Agenda packet — Seal Beach City Council, January 26, 2026 (part 9 of 9)

4. Approving Budget Amendment BA #26-07-01 in the amount of $19,375.00; and,

5. Authorizing the City Manager to surplus existing vehicles upon the completion of the new vehicle and equipment purchases and upfitting.

BACKGROUND AND ANALYSIS:

On January 27, 2025, a Fleet Modernization Analysis Report (Report) was presented to City Council providing a comprehensive fleet modernization strategy and criteria for the prioritization of unit replacement to increase efficiency and reduction of costs over the lifecycle of the unit. The criteria include, but are not limited to, vehicle age, maintenance repairs and history, mileage milestone, and usage case.

Based on the Report’s criteria, Police Interceptor Utility Vehicle Units #4107, #4114, Police Department Watch Commander’s Unit #4111, and Transit Cargo Van PW Unit #06 are recommended for replacement. To replace these units, staff will utilize a cooperative purchase contract with Sourcewell, Master Vehicle Contract #091521-NAF.

Staff solicited fleet replacement quotes through Sourcewell, as permitted by City of Seal Beach Municipal Code Section 3.20.025 (D). This code provides for an exemption from the City’s competitive bidding requirements for purchases made through a cooperative purchase program. Pricing under cooperative purchasing programs is competitively solicited and generally ensures best pricing by leveraging the volume of participating members region and/or nationwide. The units below will utilize the corresponding cooperative purchasing agreements for the replacement units:

Unit
Number Vendor
Cooperative Purchase
Contract
4107 National Auto Fleet Group #091521-NAF
4111 National Auto Fleet Group #091521-NAF
4114 National Auto Fleet Group #091521-NAF
06 National Auto Fleet Group #091521-NAF
The Police Department pursuit vehicles will require upfitting customization to meet the respective department’s requirements, such as highly specialized law enforcement and communication equipment. It is recommended that City Council approve a sole-source expenditure in the amount of $75,459.54 with High Standard Automotive, LLC, as permitted by Seal Beach Municipal Code Section

3.20.025(B), which provides that “purchase of a commodity that can only be obtained by only one vendor” is exempt form City’s bidding procedures.

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ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval the proposed administrative action will not have a significant impact on the environment.

LEGAL ANALYSIS:

The City Attorney has approved the resolution as to form.

FINANCIAL IMPACT:

The following is a price breakdown of each of the units described above quote obtained through Sourcewell:

Unit Number Description Cost
4107 2026 Police Interceptor Utility - Ford $ 61,616.52 Upfitting Costs $ 18,268.24
4114 2026 Police Interceptor Utility - Ford $ 61,616.52 Upfitting Costs $ 18,268.23
4111 2026 Watch Commander Tahoe - Chevrolet $ 59,977.60 Upfitting Costs $ 26,484.20
06 2026 Transit Cargo Van - Ford $ 53,920.99
Upfitting Costs $ 12,438.87
TOTAL COST $ 312,591.17
Budget Amendment BA #26-07-01 will allocate $19,375.00 from the 601-000-0000-47900 Sales of Surplus Vehicle Fund to the Vehicle Replacement Fund Balance:

Description Account Revised/Adopted
Budget Proposed Budget Budget (diff)
Amendment
Vehicles 601-500-0980-53600 $ 306,800.00 $ 326,175.00 $ 19,375.00 Funds will be expensed from the following accounts:

Account Description Amount
601-500-0980-53600 Vehicles $312,591.17
Total $312,591.17

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Any unspent funds will be returned to the original funding source.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7728:

1. Authorizing the purchase of four (4) replacement vehicles for the City's fleet from National Auto Fleet Group pursuant to the cooperative purchase contract with Sourcewell, Master Vehicle Contract #091521-NAF, for a notto-exceed total cost of $237,131.63, in accordance with the following breakdown:
a) Police Interceptor Utility (PIU) Vehicle Unit #4107 for $61,616.52; and,
b) PIU Vehicle Unit #4114 for $61,616.52; and,
c) Police Watch Commander Unit #4111 for $59,977.60; and, d) Public Works Vehicle Unit #06 for $53,920.99; and,

2. Authorizing and directing the City Manager to approve purchase orders and any necessary related documents for the vehicle purchases; and,

3. Authorizing and directing the City Manager to approve payments, purchase orders and necessary related documents on behalf of the City to HiStandard Automotive, LLC, for vehicle upfitting work for the abovereferenced four (4) vehicles pursuant to Seal Beach Municipal Code Section

3.20.025(B) in the not-to-exceed amount of $75,459.54, in accordance with the following breakdown:
a) Police Interceptor Utility (PIU) Vehicle Unit #4107 for $18,268.24; and,
b) PIU Vehicle Unit #4114 for $18,268.23; and,
c) Police Watch Commander Unit #4111 for $26,484.20; and, d) Public Works Vehicle Unit #06 for $12,438.87; and,

4. Approving Budget Amendment BA #26-07-01 in the amount of $19,375.00; and,

5. Authorizing the City Manager to surplus existing vehicles upon the completion of the new vehicle and equipment purchases and upfitting.

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SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, City Manager Prepared by: Sean C. Low, Deputy Public Works Director – Maintenance/Utilities ATTACHMENTS:

A. Resolution 7728
RESOLUTION 7728

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

APPROVING AND AUTHORIZING BUDGET AMENDMENT BA
#26-07-01 AND THE PURCHASE FOR REPLACEMENT OF CITY

VEHICLES
WHEREAS, the City owns, operates, and maintains a fleet of vehicles; and, WHEREAS, on January 27, 2025, a Citywide Fleet Modernization Analysis Report (Report) was published and presented to the City Council, detailing a comprehensive fleet replacement and modernization strategy; and, WHEREAS, the Report identifies specific City vehicles for replacement based on general wear and tear, years in service, mileage milestone, or vehicles deemed out of commission; and,
WHEREAS, Police Interceptor Utility (PIU) Vehicle Units #4107 and #4114, Police Watch Commander Unit #4111, and Public Works Unit #06 are recommended for replacement per the Report’s replacement criteria; and, WHEREAS, Seal Beach Municipal Code Section 3.20.025(D) provides an exemption from competitive bidding requirements for purchases made through a cooperative purchasing program; and,
WHEREAS, in accordance with the Seal Beach City Charter and Seal Beach Municipal Code Sections 3.20.025(D) and 3.20.025(B), in order to obtain the replacement vehicles, the City solicited quotes for the purchase of the replacement vehicles from National Auto Fleet Group pursuant to the Cooperative Purchase Contract with Sourcewell, master vehicle contract #091521-NAF, and also determined that the retrofitting of the fleet can be obtained only from Hi-Standard Automotive, LLC in order to ensure the standardized retrofitting of the vehicles and equipment.

NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine and order as follows:

Section 1. The City Council hereby approves and authorizes the purchase of four (4) replacement vehicles for the City’s fleet from National Auto Fleet Group pursuant to the Cooperative Purchase Contract with Sourcewell, master vehicle contract #091521-NAF, for a not-toexceed total cost of $237,131.63, in accordance with the following breakdown:
a) Police Interceptor Utility (PIU) Vehicle Unit #4107 for $61,616,52; and,
b) PIU Vehicle Unit #4114 for $61,616.52; and,
c) Police Watch Commander Unit #4111 for $59,977.60; and, d) Public Works Vehicle Unit #06 for $53,920.99.

Section 2. The City Council hereby directs the City Manager to approve purchase orders and any necessary related documents on behalf of the City, for the new vehicles.

Section 3. The City Council hereby authorizes the City Manager to approve payments, purchase orders and necessary related documents on behalf of the City to Hi-Standard Automotive, LLC, for vehicle upfitting work pursuant to Seal Beach Municipal Code Section

Section 4. The City Council hereby approves Budget Amendment BA #26-07- 01 allocating $19,375.00 from the 601-000-0000-47900 Sales of Surplus Vehicle Fund to the Vehicle Replacement Fund Balance as follows:

Description Account Revised/Adopted
Budget
Proposed
Budget
Budget (diff)
Amendment
Vehicles 601-500-0980-53600 $ 306,800.00 $ 326,175.00 $ 19,375.00 Section 5. The City Council hereby authorizes the City Manager to surplus existing vehicles and equipment upon the completion of the new vehicle and equipment purchases upfitting.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of January 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7728 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of January 2026.

Gloria D. Harper, City Clerk

Agenda Item H

AGENDA STAFF REPORT
DATE: January 26, 2026
TO: Honorable Mayor and Members of the City Council
THRU: Patrick Gallegos, City Manager
FROM: Shaun Temple, Interim Community Development Director SUBJECT: Consideration of a Resolution of the Seal Beach City Council Making Findings that the Previously Adopted
Housing Element and Zoning Code Are Consistent with
Certain State Housing Laws; No Amendment to the Housing Element or Municipal Code Are Proposed by this
Resolution.
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7729 to find that the Seal Beach Zoning Code is consistent with government code section 65583.2, subdivisions (c), (h), and (i) in meeting affordability requirements for non-discretionary review in which housing developments with 20 percent or more of the units are affordable to lowerincome households; and finding that the adopted Housing Element is consistent with government code section 65583.2 subdivision (g)(2) in making the required findings that substantial evidence was provided that the existing uses of nonvacant opportunity sites are not impediments to the City meeting its Regional Housing Needs Allocation (RHNA).

BACKGROUND AND ANALYSIS:

On October 27, 2025, the City Council adopted Resolution 7705, certifying the Final Environmental Impact Report (SCH No. 2023110425) under the California Environmental Quality Act; introduced Ordinance 1721, Amending Title 11 (Zoning Code) of the Seal Beach Municipal Code establishing the Mixed Commercial/Residential High-Density Zone and related development standards; introduced Ordinance 1722 amending the official Zoning Map of the City of Seal Beach; introduced Ordinance No. 1723 amending the Main Street Specific Plan; adopted Resolution 7707 overruling the Orange County Airport Land Use Commission’s determination that the 2021-2029 Housing Element update is inconsistent with the 2017 Joint Forces Training Base Los Alamitos Airport Environs Land Use Plan, and adopted Resolution 7706 adopting the 2021-2029 Housing Element Update. The three ordinances were subsequently adopted at the Council’s next meeting. The aforementioned adopted ordinances fulfilled the various housing element implementation programs designed to meet the City’s Regional Housing Needs Allocation (RHNA).

Staff forwarded the adopted Housing Element to the State Department of Housing and Community Development (HCD) as required by State law. In addition to the Housing Element, staff also forwarded the aforementioned Ordinance Numbers 1721, 1722 and 1723 to HCD.

On December 24, 2025, HCD sent a letter (see Attachment B) to the City reporting on the results of its review of all the documents but particularly the Housing Element. HCD found the revised draft Housing Element met the statutory requirements of State Housing Element Law. However, HCD withheld its final determination that the Housing Element is in substantial compliance due to the following:

1. The Ordinances do not clearly provide a process for non-discretionary review in which housing developments with 20 percent or more of the units are affordable to lower-income households (Government Code Section 65583.2(h)).

2. Since the Housing Element relies on nonvacant sites to accommodate 50 percent or more of the lower-income regional housing needs allocation (RHNA), the City council must make findings based on substantial evidence that the existing uses on the nonvacant sites are not an impediment and will likely discontinue in the planning period pursuant to Government Code section 65583.2, subdivision (g)(2).

