Yorba Linda City Council
March 7, 2023

CITY COUNCIL/SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT AGENCY,

YORBA LINDA HOUSING AUTHORITY AND YORBA LINDA MUNICIPAL FINANCING AUTHORITY

JOINT MEETING
AGENDA

Tuesday, March 7, 2023, 6:30 p.m.

Council Chambers
4845 Casa Loma Avenue
This meeting is being broadcast live for airing on cable channel 3, channel 99 AT&T U-Verse and the city's website. By remaining in the room, you are giving your permission to be televised.

Pages

CALL TO ORDER
The City Council/Successor Agency to the Yorba Linda Redevelopment Agency will convene at 5:30 p.m. in the Council Chambers at 4845 Casa Loma Avenue.

ROLL CALL

ANNOUNCEMENT OF CLOSED SESSION ITEMS

CITY COUNCIL/SUCCESSOR AGENCY TO THE YORBA LINDA

REDEVELOPMENT AGENCY
A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION,

SIGNIFICANT EXPOSURE TO LITIGATION
Government Code Section 54956.9(d)(2) (3 Cases)
B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION,

INITIATION OF LITIGATION
Government Code Section 54956.9(d)(4) (1 Case)

PUBLIC COMMENT ON CLOSED SESSION ITEMS

CONVENE INTO CLOSED SESSION
RECESS

CALL TO ORDER
The City Council/Successor Agency to the Yorba Linda Redevelopment Agency, Yorba Linda Housing Authority and Yorba Linda Municipal Financing Authority will reconvene at 6:30 p.m. in the Council Chambers at 4845 Casa Loma Avenue, Yorba Linda.

ROLL CALL

PLEDGE OF ALLEGIANCE

INVOCATION
DEACON DENIS ZAUN, ST. MARTIN DE PORRES CATHOLIC CHURCH

CLOSED SESSION REPORT

INTRODUCTIONS & PRESENTATIONS

RECOGNITION OF UNSUNG HERO SYDNEY ROGERS
PUBLIC COMMENTS – ITEMS ON THE CONSENT CALENDAR OR ITEMS NOT

ON THE REMAINDER OF THE AGENDA
There is a five (5) minute maximum time limit for each individual addressing the legislative body during Public Comments and on all other items listed on the Agenda.

Whenever a group of persons wishes to address the City Council on the same subject matter, it shall be proper for the presiding officer to request that a spokesman be chosen by the group so as to avoid unnecessary repetitions before the City Council.

CONSENT CALENDAR
All matters listed under "CONSENT CALENDAR" are considered by the City Council/ Successor Agency to the Yorba Linda Redevelopment Agency, Yorba Linda Housing Authority and Yorba Linda Municipal Financing Authority to be routine and will be enacted by one motion approving the recommendation listed on the Agenda. There will be no separate discussion unless Members of the Council/Successor Agency, Yorba Linda Housing Authority and Yorba Linda Municipal Financing Authority or Staff request specific items to be removed from the Consent Calendar.

Recommendation:

It is recommended that the City Council approve the Consent Calendar.

1. WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON

THE AGENDA
Recommendation:

It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

2. ACCOUNTS PAYABLE CHECK REGISTER – MARCH 7, 2023 5
Recommendation:

It is recommended that the City Council receive and file the accounts payable check register dated March 7, 2023, in the amount of $1,760,125.90.

3. APPROVAL OF THE MINUTES OF THE FEBRUARY 21, 2023 CITY

COUNCIL / SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT

AGENCY MEETING
50 Recommendation:

It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency approve the minutes of the February 21, 2023 City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint meeting.

4. APPROVAL OF THE MINUTES OF THE FEBRUARY 28, 2023 CITY

COUNCIL / SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT

AGENCY SPECIAL MEETING
59 Recommendation:

It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency approve the minutes of the February 28, 2023 City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint special meeting.

5. TREASURER’S REPORT – DECEMBER 2022 62
Recommendation:

It is recommended that the City Council: 1.) Receive and file the attached monthly Treasurer’s Report; and 2.) Delegate investment responsibility to the City’s Finance Director / City Treasurer for a period of up to one year.

6. SECOND READING OF ORDINANCE NO. 2023-1106 ZONING CODE AMENDMENT 2023-01 TO AMEND CH 18.20, ARTICLE IX OF THE ZONING

CODE TO MODIFY REGULATIONS FOR ACCESSORY DWELLING UNITS 106
Recommendation:

It is recommended that the City Council adopt Ordinance No. 2023-1106 to amend Chapter 18.20, Article IX of the Yorba Linda Zoning Code to modify regulations for accessory dwelling units (ADUs) pursuant to State law.

7. CONSULTANT SERVICES CONTRACT WITH FM3 RESEARCH
ASSOCIATES, INC.
116
Recommendation:

It is recommended that the City Council approve the attached Consultant Services Agreement with FM3 Research Associates, Inc. (FM3) for the public opinion research assistance related to the 2021-2029 General Plan Housing Element.

8. BUDGET APPROPRIATION FOR SMALL BUSINESS RELIEF GRANT

PROGRAM
150
Recommendation:

It is recommended that the City Council approve a budget appropriation in the

amount of $150,000 towards the Community Development Block Grant Program for Small Business Relief.

9. COUNCIL COMMITTEE AND AGENCY REPORTS 152
Recommendation:

It is recommended that the City Council receive and file this report.

CITY MANAGER’S REPORT/MAYOR’S REPORT/MATTERS PRESENTED BY

COUNCILMEMBERS/ OTHER AGENCY REPORTS

ADMINISTRATIVE REPORTS

10. FISCAL YEAR 2022/23 MID-YEAR BUDGET UPDATE 155
Recommendation:

It is recommended that the City Council: 1.) Approve adjustments to the fiscal year 2022/23 operating budget as shown in the staff report; 2.) Receive and file the attached list of line-item budget transfers and supplemental budget appropriations for the first two quarters of the fiscal year (Attachment 2), as required by City Council Policy A-15 – Supplemental Budget and Line-Item Transfers; and 3.) Adopt Resolution No. 2023-5841 relating to the classification, compensation, and terms of employment of Miscellaneous and Mid-Management employees and amending Resolution No’s. 2021-5773 and 2021-5774.

11. 2021-2022 BLACK GOLD GOLF CLUB FISCAL YEAR IN REVIEW 179 Recommendation:

It is recommended that City Council: 1.) Appropriate $540,000 of Black Gold Golf Club FY 21/22 profits toward repayment of the golf course debt and, 2.) Authorize staff to establish a capital reserve fund for Black Gold Golf Club and appropriate a transfer in the amount of $511,688 to the fund.

CLOSED SESSION IF REQUIRED

ADJOURNMENT
The next regularly scheduled City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint meeting is March 21, 2023.

NOTE: ALL STAFF REPORTS AND RELATED ATTACHMENTS FOR ITEMS ON THIS AGENDA ARE ON FILE IN THE CITY CLERK’S OFFICE. AS AN ADDITIONAL SERVICE, THE CITY NOW PROVIDES THE STAFF REPORTS AND RELATED ATTACHMENTS ON THE CITY’S WEBSITE. PLEASE NOTE THAT IT IS NOT ALWAYS POSSIBLE TO EMBED ALL ATTACHMENTS AND MAPS. THUS, IF YOU REQUIRE A FULL AND COMPLETE COPY OF THE AGENDA PACKET, YOU SHOULD NOT RELY UPON THE WEBSITE MATERIALS ALONE.

IN COMPLIANCE WITH THE AMERICAN DISABILITIES ACT (ADA), THE CITY WILL MAKE EVERY REASONABLE ATTEMPT TO ACCOMMODATE ANY ATTENDEE OR PARTICIPANT AT THIS MEETING NEEDING SPECIAL ASSISTANCE BEYOND WHAT IS NORMALLY PROVIDED. PLEASE CONTACT THE CITY CLERK’S OFFICE AT (714) 961-7150 AT LEAST 48 HOURS PRIOR TO THIS MEETING TO INFORM US OF YOUR PARTICULAR NEEDS AND TO DETERMINE IF ACCOMMODATION IS FEASIBLE. PLEASE ADVISE US AT THE TIME YOU CALL IF SPECIAL ASSISTANCE IS REQUIRED TO ATTEND OR PARTICIPATE IN MEETINGS ON A REGULAR BASIS.

FINANCE DEPARTMENT
DATE: MARCH 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIANNA HONEYWELL, FINANCE DIRECTOR / CITY TREASURER SUBJECT: ACCOUNTS PAYABLE CHECK REGISTER – MARCH 7, 2023

RECOMMENDATION
It is recommended that the City Council receive and file the accounts payable check register dated March 7, 2023, in the amount of $1,760,125.90.

BACKGROUND
The Yorba Linda Municipal Code states that the accounts payable check register shall be presented to the City Council at the next scheduled meeting following the printing and mailing of checks.

DISCUSSION
This check register includes both City and Successor Agency weekly check runs for the weeks since the last City Council meeting. Additionally, a report of any wires sent by the City is included as an attachment to this report on an as-needed basis as well as a report on credit card transactions.

FISCAL IMPACT
There is no direct fiscal impact associated with this report. Sufficient funds are available in the approved budget to cover all the listed checks and wires.

1 CITY COUNCIL/SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT

AGENCY, YORBA LINDA HOUSING AUTHORITY AND YORBA LINDA MUNICIPAL

FINANCING AUTHORITY JOINT MEETING

MINUTES
February 21, 2023, 6:30 p.m.

Council Chambers
4845 Casa Loma Avenue
Councilmembers

Present:

Campbell, Haney, Hernandez, Lim, Rodriguez
Staff Present: Brantley, Brown, Christian, Kudron, Lai, Litfin, Lixey, Pulone, Walehwa
_____________________________________________________________________

CALL TO ORDER
The City Council/Successor Agency to the Yorba Linda Redevelopment Agency convened at 5:30 p.m. in the Council Chambers at 4845 Casa Loma Avenue.

ROLL CALL

ANNOUNCEMENT OF CLOSED SESSION ITEMS

CITY COUNCIL/SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT AGENCY
A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION,

SIGNIFICANT EXPOSURE TO LITIGATION
Government Code Section 54956.9(d)(2) (2 Cases)

2 City Attorney Todd Litfin stated that Councilwoman Janice Lim and Councilman Carlos Rodriguez recused themselves from one case under Anticipated Litigation, Significant Exposure to Litigation due to a potential conflict of interest.

B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION,

INITIATION OF LITIGATION
Government Code Section 54956.9(d)(4) (1 Case)
C. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code Section 54956.9(d)(1) (1 case)
Name of Case: Margo Day v. County of Orange, et al.

Case Number: 30-2020-01153798-CU-PO-CJC, Orange County Superior Court

PUBLIC COMMENT ON CLOSED SESSION ITEMS
None.

CONVENE INTO CLOSED SESSION
The City Council convened into Closed Session at 5:32 p.m.

RECESS

3 CALL TO ORDER
The City Council/Successor Agency to the Yorba Linda Redevelopment Agency, Yorba Linda Housing Authority and Yorba Linda Municipal Financing Authority reconvened at 6:30 p.m. in the Council Chambers at 4845 Casa Loma Avenue, Yorba Linda.

ROLL CALL

PLEDGE OF ALLEGIANCE
City Manager Mark Pulone

INVOCATION
Pastor Anne-Grethe Krogh Nielsen, The Danish Lutheran Church & Cultural Center

CLOSED SESSION REPORT
City Attorney Litfin stated that Councilwoman Lim and Councilman Rodriguez recused themselves from one case under Anticipated Litigation, Significant Exposure to Litigation due to a potential conflict of interest and there was no reportable action.

INTRODUCTIONS & PRESENTATIONS
INTRODUCTION OF STAFF MEMBER OCSD SGT. MATT PARRISH
Chief of Police Services Captain Joses Walehwa introduced Sgt. Matt Parrish to Council.

He said Sgt. Parrish is the new sergeant for Yorba Linda, following the reassignment of Sgt. Justin Chevalier. Captain Walehwa spoke of Sgt. Parrish's experience and Council welcomed him to the Yorba Linda team.

Captain Walehwa also announced that tomorrow, Deputy Amie Giusiana will promote to the rank of sergeant. He said she has served the City of Yorba Linda since 2016. Council congratulated Deputy Giusiana on her promotion and thanked her for her hard work.

PUBLIC COMMENTS – ITEMS ON THE CONSENT CALENDAR OR ITEMS NOT ON

THE REMAINDER OF THE AGENDA
Gabriella Rollins, Yorba Linda Arts Alliance Foundation Director, shared a calendar of upcoming events with Council. She provided an update on the Foundation and said this is the last week of their Watercolor Exhibit at Caduceus Medical Group at the Packing House. Thursday at 6:00 p.m. they will have a meet and greet with the artists and in March, a Digital Art and Photography Exhibit will be on display. She spoke of the Student Art Ambassador Program and urged those interested to attend the Foundation's meetings and events.

Anthony Johnson, Yorba Linda Chamber of Commerce Foundation President, spoke about the Foundation's upcoming events, including Principal for a Day on March 22nd,

4 First Responders Appreciation Breakfast on Wednesday, April 5th and said proceeds will go towards the Art Brice Memorial Scholarship fund. He encouraged the community to visit ylccfoundation.org for more information.

CONSENT CALENDAR
Mayor Gene Hernandez stated that he will abstain from Consent Calendar Item No. 2, out of an abundance of caution due to his involvement with Orange County Transportation Authority (OCTA) and the numerous contractors that may do work in the City.

Moved by Campbell
Seconded by Haney
It is recommended that the City Council approve the Consent Calendar.

AYES (5): Campbell, Haney, Hernandez, Lim, and Rodriguez CARRIED (5 to 0)

1. WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE AGENDA
It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

2. ACCOUNTS PAYABLE CHECK REGISTER – FEBRUARY 21, 2023
It is recommended that the City Council receive and file the accounts payable check register dated February 21, 2023, in the amount of $1,758,131.01.

3. APPROVAL OF THE MINUTES OF THE FEBRUARY 2, 2023 CITY COUNCIL /

SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT AGENCY

SPECIAL MEETING
It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency approve the minutes of the February 2, 2023 City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint special meeting.

4. APPROVAL OF THE MINUTES OF THE FEBRUARY 7, 2023 CITY COUNCIL /

SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT AGENCY

SPECIAL MEETING

5 It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency approve the minutes of the February 7, 2023 City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint special meeting.

5. APPROVAL OF THE MINUTES OF THE FEBRUARY 7, 2023 CITY COUNCIL /

SUCCESSOR AGENCY TO THE YORBA LINDA REDEVELOPMENT AGENCY

MEETING
It is recommended that the City Council/Successor Agency to the Yorba Linda Redevelopment Agency approve the minutes of the February 7, 2023 City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint meeting.

6. AUTHORIZATION TO BEGIN PREPARATIONS FOR THE 2023 JULY 4TH

FIREWORKS SHOW
It is recommended that the City Council direct staff to initiate planning efforts for the 2023 July 4th Fireworks Show and authorize staff to execute payment to Pyro Spectaculars, Inc. in an amount not-to-exceed $31,135.

7. COUNCIL COMMITTEE AND AGENCY REPORTS
It is recommended that the City Council receive and file this report.

PUBLIC HEARINGS

8. PUBLIC HEARING REGARDING 2022 WEED ABATEMENT ASSESSMENT OF LIENS
a. Open Public Hearing - Mayor Hernandez opened the public hearing. b. Staff Report
Senior Community Preservation Officer Mary Lewis provided a staff report on the item.

She said this is the last step of the multi-step 2022 Weed Abatement Program. She provided a brief overview of the 2022 efforts and reported that staff was not successful in obtaining compliance on one parcel. If City Council approves Resolution 2023-5839, staff will seek reimbursement of abatement costs by placing a lien on the property. c. Take Testimony - None
d. Close Public Hearing - Mayor Hernandez closed the public hearing. e. Make Determination
Moved by Haney
Seconded by Campbell

6 It is recommended that the City Council conduct a public hearing, and following the closure of the hearing, adopt Resolution No. 2023-5839 confirming the attached report regarding the costs of abatement of weeds, rubbish, refuse and dirt on or in front of certain property in the City and impose special assessments as liens on said property.

AYES (5): Campbell, Haney, Hernandez, Lim, and Rodriguez CARRIED (5 to 0)

9. ZONING CODE AMENDMENT 2023-01 FOR AMENDMENT TO CHAPTER 18.20,

ARTICLE IX OF THE YORBA LINDA ZONING CODE TO MODIFY REGULATIONS FOR

ACCESSORY DWELLING UNITS PURSUANT TO STATE LAW
a. Open Public Hearing - Mayor Hernandez opened the public hearing. b. Staff Report
Community Development Director David Brantley shared a summary of the changes reflected in the proposed ordinance in response to new state law. He said the proposed ordinance helps the City retain as much local control as permitted. Unlike the existing State law, the ordinance provides additional control on building height, landscape and lot coverage requirements and limits the number of ADUs allowable per property. It also limits the size and number of bedrooms, includes parking and owner-occupancy provisions and excludes their use for short-term rental purposes.

Planning Manager Nate Farnsworth added that two major changes in response to legislative bills Senate Bill 897 and Assembly Bill 2221, relate to building height and setbacks. He discussed the significant concerns with the provisions of these new laws and said that without the approval of the ordinance, state legislation would prevail. c. Take Testimony
Marek Suchenek, resident, expressed his opposition to Zoning Code Amendment 2023-

01. d. Close Public Hearing - Mayor Hernandez closed the public hearing. e. Make Determination
Moved by Haney
Seconded by Lim
It is recommended that the City Council conduct a public hearing to introduce for first reading Zoning Code Amendment 2023-01 through Ordinance No. 2023-1106 to amend Chapter 18.20, Article IX of the Yorba Linda Zoning Code to modify regulations for accessory dwelling units (ADUs) pursuant to State law.

