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HomeMy WebLinkAbout2026-07-21 Agenda PacketAGENDA City Council/Public Financing Authority Tuesday, July 21, 2026 4:00 PM - Closed Session 6:00 PM - Regular Meeting Council Chambers 2000 Main Street Huntington Beach, CA 92648 MAYOR AND CITY COUNCIL CASEY MCKEON, Mayor BUTCH TWINING, Mayor Pro Tem PAT BURNS, Councilman ANDREW GRUEL, Councilman DON KENNEDY, Councilman GRACEY VAN DER MARK, Council Woman CHAD WILLIAMS, Councilman STAFF TRAVIS HOPKINS, City Manager MIKE VIGLIOTTA, City Attorney LISA LANE BARNES, City Clerk JASON SCHMITT, City Treasurer VIEWING OPTIONS (Live or On-Demand): Members of the public may attend City Council meetings in person or view the proceedings remotely. Meetings are broadcast live on HBTV Channel 3 (replayed on Wednesday at 10:00 a.m. and Thursday at 6:00 p.m.). Live and archived meetings are available at : https://huntingtonbeach.legistar.com/calendar , https://bit.ly/SurfCityTV, or the City's YouTube Channel at https://www.youtube.com/cityofhb . Meetings may also be viewed on Roku, Fire TV or Apple device by downloading the Cablecast Screenweave App and searching for the City of Huntington Beach channel. PRESENTATION MATERIAL: If you plan to share printed materials during public speaking, please provide ten (10) paper copies. Materials may be delivered in person at the meeting or to the City Clerk ’s Office by 5:00 p.m. on the day of the meeting. Members of the audience and speakers shall not wear or display signs that obstruct the view of other audience members. Signs shall remain with the holder and shall not be placed in adjacent seats or in common areas. PUBLIC COMMENTS: Individuals wishing to speak during Public Comments on agendized or non-agendized items, including Closed Session and Public Hearings, may do so in person in the City Council Chambers or on Zoom IN PERSON SPEAKERS: To provide in-person comments during Public Comments on agendized and non-agendized items, please obtain a ticket number in the lobby beginning 30 minutes prior to the start of first scheduled meeting session. Only in-person speakers for Public Comments use the ticket system; they will be called in numerical order and asked to queue in the designated area. This ticket system is used solely to organize the meeting flow and determine the order in which speakers are recognized. CLOSED SESSION SPEAKERS: You do not need a ticket. At the designated time on the agenda, the Closed Session comment period will be announced, and speakers will be asked to queue in the designated area. PUBLIC HEARING SPEAKERS: You do not need a ticket. At the designated time on the agenda, the Public Hearing will be announced, and speakers will be asked to queue in the designated area. ZOOM SPEAKERS: To provide comments via Zoom for Closed Session, Public Comments, or Public Hearings, enter using Webinar ID 165 753 7311 or the provided link https://huntingtonbeachca.zoomgov.com/j/1657537311. You may also join by phone audio at (+1 415 449 4000) and entering the Webinar ID 165 753 7311. If you enter Zoom for the purpose of speaking during Closed Session, Public Comments or Public Hearing, you will be prompted by the City Clerk to raise your hand for each comment period. Speakers will be called by the identifier 1 they provided when entering Zoom and will receive a prompt to unmute. SUPPLEMENTAL COMMUNICATION: Members of the public interested in commenting on agenda-related items may submit a written (supplemental) communication to the City Council via email at SupplementalComm@SurfCity-hb.org. Supplemental Communications are considered public record. Communications received by 5:00 PM Monday prior to the City Council meeting will be distributed to the City Council, posted to the City website, and announced at the City Council meeting, though not read. Please note that Supplemental Communications can only be submitted to SupplementalComm@SurfCity-HB.org. Communications received Monday after the 5:00 PM deadline will only be included in the administrative record. MEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting, and /or large- print agendas. Please contact the City Clerk's Office at (714) 536-5227 or (714) 374-5390 for more information. 2 AGENDA July 21, 2026City Council/Public Financing Authority 4:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, Williams ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS - CLOSED SESSION ITEMS You do not need a ticket. At the designated time on the agenda, the Closed Session comment period will be announced, and speakers will be asked to queue in the designated area. To provide comments via Zoom for Closed Session, enter using Webinar ID 165 753 7311 or the provided link https://huntingtonbeachca.zoomgov.com/j/1657537311. You may also join by phone audio at (+1 415 449 4000) and entering the Webinar ID 165 753 7311. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with a Councilmember on an item not on the agenda may consider scheduling an appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org. RECESS TO CLOSED SESSION CLOSED SESSION 26-6111.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Huntington Beach Police Officers’ Association (HBPOA). 26-6122.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Police Management Association (PMA). 26-6133.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section Page 2 of 11 3 AGENDA July 21, 2026City Council/Public Financing Authority 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Huntington Beach Firefighters’ Association (HBFA). 26-6144.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Fire Management Association (FMA). 26-6275.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Management Employees’ Organization (MEO). 26-6196.CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Gov. Code section 54956.8.) Property: 17732 Goldenwest St, Huntington Beach, CA 92647 (APN 111-010-69). Agency Negotiators: Travis Hopkins, City Manager; Marissa Sur, Assistant City Manager; Ashley Wysocki, Director of Community and Library Services; Chris Cole, Community and Library Services Manager; William Krill, Real Estate Project Manager. Negotiating parties: Michael and Christina Bartusick dba Park Bench Cafe and Rory Bevins (Not Present). Under negotiation: Price and terms of payment. 26-6207.CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Gov. Code section 54956.8.) Property: 21091 Pacific Coast Highway, Huntington Beach, CA 92648 (APN 024-281-16). Agency Negotiators: Travis Hopkins, City Manager; Marissa Sur, Assistant City Manager; Ashley Wysocki, Director of Community and Library Services; Chris Cole, Community and Library Services Manager; William Krill, Real Estate Project Manager. Negotiating parties: Pouya Honari - Pacific City Hotel, LLC dba Pasea Page 3 of 11 4 AGENDA July 21, 2026City Council/Public Financing Authority Hotel and Spa (Not Present). Under negotiation: Price and terms of payment. 26-6158.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). People of the State of California/Bonta v. City of Huntington Beach, et al.; Case No. 30-2023-01312235-CU-WM-CJC. 26-6169.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Southwest Voter Registration Education Project, et al. v. City of Huntington Beach; OCSC Case No. 30-2024-01397379-CU-CR-NJC. 26-61710.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Smith (Christopher Scott) v. City of Huntington Beach; 30-2024-01376230-CU-WT-WJC. 26-61811.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Bauer-Oldfield (Ashley) v. City of Huntington Beach; 8:24-cv-02700-CAS-JDE. 26-62312.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Carroll (Kasey) v. City of Huntington Beach; OCSC Case No.: 30-2025-01502970-CU-PA-NJC. 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, Williams INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 26-62413.Chaplain Jericho Rhoten Page 4 of 11 5 AGENDA July 21, 2026City Council/Public Financing Authority PLEDGE OF ALLEGIANCE 26-62514.Mike Ali, American Legion Post 133 CLOSED SESSION REPORT BY CITY ATTORNEY CITY COUNCIL MEMBER COMMENTS (2-Minute Time Limit) The Mayor will facilitate a voluntary opportunity for members of the Huntington Beach City Council to individually make brief comments to the public. Please note that the Brown Act does not allow for lengthy comments, discussion, or action on topics that are not on the agenda. ADOPTABLE PET OF THE MONTH BUSINESS HIGHLIGHT 26-60815.Business Highlight Presentation COMMUNITY EVENTS ANNOUNCEMENTS (2-Minute Time Limit) Limited to one representative, one announcement This brief agenda segment is reserved for time-sensitive, organized events taking place within the City that are open to the public or support recognized community goals (e.g., nonprofit fundraisers, library programs, equestrian center events, City -sponsored activities). It is not a public-comment period and is not intended for individual solicitations, private parties, commercial promotions, or political campaigning. You do not need a ticket. At the designated time on the agenda, Community Events Announcements will be announced, and speakers will be asked to queue in the designated area. Community Events Announcements are only available in-person. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS To provide in-person comments during Public Comments on agendized and non agendized-items, please obtain a ticket number in the lobby beginning 30 minutes prior to the start of first scheduled meeting session. Only in-person speakers for Public Comments use the ticket system; they will be called in numerical order and asked to queue in the designated area. This ticket system is used solely to organize the meeting flow and determine the order in which speakers are recognized. To provide comments via Zoom for Public Comments, enter using Webinar ID 165 753 7311 or the provided link https://huntingtonbeachca.zoomgov.com/j/1657537311. You may also join by phone audio at (+1 415 449 4000) and entering the Webinar ID 165 753 7311. Page 5 of 11 6 AGENDA July 21, 2026City Council/Public Financing Authority Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with a Councilmember on an item not on the agenda may consider scheduling an appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org. While the City Council welcomes public involvement and supports and defends free speech, the City Council rejects comments from anyone that are discriminatory, defamatory or otherwise not protected free speech. Those comments will not inform nor be considered by the City Council and may be cause for the Mayor to interrupt the public speaker. Such public comments will not be consented to or otherwise adopted by the City Council in its discussions and findings for any matter tonight. COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS Councilmembers may make brief announcements on any appointments made to a board, committee, or commission. Councilmembers may not discuss or take any action on these announcements. Announcements are limited to 1 minute. AB 1234 REPORTING Per AB 1234 (Government Code Section 53232.3(d)) Councilmembers who attend a meeting, conference, or similar event at the expense of the City must provide a brief report of the meeting, conference, or similar event during the next regular City Council meeting. Reports are limited to 1 minute. OPENNESS IN NEGOTIATION DISCLOSURES Councilmembers must publicly disclose any meetings or communications with City employee associations, related to the negotiations of labor agreements. Disclosures are limited to 1 minute and must be made by the next regular City Council Meeting. CITY MANAGER'S REPORT 26-63516.Capital Improvement Project (CIP) Updates CITY ATTORNEY'S REPORT 26-63317.City Attorney’s Update on the Community Prosecutor Program CONSENT CALENDAR (Items 18 - 29) City Clerk 26-63418.Approve and Adopt Minutes Approve and adopt the City Council/Public Financing Authority special meeting minutes of July 1, 2026, and regular meeting minutes of July 7, 2026. Recommended Action: Page 6 of 11 7 AGENDA July 21, 2026City Council/Public Financing Authority City Manager 26-61019.Approve the appointment of Debbie Iorio to the City Celebration Committee as recommended by City Council Liaisons Mayor Casey McKeon and Mayor Pro Tem Butch Twining Approve the appointment Debbie Iorio to the City Celebration Committee. Committee members will serve until a respective successor is appointed and qualified. The Council Liaison has the power to recommend replacement members for any vacancies. Recommended Action: Community Development 26-60020.Adopt Resolution No. 2026-32 Confirming Cost Report for Weed Abatement on Private Parcels Within the City for the 2026 Season A) Adopt Resolution No. 2026-32 “A Resolution of the City Council of the City of Huntington Beach Confirming the Report of the Public Works Director Regarding the Cost for Weed Abatement on Private Property Within the City for the 2026 Season,” and B) Direct that all charges listed thereon be certified to the Orange County 2026/27 Property Tax Roll. Recommended Action: 26-60721.Approve Response Letter to the 2025-2026 Orange County Grand Jury Report Related to State Housing Mandates and Forward to the Presiding Judge A) Approve the City’s response letter to the Orange County Grand Jury Report entitled “California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods”; and B) Authorize the City Manager to submit the response letter to the Presiding Judge of the Superior Court. Recommended Action: Community and Library Services 26-37722.Approve and authorize execution of a Memorandum of Understanding (MOU) and License to Utilize Certain Space between the City of Huntington Beach and Hoag Memorial Hospital Presbyterian Approve and authorize the Mayor and City Clerk to execute the “Memorandum of Recommended Action: Page 7 of 11 8 AGENDA July 21, 2026City Council/Public Financing Authority Understanding and License to Use Certain Space Between the City of Huntington Beach and Hoag Memorial Hospital Presbyterian .” 26-62123.Approve the Design Concept and Placement of a Memorial Plaque Honoring Kolby Aipa on Tower Zero of the Huntington Beach Municipal Pier Approve the design concept and placement of a memorial plaque honoring Kolby Aipa on Tower Zero of the Huntington Beach Municipal Pier. Recommended Action: Fire 26-58324.Approve response letter to the 2025-2026 Orange County Grand Jury Report “Wildfires Hit Home” and forward to the Presiding Judge A) Approve the City’s response letter with findings and recommendations to the Orange County Grand Jury Report entitled “Wildfires Hit Home”; and B) Authorize the Mayor to submit the response letter to the Presiding Judge of the Orange County Superior Court. Recommended Action: Police 26-59625.Annual Military Equipment Use Report (AB 481) A) Approve report and renew Ordinance No. 4255, authorizing the continued use of the listed military equipment by the Police Department; and B) Find that each type of military equipment identified in that report attached hereto as Attachment 1 complies with the following standards for approval: 1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. 2. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. 3. Any future purchased equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. 