Regarding Item #1, the adopted ordinances allow all residential developments by right whether the residential project consists of entirely market rate units or contains any number of affordable units. Therefore, the Zoning Code already provides a by right process for affordable housing projects. However, HCD found that the City must explicitly state that projects with 20 percent or more of the units affordable to lower-income households are allowed by right to ensure affordable housing projects will not be subject to discretionary review and will be allowed by right. In response to HCD’s comment and in consultations with HCD, the proposed Resolution would address this matter by stating clearly that residential projects with at least 20 percent or more units affordable to lower income households will be considered a by right development per Government Code Section 65583.2, Subdivisions (c), (h), and (i), on-sites identified in Table B-7 (Rezone Sies) of the 2021-2029 Housing Element which have been rezoned Mixed Commercial/Residential High Density and on all other properties currently zoned Residential Medium Density and Residential High Density. This results in no change to the previously adopted process for such projects.

Regarding Item #2: When approving a housing element, per state law, the City Council must include findings regarding nonvacant sites that are identified in the housing element as sites that could accommodate lower-income housing units.

The findings, based on substantial evidence, must state that the existing uses on nonvacant sites are not an impediment to housing development. These findings are in the Housing Element as part of the narrative for each housing opportunity site. However, HCD has requested that the resolution adopting the Housing Element must incorporate the same finding. In response to this item, the proposed resolution contains the following finding:

Existing uses on sites identified to accommodate affordable housing are not likely to constitute an impediment to additional residential development during the planning period as residential development will be accommodated as infill development on parking lots and not require existing commercial uses to cease or discontinue.

This finding essentially incorporates the previously adopted finding in the Housing Element. By adopting the proposed resolution, the City would be addressing the two items raised by HCD in its December 24, 2025, letter. HCD has reviewed the proposed resolution and has confirmed that, if adopted, it will address HCD’s remaining two comments so that the Housing Element can be certified as substantially compliance with State law.

ENVIRONMENTAL IMPACT:

The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity described in this Resolution is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Furthermore, on October 27, 2025, the City Council certified an Environmental Impact Report for the Sixth Cycle 2021-2029 Housing Element, and the amendments to the Zoning Code, Zoning Map and Main Street Specific Plan in order to meet the City’s Regional Housing Needs Assessment (RHNA) allocation and requirements outlined in the 6th Cycle Housing Element Update.

LEGAL ANALYSIS:

The City Attorney has reviewed the proposed resolutions and approved as to form.

FINANCIAL IMPACT:

There is no fiscal impact related to this item.

STRATEGIC PLAN:

Adoption of this Resolution relates to the previously adopted Housing Element and the Zoning measures which were identified as a Council priority.

RECOMMENDATION:

SUBMITTED BY: NOTED AND APPROVED:

Shaun Temple Patrick Gallegos
Shaun Temple, Interim Community
Development Director
Patrick Gallegos, City Manager
ATTACHMENTS:

A. Resolution 7729
B. HCD December 24, 2025 Letter
1 RESOLUTION 7729

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

ESTABLISHING A POLICY FOR THE PROCESSING OF

SPECIFIC RESIDENTIAL DEVELOPMENT PROJECTS

CONSISTENT WITH GOVERNMENT CODE SECTION
65583.2, SUBDIVISIONS (C), (H), AND (I) AND FINDING

THAT SITES IDENTIFIED TO BE REZONED ARE

CONSISTENT WITH GOVERNMENT CODE SECTION
65583.2 SUBDIVISION (G)(2)
WHEREAS, on October 27, 2025, the City Council adopted Resolution No. 7705, certifying the Final Environmental Impact Report (SCH No. 2023110425) under the California Environmental Quality Act; adopting Ordinance 1721, Amending Title 11 (Zoning Code) of the Seal Beach Municipal Code to establish the Mixed Commercial/Residential High-Density Zone and related development standards (Housing Element Implementation Program to meet the City’s Regional Housing Needs Allocation (RHNA)); adopting Ordinance 1722 amending the official Zoning Map of the City of Seal Beach (Housing Element Implementation Program to meet the City’s Regional Housing Needs Allocation (RHNA)); adopting Ordinance 1723 amending the Main Street Specific Plan (Housing Element Implementation Program to meet the City’s Regional Housing Needs Allocation (RHNA)) to allow residential uses subject to limitations; adopting Resolution 7707 overruling the Orange County Airport Land Use Commission’s determination that the 2021-2029 Housing Element update is inconsistent with the 2017 Joint Forces Training Base Los Alamitos Airport Environs Land Use Plan, and adopting Resolution 7706 adopting the 2021-2029 Housing Element Update, and, WHEREAS, Government Code Section 65583.2 requires that specific residential development projects shall be allowed through a by-right process on properties identified to accommodate the City’s lower income RHNA; and,
WHEREAS, the adopted Ordinance 1721 and Ordinance 1723 allow all residential development projects through a by-right process both on properties identified to accommodate the City’s lower income RHNA and on properties that are not identified to accommodate the City’s lower income RHNA; and,
WHEREAS, the Housing Element relies on nonvacant sites to accommodate 50 percent or more of the lower-income RHNA, therefore, Government Code Section 65583.2, subdivision (g)(2) requires that the City make findings based on substantial evidence that the existing uses on the nonvacant sites, identified in the Housing Element, are not an impediment to developing housing during the planning period.

NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. The above recitals are true and correct and are incorporated by this reference.
2 Section 2. The City Council finds that Ordinance 1721, Ordinance 1723, and the City’s existing zoning regulations allow residential uses, including residential projects with at least 20 percent or more units affordable to lower income households through a by right process per Government Code Section 65583.2, Subdivisions (c), (h), and (i), on sites identified in Table B-7 (Rezone Sites) of the 2021-2029 Housing Element which have been rezoned Mixed Commercial/Residential High Density, on all other properties currently zoned Residential Medium Density and Residential High Density, and in the Main Street Specific Plan area on the second floor when street facing. For this purpose, “by-right” means that the City shall not require a Conditional Use Permit, Planned Unit Development Permit or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.

Section 3. The City Council finds, pursuant to Government Code Section 65583(g)(2), based on substantial evidence set forth in Section B.2 (Future Residential Development Potential), particularly subsections B.2.4, and B.2.5 of the 2021-2029 Housing Element, that any existing uses on sites identified to accommodate affordable housing are not likely to constitute an impediment to additional residential development during the planning period as residential development will be accommodated as infill development on parking lots and not require existing commercial uses to cease or discontinue.

Section 4. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity described in this Resolution is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Furthermore, on October 27, 2025, the City Council certified an Environmental Impact Report for the Sixth Cycle 2021-2029 Housing Element, and the amendments to the Zoning Code, Zoning Map and Main Street Specific Plan in order to meet the City’s Regional Housing Needs Assessment (RHNA) allocation and requirements outlined in the 6th Cycle Housing Element Update.

Section 5. Severability: If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.
3 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of January 2026 by the following vote:

AYES: Council Members: _________________________________________ NOES: Council Members: _________________________________________ ABSTAIN: Council Members: _________________________________________ ABSENT: Council Members: _________________________________________ _____________________________
Lisa Landau, Mayor
ATTEST:
________________________________
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7729 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of January 2026.
________________________________
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
December 24, 2025
Patrick Gallegos, City Manager
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
Dear Patrick Gallegos:

RE: City of Seal Beach’s 6th Cycle (2021-2029) Adopted Housing Element and Rezone
Thank you for submitting the City of Seal Beach’s (City) housing element that was adopted October 27, 2025 and received October 29, 2025. In addition, the California Department of Housing and Community Development (HCD) received Ordinance Numbers 1721,1722 and 1723 (Ordinances). Pursuant to Government Code section 65585, HCD is reporting the results of its review.

On October 17, 2024, HCD found the revised draft housing element met statutory requirements of State Housing Element Law (Gov. Code, § 65580 et seq). The adopted element is substantially the same as the revised draft and as a result, the element continues to meet statutory requirements of State Housing Element Law. However, the element cannot be found in substantial compliance until the following are complete:
• Rezoning: As noted in the prior review, pursuant to Senate Bill 197 (Chapter 70, Statutes of 2022), as the City did not adopt a compliant housing element within one year of the statutory deadline (October 15, 2021), HCD cannot find the element in compliance until rezones to make prior identified sites available or accommodate a shortfall of sites are completed and meet all statutory requirements pursuant to Government Code sections 65583, subdivision (c)(1)(A) and 65583.2, subdivisions (c), (h) and (i). While the Ordinances have been adopted and meet most of the statutory requirements, the Ordinances do not meet all statutory requirements pursuant to Government Code section 65583.2, subdivision (h). Specifically, the Ordinances do not meet affordability requirements for non-discretionary review in which housing developments with 20 percent or more of the units are affordable to lower-income households (Gov.

Code § 65583.2 (h)). Once the City amends the rezoning to meet all statutory requirements, a resolution or ordinance and other pertinent documentation should be transmitted to HCD. HCD will review the documentation and issue Patrick Gallegos, City Manager

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correspondence identifying the updated status of the City’s housing element compliance.
• Nonvacant Sites Findings: As noted in HCD’s October 17, 2024 review, since the element relies on nonvacant sites to accommodate 50 percent or more of the lower-income regional housing needs allocation (RHNA), requirements are triggered to make findings based on substantial evidence (as part of an adoption resolution) that the existing use is not an impediment and will likely discontinue in the planning period pursuant to Government Code section 65583.2, subdivision (g)(2). Resolution 7706 that adopts the housing element does not make the necessary findings and the City should submit a new or revised resolution as part of future submittals. For additional information, please see HCD’s Sites Inventory Guidebook (p. 26) at https://www.hcd.ca.gov/community-development/housingelement/housing-elementmemos/docs/sites_inventory_memo_final06102020.pdf.

The element will substantially comply with State Housing Element Law once rezones are completed to meet all statutory requirements, findings have been adopted and documentation has been submitted to and reviewed by HCD to comply with the above requirements pursuant to Government Code section 65585.

As a reminder, the City’s 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. HCD encourages the City to expeditiously amend its rezoning, adopt findings as described above and submit documentation to HCD to regain housing element compliance.

Also, the City must continue timely and effective implementation of all programs including but not limited to the following:
• Program 1c: Promote Housing Incentives
• Program 1h: Accessory Dwelling Units
• Program 1j: Accessory Dwelling Unit Monitoring
• Program 1k: Zoning for Special Needs
• Program 1o: Expedited Processing for Maps with Affordable Units • Program 1r: Main Street Specific Plan
• Program 2a: Density Bonus
• Program 2c: Affordable Housing Resources
• Program 2g: Commercial Density Bonus
• Program 3c: Local Coastal Program
• Program 3g: Residential Care Facilities
• Program 3h: Remove Minimum Unit Size Requirements
• Program 3i: Update Findings to Ensure Objectivity
• Program3j: Reduce Parking Requirements
• Program 3k: Remove Conditional Use Permit Requirements for SROs Patrick Gallegos, City Manager

Page 2 ends

• Program 5e: Reasonable Accommodation
• Program 5f: Environmental Justice Element
• Program 5j: Fair Housing Mobility Program
The City must monitor and report on the results of these and other programs through the annual progress report, required pursuant to Government Code section 65400.

