; financial mechanisms such as
assessment districts, financial security instruments, endowment funding, and performance guarantees; and other enforceable arrangements.

5.5.6 City Council Considerations
Prior to accepting property subject to retained maintenance obligations or cost-sharing arrangements, the City Council shall be provided information necessary to facilitate their
consideration of the following:

Whether the proposed arrangement adequately protects the City's interests;
a. Whether sufficient funding exists to address future
obligations;
b. Whether the responsible party possesses the ability to perform the required maintenance;
c. Whether adequate enforcement mechanisms exist; and
d. Whether the arrangement is consistent with the long-term interests of the City.

5.5.7 Properties with Significant Long-Term Ownership Obligations Properties containing manufactured slopes, retaining walls, drainage systems, debris basins, habitat, fuel modification zones, or similar improvements shall receive heightened scrutiny.

The City may require:
a. Technical Evaluation such as engineering evaluations, geotechnical investigations, or structural assessments; 135
b. Financial Evaluation such as reserve studies or financial contributions; and/or
c. Corrective Actions such as corrective improvements prior to transfer.

5.6 Acquisition Classification
Each property shall be assigned an asset classification to establish its intended role within the City's real estate portfolio. The recommended classification shall be included in the staff report presented for acquisition approval. Asset classifications are defined in the Real Estate Asset Management Program and shall be assigned as part of the acquisition process.

5.7 Lifecycle Cost Analysis
The City recognizes that acquisition costs may represent only a small portion of total ownership costs.

Prior to acquisition, a lifecycle cost analysis should generally be prepared when the anticipated ownership obligations, operational complexity, or long-term financial commitments associated with an acquisition warrant additional evaluation before acquisition.

5.7.1 Applicability
Circumstances that may warrant preparation of a lifecycle cost analysis include properties larger than five acres, properties containing buildings or structures, open space properties requiring active management, properties containing significant infrastructure, properties involving substantial annual maintenance obligations, and other acquisitions determined by the City Manager or the City Manager's designee to warrant additional analysis.

5.7.2 Analysis Components
The lifecycle cost analysis should consolidate and summarize, as applicable, findings from the Financial Assessment and other due diligence activities in order to evaluate the anticipated longterm financial implications of ownership, including acquisition, operational, maintenance, regulatory compliance, reserve funding, capital replacement, and risk-related costs.

5.7.3 Open Space and Donated Property Considerations
Properties offered without cost shall not be presumed to provide a net benefit to the City.

Staff shall evaluate whether anticipated ownership costs outweigh the public benefits associated with acquisition. 136

5.7.4 City Council Findings
Prior to approving acquisitions involving significant ongoing obligations, the City Council should consider whether:
a. The public benefits justify the anticipated ownership costs;
b. Adequate funding exists to support long-term
management and maintenance;
c. The acquisition advances adopted City goals and
priorities; and
d. The risks and liabilities associated with ownership are acceptable.

5.8 Consultants, Brokers, and Professional Services

5.8.1 Use of Professional Services
Real estate transactions may require specialized expertise beyond existing staff resources. The City Manager or the City Manager's designee may retain consultants, brokers, attorneys, appraisers, engineers, environmental professionals, surveyors, title professionals, or other specialists to assist with evaluating, negotiating, acquiring, or managing real property interests.

5.8.2 Real Estate Brokers
The City may retain licensed real estate brokers when doing so is in the City's best interest. Broker compensation must be established through written agreement and comply with the City's purchasing policies and approval requirements.

5.8.3 Cost Recovery
Where appropriate, the City may require applicants, property owners, homeowners associations, developers, or other parties proposing a transfer to reimburse the City for consultant costs incurred in evaluating the proposed acquisition.

Such costs may include, but are not limited to, environmental studies, engineering evaluations, appraisals, title review, legal services, and other due diligence activities necessary to determine whether acquisition is in the City's interest.

5.9 City Manager Recommendation
Based upon information obtained during the acquisition review process, the City Manager or the City Manager's designee shall provide a recommendation to the City Council regarding the proposed acquisition, including any recommended conditions of approval or funding requirements.
137

5.10 City Council Approval

5.10.1 The staff report presented to the City Council for a proposed acquisition must include:
a. Background — property description, ownership
information, proposed acquisition terms, public purpose and anticipated public benefits, and asset classification; b. Due diligence and environmental findings — summary of due diligence results and environmental review findings; c. Fiscal impact — appraised value or other valuation
information, fiscal impact analysis, lifecycle cost analysis (including estimated annual maintenance costs) if
applicable, and funding sources;
d. Discussion — risk assessment summary;
e. Recommended action — staff recommendation;
f. Documents — forms of documents to accomplish the
proposed acquisition; and
g. Resolution — a proposed resolution authorizing staff to complete the acquisition.

5.10.2 The City Council shall determine whether acquisition of the property is in the best interest of the City and may approve, modify, or deny the proposed acquisition.

5.10.3 The City Council’s official approval of a proposed acquisition shall be documented in a proper recorded instrument executed by the City Manager or designee pursuant to authorization from the City Council by resolution. Such instruments may include deeds, grants and certificates of acceptance in compliance with Government Code section 27281. The City shall not be deemed to have acquired or accepted any interest in any real property until such instrument duly executed by the City Manager or designee is recorded. The City hereby disclaims any liability for any real property interests that have not been accepted in writing in accordance with the foregoing. The City hereby expressly disavows any intention to acquire real property interests through a course of conduct unaccompanied by a duly authorized, executed and recorded written acceptance.
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 18, 2026 Agenda Item: 10B.

Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director Subject:
..titl e
CONSIDERATION OF AN ORDINANCE AMENDING SECTION 1.12.010 OF THE SAN

CLEMENTE MUNICIPAL CODE TO AUTHORIZE THE PARK RANGERS TO ENFORCE PROVISIONS OF THE CALIFORNIA FISH AND GAME CODE; AND FINDING THIS ACTION IS

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTIONS 15307, 15308, AND 15321 ..body Summary:

The City Council is being asked to consider an Ordinance to expand the authority of the San Clemente Park Rangers to include enforcing existing provisions of the California Fish and Game Code and related regulations contained in Title 14 of the California Code of Regulations. Park Rangers routinely encounter these violations during patrols of City beaches, the San Clemente Pier, and other coastal areas, and also receive frequent reports and complaints from residents and members of the public regarding suspected illegal fishing activity. The amendment would allow Park Rangers to address observed violations and respond to public complaints without relying solely on the California Department of Fish and Wildlife or another agency for initial enforcement. The Ordinance would not expand the specialized investigative authority reserved to the California Department of Fish and Wildlife.

Background:

Park Rangers encounter violations of the California Fish and Game Code and fish and game administrative regulations in Title 14 of the California Code of Regulations during routine patrols of City beaches, the Pier, and other coastal areas. Common violations encountered on the Pier include the taking of lobster out of season, taking an over-the-limit amount of lobster or other fish, use of prohibited methods of take, and the taking of undersized lobster and fish. These violations generally require response by the California Department of Fish and Wildlife or another agency with applicable enforcement authority.

Discussion:

Chapter 1 of the Municipal Code authorizes Park Rangers to make arrests and issue citations for laws they have the duty to enforce under California Penal Code Section 836.5. The proposed amendment (Attachment 1) would assign Park Rangers the duty to enforce the California Fish and Game Code and the fish and game administrative regulations in Title 14 of the California Code of Regulations, allowing Park Rangers to address those violations during routine beach patrol, and in response to the frequent complaints from residents and members of the public received by the Park Rangers. The Pier is a popular fishing destination for visitors to San Clemente. A majority of violators are not local to San Clemente or Orange County, and organized groups often use the Pier for illegal lobster poaching operations. 158
Meeting Date: August 18, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE 2
The proposed amendment does not expand the investigative authority reserved to the California Department of Fish and Wildlife. Park Rangers would continue to exercise arrest and citation authority under Penal Code Section 836.5, with violations requiring specialized investigative authority remaining under the jurisdiction of the California Department of Fish and Wildlife.

Staff reviewed comparable municipal code provisions from other California jurisdictions that assign designated city employees the duty to enforce state laws. The proposed amendment is consistent with ordinances adopted by the Cities of Laguna Beach and Newport Beach, both of which expressly assign designated city employees the duty to enforce the California Fish and Game Code and the fish and game administrative regulations in Title 14 of the California Code of Regulations.

Considerations Identified by Staff:

The proposed amendment would improve the City's ability to address violations routinely submitted by City residents and encountered by staff during coastal patrols, allowing Park Rangers to respond when violations are observed rather than relying on another agency for initial enforcement.

Council Options:
 Introduce and conduct a first reading of Ordinance No. 1812.  Modify and then introduce Ordinance No. 1812.
 Continue the item and provide direction to staff.
 Decline to introduce the attached ordinance.

Environmental Review/Analysis:

The proposed ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Sections 15307, 15308, and 15321. Section 15307, the Class 7 categorical exemption, applies to actions taken by regulatory agencies to assure the maintenance, restoration, or enhancement of natural resources where the regulatory process involves procedures for the protection of the environment. Section 15308, the Class 8 categorical exemption, similarly applies to regulatory actions undertaken to assure the maintenance, restoration, enhancement, or protection of the environment. Section 15321, the Class 21 categorical exemption, applies to actions by regulatory agencies involving the enforcement of existing laws, rules, standards, and objectives.

The proposed ordinance assigns City Park Rangers the duty to enforce existing provisions of the California Fish and Game Code and the fish and game administrative regulations contained in Title 14 of the California Code of Regulations. The ordinance is intended to improve enforcement of existing restrictions concerning the unlawful take, possession, size, quantity, season, and methods of take of fish, lobster, and other wildlife. It therefore constitutes an action by a regulatory agency intended to maintain, enhance, and protect fish, wildlife, and other natural resources and to facilitate enforcement of existing environmental laws and regulations. The ordinance does not authorize construction, physical development, or any relaxation of standards intended to protect natural resources or the environment. 159
Meeting Date: August 18, 2026 Agenda Item: 10B.

CITY OF SAN CLEMENTE 3
The proposed ordinance is also exempt under the “common sense” exemption set forth in State CEQA Guidelines Section 15061, subdivision (b)(3), because it can be seen with certainty that there is no possibility that assigning existing City personnel authority to enforce existing fish and game laws and regulations may have a significant adverse effect on the environment. The ordinance does not approve or authorize any development or physical alteration of the environment, and any reasonably foreseeable environmental effects associated with improved enforcement would be protective or beneficial.

Finally, none of the exceptions to the use of categorical exemptions identified in State CEQA Guidelines Section 15300.2 apply. The proposed ordinance involves no construction or physical alteration, creates no new development entitlement, and does not relax any environmental protection standard. Accordingly, no further environmental review is required.