4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. Recommended Action: Page 8 of 11 9 AGENDA July 21, 2026City Council/Public Financing Authority Public Works 26-57126.Approve and Authorize the Execution of a Professional Services Contract with Partners In Control, Inc. DBA Enterprise Automation in the Amount of $2,500,000 for On-Call Engineering Services for the Public Works Utilities Division Supervisory Control and Data Acquisitions (SCADA) Systems for a Three-Year Term Approve and authorize the Mayor and City Clerk to execute a $2,500,000 Professional Services Contract between the City of Huntington Beach and Enterprise Automation for On-Call Engineering Services for Water and Wastewater SCADA Systems for a three-year term. Recommended Action: 26-58527.Accept Lowest Responsive and Responsible Bid and Award Construction Contract to Living Water Industries, LLC., in the amount of $34,750.00 for the Abandonment of Old Pirate Drive Private Water Well Project, CC-1624 A) Accept the lowest responsive and responsible bid submitted by Living Water Industries LLC in the amount of $34,750.00; and, B) Authorize the Director of Public Works to approve construction change orders within the approved contingency amount of twenty percent (20%) of the contract amount; and, C) Authorize the Mayor and City Clerk to execute the construction contract in a form approved by the City Attorney. Recommended Action: 26-59828.Accept Lowest Responsive and Responsible Bid and Award Construction Contract to R.E. Schultz Construction, Inc. in the amount of $397,299.00 for the Drew Park and Robinwood Park Playground Improvements, CC1859 and CC1823 A) Accept the lowest responsive and responsible bid submitted by R.E. Schultz Construction, Inc. in the amount of $397,298.35; and , B) Authorize the Director of Public Works to approve change orders up to ten percent (10%) of the contract amount in potential construction change orders; and, C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Recommended Action: Page 9 of 11 10 AGENDA July 21, 2026City Council/Public Financing Authority 26-59929.Accept Lowest Responsive and Responsible Bid and Award a Construction Contract to Universal Coatings, Inc. in the amount of $97,000 for the Oak View Branch Library Roof Restoration, CC1912 A) Accept the lowest responsive and responsible bid submitted by Universal Coatings, Inc. in the amount of $97,000; and , B) Authorize the Director of Public Works to approve construction change orders within the approved contingency amount of ten percent (10%) of the contract amount; and, C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Recommended Action: ADMINISTRATIVE ITEMS 26-63630.Approve the Appointment of Zack Zithisakthanakul to the Position of Chief Financial Officer and Authorize the City Manager to Execute the Employment Agreement Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Zack Zithisakthanakul” for the position of Chief Financial Officer. Recommended Action: COUNCIL MEMBER ITEMS 26-63831.Item submitted by Councilman Don Kennedy, Mayor Casey McKeon, and Councilman Pat Burns - America 250 Plaque at Pier Plaza Set aside Resolution No. 2017-25 and direct staff to create the engraving template for review by Councilmembers Kennedy, Burns and McKeon, with final draft brought forward for vote on the August 18th City Council Meeting for the monument in Pier Plaza to commemorate the Huntington Beach America 250 Celebrations. Recommended Action: ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, August 4, 2026, in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov Page 10 of 11 11 AGENDA July 21, 2026City Council/Public Financing Authority Page 11 of 11 12 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-611 MEETING DATE:7/21/2026 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Huntington Beach Police Officers’ Association (HBPOA). City of Huntington Beach Printed on 7/15/2026Page 1 of 1 13 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-612 MEETING DATE:7/21/2026 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Police Management Association (PMA). City of Huntington Beach Printed on 7/15/2026Page 1 of 1 14 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-613 MEETING DATE:7/21/2026 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Huntington Beach Firefighters’ Association (HBFA). City of Huntington Beach Printed on 7/15/2026Page 1 of 1 15 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-614 MEETING DATE:7/21/2026 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Fire Management Association (FMA). City of Huntington Beach Printed on 7/15/2026Page 1 of 1 16 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-627 MEETING DATE:7/21/2026 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Management Employees’ Organization (MEO). City of Huntington Beach Printed on 7/15/2026Page 1 of 1 17 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-619 MEETING DATE:7/21/2026 CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Gov. Code section 54956.8.) Property: 17732 Goldenwest St, Huntington Beach, CA 92647 (APN 111-010-69). Agency Negotiators: Travis Hopkins, City Manager; Marissa Sur, Assistant City Manager; Ashley Wysocki, Director of Community and Library Services; Chris Cole, Community and Library Services Manager; William Krill, Real Estate Project Manager. Negotiating parties: Michael and Christina Bartusick dba Park Bench Cafe and Rory Bevins (Not Present). Under negotiation: Price and terms of payment. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 18 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-620 MEETING DATE:7/21/2026 CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Gov. Code section 54956.8.) Property: 21091 Pacific Coast Highway, Huntington Beach, CA 92648 (APN 024-281-16). Agency Negotiators: Travis Hopkins, City Manager; Marissa Sur, Assistant City Manager; Ashley Wysocki, Director of Community and Library Services; Chris Cole, Community and Library Services Manager; William Krill, Real Estate Project Manager. Negotiating parties: Pouya Honari - Pacific City Hotel, LLC dba Pasea Hotel and Spa (Not Present). Under negotiation: Price and terms of payment. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 19 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-615 MEETING DATE:7/21/2026 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). People of the State of California/Bonta v. City of Huntington Beach, et al.; Case No. 30-2023-01312235-CU-WM-CJC. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 20 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-616 MEETING DATE:7/21/2026 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Southwest Voter Registration Education Project, et al. v. City of Huntington Beach; OCSC Case No. 30-2024-01397379-CU-CR-NJC. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 21 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-617 MEETING DATE:7/21/2026 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Smith (Christopher Scott) v. City of Huntington Beach; 30-2024- 01376230-CU-WT-WJC. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 22 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-618 MEETING DATE:7/21/2026 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Bauer-Oldfield (Ashley) v. City of Huntington Beach; 8:24-cv-02700- CAS-JDE. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 23 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-623 MEETING DATE:7/21/2026 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Carroll (Kasey) v. City of Huntington Beach; OCSC Case No.: 30-2025- 01502970-CU-PA-NJC. City of Huntington Beach Printed on 7/15/2026Page 1 of 1 24 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-624 MEETING DATE:7/21/2026 Chaplain Jericho Rhoten City of Huntington Beach Printed on 7/15/2026Page 1 of 1 25 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-625 MEETING DATE:7/21/2026 Mike Ali, American Legion Post 133 City of Huntington Beach Printed on 7/15/2026Page 1 of 1 26 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-608 MEETING DATE:7/21/2026 Subject: Business Highlight Presentation City of Huntington Beach Printed on 7/15/2026Page 1 of 1 27 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-635 MEETING DATE:7/21/2026 Subject: Capital Improvement Project (CIP) Updates Attachment(s): 1. CC1839 and CC1708 CIP Project Summary Report 2. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 1 of 1 28 CIP PROJECT SUMMARY REPORT Presented to: City Council Reporting Department: Public Works Date: June 16, 2026 Project Name: Zone 3 Overlay CIP Number: CC-1839 Project Manager: Max Olin Total Budget: $3,785,800.00 Final Cost: $3,274,927.25 Funding Source(s): Measure M Fund, Gas Tax Fund, Water Fund, and Sewer Fund. I. Executive Summary Staff awarded a contract to Hardy & Harper, Inc. in the amount of $3,605,800 to pave over approximately seventy-five of the worst residential street segments in residential maintenance zone 3. The paving project successfully paved about 75 local streets in the City bounded by Bolsa Avenue to the north, Goldenwest Street to the east, Heil Avenue to the south, and Graham Street to the west. II. Financial Summary Original Contract Amount $ 3,278,000.00 Approved Change Orders (Total) $ 0 Final Contract Amount $ 3,027,494.43 Contingency Budget $ 327,800.00 Contingency Used Remaining Contract Balance Construction Inspection & Project Support Costs $ 0 $ 578,305.57 $ 247,433.52 29 III. Project Details Project Description This project rehabilitated the pavement for about 75 of the worst residential street segments in Maintenance Zone 3, which is the third residential zone of the 12 maintenance zones in the City. Maintenance Zone 3 is bounded by Bolsa Avenue to the north, Goldenwest Street to the east, Heil Avenue to the south, and Graham Street to the west. Work included limited localized pavement repairs, crack sealing, cold milling, striping, and an asphalt overlay. Purpose & Benefits: The overlay project extends the life of the several streets and provided a new asphalt surface for the next 12+ years until the street is reevaluated for repairs. The City’s local street system is divided into 12 zones and selected streets are scheduled are provided an overlay or a slurry treatment based on the existing pavement condition. Start Date: 3/23/26 Substantial Completion: 5/20/26 Final Completion / Close-Out Status: Close out June 2026 IV. Contractor Performance Evaluation Primary Contractor: Hardy & Harper, Inc. Contract Award Amount: $3,278,000 Performance Overview: Contractor’s performance was acceptable. Hardy & Harper, Inc. has successfully delivered this project. City staff was very pleased with their performance. Schedule Compliance: Project delivered ahead of schedule. Quality of Work: Quality of work product was delivered as specified in the contract documents and to the satisfaction of the City staff. 30 Safety Record: No safety incidents reported. Responsiveness & Communication: Contractor was very responsive throughout the project. Subcontractors Involved: All American Asphalt, Interstate Striping, Inc., Pavement Recycling Systems, and MD Rubberized Crackfill. Change Orders Summary: No Change Orders V. Long-Term Maintenance and Impacts Maintenance Responsibility: PW-Operations Service Life: 12 years Significant Lasting Impacts: Improve existing infrastructure. VI. Lessons Learned Increased funding to the zone maintenance program could produce an even higher direct positive impact and benefit to residents. II. Conclusion The Project was a critical investment in the City’s local street infrastructure and has successfully achieved its intended objectives to extend the life of the paved street. It was delivered with minimal disruption to the adjacent school, trash, and delivery schedules, within acceptable budget margins, and excellent contractor collaboration. This project will provide lasting benefits to the community and serve as a model for future CIP paving efforts. 31 VIII. Exhibits 32 Prepared/Reviewed By: Max Olin Capital Projects Administrator Public Works Max.olin@surfcity-hb.org 714-536-5518 33 CIP PROJECT SUMMARY REPORT Presented to: City Council Reporting Department: Public Works - Engineering Date: 5/18/26 Project Name: Police Department Women’s Locker Room Improvements CIP Number: CC1708 Project Manager: Joseph Pinel Total Budget: $1,968,000 Final Cost: $1,552,519.08 Funding Source(s): Infrastructure Funds (31440010) I. Executive Summary “Accept the lowest responsive and responsible bid and authorize execution of a construction contract with Full Swing Construction Inc. in the amount of $1,099,477 for the Police Department Women’s Locker Room Improvement Project, CC-1708; Reject bids 1-7; and Authorize 20% in contingency funds” Project construction administration and management performed by City of Huntington Beach Capital Projects Administrator, Joseph Pinel. In conjunction with Full Swing Construction’s Project Managers, the project was successfully completed ahead of schedule and within budget. Additional Key Personnel: 1. HBPD Captain Ryan Riley a. HBPD construction liaison. Direct contact for all construction related activities and stakeholder decisions. 2. RMA Group a. On-call building inspector. Responsible for all inspections conducted during construction. 3. HBPW Facilities (All staff) a. All staff provided daily assistance with construction administration, identifying existing infrastructure, provided input on design considerations, and helped resolve all issues experienced with existing infrastructure. 34 4. Streets (All staff) a. Assisted with hauling miscellaneous items throughout project duration. 5. IT a. Provided input regarding access control requirements. Notice of Completion: May 18, 2026 II. Financial Summary Original Contract Amount $ 1,099,477 Approved Change Orders (Total) $ 205,492.14 Final Contract Amount $ 1,304,969.14 Contingency Budget $ 219, 895 Contingency Used Remaining Contract Balance Project Support Costs: $ 205,492.14 $ 14,402.86 Construction Inspection and Project Support Costs $ 247,549.94 III. Project Details Project Description Scope: “This project will enhance and expand the women’s locker room at the Police Department to better support current and future needs. Improvements include the removal and replacement of outdated restrooms, showers, and lockers. Upgrades to HVAC, plumbing, and electrical systems will also be completed. In addition, the locker room will be expanded to improve ADA accessibility and accommodate increased staffing levels. 35 Purpose & Benefits: Description of benefits and impacts: Updating 1974 civic center infrastructure to modern day standards, support increased levels of HBPD female staffing, meet ADA compliance standards, and address deferred maintenance. Start Date: October 1, 2025 Substantial Completion: May 1, 2026 Final Completion / Close-Out Status: NOC filed (5/18/26), finalizing closeout documents, and preparing for retention release. IV. Contractor Performance Evaluation Primary Contractor: Full Swing Construction Inc. Contract Award Amount: $ 1,099,477 Performance Overview: Full Swing Construction consistently demonstrated exceptional professionalism, organization, and commitment throughout the duration of the project. Their team maintained clear communication with City staff, adhered to project timelines, and responded promptly and effectively to any challenges that arose during construction. The quality of workmanship delivered by Full Swing Construction exceeded expectations and reflected a strong attention to detail, safety, and long-term durability. Their ability to coordinate efficiently with subcontractors, inspectors, and stakeholders ensured that the project progressed smoothly while minimizing disruptions to the community. Schedule Compliance: 36 Project was completed ahead of schedule. Despite change orders, no additional working days were required to complete construction. Contractor provided consistent updated schedules and exceeded expectations. Quality of Work: Contractor provided superior quality of work. Any issues experienced with subcontractors were immediately rectified. Highly recommend contractor for future work. Safety Record: No safety issues presented. Contractor maintained safety of personal and city staff. Responsiveness & Communication: Contractor responsive through all forms of communication. Provided concierge services to Stakeholders and maintained professionalism throughout project duration. Subcontractors Involved: 1. JNR 2 Construction 2. Red Door Hardware LLC 3. Magnesite Specialties, Inc 4. JJJ Floor Covering Inc 5. Paint Blast UC Inc 6. ATM Specialty Services 7. Penner Partitions 8. Pacific Plumbing 9. Hiller 10. Halo Electric Company 11. Sample Tile and Stone Inc. Change Orders Summary: 37 Number of Change Orders: 1. CCO #1 – Additional Walls 2. CCO #2 – Additional Drain 3. CCO #3 – Additional Framing 4. CCO #4 – Replace VAV’s 5. CCO #5 – Locker Power 6. CCO #6 – Men’s Restroom 7. CCO #7 – Epoxy Curb 8. CCO #8 – Maternity Room 9. CCO #9 – Additional Offices 10. CCO #10 – Finishes Reason(s): 1. Additional walls were removed and replaced due to size difference between original lath and plaster stud versus new framing members 2. Conflict between as-builts and field conditions. Drain line added. 3. Additional framing required that was not depicted in project plans. 4. Mechanical devices beyond service life. Replaced while ceiling was open. 5. Lockers are supplied with power. Change order to provide receptacles and terminate wiring within lockers. Not in plans or specifications. 6. Plans/demolition impacted men’s restroom. CCO to update ADA compliance and restroom finishes. 7. Add epoxy to unfinished concrete curb. Design not accounted for in plans 8. Maternity room mandated by HBPD management. Current facility not California compliant. CCO to convert office to lactation suite. 9. Expanded scope to included additional offices refinishing. 10. Additional finishes (door handles, painting, mirror relocation) added to complete project. V. Long-Term Maintenance and Impacts Maintenance Responsibility: HBPW Facilities Department Anticipated Annual Maintenance Costs: $3000-$5000 Service Life: 25+ years Significant Lasting Impacts: Updated plumbing, mechanical, and electrical systems. ADA compliance, updated facilities, utility service reliability and reduced emergency repairs/maintenance calls. Supports increased female staffing. 38 VI. Lessons Learned The renovation of the women’s locker room highlighted several challenges commonly associated with renovations in aging municipal facilities, particularly when relying on historical as-built documentation and addressing long-standing deferred maintenance conditions. Key lessons learned include:  Existing as-built drawings did not fully reflect actual field conditions due to undocumented modifications, aging infrastructure, and prior repairs completed over the life of the facility. This resulted in unforeseen conflicts during construction and required additional field verification, redesign coordination, and corrective work.  Future renovation efforts should include a more comprehensive investigative phase prior to design completion, including destructive verification where appropriate, utility tracing, and detailed assessment of concealed systems. Early validation of existing conditions can reduce change orders, schedule impacts, and construction uncertainty.  