Please be aware, Government Code section 65585, subdivision (i) grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities program, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Land Use and Climate Innovation at:
https://www.lci.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the hard work and commitment of the housing element team throughout the housing element update and review. The City has successfully addressed most statutory requirements and made tremendous progress toward substantial compliance. HCD looks forward to expeditiously working with the City to achieve substantial compliance with State Housing Element Law, including providing technical assistance on amendments to rezoning. If you have any questions, please contact, Reid Miller of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Agenda Item I

AGENDA STAFF REPORT
DATE: January 26, 2026
TO: Honorable Mayor and City Council
FROM: Patrick Gallegos, City Manager
SUBJECT: Determination of Exemption from Public Bidding and Approving and Authorizing Professional Services
Agreements with Costangy, Brooks, Smith & Prophete and
Cybereason for Legal and Forensic Cybersecurity Services, Respectively
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7730:

1. Declaring that Professional Services Agreements with Costangy, Brooks, Smith & Prophete and Cybereason for legal and forensic cybersecurity services are necessary for the preservation of the property of the City per City Charter Section 1010, and Seal Beach Municipal Code Chapter 3.25, and finding that the Agreements are therefore exempt from bidding requirements; and,

2. Ratifying the City Manager’s execution of the Professional Services Agreements with Costangy, Brooks, Smith & Prophete, and Cybereason; and,

3. Approving Budget Amendment BA #26-07-02 in the amount of $85,000.

BACKGROUND AND ANALYSIS:

The City relies on technology and communication to carry out City operations. As cyber threats can pose a serious threat to municipalities and can cause significant financial loss and service disruption, proper cybersecurity risk and resilience evaluations are urgent and necessary for the preservation of City property.

The City recently experienced a cybersecurity incident that is being investigated by the City’s forensic cyber security consultant, Cybereason, and an outside law firm, Costangy, Brooks, Smith, & Prophete (Constangy). Both of these firms were recommended by the California Joint Powers Insurance Authority (CJPIA) and the cyber insurance provider, Great American.

Page 2 ends

Costangy’s legal services are fully covered by Great American, without any deductible. Cybereason’s forensic services are also covered by the City’s policy, subject to a deductible of $100,000. CJPIA will pay for Cybereason’s services and bill the City for amounts subject to the deductible. The estimated cost to the City for Cybereason’s services is in the amount of $70,000.

On advice from the City’s insurer, Great American, the City Manager has executed the Cybereason and Costangy contracts due to the urgency of investigating the recent cyber security incident. The purpose of this action is to ratify those actions.

In addition, Costangy and Great American have recommended that the City retain another firm to advise on on-demand threat engagement to protect the City’s resources. This additional service will be within the City Manager’s contract signing authority at an estimated amount of $12,000.

ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of an Agreements with Cybereason and Costangy will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has approved the agreements and resolution as to form.

FINANCIAL IMPACT:

Budget Amendment BA #26-07-02 will allocate $85,000 from the General Fund to account 101-150-2020-51250 for the Cybereason contract and the additional services. Staff will be pursuing insurance recovery, as applicable, for expenditures related to this item.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7730:

1. Declaring that Professional Services Agreements with Costangy, Brooks, Smith & Prophete and Cybereason for legal and forensic cybersecurity Description Account Revised/Adopted
Budget
Proposed
Budget
Budget (diff)
Amendment
Office and Technology Citywide 101-150-2020-51250 $ 781,822.00 $ 866,822.00 $ 85,000.00

Page 3 ends

services are necessary for the preservation of the property of the City per City Charter Section 1010, and Seal Beach Municipal Code Chapter 3.25, and finding that the Agreements are therefore exempt from bidding requirements; and,

2. Ratifying the City Manager’s execution of the Professional Services Agreements with Costangy, Brooks, Smith & Prophete, and Cybereason; and,

3. Approving Budget Amendment BA #26-07-02 in the amount of $85,000.

NOTED AND APPROVED:

Patrick Gallegos
Patrick Gallegos, City Manager
ATTACHMENTS:

A. Resolution 7730
B. Costangy Professional Services Agreement
C. Cybereason Professional Services Agreement
RESOLUTION 7730

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL RATIFYING

THE EXECUTION OF PROFESSIONAL SERVICES AGREEMENTS

WITH COSTANGY, BROOKS, SMITH & PROPHETE AND
CYBEREASON; AND APPROVING BUDGET AMENDMENT BA #26-
07-02 TO ALLOCATE $85,000 FOR FORENSIC CYBERSECURITY

SERVICES
WHEREAS, the City of Seal Beach relies on technology and communication to carry out City operations; and,
WHEREAS, the City Manager, together with the City’s cybersecurity insurer, determined that forensic and legal cybersecurity services (Services) were necessary to preserve City operations; and,
WHEREAS, the Services are covered by the City’s cybersecurity liability policy, with legal support fully covered and forensic support subject to the City’s deductible; and, WHEREAS, the City’s Charter Section 1010 authorizes the City to dispense with public bidding as necessary for the preservation of property, and Seal Beach Municipal Code Chapter 3.25 also exempts professional services and emergency projects from bidding requirements; and,
WHEREAS, due to the immediate need to implement the Services before the next Council meeting due to a potential cyber incident, the City Manager executed contracts with Costangy, Brooks, Smith & Prophete (Costangy) and Cybereason on advice from the City’s insurer; and,
WHEREAS, Costangy’s legal services are fully covered by the City’s insurer, without any deductible, and Cybereason’s forensic services are also covered by the City’s policy, subject to a deductible of $100,000 and at an estimated cost to the City of $70,000; and, WHEREAS, Costangy and Cyberreason are qualified to perform the Services; and, WHEREAS, on January 6, 2026, the City Manager executed contracts with the two (2) firms, and the City Council is now ratifying the execution.

NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. Based on the recitals set forth above, the City Council hereby finds that the Professional Services Agreement with Costangy and Cybereason are urgently necessary for the preservation of property of the City, and finding that the Agreement to be exempt from public bidding requirements.

Section 2. The City Council ratifies the City Manager’s execution of the Agreements with Costangy and Cybereason on behalf of the City.

Section 3. The City Council hereby approves a Budget Amendment #26-07-02 allocating $85,000 to 101-150-2020-51250, as follows:

PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of January 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7730 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of January 2026.

Gloria D. Harper, City Clerk
Description Account Revised/Adopted
Budget
Proposed
Budget
Budget (diff)
Amendment
Office and Technology Citywide 101-150-2020-51250 $ 781,822.00 $ 866,822.00 $ 85,000.00

STANDARD TERMS OF ENGAGEMENT FOR LEGAL SERVICES
This statement sets forth the standard terms of our engagement as your lawyers. Unless modified in writing by mutual agreement or superseded by contrary controlling law, these terms will be an integral part of our agreement with you. Therefore, we ask that you review this statement carefully and contact us promptly if you have any questions. We suggest that you retain this statement in your file. When the terms “firm,” “our,” “us,” and “we” are used below, they refer to Constangy, Brooks, Smith & Prophete, LLP.

The Scope of Our Work
You should have a clear understanding of the legal services we will provide. Our firm will provide the services requested, keep you informed of developments and progress in the matter, and respond promptly to your inquiries. You agree to be truthful and cooperative and apprise us of all developments relating to your needs and our services, to be available to attend all requested appearances and depositions, settlement negotiations or court appearances, to attend meetings when requested by us, and to keep us apprised of any change in address or telephone numbers.

Any expressions on our part concerning the outcome of your legal matters are expressions of our professional judgment, but are not guarantees. Such opinions are necessarily limited by our knowledge of the facts and are based on the state of the law at the time they are expressed.

It is our policy that our client is the person or entity identified in our engagement letter and does not include any affiliates or constituents of such person or entity (e.g., if you are a corporation or partnership, any parents, subsidiaries, employees, officers, directors, shareholders or partners of the corporation or partnership, or commonly owned corporations or partnerships; or, if you are a trade association, any members of the trade association), whether or not any such affiliate or constituent is operationally integrated with the person or entity identified in our engagement letter as our client.

Preservation of Documents, Including Electronically Stored Information Note when you receive notice of a claim or lawsuit, you have a legal duty to retain all documents relevant to that claim or litigation. In that case, you must take affirmative steps to retain all documents related to the claimant’s or plaintiff’s employment, including any Electronically Stored Information (“ESI”). This requires the Company to suspend any applicable document disposal procedures (including routine email deletion) and take affirmative steps to retain all hard-copy document files, e-mail, and other ESI (whether maintained on a Company or personal laptop, desktop hard drive, network drive, storage device (such as thumb drive, disk, or otherwise), data compilations, text messages, voicemails, surveillance tapes and recordings, and any other tangible object that relates to the claim or lawsuit.

The Company must also immediately suspend any document retention/destruction policy and put in place a “Legal Hold.” This Legal Hold is designed to ensure that relevant electronic evidence is Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP preserved and not destroyed, altered, modified, disposed of, or in any way compromised.

Therefore, any individuals who may have relevant information or documents related to a matter must comply with this litigation hold.

We can assist you in determining the precise documents which need to be retained, and if needed, in drafting communications to those individuals in your organization who should be put on notice of this legal duty.

Consent to Electronic Communications
In order to increase our efficiency and responsiveness, we endeavor to use state of the art communication devices (e.g. email, document transfer by computer, wireless telephones, facsimile transfer and other devices which may develop in the future). The use of such devices under current technology may place your confidences and privileges at risk. However, we believe that the efficiencies involved in the use of these devices outweigh the risk of accidental disclosure. By agreeing to these terms, you consent to the use of these electronic communication devices.

Consent to In-House Attorney-Client Privilege
At any time during or after our representation of you, we may consult with our own counsel regarding our rights and obligations to you. These consultations may be with either our internal counsel (i.e., our “General Counsel” or other attorneys within our Firm who have been designated as our in-house counsel) or outside counsel. You agree that any such communications between us and our counsel are separate and apart from our representation of you and that the communications will remain privileged and confidential to us and shall not be subject to disclosure.

Who Will Provide the Legal Services
Customarily, each client of the firm is served by a principal attorney contact. The principal attorney should be someone in whom you have confidence and with whom you enjoy working. You are free to request a change of principal attorney at any time. Subject to the supervisory role of the principal attorney, your work or parts of it may be performed by other lawyers and legal assistants in the firm. Such delegation may be for the purpose of involving lawyers or legal assistants with special expertise in a given area, or lawyers who are licensed in a state in which a particular issue arises, or for the purpose of providing services on an efficient and timely basis. Whenever practicable, we will advise you of the names of those attorneys and legal assistants who work on your matters.

How Fees Will Be Set
In determining the amount to be charged for the legal services we provide to you we will consider:
 The time and effort required, the novelty and complexity of the issues presented, and the skill required to perform the legal services promptly;
 The fees customarily charged in the community for similar services and the value of the services to you;
 The amount of money or value of property involved and the results obtained; Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP  The time constraints imposed by you as our client and other circumstances, such as an emergency closing, the need for injunctive relief from court, or substantial disruption of other office business;
 The nature and longevity of our professional relationship with you;  The experience, reputation and expertise of the lawyers performing the services; and  The extent to which office procedures and systems have produced a high-quality product efficiently.

Among these factors, the time and effort required are typically weighted most heavily. We will keep accurate records of the time we devote to your work, including conferences (both in person and over the telephone), negotiations, factual and legal research and analysis, document preparation and revision, travel on your behalf, and other related matters. We record our time in units of tenths of an hour.

The hourly rates of our lawyers and legal assistants have an important bearing on the fees we charge. Rates are set for those attorneys based on their experience level and areas of practice, as well as overhead costs and other market factors. We periodically review our rates and reserve the right to make adjustments as needed. Any adjustments are typically made in January of each year.