Fiscal Impact:

None. The proposed amendment would be implemented with existing staff and resources.

Potential Action(s):
..recommendation
Introduce and conduct a first reading of Ordinance No. 1812 entitled, “AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING SECTION

1.12.010(A)(6) OF THE SAN CLEMENTE MUNICIPAL CODE RELATING TO PARK RANGER

ENFORCEMENT DUTIES AND FINDING THIS ACTION EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PUSUANT TO CEQA GUIDELINES SECTIONS 15307, 15308, AND 15321.”
..end
Attachment:

1. Proposed Ordinance No. 1812
Notification:

None.
160
Attachment 1
ORDINANCE NO. 1812

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING
SECTION 1.12.010(A)(6) OF THE SAN CLEMENTE

MUNICIPAL CODE RELATING TO PARK RANGER

ENFORCEMENT DUTIES AND FINDING THIS

ACTION EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PUSUANT
TO CEQA GUIDELINES SECTIONS 15307, 15308,
AND 15321
WHEREAS, California Penal Code Section 836.5 authorizes designated public officers and employees to make arrests and issue citations for violations of statutes or ordinances they have the duty to enforce; and
WHEREAS, Section 1.12.010(A)(6) of the San Clemente Municipal Code designates Park Rangers as public officers authorized to exercise that authority for laws they have the duty to enforce; and
WHEREAS, Park Rangers routinely encounter violations of the California Fish and Game Code and the fish and game administrative regulations in Title 14 of the California Code of Regulations during patrol of City beaches, the pier, and other coastal areas; and WHEREAS, the City Council finds that this amendment will improve operational enforcement of observed violations without expanding the investigative authority reserved to the California Department of Fish and Wildlife; and
WHEREAS, the City Council desires to amend Section 1.12.010(A)(6) of the San Clemente Municipal Code to expressly assign those enforcement duties.

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

SECTION 1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated as findings as if fully set forth herein.

SECTION 2. CEQA. Based on a review of the record as a whole, the City Council finds that this Ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Sections 15307, 15308, and 15321. Section 15307, the Class 7 categorical exemption, applies to actions taken by regulatory agencies to assure the maintenance, restoration, or enhancement of natural resources where the regulatory process involves procedures for the protection of the environment. Section 15308, the Class 8 categorical exemption, similarly applies to regulatory actions undertaken to assure the maintenance, restoration, enhancement, or 161
Ordinance No. 1812 Page 2
protection of the environment. Section 15321, the Class 21 categorical exemption, applies to actions by regulatory agencies involving the enforcement of existing laws, rules, standards, and objectives.

The Ordinance assigns City Park Rangers the duty to enforce existing provisions of the California Fish and Game Code and the fish and game administrative regulations contained in Title 14 of the California Code of Regulations. The Ordinance is intended to improve enforcement of existing restrictions concerning the unlawful take, possession, size, quantity, season, and methods of take of fish, lobster, and other wildlife. It therefore constitutes an action by a regulatory agency intended to maintain, enhance, and protect fish, wildlife, and other natural resources and to facilitate enforcement of existing environmental laws and regulations. The Ordinance does not authorize construction, physical development, or any relaxation of standards intended to protect natural resources or the environment.

The Ordinance is also exempt under the “common sense” exemption set forth in State CEQA Guidelines Section 15061, subdivision (b)(3), because it can be seen with certainty that there is no possibility that assigning existing City personnel authority to enforce existing fish and game laws and regulations may have a significant adverse effect on the environment. The Ordinance does not approve or authorize any development or physical alteration of the environment, and any reasonably foreseeable environmental effects associated with improved enforcement would be protective or beneficial.

Finally, none of the exceptions to the use of categorical exemptions identified in State CEQA Guidelines Section 15300.2 apply. The Ordinance involves no construction or physical alteration, creates no new development entitlement, and does not relax any environmental protection standard. Accordingly, no further environmental review is required.

SECTION 3. Subsection (A)(6) of Section 1.12.010 of the Code of the City of San Clemente is hereby amended as follows, with additions shown in underlined text, and deletions shown in strike-through text:

6. Park Rangers and employees designated by the City Manager as having the duty to enforce a statute or ordinance, or, notwithstanding any provisions of this Code to the contrary, any provisions of this Code for any violations occurring on public parks, beaches, and other publicallypublicly-accessible City facilities, or parking violations occurring in parking lots servicing public parks, beaches, and other publicallypublicly-accessible City facilities. The officers and employees designated in this subsection shall also have the duty to enforce the California Fish and Game Code and the fish and game administrative regulations in Title 14 of the California Code of Regulations. Nothing in this subsection shall be construed to grant any rights or privileges of search, seizure, or inspection conferred by the Fish and Game Code (including, but not limited to, Sections 1006, 2012, and 7702) to employees of the California Department of Fish and Wildlife. 162
Ordinance No. 1812 Page 3
SECTION 4. 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.

SECTION 5. Publication. The City Clerk shall certify to the adoption of this ordinance by the City Council and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code, Section 36933.

SECTION 6. Records. The documents and materials associated with this ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92673.

SECTION 7. 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.

SECTION 8. Effective Date. This Ordinance shall become effective 30 days after its adoption.