Deferred maintenance significantly compounded project complexity. Aging plumbing, ventilation, and facility conditions were found to be in poorer condition than initially anticipated, requiring reactive repairs beyond the original project scope.  The project reinforced the importance of proactively addressing deferred maintenance in occupied facilities before failures occur. Accumulated maintenance deficiencies increase lifecycle costs, elevate operational risks, and reduce the reliability of renovation budgeting assumptions. Overall, the project demonstrated that renovations within older public safety facilities require additional contingency planning, robust existing-condition investigations, and realistic budgeting to account for hidden conditions and deferred maintenance impacts. VII. Conclusion Despite unforeseen existing conditions, undocumented utility conflicts, and the impacts of deferred maintenance discovered during construction, the women’s locker room renovation project was successfully completed and achieved its primary objectives. The project delivered a modernized, functional, and code-compliant facility that improves daily operations, user comfort, safety, and long-term maintainability for department personnel. Throughout the project, the team effectively addressed challenges associated with aging infrastructure and discrepancies between historical as-built documents and actual field conditions. Through continued coordination among facility staff, designers, 39 contractors, and project management personnel, solutions were implemented that minimized operational disruption while maintaining overall project progress. The completed renovation provides upgraded plumbing, ventilation, finishes, accessibility features, and locker room amenities that better support the needs of department staff and extend the useful life of the facility. The project also provided valuable insight into the condition of the existing building systems and reinforced the importance of early investigative efforts and proactive maintenance planning for future capital improvement projects. Overall, the project is considered successful in delivering a significantly improved facility while adapting to unforeseen conditions in a collaborative and effective manner. 40 VIII. Exhibits 41 Prepared/Reviewed By: Name: Joseph Pinel Title: Capital Projects Administrator Department: Engineering Email: Joseph.pinel@surfcity-hb.org Phone number: 714-536-5291 42 CIP Project Summary Report Zone 3 Overlay July 21, 2026 43 Project Summary •Rehabilitated over 70 of the residential street segments in poorest condition in Zone 3 •Zone 3 boundaries: Bolsa Ave (N), Goldenwest Street (E), Heil Ave (S), Graham Street (W) •Work included: •Spot pavement repairs •Crack sealing •Cold milling •Asphalt overlay •New striping 44 Project Benefits and Schedule •Project Benefits: •Streets now have 12 or more years of useful life •Part of the City’s 12-zone pavement plan •Treatments based on pavement condition •Schedule: Start Date:3/23/26 Substantial Completion: 5/20/26 Final Completion: 7/7/26 45 Financial Project Summary Council Approved Construction Contract $3,278,000.00 Council Approved Construction Contingency $327,800.00 Total Construction Contract Expenditures $3,027,494.43 Construction Inspection and Project Supports Costs Total Construction Costs $247,433.52 $3,274,927.95 46 Conclusion/Photos •Improved street quality with minimal disruption •Coordinated with: •Schools •Trash collection and Street Sweeping •Deliveries •Sets a strong model for future paving projects •Project Support Costs include tree removal 47 CIP Project Summary Report HBPD Women’s Locker RoomRenovation July 21, 2026 48 Project Summary •Renovated existing police department women’s locker room, records room, offices, and adjoining men’s restroom at the Civic Center campus •Expanded existing women’s locker room by 1200 square feet to accommodate increased sworn and civilian female staffing •Work included: •Updated restroom facilities •Increased locker capacity •Complete overhaul of electrical, mechanical, and plumbing •ADA accessibility compliance •Updated office space and maternity room •Updated records technology and space savings 49 Video Walkthrough 50 Project Benefits and Schedule •Project Benefits: •Updated 1974 infrastructure that has exceeded its service life •Supports increased female police staffing •Provides ADA compliance and hygienic space •Schedule: Start Date:10/1/25 Substantial Completion: 5/1/26 Final Completion: 5/18/26 51 Financial Project Summary Council Approved Construction Contract Council Approved Construction Contingency $1,099,477 $219,895.40 Total Construction Contract Amount Expended $1,304,969.14 Construction Inspection and Project Support Costs $247,549.94 Total Construction Cost $1,552,519.08 52 Conclusion/Photos •HBPD staff maintained full service during construction •Coordinated with: •HBPD •Public Works •General Contractor, Architect, and Subconsultants •Created lasting space for current and future needs 53 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-633 MEETING DATE:7/21/2026 Subject: City Attorney’s Update on the Community Prosecutor Program Attachment(s): 1. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 1 of 1 54 Community Prosecutor Program Update City Attorney’s Office Michael J. Vigliotta, City Attorney Steven F. Pomeroy, Community Prosecutor 55 History of the Community Prosecutor Program •In 2016, the City Attorney sought better support for the work of the Huntington Beach Police after the State’s implementation of Props 47, 57 and AB 109, which reduced punishments and accountability for many crimes. •Huntington Beach City Charter, Article III, § 309(b) empowers the City Attorney to “prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such State misdemeanors as the City has the power to prosecute[.]” 56 History of the Community Prosecutor Program •The City Attorney recognized a need to address crime concerns within the community that impacted residents’ quality of life and local business owners, especially in the downtown area. •In July 2016, the Orange County District Attorney endorsed the City Attorney’s authority to prosecute state misdemeanors under the California Penal Code. •The City Council supported and provided funding for the Community Prosecutor Program. 57 History of the Community Prosecutor Program •The City Attorney implemented the Community Prosecutor Program to support the law enforcement efforts of the Huntington Beach Police Department and to prosecute crimes that impact residents, and their quality of life, particularly in the City’s downtown area. •The Community Prosecutor prosecutes Huntington Beach Municipal Code violations, and certain California Penal Code violations. 58 Mission Statement The mission of the Community Prosecutor Program is to enhance the quality of life for all people within the City of Huntington Beach by vigorously and conscientiously prosecuting local crime to promote public peace and safety and protect business and property owners. 59 Program Goals •Work cooperatively with the OCDA to prosecute crimes impacting residents’ quality of life •Work cooperatively with the OCDA to prosecute crimes impacting the City’s downtown business owners •Provide prosecutorial support to the Huntington Beach Police Department •Seek convictions, probation, stay away orders, restitution, etc. •Seek alternative corrective measures through diversionary programs 60 Success of the Community Prosecutor Program “The City Attorney’s Office Prosecutor Program, empowers our officers to address quality-of-life issues that directly impact our community. With dedicated local prosecutors assigned to each case, carefully examining the merits of each unique situation, they can determine the best course of action to reduce repeat offenses while holding individuals accountable for their actions. The support of this program is crucial in maintaining the high quality of life we expect in our community.” -Huntington Beach Police Chief Eric Parra 61 Success of the Community Prosecutor Program “Working closely with our City Prosecutor has truly strengthened how we support clients by aligning legal processes with housing and supportive services. Through consistent communication and coordination with our social worker team, Steven takes the time to understand each client’s progress and helps ensure court involvement does not become a barrier to stability. This partnership has been especially meaningful for clients experiencing mental health and substance use challenges, where timely and thoughtful legal support can often be the turning point that encourages engagement in shelter and services. This collaboration helps remove barriers, builds trust, and leads to more stable, long-term housing outcomes for the individuals we serve.” -Jessica Kelley, Manager, Homeless & Behavioral Health 62 The Community Prosecutor •Steven Pomeroy •Started September 2021 •B.A., University of California at Berkeley •J.D., Loyola Law School, Los Angeles •Former Deputy District Attorney, Humboldt County •Resident of Huntington Beach 63 Common State Crimes California Penal Code •Petty Theft – PC 484(a)-488 •Resisting/Obstructing Officers – PC 148(a)(1) •False Identification to Officers – PC 148.9(a) •Trespassing – PC 602 •Illegal Lodging – PC 647(e) •Public Intoxication – PC 647(f) •Prowling– PC 647(h) •Vandalism – PC 594 64 Petty Theft Penal Code § 484(a)-488 •Thefts under $950 at local stores including Jack’s Surfboards, HSS, Costco, Target, CVS, Nordstrom Rack, Dick’s Sporting Goods, REI, etc. 65 Petty Theft Penal Code §484(a)-488 Example: •June 30, 2025: Defendant stole $180.95 worth of merchandise from a local Target. •October 10, 2025: Defendant pled guilty. •Sentenced to 1-year informal probation, 60-days jail, jail sentence stayed until such time as probation is successfully completed. •Defendant subject to search and seizure. •Defendant ordered to stay away from store. •Merchandise recovered. 66 Petty Theft Penal Code §484(a)-488 Example: •July 22, 2025: Defendant stole items worth $112.94 from Costco. •September 23, 2025: Defendant pled guilty. •Sentenced to 1-year informal probation, 60-days jail, jail sentence stayed until such time as probation is successfully completed. •Defendant subject to search and seizure. •Defendant ordered to stay away from store. •Merchandise recovered. 67 Resisting/Obstructing Police Officers Penal Code § 148(a)(1) •Willfully resisting, obstructing, or delaying a police officer lawfully performing his or her duties. 68 Resisting/Obstructing Police Officers Penal Code §148(a)(1) Example: •May 24, 2025: An officer attempted to make an enforcement stop on a bicyclist. Defendant refused to comply with the officer’s commands and fled. The officer gave chase and captured him. Officers found the defendant was wanted on a probation violation warrant. •August 1, 2025: Defendant pled guilty. •Sentenced to 180-days Orange County jail •Fines and fees. 69 Resisting/Obstructing Police Officers Penal Code §148(a)(1) Example: •November 10, 2025: Officers found a passed-out subject. Upon waking him, an officer conducted a wants and warrants check. The Defendant had five active warrants for his arrest. At the jail, the defendant physically resisted being taken into the jail. Several officers were required to gain Defendant’s compliance. •January 6, 2026: Defendant pled guilty. •Sentenced to 36-days Orange County jail. •Fines and fees. 70 Trespassing Penal Code §602(o)(1) •Entering and remaining on property after being asked to leave. Example: •January 20, 2026: Defendant returned repeatedly to the Newland Center after he was asked to leave. •February 23, 2026: Defendant pled guilty. •Sentenced to 1-year of probation. •Sentenced to 36-days Orange County jail. •Ordered to stay 100-yards away from the shopping mall. 71 Illegal Lodging Penal Code §647(e) •Lodging in any public or private place without permission. Example: •November 24, 2025: During a routine patrol check downtown, officers observed a subject sleeping in front of a liquor store, directly under a sign warning against trespassing and unlawfully lodging. •January 6, 2026: Defendant pled guilty. •Sentenced to 30-days Orange County jail. •Fines and fees. 72 Common Local Crimes Huntington Beach Municipal Code •HBMC 13.10.030 – Unlawful Camping •HBMC 9.44.010 – Drinking in Public Places •HBMC 13.52.040 – Loitering in City-Owned Parking Structure •HBMC 9.20.020 – Urinating/Defecating in Public •HBMC 13.08.240, 13.48.130 – Beach, Pier, and Park Curfew •HBMC 13.08.115, 13.48.115 – Smoking at Beach, Pier, or Park 73 Unlawful Camping Huntington Beach Municipal Code §13.10.030(A) •Camping on any public or private property Example: •December 3, 2025: Defendant was reported sleeping under a blanket on top of a makeshift mattress at the rear of a business on Beach Blvd. Defendant was offered and refused housing resources. •April 23, 2026: Defendant pled guilty. •Sentenced to 30-days Orange County jail. •Fines and fees. 74 Diversion for Homeless Individuals Homeless defendants may have their cases dismissed if they engage with services, including: •Attending Huntington Beach social worker office hours •Entering into the Huntington Beach Navigation Center or another shelter •Engaging in Drug, Alcohol, and Mental Health Treatment •Enrolling in Homeless Outreach Court •Orange County Collaborative Court where comprehensive services are made available Potential criminal penalties incentivize service -resistant individuals to accept assistance. 75 Proposition 36 •California’s Proposition 36 went into effect December 18, 2024. It increased penalties for certain drug and theft crimes, allowing for felony charges for repeat offenders and implementing treatment-mandated programs. •It’s still early to measure the Proposition’s effectiveness, but it’s likely to deter some repeat theft offenders, and push more people into drug treatment. 76 A Prosecutor’s Duty to Victims •Under Marsy’s Law, prosecutors have a constitutional responsibility to ensure victims are treated with fairness, dignity, and respect through criminal proceedings. •Responsibilities include: •Advocating for victim restitution •Victim’s rights to safety, privacy, and participation •Connecting victims with support services and resources •Ensuring participation in sentencing and release decisions 77 Case Statistics July 1, 2025 – June 30, 2026 Total Criminal Cases Filed: 1,132 ➢ 294 Convictions ➢240 (82% sentenced with a jail term) ➢ 147 Diversion Resolutions ➢ Diversion terms may include attendance of AA/NA meetings, rehab programs, community service work, and/or courses addressing theft, anger, etc. ➢ 268 Dismissals (mental health, prior sentencing, etc.) ➢ 423 Pending Cases (open or with a warrant out) 78 Community Prosecutor Program Update City Attorney’s Office Michael J. Vigliotta, City Attorney Steven F. Pomeroy, Community Prosecutor 79 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-634 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Lisa Lane Barnes, City Clerk PREPARED BY:Lisa Lane Barnes, City Clerk Subject: Approve and Adopt Minutes Statement of Issue: The City Council/Public Financing Authority special meeting minutes of July 1, 2026 , and regular meeting minutes of July 7, 2026, require review and approval. Financial Impact: None Recommended Action: Approve and adopt the City Council/Public Financing Authority special meeting minutes of July 1, 2026, and regular meeting minutes of July 7, 2026. Alternative Action(s): Do not approve and/or request revision(s). Analysis: None Environmental Status: Non-Applicable Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. July 1, 2026, CC/PFA special meeting minutes 2. July 7, 2026, CC/PFA regular meeting minutes City of Huntington Beach Printed on 7/15/2026Page 1 of 1 80 Special Meeting Minutes City Council/Public Financing Authority City of Huntington Beach Wednesday, July 1, 2026 4:30 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:30 PM portion of this meeting is on file in the Office of the City Clerk, and archived at https://huntingtonbeach.legistar.com/Calendar.aspx 4:30 PM — COUNCIL CHAMBERS CALL TO ORDER SPECIAL MEETING — 4:30 PM ROLL CALL Present: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams Absent: None PLEDGE OF ALLEGIANCE — Led by _______________ ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) — None Mayor McKeon read the new public comment process that became effective on July 1, 2026, per California SB707. PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS — None A motion was made by Burns, with a second by Van Der Mark, to recess to Closed Session. RECESSED TO CLOSED SESSION — 4:32 PM CLOSED SESSION 1. 26-575 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). People of the State of California/Bonta v. City of Huntington Beach, et al.; Case No. 30-2023-01312235-CU-WM-CJC. 2. 