We are sometimes requested to estimate the amount of fees and costs likely to be incurred in connection with a particular matter. Whenever possible, we will furnish such an estimate based upon our professional judgment, but always with a clear understanding that it is not a maximum or fixed-fee quotation. The ultimate cost frequently is more or less than the amount estimated.

For certain well-defined services (for example, a simple business incorporation), upon request, we may quote a flat fee. It is our policy not to accept representation on a flat-fee basis except in such defined-service areas or pursuant to a special arrangement tailored to the needs of a particular client.

Any flat fee arrangement will be expressed in a letter or an email message that sets forth both the amount of the fee and the scope of the services to be provided. In undertaking representation of a client with a personal injury or wrongful death claim or certain other matters, we will, in appropriate circumstances, provide legal services on a contingent fee basis. Any such contingent fee arrangement must be reflected in a written contingent fee agreement.

Expenses
Please know that Constangy bills separately for out-of-pocket expenses such as overnight mail, outsourced copying, and any mileage, lodging or other travel costs. These expenses will be separately itemized on your invoice. Unlike many firms, however, we do not charge for incidental expenses such as in-house copying, long distance telephone calls, faxes, postage, or standard computerized research within our research subscription.

Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP Additional Charges/Third Party Services
Other expenses for which the Firm contracts in bulk (e.g., online research, imaging, facsimile and litigation support) will include a reasonable allocation of overhead for clients using those services.

During any matter in which we represent the Company, we may also incur expenses related to electronic discovery services when processing Electronically Stored Information (“ESI”).

Depending on the volume and complexity of the ESI, collection and processing may be performed in-house or by an outside vendor. We will bill the Company for the time of both in-house professionals and outside vendors. We will also bill the Company $20/GB/Month for data hosting fees as well as $80/User/Month for access to the review platform, although hosting fees only apply while the applicable case is active.

In the event third party services are engaged by us, on your behalf and with your written approval, you agree to pay an outside vendor invoice directly, and if you fail to do so, you agree to defend and indemnify us with respect to any claim, demands or suit brought against us as a result of your failure to pay such invoice. Payment directly by us of any such expense shall not be construed as a waiver of our right to require you in the future to pay any similar expense directly.

We would be pleased to discuss the specific schedule of charges for any additional services and to answer any questions.

Advance Fee Deposits
New clients of the firm are commonly asked to deposit an advance fee deposit with the firm. If an advance fee deposit is requested, the engagement is contingent on receipt of that advance fee deposit. You hereby grant us a security interest in any advance fee deposit with us and in any other funds we hold on your behalf to secure your obligations to us under this agreement. The advance fee deposit is often equal to our estimate of the fees and costs likely to be incurred during a twomonth period. Unless otherwise agreed, the advance fee deposit will be credited toward your unpaid invoices, if any, at the conclusion of services. At the conclusion of our legal representation or at such time as the deposit has become unnecessary or has been appropriately reduced, the remaining balance or an appropriate part of it will be returned to you. If the deposit proves insufficient to cover current expenses and fees on at least a two-month basis, it may have to be increased.

Deposits which are received to cover specific items will be disbursed as provided in our agreement with you, and you will be notified from time to time of the amounts applied or withdrawn. Any amount remaining after disbursement will be returned to you.

All trust deposits we receive from you, including advance fee deposits, will be placed in a trust account for your benefit, depending on state or federal law.

Termination
You may terminate our representation at any time, with or without cause. Our right or obligation to terminate our representation is subject to the rules of professional conduct for the applicable Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP jurisdiction in which we practice, which list several types of conduct or circumstances that require or permit us to withdraw from a representation, including, for example, nonpayment of fees or costs, misrepresentation or failure to disclose material facts, failure to cooperate, taking action contrary to our advice and conflict of interest with another client. We will try to identify in advance and discuss with you any situation which may lead to our withdrawal and if we decide to withdraw, we usually give written notice of our withdrawal.

Unless previously terminated by you or us, the attorney-client relationship will be considered terminated upon our sending you the invoice that describes the final legal services for all matters that you have retained us to perform. You will not thereafter be considered a current client because you remain on a firm mailing list or have appointed an affiliate of the firm to serve as your registered agent or because the firm retains possession of certain of your papers or other property received in connection with the prior engagement or is identified as a required recipient of notices under a contract to which you are a party. If you later retain us to perform further or additional legal services, our attorney-client relationship will be revived subject to our standard terms of engagement in effect at that time.

Retention and Disposition of Documents
At the conclusion of our representation or any matter which we are handling for you, we reserve the right to retain our files pertaining to the matter (including attorney work product) in electronic format only. We also reserve the right to destroy electronic documents after they have been maintained for seven years. If you would like us to return any hard copy files to you at the conclusion of the case, or electronic documents to you during the seven-year retention period, please contact us by email or in writing, and we will be happy to arrange for delivery of the files.

If, upon your request, we agree to provide you with copies of certain documents from our file pertaining to the matter, you agree to pay the copying costs.

Post-Engagement Matters
You are engaging the firm to provide legal services in connection with a specific matter. After completion of the matter, changes may occur in the applicable laws or regulations that could have an impact upon your future rights and liabilities. Unless you engage us after completion of the matter to provide additional legal advice on issues arising from the matter, the firm has no continuing obligation to advise you with respect to future legal developments.

Billing Arrangements and Terms of Payments
We will bill you on a regular basis, normally each month, for both fees and disbursements. You agree to make payment upon receipt or no longer than 30 days after receiving our statement. If you timely object in writing to a portion of a statement, you agree to pay the remainder of the statement which is not in dispute. We agree to accept such partial payment without claiming you have waived your right to contest the unpaid portion of the bill.

Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP We will give you prompt notice if your account becomes delinquent, and you agree to bring the account or the retainer deposit current. If the delinquency continues and you do not arrange satisfactory payment terms, you agree that we may withdraw from the representation and pursue collection of your account. You agree to pay the expenses of collecting the debt, including court costs, filing fees and reasonable attorneys’ fees.

If we are handling multiple matters for you, we require payment on all matters be kept current as a condition of continuing work. Should the scope of our work change or you fail to make payments in a timely manner, we reserve the right to request an advance deposit or retainer.

Related Proceedings
If any claim is brought against the firm or any of its personnel based on your negligence or misconduct, if we are asked to testify as a result of our representation of you, or if we must defend the confidentiality of our communications in any proceeding, you agree to reimburse us for any resulting costs, including for our time, calculated at the hourly rate for the particular individuals involved, even if our representation of you has terminated.

Choice of Law/Forum Selection
The engagement letter is deemed to have been executed, and is intended to be performed in the state of Georgia, subject to its laws, regardless of whether services are actually rendered outside of the State. Any dispute arising from this agreement shall be governed by the laws of the state of Georgia. The venue for the judicial resolution of such dispute shall be proper only within the state of Georgia.

Your Right to Arbitrate
If you disagree with the amount of our fee, or if you have any complaint about the services rendered by us, please take up the question with your principal attorney contact or with the firm’s managing partner. Typically, such disagreements are resolved to the satisfaction of both sides with little inconvenience or formality. If a fee dispute is not readily resolved, you have the right to request arbitration under supervision of the bar associations for the jurisdictions in which we practice, and we agree to participate in that process.

Complete Agreement
As referenced in and supplemented by the Engagement Letter, these standard terms of engagement comprise our engagement agreement. No change to this agreement shall be effective unless and until confirmed in writing by you and the firm. There are no promises, terms, conditions or obligations other than those contained herein, and this agreement supersedes all previous communications, representations, or other agreements, either oral or written, between you and the firm.

Thank you for choosing Constangy, Brooks, Smith & Prophete, LLP to represent you in this matter.

Agenda Item J

AGENDA STAFF REPORT
DATE: January 26, 2026
TO: Honorable Mayor and City Council
FROM: Patrick Gallegos, City Manager
SUBJECT: Receive and File the November 8, 2025 Strategic Planning Session Report
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council receive and file the report.

BACKGROUND AND ANALYSIS:

The City of Seal Beach held a City Council Strategic Planning Session from 8:00 a.m. to 1:00 p.m. on Saturday, November 8, 2025 at Orange County Fire Authority Station #48. The session provided an opportunity for all five (5) council members to gain consensus and provide direction to staff on strategic priorities for the coming year by creating SMART (Specific, Measurable, Achievable, Relevant, Time-Bound) goals. The meeting was advertised, open to the public, and included multiple public comment opportunities.

Chief of Police Michael Henderson moderated the session with assistance from City Manager Patrick Gallegos and staff. Staff presented information related to the following topics: billboard request for proposals; Lifeguard Headquarters / Police Substation building; Main Street beautification and parking; Business First Working Group / Outreach and Engagement; and Special Events and Olympics Working Group. Staff answered questions to allow council members to reach consensus on developing several SMART goals.

By the end of the session, eight (8) SMART goals were created. The SMART goals are:

1. Provide a billboards progress report for Council consideration.

2. Facilitate further discussions in order to prepare a roadmap for constructing the Lifeguard Headquarters / Police Department Substation.

3. Complete smaller-scale beautification projects in the Greater Main Street Area that can be funded by the current adopted budget.

4. Provide a paid parking staff report to Council.

5. Create a Business First Working Group to evaluate the Main Street Specific Plan and consider updates related to franchises, entertainment, and other changes.

6. Consider opportunities for the expansion of special events citywide.

Page 2 ends

7. Create an Olympics Working Group for the 2028 Summer Olympics in Los Angeles.

8. Communicate the Strategic Plan to the public and Council.

Progress and status updates for the goals will be reviewed at another workshop that will tentatively occur in Spring 2026. The full report is included as Attachment A to this staff report and includes a summary of the results of the session.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

No legal analysis is required for this item.

FINANCIAL IMPACT:

There are no costs associated with the preparation of the report. Any costs associated with implementation of goals with be budgeted accordingly.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council receive and file the report.

NOTED AND APPROVED:

Patrick Gallegos
Patrick Gallegos, City Manager
Prepared by: Lauren Barich, Management Analyst
ATTACHMENTS:

A. November 8, 2025 Strategic Planning Session Report

STRATEGIC

PLANNING

SESSION
REPORT
November 8, 2025
January 26, 2026

TABLE OF CONTENTS

EXECUTIVE SUMMARY

PROCESS

ATTENDANCE

AGENDA & OBJECTIVE
03-05
03 04
05 06
07-16

SMART GOALS AND FUTURE FOCUS

INTRODUCTION
SMART GOAL #1
SMART GOAL #2
SMART GOAL #3
SMART GOAL #4
SMART GOAL #5
SMART GOAL #6
SMART GOAL #7
SMART GOAL #8

FUTURE FOCUS

CONTACT INFORMATION
07 08
09 10
11 12
13 14
15 16

EXECUTIVE SUMMARY
The City of Seal Beach held a City Council Strategic Planning Session from 8:00am to 1:00pm on Saturday, November 8,
2025 at the Orange County Fire Authority Station #48. The session provided an opportunity for all five (5) council members to gain consensus and provide direction to staff on strategic priorities for the coming year by creating SMART (Specific, Measurable, Achievable, Relevant, TimeBound) goals. The meeting was advertised, open to the public, and included multiple public comment
opportunities.

Chief of Police Michael Henderson moderated the session with assistance from City Manager Patrick Gallegos. Staff presented information and answered questions to allow
council members to reach consensus on developing several SMART goals.

By the end of the session, eight (8) SMART goals were
created. Progress and status updates for the goals will be reviewed at another workshop that will tentatively occur in Spring 2026.

The agenda and packet are available here, and a recording of the meeting is available here.