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
163
Ordinance No. 1812 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. 1812 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
164
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 18, 2026 Agenda Item: 10C.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks and Recreation Director Subject:
..titl e
CONSIDERATION OF RESOLUTION NO. 26-136, APPROVING THE ARTS AND CULTURE COMMITTEE FY 2026-27 WORK PLAN
..body
Summary:

At its July 27, 2026, meeting, the Arts and Culture Committee reviewed and recommended a proposed Work Plan identifying six priority areas for the upcoming fiscal year. The proposed priorities include public art, cultural events and programming, amphitheater feasibility, funding and partnerships, 2028 Olympics and Centennial planning, and historical resources and collaboration.

Background:

The Arts and Culture Committee serves in an advisory capacity to support and promote arts, culture, history, and creative opportunities within the San Clemente community. As part of the City's annual work planning process, committees identify priority projects and initiatives to pursue during the fiscal year and seek City Council authorization to complete the tasks. The annual Work Plan provides a framework for focusing Committee efforts, coordinating staff resources, and identifying initiatives that may require future City Council consideration.

Discussion:

The proposed Fiscal Year 2026-27 Work Plan includes the following priority areas:

1. Public Art Improvements and Installations: Continue to identify and support opportunities for public art throughout the community, including utility boxes, murals, artistic crosswalks, statues, and other installations.

2. Cultural Events and Programming: Explore opportunities for participating in cultural events and new programming, including a Tamale Festival.

3. Amphitheater Feasibility: Explore the feasibility of an outdoor amphitheater or community performance venue, including potential locations, uses, and future planning needs. Note: At the August 4, 2026, regular meeting of the City Council, the City Council identified a location and provided staff with specific direction in relation to further development of an existing amphitheater located at Forster Ranch Community Park. Therefore, staff would suggest removal of this item from the Work Plan.

4. Funding, Partnerships, and Sponsorships: Identify grants, sponsorships, partnerships, and other opportunities to support arts and cultural programs and projects. 165
Meeting Date: August 18, 2026 Agenda Item: 10C.

CITY OF SAN CLEMENTE 2

5. 2028 Olympics and Centennial Planning: Support arts and cultural programming opportunities associated with the City's Centennial and the 2028 Olympic Games.

6. Historical Resource Collaboration and Partnership Efforts: Support collaboration and partnerships that recognize, preserve, and promote San Clemente's historical and cultural resources.

Considerations Identified by Staff:

The proposed Work Plan establishes broad areas of focus while providing flexibility for the Committee to develop individual concepts and recommendations throughout the fiscal year.

Implementation will be prioritized based on available staff capacity, funding, partnership opportunities, and coordination with other City initiatives.

Several Work Plan items may overlap with efforts of other City departments, community organizations, and upcoming Citywide planning efforts. Staff will coordinate these activities as appropriate to avoid duplication and maximize available resources.

Of particular note, the City Council has already provided specific direction to staff in relation to further improvements of the outdoor amphitheater located at Forster Ranch Community Park. To avoid duplication of effort or inconsistency with existing direction from the City Council removal of that item from the Work Plan would be appropriate.

Council Options:
 Adopt Resolution No. 26-136, which will approve the Arts and Culture Committee 2026-27 Work Plan and make related findings under the California Environmental Quality Act (CEQA).  Modify the ACC 2026-27 Work Plan by either (a) removing proposed items or (b) adding items; and adopt Resolution No. 26-136 (specifically removal of any Committee action in relation to an outdoor amphitheater).
 Continue the item with further direction provided to staff and the Committee.  Deny the Work Plan.

Environmental Review/Analysis:

Approval of the Arts and Culture Committee Work Plan establishes advisory priorities and does not constitute approval of a physical project. Therefore, approval of the Work Plan is not a project subject under the California Environmental Quality Act (CEQA) CEQA Guidelines Section 15378(b)(5). Future projects will be evaluated for CEQA compliance, as applicable, prior to implementation.

Fiscal Impact:

Approval of the Fiscal Year 2026-27 Arts and Culture Committee Work Plan does not authorize additional expenditures or establish new budget appropriations. Work Plan activities will be undertaken within existing staff resources and adopted budgets where feasible. Should an individual initiative require additional funding or consultant services, staff will return to the City Council for authorization as appropriate.
166
Meeting Date: August 18, 2026 Agenda Item: 10C.

CITY OF SAN CLEMENTE 3
Potential Action(s):
..recommendation
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-136, which would approve the Arts and Culture Committee Fiscal Year 2026-27 Work Plan as proposed. However, if the City Council would like to modify the resolution to remove any action by the committee in relation to the outdoor amphitheater, the appropriate action would be to modify and adopt Resolution No. 26-136.
..end
Attachment:

1. Resolution No. 26-136
Notification:

None.
167
Attachment 1
RESOLUTION NO. 26-136

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING THE ARTS
AND CULTURE COMMITTEE FISCAL YEAR 2026-27 WORK
PLAN
WHEREAS, the Arts and Culture Committee serves in an advisory capacity to support and promote arts, culture, history, and creative opportunities within the San Clemente community; and
WHEREAS, the City utilizes annual work plans to establish priorities for its commissions and committees and to coordinate those priorities with available City resources and City Council direction; and
WHEREAS, at its meeting of July 27, 2026, the Arts and Culture Committee reviewed and approved its proposed Fiscal Year 2026-27 Work Plan; and WHEREAS, the proposed Work Plan identifies the six priority areas; and WHEREAS, approval of the Work Plan establishes priorities for the Arts and Culture Committee but does not authorize additional expenditures, contractual commitments, or the implementation of individual projects that require separate City Council approval.

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

SECTION 1. The foregoing recitals are true and correct and are fully incorporated herein by this reference.