26-576 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Southwest Voter Registration Education Project, et al. v. City of Huntington Beach; OCSC Case No. 30-2024-01397379-CU- CR-NJC. CLOSED SESSION REPORT BY CITY ATTORNEY — None 81 City Council/PFA Special Meeting Minutes July 1, 2026 Page 2 of 2 ADJOURNMENT — at 5:56, a motion was made by Twining, with a second by McKeon, to adjourn to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, July 7, 2026, in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov _______________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 82 Regular Meeting Minutes City Council/Public Financing Authority City of Huntington Beach Tuesday, July 7, 2026 4:00 PM — Council Chambers 6:00 PM — Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:00 PM and 6:00 PM portions of this meeting is on file in the Office of the City Clerk, and archived at https://huntingtonbeach.legistar.com/Calendar.aspx 4:00 PM — COUNCIL CHAMBERS CALL TO ORDER — 4:00 PM ROLL CALL Present: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Lisa Lane Barnes announced supplemental communications received by her office following distribution of the Council Agenda packet which were all uploaded to the City's website and Councilmember iPads: Closed Session #7 (26-582) (1 email communication). PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3-Minute Time Limit) — 4 Speakers The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at https://huntingtonbeach.legistar.com/Calendar.aspx. Zoom Caller Josh Daniels, Elections Administrator from Utah, commented on Closed Session Item #7 (26-582) regarding Conference with Legal Counsel — Existing Litigation. Southwest Voter Registration Education Project, et al. v. City of Huntington Beach. (00:02:31) Kanan Durham — NOTE: Audio recording failed for duration of allotted speaking time and speaker was provided another opportunity as the last speaker, after technical issue was corrected. (00:06:27) Roy Bevins (NOTE: audio recording failed for first 6 seconds) commented on City Manager's Report #11 (26-584) regarding Study Session: Proposed Improvements to Huntington Beach Sports Complex. (00:08:55) Arash Syarti, California Ranked Choice Voting Institute, commented on Closed Session Item #7 (26-582) regarding Conference with Legal Counsel — Existing Litigation. Southwest Voter Registration Education Project, et al. v. City of Huntington Beach. (00:10:46) 83 Council/PFA Regular Meeting Minutes July 7, 2026 Page 2 of 10 Kanan Durham, Pride at the Pier Representative, commented on Closed Session Item #7 (26-582) regarding Conference with Legal Counsel — Existing Litigation. Southwest Voter Registration Education Project, et al. v. City of Huntington Beach. (00:13:36) Mayor McKeon read titles for Closed Session Items #1 (26-455) Conference with Real Property Negotiators regarding 17732 Goldenwest Street, Huntington Beach, CA, dba Park Bench Cafe, and Items #2 (26-577), #3 (26-578), #4 (26-579), and #5 (26-580) regarding Conference with Labor Negotiators for Employee Organizations: Huntington Beach Police Officers' Association (HBPOA), Police Management Association (PMA), Huntington Beach Firefighters' Association (HBFA), and Fire Management Association (FMA). A motion was made by Kennedy, with a second by Burns, to recess to Closed Session. RECESSED TO CLOSED SESSION — 4:16 PM CLOSED SESSION 1. 26-455 CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Gov. Code section 54956.8.) Property: 17732 Goldenwest St, Huntington Beach, CA 92647 (APN 111-010-69). Agency Negotiators: Travis Hopkins, City Manager; Marissa Sur, Assistant City Manager; Ashley Wysocki, Director of Community and Library Services; Chris Cole, Community and Library Services Manager; William Krill, Real Estate Project Manager. Negotiating parties: Michael and Christina Bartusick dba Park Bench Cafe and Rory Bevins (Not Present). Under negotiation: Price and terms of payment. 2. 26-577 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Huntington Beach Police Officers’ Association (HBPOA). 3. 26-578 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Police Management Association (PMA). 4. 26-579 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Huntington Beach Firefighters’ Association (HBFA). 5. 26-580 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Travis Hopkins, City Manager; also in attendance: Marissa Sur, Assistant City Manager; Mike Vigliotta, City Attorney and Zack Zithisakthanakul, Acting Chief Financial Officer. Employee Organization: Fire Management Association (FMA). 84 Council/PFA Regular Meeting Minutes July 7, 2026 Page 3 of 10 6. 26-581 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). People of the State of California/Bonta v. City of Huntington Beach, et al.; Case No. 30-2023-01312235-CU-WM-CJC. 7. 26-582 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Southwest Voter Registration Education Project, et al. v. City of Huntington Beach; OCSC Case No. 30-2024-01397379-CU- CR-NJC. 6:00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:03 PM ROLL CALL Present: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams Absent: None INVOCATION 8. 26-566 Huntington Beach Police and Fire Chaplain Roger Wing PLEDGE OF ALLEGIANCE — Led by Dennis Bauer, American Legion Post 133. CLOSED SESSION REPORT BY CITY ATTORNEY City Attorney Mike Vigliotta announced that Councilmembers did not discuss Closed Session Item #6 (26-581) Conference with Legal Counsel — Existing Litigation regarding People of the State of California/Bonta v. City of Huntington Beach, et al. and Item #7 (26-582) Conference with Legal Counsel — Existing Litigation regarding Southwest Voter Registration Education Project, et al. v. City of Huntington Beach. City Attorney Vigliotta, for benefit of the public, announced the City has only received a tentative order, not a final order, from the court for Item #7 regarding Southwest Voter Registration Education Project and noted the City has fifteen days to present objections once the final order is received. CITY COUNCIL MEMBER COMMENTS (2-Minute Time Limit) Mayor McKeon, Mayor Pro Tem Twining, Councilmembers Burns, Gruel, Kennedy, Williams and Councilwoman Van Der Mark expressed appreciation for the tremendous success of the City's July 4th and 250th Anniversary three-day event. First responders, planners and organizers, City staff, participants, residents and visitors were acknowledged for celebrating with class, American pride, patriotism and helping to keep everyone safe. Don Ramsey, Stacey Newton, Tyler Wolff, Aaron Kaufman and Mayor McKeon were acknowledged for their valuable contributions. There was a big shout-out to the Mayer Family Foundation for continuing to provide the Huntington Beach Pier fireworks through the years, including the longest HB Pier fireworks show ever for this year. It was noted that ABC parade viewership was three times higher than ever before, and parade attendance was over 32 percent higher than any previous year. Soldiers and veterans were acknowledged for fighting for America's freedoms for the last 250 years. 85 Council/PFA Regular Meeting Minutes July 7, 2026 Page 4 of 10 Councilmember Burns acknowledged the recent tribute by Tunnel for Towers Association Steel Across America at Bolsa Chica Beach. Councilmember Kennedy acknowledged the issue of Ocean View School District choosing to close Bright Hope School while noting the City Council has no direct input on the decisions made by the School Board. MAYOR’S SPOTLIGHT 9. 26-564 Mayor’s Spotlight Presentation Eva Casey, Building and Code Enforcement Division, received the Mayor's Excellence Award; July is Parks Make Life Better month which was celebrated along with community partners and non-profit organizations that make Huntington Beach parks thrive; the City's Homeless Task Force, along with the Police Department and Academy Clean-up Crew, were acknowledged for working together to achieve the lowest homeless numbers in the history of Huntington Beach; local surfers were acknowledged for their heroic actions at Bolsa Chica State Beach when a fellow surfer was knocked unconscious; and Fred's Mexican Cafe was acknowledged for their $10,000 donation to Make A Wish Foundation, $5,000 donation to the HB Council on Aging, and $5,000 donation to the Wetlands and Wildlife Center. BUSINESS HIGHLIGHT 10. 26-567 Business Highlight Presentation New Businesses Now Open and New Businesses Coming Soon were acknowledged by Mayor McKeon who encouraged everyone to shop local and explore what's new. Details can be found on the City's website under Shop Local. Mayor McKeon recognized the Huntington Beach Chamber of Commerce Sector Partnership Program which brings together like-businesses to discuss challenges, opportunities, and priorities. Sectors include Health & Wellness, Professional Services, Manufacturing, Technology & Logistics, Real Estate & Development, and Retail, Restaurant & Hospitality. More information about the Sector Partnership Program can be found on the Huntington Beach Chamber of Commerce website. Minute with the Mayor series highlighted Bark City at PCH and Newland; Luv at First Sip Nutrition at 19034 Brookhurst Street at Garfield, and Sutherlin Subaru, an automotive dealership on Beach Boulevard. COMMUNITY EVENTS ANNOUNCEMENTS (2-Minute Time Limit) Limited to one representative, one announcement — 2 Speakers Carissa Masius, Bolsa Chica Conservancy Executive Director, announced their 13th Annual Barefoot Ball fundraising event on Friday, August 7, 2026, 5:30 PM at the Waterfront Hilton Beach Resort. Ms. Masius invited community participation and support. Details are available at bolsachica.org. Jason Schmitt, City Treasurer, announced a new program to provide free financial literacy and workforce development training for 18- to 24-year-olds from economically challenged families in Huntington Beach, Fountain Valley, Garden Grove and Westminster at Goldenwest College from July 14 to August 11 with lunch provided for each session. Registration closes on July 24th. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) — None 86 Council/PFA Regular Meeting Minutes July 7, 2026 Page 5 of 10 PUBLIC COMMENTS (3 Minute Time Limit) — 20 Speakers The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at https://huntingtonbeach.legistar.com/Calendar.aspx. Unnamed Speaker commented on issues related to the International Surf Museum, the Main Street Library and Friends of the Library. (00:53:01) Ryan Nguyen, Huntington Sports Complex coach, commented on the need for more coaching for all age groups in Huntington Beach. (00:54:47) Cindy Gutierrez, parent of a Bright Side Learning Center student, commented on Ocean View School District's plan to close down Bright Side Learning Center in a couple of months and asked if City Council Members could provide any support for impacted families. Councilmember Kennedy asked Ms. Gutierrez to complete a blue card for follow-up. (00:56:09) Tim Geddes commented on the November 2026 Council Member election. (00:58:56) Dave Chennault, Huntington Beach Finance Commissioner, commented on City Manager's Report #11 (26-584), regarding Study Session: Proposed Improvements to Huntington Beach Sports Complex. (01:01:46) Jon Boomgarden, Huntington Beach Finance Commissioner, commented on City Manager's Report #11 (26-584), regarding Study Session: Proposed Improvements to Huntington Beach Sports Complex. (01:04:51) Unnamed Speaker commented on City Manager's Report #11 (26-584), regarding Study Session: Proposed Improvements to Huntington Beach Sports Complex. (01:06:09) Amory Hanson commented on the continuing fight against high-density development. (01:08:48) Russell Neal commented on the November 2026 Council Member election. (01:09:26) Gary Kanesinger commented on his personal experience related to death threats he is receiving. (01:12:24) Ellen Riley commented on the Housing Element and possibility of further oil drilling off the coast of Huntington Beach. (01:15:46) Chris Warren commented on his experiences living in Surf City Cottages Home Park and his interest in an appointment with City staff who can listen to his concerns. (01:17:30) Unnamed Speaker commented on their perspective of the comments made by a previous speaker. (01:20:31) Brett Bush, Huntington Beach Planning Commission Chair, commented on City Manager's Report #11 (26-584), regarding Study Session: Proposed Improvements to Huntington Beach Sports Complex. (01:23:31) 87 Council/PFA Regular Meeting Minutes July 7, 2026 Page 6 of 10 Reginald Peterson commented on eBike regulations especially for children. Council Woman Van Der Mark asked Mr. Peterson to complete a blue card for follow-up. (01:26:35) Ian, SSD Studio Owner, commented on the incredible resources Huntington Beach provides for local businesses and expressed his appreciation for some improvements made in preparation for the July 4th and 250th Anniversary celebrations. (01:30:12) Chris Kluwe commented on his experience of participating in the Huntington Beach July 4th and 250th Anniversary Parade. (01:31:20) Chris Rini commented on Closed Session Item #7 (26-582) Conference with Legal Counsel — Existing Litigation, regarding Southwest Voter Registration Education Project, et al. v. City of Huntington Beach. (01:34:40) Unnamed Speaker commented on the November 2026 election, housing legislation, and the Terry Park project. (01:36:33) Lisa Valdez commented on the Ocean View School District's plan to close down Bright Star Learning Center in a couple of months and asked if City Council Members could provide any support for impacted families. Councilmember Kennedy asked Ms. Valdez to complete a blue card for follow-up. (01:37:29) COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS Councilmember Williams announced his appointment of Rosalind Price to the Community and Library Services Commission; and Council Woman Van Der Mark announced her appointment of Jeanne Paris to the Community and Library Services Commission. AB 1234 REPORTING — None OPENNESS IN NEGOTIATION DISCLOSURES Mayor McKeon, Councilmember Gruel and Council Woman Van Der Mark, reported speaking to members of the Huntington Beach Police Officers' Association (POA); and Councilmember Burns reported meeting with the Huntington Beach Fire Management Association (HBFA) President. CITY MANAGER’S REPORT 11. 26-584 Held Study Session: Proposed Improvements to Huntington Beach Sports Complex City Manager Travis Hopkins introduced Community & Library Services Director Ashley Wysocki who introduced Jerry Marchbank and Matt Olmstead, HBSC Partners, LLC, who co-presented a PowerPoint communication titled HUNTINGTON BEACH SPORTS COMPLEX with slides entitled: WHERE WE STARTED; WHERE WE ARE TODAY; WHERE WE ARE TODAY ONGOING CHALLENGES; THE NEXT EVOLUTION; THE NEXT EVOLUTION RISE TRAINING CENTER; GRAPHIC RENDERINGS (2); THE NEXT EVOLUTION SPORTS TURF CONVERSION; WHEN ONE FIELD BECAME SPORTS TURF; THE NEXT EVOLUTION LED LIGHTING PROJECT; WHAT ARE THE FINANCIAL TERMS & CONDITIONS; WHAT IS THE BOTTOM LINE; and ONE VISION. Councilmember and HBSC Partners discussion included funding commitment for proposed improvements; providing practice/play opportunities for all levels of players for multiple sports; existing 88 Council/PFA Regular Meeting Minutes July 7, 2026 Page 7 of 10 batting cage history; guarantee on condition of facility and equipment when contract/lease ends; City and HBSC Partners sharing proposed improvement costs; maintenance and upkeep are built into the model presented; turf positive and negative considerations; the lease will define expectations and conditions to ensure a turn-key facility and equipment; contract maintenance obligation vs capital expenditure need to keep equipment operational; exchanging Sports Complex parking revenue for City funding; expected costs for HBSC Partners vs. City costs to implement the proposed project; confirming that 46% of current Sports Complex users are from out of town; disparity between the City and HBSC Partners out -of-town user numbers; acknowledgement that much of the City's financial commitment on this project is expected to be generated from increased revenue and reduced expenditures; current City costs to keep HBSC operational; health concerns related to turf use, especially for children, and safer options available; gross vs. net amounts and potential financial disparities between various slides in the project presentation; typical park vs. sport field maintenance processes and costs; expected cost reductions from implementing LED lighting; considerations used to determine Sports Complex field irrigation costs; questioning why projected potential savings are included as revenue in the pro forma; license and/or operational agreement vs. lease agreement; the point at which the Request for Proposal (RFP) process would be implemented; holding off on a decision to allow the Planning Commission adequate time to review options; the Merchants contract was written for a park rather than a Sports Complex; the fields are in disrepair because the money is not being spent to properly maintain as playing fields; increased demand for services; the City's costs will be amortized over the project life, paid for by Sports Complex increased parking revenue; review of revenue sharing details; possibility of turning concession stands into restaurants; current Sports Complex parking fees; economic impact to the wider community through a world-class Sports Complex; this proposal is a project in process, not yet a final project, and study sessions help fine-tune it; improved facilities will increase demand; community outreach efforts; sponsorship opportunities; and acknowledgement that not every capital improvement project will yield a monetary return to the City, such as the LED lighting to replace end-of-life equipment. A motion was made by Williams, second Gruel, as amended, to Refer Proposed Improvements to Huntington Beach Sports Complex to the Finance Commission for Review and direct staff to assist in providing the Finance Commission Sub Task Committee with the data they need to provide a written recommendation to City Council. No vote taken because the following substitute motion was approved. A substitute motion was made by Williams, second McKeon, to Refer Proposed Improvements to Huntington Beach Sports Complex to the Finance Commission for Review and direct staff to assist in providing the Finance Commission Sub Task Committee with the data they need to provide a written recommendation to City Council, as amended, by the August 18th meeting, including continued concurrent dialogue with HBSC Partners, LLC. The motion carried by the following roll call vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams NOES: None CONSENT CALENDAR (Items 12 - 17) Councilmember Gruel pulled Item #13 for further discussion. City Clerk 89 Council/PFA Regular Meeting Minutes July 7, 2026 Page 8 of 10 12. 