7 AYES (5): Campbell, Haney, Hernandez, Lim, and Rodriguez CARRIED (5 to 0)
CITY MANAGER’S REPORT/MAYOR’S REPORT/MATTERS PRESENTED BY

COUNCILMEMBERS/ OTHER AGENCY REPORTS
Mayor Hernandez said little league commenced this past weekend and stated that he attended the inaugural Butterfly Garden & Natives event with The Art & Wilderness Institute's Flora and Fauna Club with the Islamic Center of Yorba Linda (ICYL) on February 18th. He spoke of plants that are beneficial for conservation and Aslam Dada, with the ICYL said the Center's objective is to go green and educate the congregation on conservation. Mayor Hernandez and Councilwoman Lim attended a critical mass shooting training at the Orange County Sheriff's Department training center geared toward elected officials. Mayor Hernandez spoke of the unsung heroes recognitions he will be presenting each month and urged the community to contact the City's communications division to recommend deserving residents. He shared that the City recently was recognized as the seventh Safest City in California for crime and quality of life on the Top 10 Safest Cities in California list. The City also received additional accolades for its award-winning schools, state-of-the-art library, public infrastructure and quality of life. He thanked law enforcement for their tremendous work in keeping the community safe. Mayor Hernandez concluded his comments by reminding residents that both the Parks and Recreation Department and Library offer a variety of fun classes, programs and events. He encouraged the community to visit the City website to learn more about what's happening around Yorba Linda.

Mayor Pro Tem Tara Campbell wished a happy 111th birthday to the Yorba Linda Woman's Club and thanked all the incredible women who have given back to the community. She announced their craft fair on March 11 - 12th at the Community Center.

Councilwoman Lim toured the Yorba Linda Public Library and shared some impressive statistics. She met with Spectrum to discuss broadband and coverage issues in Yorba Linda and will be touring the North SPA Navigation Centers in Buena Park and Placentia with Abigail Fachtmann, Field Representative for U.S. Representative Young Kim and local church leaders to discuss homelessness in Orange County. Councilwoman Lim concluded her comments by reminding seniors about the TRAILS (Taking Retired Adults Into Local Services) service and the senior meals and wellness programs through Parks and Recreation.

Councilwoman Beth Haney stated that she is serving as Director on the Foothill/Eastern Board of the Transportation Corridor Agency (TCA) and they recently approved a phone system cloud migration contract authorization. The cloud-based platform for TCA phones

8 will increase efficiency and said customer-sensitive information will not be stored on the cloud. She announced upcoming closures on the SR-91 fwy and encouraged residents to visit rctc.org to stay informed.

Councilman Rodriguez spoke about outdoor youth sports and South Coast Air Quality Management District's (AQMD) clean air efforts. He stated that he was appointed as Chair of the Technology Committee for the District, he also announced the 8-week South Coast Air Quality Management District Governing Board Summer Internship Program open to college students. The application deadline is March 17th.

City Manager Pulone reminded residents that the Bastanchury Road widening between Casa Loma and Eureka Avenue is underway and reminded motorists to drive cautiously.

ADMINISTRATIVE REPORT

10. ADVENTURE PLAYGROUND OPERATING GUIDELINES
Parks and Recreation Director Mike Kudron provided a PowerPoint presentation on the Adventure Playground renovation and said construction completion is anticipated by the end of March or early April. He spoke of the Adventure Playground Master Plan and provided an overview of the planned year-round use and anticipated summer programming. He discussed the proposed operating guidelines which take into consideration the school year calendar.

Richard de Bruijn, resident, inquired if small children will require an adult chaperone, if animals will be allowed and about emergency response.

Director Kudron indicated that children 10 years and younger will require an adult, no animals will be allowed and staff is proposing to have staff onsite equipped with first-aid kits for use when needed. Only service animals will be allowed.

Moved by Haney
Seconded by Campbell
It is recommended that the City Council approve the operating guidelines for Adventure Playground (Attachment A).

AYES (5): Campbell, Haney, Hernandez, Lim, and Rodriguez CARRIED (5 to 0)

9 ADJOURNMENT
Mayor Hernandez adjourned the meeting at 7:46 p.m. to the next regularly scheduled City Council/Successor Agency to the Yorba Linda Redevelopment Agency joint meeting on March 7, 2023.
_________________________
City Clerk

1 CITY COUNCIL SPECIAL MEETING

MINUTES
February 28, 2023, 5:30 p.m.

Council Chambers
4845 Casa Loma Avenue

CITY COUNCIL SPECIAL JOINT WORKSHOP

WITH PLANNING, PARKS & RECREATION, TRAFFIC, AND LIBRARY

COMMISSIONS
Councilmembers

Present:

Campbell, Hernandez, Lim, Rodriguez
Councilmembers

Absent:

Haney
Staff Present: Brantley, Brown, Christian, Honeywell, Lai, Larsen, Lixey, Pulone, Ruth, Walehwa
_____________________________________________________________________

CALL TO ORDER
The City Council, Planning, Parks & Recreation, Traffic, and Library Commissions convened the meeting at 5:33 p.m. in the Council Chambers at 4845 Casa Loma Avenue, Yorba Linda.

2 ROLL CALL
Planning Commission Members: Bernstein, Masterson, Singh Planning Commission Members Absent: Behura, Pease
Parks & Recreation Commission Members: McLure
Parks & Recreation Commission Members

Absent:

Battaglia, Dickerson, Garvey,
Hamilton
Traffic Commission Members: Cugini, Equitz, Johnson,
Phayakapong
Traffic Commission Members Absent: Rothans
Library Commission Members: Granitto, Hernandez, Tam
Library Commission Members Absent: Bent, Habashi

PLEDGE OF ALLEGIANCE
Councilwoman Janice Lim
PUBLIC COMMENTS – ON THE ITEM ON THE AGENDA
None.

CITY COUNCIL WORKSHOP WITH COMMISSIONS
Mayor Gene Hernandez welcomed new Commissioners, congratulated Commissioners that were re-appointed, and thanked those in attendance. He reviewed the City Council Policy C-15, Commission Appointments, the Roles of Commissioners, Expectations of Commissioners, Commissioner Requirements, Meetings & Agendas and discussed other business items for Commissioners.

Deputy City Attorney Joseph Larsen covered legal matters, including: the City's Ethics Ordinance, Code of Conduct for Elected and Appointed Officials, Whistleblower Protection and Email and Social Media use.

Council responded to questions and comments from the Commissioners and thanked all of the Commissioners for their willingness and dedication to serve.

3 ADJOURNMENT
Mayor Hernandez adjourned the meeting at 6:56 p.m. to the next City Council/Successor Agency to the Yorba Linda Redevelopment Agency Joint meeting on March 7, 2023. _________________________
City Clerk

Finance Department
DATE: March 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIANNA HONEYWELL, FINANCE DIRECTOR / CITY TREASURER PREPARED BY: SOPHIA LEUNG, FINANCIAL SERVICES MANAGER
SUBJECT: TREASURER’S REPORT – DECEMBER 2022

RECOMMENDATION
It is recommended that the City Council:

1. Receive and file the attached monthly Treasurer’s Report; and

2. Delegate investment responsibility to the City’s Finance Director / City Treasurer for a period of up to one year.

BACKGROUND
Sound investment practices are essential to the City’s fiscal management. The Finance Department is responsible for managing the City’s investment portfolio, focusing first on the safety of investments and then on liquidity and an appropriate rate of return. State law requires the City Treasurer to submit a monthly report to the City Council reflecting the receipts, disbursements, and fund balances for each City fund. The attached Treasurer’s Report reflects the summarized inflow and outflow of cash for the month of December 2022.

This report also requests approval of the routine authorization for the City Treasurer to be delegated authority to invest and reinvest the City’s funds or to sell or exchange purchased securities, as required by Government Code Section 53607.

FISCAL IMPACT
There is no direct fiscal impact associated with this report. Investment earnings from the City’s investment portfolio are distributed to the City’s various funds in proportion to the amount of cash attributable to each Fund.

ATTACHMENTS

1. Treasurer’s Report – December 2022

Treasurel,s Report
Summary of lnvestment Portfol¡o Holdings
December 31, 2022
Cash and Money Market Accounts
Bank of the Westl
US Bank2
Petty Cash
Totel Cash and Money Market Accounts
Local Agency lnvestment Fund (LAIF)
Californla Asset Managoment Program (CAMP)
Managêd lnvestment Portfolio
U.S. Treasury Bonds / Notes
U.S. Government Agency Securit¡es
U.S. Government Agency Collateralized Mortgage
Supra-National Agency Bonds / Notes
Mun¡cipal Bonds / Notes
Corporate Noles
Certif¡cates of Deposit
Asset-Backed Secur¡t¡es
Total Managed lnvestment Portfol¡o
City Operat¡ons
lnvestment Safekeeping
Petty Cash at C¡ty Facilities
Short-Term lnvestment
Short-Têrm lnvestment
Medium-Tem lnvestment
Med¡um-Term lnvestment
Medium-Term lnvestment
Medium-Term lnvêstment
Medium-Term lnvestment
Medium-Term lnvestment
Medium-Term lnveslment
Medium-Term lnveslmenl

0.55%

4.06o/o
0,00%
$ 6,835,625.95
271,711.52
12,170.00
6,835,625.95
271,71'1.52
12,170.00
6,835,625.95
271,711.52
12,170.O0
$ $

0.68%

2.17%
430%
7 ,119,507.47
16,473,091.41
9,398,734.52
21,919,295.14
4,656,983.30
695,516.96
1,252,978.55
3,305,864.50
12,661,485.40
81 5,000.00

3.628.653.59
7,119,507 .47
15,473,091.41
9,398,734.52
7 ,'t19,507 .47
15,473,091.41
9,398,734.52

1.70o/o
Q.75o/o

2.32o/o

0.40o/o

1.03o/o

1.95o/o

3.36%
't.490/o

1.620/0
2'l,82'l,970.92
4,666,750.88
685,710.76
1,254,297.91
3,305,457.60
12,578,074.03
815,000.00
3,628,822.20
20,460,968.69
4,302,149.99
660,857.1 I
1,1 92,059.53
3,075,612.80
11,878,766.82
811,277.30
3,498,211.40
$ 48,935,777.¿14 $ 48,756,084.30 $ 45,879,903.71
Fiscal Agent Money Market Accounts
U.S. Bank Federated Govemment Obligation Fund
U.S. Bank Federated Govemment Obl¡gation Fund
Total Fiscal Agent Money Market Accounts
Successor Agency Bond Funds
Library Bond Funds

4.11%

4.11o/o
4,11o/o
6,264.79
340.20
6,604.99
6,264.79
340.20
6,604.99
6,264.79
340.20
6,604.99
Total Cash and lnveslments $ 80,933,715.83 $ 80,754,022.69 $ 77 ,877 ,842.10 1 lnterest eamed on the City's deposits w¡th Bank of the West is lim¡ted to the total amount of bank¡ng fees charged each month. 2 This is the balance of the funds cunently under managemenl by the C¡ty's extemal investment advisor, PFM, that are not currently invested.

Gomposition of Pooled lnvestment Portfolio Pooled lnvestment Portfolio Balances by Fund 1o/o 4o¡ 34%
34o/o
. Cash and Other Liqu¡d
Funds
I U.S. Government
Obligations
" Supra-National Agency
Bonds / Notes
l%. Mun¡cipal Bonds / Notes
. Corporate Notes
r Commercial Paper
. Certificates of Deposit
" Asset-Backed Securities
¡ General Fund (lncluding
Operating Reserves)
¡ Special Reserve Funds
¡ Library Funds
r Landscepe Ma¡ntenance
Assessmenl District Fund
* Successor Agency Funds
Other Funds
It has bêen ver¡fied thât the City's ¡nveslment portfolio is ¡n confom¡ty with the City's investment policy. This Treasurefs Reporl accurately reflects all cash and investments of the C¡ty as of the month-ended date shown above. Cash on hand is projected to be adequate to fund all anticipated expenditures for the next six months.

Verif¡ed By:

Soph¡a Leung, F¡nanc¡al Services Manager

Approved By:

F¡nance Director / City

Cash Balances by Fund r
December 31,2022
Beginning
Balance
Ending
F und Receipts Disbursements Balance
Generaf Fund and Special Reserve Funds
101 General Fund (lncluding Operat¡ng Reserves) '102 Special Reserve Funds Total General Fund and Special Reserve Funds
Library Special Revenue Funds
202 Library Fund
203 Librâry Reserve Fund
204 Library Bond Fund
Total L¡brary Special Revenue Funds
Other Special Revenue Funds
201 Landscape Maintenânce Assessment District Fund
205 Affordable Housing Fund
206 Mortgage Assistance Program Fund
207 Miscellaneous Grants Fund
208 Community Development Block Grant (CDBG) Fund
209 Air Quality Management District (AQMD) Fund
210 Public, Educat¡onal, and Government Access (PEG) Fund 211 Gas Tax Fund
212 Measure M Fund
213 Road Maintenance and Rehab¡litation Fund
214 Traffic Safety Fund
2'15 Citizens'Option for Public Safety (COPS) Fund
216 SB-2 Fund
218 ARPA Fund
Total Other Spec¡al Revenue Funds
Capital Projects Funds
401 Capital lmprovements Fund
402 Park ln-Lieu Fund
403 Master Plan of Drainage Fund
404 Traffic Mitigat¡on Fund
405 Traffic Signal lmprovement Fund
406 Parking ln-Lieu Fund
407 L¡ght¡ng & Signal Projects
Total Cap¡tal Projects Funds
Enterprise Funds
501 Black Gold Golf Course Fund
Total Enterpr¡se Funds
Agency Funds
701 Miscellaneous Trust & Agency Funds
702 SuccessorAgencyFunds
Total Agency Funds
lnvestment Earnings and Amortization Pending Distribution'z

10. 946,071.56
33,125,759.03 10,726,846.70 (7,601,876.36) 36,250,729.37 $ 22,179,687.47 $ 5,726,846.70
5,000,000.00
$ (7,601,876.36) $ 20,304,657.81
15,946,071 .56
3,666,516.02
29,384.49
576.76
2,554,339.03
500,019.51

0.95 (1,139,963.45) 5,080,891.60
529,404.00
577.71
3,696,477.27 3,054,359.49 (1,r 39,963.45) 5,610,873.31
6,352,277.46
1,866,866.94
82,518.74
254,464.00
63,118.20
1,128,07't.64
238,061.20
5,223,242.01
3,737,695.58
1,461,357.02
14,162.33
1 07,985.1 2
64,043.00
2,700,000.00
3,806,514.14
1,220.94

54.79 27,147.44
23,307.',t3
150.84
150,799.42
245,139.16
I 18,938.88
22,578.44
(r,t 06,082.99)
(346,s31.30)
(78,286.0e)
(92,886.00)
9,052,708.61
1,868,087.88
82,573.53
(e2,067.30)
11,979.55
1,151,378.77
238,212.04
5,374,041 .43
3,982,834.74
1,580,295.90
14,'t62.33
130,563.56
(28,843.00)
792.61 2,701,792.61
23,293,863.24 4,397,643.79 (1,623,786.38) 26,067,720.65 (1,435,398.69)
2,29't,721 .44
5,569,910.75
601 ,915.12
1,027,255.63
28, r 98.53
1,081,378.4'l
204,516.11
3,576.31
7,599.06
682.02

18.72 7't7.96
(3,205,053.57)
2,496,237.55
5,573,487.06
609,514.18
1,027,937.65
28,217.25
1,082,096.37
(1 ,769,654.88)
9,164,981.19
1,429,424.67
217,110.18 (1,769,654.88)
960,395.60 (776,621.65) 1,6r 3,198.62
7,612,436.49
1,429,424.67
'I,166,517.88
2,094,647.76
960,395.60
213,223.91
1,529.18
(776,62r.65) 1,613,198.62
(95,042.89) 1,284,698.90
2,096,176.94
3,261,165.64
291,937.57
214,753.09 (95,042.8e)
(73,749.161
3,380,875.84
2',t8,',t88.41
Total Cash - All Funds 574 263,608.61 s 19,571,108.85 $ (13,080,694.77) $ 80,754,022.69 1 The cash balances by fund shown in the table above are prel¡m¡nary and may not reflect adjust¡ng journal entries. 2 lnvestment earnings and amortizations are recorded ¡n a hold¡ng account monthly, but are allocated to the City's various Funds quarterly.

ORDINANCE NO. 2023-1106

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YORBA

LINDA, CALIFORNIA APPROVING ZONING CODE TEXT AMENDMENT
ZCA 2023-01 FOR A COMPREHENSIVE ZONING CODE AMENDMENT
WHEREAS, Senate Bill 897 and Assembly Bill 2221 were signed into law on September 28, 2022, by the Governor of the State of California and effective January 1, 2023, amending Government Code Section 65852.1, 65852.2, and 65852.22 to require that all accessory dwelling unit ordinances that fail to meet the requirements of the legislature be considered null and void upon the effective date, unless the City adopts an ordinance that complies with State law; and
WHEREAS, in response to and in accordance with the provisions of Senate Bill 897 and Assembly Bill 2221, on January 11, 2023, the City of Yorba Linda initiated Zoning Code Amendment 2023-01, in accordance with Section 18.36.610 of the Yorba Linda Municipal Code, to amend Chapter 18.20, Article IX, Accessory Dwelling Units, of the Yorba Linda Municipal Code to comply with State requirements for Accessory Dwelling Units; and WHEREAS, Zoning Code Amendment 2023-01 is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17, in that CEQA is not applicable to the adoption of an ordinance by a city or county to implement the provisions of Section 65852.1, Section 65852.2, or Section 65852.22 of the California Government Code; and
WHEREAS, Zoning Code Amendment 2023-01 is not a “major amendment” to a land use planning policy document as defined in the Yorba Linda Right-to-Vote Amendment (Measure B) and, therefore, is not subject to the approval of a majority vote of the electorate of the City to become effective; and
WHEREAS, pursuant to Section 18.36.620 of the Yorba Linda Municipal Code, a duly noticed public hearing on Zoning Code Amendment 2023-01 was held by the Planning Commission on January 15, 2023; and
WHEREAS, pursuant to Section 18.36.620 of the Yorba Linda Municipal Code, a duly noticed public hearing on Zoning Code Amendment 2023-01 was held by the City Council on February 21, 2023.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YORBA LINDA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Recitals. The foregoing recitals are true and correct and are incorporated herein as though set forth in full.

SECTION 2: Authority. This Ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including but not limited to Article XI, Section 7 of the California Constitution.