PAGE 03 www.sealbeachca.gov

PROCESS
Staff began planning for the Strategic Planning Session in the summer of 2025. Unlike in previous years where a consultant was used to conduct the meeting, staff fully executed the meeting. This change in practice not only achieved cost savings, but also allowed staff the opportunity to engage Council directly and provide a new format to meet Council’s desire to narrow in on specific, achievable goals by the end of the session while also offering more opportunities for community engagement.

In preparation for the session, City Manager Patrick Gallegos and Chief of Police Michael Henderson conducted individual interviews with council members and met with executive staff.

A team effort led to the preparation of the workshop agenda and slide deck. The meeting was advertised to the public.

Chief Henderson moderated the public meeting with assistance from City Manager Gallegos and the full executive team. Staff presented information and answered questions, and
opportunities for public comment were provided throughout the session.

By the end of the session, eight (8) SMART goals were created, and several Future Focus items were highlighted for follow up at a later time. An additional workshop will be tentatively held in Spring 2026 to review the status of the eight (8) SMART goals.

City Council guidance on Future Focus items will occur
separately from the Spring 2026 discussion of the eight (8) SMART goals.

PAGE 04

CITY COUNCIL
Lisa Landau
Mayor
District 3
STAFF
Patrick Gallegos, City Manager
Executive Team
Barbara Arenado, Finance Director /
City Treasurer
Joe Bailey, Marine Safety Chief
Craig Covey, Orange County Fire
Authority, Division 1 Chief
Gloria Harper, City Clerk
Michael Henderson, Chief of Police
Iris Lee, Public Works Director
Shaun Temple, Interim Community
Development Director
PAGE 05 www.sealbeachca.gov
Nathan Steele
Council Member
District 5
Joe Kalmick
Council Member
District 1
Ben Wong
Mayor Pro Tem
District 2
Patty Senecal
Council Member
District 4
Support Staff
Lauren Barich, Management
Analyst
Nick Bolin, Marine Safety
Lieutenant
Aine Eisenhauer, Police Civilian
Investigator (Acting Executive
Assistant)
Tim Kelsey, Recreation Manager
Deb Machen, Executive Assistant
Jennifer Robles, Management
Analyst
Call to Order
Pledge of Allegiance
Council Roll Call
Welcome Message
Mayor Lisa Landau
City Manager Patrick Gallegos
Oral Communications
Planning Session
Moderator Opening
Session One
Billboards
Lifeguard Headquarters / Police Substation
Main Street
Beautification
Parking
Session Two
Business First Working Group / Outreach and
Engagement
Special Events and Olympics Working Group
Debrief and Closing
Debrief
After Action Report / Next Steps
Open Forum
Adjournment
AGENDA
PAGE 06 www.sealbeachca.gov

OBJECTIVE
Staff is seeking consensus and direction from
the Council on defining goals and next steps.

PRESENTER
Shaun Temple
Interim Community Development Director

RELATED TASKS
Work through the ongoing Request for
Proposals process.

Prepare a letter of intent.

Conduct a site feasibility analysis.

Prepare design alternatives.

Complete public outreach.

Prepare Zone Text Amendment.

GOAL #1:

Provide a billboards
progress report for Council
consideration.

PAGE 07 www.sealbeachca.gov

PRESENTER
Iris Lee
Public Works Director

RELATED TASKS
Identify outreach: coalition building, working group, lobbying.

Consult with the California Coastal Commission.

Explore funding options including pledging new revenue
sources (e.g., billboards), loans, and applicable grants.

Facilitate further discussion on the use of budgeted project funds.

GOAL #2:

Facilitate further
discussions in order to
prepare a roadmap for
constructing the Lifeguard
Headquarters / Police
Department Substation.

PAGE 08 www.sealbeachca.gov

PRESENTER
Iris Lee
Public Works Director

RELATED
TASKS
Share the Greater Main Street Vision Plan with
Council and the Business First Working Group as
part of reviewing long-term, large-scale Greater
Main Street Area beautification and revitalization
project options, including string lighting and an
archway.

Review staffing levels and the part-time
Maintenance Aide pay scale.

In collaboration with the business community,
complete achievable maintenance enhancements
such as brighter lighting, restriping, pressure
washing, and wayfinding signs.

GOAL #3:

Complete smaller-scale
beautification projects in
the Greater Main Street Area
that can be funded by the
current adopted budget.

PAGE 09 www.sealbeachca.gov

PRESENTER
Michael Henderson
Chief of Police

RELATED TASKS
Present City Council with options for
possible implementation of paid
parking on Main Street.

GOAL #4:

Provide a paid parking
staff report to Council.

PAGE 10 www.sealbeachca.gov

PRESENTER
Jennifer Robles
Management Analyst

RELATED TASKS
Provide a staff report and resolution to Council
for creation of the Business First Working Group.

Chairs: Mayor Pro Tem Wong and Council
Member Kalmick
Create a concierge program for businesses to
streamline interactions between the City and
the business community.

Review short-term and long-term beautification
and revitalization projects in the Greater Main
Street Area.

GOAL #5:

Create a Business First
Working Group to evaluate
the Main Street Specific Plan
and consider updates related
to franchises, entertainment,
and other changes.

PAGE 11 www.sealbeachca.gov

PRESENTER
Tim Kelsey
Recreation Manager

RELATED TASKS
Consider how to leverage
partnerships with special events
organizers and the business
community.

Look at maximizing the use of city
buildings and spaces citywide.

GOAL #6:

Consider opportunities for
the expansion of special
events citywide.

PAGE 12 www.sealbeachca.gov

PRESENTER
Tim Kelsey
Recreation Manager

RELATED TASKS
Provide a staff report and resolution to Council
for creation of the Olympics Working Group.

Chairs: Mayor Landau and Council Member
Senecal
Consider inclusion of the 2026 World Cup as part
of this effort.

GOAL #7:

Create an Olympics
Working Group for the 2028
Summer Olympics in Los
Angeles.

PAGE 13 www.sealbeachca.gov

PRESENTER
Patrick Gallegos
City Manager

RELATED TASKS
Prepare a report.

Complete a quarterly update tentatively in
Spring 2026.

GOAL #8:

Communicate the
Strategic Plan to the
public and Council.

PAGE 14 www.sealbeachca.gov
Billboards
Consider utilizing in-house staff for advertisements and marketing.

Lifeguard Headquarters / Police Substation
Review whether the Marine Safety Department should use the Eisenhower Park level.

FUTURE FOCUS ITEMS
PAGE 15 www.sealbeachca.gov
These items were highlighted during the workshop and placed on this list to stay on track of the agenda but capture items that need additional consideration at a later date.

Greater Main Street Area
Evaluate installing a gazebo at the end of the pier.

Identify whether Rivers and Mountains Conservancy funding can be used for pier projects.

Revisit the tree removal and replacement program.

Strategize about how to attract Naval Weapons Station personnel.

Special Events
Provide options for expanding the summer concert series.

Discuss budgeting / funding with the Chamber of
Commerce for additional partnerships.

Consider other ideas such as a sandcastle contest and
craft markets.

Olympics
Consider Olympic events including extending
alcohol service zones, expansion of short term
rentals before and after, and an increase in
the transient occupancy tax.

Review the possibility of participating as an
air taxi service port.

PAGE 16
The Seal Beach Wave Biweekly Newsletter

CITY OF SEAL BEACH
Seal Beach City Hall
211 8 Street, Seal Beach, CA 90740
th
562-431-2527
www.sealbeachca.gov
[email protected]
@thecityofsealbeach
City of Seal Beach - Local Government
www.sealbeachca.gov

STRATEGIC

PLANNING

SESSION
REPORT
November 8, 2025
January 26, 2026

OVERVIEW
• Staff began planning in summer of 2025.
• Unlike in previous years where a consultant was used, staff fully executed the meeting.
⚬ Achieved cost savings, narrowed in on specific goals, and offered more opportunities for community engagement
• The public meeting was held on November 8, 2025 and was an opportunity for council members to gain consensus and provide direction to staff.
• The meeting was advertised, open to the public and included multiple public comment opportunities.
• By the end of the session, eight (8) SMART goals were created. ⚬ SMART = specific, measurable, achievable, relevant, timebound • Several items were highlighted during the workshop and placed on a Future Focus List to stay on track of the agenda but capture items that need additional consideration at a later date. www.sealbeachca.gov
GOAL #1:

Provide a billboards progress report for Council consideration.

GOAL #2:

Facilitate further discussions in order to prepare a roadmap for constructing the Lifeguard Headquarters / Police Department Substation.

GOAL #3:

Complete smaller-scale beautification projects in the Greater Main Street Area that can be funded by the current adopted budget.

GOAL #4:

Provide a paid parking staff report to Council.

GOAL #5:

Create a Business First Working Group to evaluate the Main Street Specific Plan and consider updates related to franchises, entertainment, and other changes.

GOAL #6:

Consider opportunities for the expansion of special events citywide.

GOAL #7:

Create an Olympics Working Group for the 2028 Summer Olympics in Los Angeles.

GOAL #8:

Communicate the Strategic Plan to the public and Council.

NEXT STEPS
• Progress and status updates for the goals will be reviewed at another workshop that will tentatively occur in Spring 2026.
• City Council guidance on Future Focus items will occur separately from the eight (8) SMART goals.

VIEW THE REPORT
HTTPS://WWW.SEALBEACHCA.GOV/CITY-OF-SEAL-BEACH-STRATEGIC-PLAN Thank you!
Lauren Barich, Management Analyst
[email protected]
562-431-2527 x1336
Agenda Item K

AGENDA STAFF REPORT
DATE: January 26, 2026
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, City Manager
SUBJECT: Establishment of a Citizen-Council Olympics Advisory AdHoc Committee ________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7731:

1. Establishing a Citizen-Council Olympics Advisory Ad-Hoc Committee; and,

2. Approving the formation of the Committee, to be comprised of (2) council members and five (5) at-large community stakeholders, with one stakeholder nominated by each council member, for a total of (7) committee members; and,

3. Requiring committee members to be stakeholders in the Seal Beach community and possess knowledge, education, or experience in event planning, multi-sport events, or community outreach, with experience related to previous Olympic Games preferred, or other expertise that will support the Committee’s purpose related to the 2028 Los Angeles Olympics; and,

4. All committee members are expected to actively participate by attending all meetings, engaging in focused discussions, reviewing and analyzing relevant materials, and providing recommendations to support the Committee’s objectives; and,

5. Establishing the priorities for the Committee; and,

6. Establishing that the Olympics Advisory Ad-Hoc Committee meet monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and based on the availability of staff and committee members; and,

7. Directing the City Manager or his designee(s) to provide staff support to the Committee; and,

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8. Directing the City Clerk to post the Notice of Vacancy for the Committee and open the application process.

BACKGROUND AND ANALYSIS:

At the November 8, 2025 City Council Strategic Planning Session, City Council directed staff to bring forward an item to consider the establishment of an ad-hoc committee to assist with planning for the 2028 Los Angeles Olympics.

Based on Council feedback at that session, staff recommends establishing an Olympics Advisory Ad-Hoc Committee. The Council preliminarily discussed appointing Mayor Landau and Council Member Senecal to serve on the committee.

Staff recommends the committee be comprised of (2) council members and five (5) at-large community stakeholders, with one (1) stakeholder nominated by each council member, for a total of (7) committee members. All nominations must be approved by the full City Council at a future meeting. The City Manager, or his designee(s), will provide staff to support the Committee in accomplishing its objectives.