26-565 Approved and Adopted Minutes A motion was made by Burns, second McKeon, to approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 16, 2026. The motion carried by the following roll call vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams NOES: None City Manager 13. 26-588 Approved Implementation of Huntington Beach Pier Stairs Advertising Pilot Project Councilmember Gruel pulled this item to clarify if the questions asked during the presentation of this item had been addressed or answered. City Manager Travis Hopkins clarified that for staff to move forward with accurate answers to all the initial questions, it will be necessary to run a one-year pilot program by amending the contract with Rio Media and Advertising to expand the scope of services to include pier stairs advertising. Assistant City Manager Marissa Sur provided an update on the liability concerns and stated that typically contracts transfer risk to the contractor by way of indemnification and insurance requirements, while ensuring in this case that any signage is only affixed to the front or step risers, not on the top where people step. Manager Sur stated the pilot program would provide opportunity to thoroughly evaluate all concerns. City Attorney Mike Vigliotta confirmed that typically if the City is sued, related to an incident on indemnified property, the lawsuit is transferred to the contracting party. A motion was made by Twining, second McKeon, to authorize the City Manager to implement a one-year pilot project for pier stairs advertising and amend the contract with Rio Media and Advertising to expand the scope of services to include pier stairs advertising. The motion carried by the following roll call vote: AYES: Kennedy, Twining, McKeon, Burns, and Van Der Mark NOES: Gruel, and Williams Police 14. 26-572 Approved and authorized execution of Amendment No. 2 to Add Additional Compensation to the Agreement Between LM Investigations, LLC, and the City of Huntington Beach for Background Services for the Huntington Beach Police Department (HBPD) A motion was made by Burns, second McKeon, to approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Agreement Between the City of Huntington Beach and LM Investigations, LLC for Background Investigative Services" to hire qualified candidates for the HBPD. The motion carried by the following roll call vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams 90 Council/PFA Regular Meeting Minutes July 7, 2026 Page 9 of 10 NOES: None Public Works 15. 26-516 Approved and Authorized Execution of a Professional Services Agreement with Sierra Analytic Laboratories, Inc. for Water Quality Analysis and Sampling A motion was made by Burns, second McKeon, to approve and authorize the Mayor and City Clerk to execute "Service Agreement Between the City of Huntington Beach and Sierra Analytic Laboratories, Inc. for Water Quality Analysis and Sampling", in an amount not to exceed $300,000 for a three-year term. The motion carried by the following roll call vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams NOES: None 16. 26-557 Accepted Lowest Responsive and Responsible Bid and Awarded Construction Contract to Empire Design & Build in the Amount of $480,000 for the Water Production Office Renovation Project, CC1767 A motion was made by Burns, second McKeon, to accept the lowest responsive and responsible bid submitted by Empire Design & Build in the amount of $480,000; and, authorize the Director of Public Works to Approve change orders up to 20% contingency in potential construction-related changes; and authorize the Mayor and City Clerk to execute a construction contract with Empire Design & Build in a form approved by the City Attorney. The motion carried by the following roll call vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams NOES: None 17. 26-561 Accepted Lowest Responsive and Responsible Bid and Awarded Construction Contract to Sequel Contractors, Inc. in the Amount of $6,783,480 for the 2025 Arterial Rehabilitation Project (CC1771) A motion was made by Burns, second McKeon, to accept the lowest responsive and responsible bid submitted by Sequel Contractors, Inc. in the amount of $6,783,480; and, authorize the Director of Public Works to approve change orders up to 10% contingency in potential construction change orders; and, approve the appropriation of $682,737 to account 125490002.82300; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following roll call vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, and Williams NOES: None City Attorney Mike Vigliotta reminded Councilmembers that during the Public Comments portion of a meeting Councilmembers need to refrain from any dialogue with any speaker as it is time designated for the public to share their comments. It is appropriate to ask a public speaker to complete a blue card for further discussion. 91 Council/PFA Regular Meeting Minutes July 7, 2026 Page 10 of 10 ADJOURNMENT — At 9:21 PM Mayor McKeon adjourned the meeting to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, July 21, 2026, in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov _______________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 92 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-610 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager PREPARED BY:Shannon Levin, Council Policy Analyst Subject: Approve the appointment of Debbie Iorio to the City Celebration Committee as recommended by City Council Liaisons Mayor Casey McKeon and Mayor Pro Tem Butch Twining Statement of Issue: The City Council is asked to approve the appointment of one At-Large Member to the City Celebration Committee as recommended by Council Liaisons Mayor Casey McKeon and Mayor Pro Tem Butch Twining. Financial Impact: Not applicable. Recommended Action: Approve the appointment Debbie Iorio to the City Celebration Committee. Committee members will serve until a respective successor is appointed and qualified. The Council Liaison has the power to recommend replacement members for any vacancies. Alternative Action(s): Do not approve the recommended appointment and direct staff accordingly. Analysis: The City Celebration Committee was established by the City Council at the December 19, 2023 meeting. The City Celebration Committee is a 7-9 member resident committee to aid in the development of the City's Annual Celebration Calendar. The Committee is tasked with making recommendations to the City Council Liaisons on future celebratory themes and acknowledgments. The Committee also makes recommendations to City staff on potential celebration content. As City Council Liaisons to the City Celebration Committee, Mayor McKeon and Mayor Pro Tem Twining make a recommendation for the City Council to Debbie Iorio to the vacant position. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will City of Huntington Beach Printed on 7/15/2026Page 1 of 2 93 File #:26-610 MEETING DATE:7/21/2026 Strategic Plan Goal: Non Applicable - Administrative Item City of Huntington Beach Printed on 7/15/2026Page 2 of 2 94 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-600 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Jennifer Villasenor, Director of Community Development PREPARED BY:Jimmy Hoang, Code Enforcement Manager Subject: Adopt Resolution No. 2026-32 Confirming Cost Report for Weed Abatement on Private Parcels Within the City for the 2026 Season Statement of Issue: The City identified properties with weeds and rubbish as nuisances, notified the owners, and held a public hearing for objections. Eleven properties did not comply by the deadline of May 24, 2026. The City removed the nuisances and compiled a cost report for these services, which is now submitted for City Council approval (Attachment 2). Financial Impact: A one-time special assessment totaling $6,160.36 will be added to the Orange County property tax roll. This amount will reimburse the City’s General Fund, which covered the initial expense from Account No. 10060301.64620 for Weed Abatement Contracts. Recommended Action: A) Adopt Resolution No. 2026-32 “A Resolution of the City Council of the City of Huntington Beach Confirming the Report of the Public Works Director Regarding the Cost for Weed Abatement on Private Property Within the City for the 2026 Season,” and B) Direct that all charges listed thereon be certified to the Orange County 2026/27 Property Tax Roll. Alternative Action(s): Do not approve the Resolution, resulting in the City not being reimbursed for the weed abatement costs on the eleven properties, and direct staff accordingly. Analysis: Chapter 8.16 of the Huntington Beach Municipal Code (HBMC) mandates the removal of weeds and rubbish on private property. Weeds and rubbish can pose several risks, including fire hazards, health City of Huntington Beach Printed on 7/15/2026Page 1 of 2 95 File #:26-600 MEETING DATE:7/21/2026 . By approving the cost report and securing property tax liens for the listed charges, the City ensures that the costs are recovered and reinforces the importance of property maintenance, promoting a safer and more pleasant environment for residents. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. Resolution No. 2026-32 “A Resolution of the City Council of the City of Huntington Beach Confirming the Report of the Public Works Director Regarding the Cost for Weed Abatement on Private Property Within the City for the 2026 Season” 2. 2026 Weed Abatement Cost Report 3. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 2 of 2 96 97 RESOLUTION NO. 2026-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH CONFIRMING THE REPORT OF THE PUBLIC WORKS DIRECTOR REGARDING THE COST FOR WEED ABATEMENT ON PRIVATE PROPERTY WITHIN THE CITY FOR THE 2026 SEASON WHEREAS, the Director of Public Works has posted the itemized written report showing the cost of removal of weeds from private party lots within the City of Huntington Beach, together with a notice of time of submission of said report, pursuant to Government Code Section 39575; and The time for receiving and considering said report and hearing any objections of the property owners liable to be assessed for the abatement of said weeds was duly fixed for July 21 , 2026 , before this Council, NOW , THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows : 1. That the report of the Director of Public Works regarding the cost for weed abatement on private property within the City , a copy of which is attached hereto as Exhibit "A," and incorporated by this reference as though fully set forth herein, is hereby confirmed and approved. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21 st day of July, 2026. Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager D~ APPROVED AS TO FORM: City Attorney 2 6-1843 8/420072 98 APN LOCATION SIZE SQ. FT. Clearing Cost Hauling Cost CITY ADMIN. Tota l Forward to Contractor 024-107-09 N/W CORNER 8TH & PECAN 50X117.5 5,875 158.63 0 .00 $272 $430 .63 For Willowbrook 024-134-15 TRIANGLE E/S LAKE BTW ALLEY & ORANGE ODD 5,640 152.28 45.00 $272 $469.28 For Willowbrook 111 -130-07 S/SIDE GARFIELD E OF GOLDENV\EST ODD 5,850 157.95 45.00 $272 $474.95 For Willowbrook 111 ·130-08 $/SIDE GARFIELD E OF GOLDENWEST ODD 5,850 157.95 45.00 $272 $474.95 For Willowbrook 111-130-09 S/E CORNER GARFIELD & GOLDENWEST 100 X 117 11.700 315.90 135.00 $272 $722.90 For Willowbrook 111-130-10 S/E CORNER GARFIELD & GOLDENWEST 50X 117 5,850 157.95 45.00 $272 $474.95 For Wi llowbrook 111-130-14 SISIDE GARFIELD E OF GOLDENWEST Unknown 23,750 641.25 135.00 $272 $1,048.25 For Willowbrook 111-130-39 SIE CORNER GARFIELD & GOLDENWEST 51 X 117 5,851 157.98 45.00 $272 $474.98 For Willowbrook 178-411-19 END OF MALDEN CIRCLE ODD 9,000 243.00 0.00 $272 $515.00 For Willowbrook 178-523-09 PCH/18TH ST -SUNSET BEACH BOX 71 5,647 152.47 45.00 $272 $469.47 For Willowbrook 178-532-78 S/SIDE PCH WOF WARNER .SUNSET BEACH Unknown Unknown 243.00 90.00 S272 $605.00 For Willowbrook Annual Weed Abatement Cost Recording City Council Meeting July 21, 2026 99 BACKGROUND •On April 7, 2026 the City Council adopted Resolution No. 2026-07, declaring weeds, rubbish, and refuse on certain vacant properties a public nuisance. •Affected properties were identified through document research and field inspections (121 properties were identified) 100 PROGRAM TIMELINE Notification and Public Hearing: •April 8-17, 2026: Notices posted on affected properties and letters mailed to owners. •May 5, 2026: Public Hearing at City Council to hear any objections. •May 24, 2026: Deadline for property owners to clear their properties. 101 PROGRAM TIMELINE City Abatement and Cost Recovery: •May 26 – June 6, 2026: City abates properties not cleared by owners. •July 13, 2026: Cost per parcel posted on Council Bulletin Board. •July 21, 2026: City Council certifies clearing costs for inclusion on the County 2026–2027 Tax Roll. •All abatement costs are assessed to property owners through their property tax bills. 102 RECOMMENDATION •Recommend the City Council: •Adopt Resolution 2026-32 •Direct all charges listed thereon be certified to the Orange County 2026/27 Property Tax Roll 103 Questions? 104 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-607 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Jennifer Villasenor, Director of Community Development PREPARED BY:Jennifer Villasenor Subject: Approve Response Letter to the 2025-2026 Orange County Grand Jury Report Related to State Housing Mandates and Forward to the Presiding Judge Statement of Issue: Transmitted for City Council consideration is a response letter to the Orange County Grand Jury Report entitled “California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods,” which was released to the public on May 27, 2026. Pursuant to California Penal Code Section 933.05 the City must respond to certain findings and recommendations within 90 days (by August 27, 2026). Financial Impact: There is no fiscal impact associated with this action. Recommended Action: A) Approve the City’s response letter to the Orange County Grand Jury Report entitled “California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods”; and B) Authorize the City Manager to submit the response letter to the Presiding Judge of the Superior Court. Alternative Action(s): The City Council may take the following alternative action: Amend the response letter prior to submitting to the Presiding Judge. Pursuant to state law, the City must submit a response within 90 days. Analysis: The Grand Jury is a judicial body empowered with investigative duties by the Superior Court of California and is composed of local citizens whose principal role is to be a “watchdog” over local City of Huntington Beach Printed on 7/15/2026Page 1 of 2 105 File #:26-607 MEETING DATE:7/21/2026 Environmental Status: The requested action is an administrative activity of the City Council that would not result in direct or indirect physical environmental effects. As such, the requested action is not a project pursuant to Section 15378 of the California Environmental Quality Act (CEQA) Guidelines and no further CEQA review is required. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Orange County Grand Jury Report - “California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods” 2. Draft City Response Letter City of Huntington Beach Printed on 7/15/2026Page 2 of 2 106 107 May 21, 2026 T he Honorable Pat Burns Mayor of Huntington Beach 2000 Main Street Huntin gton Beach, CA 92648 Dear Mayor B urn s: ORANGE COUNTY GRAND JURY 700 CIVIC CENTER DRIVE WEST • SANTA ANA, CALIFORNIA 92 701 • 714/834-3320 www.ocgrandjury.org • FAX 714/834-5555 Enc losed is a copy of the 2025-2026 Orange Cou nty Grand Jwy report, California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods. Pursuant to Penal Code 933.05(f), a copy of the repott is being prov id ed to yo u a t least two working days prior to its public rel ease. Please no te that under th at s ubsection , "No officer, agency, departm e nt, o r governing body of a public agency s hall disclose any co ntents of the report prior to the public release of the final report ." (Emphasis added.) It is requested that you provide a response to eac h of the findings and r ecommendations of t hi s report directed to your office in comp liance with Penal Code 933.05(a) and (b ), copy is enclosed. Pl ease distribute this report to your govern ing body . For each Gra nd Jury recomm e nd a tion accepted a nd not implemented, provide a schedule for fut ure implementation. In additio n, by the end of March of each s ubseq uent year, p lease report o n the progress being made on each recommendat ion accepted but not compl eted . T hese a nnua l reports sh o uld continue until all recomme ndations are implemented. Please mail the response to the reco mmend ati o ns to Sheila F. Hanson, Presiding J~1dge of the Superior Co u11, 700 Civ ic Ce nte r Drive West, Santa Ana, CA 9270 1, w ith a sep arate copy mailed to the Ora nge Cou nty Grand Juty , 700 Civic Cente r Drive Wes t, San ta Ana, CA 9270 1, no later than 90 days afte r th e public re lease date, Ma y 27, 2026, in compliance with Penal Code 933, copy e ncl osed. T he due date the n is August 27, 2026. S hould add iti onal time fo r re sponding to thi s report be necessary fo r further ana lysis, Penal Code 933 .05(b )(3) perm its an extens io n of time up to s ix months from the public re lease date. Such exte ns io ns s hou ld be adv ised in writing, with the informati on required in Penal Code 933 .05(b)(3), to the Presiding Judge of the Superior Cow1, wi th a separate copy of t he request to the Grand Jury. We tentative ly plan to issue the public release on May 27, 2026. Upo n public re lease, the report will be available on the G rand Jury website at www.ocgrandjury.org. Judy Howard, Foreperson 2025-2026 ORANGE COUNTY GRAND JURY J H :j m Enclosu res: G ra nd Jury Report Penal Code 933, 933.05 Cc: Tra v is Ho p ki ns. Ci t: \fa na g e r 108 109 California Penal Code Sections §933 and §933.05 [NOTE: to reduce grand jmy requests for additional response information, the grand jury has bolded those words in *933,05 which should be appropriately included in a response] *933 (a) Each grand jury shall submit to the presiding judge of the superior court a final report of its findings and recommendations that pertain to county government matters during the fiscal or calendar year. Final reports on any appropriate subject may be submitted to the presiding judge of the superior court at any time during the tenn of service of a grand jury. A final report may be submitted for comment to responsible officers, agencies, or departments, including the county board of supervisors, when applicable, upon finding of the presiding judge that the report is in compliance with this title. For 45 days after the end of the tenn, the foreperson and his or her designees shall, upon reasonable notice, be available to clarify the recommendations of the report. (b) One copy of each final report, together with the responses thereto, found to be in compliance with this title shall be placed on file with the clerk of the court and remain on file in the otlice of the clerk. The clerk shall immediately forward a trne copy of the report and the responses to the State Archivist who shall retain that report and all responses in perpetuity. (c) No later than 90 days after the grandjuiy submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and evety elected county officer or agency head for which the grand jmy has responsibility pursuant to Section 914. l shall comment within 60 days to the presiding judge of the superior court, with an infonnation copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All of these comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the grand juiy. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jmy final report by, and in the control of the cul1'ently impaneled grand jmy, where it shall be maintained for a minimum of five years. (d) As used in this section "agency" includes a department. *933.05 (a) For purposes of subdivision (b) of Section 933, as to each grand jury finding, the responding person or entity shall indicate one of the following: (I) The respondent agrees with the finding. (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) For purposes of subdivision (b) of Section 933, as to each grandjmy recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters ofan analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six months from the date of publication of the grandjmy report. (4) The recommendation will not be implemented because it is not wananted or is not reasonable, with an explanation therefor. (c) However, ifa finding or recommendation of the grand jury addresses budgetaiy or personnel matters ofa county agency or department headed by an elected officer, both the agency or dcpm1ment head and the board of supervisors shall respond if requested by the grand jury, but the response of the board of supervisors shall address only those budgetary or personnel matters over which it has some decision making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. ( d) A grand jury may request a subject person or entity to come before the grand jury for the purpose of reading and discussing the findings of the grand jmy report that relates to that person or entity in order to verify the accuracy of the findings prior to their release. {e) During an investigation, the grand jury shall meet with the subject of that investigation regarding the investigation, unless the court, either on its own determination or upon request of the foreperson of the grand jury, determines that such a meeting would be detrimental. (t) A grand jury shall provide to the affected agency a copy of the portion of the grandjmy report relating to that person or entity two working days prior to its public release and after the approval of the presiding judge. No officer, agency, department, or governing body of a public agency shall disclose any contents of the report prior to the public release of the final report. 110 111 112 California State Housing Mandates This page left intentionally blank! Page 2 of 6 7 Ora n ge C ount y G rand Jury 2025-20 26 113 California State Housing Mandates TABLE OF CONTENTS SUMMARY .................................................................................................................................................... 5 BACKGROUND ............................................................................................................................................ 6 REASON FOR S11JDY .................................................................................................................................. 9 MEI'lIOD OF S11JDY ................................................................................................................................. 10 RESEARCH ........................................................................................................................................... 10 INTERVIEWS ......................................................................................................................................... 10 OBSERVATIONS AND SITE VISITS ............................................................................................................... 10 PUBLIC FORUMS AND EVENTS .................................................................................................................. 11 GOVERNMENT MEETINGS ........................................................................................................................ 11 DOCUMENT REVIEW ............................................................................................................................... 11 CITY SURVEY ........................................................................................................................................ 11 INVFSTIGATION AND ANALYSIS ............................................................................................................ 11 STATE HOUSING MANDATES AND LOCAL IMPLEMENTATION ............................................................................. 11 ENVIRONMENTAL CONTEXT AND CEQA ...................................................................................................... 13 REGIONAL HOUSING NEEDS ASSESSMENT PROCESS ..................................................................................... 15 REGIONAL HOUSING NEEDS ANALYSIS CHALLENGES .................................................................................... 17 PENALTIES FOR Nor HAVING AN HCC-APPROVED HOUSING ELEMENT ............................................................. 19 PENALTIES FOR Nor MEETING HOUSING-PLAN CONSTRUCTION GOALS ............................................................ 20 FEASIBILITY OF HOUSING MANDATE IN ORANGE COUNTY ............................................................................... 20 ONE Size Does Nor Fir ALL. ................................................................................................................... 22 CALIFORNIA AND ORANGE COUNTY POPULATION TRENDS .............................................................................. 23 6"' CYCLE (2021 -2029) HOUSING ALLOCATIONS IN OC ............................................................................... 25 CITY CHALLENGES ................................................................................................................................. 27 7"' CYCLE (2029-2037) CONCERNS ......................................................................................................... 31 CONCLUSION ............................................................................................................................................ 32 FINDINGS ................................................................................................................................................... 34 RECOMMENDATIONS .............................................................................................................................. 36 RESPONSES CODE ..................................................................................................................................... 40 RESPONSES ................................................................................................................................................ 41 GLOSSARY AND ACRONYMS ................................................................................................................... 45 BIBLlOGRAPHY ......................................................................................................................................... 49 APPENDIX .................................................................................................................................................. 55 APPENDIX A: MAJOR HOUSING LAWS & WHAT THEY TRIED TO Do ................................................................. 55 APPENDIX B : ORANGE COUNTY HOUSING MANDATE SURVEY QUESTIONS ...................................................... 65 APPENDIX C: RESPONSIBILITIES ............................................................................................................ 65 Responsibilities of OCCOG ........................................................................................................... 65 Pa ge 3 of 67 Oran ge County Gra nd Jury 2025-2026 114 California State Housing Mandates Responsibilities of SCAG .............................................................................................................. 66 Responsibilities of HCD ................................................................................................................ 66 Page 4 of 67 Orange County Grand Jury 2025-2026 115 California State Housing Mandates SUMMARY California's perceived housing shortage has prompted the California Legislature to impose increasingly bureaucratic prescriptive State Housing Mandates (Housing Mandates) on local governments, with the stated goal of accelerating production across all income levels. Core frameworks such as the Housing Element and the Regional Housing Needs Allocation (RHNA) process require cities and counties to plan for significant increases in housing capacity. Many additional statutes have contributed to a streamlined development approval process and weakened local discretion with severe penalties for noncompliance. These measures are intended to overcome decades of the perceived underbuilding and restrictive zoning within cities, yet their cumulative effect has been to create unnecessary local government costs , confusion, inequity, and growing tension between state directives and local realities. All of these efforts have led to minimal housing being built. In Orange County, a region defined by diverse cities, established neighborhoods, and distinct infrastructure constraints, as well as environmentally sensitive areas, these Housing Mandates operate as a one-size-fits-all system poorly suited to local conditions. Housing targets are derived from opaque formulas, that fail to account for land costs, land availability, funding limitations, labor shortages, construction costs, infrastructure capacity and accurate population projections . Without corresponding investments in transit, utilities, schools, parks, public safety, and affordable housing subsidies, the Housing Mandates themselves are largely impractical and difficult to achieve. In addition, because of the financial infeasibility of building low-income housing without subsidies, cities must approve developments with higher density to pay for and meet the affordable housing requirements . As a result, local cities face mounting pressure to comply with requirements that often lack economic and logistical feasibility . The dissolution of local redevelopment agencies in 2012 eliminated a primary mechanism for financing and managing affordable housing at the local level. In response, the State layered new housing requirements through the Housing Mandates onto cities and counties without restoring comparable funding tools or infrastructure support. Although these laws are framed as solutions to homelessness and affordability, they have in fact caused unintended consequences that have not produced incremental housing production . This is primarily due to regulatory complexity, limited subsidies, and heavy reliance on private market forces. Over time, repeated legislative interventions to solve these challenges have only expanded state authority. This leaves local governments with fewer resources and diminished control. Housing Mandates have significantly eroded local land-use authority, supplanting community-based planning with rigid, top-down rules. Residents experience a loss of Page 5 o f 67 Orange County Grand Jury 2025-2026 116 California State Housing Mandates meaningful input; even as local officials remain legally responsible for compliance. Streamlined approvals frequently bypass public hearings and local design standards, shift liability to cities, and prioritize building over neighborhood character. The practical elimination of traditional single-family zoning and the widespread upzoning of existing neighborhoods threaten longstanding community character while limiting local oversight of height, density, parking, and environmental resilience . The Southern California Association of Governments (SCAG) determines the RHNA housing allocation for most of Southern California. Within this framework, the Orange County Council of Governments (OCCOG) serves as the County's representative to SCAG in the RHNA process. The RHNA methodology and resulting allocations have been widely criticized as unrealistic, inequitable, and insufficiently transparent.1 OCCOG's level of influence with SCAG is critical to regional planning outcomes . OCCOG needs substantial funding increases to better advocate in Sacramento and within SCAG to support OC jurisdictions. Given the significant challenges and inequitable housing allocations experienced during the current RHNA 6th Cycle (2021-2029), it is imperative that Orange County begin strategic preparation for the upcoming 7th Cycle (2029-2037) process. Proactive planning will strengthen the County's ability to advocate within SCAG for fair, data-driven, and achievable housing allocations in the next cycle. This report examines how Housing Mandates operate in practice within Orange County, and how well -intended legislation has produced unintended consequences for cities, neighborhoods, and local governance. It evaluates the feasibility, effectiveness, and equity of current state policies, and highlights the growing disconnect between mandated housing goals and the capacity of communities to absorb them responsibly. The report underscores the need for housing solutions that respect local conditions, restore meaningful public participation, and align development goals with infrastructure, funding, and community priorities. BACKGROUND California continues to experience some of the highest housing prices and rents in the nation, while some say housing production has not kept pace with population and employment growth2 . State policymakers have concluded that fragmented local decision -making, restrictive zoning practices, and lengthy approval processes, have 1 New-Pathways-to -E ncou rage-H ous in g-Product ion-Eva lu atin q-Ca lifo rnias -Recent-Ho usin g-Legi slation ­ Ap ri l-2 023-Fin al.pdf 2 Ca lifo rni a Housin g in 2025 -Advocacy -Ca li fo rn ia C hamber of Comme rce Page 6 of 67 Orange County Grand Jury 2025-2026 117 California State Housing Mandates contributed to this imbalance 3. In response, the California Legislature has pursued a more centralized and enforceable approach to housing policy such as Senate Bill (SB)9, SB10, SB35, SB79, SB131, SB330, and Assembly Bill (AB)1050, AB2011 (see Appendix A), shifting