-2-
SECTION 3: Amendment. Title 18 (Zoning) Chapter 18.20 (Special Uses and Conditions) Article IX (Accessory Dwelling Units) of the Yorba Linda Municipal Code is hereby amended in its entirety to read as contained within Exhibit “A” to this Ordinance.

SECTION 4: CEQA Determination. In adopting this Ordinance, the City Council finds that the adoption of the Zoning Code Text Amendment is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.17, which provides that the adoption of an ordinance to implement Government Code Section 65852.1 or Section 65852.2 is statutorily exempt from the California Environmental Quality Act (CEQA).

SECTION 5: Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional.

SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days after its passage and adoption. Within fifteen (15) days of the date of adoption of this Ordinance, the City Clerk shall post a copy of said Ordinance in places designated for such posting and shall certify to the same. The City Clerk shall certify the passage of this Ordinance and shall cause the same to be published as required by law.

-3-
PASSED and ADOPTED by the City Council of the City of Yorba Linda at a regular meeting held on the March 7, 2023.
_________________________________

GENE HERNANDEZ

MAYOR, CITY OF YORBA LINDA
ATTEST:
______________________________

MARCIA BROWN

CITY CLERK, CITY OF YORBA LINDA
APPROVED AS TO FORM:
______________________________
TODD O. LITFIN

CITY ATTORNEY, CITY OF YORBA LINDA

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF YORBA LINDA )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California hereby certify that the foregoing Ordinance was duly adopted at a regular meeting of the City Council of the City of Yorba Linda, held at the March 7, 2023, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
__________________________________

MARCIA BROWN

CITY CLERK, CITY OF YORBA LINDA

Article IX. Accessory Dwelling Units

18.20.800 - Purpose and intent.

In accordance with California
Government Code Sections 65852.1,
65852.2, and 65852.22, the City intends
for this article to provide for the
creation, under limited circumstances, of
an accessory dwelling unit on property
zoned for residential use. The purpose of
this article is to provide for additional
housing opportunities for development
of low- and moderate-income housing
for the community in keeping with its
Housing Element and State law, while at
the same time retaining the character of
the City's single-family neighborhoods.

In doing so, and to ensure that no
avoidable adverse impacts on the public
health, safety, and general welfare result
from the creation of an accessory
dwelling unit, this article prescribes
standards for the approval of such units
that limit the circumstances under which
accessory dwelling units may be
permitted consistent with the purpose
and intent of this article.

18.20.810 - General Provisions.

A. The following definitions shall
apply to Article IX:

1. “Accessory dwelling unit” means
an attached or a detached residential
dwelling unit that provides complete
independent living facilities for one or
more persons and is located on a lot with
a proposed or existing primary
residence. It shall include permanent
provisions for living, sleeping, eating,
cooking, and sanitation on the same
parcel as the single-family or
multifamily dwelling is or will be
situated. An accessory dwelling unit also
includes the following:
a. An efficiency unit, as defined in
Section 17958.1 of the Health and Safety
Code.
b. A manufactured home, as
defined in Section 18007 of the Health
and Safety Code.

2. “Accessory structure” means a
structure that is accessory and incidental
to a dwelling located on the same lot.

3. “Junior accessory dwelling unit”
means a unit that is at least 150 square
feet and no more than 500 square feet in
size and contained entirely within a
single-family residence. A junior
accessory dwelling unit may include
separate sanitation facilities, or may
share sanitation facilities with the
existing structure.

4. “Living area” means the interior
habitable area of a dwelling unit,
including basements and attics but does
not include a garage or any accessory
structure.

5. “Passageway” means a pathway
that is unobstructed clear to the sky and
extends from a street to one entrance of
the accessory dwelling unit.

6. “Proposed dwelling” means a
dwelling that is the subject of a permit
application and that meets the
requirements for permitting.

7. “Public transit” means a location,
including, but not limited to, a bus stop
or train station, where the public may
access buses, trains, subways, and other
forms of transportation that charge set
fares, run on fixed routes, and are
available to the public.

8. “Tandem parking” means that
two or more automobiles are parked on a
driveway or in any other location on a
lot, lined up behind one another.

B. An accessory dwelling unit that
conforms to the requirements of this
Article shall not be considered to exceed
the allowable density for the lot upon
which such unit is proposed to be
established and shall be deemed a
residential use that is consistent with the
existing general plan and zoning
designations for the lot.

C. In accordance with State law, this
Article shall not be considered in the
application of any local ordinance,
policy, or program to limit residential
growth.

18.20.820 - Ministerial action.

Applications for accessory dwelling
units that are consistent with the
provisions of this Article will be
considered as a ministerial action
requiring the issuance of a building
permit. The Community Development
Director shall approve or disapprove of
an application for an accessory dwelling
unit standard permit within 60 days after
receiving the complete application
except when the accessory dwelling unit
is proposed in conjunction with a
proposed new single-family dwelling
unit, in which case the Community
Development Department may delay
acting on the accessory dwelling unit
until the single-family dwelling is
approved. If the applicant requests a
delay, the 60-day time period shall be
tolled for the period of the delay.

Building permits shall only be issued
with finding that the plan for the
accessory dwelling unit complies with
all requirements of the zoning
regulations contained in this section
herein.

18.20.830 - Applicability.

The applicant for an accessory
dwelling unit shall be the owner and
occupant of the primary dwelling of the
lot on which the accessory dwelling unit
is proposed to be established, or
his/her/their authorized agent.

Additionally, the lot on which the
accessory dwelling unit is proposed to be
established shall:

A. Be located in a zoning district
allowing for residential dwelling units.

B. Contain, or proposes to establish,
one residential dwelling unit, which is
the primary dwelling, and which
conforms to all applicable zoning
regulations for the zoning district in
which the lot is located except as
modified herein. The City shall not
require the correction of nonconforming
zoning issues as a condition for approval
of a permit application for the creation
of an accessory dwelling unit or a junior
accessory dwelling unit.

C. Have no more than a maximum
of one accessory dwelling unit and one
junior accessory dwelling unit located on
it at any time.

18.20.840 – Standards and criteria for
accessory dwelling units within
existing structures
A. The following standards and
criteria shall apply to all accessory
dwelling units to be located within the
proposed or existing space of a singlefamily dwelling, or within existing accessory structures, including garages,
storage areas, or similar uses,:

1. The accessory dwelling units is
located within the proposed space of a
new single-family dwelling or existing
space of a single-family dwelling or
accessory structure and may include an
expansion of not more than 150 square
feet beyond the physical dimensions as
the existing structure to accommodate
ingress and egress only.

2. Maintains independent exterior
access from the proposed or existing
single-family dwelling;

3. Maintains sufficient side and rear
setbacks for fire and safety as
determined by the Building Official. No
setback shall be required for an existing
living area or accessory structure or a
structure constructed in the same
location and to the same dimensions as
an existing structure that is converted to
an accessory dwelling unit or to a
portion of an accessory dwelling unit.

B. Multiple accessory dwelling
units within the portions of existing
multifamily dwelling structures that are
not used as livable space, including, but
not limited to, storage rooms, boiler
rooms, passageways, attics, basements,
or garages are permitted, provided each
unit complies with state building
standards for dwellings. At least one
accessory dwelling unit shall be
permitted within multifamily dwelling
structures and the total number of
accessory dwelling units within
multifamily dwelling structures shall not
exceed 25 percent of the existing
multifamily dwelling units.

No more than two detached accessory
dwelling units that are located on a lot
that has an existing multifamily dwelling
may be permitted and are subject to the
height limits established in Section

18.20.850 and four-foot rear yard and
side setbacks.

18.20.850 - Standards and criteria for
accessory dwelling units.

The following standards and criteria
shall apply to all proposed accessory
dwelling units. Notwithstanding these
requirements, all residential lots shall be
permitted to develop at least one 800
square foot attached or detached
accessory dwelling unit that maintains
side and rear yard setbacks of at least
four feet and complies with the
following height limits:
• Sixteen feet (16’) for a detached
ADU on a lot with and existing or
proposed single-family or multifamily dwelling unit
• Eighteen feet (18’) for a detached
ADU on a lot with an existing or
proposed single-family or multifamily dwelling unit which is within one-half mile of a major transit stop
or high-quality transit corridor plus
an additional two feet (2’) in height
to accommodate a roof pitch on an
ADU that is aligned with the roof
pitch of the primary dwelling unit.
• Eighteen feet (18’) for a detached
ADU on a lot with an existing or
proposed multi-family, multi-story
dwelling.
• Twenty-five feet (25’) for an
attached ADU; however, such ADUs
are limited to no more than twostories in height.

A. Location on lot. An accessory
dwelling unit may be permanently
attached or detached from the primary
dwelling.

B. Height, setback, building
separation, landscaping and lot coverage

requirements. Unless otherwise specified
in this Article, an accessory dwelling
unit, including conversion of existing
space within a primary dwelling, shall
comply with the height, setback,
building separation, landscaping and lot
coverage standards of the applicable
zoning district in which the lot is
located.

The building lot coverage limitation
shall include all structures, including the
main residence, the accessory dwelling
unit, garages, etc. The totality of the
structure(s) on the lot shall not exceed
the allowable building lot coverage
specified in the zone in which the
accessory dwelling unit is proposed.

An attached or detached accessory
dwelling unit shall be limited to onestory, unless the attached or detached accessory dwelling unit complies with
all provisions and requirements of
Section 18.10.100.B and Section

18.20.850.E.

C. Size Limitations.

1. Accessory dwelling units shall not
exceed :
1,000 square feet in size; however,
attached accessory dwelling units may
exceed these size limitations provided
that they do not exceed 50 percent of the
existing primary dwelling’s living area
square footage and shall not exceed one
(1) bedroom for ADUs which are 750
square feet or less and shall not exceed
three (3) bedrooms for ADUs more than
750 square feet;

2. Notwithstanding the size
limitation in Subsection C.1, the
Planning Commission may approve
through Design Review any accessory
dwelling unit exceeding these size
limitations up to 1,200 square feet in size
on lots of at least 15,000 square feet in
size based on building design, roof slope
and design, location, topography, or
other criteria.

3. Accessory dwelling units shall be
a minimum of 150 square feet.

4. The minimum bedroom size shall not
be less than 70 square feet.

D. Parking. A minimum of one
parking space shall be required for an
accessory dwelling unit. This parking
space may be provided as tandem
parking on a driveway. Notwithstanding
this parking requirement, the City shall
not impose parking standards for an
accessory dwelling unit in any of the
following instances:

1. The accessory dwelling unit is
located within one-half mile walking
distance of public transit.

2. The accessory dwelling unit is
located within a historic district.

3. The accessory dwelling unit
occurs within the proposed or existing
primary residence or within an accessory
structure.

4. When on-street parking permits
are required but not offered to the
occupant of the accessory dwelling unit.

5. When there is a car share vehicle
located within one block of the
accessory dwelling unit.

Additionally, when a garage,
carport, or covered parking structure is
demolished in conjunction with the
construction of an accessory dwelling
unit, no off-street replacement parking
spaces shall be required.

E. Setbacks. All accessory dwelling
units shall maintain the front yard
setback for the applicable zoning district
in which the lot is located. However,

accessory dwelling units shall maintain a
minimum four (4) foot setback on the
side and rear yards for an accessory
dwelling unit not converted from an
existing structure or a new structure
constructed in the same location and to
the same dimensions as an existing
structure.

Accessory dwelling units that are larger
than the provisions established in
Section 18.20.850.C.1 or are larger than
one-story in height shall be subject to the
same setback requirements as the
primary dwelling.

F. Same ownership required.

Accessory dwelling units shall not be
rented or leased for less than 30-
consecutive days, and shall not be sold
or owned separately from the primary
dwelling.

Owner occupancy required. The owner
of the property on which the accessory
dwelling unit is located shall reside in
either of the dwelling units on the
property as the principal residence as
long as the condition of the accessory
dwelling unit remains on the property.

This is a perpetual requirement that runs
with the land, and a restrictive covenant
establishing this requirement shall be
recorded, with proof of recordation
presented to the Community
Development Director, prior to issuance
of a final building permit for the
accessory dwelling unit. However, this
owner-occupancy provision shall not be
required for an accessory dwelling unit
permitted between January 1, 2020, to
January 1, 2025, per state law.

In circumstances where the property
owner does not reside in either the
principal residence or an accessory
dwelling unit on the property, the
property owner shall provide the City
with the name of a local contact person
who is available 24-hours a day, seven
days a week, and is able to remedy any
issues that may arise that are may be in
violation of the City’s Municipal Code.

G. Mobile homes/recreational
vehicles. Neither the primary dwelling
nor the proposed accessory dwelling unit
shall be a mobile home or recreational
vehicle, unless as otherwise specified
herein.

H. Exterior design. The design of
the accessory dwelling unit, including,
but not limited to, building form,
materials, exterior finishes, color
scheme, and landscaping shall be
compatible with the primary dwelling.

I. Street visibility. To maintain the
single-family residential character of the
street, the accessory dwelling unit should
be designed and built in such a manner
as to minimize its visibility (to the extent
feasible) from the public right-of-way.

J. Exterior entrances and stairways.

To maintain the single-family residential
character of the street, there shall not be
more than one exterior entrance on the
front or on any street side of the
accessory dwelling unit. Additionally, no
exterior stairway shall be located on the
front or on any street side of the
accessory dwelling unit.

K. Two Story Accessory Dwelling
Units. An attached or detached accessory
dwelling unit shall be required to comply
with the provisions and requirements of
Section 18.10.100.B, with the exception
of any single-story accessory dwelling
unit that complies with the height

restrictions established in Section

18.20.850.

L. Unless otherwise specified by the
provisions of this chapter or State law,
accessory dwelling units shall be
required to comply with all provisions of
the underlying zoning designation and
all regulations required for the primary
single-family dwelling unit, including
but not limited to all applicable building
and construction requirements.

M. ADUs and JADUs shall not be
used as community care facilities,
boarding houses, or any other use not
expressly permitted by this Article.

18.20.860 – Standards and criteria for
junior accessory dwelling units
The following requirements shall
apply to all junior accessory dwelling
units:

A. Only one (1) junior accessory
dwelling units may be constructed per
residential lot zoned for single-family
residences with a single-family residence
built or proposed to be built, on the lot.

B. Owner-occupancy shall be
required in the single-family residence in
which the junior accessory dwelling unit
will be permitted. The owner may reside
in either the remaining portion of the
structure or the newly created junior
accessory dwelling unit.

C. A junior accessory dwelling unit
may only be permitted to be constructed
within the walls of a proposed or
existing single-family residence.

D. A junior accessory dwelling unit
shall include a separate entrance from
the main entrance to the proposed or
existing single-family residence.

E. A junior accessory dwelling unit
shall include an efficiency kitchen,
which shall include all of the following:

1. A cooking facility with
appliances.

2. A food preparation counter and
storage cabinets that are of reasonable
size in relation to the size of the junior
accessory dwelling unit.

F. No additional parking is required
for a junior accessory dwelling unit.

G. The following are perpetual
requirements that run with the land, and
a restrictive covenant establishing the
following requirements shall be
recorded, with proof of recordation
presented to the Community
Development Director, prior to issuance
of a final building permit for the junior
accessory dwelling unit:

1. A prohibition on the sale of the
junior accessory dwelling unit separate
from the sale of the single-family
residence, including a statement that the
deed restriction may be enforced against
future purchasers.

2. A restriction on the size and
attributes of the junior accessory
dwelling unit that conforms with this
Article.

3. A restriction that the owner of
the property on which the junior
accessory dwelling unit is located shall
reside in one of the dwelling units on the
property as the principal residence as
long as the condition of the junior
accessory dwelling unit remains on the
property.

18.20.870 - Notification.

The applicant shall provide the
Community Development Director with
property ownership information of the
adjacent and contiguous parcels.

Additionally, the applicant shall provide
a radius map drawn on the Assessor’s
Parcel Map, indicating the adjacent and
contiguous parcels.

18.20.880 - Appeals.

An applicant or an interested and
affected person may file an appeal of a
determination to approve or deny an
application for an accessory dwelling
unit to the Planning Commission to
determine adherence to the standards in
this Article. Any such appeal shall be in
writing and accompanied by payment of
the fee for appeals, as established by
City Council resolution. The appeal shall
state the grounds for the appeal and shall
be filed with the City Clerk within
fifteen (15) calendar days of the
determination. The Planning
Commission shall, within thirty (30)
calendar days after the appeal is filed,
consider the appeal, without a public
hearing, and decide the matter as soon
thereafter as is reasonably feasible.

Notice of the appeal shall be given in
accordance with Section 18.20.870.

18.20.880 – Fees
A. The City shall not impose any
impact fee upon the development of an
accessory dwelling unit less than 750
square feet. Any impact fees charged for
an accessory dwelling unit of 750 square
feet or more shall be charged
proportionately in relation to the square
footage of the primary dwelling unit.

B. The Community Development
Director shall waive all planning
processing and building plan check fees
for an accessory dwelling unit or junior
accessory dwelling unit in any of the
following situations:

1. The applicant voluntarily records
a perpetual restrictive covenant running
with the land that establishes that the
owner of the property on which the
accessory dwelling unit and/or junior
accessory dwelling unit is located shall
reside in one of the dwelling units on the
property as the principal residence as
long as the condition of the accessory
dwelling unit and/or junior accessory
dwelling unit remains on the property.

This covenant shall be recorded, with
proof of recordation presented to the
Community Development Director, prior
to issuance of a final building permit for
the accessory dwelling unit.

2. When an existing garage or
carport is converted to an accessory
dwelling unit and/or junior accessory
dwelling unit and the applicant
voluntarily provides replacement
parking spaces for at least two on-site
covered parking spaces for the primary
residence in conformance with Section

18.22.030.

COMMUNITY DEVELOPMENT DEPARTMENT
DATE: MARCH 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DAVID BRANTLEY, AICP

DIRECTOR OF COMMUNITY DEVELOPMENT
SUBJECT: CONSULTANT SERVICES CONTRACT WITH FM3 RESEARCH ASSOCIATES, INC.

RECOMMENDATION
It is recommended that the City Council approve the attached Consultant Services Agreement with FM3 Research Associates, Inc. (FM3) for the public opinion research assistance related to the 2021-2029 General Plan Housing Element.