SECTION 2. The City Council hereby approves the Arts and Culture Committee Fiscal Year 2026-27 Work Plan, attached hereto as Exhibit “A” and incorporated herein by this reference.

SECTION 3. Implementation of the Work Plan shall be subject to available staff resources, adopted City budgets, applicable City policies and procedures, and any additional City Council authorization required for individual projects or expenditures.

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 ____________________, _______. 168
Resolution No. 26-136 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. 26-136 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
169
Resolution No. 26-136 Page 3

ANNUAL WORK PLAN
Arts and Culture Committee
FY 2026-2027
Project Name: (No. 1) Public Art Improvements and Installations Purpose, Goals, and Deliverables of Project:

Identify and advance opportunities for public art, including utility boxes, murals, artistic crosswalks, statues, and other installations. Develop recommendations for potential projects, locations, partnerships, and funding.

Estimated Project Costs. If cost is involved, is it included in the adopted City budget?
To be determined on a case-bycase basis; additional funding may require Council approval.

Project Timeline (Anticipated Start and End Dates): FY 2026-27 Resources Needed (including Staff hours): Committee and staff time; potential community/artist partnerships.

Is this a new project or unfinished project from the prior fiscal year? Unfinished Project Name: (No. 2) Cultural Events and Programming
Purpose, Goals, and Deliverables of Project:

Explore and support cultural events and programming, including Cinco de Mayo, Día de los Muertos, and a Tamale Festival. Evaluate event concepts, partnerships, locations, and resources.

Estimated Project Costs. If cost is involved, is it included in the adopted City budget?
To be determined on a case-by-case
basis; additional funding may require
Council approval.

Project Timeline (Anticipated Start and End Dates): FY 2026-27 Resources Needed (including Staff hours): Committee time Is this a new project or an unfinished project from the prior fiscal year? New/Expanded 170
Resolution No. 26-136 Page 4

ANNUAL WORK PLAN
Arts and Culture Committee
FY 2026-2027
Project Name: (No. 3) Amphitheater Feasibility
Purpose, Goals, and Deliverables of Project:

Explore community need, potential locations, uses, and preliminary feasibility of an outdoor performance venue. Develop recommendations regarding potential next steps.

Estimated Project Costs. If cost is involved, is it included in the adopted City budget?
Initial Committee review within
existing resources
Project Timeline (Anticipated Start and End Dates): FY 2026-27 Resources Needed (including Staff hours): Committee and staff time Is this a new project or unfinished project from the prior fiscal year? Unfinished Project Name: (No. 4) Funding, Partnerships, and Sponsorships Purpose, Goals, and Deliverables of Project:

Identify grants, sponsorships, partnerships, and other outside resources to support arts and cultural programming and projects.

Estimated Project Costs. If cost is involved, is it included in the adopted City budget? Unknown
Project Timeline (Anticipated Start and End Dates): FY 2026-27 Resources Needed (including Staff hours): Committee and staff time.

Is this a new project or unfinished project from the prior fiscal year? Unfinished 171
Resolution No. 26-136 Page 5

ANNUAL WORK PLAN
Arts and Culture Committee
FY 2026-2027
Project Name: (No. 5) 2028 Olympics and Centennial Planning Purpose, Goals, and Deliverables of Project:

Identify arts, cultural, historical, and community programming opportunities associated with the City's Centennial and 2028 Olympic Games.

Estimated Project Costs. If cost is involved, is it included in the adopted City budget?
To be determined as individual
initiatives are developed.

Project Timeline (Anticipated Start and End Dates): FY 2026-27 and ongoing through 2028 Resources Needed (including Staff hours): Committee/staff time and coordination with broader City planning efforts.

Is this a new project or unfinished project from the prior fiscal year? New Project Name: (No. 6) Historical Resource Collaboration and Partnership Efforts Purpose, Goals, and Deliverables of Project:

Promote collaboration related to San Clemente's historical and cultural resources, including opportunities for interpretation, exhibits, education, preservation awareness, and community partnerships.

Estimated Project Costs. If cost is involved, is it included in the adopted City budget? Unknown Project Timeline (Anticipated Start and End Dates): FY 2026-27 Resources Needed (including Staff hours): Unknown; Committee/staff time and community partners.

Is this a new project or unfinished project from the prior fiscal year? New 172
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: August 18, 2026 Agenda Item: 10D.

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

CITY POSITION ON RESOLUTION BEING CONSIDERED BY THE LEAGUE OF CALIFORNIA CITIES ..body(“CAL CITIES”) AT THE 2026 ANNUAL CONFERENCE Summary:

At the August 4, 2026, regular meeting of the San Clemente City Council, Councilmember Enmeier was selected to serve as the City’s voting delegate at the 2026 Annual General Assembly Meeting of the League of California Cities. At that same meeting, the City Council appointed Mayor Pro Tem Knoblock to serve as the City’s alternate voting delegate. The League of California Cities Conference will be held September 23-25, 2026, in Anaheim and the General Assembly Meeting will take place on September 25, 2026.

The League will consider adopting the following resolution at its General Assembly Meeting:

A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA

CITIES CALLING FOR A WORKING GROUP TO CONSIDER A STATE CONSTITUTIONAL

AMENDMENT OR OTHER FORM OF INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER HOUSING AND LAND USE DECISIONS.

A copy of the 2026 Annual Conference Resolution Packet, that includes background information and League staff analysis on the subject resolution, is included in this report as Attachment 1.