significant authority from local jurisdictions to the State. Since 2017, the California Legislature has enacted more than one hundred housing-related bills designed to establish clearer production expectations , reduce procedural delays, and strengthen enforcement mechanisms for jurisdictions that do not comply with state housing requirements . The Housing Element Law (Government Code 65580-65589 .11 ), originally adopted in 1969, remains the foundation of California's housing policy. The law requires every city and county to prepare a Housing Element as part of its General Plan that identifies how the jurisdiction will meet the housing needs of all income groups.4 The RHNA process implements these Housing Mandates by assigning each jurisdiction a specified number of housing units-categorized by income level. Compliance is tied to eligibility for state housing and transportation funding, creating substantial financial implications for the County of Orange and its 34 municipalities. Zoning has long been a cornerstone of local government authority, guiding development, and shaping the physical form of cities . First introduced in the late nineteenth and early twentieth centuries to address public safety concerns, zoning has since expanded into a sophisticated regulatory system governing land use, building height, setbacks, lot coverage, density, and numerous other development standards. These tools enable local governments to align growth with infrastructure capacity, environmental constraints, and long -term planning objectives, while simultaneously delivering broad public benefits. In addition to protecting public health and safety by distancing residential areas from heavy industrial activities and ensuring reliable emergency access, zoning helps preserve neighborhood character and property values. It also supports community cohesion by balancing residential, commercial, and civic uses, and guides growth in ways that correspond with available public services and facilities. Moreover, zoning plays a vital role in safeguarding environmentally sensitive areas and reducing exposure to wildfire risks, underscoring its enduring importance as a foundational instrument of urban planning . In recent years, trad itional zoning practices have been subject to increasing scrutiny. Critics argue that low-density zoning and land-use restrictions have contributed to housing shortages, affordability challenges, socioeconomic segregation, 3 In Califo rni a, statewide ho u si ng reform s brush aga inst loca l resistanc e l Brookings 4 New-Pathways-to-Enco urage-Hous ing-P roducti on-Eva luating-Ca lifornias-Recent-Housing -Leg islation­ Apri l-2023-F inal.pdf Page 7 o f 6 7 Ora nge County Grand Jury 2025-20 26 118 California State Housing Mandates automobile-dependent development , and exclusionary housing patterns. 5 Housing advocates, civil rights organizations, and some policymakers have cited these concerns as justification for significant state intervention and reform of local land-use authority.6 State leaders have relied on these critiques to support a series of Housing Mandates that expand the State's role in local planning decisions. These measures prioritize increased housing production as the central response to the State's affordability challenges . The underlying assumption is that a significant increase in supply will help reduce housing costs . However, historical data reviewed by the 25-26 Orange County Grand Jury (OCGJ) indicate that periods of high housing production in Orange County, including during the 1990s, did not consistently result in improved affordability. 7 This suggests that housing affordability is influenced by multiple factors other than housing supply, including land values, construction costs, wages , and regional economic conditions. The dissolution of redevelopment agencies in 2012 further altered the local housing landscape. Redevelopment agencies had served as a significant source of financing for affordable housing and community revitalization projects through tax-increment financing and state-authorized planning powers. Their elimination removed a key funding mechanism for cities and counties.8 In subsequent years, the State imposed additional Housing Mandates without restoring revenu e sources, leaving jurisdictions and builders responsible for meeting expanded obligations with reduced financial capacity. The current generation of State Housing Mandates (6 1h Cycle) reflects multiple statewide policy objectives. Early legislative proposals referenced a goal of constructing approximately 3 .5 million new housing units; later that figure was reduced to approximately 2.5 million units.9 Despite these goals , statewide production continues to fall short of identified need. To address this, state housing legislation has emphasized increased zoning density, reduced discretionary review, expanded ministerial approval pathways, strengthened density bonus incentives, and increased requirements for jurisdictions to facilitate affordable housing in lieu of government subsidies. Additional measures focus on locating new housing near employment centers and transit corridors to reduce commute times and greenhouse gas emissions. 10 5 National Low Incom e Ho usi ng Coa lition -Land Use Re strictions an d Affordab le Housing 6 Fixin g Ca lifornia's housing shortage requi res new policy and new po liti cs -Berk eley Economy & Society Initiative 7 Court Ag rees Anaheim V iolated State Law. Decis ion is a Big Win fo r Fai r Housing in Ca lifo rnia I Ca lifornia Department of Ho using and Commun ity Developmen t 8 Ca l ifornia Post-RDA Affordable Housing Developer Su rvey: A na lysis of Res ults -San Francisco Fed 9 New-Pathways-to -Encourage -Hous in g-Production -Eva luating-C a lifornias-Recent-Ho using-Leqis lation ­ April-2 023-Fina l.pdf 10 Ca lifornia State Senate Recent Legislative Acti ons Page 8 of 67 Oran ge County Grand Jury 2025-2026 119 California State Housing Mandates Collectively, these policies mark a significant shift in California's approach to land-use governance. While intended to address housing shortages and affordability concerns, they have also raised questions regarding feasibility, infrastructure capacity, public engagement, and the long-term effects on established communities. These issues are particularly relevant in Orange County, where many cities are fully built out, constrained by environmental concerns, geography, and infrastructure limitations, and seeking to balance statutory obligations with community priorities and public expectations. The impact on Orange County and its 34 cities in meeting these Housing Mandates deserves intense scrutiny. REASON FOR STUDY The expansion of Housing Mandates has provoked public awareness and challenged local governments. Media coverage has grown, reflecting divergent viewpoints regarding the Housing Mandates' effectiveness, equity, and long-term consequences. Cities across Orange County have responded in a variety of ways, adopting compliance strategies that differ widely in breadth, transparency, and community engagement. Residents have expressed a similarly broad range of perspectives, from support for expanded housing opportunities to concerns regarding neighborhood impacts, infrastructure strain, loss of local control, and limitations on public participation in land-use decision-making. Housing Mandates have the potential to significantly reshape the character of Orange County Communities . Beyond requiring increased zoning density and higher residential densities, the Housing Mandates influence demographic patterns, neighborhood character, transportation systems, public services, and environmental concern. Local jurisdictions must absorb these impacts without corresponding state investment in infrastructure, affordable housing subsidies, or restoration of tools previously used to manage growth, such as redevelopment agency financing. Given these conditions , this report attempts to evaluate both the intended and unintended consequences of Housing Mandates as they are applied within Orange County. It will identify where state requirements may conflict with local capacity and community needs and assess how recent legislative changes have shifted the balance between state authority and local governance. In addition, this report seeks to establish a strategic framework for influencing future housing allocations within SCAG by strengthening the role and effectiveness of OCCOG as we move into the next planning phase. Page 9 of 67 Orange County Grand Jury 2025-2026 120 California State Housing Mandates METHOD OF STUDY In conducting this study, the OCGJ employed a multi-method approach designed to gather information from a broad range of governmental, professional, construction industry, and community perspectives . The methodology included research, interviews, observational site visits, document review, surveys, and participation in relevant public forums. This comprehensive approach allowed the OCGJ to evaluate how Housing Mandates are interpreted, implemented, and experienced across Orange County jurisdictions . Research The OCGJ conducted extensive background research using publicly available sources, including: • Governmental and agency websites • Online news and media sources • Local and Community news outlets Interviews The OCGJ conducted interviews with representatives from the following organizations and groups: • City leadership from multiple Orange County cities • Sitting and former city officials • Orange County Council of Governments (OCCOG) • Orange County Public Works -Development Services • Orange County Housing & Community Development • Local housing program administrators • American Institute of Certified Planners (AICP) -housing specialists • Private-sector builders and development professionals Observations and Site Visits OCGJ members conducted guided site visits and observations of housing and mixed -use developments, including: Multiple retail and housing developments (market rate, affordable and low income) in : • Huntington Beach • Midway City • Anaheim • Santa Ana • Westminster • Irvine Page 10 of 67 Orange County Grand Jury 2025 -2026 121 California State Housing Mandates • San Juan Capistrano Public Forums and Events The Members of the OCGJ attended: • The 2025 Chapman Economic Forecast • Newport Beach Community Forum • Foothills Neighborhood Association Town Hall Government Meetings The Members of the OCGJ attended: • Orange County Board of Supervisors • Orange County Council of Governments (OCCOG) • Technical Advisory Committee (TAC), a subcommittee of OCCOG • Monitored City Council meeting within the County Document Review • Complaints and correspondence submitted by Orange County residents . • Community Development Reco rds from applicable jurisdictions City Survey The OCGJ developed and distributed written survey questions to Orange County cities to gather information concerning: • Housing Element compliance strategies • Local responses to Housing Mandates • Community engagement processes • Infrastructure and resource constraints INVESTIGATION AND ANALYSIS State Housing Mandates and Local Implementation The Housings Mandates , through the laws approved by the California Legislature, have pursued a more centralized and enforceable approach to housing policy (Appendix A), shifting s ign ificant authority from local jurisdictions to the State . Since 2017, the California Legislature has enacted more than one hundred housing related bills, designed to establish clearer production expectations, reduce procedural delays, and strengthen enforcement mechanisms for jurisdictions that do not comply with state housing requirements. Page 11 o f 67 Orange County Grand Jury 2025 -2026 122 California State Housing Mandates California's housing statutes are not aspirational guidelines; they carry the force of law and impose affirmative legal obligations on local jurisdictions. Cities are therefore required to plan for, accommodate, and in many cases, approve housing development consistent with Housing Mandates, regardless of local political preferences, historic planning practices or public consensus . According to California State policy guidance, the Housing Mandates are intended to address decades of housing underproduction that state policymakers identify as contributing to rising housing costs, overcrowding, displacement, reduced economic mobility and a lack of affordable housing.11 From the State's perspective, reliance on regional and local discretion has not consistently generated housing at levels necessary to improve affordability, particularly for lower and moderate-income households.12 In response, the California Legislature and HCD have adopted a compliance driven model designed to ensure that every jurisdiction contributes to meeting statewide housing needs. Orange County cities differ significantly. Th OCGJ's investigation focused on areas where the state's rapidly evolving legislative requirements conflicted with local zoning practices, infrastructure constraints, and past practices. It also examined how recent statutory reforms shifted authority away from local jurisdictions toward state oversight and enforcement, reshaping the governance methodology and altering both the practical and legal responsibilities of cities. Within this context, this report does not question whether cities must comply with state housing law-they must-but rather this report's objective is to assist Orange County jurisdictions and the public in understanding the framework within which they operate and enhance the possibility of good planning practices and design . During interviews, city officials and builders described to the OCGJ the benefits of citizen engagement, proactive and early coordination on planning, realistic site inventories, and timely engagement with state agencies to avoid punitive actions . Public communication and civic education is essential. Several Orange County cities reported undertaking efforts to engage residents and explain how the Housing Mandates affect local decision-making authority, including reductions in traditional zoning discretion. Transparent public outreach was identified as an important practice for maintaining community trust and managing expectations in an era of constrained local control. Through interviews, document review, site observations , and comparative analysis, several key themes emerged and are expanded on below : 11 Statewid e Housing l:1ru1 12 Californ ia Leg isl ative Analyst's Ottice -Cal ifornia Housing Page 12 of 67 Ora nge County Gra nd Jury 2 0 25-2 026 123 California State Housing Mandates • Environmental Context and CEQA • RHNA Process • RHNA Challenges • Penalties of Not Having an Approved HCA Housing Element • Penalties for Not meeting Approved Housing Plan • Feasibility of Housing Mandate in Orange County • One Size Does Not Fit All • California and OC Population Trends • 6th Cycle Housing Allocations in OC • City Challenges • 7th Cycle Concerns Environmental Context and CEQA In 1970, California enacted the California Environmental Quality Act (CEQA) with broad legislative support. These are the broad body of environment laws that attempt to protect California's environment13. Its core purpose is to ensure that state and local government agencies identify and publicly disclose the environmental impacts of proposed projects before approving them.14 Importantly, CEQA does not prohibit development; it ensures development is done responsibly, with environmental protections, public notice, and accountability. It has played a key role in shaping California's environmental standards for over five decades . Yet recent housing laws are chipping away at these hard-won environmental protections and may put our environment at risk. Over time, the California Legislature has adopted amendments intended to streamline housing projects. Several interviewees asserted that recent statutes-including A 130 and SB131-have the effect of narrowing CEQA's environmental review for qualifying housing projects by expanding ministerial or exempt pathways 15. Before CEQA and the Federal Clean Air Act, Southern California experienced severe air pollution, with the region enduring over 200 days each year of unhealthy ozone levels.16 In the 1970s, this led to frequent smog alerts and restrictions on outdoor activity for vulnerable residents 17. Longtime residents recall this period as one when smog was so persistent it regularly obscured visibility and affected daily life. Today, air quality in Southern California is dramatically improved, with far fewer unhealthy-air days due to decades of CEQA 13 PPIC Statewide Survey: Ca liforn ians a nd th e En viro nment - Pub lic Policy In stitute of Ca liforn ia 14 South Coas t A ir Quality Ma nage me nt District -CEQA 15 Ca liforni a Lawmakers App rov e Ma jor Ove rh a ul of Lan d mark Env ironm enta l Law I KQED 16 How Los A ngeles Bega n t o Put its Smoggy Days Behind I Hi sto ry & Soc iety I P BS SoCa l 17 Los A ngeles Hist orical Air Qua lity A nalys is: AQ I, PM , CO , S02, N02 , 03 Ora nge County Grand Ju ry 2025-2026 Pa ge 13 of 67 124 California State Housing Mandates measures that have collectively transformed the air basin and made local conditions significantly cleaner and healthier than during the smog-filled 1970's.18 A smoggy aerial view of downtown Los Angeles in January 1975. Polling in California consistently shows strong public support for environmental protection, though some surveys also indicate support for regulatory changes aimed at increasing housing production and lowering costs.19 Recent laws have made it simpler to construct housing by scaling back environmental controls.20 While this may accelerate development, it also threatens to weaken important environmental protections that California has relied on for decades . And importantly, there is no guarantee that these streamlined projects will provide affordable homes or meaningfully improve the housing crisis. 