BACKGROUND
The City’s 2021-2029 General Plan Housing Element was adopted by the City Council on February 9, 2022, and subsequently was conditionally certified by the State Department of Housing and Community Development (HCD) for compliance with state law on April 8, 2022.

The Housing Element includes a Residential Sites Inventory outlining the proposed rezone plan for meeting the City’s Regional Housing Needs Allocation (RHNA). The rezone plan, in large part, is subject to majority voter approval pursuant to the Yorba Linda Right-to-Vote Amendment (aka Measure B). Accordingly, a related measure (i.e., Measure Z) seeking to affirm the rezone plan appeared on the November 2022 election ballot. Measure Z was not supported by the local electorate and was defeated by a large margin (i.e., 75% against).

State certification of the City’s Housing Element is contingent upon ultimate voter support for a rezone plan that provides sufficient housing capacity for meeting the City’s RHNA (2,415 units). To preserve certification, the Housing Element includes a requirement (i.e., Program 8) to conduct a 2
nd Measure B election by November 2024 to make-up any shortfall of sites in the event of an unsuccessful vote in 2022. Program 8 contemplates making adjustments to the rezone plan to respond to community concerns for review and approval by HCD prior to placement on the 2024 election ballot.

Following the November 2022 election result, Community Development staff began working to prepare a path forward for consideration by the community and City Council, since remaining in compliance with state housing law is critically important. Yorba Linda, along with fourteen (14) additional Orange County local government agencies, obtained HCD certification of its Housing Element last year. To date, the remaining twenty (20) other local agencies continue to work with HCD to obtain certification. Among other benefits, obtaining

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and/or retaining state certification preserves local eligibility for numerous state funding programs, insulates the City from related legal challenges, and prevents loss of local control due to other mechanisms in place to further the state’s interest in solving the housing crisis (e.g., “Builder’s Remedy,” suspension of local planning and building permitting authority, etc.). Gaining better understanding of the community concerns underlying the defeat of Measure Z will assist the City in its effort to adjust the rezone plan.

DISCUSSION
The City of Costa Mesa has a growth control regulation like the City of Yorba Linda’s Measure B. Thus, Costa Mesa had a similar ballot measure related to their proposed Housing Element rezone plan on the November 2022 ballot for consideration by Costa Mesa voters (i.e., Measure K). Measure K was approved by the Costa Mesa electorate, thereby allowing their rezone plan to move forward for consideration by HCD. To gain important insight into the community’s concerns related to their rezone plan and associated Measure K, Costa Mesa employed the services of FM3 Research Associates, Inc. FM3 assisted Costa Mesa by conducting public opinion research and focus group data that gauged community preferences related to proposed housing sites, densities, and zoning mechanisms intended to facilitate RHNA compliance.

FM3 has a wide range of experience conducting research related to housing issues both nationally and within Orange County. Their keen insight into the sensitivities of local Orange County residents, including their most recent successful experience working with the City of Costa Mesa, would help the City of Yorba Linda to better understand Yorba Linda residents’ unique concerns and desires in relation to the City’s efforts to revise the Housing Element rezone plan in preparation for a future November 2024 ballot measure. The attached proposal outlines a 3-pronged approach (i.e., Initial Focus Groups, Baseline Survey and Follow-up Survey) to gathering valuable community input to guide next steps in the City’s Housing Element process. Staff believes that a deeper understanding of the community’s concerns is important to any effort to revise the housing plan in a meaningful way.

The proposal includes a detailed scope of work and a cost estimate broken down by the above-mentioned three (3) tasks. The primary task, i.e., Baseline Survey, has a cost estimate of $29,900. The pre-survey focus groups (x2) and post-baseline survey follow-up survey have been provided as optional tasks with cost estimates of $27,500 and $26,650, respectively, for a total contract cost estimate of $84,050. The three tasks are anticipated to be conducted sequentially, and the second and third tasks may be deferred, amended or removed depending on the information developed from the initial task.

ENVIRONMENTAL ANALYSIS
The current research consulting services contract request would qualify for exemption from the California Environmental Quality Act (CEQA) pursuant to Categorical Exemption Class 6 (Information Collection). Any future related revisions to the 2021-2029 General Plan Housing Element or associated rezone plan will be evaluated for further CEQA review at the appropriate time. Staff will return to the City Council, as applicable, for separate approval of the CEQA consulting contract.

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FISCAL IMPACT
Funds for the preparation of the Housing Element and associated special consultant costs have been budgeted under the Planning Division of Community Development’s budget for the current fiscal year. The City submitted and received approval of both Senate Bill 2 and LEAP grant funds to assist with Housing Element planning efforts. It is anticipated that these grants will cover the proposed consultant costs in order to offset General Fund expenditures related to overall Housing Element implementation.

ALTERNATIVES
The City Council may request revisions to the scope of work or cost estimate, or direct staff to engage in a competitive bid for community level research assistance related to the ongoing Housing Element preparation process. However, staff believes that FM3 provides unique and specialized expertise in this field and has a demonstrated track record of providing quality assistance and insight into community concerns related to similar housing compliance issues in a neighboring community during the same November 2022 election.

Additionally, staff believes that time is of the essence with respect to engaging the community about their recent voting experience; further delay in obtaining important survey data reduces the quality of responses received due to time elapse since the election.

ATTACHMENTS

1.) Consultant Services Agreement

2.) Exhibit “A” FM3 Research Associates, Inc. Proposal & Scope of Services

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1 CITY OF YORBA LINDA

PROFESSIONAL SERVICES AGREEMENT
TO CONDUCT COMMUNITY RESEARCH FOR A 2024 LAND USE MEASURE

1. PARTIES AND DATE.

This Agreement is made and entered into this 7th day of March, 2023, by and between the City of Yorba Linda, a municipal organization organized under the laws of the State of California with its principal place of business at 4845 Casa Loma Avenue, Yorba Linda, California 92886 (“City”) and FM3 Research Associates, Inc., a California Corporation, with its principal place of business at 12100 Wilshire Boulevard, Ste. 350, Los Angeles, CA 90025 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of professional community research consultant services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional community research consultant services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such services in relation to necessary amendments to the 2021-2029 General Plan Housing Element and a potential 2024 associated ballot measure (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional planning services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference (Proposal to Conduct Research for a 2024 Land Use Measure in Yorba Linda, California). All Services shall be subject to, and performed in accordance with, this Agreement, the exhibit attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from execution of this agreement to completion of the project, unless earlier terminated as provided herein.

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2 Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Control and Payment of Subordinates; Independent Contractor.

The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the schedule, City shall respond to Consultant’s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement is Dr.

Richard Bernard (FM3 Research Associates, Inc.).

3.2.5 City’s Representative. The City hereby designates Director of Community Development David Brantley, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s

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3 Representative shall have the power to act on behalf of the City for all purposes under this Contract. Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.6 Consultant’s Representative. Consultant hereby designates Dr.

Richard Bernard, FM3 Partner, FM3 Research Associates, Inc., or his designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services.

Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all

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4 costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.

3.2.10.1 Time for Compliance. Consultant shall not
commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.10.2 Types of Insurance Required. As a condition
precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the Insurance Requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so. (a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as
Insurance Services Office "occurrence" form CG 0001, with minimum limits of at least $1,000,000 per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit. Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions
limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. (b) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance
Services Office Form CA 0001 covering "Any Auto" (Symbol 1) with minimum limits of $1,000,000 each accident.
(c) Professional Liability: Professional Liability insurance with minimum limits of $1,000,000. Covered professional
services shall specifically include all work to be performed under the Agreement and delete any exclusions that may
potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing,

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5 underground storage tanks, laboratory analysis, soil work, etc.).

If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this
Agreement.
(d) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and
Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.

3.2.10.3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
(A) The policy or policies of insurance required by Section

3.2.10.2 (a) Commercial General Liability shall be endorsed to provide the following:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional
insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the Agreement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
(B) The policy or policies of insurance required by Section

3.2.10.2 (b) Automobile Liability and (d) Professional Liability shall be endorsed to provide the following:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City

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6 except ten (10) days shall be allowed for non-payment of premium.
(C) The policy or policies of insurance required by Section

3.2.10.2 (e) Workers' Compensation shall be endorsed to provide the following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

3.2.10.4 Primary and Non-Contributing Insurance. All
insurance coverages shall be primary and any other insurance, deductible, or selfinsurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.10.5 Waiver of Subrogation. Required insurance
coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties.

Policies shall contain or be endorsed to contain such provisions.

3.2.10.6 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.10.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.10.8 Failure to Maintain Coverage. Consultant agrees to suspend and cease all operations hereunder during such period of time as the required

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7 insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement.

In the event that the Consultant's operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.

3.2.10.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.10.10 Insurance for Subconsultants. All Subconsultants shall be included as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant's policies.

3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement in the amounts set forth in Exhibit ”A” (Proposal to Conduct Research for a 2024 Land Use Measure in Yorba Linda, California) attached hereto and incorporated herein by reference. The total compensation shall not exceed EIGHTY-FOUR THOUSAND FIFTY DOLLARS ($84,050.00) without written approval of City’s City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

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8 3.3.2 Payment of Compensation. Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 30 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.4 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

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9 3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant:

FM3 Research Associates, Inc.
12100 Wilshire Boulevard, Ste 350
Los Angeles, CA 90025
Attn: Dr. Richard Bernard
City:

City of Yorba Linda
4845 Casa Loma Avenue
Yorba Linda, CA 92886
Attn: David Brantley
Director of Community Development
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

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10 3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property.

This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.5 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner

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11 arising out of or incident to any alleged acts, omissions, negligence or willful misconduct of Consultant, its officials, officers, employees, agents, subcontractors and subconsultants arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers.

Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents or volunteers.

3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.10 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers,

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12 employees, agents, and volunteers except as otherwise specified in this Agreement.

The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and

ORANGE\KSD\4485 BBK: DECEMBER 2003
13 agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

CITY OF YORBA LINDA FM3 RESEARCH ASSOCIATES, INC.

By: By:

Gene Hernandez
Mayor Name:

Title:

Attest:
[If Corporation, TWO SIGNATURES, President OR
Vice President AND Secretary, AND CORPORATE
SEAL OF CONTRACTOR REQUIRED]
By:

Marcia Brown By:

City Clerk
Name:

Title:

Approved as to Form:

By:

Rutan & Tucker, LLP
City Attorney

EXHIBIT “A”
Proposal to Conduct Research for a 2024 Land Use Measure in Yorba Linda, California

Proposal to Conduct Research for a
2024 Land Use Measure in Yorba
Linda, California
Contact:

Dr. Richard Bernard
[email protected]
(310) 428-1809
January 30, 2023 921-6576

i

CONTENTS
1 ABOUT FM3 ..........................................................................................................................................................1 2 FM3’S RELEVANT EXPERIENCE ..................................................................................................................................3 3 PROPOSED WORK PLAN AND RESEARCH METHODOLOGY ..............................................................................................6

3.1 Overview.....................................................................................................................................................6

3.2 Initial Focus Groups (Optional)...................................................................................................................7

3.3 Baseline Survey...........................................................................................................................................8

3.4 Follow-Up Survey (Optional) ................................................................................................................... 10 4 COST PROPOSAL .................................................................................................................................................. 11 5 PUBLIC OUTREACH FIRMS FM3 HAS WORKED WITH SUCCESSFULLY IN THE PAST ........................................................... 12 6 CONTACT INFORMATION ....................................................................................................................................... 15

1 1 ABOUT FM3
Fairbank, Maslin, Maullin, Metz & Associates (FM3 Research or FM3) has been conducting public policy-oriented opinion research since 1981 on issues of major economic and social concern. As a California-based company, we are a medium-sized research firm with 23 full-time employees working out of our Los Angeles and Oakland offices.

The research FM3 conducts goes far beyond simply documenting the knowledge, views, and behaviors of various populations. Rather, our work produces actionable data that provides a strategic roadmap for policy makers and to inform community outreach and communication efforts.

Each of the research projects we do is led by one of our six partners, all of whom are nationally respected authorities on public opinion research. As our client, you will have direct access to not only the partner working on your project, but also several other key staff members with advanced degrees in public policy, research methods, and/or extensive experience working in state and local government.

While our firm is not so big that you will wonder whom to call with your questions, we are big enough to have our own in-house data analysis/processing team and graphic design resources. This means we can provide our clients with a level of personal attention and service from firm partners and other senior staff more often associated with much smaller organizations, while also providing rapid project turnaround and more sophisticated data analysis and presentations tailored to client needs that one might expect from larger firms.

FM3 utilizes a variety of research tools designed to address each client’s unique circumstances. Some of these tools are
quantitative, such as surveys; some are qualitative, such as focus groups; and others fall somewhere in between. In any given year, FM3 conducts more than 300 surveys and 160 focus groups, in addition to providing ongoing consulting for key clients. We also actively monitor methodological developments through our industry’s trade association – the American Association for Public Opinion Research (AAPOR) – and continually experiment with newly evolving online and digital research approaches.

FM3 is a leader in our
field for a reason, and
we look forward to
showing you why.
www.fm3research.com

2 About Dr. Richard Bernard, FM3 Partner
Dr. Richard Bernard is one of California’s foremost public opinion researchers on issues related to public agencies, their services, and the funding they need to provide those services. Richard has written surveys, conducted focus groups and one-on-one interviews, and routinely provided strategic advice for a diverse set of clients including cities, counties, special districts, K-12 and community college districts, non-profits, businesses, and labor unions.

During his 20 years at FM3, Richard has led efforts to help clients garner support for policies designed to enhance access to resources, environmental justice, and/or quality of life for various segments of the population. Much of this work has centered on ballot initiatives being considering by municipal governments geared toward revenue enhancements, regulation or zoning changes, or other policy enactments. With respect to housing, development, and zoning, Richard has conducted surveys for such cities as Agoura Hills, Costa Mesa, Bellflower, Lemon Grove, Los Angeles, Rancho Santa Margarita, San Clemente, West Hollywood, among others. His work for the City of Costa Mesa led to the passage of a November 2022 measure that will now allow the development of affordable housing in the City for the first time in six years. See the case study provided on page 5 for more information about Richard’s work in Costa Mesa.

In Orange County, Richard’s current and/or past clients include:
• Cities: Costa Mesa, Huntington Beach, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana • School districts: North Orange County Community College District, Anaheim Union High School District, Capistrano Unified School District, Coast Community College District • Water districts: Irvine Ranch Water District, Laguna County Water District, South Coast Water Agency • Other public agencies: Southern California Association of Governments, Transportation Corridor Agencies, Orange County Transportation Authority
• Private sector clients: The Walt Disney Company, Southern California Edison, private developers in Newport Beach, the grocery chain Safeway (now a unit of Albertsons Companies, Inc.), Laguna Woods Village • Non-profit: The Ocean Conservancy
Background and Education
Prior to joining FM3, Richard was a faculty member at the University of Toronto, where he taught research methods and statistics and conducted research that dealt with issues related to cities, employment, ethnicity, and families. He has published in journals such as East Asian Pacific Migration Journal, International Migration Review, and the Canadian Journal of Sociology. Before University of Toronto, Richard was a Sloan Foundation post-doctoral fellow at the National Opinion Research Center. He holds an Honors B.A. from York University, an M.A. from McGill University, and a Ph.D. from UCLA.

3 2 FM3’S RELEVANT EXPERIENCE
FM3 stays well informed on the latest issues facing local governments through our work as the public opinion research firm for the League of California Cities. We have served as the League’s primary pollster for many years, and our research has contributed to numerous victories for the League and its member agencies, both in the legislature and on the statewide ballot. In this capacity, we regularly conduct research at the statewide level as well as in dozens of local communities throughout California. Most recently, FM3 worked closely with the League to help protect local authority over land-use and housing issues from encroachment by Sacramento and to shore up support for former Governor Brown’s transportation funding package, Senate Bill 1.

Furthermore, we are the leading provider of research for successful ballot measures for cities (and counties and special districts) throughout California. We have provided research and strategic advice for hundreds of measures dealing with issues relating to housing, public safety, infrastructure, transportation, parks and open space, utilities, libraries, education, health care, and social services for cities, counties, school districts, and other local and state service providers. More than 95% of local revenue measures that have been placed before voters by FM3’s clients, under our advisement, have been approved. This is evidence of the accuracy of our research; election results are generally within the margin of error of what our surveys suggest will be the level of support on Election Day.

More specifically, FM3 has a wide range of experience conducting research related to affordable housing, including not only funding measures but also measures related to approval of development and land use plans (pursuant to California’s Article 34), changes to city zoning, and more. In the November 2022 election, we contributed research for successful campaigns to expand funding for affordable housing in four Long Island, New York, communities and to help Sacramento County gain Article 34-related voter approval for affordable housing projects in both unincorporated and incorporated areas of the County. Another notable project we worked on for the 2022 general election was Costa Mesa’s Measure K – a highly opposed measure that is particularly relevant to the work we would do for the City of Yorba Linda, given the large percentage of No votes on the City’s recent Measure Z. For an in-depth description of the work we did for Costa Mesa, please see the case study provided on page 5.

FM3 has provided
research for
hundreds of ballot
measures, including
many related to
affordable housing
on both the state
and local levels.

4 Additional past measures FM3 has worked on related to affordable housing development include, among others:

Humboldt County’s 2020 Measure I, an Article 34-related measure to approve affordable housing projects in
unincorporated areas of the county (California)
Two 2018 statewide California bond measures – Proposition 1, a $4 billion affordable housing bond, and Proposition 2, a $2 billion bond (backed by Prop. 63 revenues) providing dedicated funds for creating housing for Californians who are experiencing both mental illness and homelessness
Oregon’s statewide 2018 Measure 102, a measure that cleared the way for local government collaboration with nonprofit housing developers
Two bond measures in the Portland, Oregon, region – 2018’s Measure 26-199, a $652.8 million affordable housing bond for the greater Portland region (including its suburbs), and 2016’s Measure 26-179, a $258 million citywide affordable housing bond Los Angeles’s 2016 Measure HHH, a $1.2 billion housing bond to help address homelessness1
1 In the spring of 2016, FM3 included a question in a City of Los Angeles voter survey to test the viability of a hypothetical multi-billion-dollar municipal bond measure for homeless and low-income housing to be voted on in the November 2016 election. The survey results suggested that support for such a measure in the November election would start at around 80%, which prompted Los Angeles City Council President (at the time) Herb Wesson to assemble a coalition to place such a measure on the ballot. In November 2016, Measure HHH was approved by voters with 78% support.