Staff recommends that committee members be stakeholders in the Seal Beach community and possess knowledge, education, or experience in event planning, multi-sport events, and community outreach, with experience related to previous Olympic Games preferred or other expertise that will support the Committee’s purpose related to the 2028 Los Angeles Olympics. Applicants must be (18) eighteen years of age or older. All committee members are expected to actively participate by attending all meetings, engaging in focused discussions, reviewing and analyzing relevant materials, and providing recommendations to support the Committee’s objectives.

The Olympics Advisory Ad-Hoc Committee will meet monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and based on the availability of staff and committee members. All meetings must be conducted in compliance with the Ralph M. Brown Act.

While formal committee membership will be limited to five (5) at-large Community stakeholders, participation in discussions will not be restricted to committee members. As topics are considered, staff and the Committee will conduct outreach and engage additional stakeholders. This approach is intended to promote transparency, inclusivity, and meaningful input from the broader community. Staff will also provide updates to the City Council to keep them informed of ongoing initiatives and will present recommended items for Council consideration.

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on the following link: Olympics Advisory Ad-Hoc Committee Member Application, or requested via email from Gloria Harper, City Clerk, at [email protected].

Each council member will review applications after the closing of the application period and will tentatively present their nominations for formal appointments at a future City Council meeting, in Spring of 2026.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

There is no financial impact related to formation of the Olympics Advisory Ad-Hoc Committee. Action items with financial impacts recommended by the Committee would be brought forth to the City Council for consideration.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7731:

1. Establishing a Citizen-Council Olympics Advisory Ad-Hoc Committee; and,

4. All committee members are expected to actively participate by attending all meetings, engaging in focused discussions, reviewing and analyzing

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relevant materials, and providing recommendations to support the Committee’s objectives; and,

5. Establishing the priorities for the Committee; and,

7. Directing the City Manager or his designee(s) to provide staff support to the Committee; and,

8. Directing the City Clerk to post the Notice of Vacancy for the Committee and open the application process.

NOTED AND APPROVED:

Patrick Gallegos
Patrick Gallegos, City Manager
Prepared by: Tim Kelsey, Recreation Manager
ATTACHMENTS:

A. Resolution 7731
RESOLUTION 7731

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

ESTABLISHING A CITIZEN-COUNCIL OLYMPICS ADVISORY

AD-HOC COMMITTEE
WHEREAS, at the November 8, 2025 City Council Strategic Planning Session, City Council directed staff to bring forward an item to establish a Citizen-Council Advisory Ad-Hoc Committee to assist with planning for the 2028 Los Angeles Olympics.

NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. The City Council hereby establishes the Citizen-Council Olympics Advisory Ad-Hoc Committee (“Committee”).

Section 2. The Committee shall be comprised of (2) council members and five (5) at-large community stakeholders, with one stakeholder nominated by each council member, for a total of (7) committee members.

Section 3. Each citizen committee member shall be a stakeholder in the Seal Beach community and possess knowledge, education, or experience in event planning, multi-sport events, or community outreach, with experience related to previous Olympic Games preferred, or other expertise that will support the Committee’s purpose related to the 2028 Los Angeles Olympics.

Section 4. All committee members shall be expected to actively participate by attending all meetings, engaging in focused discussions, reviewing and analyzing relevant materials, and providing recommendations to support the Committee’s objectives.

Section 5. The Committee shall provide recommendations and advise the City Council on the City’s plans for the 2028 Olympics.

Section 6. The Committee will call meetings monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and based on the availability of staff and committee members. Meetings will be conducted in accordance with the Ralph M. Brown Act.

Section 7. The City Manager or his designee(s) will provide staff support to the Committee.

Section 8. The City Clerk shall post the Notice of Vacancy for the Committee and open the application process.

PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th of January 2026, by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7731 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of January 2026.

Gloria D. Harper, City Clerk
Olympics Advisory
Ad-Hoc Committee
January 26, 2026
Los Angeles Olympics 2028
• 15,680 total athletes between Olympics and Paralympics • 49 total sites across Southern California
• Long Beach is hosting the second most events outside of LA • Long Beach is confirmed to host 18 events in 7 different sites • Olympic games are July 14-30, 2028
• Paralympic games are August 15-27, 2028
• Anticipated 10 – 15 million ticketed fans
Seal Beach Considerations
• Transportation
• Activation opportunities
• Visitor accommodations
• Marketing
• Safety
• Education and outreach
• Stakeholders
• Financing
Olympics Ad-Hoc Committee
Recommendation
• Establish the Olympic Advisory Ad-hoc Committee
• Consisting of 2 council members and 5 community members • Authorize the City Manager to provide staff support • Direct the City to begin advertising vacancies Next Steps
• Begin Adverting for committee members
• Interested committee members must submit interest to the City Clerks office by February 20, 2026
• Council will consider board members in early Spring
• Committee will begin holding meetings
Thank You
Agenda Item L

AGENDA STAFF REPORT
DATE: January 26, 2026
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, City Manager
FROM: Shaun Temple, Interim Director of Community Development SUBJECT: Establishment of a Citizen-Council Business First Advisory Ad-Hoc Committee
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7732:

1. Establishing a Citizen-Council Business First Advisory Ad-Hoc Committee; and,

2. Approving the formation of the Committee, to be comprised of two (2) council members and three (3) at-large community stakeholders, with one stakeholder nominated by each council member not serving on the committee for a total of five (5) committee members; and,

3. Requiring committee members to be stakeholders in the Seal Beach community and should possess knowledge, education or experience in economic development, business support, commercial revitalization, or related fields that align with the Committee’s purpose in supporting economic development initiatives within Seal Beach; and,

5. Establishing that the Business First Advisory Ad-Hoc Committee meet monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and based on the availability of staff and committee members; and,

6. Directing the City Manager or his designee(s) to provide staff support to the Committee; and,

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7. Directing the City Clerk to post a Notice of Vacancy for the Committee and open the application process.

BACKGROUND AND ANALYSIS:

At the November 8, 2025 City Council Strategic Planning Session, Council identified strengthening economic development as a key priority and directed staff to return with a recommendation to establish an ad-hoc advisory committee to serve as a forum for discussion and collaboration on initiatives that support local businesses and enhance the City’s economic vitality.

Based on Council feedback and consensus provided at the Strategic Planning Session, staff recommends establishing a Business First Advisory Ad-Hoc Committee with the following primary objectives:
• Develop a Business Concierge Program to support new and prospective businesses by assisting with business establishment, navigating the City’s permitting and regulatory processes, and connecting businesses with internal departments and external partner agencies that can help them succeed.
• Review and recommend potential regulatory changes to the Main Street Specific Plan to improve business attraction, retention, and long-term sustainability.
• Review short-term and long-term beautification and revitalization projects in the Greater Main Street Area.

Council discussion at the Strategic Planning Session preliminarily included Mayor Pro Tem Wong and Council Member Kalmick as members of the Committee. In addition, staff recommends the Committee be comprised of three (3) at-large community stakeholders, nominated by each council member not serving on the committee, for a total of five (5) committee members. All nominations must be approved by the full City Council at a future meeting. The City Manager, or his designee(s), will provide staff to support the Committee in accomplishing its objectives.

Staff recommends committee members be stakeholders in the Seal Beach community and possess knowledge, education, or experience in economic development, business support, commercial revitalization, or related fields that align with the Committee’s purpose in supporting economic development initiatives within Seal Beach. Applicants must be (18) eighteen years of age or older. All committee members are expected to actively participate by attending all meetings, engaging in focused discussions, reviewing and analyzing relevant materials, and providing recommendations to support the Committee’s objectives.

The Business First Advisory Ad-Hoc Committee will meet monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and

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based on the availability of staff and committee members. All meetings must be conducted in compliance with the Ralph M. Brown Act.

While formal Committee membership will be limited to three (3) at-large community stakeholders, participation in discussions will not be restricted to committee members. As topics are considered, staff and the Committee will conduct outreach and engage additional stakeholders. This approach is intended to promote transparency, inclusivity, and meaningful input from the broader community. Staff will also provide updates to the City Council to keep them informed of ongoing initiatives and will present recommended items for Council consideration.

Community members interested in serving on the Committee must submit an application to the City Clerk’s office by Friday, February 20, 2026. The committee member application can be downloaded from the City Clerk’s website by clicking the following link: Business First Advisory Ad-Hoc Committee Member Application, or requested via email from Gloria Harper, City Clerk, at [email protected].

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

The City Attorney has reviewed the resolution and approved as to form.

FINANCIAL IMPACT:

There is no fiscal impact associated with the formation of the Business First Advisory Ad-Hoc Committee. Any action items with potential financial impacts recommended by the Committee will be presented to the City Council for consideration.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7732:

1. Establishing a Citizen-Council Business First Advisory Ad-Hoc Committee; and,

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3. All committee members are expected to actively participate by attending all meetings, engaging in focused discussions, reviewing and analyzing relevant materials, and providing recommendations to support the Committee’s objectives; and,

4. Requiring committee members to be stakeholders in the Seal Beach community and should possess knowledge, education or experience in economic development, business support, commercial revitalization, or related fields that align with the Committee’s purpose in supporting economic development initiatives within Seal Beach; and,

6. Directing the City Manager or his designee(s) to provide staff support to the Committee; and,

7. Directing the City Clerk to post a Notice of Vacancy for the Committee and open the application process.

SUBMITTED BY: NOTED AND APPROVED:

Shaun Temple Patrick Gallegos
Shaun Temple, Interim Director
of Community Development
Patrick Gallegos, City Manager
Prepared by: Jennifer Robles, Management Analyst
ATTACHMENTS:

A. Resolution 7732
RESOLUTION 7732

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

ESTABLISHING A CITIZEN-COUNCIL BUSINESS FIRST

ADVISORY AD-HOC COMMITTEE
WHEREAS, At the November 8, 2025, City Council Strategic Planning Session, City Council identified strengthening economic development as a key priority and directed staff to return with a recommendation to establish an ad-hoc advisory committee to serve as a forum for discussion and collaboration on initiatives that support local businesses and enhance the City’s economic vitality.

NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY FIND AND RESOLVE:

Section 1. The City Council hereby establishes the Citizen-Council Business First Advisory Ad-Hoc Committee (“Committee); and,
Section 2. The Committee shall be comprised of (2) Councilmembers and five (5) at-large community stakeholders, with one stakeholder nominated by each Councilmember, for a total of (7) Committee Members.

Section 3. Each Citizen Committee Member shall be a stakeholder in the Seal Beach community and possess knowledge, education or experience in economic development, business support, commercial
revitalization, or related fields that align with the Committee’s purpose in supporting economic development initiatives within Seal Beach; and,
Section 4. The Committee shall provide recommendations and advice to the City Council on economic development issues, including: (1) a Business Concierge Program to support new and prospective businesses by assisting with business establishment, navigating the City’s permitting and regulatory processes, and connecting businesses with internal departments and external partner agencies that can help them succeed; (2) potential regulatory changes to the Main Street Specific Plan to improve business attraction, retention, and long-term sustainability; and (3) short-term and long-term beautification projects on Main Street.

Section 5. Committee meetings will be called monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and based on the availability of staff and Committee members. Meetings will be conducted in accordance with the Brown Act; and, Section 6. The City Manager or designee(s) will provide staff support to the Committee; and,
Section 7. The City Clerk shall post a Notice of Vacancy for the Committee and open the application process.

PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th of January 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7732 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of January 2026.