Background:

California cities are responsible for planning for residential growth, adopting general plans and zoning regulations, reviewing development proposals, and providing or coordinating the infrastructure and public services needed to support new housing. Since 2010, the State has enacted more than 500 housing-related laws that have increasingly shifted housing and land use authority away from local governments. These laws have expanded by-right development, limited locally adopted standards and review processes, and established enforcement mechanisms, including the builder’s remedy, that can override local plans and zoning. At the same time, State policies have continued to increase development capacity without always accounting for local infrastructure, public services, fiscal conditions, safety considerations, water availability, wildfire exposure, environmental constraints, and other community-specific factors. As a result, cities may be required to accommodate additional housing while having limited authority or resources to address the infrastructure and service demands associated with that growth.

Local elected officials are directly accountable to residents for balancing housing production with infrastructure capacity, public safety, environmental protection, fiscal sustainability, and other 173
Meeting Date: August 18, 2026 Agenda Item: 10D.

CITY OF SAN CLEMENTE 2
community needs. Cities throughout California—including urban and rural, coastal and inland, and small and large communities—have expressed concerns regarding the continued erosion of local decision-making authority and have sought greater responsiveness from State policymakers. The proposed resolution calls for the League of California Cities to establish a statewide working group to evaluate a potential constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions. The working group would seek to develop a more balanced framework that maintains the State’s role in establishing broad housing goals and enforcing constitutional, civil rights, fair housing, building, life-safety, and environmental requirements, while restoring meaningful local authority for cities to determine how statewide housing objectives are implemented based on local conditions and community needs.

Discussion:

The City Council should consider whether to support or oppose the proposed Resolution at the League of California Cities Annual Conference General Assembly on September 25, 2026.

Council Options:
 Support the proposed League of California Cities Resolution.  Do not support the proposed League of California Cities Resolution.

Environmental Review/Analysis:

This is not a “project” under CEQA.

Fiscal Impact:

There is no fiscal impact associated with supporting or opposing the proposed Resolution.

Potential Action(s):
..recommendation
Determine whether or not to support the following Resolution at the League of California Cities General Assembly Meeting on September 25, 2026:

A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES

CALLING FOR A WORKING GROUP TO CONSIDER A STATE CONSTITUTIONAL

AMENDMENT OR OTHER FORM OF INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER HOUSING AND LAND USE DECISIONS.
..end
Attachment:

1. League of California Cities 2026 Resolution Packet
Notification:

None.
174
2025-2026

CAL CITIES OFFICERS
President
Gabe Quinto
Mayor
El Cerrito
First Vice President
Teresa Acosta
Council Member
Carlsbad
Second Vice President
David Cohen
Council Member
San Jose
Immediate Past President
Lynne B. Kennedy
Mayor Pro Tem,
Rancho Cucamonga
Executive Director
and CEO
Carolyn M. Coleman
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org August 10, 2026
TO: Cal Cities Members
RE: Cal Cities 2026 Resolution Packet
Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit resolutions on issues of importance to cities. This year, Cal Cities received one resolution by the July 25 deadline.

The attached packet contains the proposed resolution, background information, supporting letters from cities and city officials, and an analysis of the resolution by Cal Cities. The packet includes detailed information on the resolution process and the next steps for the resolution.

We encourage each city council to consider the resolution and determine a position so your voting delegate can represent your city’s position on the resolution.

Voting Delegates: City councils must appoint a voting delegate to vote during the General Assembly. Each city may also appoint up to two alternate delegates. If your city has not already done so, please appoint your voting delegate by Tuesday, Sept. 1, 2026. The voting delegate packet contains more information.

The 2026 General Assembly will be held Friday, Sept. 25, at 8:30 a.m. in the Anaheim Convention Center during the Annual Conference and Expo.

For questions about resolutions, voting delegates, or the General Assembly, please contact Zach Seals.

Attachment 1
175
2026
Resolution
Packet
176
2026 Resolution Packet
Information on 2026 Resolutions Process
Consideration by Policy Committee (pre-conference)
Per the Cal Cities bylaws, Cal Cities President Gabe Quinto has referred the submitted resolution to the Housing, Community, and Economic Development Committee. The committee will meet on Thursday, Sept. 17, at 10 a.m. via Zoom to review the resolution and make a recommendation that will be sent to the Resolutions Committee. A public comment period will be held during the meeting. Register for the meeting here.

A list of recommendations the policy committee may make during its meeting is on page two of this packet.

Consideration by Resolutions Committee (during conference) On Thursday, Sept. 24, at 1:00 p.m. the Resolutions Committee will meet to review the resolution and the recommendation of the policy committee.

The Resolutions Committee consist of one representative from each of Cal Cities caucuses, departments, divisions, and policy committees, as well as up to ten additional appointments made by the Cal Cities President. A public comment period will be held during the meeting. Refer to the onsite conference program for the location.

A list of recommendations the Resolutions Committee may make during its meeting is on page two of this packet.

Consideration by the General Assembly (during conference) The General Assembly will convene on Friday, Sept. 25, at 8:30 a.m. to consider any resolutions the Resolutions Committee has forwarded. To vote during the General Assembly, voting delegates must have checked in at the voting delegate booth.

Conference attendees will receive materials for the General Assembly on the evening of Thursday, Sept. 24. For more information on voting and discussion procedures during the General Assembly, see page three of this packet.