5 Case Study: Costa Mesa’s Measure K (2022)
In November 2022, research conducted by FM3 helped the City of Costa Mesa pass a measure that will allow it to move forward on plans to create more affordable housing units. The measure faced considerable challenges, most notably the presence of the City’s 2016 Measure Y.

Placed on the ballot and approved by Costa Mesa citizens, Measure Y set up a barricade to prevent the City from moving forward on certain development projects and land use plans without first receiving the approval of voters. This included preventing the construction of affordable housing units that had been in the pipeline to be approved by the city government, thereby hampering the City’s ability to meet California’s Regional Housing Needs Allocation (RHNA) requirements.

In their effort to work around the tight restrictions created by Measure Y, City officials hired FM3 in 2022 to conduct research that would help them better understand Costa Mesa voters’ desires in relation to land use and development. For this project, FM3 conducted a dual-mode survey (online and via telephone) among a random sample of 473 likely November 2022 voters.

The survey assessed voters’ familiarity with Measure Y, as well as the viability of a proposed measure that would work within the Measure Y framework by asking voters to authorize City Council’s adoption of publicly reviewed land use plans to revitalize outdated commercial/industrial corridors and allow for the creation of more affordable housing units.

Using the survey results, FM3 was able to identify the unique concerns of Costa Mesa voters and frame them within the City’s zoning context to create a roadmap toward the successful passage of a ballot measure. This included helping draft the final 75-word title and ballot summary in a way that was palatable to voters and coming up with legally permissible educational statements so that the City could effectively communicate with voters about Costa Mesa’s affordable housing needs.

The result of these efforts was Measure K, which passed in November 2022. Despite the clear message voters sent with the passage of Measure Y in 2016, our team was able to help the City find a way to educate its voters to change their tune – thereby also helping Costa Mesa meet its RHNA needs.

6 3 PROPOSED WORK PLAN AND RESEARCH METHODOLOGY

3.1 Overview
As with each project FM3 works on, our research for the City of Yorba Linda will be tailored to the specific circumstances within the city, taking into account the unique concerns of Yorba Linda voters. To that end, FM3 recommends a two-pronged qualitative and quantitative research approach that includes initial focus groups followed by a baseline survey and an optional tracking survey prior to the Council’s deliberation about whether to place a measure on the ballot.

The purpose of the focus groups will be to gain qualitative information regarding how voters feel about rezoning particular areas of the City to enable the development of affordable housing. This approach helps researchers capture the emotional richness and intensity of people’s reactions to issues, as well as observe the ways they weigh and discuss these issues in a small group of their peers. The focus groups will also provide City staff and the FM3 research team an opportunity to better understand why the recent Yorba Linda measure was unsuccessful and what might result in a different outcome in the future. Your team will be able to observe the groups in real time from the next room via closed-circuit television.

Insights from these focus groups will then be used to draft the initial baseline survey. The baseline survey will help us create a strategic roadmap for developing and disseminating legally permissible educational outreach materials to communicate with voters about the City’s housing needs and the purposes of a potential measure, as well as eventually formulate the specific details of a ballot measure (including the all-important 75-word ballot question).

Through the survey, we will gain a wealth of information about voter sentiment that is generalizable to the overall population of voters. Additionally, the survey will examine future election scenarios to determine which election (primary or general) might provide the best chances of passing a measure.

Finally, it is also common for FM3 to conduct a baseline survey, wait for the client or a partner firm to do some community outreach, then conduct a follow-up survey to measure the impact of the engagement on public attitudes. In addition to tracking questions, follow-up surveys can be used to test refinements to the ordinance, 75-word ballot title and summary, and/or messaging based on the learnings from the baseline survey and community engagement process.

While we believe each of these research elements will provide invaluable information for your team, we understand that conducting all three phases of research may not be feasible due to budgetary constraints.

Therefore, FM3’s primary recommendation is to complete the baseline survey, with the other two phases being optional. Dr. Richard Bernard is happy to discuss with your team the benefits of each option in greater depth if desired.

Focus Groups
(optional)
Baseline Survey
Follow-Up Survey
(optional)

7 3.2 Initial Focus Groups (Optional)
FM3 proposes to conduct two English-language focus groups comprising 10 participants each. These two-hour sessions will be conducted back to back, in person at a hotel in Brea or Fullerton.2 The purpose of conducting these groups at a hotel (rather than in a government building, for example) is to create a neutral space in which people feel free to express their genuine thoughts and opinions.

Combining the benefit of your team’s input and expertise with our decades of experience conducting valuable public opinion research, FM3 will develop a recruitment screener and discussion guide, as well as any necessary collateral for the focus groups. As previously stated, this discussion guide will probe participants to share their thoughts and opinions about a zoning measure that would enable the development of affordable housing, including exploring the reasons why people may not have voted to pass the measure (regardless of whether they actually voted) in the November 2022 election.3 One strategy to do this will be to present participants with the language used on the 2022 ballot, have them cast a vote, and then ask them to explain the reasoning behind their choice. We will also test educational messaging about a potential new measure to see what resonates with participants.

As we are developing the discussion guide, our recruiters will be recruiting participants for the groups. We generally like to provide at least two weeks for recruitment of each group, with recruitment for multiple groups typically taking place at the same time. FM3 staff will work closely with the recruitment team throughout the process to ensure that the demographic and geographic requirements are being met. We will also work with your team to determine the dates of the groups that work best. FM3 will also make all arrangements with the hotel to ensure all observers and participants have what they need for things to go smoothly.

At the end of the evening, the moderator and FM3 colleague will provide initial impressions to the observers, and a copy of the focus group audio will be sent to the transcriber’s secure website. Within two weeks, FM3 will provide a draft PowerPoint presentation and report of findings. The presentation and report will include demographic breakouts (as applicable) and summaries of key findings, conclusions, and actionable recommendations.

FM3 would work with your team to determine the appropriate deliverables. Generally, these include:
✓ Logistics memo indicating date, time, and location of the focus group sessions ✓ Final screening questionnaire for each group
✓ Final moderator discussion guide
✓ PowerPoint presentation (including key findings, results, conclusions, and actionable recommendations) ✓ Any materials tested in the groups
2 FM3 has researched the feasibility of conducting the proposed focus groups in one of the two hotels located in Yorba Linda.

We have determined that the size and/or number of meetings in the local hotels would not allow for two rooms to be used as needed for a participant and viewing room, respectively. However, we have found two suitable hotels in neighboring communities that would allow us to successfully conduct the proposed focus groups. They are also located close enough to Yorba Linda that we would still be able to recruit Yorba Linda voters to participate in the groups. 3 While most of the participants will be recruited from a list of Yorba Linda voters who voted in the November 2022 General Election, some of the focus group members may have not voted in the recent election but have a history of voting in a March Presidential Primary Election and/or a November Presidential Election.

8 3.3 Baseline Survey
For the baseline survey, FM3 recommends conducting
a 20-minute, dual-mode survey in which data is
collected via both telephone (cellular and landline)
and online interviews. To contact respondents, we
recommend utilizing three different contact methods:
telephone calls, emails, and text messages. This
approach provides an array of opportunities for
residents to participate in the survey and ensures that potential survey respondents whose telephone
numbers or email addresses are not available via public or consumer records (or those who are simply
unwilling to answer a phone call or open an email) can
be included in the survey's sample.

Based on Yorba Linda’s population, FM3 recommends
an English-only survey with a sample size of 400. A
random sample of 400 will yield a margin of error of
plus or minus ±4.9%, at a 95% confidence level (i.e., in 95 out of 100 cases). This sample will comprise
registered voters who are likely to vote in the
November 2024 election. We understand that your
team is also considering placing this measure in the
March primary, rather than the general election; with
that in mind, we will also analyze a subsample of likely March 2024 voters during our analysis.

In designing a survey questionnaire for this measure, FM3 will draw from its knowledge of public opinion survey methodology; our comprehensive review of any past research the City has done (including tracking past questions when appropriate); your current and future objectives and needs; and our own vast library of research on this topic. We will proceed through several drafts, incorporating feedback from your team before each revision, to develop a research instrument that will achieve the project's objectives, contains accurate information, and will not take too long to complete.

Among other questions, this survey will likely test:
• The viability of a ballot measure based on a hypothetical 75-word title and summary; • Relative support for a land-use measure that allows for the development of affordable housing; • Informational messages that could help voters understand the value of the ballot measure; and • The vulnerability to common opposition themes.

Methodology
Dual-mode survey using a
combination of telephone and
online interviews
Respondent
Contact
Method
Telephone calls, email invitations,
and text invitations
Population &
Sample
400 likely November 2024 voters in
the City of Yorba Linda
Margin of
Sampling
Error
±4.9% for a sample of 400
interviews, at the 95% confidence
level (i.e., in 95 out of 100 cases)
Questionnaire 20 minutes
Figure 1: Survey Research Specifications

9 FM3 will construct a sample by pulling a random list of voters from the voter file. We will match the addresses in the sample against public and commercial databases to acquire contact information for potential respondents.

Because subsets of the sample will be invited to take the survey online, FM3 will also create initial drafts of email and text message invitations for your review. Based upon the final sample specifications, FM3 will set a target number of interviews to be completed online. We will then send out email invitations to a random sample of likely voters with a valid email address. Additionally, we will send out a random sample of text invitations (see Figure 2) to help reach the overall target number of online completes and to complement the other contact methods.

Within roughly a week of the initial distribution of email and text invitations, we will compare the demographic and geographic characteristics of the online completes with our target demographic numbers. We will then begin conducting telephone interviews to balance out the sample and target underrepresented subgroups.

Once the survey is complete, FM3 will generate a detailed report of the survey results in a PowerPoint presentation, including demographic breakouts and summaries of key findings. These results are typically presented in draft format to the client team and then further refined based upon feedback from that group. A version of this presentation will also be developed in a format suitable for FM3 to present in a public forum, if requested.

Upon conclusion of the survey project, your team will have received from FM3 each of the documents listed below.

All documents can be provided in hard copy or electronic form (or both), depending on your preference. ✓ Final survey questionnaire
✓ PowerPoint presentation (including key findings, results, conclusions, and actionable recommendations) ✓ Presentations of results to staff, board members, or other stakeholders (in person if desired) Finally, after FM3’s final deliverables have been completed, we will remain available to answer follow-up questions and to present results to additional key stakeholders. We view the responses to the survey as an ongoing data resource; if needed, FM3 can conduct further analysis to provide answers to any follow-up questions that may arise.

Figure 2: Sample Text Message
Invitation

10 3.4 Follow-Up Survey (Optional)
For the follow-up survey, FM3 recommends conducting a survey very similar in scope to the baseline survey, except that it will only last 15 minutes. This survey will include:
• Testing an updated version of the potential 75-word ballot measure summary, building on the findings of the baseline survey;
• Testing the impacts of the City’s outreach efforts; and • Observing any potential changes in voters’ opinions and attitudes towards the City and/or tolerance of the potential ballot measure.

11 4 COST PROPOSAL
See Figure 3 for the costs associated with conducted each phase of research. As previously discussed, focus groups and the follow-up survey are both optional, depending on the City’s budget.

Figure 3: Estimated Research Costs
Research Element Cost Included in Comprehensive Price
Baseline Survey
20 minutes, n=400 $29,900
• Questionnaire design
• Sample acquisition and
preparation
• Programming
• Email and text invitations
• Survey hosting
• Telephone interviewing
• Data entry and analysis
• Reporting
Optional Research
Two Focus Groups
(optional) $27,500
• Screener design
• Discussion guide design
• Recruitment
• Participant incentives
• Facility rental
• Moderation
• Audio and video recording
• Transcription
• Analysis
• Reporting
Follow-Up Survey
15 minutes, n=400
(optional)
$26,650
• Questionnaire design
• Sample acquisition and
preparation
• Programming
• Email and text invitations
• Survey hosting
• Telephone interviewing
• Data entry and analysis
• Reporting

12 5 PUBLIC OUTREACH FIRMS FM3 HAS WORKED WITH SUCCESSFULLY IN THE PAST Pivotal Strategies
Pivotal Strategies is a strategic campaign, public education, and communications firm that moves ideas and clients forward. We’re storytellers who take complex or controversial issues, simplify them, and create engaging communications programs to educate diverse communities.

Pivotal’s team has built countless successful strategic communications and public education programs to help cities, counties and other government agencies create compelling narratives and engage communities on a wide range of issues. No matter the size, location, or demographics, we always customize our education programs.

From what messages should be communicated, to when and how, our approach ensures the most effective program possible. Our team’s portfolio of work with cities spans across California, including recent work with Anaheim, Burbank, Costa Mesa, Duarte, Glendale, El Segundo, Los Alamitos, Montclair, Norwalk, Ontario, South El Monte, and Westminster, among others.

What sets our team apart from the rest is not only our team’s decades of experience working with cities and government entities throughout California, but our in-depth understanding of land use regulations. Our team includes former municipal planning deputies and executives for development companies that have shaped land use and urban planning policies – general and specific plans – and have worked on everything from master planned communities to reinvigorating commercial corridors through mixed-use development.

This expertise was evident with our recent work for the City of Costa Mesa on its November 2022 ballot measure – Measure K: The Ordinance to Revitalize Commercial and Industrial Areas and Protect Residential Neighborhoods.

Costa Mesa was experiencing a shortage of available housing units, and a 2016 voter initiative unexpectedly halted investment and the construction of new housing units within the City. Using FM3’s research findings, Pivotal crafted a strategy and a narrative to communicate the City’s challenges through a public education program with a focus on how the ballot measure would preserve single-family neighborhoods while allowing for affordable housing on commercial corridors to meet the needs of the community and comply with state mandates. We launched a webpage serving as a repository of information including fact sheets, FAQs, and data points to illustrate the housing affordability challenges faced by Costa Mesans of all walks of life.

Our materials, including a robust direct mail program, highlighted key themes such as protecting single-family neighborhoods, creating affordable housing opportunities, revitalizing commercial and industrial corridors, requiring developer impact fees for traffic, parks and open space, and the need to maintain local control in planning decisions. Despite a strong opposition effort, we successfully told the complex story of Costa Mesa’s housing challenges. Voters agreed and approved Measure K with over 50% of the vote, removing housing constraints and allowing the City to revitalize major corridors, construct much needed housing, and bring increased economic activity in support of City services.

Pivotal Strategies has the public education and land use expertise, and local ballot measure experience, needed to run comprehensive and effective public information programs for any land use-specific ballot measures. At any time, you may find yourself at a pivotal moment. How you engage a community will determine whether you can successfully reach your goals. When you’re facing these types of moments, make sure you have the right team in place.

13 The Lew Edwards Group
The Lew Edwards Group (LEG) is a nationally recognized, award-winning public engagement and communications firm of 26 years. Public agencies constitute more than two-thirds of LEG’s practice with expertise that includes strategic services; media, social media, and Internet communication; coalition building/public engagement; fiscal sustainability approaches; and strategic support on land-use and other policy issues.

Experts from LEG are frequently sought after trainers and speakers for the League of California Cities, Local Government Commission, Institute for Local Governments, Municipal Management Association, and others. LEG’s communications products have been recognized on multiple occasions in the prestigious national Pollie Awards.

Orange County Experience
LEG was retained in 2016 by the City of Yorba Linda for communications expertise related to local neighborhood beautification and maintenance efforts. Besides the City of Yorba Linda, LEG has represented or is currently representing the following agencies in the OC:
• Anaheim City School District
• Coast Community College District
• City of Fountain Valley
• City of Fullerton
• City of Garden Grove
• City of Huntington Beach
• Huntington Beach Union High School District
• City of La Habra
• City of La Palma
• N. Orange County Community College District
• City of Placentia City of Rancho Santa
Margarita
• Saddleback Valley Unified School District
• City of San Juan Capistrano
• City of Seal Beach
• City of Stanton
• City of Westminster
• Westminster School District
LEG’s services can include some or all of the following:
✓ Providing insights to help navigate dynamic, evolving project needs and supporting City staff and other professionals in achieving a well-coordinated project.
✓ Collaborating closely with FM3 on quantitative or qualitative public opinion data collection and providing Strategic Recommendations and a Project Plan.
✓ Continuously updating and refining a Project Timeline, Activities, and Budget. ✓ Recommending an engagement/outreach program to solicit further input and/or inform the public of the City’s vision.
✓ Training city staff on informational outreach message delivery. ✓ Providing support and content for rapid response needs (please note the firm does not function as a paid City spokesperson).
✓ Developing earned media/web-based strategy and content for informational collaterals. ✓ Adding value to City materials.

14 Props & Measures
Props & Measures, Inc. is a unique strategy and communications firm that specializes in helping cities and other public agencies develop local ballot measures and educate the public about funding needs and ballot measures.

Often, we will help a privately funded, volunteer-led advocacy group campaign for passage of these measures, without use of public funds.

We’ve worked closely together with FM3 Research many times to develop effective public education materials and strategies that help our client cities and other agencies communicate clearly to residents and voters without crossing the line into advocacy.

We’ve helped prepare and pass 18 local tax measures in Orange County for cities, school districts and community colleges, including the cities of Fullerton and Laguna Beach.

We also led the 2018 statewide campaign for Prop 1, which authorized $4 million in state affordable housing bonds. Winning statewide required effective, targeted communication to swing voters in suburban communities throughout California, about the touchy issue of affordable housing development.

Statewide, we’ve helped create and/or pass nearly 100 municipal ballot measures on a wide range of topics.

Southern CA experience includes the cities of Diamond Bar, Whittier, Ontario, La Verne, Santa Fe Springs, Beverly Hills, Pomona, Montebello, Downey, Paramount, Murrieta, Oceanside, and Del Mar, among many others.