Gloria D. Harper, City Clerk
Business First Advisory
Ad-Hoc Committee
January 26, 2026
Business First Advisory Ad-Hoc Committee
Background:

Council-directed initiative from City Council Strategic Planning Session.

Committee Purpose:

Business attraction, retention, and support.

Proposed SMART objectives:
• Business Concierge Program.
• Main Street Specific Plan regulatory considerations.
• Beautification and revitalization efforts.

Business First Ad-Hoc Committee
Proposed committee composition:
• (2) Council members and (3) at-large community stakeholders.

Application Process:
•Submitted to the City Clerk’s Office by February 20, 2026. •Available through website or email.

Committee Appointments
• Tentatively scheduled for a future Council meeting in Spring of 2026 Thank You
Agenda Item M

AGENDA STAFF REPORT
DATE: January 26, 2026
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, City Manager
FROM: Barbara Arenado, Director of Finance/City Treasurer SUBJECT: Fiscal Year 2025-26 First Quarter Budget Update ________________________________________________________________ SUMMARY OF REQUEST:

That the City Council receive and file the Fiscal Year 2025-26 First Quarter Budget update.

BACKGROUND AND ANALYSIS:

This report provides a First Quarter Budget update of the City’s financial position.

To develop the update, the Finance Department meets with City departments to gather revenue projections, reviews and analyzes data with the City’s consultants, and evaluates the potential fiscal impacts. Preparing for an uncertain future requires consideration of a wide range of factors, including direct and indirect influences on the City. This report represents the City’s best estimates based on the most current information. The FY 2025-26 First Quarter Budget Update Summary (Attachment A) is based on actuals from July 1, 2025 through September 30, 2025.

The broader economy remains generally stable; however, ongoing inflationary pressures and evolving federal economic policies continue to present uncertainty.

While recent federal actions may influence local financial conditions, it is too early to determine their full fiscal impact. City staff will continue to closely monitor economic developments throughout the fiscal year.

General Fund revenues recorded through September 2025 were reviewed in the context of FY 2024-2025 actual results, performance to date, and historical budget average. In Seal Beach, property tax remains a strong base as the median home prices continue to be approximately $1.4 million. Sales tax performance has mixed data depending on category and the City’s sales tax consultant, HdL, has provided updated comparison data.

Expenditures are slightly higher than in previous years in the first quarter and this is due to timing of payments in contracts and retirement. The City remains within budget and continues to prioritize filling vacant positions and fully funding core

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services. The City remains committed to prudent fiscal management while monitoring economic trends to preserve long-term financial stability, service levels, and quality of life for the community.

No adjustments to the budget are requested. Further information is included in the First Quarter Budget Update Summary.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

There is no fiscal impact and no recommended changes to the budget.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council receive and file the Fiscal Year 2025-26 First Quarter Budget update.

SUBMITTED BY: NOTED AND APPROVED:

Barbara Arenado Patrick Gallegos
Barbara Arenado, Director of
Finance/City Treasurer
Patrick Gallegos, City Manager
ATTACHMENTS:

A. First Quarter Budget Update Summary
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FIRST QUARTER BUDGET UPDATE
July - September 2025
The 1st Quarter Budget Update for Fiscal Year (FY) 2025-26 provides an analysis of General Fund revenues and expenditures based on July 1, 2025, through September 30, 2025, actuals with a comparison to prior year.

SUMMARY
The FY 2025–26 First Quarter Budget Update provides an overview of General Fund revenues and expenditures based on actual financial activity from July 1 through September 30, 2025. This report reflects the first three months of the fiscal year and compares results to the prior year where applicable.

The City concluded FY 2024–25 in a strong financial position, the result of disciplined cost control, vacancy savings, proactive financial monitoring, voter-approved Measure GG revenues, and a citywide commitment by all departments to identify savings and reduce expenditures.

First quarter results indicate that General Fund revenues are generally tracking in line with the adopted budget. Property tax continues to be a stable and reliable revenue source and is expected to meet budget assumptions. Sales and use tax revenues exceeded the same period in the prior fiscal year, though SOURCES ADOPTED BUDGET YTD-ACTUAL % ADOPTED BUDGET YTD-ACTUAL % 01-PROPERTY TAXES 15,390,000 255,028 2% 16,327,000 293,687 2% 02-SALES AND USE TAXES 11,891,183 822,270 7% 14,643,000 1,027,667 7% 03-UTILITY USERS TAX 5,100,000 911,904 18% 5,440,000 888,191 16% 04-TRANSIENT OCCUPANCY TAX 1,850,000 7,928 0% 1,890,000 13,532 1% 05-FRANCHISE FEES 1,108,000 62,856 6% 1,160,000 58,194 5% 06-OTHER TAXES 829,800 228,209 28% 810,000 280,222 35%
07-LICENSES AND PERMITS 872,000 346,816 40% 861,000 314,326 37% 08-INTERGOVERNMENTAL 173,800 12,734 7% 241,000 53,050 22% 09-CHARGES FOR SERVICES 3,114,700 892,505 29% 3,315,450 1,148,284 35% 10-FINES AND FORFEITURES 1,598,800 309,672 19% 1,582,300 270,147 17% 11-USE OF MONEY AND PROPERTY 750,000 191,642 26% 953,000 302,247 32% 12-ALLOCATED COSTS - - - -
13-OTHER REVENUES 85,600 186,728 218% 147,330 51,221 35% TOTAL OPERATING REVENUE 42,763,883 4,228,292 10% 47,370,080 4,700,767 10% 14-TRANSFERS IN 1,220,781 - 0% 822,000 - 0%
TOTAL REVENUES & SOURCES 43,984,664 4,228,292 10% 48,192,080 4,700,767 10%

USES, BY TYPE
01-REGULAR SALARIES 10,269,416 2,003,518 20% 10,973,000 2,144,698 20% 02-OTHER PAY AND BENEFITS 4,780,729 1,107,483 23% 5,837,084 1,181,864 20% 03-RETIREMENT 5,608,884 3,976,431 71% 6,281,829 4,609,792 73% 04-MAINTENANCE AND OPERATIONS 21,324,656 3,449,989 16% 22,338,460 6,961,013 31% 05-CAPITAL OUTLAY - - 5,000 - 0%
06-DEBT EXPENSE 91,811 - 0% - -
TOTAL OPERATING EXPENDITURES 42,075,496 10,537,422 25% 45,435,373 14,897,367 33% 07-TRANSFERS OUT 12,253,396 (141,226) -1% 14,442,480 - 0% TOTAL EXPENDITURES & USES 54,328,892 10,396,196 19% 59,877,853 14,897,367 25% FY 2024-2025 FY 2025-2026
General Fund Summary
2 | P a g e
1ST QUARTER UPDATE
performance varied by tax group according to projections from the City’s sales tax consultant, HdL. Staff is also monitoring utility user tax revenues closely, as electric revenues are trending below budget assumptions, while permit and plan check revenues are exceeding expectations. Ongoing federal policy developments may impact future economic conditions and revenue projections; however, it is too early to assess potential year-end impacts, and staff will continue close monitoring.

Expenditures through the first quarter totaled approximately 33 percent of the adopted budget, slightly higher than prior years due primarily to the timing of contractual payments and increased CalPERS retirement contributions. It is important to note that a significant portion of revenues is typically received later in the fiscal year, and expenditure timing may fluctuate. While economic growth remains resilient, inflation continues to exceed the Federal Reserve’s target and the labor market is showing modest softening, with Orange County unemployment at 4.4 percent. Departments are closely managing expenditures to remain within budget, and any necessary adjustments will be brought back to Council.

PROPERTY TAX revenues have increased slightly compared to the same period in the prior fiscal year and is anticipated to stay within budget. The growth is primarily due to the overall sales and market value increases that helped add value to the City’s assessed valuations. The City’s Assessed Valuation, as released by the Orange County Assessor, is $7.9 billion, an increase of 4.3 percent from the prior year.

Median home price during this period was $1.4 million. Although there was an increase in median price from the previous time last year, there were fewer sales transactions than the previous year which will be reflected in the additive FY 2026-27 tax roll reducing year over year growth. Residential property tax payments are largely received by the City in the months of December and April. Property tax provides 34 percent of annual budgeted General Fund operating revenues and remains on budget.

SALES TAX is collected by the State and advanced to the City monthly with funds distributed two months following the period the revenue is earned. According to HdL, the City’s tax consultant, the City’s gross receipts from July – September 2025 were 27.1% above the third sales period in 2024. However, after

REVENUES
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1ST QUARTER UPDATE
adjusting for reporting modifications such as audit adjustments and delayed payments, actual sales were up 4.6%. Results varied by tax group. Revenue from general consumer goods increased slightly with a new retailer contributing to the increase.

New dining options helped to boost revenue from the restaurant-hotel sector. In the third quarter of 2025, revenue from fuel-service stations rose slightly due to refinery issues and volatile markets. Store closures had a negative impact on totals from food-drugs. The business-industry sector struggled due to buyer caution, longer sales cycles inflation and tariffs. The auto-transportation group reported modest increases when compared to the year-ago period.

Measure GG, the City’s new/replacement voter-approved transactions and use tax, brought in $2,307,142 in revenue (this includes both GG and BB). The City’s share of the countywide use tax pool increased 30.2% or $45,755 when compared to the same period in the prior year. Net of aberrations, taxable sales for Orange County rose 2.2% over the comparable time-period; the Southern California region was up 1.8% and the State at 1.9%
Source: HdL, Sales and Use Tax
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1ST QUARTER UPDATE
UTILITY USERS TAX (UUT) is 11 percent of the FY 2025-26 Budget. UUT is charged to customers of electric, natural gas, telecommunications and pre-paid wireless. Revenues in this category are impacted by consumption levels and have experienced strong growth from prior periods due to return to work, increases in utilities, and businesses fully operational.

This report covers the first three months of the fiscal year and the City is seeing declines in electric to the prior fiscal year and under budget assumptions. Staff will be monitoring this closely to determine if we will need a mid-year adjustment. Gas has increased due to price increases implemented last year. Bundling of data and voice/text in cellphone plans continues to negatively impact wireless revenues and migration of landlines to cellular continues to negatively impact wired revenues. However, increases in rates will continue to impact customers.
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1ST QUARTER UPDATE
CHARGES FOR SERVICES are 7 percent of the FY 2025-26 Budget. Charges for services are used to recover costs of programs for specific end users. Programs provided through Community Services are typically subsidized by the General Fund to encourage participation. The City continues to see increases in planning and plan check fees. The increase in July is due to timing of payments in refuse. Tennis Center revenue trended lower than budget the first quarter of the year. Overall, for the first quarter, Charges for Services are higher than budget and is expected to stay on or slightly exceed budget.

FINES & FORFEITURES is primarily parking revenue and is 3 percent of the FY 2025-26 Budget. Fines and forfeitures in the City of Seal Beach budget represent revenue collected from penalties imposed for violations of local laws, ordinances, and regulations. These include traffic citations, parking fines, code enforcement penalties, and other municipal violations. Additionally, forfeitures may include assets seized in legal proceedings or funds from unclaimed property. This revenue source helps offset costs associated with public safety, law enforcement, and municipal court operations, with the goal of promoting compliance with local regulations.
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1ST QUARTER UPDATE
TRANSIENT OCCUPANCY TAX accounts for 4 percent of the General Fund. Due to the impacts of COVID19 that began in the second half of FY 2019-20, the hotel industry reported its lowest occupancy rates since 2007. Year-to-date through September, TOT revenue is anticipated to be right at budget compared to the prior year. The City’s three hotels are performing at the same expectations as the prior year as our hotels are at capacity. This revenue source is volatile and is strongly correlated with economic impacts.