Petitioned Resolutions (during conference)
The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. To initiate a petitioned resolution, voting delegates from 10% of member cities must sign the petition. The resolution and signatures are due at least 24 hours before the beginning of the General Assembly. Voting delegates who have checked in at the voting delegate booth can receive more information on petitioned resolutions at the booth onsite. 1 177
2026 Resolution Packet
Policy Committee and Resolutions Committee Actions
The submitted resolution will be heard by the policy committee to which it was assigned, and the Resolutions Committee. The table below shows what recommendations these bodies may make on the resolution.

Policy Committee Actions Resolutions Committee Actions
Approve Approve
Disapprove* Disapprove*
No Action No Action
Amend and approve Amend and approve
Refer to appropriate policy committee
for further study*
Approve as amended
Refer as amended to appropriate
policy committee for further study*
Refer to appropriate policy committee
for further study*
Refer as amended to appropriate
policy committee for further study*
Approve with additional
amendment(s)
Additional amendments and refer to
appropriate policy committee for
further study*
*If a resolution is disapproved or referred for further study by all policy committees to which it is assigned and the Resolutions Committee, it will not proceed to the General Assembly. 2 178
2026 Resolution Packet
General Assembly Voting and Discussion Procedures
Discussion Procedures:

Discussion procedures during the General Assembly are guided by two calendars:
the Consent Calendar and the Regular Calendar. As seen below, resolutions are calendared by the recommendations they receive from policy committees and the Resolutions Committee.

For General Resolutions:

Policy Committee
Recommendation
Resolutions Committee
Recommendation Calendar
Approve Approve Consent Calendar
Approve Disapprove or refer Regular Calendar
Disapprove or refer Approve Regular Calendar
Disapprove or refer Disapprove or refer Does not proceed to General Assembly
For Petitioned Resolutions:

Policy Committee
Recommendation Resolutions Committee Action Calendar
N/A
Approve Regular Calendar
Disapprove or Refer Regular Calendar
Disqualified Does not proceed to General
Assembly
Items on the Consent Calendar will be presented as one motion during the General Assembly from the Resolutions Committee chair. Unless an item on the Consent Calendar is set aside by the majority of the General Assembly, a vote will be taken on the whole calendar. If an item is set aside, it will be opened for discussion, followed by a vote.

Items on the Regular Calendar will be presented individually by the Resolutions Committee chair. After a recommendation is presented by the Resolutions Committee chair, the resolution will be opened for discussion by the General Assembly. A vote will take place following discussion.

Voting Procedures:

Per Cal Cities Bylaws Article XII, Sec. 2, all votes will be conducted by voice vote first. If the presiding official cannot determine the outcome, a vote will be taken by an alternative method, typically a raise of voting cards by voting delegates. A roll call vote may be called for by delegates of ten percent or more of the General Assembly.
3 179
2026 Resolution Packet
2026 Resolution

1. Resolution No. 1 submitted by City of Murrieta
• Letters of concurrence submitted by:
i. City of Banning;
ii. City of Calimesa;
iii. City of Canyon Lake;
iv. City of Moreno Valley;
v. City of Norco;
vi. City of Torrance;
vii. Crystal Ruiz, Mayor, City of San Jacinto;
viii. Jessica Alexander, Mayor, City of Temecula
• Referred to Housing, Community, and Economic Development Committee
• Policy Committee Recommendation:
• Resolutions Committee Recommendation:
4 180
2026 Resolution Packet
Resolution No. 1
Submitted by City of Murietta
5 181
2026 Resolution Packet

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES

CALLING FOR A WORKING GROUP TO CONSIDER A STATE CONSTITUTIONAL

AMENDMENT OR OTHER FORM OF INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER

HOUSING AND LAND USE DECISIONS
Source: City of Murrieta
Concurrence of five or more cities/city officials
Cities/city officials: City of Banning; City of Calimesa; City of Canyon Lake; City of Moreno Valley; City of Norco; City of Torrance; Crystal Ruiz, Mayor, City of San Jacinto; Jessica Alexander, Mayor, City of Temecula
Referred to: Housing, Community, and Economic Development Policy Committee WHEREAS, California cities have historically been responsible for adopting general plans and zoning regulations, reviewing housing development proposals, and providing or coordinating the streets, water, wastewater, public safety, parks, transportation, and other infrastructure and services necessary to support responsible, environmentally sound, and well-planned residential growth; and
WHEREAS, the League of California Cities is dedicated to protecting and expanding local control for municipalities across the state to ensure their orderly growth and development; and
WHEREAS, the League of California Cities recognizes that local zoning is a primary function of cities and an essential component of home rule, and that a city’s general plan should guide its land use planning and strategic decision-making free from pre-emption by the state; and
WHEREAS, increasingly prescriptive statewide housing mandates and development approval requirements can override locally adopted plans, zoning standards, and public review procedures without adequately accounting for differences that exist in each unique jurisdiction in infrastructure capacity, water availability, wildfire and evacuation risks, environmental constraints, fiscal impacts, public service needs, and community priorities; and
WHEREAS, California’s housing goals can be more effectively advanced through state funding, streamlined environmental requirements, and voluntary partnerships that support housing production while preserving the authority of locally elected officials to determine how and where housing is best planned and approved; NOW, THEREFORE, BE IT RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in Anaheim, California, on September 25, 2026, that the League of California Cities support the development and advancement of a state constitutional amendment or other legislative, policy, or ballotbased strategies that restore and strengthen local authority over housing and land use matters within municipal boundaries, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications; and
6 182
2026 Resolution Packet
BE IT FURTHER RESOLVED, that any constitutional amendment or alternative strategy should preserve the State’s authority to establish broad statewide housing goals and enforce constitutional and civil rights, fair housing requirements, building and life-safety standards, and generally applicable environmental protections, while protecting cities from state actions that compel, through funding conditions or state law, the approval of housing developments that are inconsistent with locally adopted requirements; override local zoning or density standards; or invalidate locally adopted housing or land use decisions when a city has planned in good faith to accommodate its regional housing needs allocation and maintains adequate capacity for housing at all income levels; and BE IT FURTHER RESOLVED, that the League of California Cities consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters including but limited to: conducting appropriate legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for; the November 2030 General Election, or within another reasonable time frame as determined by the working group.
7 183
2026 Resolution Packet
Resolution No. 1: Background
Information
8 184
2026 Resolution Packet
Background Information for Resolution
Source: City of Murrieta
Background:

California cities are responsible for planning residential growth, adopting general plans and zoning regulations, reviewing development proposals, and providing or coordinating the infrastructure and public services necessary to support new housing. Since 2010, the State has enacted more than 500 housing-related laws that have increasingly shifted housing and land use authority away from local governments. These laws have expanded by-right development, limited locally adopted standards and review processes, and established enforcement mechanisms, including the builder’s remedy, that may override local plans and zoning. Although these measures are frequently presented as solutions to housing affordability, many increase development capacity or restrict local review without delivering the meaningful production of housing needed to address the housing crisis.

At the same time, the State has continued to prioritize increased development capacity without adequately accounting for the infrastructure, public services, economic realities, and safety measures necessary to support housing growth.

State mandates often fail to reflect local conditions, including roadway and utility capacity, water availability, wildfire exposure, environmental limitations, fiscal impacts, and the availability of essential services. Cities are consequently required to accommodate additional housing while receiving no funding or assistance to address the resulting infrastructure and service demands.

Local elected officials are directly accountable to the residents who experience the effects of development decisions and are responsible for balancing housing production with infrastructure capacity, public safety, environmental protection, fiscal sustainability, and community needs. Cities of all types in California have been grappling with this dynamic, ranging from urban to rural, coastal to inland, small to large, northern to southern, voicing concerns to legislative representatives with minimal responsiveness. This is an issue of statewide concern that needs the strength and diversity of the League of California Cities to pursue a long-term solution.

The proposed resolution directs the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions. The working group would be tasked with developing a more balanced framework that preserves the State’s role in establishing broad housing goals and enforcing constitutional, civil rights, fair housing, building, life-safety, and environmental requirements, while restoring meaningful local authority to allow cities to determine how statewide housing 9 185
2026 Resolution Packet
objectives should be implemented in a manner that reflects local conditions and community priorities while continuing to support responsible housing production.

As the primary statewide organization representing California cities, the League is uniquely positioned to lead this effort. Its established policy, legal, legislative, communications, and advocacy networks enable it to convene municipalities, evaluate potential strategies, conduct legal and fiscal analyses, build consensus, engage stakeholders, and coordinate with statewide decision-makers. League leadership would help ensure that any recommendation reflects the collective interests of California municipalities and would provide the credibility, organizational capacity, and statewide reach necessary to advance a viable strategy.
10 186
2026 Resolution Packet
Resolution No. 1: Letters of
Concurrence
11 187
12 188
13 189
July 23, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and

25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Canyon Lake, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Arron Brown
City Manager
City of Canyon Lake
14 190
July 23, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches to address increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Moreno Valley, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Brian Mohan
City Manager
City of Moreno Valley

15 191
July 22, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority
Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of the Norco, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Kevin Bash
City Council Member
(951) 768-8981
16 192
17 193
18 194
19 195
20 196
July 23, 2026
Mr. Gabe Quinto, President
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for the City of Murrieta's Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto:

I am writing in my individual capacity as Mayor of the City of Temecula to express my strong support for the City of Murrieta's proposed resolution for consideration by the General Assembly of the League of California Cities at the 2026 Annual Conference.

The proposed resolution presents an important opportunity to thoughtfully evaluate the appropriate balance between California's statewide housing objectives and the constitutional principle of local governance. Establishing a statewide working group to examine a potential constitutional amendment, legislative reforms, or other policy initiatives will provide a meaningful forum to assess how local authority over housing and land use decisions can be strengthened while continuing to address the State's housing challenges.

Cities are uniquely positioned to understand the needs, opportunities, and constraints of their communities. Local elected officials are accountable to the residents they serve and are best equipped to make land use decisions that reflect a community's character, infrastructure capacity, economic development goals, environmental stewardship, and long-term vision. Equally important, local governments bear the primary responsibility for protecting public safety. Decisions regarding housing density, transportation, emergency access, wildfire preparedness, evacuation routes, police and fire service capacity, water availability, and critical infrastructure are inherently local matters that require the knowledge and judgment of those who serve their communities every day.

While the State has an important role in addressing California's housing needs, a collaborative approach that respects local expertise and preserves meaningful local discretion will produce stronger, safer, and more sustainable communities. The proposed working group offers an opportunity to evaluate policies that achieve these shared objectives while restoring an appropriate balance between state direction and local authority.
21 197
Mr. Gabe Quinto, President
League of California Cities
July 23, 2026

Page 2 ends

San Clemente City CouncilAugust 18, 2026

San Clemente City Council
August 18, 2026