Finally, we’re experienced in ballot measures that specifically involve land use and affordable housing in suburban communities like Yorba Linda: PM partners have helped run campaigns to defeat citizen initiatives that would’ve made affordable housing and development harder in several suburban cities, including Measure Q in Laguna Beach in November 2022.

15 6 CONTACT INFORMATION
Thank you for taking the time to review our proposal. Please feel free to contact Dr. Richard Bernard with any questions you may have.

Dr. Richard Bernard
FM3 Partner
12100 Wilshire Blvd, Suite 350
Los Angeles, CA 90025
[email protected]
(310) 428-1809

ADMINISTRATION DEPARTMENT
DATE: MARCH 7, 2023
TO: CITY COUNCIL
FROM: PAMELA STOKER, ECONOMIC DEVELOPMENT MANAGER
SUBJECT: BUDGET APPROPRIATION FOR SMALL BUSINESS RELIEF GRANT

PROGRAM

RECOMMENDATION
It is recommended that the City Council approve a budget appropriation in the amount of $150,000 towards the Community Development Block Grant Program for Small Business Relief.

BACKGROUND
In 2020 and in response to COVID-19, the City of Yorba Linda implemented a Small Business Relief Program with federally approved CARES Act funding and CDBG-CV funds to assist our small business community with grant monies. The objective of the program was to offer financial assistance towards small business recovery efforts. In total the City received close to 300 applications, for which 251 grants were awarded to eligible local business owners. The original intent was to be able to award all eligible businesses a $10,000 grant, but due to the overwhelming response from our business community, the City opted to fund as many businesses as feasible with the allocated monies resulting in grants being awarded at $9,650 to each qualified applicant.

DISCUSSION
Late last year, City staff was informed by the County of Orange of excess surplus in the CDBG-CV program across the County. Yorba Linda was encouraged to submit a letter of interest for its pro-rata share of excess funds which could be used exclusively for prior approved and implemented programs, such as our Small Business Relief Program.

The Orange County Board of Supervisors took action on January 24, 2023, distributing the remaining CDBG-CV funds to jurisdictions that had Covid-19 relief programs in place. The City of Yorba Linda received $150,000 in additional CDBG-CV funds, which allows for an additional 15 qualified businesses to be awarded funding.

The program guidelines remain the same this round for any businesses who wish to apply, with the exception of eligibility dates being adjusted to cover the full period of the pandemic.

Businesses who were awarded funds previously are not eligible for this 4 th round of funding.

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On February 1, 2023, City staff began outreach to our business community encouraging those small business who might have been negatively impacted by COVID-19 to apply for assistance. This application period will remain open until such time funds are fully exhausted.

FISCAL IMPACT
Grant funds from the Community Development Block Grant program in the amount of $150,000 will be appropriated to account 2080173-424710. A corresponding appropriation to the revenue account 2085320-355011 (Covid-19 Cares Act) will also be recorded.

ALTERNATIVES
Should the Council wish to reject the appropriation of additional CDBG-CV funds the monies would then return to the County for distribution to other programs among other jurisdictions.

ATTACHMENTS
None.

CITY CLERK'S OFFICE
DATE: MARCH 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARCIA BROWN, CMC, CITY CLERK
SUBJECT: COUNCIL COMMITTEE AND AGENCY REPORTS

RECOMMENDATION
It is recommended that the City Council receive and file this report.

DISCUSSION
City Council members serve on a number of outside committees and agencies. Attached are updates received recently from these agencies.

ATTACHMENTS

1. Reports from City Council Organizations, Agencies and Committees

MONTHLY REPORT:

January
Monthly Year to Date (YTD) County Monthly County YTD

OPERATIONS
Service Requests Completed: 2 2 101 101
Mosquitoes: 1 1 62 62
Rats: 0 0 22 22
Rifa: 1 1 17 17
Number of Swimming Pools Treated/Inspected: 28 28 563 563 Hours Spent Treating/Inspecting Gutters 0 0 0 0.0
Undergrounds Treated: 0 0 0 0
Acres of Flood Channels Treated: 0 0 0 0
Acres of RIFA Treated/Inspected: 55 55 2,247 2,247
Number of Inspection Treatments: 55 55 1,208 1,208

LABORATORY
Adult Mosquitoes Collected: 0 0 429 429
Collected From Trustee Home: 0 0 0 0
Invasive Aedes 0 0 1 1
Mosquito Pools (Samples) Tested: 0 0 32 32
WNV Positive Samples: 0 0 0 0
WNV Positive Birds: 0 0 0 0
Number of Human Infections/Deaths: 0 0 0 0
Fleas, Ticks, and Others Tested: - - - 0

COMMUNICATIONS
Outreach Events Attended: 0 0 0 0
General Presentations: 0 0 3 3
Educational Program Presentations: 0 0 17 17
Calls Received - - 130 130
None at this time
Yorba Linda

PROJECTS IN COLLABORATION WITH OCMVCD

Orange County Mosquito Vector Control District

O

COUNTY RESPONSE LEVEL / AVERAGE RATING: TOTAL 6
Normal Season (1.0 to 2.5)
Elevated Risk (2.6 to 4.0)
High Risk (4.1 to 5.0)
AVERAGE 2.00

FINANCE DEPARTMENT
DATE: MARCH 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIANNA HONEYWELL, FINANCE DIRECTOR / CITY TREASURER SUBJECT: FISCAL YEAR 2022/23 MID-YEAR BUDGET UPDATE

RECOMMENDATION
It is recommended that the City Council:

1. Approve adjustments to the fiscal year 2022/23 operating budget as follows (Attachment 1):

Fund Resources Appropriations
General Fund $1,538,951 $1,392,681
LMAD Fund $ 0 $ 73,600
Library Fund <$ 35,000> $ 9,100
Grant Fund $ 0 $ 118,181
SB-2 Fund $ 102,260 $ 0
Total $1,606,211 $1,593,562

2. Receive and file the attached list of line-item budget transfers and supplemental budget appropriations for the first two quarters of the fiscal year (Attachment 2), as required by City Council Policy A-15 – Supplemental Budget and Line-Item Transfers.

BACKGROUND
On June 15, 2021, the City Council adopted the Two-Year Budget for fiscal years 2021/22 and 2022/23. On June 21, 2022, the Mid-Term budget was adopted to adjust FY 2022/23.

On January 17, 2023, staff presented the first quarter budget update for fiscal year 2022/23.

There were no significant budget changes at that time.

DISCUSSION
Since the Mid-Term budget was adopted in June, the City Council has made additional appropriations, the revenue projection for the General Fund has been revised based on new information and the City Manager has authorized several small adjustments to the budget pursuant to City Council Policy F-4. Proposed revisions to the revenue and appropriations estimates are discussed throughout the report and summarized below.

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Requested Mid-Year Budget Adjustments to the General Fund General Fund Revenue Adjustments
Total operating revenue is projected to increase by $1,420,770 with total revenue (including interfund transfers) increasing by $1,538,951 and are summarized as follows:

Sales Tax - $440,000
 Increases in sales tax are driven mainly by gasoline sales, heavy industrial equipment sales and the rebound in local restaurants with people venturing out more since the end of the pandemic.

Franchise Tax - $23,125
 This is due to an increase in disposal franchise fee revenue offset by a decrease in cable television franchise fee revenue.

Other Taxes - <$106,000>
 This reduction in revenue is due primarily to lower property transfer tax revenue due to the slowing of the housing market and a reduction in TOT revenue at one of the City’s hotels.

Fees, Charges & Permits - $300,000
 Building permit and plan check revenue is tracking higher than anticipated due to some larger projects coming online and a higher volume of routine permits.

Parks & Recreation Revenue - $289,525
 This increase is due to overall increases in rental revenue and recreation program revenue, mainly attributed to the upcoming programming at Adventure Playground.

Other Revenue/Transfers - $592,301
 This category includes an increase in miscellaneous income from Republic Services in the amount of $200,000 which was negotiated as part of the recent contract negotiations, reimbursement for damage to the fuel station canopy, a transfer in from the Grant Fund for funds received in FY 2021/22 from the North Orange County Public Safety Collaborative, offset by a reduction in interest revenue and court fines.

General Fund Expenditure Adjustments
The operating expenditures are projected to increase by $1,392,681. Highlights of the changes are summarized as follows:

Administration - $300,000
 Risk Management – Increase in anticipated claims settlements ($250,000) and increased insurance premiums for the newly updated Black Gold Golf Course equipment ($50,000).

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Community Development - $152,256
 Building – Additional microfilming services, printing charges, construction inspection services, plan check services and temporary personnel ($121,500).  Planning – Consultant services carryover from FY 21/22 not recorded at the time carryover adjustments were made in September 2022 ($30,756).

Finance - $26,000
 Personnel reclassification – Payroll Technician (see separate personnel section) ($4,000).
 Overtime, Professional services for a special project and additional bank fees due to increase in online transactions ($22,000).

Parks & Recreation - $401,225
 Administration – Overtime*, special supplies ($12,300).  Contract Class – Overtime*, Increase to contract class instructor costs, Concert in the Park music and printing/design for the Activity Guide ($190,500).  Travis Ranch – Overtime*, PYLUSD increased costs ($6,500).  Youth Activities – Overtime*, Adventure Playground staffing, additional programming at Arts Center ($43,925).
 Community Center – Overtime*, additional funding for the Senior Mobility Program ($26,000).
 Field House – Overtime*, Adventure Playground staffing, custodial services price increases, contract services for waterslide and splashtacular maintenance at Adventure Playground ($96,000).
 Park Maintenance – Additional tree maintenance ($35,000).  Cultural Arts Center – Annual maintenance on telescopic theatrical seating at Black Box Theater offset by reduction in custodial supplies and AV operations (<$9,000>). *Overtime in various divisions is due to the need to backfill vacant part-time positions with full-time employees to provide scheduled programming.

Police Services - $391,600
 Initial year-end projections by the Orange County Sheriff’s Department indicate a balance of $385,000 in overtime will need to be paid by the City, so this amount has been reflected in the mid-year budget adjustments. However, our Chief of Police Services, Captain Walehwa, predicts that the number will be lower due to the significant number of vacancies at the beginning of the fiscal year. To be conservative, the full amount of overtime is being reflected at this time. Other adjustments include additional vehicle maintenance costs, increased natural gas costs and additional custodial supply costs.

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Public Works - $121,600
 Personnel reclassification - Public Works Superintendent (see separate personnel section) ($8,600).
 Traffic & Transportation – Consultant services for traffic signals and associated projects ($25,000).
 Infrastructure Maintenance – Replacement of fuel yard canopy (reimbursable by Republic), gasoline for Police motorcycles, and additional fleet washing services ($88,000).

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The following schedule summarizes the changes to the General Fund resources and appropriations that are proposed in this report:

ADJ BUDGET YTD ACTUALS MID-YEAR REVISED
12/31/2022 12/31/2022 ADJUSTMENT BUDGET

RESOURCES
Property Taxes $ 23,784,064 $ 7,278,911 $ - $ 23,784,064 Sales & Use Tax 8,560,000 2,189,871 440,000 9,000,000
Franchise Tax 2,247,486 336,753 23,125 2,270,611
Other Taxes 1,718,100 604,425 (106,000) 1,612,100
Fees, Charges & Permits 2,151,618 1,487,475 300,000 2,451,618 Parks & Recreation Revenue 2,285,399 905,814 289,525 2,574,924 Administrative Charges 1,795,484 889,060 1,795,484
Other Revenue 868,800 307,073 474,120 1,342,920
Total Operating Revenue 43,410,951 13,999,382 1,420,770 44,831,721 Interfund transfers 944,783 - 118,181 1,062,964
Fd Balance Reserves 9,019,952 5,944,586 - 9,019,952
Total Resources 53,375,686 19,943,968 1,538,951 54,914,637

APPROPRIATIONS
Administration $8,925,940 $5,166,038 $300,000 $9,225,940 City Attorney 650,000 229,058 - 650,000
Community Development 3,851,612 1,778,845 152,256 4,003,868 Finance 1,296,961 627,194 26,000 1,322,961
Non-Departmental 34,800 15,636 - 34,800
Parks & Recreation 8,811,495 4,064,287 401,225 9,212,720 Police Services 13,837,722 6,823,438 391,600 14,229,322 Public Works 6,681,724 3,076,111 121,600 6,803,324
Vacancy Factor (241,358) - - (241,358)
Total Operating Expenditures 43,848,896 21,780,607 1,392,681 45,241,577 Transfer to Special Reserves 5,000,000 5,000,000 - 5,000,000 Transfer to LMAD 943,735 - - 943,735
Transfer to Capital Projects Fund 2,999,506 - - 2,999,506 Total Appropriations 52,792,137 26,780,607 1,392,681 54,184,818 Excess Resources over Appropriations $583,549 ($6,836,639) $146,270 $729,819 Fund Balance Reserves @ 7/1/2021 31,633,612 31,633,612 31,633,612 31,633,612 Less Uses of Fd Bal Reserves (9,019,952) (5,944,586) - (9,019,952) Est. Fund Balance Reserves @ 6/30/22 23,197,209 18,852,387 31,779,882 23,343,479 Uses of Fund Balance Reserves:

Transfer out - CIP $ 2,940,487 $ - $ - $ 2,940,487
Zelman Subdivision Impr Agreement 68,268 $ 68,268 $ - 68,268 Add'l CalPERS payment 305,679 305,679 - 305,679
Add'l OPEB Payment 426,200 426,200 - 426,200
Transfer to Special Reserves 5,000,000 5,000,000 - 5,000,000 GF Carryovers from FY 21/22 279,318 144,439 - 279,318
9,019,952 5,944,586 - 9,019,952

CITY OF YORBA LINDA

GENERAL FUND BUDGET
FY 2022/23 - MID-YEAR BUDGET TOTALS

FISCAL YEAR 2022/23 MID-YEAR BUDGET UPDATE
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Requested Mid-Year Budget Adjustments to the LMAD Fund
There are minor adjustments to the LMAD fund including the appropriation of additional miscellaneous engineering services for the LMAD’s Engineer’s Report and Proposition 218 services and additional services for traffic accident-related signal pole replacements and LED sign installation.

Requested Mid-Year Budget Adjustments to the Library Fund There is one minor adjustment to the Library Fund revenue projection. Community Room rentals are lower than anticipated so the revenue needs to be reduced by $35,000.

Additionally, there is an appropriation for the reclassification of the Graphic Specialist to a Communications Specialist (see separate personnel section) in the amount of $9,100.

Requested Mid-Year Budget Adjustments to Other Funds
There is a requested transfer from the Miscellaneous Grant Fund to the General Fund for funds received from the North Orange County Public Safety Collaborative in FY 2021/22.

These funds should have been originally deposited in the General Fund last fiscal year.

Revenue in the SB-2 Fund is being increased to reflect actual anticipated revenue for FY 2022/23.

Requested Mid-Year Personnel Changes
The Mid-Year budget proposes four personnel changes. Three of the changes are related to existing staff, and the fourth proposes to create a permanent part-time position at the Yorba Linda Public Library to address attraction and retention issues.

Of the three proposed changes affecting existing staff, City staff conducted job analysis of the three positions during FY 2022/23 and determined that the essential functions of the positions had changed significantly in terms of job assignments and scope of responsibility.

The City Manager approved out-of-class assignment pay for all three incumbents pending the analysis and creation of new job classifications and the assignment of appropriate salary ranges in the current labor market. The three proposed changes affecting existing incumbents include:

1. Public Works Superintendent. The scope of responsibility for this classification has changed significantly enough over the last several years to justify rewriting the class specification to include new and expanded duties, and to reassess the compensation for the position in the current labor market. Additional responsibilities and/or duties being performed outside the scope of the existing job classification include management of the City’s 800MHZ Radio Communication System, management of certain storm drain and drainage channel maintenance and improvement projects, management of the City fleet, and the related management of the City’s fueling station. Staff recommends a

FISCAL YEAR 2022/23 MID-YEAR BUDGET UPDATE
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5% wage structure increase in conjunction with the expanded scope of the position.

2. Payroll Technician. The City’s payroll has traditionally been processed by the Accounting Technician classification; a broad classification intended to perform much of the transaction business of the Finance Department. The processing of payroll has become increasingly complex in California’s unique employment law environment and the City’s adoption of an enterprise financial system (Munis) has increased the technical competency required for payroll administration. This proposed change is to create a Payroll Technician classification that captures the complexity and technical proficiency of the position. Staff recommends a 5% wage structure increase in conjunction with the expanded scope of the position.

3. Communications Specialist. As the City grows more reliant on public communications through the use of broadcast, streaming, social media, special events and other enhanced communications to the public, staff has identified the need to attract and retain staff who are well-versed in multi-channel media communications and event support. This includes the production of graphics, specialized communications and publications, and event management. To meet this need, staff is proposing the enhancement of the Graphic Specialist classification to Communications Specialist to capture the expanded responsibilities and skills needed to support the City’s communications. Staff recommends a 10% wage structure increase in conjunction with the expanded scope of the position.

The fourth item, which does not affect an existing incumbent, proposes to create a Permanent Part-Time (PPT) Senior Library Page at the Yorba Linda Public Library to address attraction and retention issues that have arisen from the Temporary Part-Time (PT) nature of the existing position at the Library. The net effect is to change an existing 20-hour PT position to a 30-hour PPT position.

FISCAL IMPACT
Staff’s current projection for fiscal year 2022/23 remains positive with a projected General Fund budget surplus of $730,000.

ALTERNATIVES
The City Council could choose not to approve one or more of the mid-year budget adjustments and/or provide staff with direction to undertake any additional analysis by the City Council.