The City receives TOT after the end of each quarter.

FRANCHISE FEES are imposed on various public utilities and account for 2 percent of the General Fund.

The franchise grants the public utilities the right to use public property for system infrastructure such as lines and pipes. It also grants exclusive rights to provide cable television within the City. Revenues are typically received in the later part of the fiscal year, with the largest payment received in April. Franchise fees remain relatively stable.
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1ST QUARTER UPDATE
OTHER REVENUE is made up of a variety of relatively small revenue categories including Licenses and Permits, Intergovernmental, Use of money and Property, and Miscellaneous Public Safety Revenues.

Other revenue includes one-time payments that the City may receive. Staff anticipates other revenue will meet budget projections and fluctuations are due to timing of receipts. 8 | P a g e
1ST QUARTER UPDATE
REGULAR SALARIES the first quarter of the year were trending at budget as nearly all positions throughout the City have been filled.

OTHER PAY & BENEFITS include part-time salaries, medical benefits, insurance, the City’s health and wellness program, tuition reimbursement, employee benefits and overtime. Medical Benefits, Insurance, part-time salaries, and overtime comprise most of this category. Overtime is well monitored in the City but fluctuates based on unanticipated events and emergencies. For the first quarter, other pay and benefits is under budget due to timing of expenditures that typically happen later in the year.

EXPENDITURES
9 | P a g e
1ST QUARTER UPDATE
RETIREMENT The City offers a defined benefit plan through California Employees’ Public Retirement System (CalPERS) to manage the pension and health benefits. CalPERS is the largest pension fund in the nation offering benefits to 1.6 million public employees, retirees, and their families. The FY 2025-26 budget includes the required increases estimated by CalPERS to pay down the unfunded actuarial liabilities of all plans. Funding for these payments is included in the City’s operating budget, spread across several funds, including the General Fund. The City’s unfunded liabilities and the payments required to pay off those liabilities are calculated by CalPERS’ actuarial staff. These calculations are made annually and can change the amount of the City’s unfunded liabilities based on a number of factors, including variances from expected results relative to investment returns and employee demographics, as well as any changes in the assumptions that CalPERS uses to make their calculations.

Over the last couple of years, CalPERS has phased in the reduction in their investment return assumption, taking it from 7.5 percent to 6.8 percent. This change and CalPERS negative returns on investments has resulted in significant increases in the City’s unfunded liabilities in recent years, in spite of the fact that the City has been making its required payments on its unfunded liabilities. This change in investment return assumptions is also a primary factor in the projected increases in future contributions that will be required to pay off the City’s unfunded pension liabilities. These increases will hinder the City’s ability to fund other services. The California Public Employees’ Pension Reform Act (PEPRA) of 2013 became effective on January 1, 2013. PEPRA primarily affects new members. PEPRA’s primary areas of impact concern limiting benefit formulas, increasing the time of final average compensation period, pensionable compensation, setting a salary cap and increasing the employees’ retirement contributions.

Termination of the City’s contract with CalPERS would require the payment of a termination fee to guarantee the payment of pension obligations that have already accrued. This fee would be several times the current unfunded pension liability. The City prepays the unfunded liability portion at the beginning of the fiscal year for substantial savings.
10 | P a g e
1ST QUARTER UPDATE
Maintenance and Operations The City engages in contracts with vendors to avail various services, including specialized consulting, legal, financial, landscape and facility maintenance, and program support, on a contractual basis. Maintenance and Operations constitute 46.4 percent of the overall General Fund Budget for FY 2025-26. The primary General Fund M&O expenditures for FY 2025-26 include $7.3 million for Fire Contract services (which accounts for 33 percent of M&O), $1.4 million for Refuse, $3.2 million for General Liability, Property Insurance, and Workers Compensation, $1.0 million for West-Comm Contract services, and $1.1 million for Street Maintenance Contracts. Increases in contract costs are mainly attributed to State-mandated prevailing and/or minimum wage hikes, alongside the integration of additional City infrastructure and/or emergency repairs (such as streets, trees, community centers, signalized intersections, etc.).

The spike in December of 2024 and July 2025 is due to timing of payments for insurance.

First Quarter Budget Update
FISCAL YEAR 2025-26
FY 2025-26 First Quarter General Fund Update
2 FISCAL YEAR 2025-26
First Quarter Budget Summary
SOURCES ADOPTED BUDGET YTD-ACTUAL % ADOPTED BUDGET YTD-ACTUAL % 01-PROPERTY TAXES 15,390,000 255,028 2% 16,327,000 293,687 2% 02-SALES AND USE TAXES 11,891,183 822,270 7% 14,643,000 1,027,667 7% 03-UTILITY USERS TAX 5,100,000 911,904 18% 5,440,000 888,191 16% 04-TRANSIENT OCCUPANCY TAX 1,850,000 7,928 0% 1,890,000 13,532 1% 05-FRANCHISE FEES 1,108,000 62,856 6% 1,160,000 58,194 5% 06-OTHER TAXES 829,800 228,209 28% 810,000 280,222 35%
07-LICENSES AND PERMITS 872,000 346,816 40% 861,000 314,326 37% 08-INTERGOVERNMENTAL 173,800 12,734 7% 241,000 53,050 22% 09-CHARGES FOR SERVICES 3,114,700 892,505 29% 3,315,450 1,148,284 35% 10-FINES AND FORFEITURES 1,598,800 309,672 19% 1,582,300 270,147 17% 11-USE OF MONEY AND PROPERTY 750,000 191,642 26% 953,000 302,247 32% 12-ALLOCATED COSTS - - - -
13-OTHER REVENUES 85,600 186,728 218% 147,330 51,221 35% TOTAL OPERATING REVENUE 42,763,883 4,228,292 10% 47,370,080 4,700,767 10% 14-TRANSFERS IN 1,220,781 - 0% 822,000 - 0%
TOTAL REVENUES & SOURCES 43,984,664 4,228,292 10% 48,192,080 4,700,767 10% FY 2024-2025 FY 2025-2026
FY 2025-26 General Fund Revenue
FISCAL YEAR 2025-26
First Quarter Budget Summary
Property Tax
Sales Tax
Utility Users Tax
Charges for Services
Fines & Forfeitures
Hotel Tax (TOT)
76%
90%
Property Tax,
$16.3 M, 34%
Sales and Use
Tax, $14.6 M,
31%
Utility Users Tax,
$5.4 M, 11%
Charges for Services,
$3.3 M, 7%
Fines and Forfeitures,
$1.6 M, 3%
Transient Occupancy
Tax, $1.9 M, 4%
Other Revenue, $5. M,
10%
Property Tax
Seal Beach Assessed Valuation
• $7.9 Billion Orange County Assessor
• 6,494 Parcels
• 4.3% YOY/County 5.41%
• Median Single-Family Home Sales $1.4 M
• Property Tax $16.3 M
• 34% of General Fund
• Stable Revenue Source
• .15 of $1.00
• On Budget
FISCAL YEAR 2025-26
First Quarter Budget Summary
Sales Tax & Use Tax
Sales and Use Tax Components $14.6 M:
• Largest Consumer Goods and Restaurants
• Growth in County and State Pools
• Tariff Purchase Panic
• Consumer Fear Impacts Largest Sectors
• On Budget
FISCAL YEAR 2025-26
First Quarter Budget Summary
Utility Users Tax (UUT)
UUT $5.4 M Budget 11%:
• Electric, Natural Gas, Telecommunications
• Lowered in 2014
• Decreases in Electric
• Projection Under Budget
FISCAL YEAR 2025-26
First Quarter Budget Summary
Charges for Services
FISCAL YEAR 2025-26
First Quarter Budget Summary
Charges for Services 7% $3.3 M:
• A fee collected to pay for services
related to the activity.
• Subsidized by General Fund
• Planning Fees
• On Budget/Exceed Budget
Transient Occupancy Tax (TOT)
FISCAL YEAR 2025-26
First Quarter Budget Summary
TOT $1.6 M:
• 3 Hotels
• The Pacific Inn
• Ayres
• Hampton
• Continues to exceed all historic levels
• 47 Short Term Rentals
FY 2025-26 First Quarter General Fund Update
FISCAL YEAR 2025-26
First Quarter Budget Summary
USES, BY TYPE ADOPTED BUDGET YTD-ACTUAL % ADOPTED BUDGET YTD-ACTUAL % 01-REGULAR SALARIES 10,269,416 2,003,518 20% 10,973,000 2,144,698 20% 02-OTHER PAY AND BENEFITS 4,780,729 1,107,483 23% 5,837,084 1,181,864 20% 03-RETIREMENT 5,608,884 3,976,431 71% 6,281,829 4,609,792 73% 04-MAINTENANCE AND OPERATIONS 21,324,656 3,449,989 16% 22,338,460 6,961,013 31% 05-CAPITAL OUTLAY - - 5,000 - 0%
06-DEBT EXPENSE 91,811 - 0% - -
TOTAL OPERATING EXPENDITURES 42,075,496 10,537,422 25% 45,435,373 14,897,367 33% 07-TRANSFERS OUT 12,253,396 (141,226) -1% 14,442,480 - 0% TOTAL EXPENDITURES & USES 54,328,892 10,396,196 19% 59,877,853 14,897,367 25% FY 2024-2025 FY 2025-2026
FISCAL YEAR 2025-26
First Quarter Budget Summary
Regular Salaries,
$11. M, 24%
Retirement, $6.3 M,
14%
Other Pay &
Benefits, $5.8 M,
13%
Maintenance &
Operations, $22.7 M,
49%
FY 2025-26 General Fund Expenditures
*Does not include Capital and Operational Transfer
Maintenance & Operations
• Fire Services
• West Comm
• Legal Services
• Contract Services
• Training
• Equipment
• Insurance
• On Budget, timing in payments
*excludes transfers
CC Discretionary,
$.1M, 1%
Supplies/Dues/Training,
$.29M, 1%
Rental/Lease
Equipment,
$.05M, 0%
Contract
Professional,
$4.29M, 19%
Insurance/Workers
Comp, $3.16M,
14%
Legal, $.59M, 3%
Maintenance,
$.19M, 1%
Equipment,
Materials,
other, …
IT Services,
$1.26M, 6%
Refuse, $1.4M, 6%
Fire Services,
$7.33M, 33%
West Comm,
$.98M, 4%
Intergovernmental
, $.58M, 3%
FISCAL YEAR 2025-26
First Quarter Budget Summary
12 Salaries and Benefits
FISCAL YEAR 2025-26
First Quarter Budget Summary
Next Steps
• Budget Planning & Development in Process
• Audit Update February 9
• March TBD CIP/Budget Proposed
• March Mid-Year Update
Jan Feb Mar Apr May June
Revenue and Expense Projections
Personnel Budget Development
Departmental Budget Preparation
Department CIP Preparation
City Manager Review
Preliminary Budget Preparation
Public Input and Engagement
City Council Review
Budget Adoption
Budget Development Timeline
Fiscal Outlook
• No Current Recession in 2026
• US Economic Policy
Uncertainty
• Unemployment Rising
• Expenditures Outpacing
Revenues
FISCAL YEAR 2025-26
First Quarter Budget Summary
First Quarter Budget Update
FISCAL YEAR 2025-26

Seal Beach City CouncilJanuary 26, 2026

Seal Beach City Council
January 26, 2026