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ATTACHMENTS

1. List of Mid-Year Budget Requests

2. List of Budget Adjustments through the Second Quarter of Fiscal Year 2022/23

Department / Item Account Number Budget
Adjustment
General Fund Revenue Changes
Sales Tax 1015120-312010 $ 440,000
Disposal Franchise 1015130-313050 $ 50,000
Cable TV Franchise 1015130-313080 $ (26,875)
Oil Well Certificates 1015140-314020 $ (6,000)
Property Transfer Tax 1015150-315010 $ (75,000)
TOT - Ayres Hotel 1015160-316010 $ 25,000
TOT - Extended Stay America 1015160-316020 $ (50,000)
Building Permits 1015210-321010 $ 200,000
Plan Checks 1015210-321020 $ 100,000
Senior Mobility 1015300-351080 $ 32,850
Miscellaneous State Grant - DUILA 1015340-353090 $ 291,120 Rental Revenue - Travis Ranch 1015400-342040 $ 35,600
Rental Revenue - Community Center 1015400-342060 $ 24,900 Rental Revenue - Field House 1015400-342070 $ 28,475
Rental Revenue - Cultural Arts Center 1015400-342080 $ (44,200) Rental Revenue - Miscellaneous Facilities 1015400-342150 $ (10,300) Recreation Programs - P&R Processing Fee 1015430-363010 $ (13,250) Recreation Programs - Donations 1015430-363040 $ (20,750) Recreation Programs - Special Events 1015430-363050 $ 250 Recreation Programs - Pre-school 1015430-363100 $ (35,475) Recreation Programs - Teen Scene 1015430-363110 $ (23,000) Recreation Programs - Adult Sports 1015430-363120 $ (25,150) Recreation Programs - Youth Sports 1015430-363130 $ 24,550 Recreation Programs - Adult Contract 1015430-363140 $ (15,000) Recreation Programs - Youth Contract 1015430-363150 $ 350,150 Recreation Programs - Seniors 1015430-363160 $ (1,975)
Recreation Programs - In-house Programs 1015430-363200 $ 50 Recreation Programs - Non-resident fees 1015430-363250 $ 4,300 Recreation Programs - Recreation Brochure Ads 1015430-363300 $ (13,350) Facility Maintenance Reimbursement 1015430-387050 $ (9,150) Interest Revenue 1015500-341010 $ (75,000)
Court Fines 1015600-331010 $ (15,000)
Miscellaneous Reimbursement - Republic Canopy Damage 1015900-387090 $ 73,000 Miscellaneous Income - Republic 1015900-388090 $ 200,000 Transfer In/207 Grant Fund - NOC Public Safety Collaborative 1015900-388090 $ 118,181 Total General Fund Revenue Changes $ 1,538,951
Total General Fund Resources Changes $ 1,538,951
City of Yorba Linda
Fiscal Year 2022/23 Mid-Year Budget Requests

Department / Item Account Number Budget
Adjustment
City of Yorba Linda
Fiscal Year 2022/23 Mid-Year Budget Requests
General Fund Appropriation Requests
Administration
Claims Settlements (Risk Management) 1010150-427400 $ 250,000 Insurance Premiums (new Golf Course equipment) 1010150-427450 $ 50,000 Administration Total $ 300,000
Community Development
Additional microfilming services 1010210-424330 $ 6,000 Printing charges related to Job Cards & Correction Notices 1010210-424380 $ 500 Construction Inspection Services 1010210-431400 $ 35,000 Plan Check Services 1010210-431530 $ 50,000
Temporary Personnel 1010210-433200 $ 30,000
Consultant Services (Add'l carryover for Housing Element) 1010220-431950 $ 30,756 Community Development Total $ 152,256
Finance
Personnel Reclassification - Payroll Technician various $ 4,000 Professional Services 1010600-431080 $ 5,000
Bank Fees 1010600-431110 $ 17,000
Finance Total $ 26,000
Parks & Recreation
Overtime 1010400-410210 $ 500
Special Supplies - ActiveNet upgrade & staff uniforms 1010400-421100 $ 11,800 Overtime 1010410-410210 $ 4,000
Recreation Classes 1010410-433100 $ 150,000
Concert in the Park music license increase/additional license 1010410-433510 $ 1,500 Printing/Design services for Activity Guide 1010410-424450 $ 35,000 Overtime 1010420-410210 $ 500
PYLUSD increased costs at Travis Ranch 1010420-430250 $ 6,000 Part-time salaries - Adventure Playground 1010430-40XXX $ 22,375 Overtime 1010430-410210 $ 3,000
Youth Activities - additional programming @ Arts Center 1010430-421140 $ 18,550 Overtime 1010440-410210 $ 1,000
Senior Mobility Program - additional funding 1010440-430230 $ 25,000 Part-time salaries - Adventure Playground 1010450-40XXX $ 40,000 Overtime 1010450-410210 $ 3,000
Custodial Service - updated pricing for FY 22/23 1010450-432100 $ 8,000 Contract service for waterslide & splashtacular maintenance 1010450-432750 $ 45,000 Additional Tree Maintenanece 1010460-432300 $ 35,000
Misc. Contract Services - annual maintenance telescopic theatrical seating at Black Box Theater 1010475-424600 $ 3,000

Department / Item Account Number Budget
Adjustment
City of Yorba Linda
Fiscal Year 2022/23 Mid-Year Budget Requests
Custodial Supplies - Arts Center 1010475-421010 $ (2,000) AV Operations - Arts Center 1010475-432050 $ (10,000)
Parks & Recreation Total $ 401,225
Police Services
Additional maintenace costs for vehicles 1010500-424050 $ 5,000 Increased natural gas costs 1010500-425200 $ 1,000
Custodial Supplies 1010500-421010 $ 500
Sheriff's Department Overtime 1010500-430070 $ 385,100
Police Services Total $ 391,600
Public Works
Personnel Reclassification - Public Works Superintendent various $ 8,600 Consultant Services - traffic signal & associated projects 1010320-431450 $ 25,000 Auto Gas & Supplies - gasoline for Police motorcycles 1010330-421160 $ 10,000 Replacement of Fuel Yard Canopy (Reimbursed by Republic) 1010330-432500 $ 73,000 Fleet washing services 1010330-424050 $ 5,000
Public Works Total $ 121,600
General Fund Expenditure Total $ 1,392,681
LMAD Fund Appropriation Requests
Additional Misc. Engineering Services for Assessment District Engineer's Report/218 Services 2010350-431480 $ 36,000
Repairs/Replacements for accident related items and LED sign installation 2010350-432850 $ 37,600 LMAD Fund Expenditure Total $ 73,600
Library Fund Revenue Changes
Rental/Library Community Room - lower than anticipated 2025400-342120 $ (35,000) Total Library Fund Resources Changes $ (35,000)
Library Fund Appropriation Requests
Personnel Reclassification - Communications Specialist various $ 9,100 Total Library Fund Expenditure Total $ 9,100
Miscellaneous Grant Fund Appropriation Requests
Transfer Out/General Fund - NOC Public Safety Collaborative 2071999-491010 $ 118,181 Total Miscellaneous Grant Fund Expenditure Total $ 118,181

Department / Item Account Number Budget
Adjustment
City of Yorba Linda
Fiscal Year 2022/23 Mid-Year Budget Requests
SB-2 Fund Revenue Changes
Miscellaneous State Grant - Additional SB-2 Funds 2165310-353090 $ 102,260 Total SB-2 Fund Resource Changes $ 102,260

ATTACHMENT B
Date Type Purpose Amount Authorization Fund Department Account No.

GENERAL FUND ADJUSTMENTS
7/1/2022 Appropriation FY 21/22 Carryovers - General Fund (Reserves) $ 279,318 City Council General Finance Various BUA-199 8/2/2023 Appropriation Professional Services - HF&H for organic program implementation $ 80,500 City Council General Administration 1010170-433950 BUA-248 9/21/2022 Appropriation Reimbursement to OCTA for sale of property @ 18231 Imperial Hwy $ 541,533 City Council General Public Works 101310-433950 BUA-128 11/16/2022 Appropriation Reimbursement to Zelman Development per Subdivision Agreement $ 68,268 City Council General (Reserves) Public Works 1010310-433950 BUA-82 12/6/2022 Appropriation Additional contribution to unfunded CalPERS liability - excess reserves $ 305,679 City Council General (Reserves) Finance 1010120-411120 BUA-105 12/6/2022 Appropriation Additional contribution to unfunded OPEB liability - excess reserves $ 426,200 City Council General (Reserves) Finance 1010120-411130 BUA-105 12/6/2022 Appropriation Transfer year end excess General Fund reserves to Special Reserves $ 5,000,000 City Council General (Reserves) Finance 101199-491020 BUA-105 12/20/2022 Appropriation Additional costs for weed abatement - YL Fuel Reduction Project $ 59,019 City Council General Public Works 1010330-432600 BUA-104 Total General Fund Adjustments - Through 2Q FY2022/23 $ 6,760,517

OTHER ADJUSTMENTS/TRANSFERS
7/1/2022 Transfer Adjust FY 22/23 adopted budget to correct accounts $ 30,000 City Manager LMAD Finance Various BUA-155 7/1/2022 Appropriation FY 21/22 Carryovers - Special Reserves Fund $ 64,770 City Council Special Reserves Finance Various BUA-199 7/1/2022 Appropriation FY 21/22 Carryovers - LMAD Fund $ 21,178 City Council Library Finance Various BUA-199 7/1/2022 Appropriation FY 21/22 Carryovers - Library Fund $ 2,675 City Council LMAD Finance Various BUA-199 7/1/2022 Appropriation FY 21/22 Carryovers - CIP Fund $ 2,822,459 City Council CIP Finance Various BUA-199 7/1/2022 Appropriation FY 21/22 Carryovers - Traffic Mitigation Fund $ 4,453 City Council Traffic Mitigation Finance Various BUA-199 7/1/2022 Appropriation FY 21/22 Carryovers - Black Gold Golf Course Fund $ 1,073,936 City Council Black Gold Golf Course Finance Various BUA-199 7/18/2022 Transfer Move budget for landscape replacement $ 3,000 City Manager Library Library 2020700-432700 BUA-78 7/20/2022 Transfer Move budget to correct object account for computer service/toner $ 19,000 City Manager General Information Tech 1010130-424150 BUA-101 7/27/2022 Appropriation Additional cost for purchase of vehicle $ 1,398 City Manager Special Reserves Parks & Recreation 1021000-461050 BUA-139 8/3/2022 Transfer Transfer budget for NAGDA conference $ 640 City Manager General Administration 1010120-426050 BUA-22 9/21/2022 Appropriation Amendment to contract with Merchants Landscaping Services $ 185,828 City Council LMAD Public Works 2010350-432950 BUA-128 9/21/2022 Appropriation Reimbursement to OCTA for sale of property @ 18231 Imperial Hwy $ 541,533 City Council Library Public Works 2021999-491010 BUA-128 10/7/2022 Transfer Move budget to correct object account for capital outlay $ 10,650 City Manager General Public Works 1010300-461150 BUA-29 10/10/2022 Transfer Move budget for staff shirt purchase $ 2,400 City Manager General Public Works 1010300-421100 BUA-31 10/11/2022 Transfer Move budget for emergency fuel purchases $ 15,000 City Manager General Public Works 1010330-421160 BUA-38 11/1/2022 Appropriation Additional appropriation for SI211001 from Measure M2 Fund $ 402,303 City Council CIP Public Works 4010050-461620 BUA-166 11/10/2022 Transfer Move budget for vehicle purchase $ 25,000 City Manager General Public Works 1010330-461050 BUA-64 11/22/2022 Transfer Move budget for window washing $ 8,100 City Manager Library Library 2020700-432100 BUA-112 11/22/2022 Transfer Move budget for day porter $ 4,500 City Manager Library Library 2020700-432100 BUA-116 12/21/2022 Appropriation Appropriate grant funds for electronic library collection $ 4,022 City Manager Library Library 2020700-427260 BUA-84 12/6/2022 Appropriation Additional contribution to unfunded CalPERS liability - excess reserves $ 61,283 City Council Library (Reserves) Finance 2020700-411120 BUA-105 12/6/2022 Appropriation Additional contribution to unfunded OPEB liability - excess reserves $ 85,400 City Council Library (Reserves) Finance 2020700-411130 BUA-105 12/6/2022 Appropriation Transfer year end excess General Fund reserves to Special Reserves $ 500,000 City Council Library (Reserves) Finance 2021999-492030 BUA-105 Total $ 18,509,211
City of Yorba Linda
Quarterly Listing of Year-To-Date Line-Item Budget Transfers and Supplemental Budget Appropriations Fiscal Year 2022/23 - Mid-Year Adjustments

MARCH 7, 2023 CITY COUNCIL MEETING
ADMINISTRATIVE REPORTS ITEM NO. 10 – FISCAL YEAR 2022/23 MIDYEAR BUDGET UPDATE

ADDITIONAL MATERIAL RECEIVED AFTER POSTING OF AGENDA

FINANCE DEPARTMENT
DATE: MARCH 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIANNA HONEYWELL, FINANCE DIRECTOR / CITY TREASURER SUBJECT: FISCAL YEAR 2022/23 MID-YEAR BUDGET UPDATE

RECOMMENDATION

It is recommended that the City Council:

1. Approve adjustments to the fiscal year 2022/23 operating budget as follows (Attachment 1):

Fund Resources Appropriations
General Fund $1,538,951 $1,392,681
LMAD Fund $ 0 $ 73,600
Library Fund <$ 35,000> $ 9,100
Grant Fund $ 0 $ 118,181
SB-2 Fund $ 102,260 $ 0
Total $1,606,211 $1,593,562

2. Receive and file the attached list of line-item budget transfers and supplemental budget appropriations for the first two quarters of the fiscal year (Attachment 2), as required by City Council Policy A-15 – Supplemental Budget and Line-Item Transfers.

3. Adopt Resolution No. 2023-5841 relating to the classification, compensation, and terms of employment of Miscellaneous and Mid-Management employees and amending Resolution No’s. 2021-5773 and 2021-5774.

BACKGROUND

On June 15, 2021, the City Council adopted the Two-Year Budget for fiscal years 2021/22 and 2022/23. On June 21, 2022, the Mid-Term budget was adopted to adjust FY 2022/23.

On January 17, 2023, staff presented the first quarter budget update for fiscal year 2022/23.

There were no significant budget changes at that time.

DISCUSSION

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Since the Mid-Term budget was adopted in June, the City Council has made additional appropriations, the revenue projection for the General Fund has been revised based on new information and the City Manager has authorized several small adjustments to the budget pursuant to City Council Policy F-4. Proposed revisions to the revenue and appropriations estimates are discussed throughout the report and summarized below.

Requested Mid-Year Budget Adjustments to the General Fund General Fund Revenue Adjustments
Total operating revenue is projected to increase by $1,420,770 with total revenue (including interfund transfers) increasing by $1,538,951 and are summarized as follows:

Sales Tax - $440,000
 Increases in sales tax are driven mainly by gasoline sales, heavy industrial equipment sales and the rebound in local restaurants with people venturing out more since the end of the pandemic.

Franchise Tax - $23,125
 This is due to an increase in disposal franchise fee revenue offset by a decrease in cable television franchise fee revenue.

Other Taxes - <$106,000>
 This reduction in revenue is due primarily to lower property transfer tax revenue due to the slowing of the housing market and a reduction in TOT revenue at one of the City’s hotels.

Fees, Charges & Permits - $300,000
 Building permit and plan check revenue is tracking higher than anticipated due to some larger projects coming online and a higher volume of routine permits.

Parks & Recreation Revenue - $289,525
 This increase is due to overall increases in rental revenue and recreation program revenue, mainly attributed to the upcoming programming at Adventure Playground.

Other Revenue/Transfers - $592,301
 This category includes an increase in miscellaneous income from Republic Services in the amount of $200,000 which was negotiated as part of the recent contract negotiations, reimbursement for damage to the fuel station canopy, a transfer in from the Grant Fund for funds received in FY 2021/22 from the North Orange County Public Safety Collaborative, offset by a reduction in interest revenue and court fines.

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General Fund Expenditure Adjustments
The operating expenditures are projected to increase by $1,392,681. Highlights of the changes are summarized as follows:

Administration - $300,000
 Risk Management – Increase in anticipated claims settlements ($250,000) and increased insurance premiums for the newly updated Black Gold Golf Course equipment ($50,000).

Community Development - $152,256
 Building – Additional microfilming services, printing charges, construction inspection services, plan check services and temporary personnel ($121,500).  Planning – Consultant services carryover from FY 21/22 not recorded at the time carryover adjustments were made in September 2022 ($30,756).

Finance - $26,000
 Personnel reclassification – Payroll Technician (see separate personnel section) ($4,000).
 Overtime, Professional services for a special project and additional bank fees due to increase in online transactions ($22,000).

Parks & Recreation - $401,225
 Administration – Overtime*, special supplies ($12,300).  Contract Class – Overtime*, Increase to contract class instructor costs, Concert in the Park music and printing/design for the Activity Guide ($190,500).  Travis Ranch – Overtime*, PYLUSD increased costs ($6,500).  Youth Activities – Overtime*, Adventure Playground staffing, additional programming at Arts Center ($43,925).
 Community Center – Overtime*, additional funding for the Senior Mobility Program ($26,000).
 Field House – Overtime*, Adventure Playground staffing, custodial services price increases, contract services for waterslide and splashtacular maintenance at Adventure Playground ($96,000).
 Park Maintenance – Additional tree maintenance ($35,000).  Cultural Arts Center – Annual maintenance on telescopic theatrical seating at Black Box Theater offset by reduction in custodial supplies and AV operations (<$9,000>). *Overtime in various divisions is due to the need to backfill vacant part-time positions with full-time employees to provide scheduled programming.

Police Services - $391,600
 Initial year-end projections by the Orange County Sheriff’s Department indicate a balance of $385,000 in overtime will need to be paid by the City, so this amount has been reflected in the mid-year budget adjustments. However, our Chief of Police Services, Captain Walehwa, predicts that the number will be lower due to the

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significant number of vacancies at the beginning of the fiscal year. To be conservative, the full amount of overtime is being reflected at this time. Other adjustments include additional vehicle maintenance costs, increased natural gas costs and additional custodial supply costs.

Public Works - $121,600
 Personnel reclassification - Public Works Superintendent (see separate personnel section) ($8,600).
 Traffic & Transportation – Consultant services for traffic signals and associated projects ($25,000).
 Infrastructure Maintenance – Replacement of fuel yard canopy (reimbursable by Republic), gasoline for Police motorcycles, and additional fleet washing services ($88,000).

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The following schedule summarizes the changes to the General Fund resources and appropriations that are proposed in this report:

ADJ BUDGET YTD ACTUALS MID-YEAR REVISED
12/31/2022 12/31/2022 ADJUSTMENT BUDGET

RESOURCES
Property Taxes 23,784,064 $ 7,278,911 $ - $ 23,784,064 $ Sales & Use Tax 8,560,000 2,189,871 440,000 9,000,000 Franchise Tax 2,247,486 336,753 23,125 2,270,611 Other Taxes 1,718,100 604,425 (106,000) 1,612,100
Fees, Charges & Permits 2,151,618 1,487,475 300,000 2,451,618 Parks & Recreation Revenue 2,285,399 905,814 289,525 2,574,924 Administrative Charges 1,795,484 889,060 1,795,484
Other Revenue 868,800 307,073 474,120 1,342,920
Total Operating Revenue 43,410,951 13,999,382 1,420,770 44,831,721 Interfund transfers 944,783 - 118,181 1,062,964 Fd Balance Reserves 9,019,952 5,944,586 - 9,019,952 Total Resources 53,375,686 19,943,968 1,538,951 54,914,637

APPROPRIATIONS
Administration $8,925,940 $5,166,038 $300,000 $9,225,940 City Attorney 650,000 229,058 - 650,000 Community Development 3,851,612 1,778,845 152,256 4,003,868 Finance 1,296,961 627,194 26,000 1,322,961 Non-Departmental 34,800 15,636 - 34,800 Parks & Recreation 8,811,495 4,064,287 401,225 9,212,720 Police Services 13,837,722 6,823,438 391,600 14,229,322 Public Works 6,681,724 3,076,111 121,600 6,803,324 Vacancy Factor (241,358) - - (241,358) Total Operating Expenditures 43,848,896 21,780,607 1,392,681 45,241,577 Transfer to Special Reserves 5,000,000 5,000,000 - 5,000,000 Transfer to LMAD 943,735 - - 943,735 Transfer to Capital Projects Fund 2,999,506 - - 2,999,506 Total Appropriations 52,792,137 26,780,607 1,392,681 54,184,818 Excess Resources over Appropriations $583,549 ($6,836,639) $146,270 $729,819 Fund Balance Reserves @ 7/1/2021 31,633,612 31,633,612 31,633,612 31,633,612 Less Uses of Fd Bal Reserves (5,944,586) (9,019,952) - (9,019,952) Est. Fund Balance Reserves @ 6/30/22 23,197,209 18,852,387 31,779,882 23,343,479 Uses of Fund Balance Reserves:

Transfer out - CIP 2,940,487 $ - $ - $ 2,940,487 $
Zelman Subdivision Impr Agreement 68,268 68,268 $ - $ 68,268 Add'l CalPERS payment 305,679 305,679 - 305,679 Add'l OPEB Payment 426,200 426,200 - 426,200 Transfer to Special Reserves 5,000,000 5,000,000 - 5,000,000 GF Carryovers from FY 21/22 279,318 144,439 - 279,318 9,019,952 5,944,586 - 9,019,952

CITY OF YORBA LINDA

GENERAL FUND BUDGET
FY 2022/23 - MID-YEAR BUDGET TOTALS

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Requested Mid-Year Budget Adjustments to the LMAD Fund
There are minor adjustments to the LMAD fund including the appropriation of additional miscellaneous engineering services for the LMAD’s Engineer’s Report and Proposition 218 services and additional services for traffic accident-related signal pole replacements and LED sign installation.

Requested Mid-Year Budget Adjustments to the Library Fund There is one minor adjustment to the Library Fund revenue projection. Community Room rentals are lower than anticipated so the revenue needs to be reduced by $35,000.

Additionally, there is an appropriation for the reclassification of the Graphic Specialist to a Communications Specialist (see separate personnel section) in the amount of $9,100.

Requested Mid-Year Budget Adjustments to Other Funds
There is a requested transfer from the Miscellaneous Grant Fund to the General Fund for funds received from the North Orange County Public Safety Collaborative in FY 2021/22.

These funds should have been originally deposited in the General Fund last fiscal year.

Revenue in the SB-2 Fund is being increased to reflect actual anticipated revenue for FY 2022/23.

Requested Mid-Year Personnel Changes
The Mid-Year budget proposes four personnel changes. Three of the changes are related to existing staff, and the fourth proposes to create a permanent part-time position at the Yorba Linda Public Library to address attraction and retention issues.

Of the three proposed changes affecting existing staff, City staff conducted job analysis of the three positions during FY 2022/23 and determined that the essential functions of the positions had changed significantly in terms of job assignments and scope of responsibility.

The City Manager approved out-of-class assignment pay for all three incumbents pending the analysis and creation of new job classifications and the assignment of appropriate salary ranges in the current labor market. The three proposed changes affecting existing incumbents include:

1. Public Works Superintendent. The scope of responsibility for this classification has changed significantly enough over the last several years to justify rewriting the class specification to include new and expanded duties, and to reassess the compensation for the position in the current labor market. Additional responsibilities and/or duties being performed outside the scope of the existing job classification include management of the City’s 800MHZ Radio Communication System, management of certain storm drain and drainage channel maintenance and improvement projects, management of the City fleet, and the related management of the City’s fueling station. Staff recommends a

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5% wage structure increase in conjunction with the expanded scope of the position.

2. Payroll Technician. The City’s payroll has traditionally been processed by the Accounting Technician classification; a broad classification intended to perform much of the transaction business of the Finance Department. The processing of payroll has become increasingly complex in California’s unique employment law environment and the City’s adoption of an enterprise financial system (Munis) has increased the technical competency required for payroll administration. This proposed change is to create a Payroll Technician classification that captures the complexity and technical proficiency of the position. Staff recommends a 5% wage structure increase in conjunction with the expanded scope of the position.

3. Communications Specialist. As the City grows more reliant on public communications through the use of broadcast, streaming, social media, special events and other enhanced communications to the public, staff has identified the need to attract and retain staff who are well-versed in multi-channel media communications and event support. This includes the production of graphics, specialized communications and publications, and event management. To meet this need, staff is proposing the enhancement of the Graphic Specialist classification to Communications Specialist to capture the expanded responsibilities and skills needed to support the City’s communications. Staff recommends a 10% wage structure increase in conjunction with the expanded scope of the position.

The fourth item, which does not affect an existing incumbent, proposes to create a Permanent Part-Time (PPT) Senior Library Page at the Yorba Linda Public Library to address attraction and retention issues that have arisen from the Temporary Part-Time (PT) nature of the existing position at the Library. The net effect is to change an existing 20-hour PT position to a 30-hour PPT position.

FISCAL IMPACT
Staff’s current projection for fiscal year 2022/23 remains positive with a projected General Fund budget surplus of $730,000.

ALTERNATIVES
The City Council could choose not to approve one or more of the mid-year budget adjustments and/or provide staff with direction to undertake any additional analysis by the City Council.

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ATTACHMENTS

1. List of Mid-Year Budget Requests

2. List of Budget Adjustments through the Second Quarter of Fiscal Year 2022/23

3. Resolution No. 2023-5841

RESOLUTION NO. 2023-5841

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, RELATING TO THE CLASSIFICATION,

COMPENSATION AND TERMS OF EMPLOYMENT OF

MISCELLANEOUS AND MID-MANAGEMENT EMPLOYEES
AND AMENDING RESOLUTION NO’S. 2021-5773 AND
2021-5774
WHEREAS, the City management and employee representatives have met and conferred in good faith to reach an agreement to provide certain classes of the City’s employees with salary increases and other benefits pursuant to Government Code Section 3500 et seq.; and
WHEREAS, the City desires to amend Resolution No. 2021-5773 and Resolution No. 2021-5774; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Yorba Linda does hereby amend Resolution No. 2021-5773 and Resolution No. 2021-5774 and adopt the salary ranges listed below effective March 20, 2023:

Miscellaneous Step A Step B Step C Step D Step E
Communications Specialist 5,222 5,483 5,757 6,045 6,347 Payroll Technician 5,347 5,614 5,895 6,190 6,499
Senior Library Technician 2,947 3,094 3,248 -- --
Mid Management
Public Works Superintendent 10,856 11,399 11,969 12,567 13,196 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 7th day of March, 2023. ______________________________

GENE HERNANDEZ, MAYOR

CITY OF YORBA LINDA
ATTEST:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

RESOLUTION NO. 2023-5841
PAGE NO. 2
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
______________________________

CITY ATTORNEY

STATE OF CALIFORNIA )
ss.

COUNTY OF ORANGE )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 7th day of March, 2023, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

PARKS AND RECREATION DEPARTMENT
DATE: MARCH 7, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE KUDRON, DIRECTOR OF PARKS AND RECREATION
PREPARED BY: RICH CESSNA, BLACK GOLD GENERAL MANAGER
SUBJECT: 2021-2022 BLACK GOLD GOLF CLUB FISCAL YEAR IN REVIEW

RECOMMENDATION
It is recommended that City Council:

1. Appropriate $540,000 of Black Gold Golf Club FY 21/22 profits toward repayment of the golf course debt and,

2. Authorize staff to establish a capital reserve fund for Black Gold Golf Club and appropriate a transfer in the amount of $511,688 to the fund.

BACKGROUND
Annually, a report is provided to the City Council to review the performance of Black Gold Golf Club for the previous fiscal year.

DISCUSSION
Over the past two fiscal years, COVID-19 created an environment that reinvigorated the golf industry. Golfers that left the game returned, and more new golfers entered the game than ever in golf’s history. As golf’s popularity grew, so did the demand for tee times and golf equipment. Golf equipment orders outpaced supply, and coupled with the supply chain issues, golfers waited extended periods of time for their orders to be fulfilled. Demand for tee times has been at record levels. Fortunately for the golf industry, this was a common theme throughout the country, which helped turn a flat industry profile into a booming economy for the industry.

Prior to the pandemic, Black Gold was in the process of evaluating and implementing new business practices and facility improvements throughout all departments to facilitate the ability to stay current with market trends, be as competitive as possible, as well as take the opportunity to make operational improvements provided by advancements in software

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related to point of sale systems and customer relation management. As these improvements were being implemented, the high demand due to the pandemic became the perfect storm to ramp up the implementation of improvements across the board to match the higher total number of visitors in both golf and food & beverage.

It became very clear the improvements to the operation were having the desired effect as rounds of golf increased, total green fee revenues and averages increased, and the food and beverage operation began to experience higher total numbers of guests and revenues, with outstanding reviews. With the new operational items now firmly entrenched in all departments, and the demand still high, staff was able to successfully implement and execute the plan resulting in the most successful fiscal year in Black Gold’s history.

Golf Operations- With the high demand for golf, the management team decided to adjust tournament bookings to allow for as many guest tee times as possible. By reducing the overall number and type of golf outings, more individual golfers would be provided the opportunity to experience Black Gold more often. This was especially helpful for the new golfers who needed to play more rounds to become comfortable with making tee times, checking in, and learning all the nuances of the game and golf etiquette. This also helps build loyalty and a love of the game.

Black Gold has traditionally budgeted approximately 58,000 rounds of golf played annually, which provides a balance of a great experience by eliminating overcrowding and preventing additional wear and tear on the golf course. With the demand at the highest in golf’s history, Black Gold was forced to limit the number of golfers per day to maintain an acceptable pace of play (important part of the experience), as well as prevent the golf course from becoming damaged from just the sheer volume of visitors (wear and tear). Even with the restrictions in place, Black Gold recorded 64,716 total rounds played, which was down from the previous year of 67,251. Although the goal of reducing the overall number of rounds was successful, Black Gold still produced more than 6,000 rounds beyond their normal targeted average of 58,000. This is obviously a good problem.

Black Gold has been a leader in the development of junior golfers in Orange County for many years. The 2021/2022 fiscal year was no exception and junior golf programs were in very high demand. In addition to juniors, all of Black Gold’s instructors fielded a higher-thannormal volume of calls and emails from new golfers interested in golf instruction. As an industry, new and returning golfers are also ordering new golf equipment, which has placed even more demand on the equipment manufacturers, which are still struggling with supply chain issues.

Golf operation highlights include:
 Green fee revenues were $4,898,162 representing an increase of $909,174 over the prior year and an increase of $1,087,913 over original budget.  Driving range revenues exceeded the prior year by $12,508.  Tournament revenues exceeded budget by $131,723 and prior year by $457,702.

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 Rounds played exceeded budget by 2,558, but decreased over prior year by 2,535.

Reducing total rounds played was part of the overall plan to help improve the overall experience and decrease wear and tear. The average rate per player finished at $76, which was an increase of $15 over budget and $17 over prior year.  Black Gold is the host facility for boys & girls golf teams for the following schools:

CSUF, Yorba Linda HS, Esperanza HS, El Dorado HS, and Orange Lutheran HS.

Food & Beverage Operations- The Black Gold management team was in the beginning stages of a major overhaul of the Food & Beverage (F&B) Department prior to the start of the COVID-19 Pandemic. The team took the opportunity during COVID to implement many changes. Although the 2020/2021 fiscal year was challenged by a rollercoaster ride of rules and regulations involving the ability to gather (restaurants & banquets), it did provide the opportunity to hire and train new staff, test many new menu items, and implement new promotions and marketing ideas. With the training and testing complete, the 2021/2022 fiscal year plan included the new menus and marketing plan.

As part of the plan to elevate Derricks Grille from the perception of just a golfer’s amenity to a standalone restaurant, Black Gold’s management team made several managerial, operational, and service changes to the F&B Department. The goal was to change the overall look, feel, and menu options to attract residents from Yorba Linda and the surrounding cities. With the best view in Yorba Linda, guests could now enjoy the best food, service, and environment.

Fortunately, the extensive planning, training and marketing paid off with the 2021/2022 fiscal year being the best performing year ever for the Black Gold F&B Department, which included the Yorba Linda Community Center (YLCC). This resulted in the department exceeding their annual budget by more than $990K. Center Weddings & Events at YLCC exceeded their budget by more than $93K after posting $0.00 in revenues the prior year due to COVID.

Total revenues for the F&B Department set an all-time record.

Supply chain issues did pose challenges throughout the fiscal year. The cost of products or the sudden unavailability of items created challenges that the staff handled very well. The Chef was able to maintain acceptable cost of goods sold considering the hurdles he faced on a daily basis. In addition to the supply chain issues, the labor shortages created a tremendous amount of overtime for many staffers.

Notable F&B statistics include:
 Derricks Grille a la carte revenues exceeded the prior year by $632,249 and budget by $714,977.
 Weddings, events and banquet revenues exceeded prior year by $677,151 and budget by $182, 676.
 Total revenues for the F&B Department were 147% of budget and 182% of prior year.

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 Center Wedding & Events at YLCC was 198% of budget. Salesperson Holly Hamlin did a wonderful job reestablishing event business at YLCC after the COVID Pandemic.

Awards- Black Gold and Center Weddings & Events received the following awards, recognitions, and ratings during FY 2021/2022: Best of Orange County; Top Three Public Golf Course, Wedding Wire, 5.0 Stars; Couple’s Choice Award (Wedding Wire); The Knot,

4.8 Stars; Golf Range Association of America, Top 50 Public Ranges; Yelp, 4 Stars; KemperSports, and True Service Excellence Award.

State of the Golf Industry- For more than two decades, golf participation was flat with nearly the same number of new golfers replacing those leaving the game. However, the popularity of golf exploded during the pandemic as golf was recognized as a safe outdoor activity coupled with people having more time to participate. Across the entire county golf courses are seeing demand at levels like the 1997 Tiger Woods effect. Nationwide, depending on regions, golf is up between 12% - 20%. The goal now is to convert new and returning golfers into loyal guests of Black Gold Golf Club, as well as focusing on the growth of the game.

FISCAL IMPACT
Black Gold Golf Club had an outstanding year financially. Revenue totaled $9,138,075 and expenditures were $8,086,387, which included repayment of $460,000 in debt obligations. The end result was a net profit of $1,051,688 for FY 21/22. This was a record setting year as golf demand continues to be at an all-time high, reinvigorated by the COVID pandemic. However, golf has not been historically recession proof and demand for golf is anticipated to soften over time, so this level of profit should not be counted on moving forward.

In looking to the future, City and Kemper staff are striving to achieve two main goals; pay off the golf course debt and establish a capital reserve fund. In 2020, the City Council approved a long-term fiscal sustainability plan to repay the negative cash that was incurred during years when the golf course lost money. At that time, the enterprise fund was in debt by approximately $2,300,000. In summary, the plan set forth a repayment schedule over a 10- year period, in which the debt would be completely paid off in FY 29/30.

Due to the very successful year, staff is proposing to appropriate $540,000 of FY 21/22 profits toward repayment of the golf course debt. This payment would be applied to FY 22/23 because the books have already been closed for FY 21/22. This payment would be in addition to $250,000 that has already been budgeted for repayment in the current fiscal year. This action would shorten the repayment period by 2-years as shown in the repayment table below:

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Staff then recommends appropriating a transfer of the remaining profit of $511,688 to establish a capital reserve fund. The course and clubhouse are now twenty years old and will require significant repairs and upgrades in the future. As an example, the golf course irrigation system will need to be replaced in 5-10 years. This will be a substantial project and is estimated at over $1,000,000. To accomplish large projects of this nature, a separate capital reserve fund is needed for projects that are too expensive to include in the normal annual operating budget and to negate borrowing additional funds. City and Kemper staff are also evaluating potential significant upgrades to the property, which could enhance future revenues. Potential projects could include expansion and improvements to the restaurant patio and upgrades at the driving range to add ball flight trackers and lounge areas, similar to those at Top Golf facilities. The capital reserve fund could also be beneficial if the golf course has a negative fiscal year, in which the reserve could be used to maintain the debt repayment schedule.

In addition to large capital projects, ongoing maintenance, repair, and replacement will be needed for items such as furniture, fixtures, and equipment (FF&E); parking lot resurfacing; interior and exterior painting; course improvements, and other projects. These are generally smaller projects, which would continue to be budgeted through the normal annual operating budget.

At the conclusion of the debt repayment and once a healthy capital reserve fund can be established, profits that are achieved at Black Gold can then be used by the City for General Fund or other purposes. The recommendations proposed here in this staff report were reviewed by the Finance Committee on December 20, 2022, and recommended for City Council consideration.

ALTERNATIVES
City Council could recommend appropriating a different level funding for repayment of golf course debt and establishment of a capital reserve fund.