18 How Los An ge les Began to Put it s Smoggy Days Be hin d l History & Society l PB S SoCa l 19 PP IC S tatew id e Survey : Ca lifo rni ans a nd the Enviro nm en t -Pub lic P olicy I nstitu te of Cal iforni a 20 In Ca lifo rni a, statewide hous in g reform s brush agai nst local resistan ce l Brook ings Page 14 of 67 Orange County Gra nd Jury 2025 -20 26 125 California State Housing Mandates Regional Housing Needs Assessment Process RHNA is the State mandated process that determines the number of new housing units across various income levels that each city and county must plan for each 8-year cycle.21 It requires local governments to zone adequate land to meet projected regional housing needs.22 RHNA is implemented through the HCD whose mission statement emphasizes safe, affordable homes and sustainable communities.23 The RHNA process begins with HCD's review of household growth projections to estimate future housing needs by region. The California Department of Finance shares demographic projections with regional planning bodies known as Councils of Governments (COGs). These projections form the basis for RHNA determinations among California regions, and each COG then develops suballocations for counties and cities within its jurisdiction. Each city is required to update a Housing Element as part of its General Plan, describing objectives, programs, and housing sites consistent with RHNA goals. In recent years, the California Legislature has enacted statutes expanding HCD's authority in reviewing and enforcing RHNA related plans .2 4 SCAG is the largest COG in the State which includes Imperial, Los Angeles, Orange , Riverside, San Bernardino, and Ventura Counties. SCAG represents 197 jurisdictions across more than 38,000 square miles. SCAG develops RHNA allocations for its member jurisdictions and also engages at the state level on issues relevant to regional planning, including housing legislation.25 OCCOG, established as a joint power's agency in 1996, serves as a representative of Orange County to SCAG on RHNA planning (and other issues , i.e ., transportation). The organization emphasizes collaboration, transparency, and consistent advocacy to ensure Orange County's interests are effectively represented in regional planning, areas where the OCGJ has identified deficiencies. 26 OCCOG's charter describes it as a voluntary advisory association of local governments seeking sub regional and regional planning, coordination, and technical assistance on issues of mutual concern. OCCOG has an Executive Director and minimal staff. A member of the Orange County Board of Supervisors serves on the OCCOG Board and is the SCAG representative for the County of Orange.27 21 Ca lifornia Housing El ement Law Exp lained -Lega l Clarity 22 Th e Ca lifo rn ia State of Real Estate -Realto r.com Economi c Resea rc h 23 W e lcome to HCD! I Ca li forni a Depa rtm e nt of Ho using and Co mmun ity Dev e lop ment 24 En fo rceme nt Auth o rity I Ca li fo rni a Departm ent of Ho usin g and Co mmunity Dev elopme nt 25 Ab out us I So uth e rn Ca li forni a Associat ion of Gove rn me nt s 26 Ora nge Co un ty Co un cil of Gove rnme nt s 27 Ora nge Co un ty Co un ci l of Go vern me nts Ora nge County G ra nd Ju ry 2025-2026 Pa ge 15 of 67 126 California State Housing Mandates RHNA PROCESS Callfornla Department of Housing and Community Development (HCD) Estab lished In 196 5 lmperlal county Units: 15,993 Pop: 186 .5 K Reg ional Housing Nee ds Assess ment (RHNA) -Establ is hed in 1969 6., Cycle (202 1 to 2029) Southern CA Association of Governments (SCAG) (Representing counties to HCD) Los Angeles County Units: 812 ,060 Poo: 9 .76 mil Orange County Units: 183,861 Pop: 3.17 m11 Orange County Council of Governments (OCCOG) (Joint Power Authority with cities & county of orange) Riverside county Un its: 167,351 Poo: 2.53 mil San Bernadlno County Units: 138,110 Pop : 2 .2 1 mil ~- 34 cities & unincorporated area In OC I \ I I ------ Ventura county Units: 24,452 Pop: 835.43 K SCAG adopted its 6th Cycle housing allocation plan for the period of October 2021 through October 2029 . The plan assigns 1,341,827 additional housing units across the SCAG region-which includes most of Southern California-and distributes those units among cities and unincorporated areas, including those in Orange County.2 8 Stakeholders reported that the 6 th Cycle methodology resulted in a significant housing unit increase compared with the 5th Cycle allocation to SCAG of 411,953 units; representing approximately a 300% increase. The dramatic increase prompted the municipalities to request reviews and app eals of their assigned housing requirements . In response, HCD cited multiple reasons for the regional increases including unit overcrowding, affordability indicators , the ongoing effects of previously unbuilt housing units during the 2008 recession and the statutory adjustment factors under California Government Code § 65584.01 (statutory formula)29 28 So ut hern Ca liforn ia COG Regional Ho usin g Need Determina tion 29 So uth ern Ca lifornia COG Regional Ho usin g Need Determination Page 16 of 6 7 Oran ge Co unty Gra nd Jury 20 25-2 0 26 127 California State Housing Mandates Summarized are the five objectives that the COGs (i.e. SCAG) must further in their allocation methodology (Gov. Code§ 65584(d)):30 • Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, resulting in allocations for low and very low-income households, and providing for extremely low and acutely low-income allocations within the range prescribed by statute • Promoting infill development and socioeconomic equity, protecting environmental and agricultural resources, encouraging efficient development patterns, and achieving greenhouse gas reduction targets pursuant to Government Code section 65080. • Improving the intraregional relationship between jobs and housing, including balance between low wage jobs and housing affordable to low wage workers. • Allocating a lower proportion of housing need to an income category where a jurisdiction already has a disproportionately high share of households in that category relative to the countywide distribution . • Affirmatively furthering fair housing. These objectives are intended to support more economically diverse communities by assigning housing to high resource, job rich areas and by encouraging infill development while protecting environmental resources (CEQA).31 RHNA assigns targets to each jurisdiction by income category. For the 6th Cycle, the four income categories are: Very Low($ 50% of county median income), Low (50-80%), Moderate (80-120%), and Above Moderate(~ 120%)32. Through HCD and RHNA, California instructs and enforces compliance with specific housing targets . Regional Housing Needs Analysis Challenges The cities' leadership in Orange County offered multiple critiques of RHNA, including: (1) allocation methodology at SCAG does not reflect local housing need, (2) concerns of fairness in allocation across jurisdictions, (3) the appeal process to SCAG by local governments were consistently denied , and (4) assigned housing goals do not consistently translate into actual permitting, especially for lower income households. 33 HCD has stated that RHNA goals should not be interpreted as a production forecast but 30 Ca lifornia Department of Housing and Commun ity Developme nt I 31 The 5 Statutory Objectives of th e RH NA Meth odo logy 32 State Hous in g Law Program l Cali forn ia Depa rtm ent of Housi ng a nd Commun it y Develop me nt 3 3 Best Practices for A ll ocating & Eva luating RHNA Page 17 of 67 Orange County Grand Jury 2025-2026 128 California State Housing Mandates as a planning objective.34 Even with this planning objective, Orange County jurisdictions reported significant operational and fiscal challenges associated with implementation . Jurisdictions described resource constraints that affect their ability to implement the Housing Mandates consistent with legislative intent, including staffing limitations, the need for specialized consultant support, and budget constraints . Several cities characterized RHNA determination and compliance as complex and costly. Some cities reported spending hundreds of thousands of dollars (sometimes reaching close to $1,000,000) to meet the reporting mandate . Taxpayer money spent on planning does not directly result in the construction of housing units . Interviewees also reported that SCAG's approved methodology is complex and difficult for elected officials to communicate their housing allocation and ultimate Housing Element to their constituents. HCD and SCAG should take steps to improve the RHNA processes, including enhancing communication transpare ncy and simpl ifying data driven methodologies. Additionally, recognizing the compliance costs to taxpayers cannot be left unaddressed eve n as the 7th Cycle planning is currently unde rway. In October 2021 , th e California State Joint L egislative Audit Committee approved an emergency audit of HCD's regional dete rmination process, citing limite d public visibility of calculation methods and a need for independent review. 35 Further, the audit id e ntified errors in ce rtain data calculations and raised concerns36 . Th e Californ ia State Auditor subsequently issued findings that criticized aspects of HCD's methodology indicating potential inflation of requirements by a substantial number of housing units.3 7 Some of the cited errors included the use of very outdated and inaccurate vacancy factor rates 3 8 . One report even s ugge sts base information used was from the 1980's 39 . Others reported that HCD relied on population projections that differed from California Department of Fi nance forecasts, which generally show re latively modest long-term growth , and instead used assumptions that resulted in significantly higher projected housing needs .40 HCD's response, to the California State Auditor, and on their website, acknowl edged there was room for improvement and addressed the allocation critic isms in very general terms but did not mention that the numbers had been or would be corrected .41 34 N ew -Pathways -to -Enco urage-Housinq -Produ ction-E valu at in g-Ca liforni as-Rece nt -Ho usin g-Legi slation ­ Apri l-2023-F in a l.pdf 35 Ca liforni a Aud itor Report 202 1-125 36 Ca liforni a Audit or Rep ort 202 1-125 37 More Homes, Ha rd ly Any Po pulati on G rowth-So Why Is Ca lifo rni a Sti ll So Expe nsive? 38 CA Aud itor Bas hes Stat e's Mand ated Hou sing N um bers. Say s Process Is Flaw ed . Lac ks Ove rsig ht 39 CA Audi tor Bas hes Stat e's Mandated Ho usin g Num bers, Sa y s Process Is Flaw ed . Lacks Ove rsight 4° Co urt : 'Reg iona l Hou sing Need' Determinatio ns Are n't Judi cia lly Rev iew a ble -Davis Vanguard 41 Ca liforni a State Auditor -Repo rt 202 1-125 Recomm endatio n 3 Responses Page 18 o f 6 7 Ora n ge C ounty Gra nd Jury 20 25-20 26 129 California State Housing Mandates Separately, in June 2021, OCCOG, on behalf of the Orange County cities, filed a judicial challenge to HCD's regional housing determination, arguing that HCD failed to follow statutory requirements in developing the RHNA allocation.42 The trial court dismissed the petition in November 2021, and the Second District Court of Appeal affirmed that dismissal in July 2023, holding that neither OCCOG nor its member cities could challenge HCD's methodology.43 On August 24 , 2023, the OCCOG Board authorized counsel to petition the California Supreme Court for review, but the Court denied the petition on October 11, 2023, effectively ending OCCOG's legal challenge.44 During the 6 th Cycle process, SCAG received 48 appeals from cities challenging their housing allocation within their 45-day appeal period. After SCAGs review, they quickly denied 47 of them.45 This demonstrates limited jurisdictional influence over the allocation and appeal process. This series of rulings confirms that HCD's statutory authority has been upheld by the courts, and that any changes sought by local jurisdictions may be addressed better through the legislative process rather than litigation . Penalties for Not Having an HCD-Approved Hous ing Element A city that fails to obtain certification of its Housing Element from the HCD is considered out of compliance with state Housing Element Law and becomes subject to a range of escalating enforcement actions.46 HCD's Housing Accountability Unit (HAU) has authority to initiate enforcement, including referral to the California Attorney General for legal action when a jurisdiction does not meet statutory planning requirements. 47 When a city is out of compliance, it can be exposed to severe statutory penalties, such as lawsuits by the Attorney General or outside entities, court-imposed fines ranging from $10 ,000 to $600,000 per month, and court orders that may mandate project approvals, require rezoning, suspend a city's authority to issue building permits, or even strip the city council of land-use authority until compliance is achieved.48 The most concerning and widely known consequence of noncompliance is the Builder's Remedy, which restricts a city's ability to deny qualifying housing projects even when they conflict with the city's General Plan or zoning rules.49 Under this provision, developers may propose larger, denser projects that bypass local zoning controls if at least 20% of the units are affordable to low-income households or if the project is 100% 42 OCCOG Press Rel ease H CD 43 O range C nty. Co uncil of Gov't s. v. Velasquez -vl ex Uni ted States 44 O range Co unty Co un cil of Gove rn me nt s 45 Orange Co unty Cou nci l of Gove rn me nts 46 Ana lys is Fin ds Davis Not on Track to Meet Housing Req ui reme nts w ith out Approval of Two Vote r Projects -Dav is Vang uard 474 7 A nalysis Fin ds Davis Not o n Track to Mee t Hou si ng R eq ui reme nt s w ithout Approva l of Two Voter Pro jects -Dav is Va ng uard 48 Ho usin g Ope n Data Too ls I Ca lifo rni a Departm en t of Housing and Co mmuni ty Developme nt 49 "Builder's Remedy" Reform Bill Approved by Gove rn or Newso m I A ll en Matkin s Page 19 of 67 Oran ge County Gra nd Ju ry 202 5-202 6 130 California State Housing Mandates moderate-income.5° Cities without a compliant Housing Element lose their ability to regulate these projects through their typical zoning constraints unless they can demonstrate specific, adverse health or safety impacts . 51 Additional consequences include loss of access to key state funding sources and being placed on a shorter four-year Housing Element update cycle rather than the standard eight-year schedule.52 As of this writing, some Orange County cities-such as Huntington Beach and Seal Beach -have not yet obtained certification of their Housing Elements for the 6th Cycle or have been subject to enforcement actions related to noncompliance, while others , such as Costa Mesa, have only achieved compliance after delays and state intervention.53 Penalties for Not Meeting Housing-Plan Construction Goals While RHNA production targets are planning requirements, not actual construction mandates -cities may face meaningful consequences if they fail to implement the programs and rezoning commitments included in their certified Housing Elements . HCD's HAU monitors compliance with both Housing Element commitments and state housing laws, and violations may prompt enforcement letters, monitoring actions, or legal referrals to the Attorney General.54 Courts have shown a willingness to override local discretion when a city's failure to implement its Housing Element prevents the jurisdiction from accommodating its assigned RHNA allocation.5 5 In some cases, courts may mandate rezoning, invalidate local development restrictions, or require approval of specific projects to ensure that adequate housing capacity is created. 56 Feasibility of Housing Mandate in Orange County The feasibility of California's Housing Mandates in Orange County raises significant practical concerns . HCD, during the 6th Cycle, has allocated 183,161 housing units to Orange County to be constructed by 2029 with 30% being considered 'affordable'. However, according to the US Census Bureau, Orange County is only producing an average of 5,000 units a year over the past 5 years.5 7 Clearly this is a dilemma for the County. While it is relatively easy for the California Legislature to pass ambitious housing laws, the actual construction of these units is far more challenging. The Housing Mandates may be well -intentioned but translating them into real-world development is complex, due to constraints in land availability and costs, infrastructure 50 Bui lder's Remedy Primer 5 1 The Bu ilder's Remedy a nd Housing El eme nts 52 Ho us ing Eleme nts I Ca liforn ia Depa rtm ent of Ho usi ng a nd Co mmun ity Deve lopme nt 53 A ppea ls Co urt Ord e rs Huntin gton Beac h to Com ply with State Ho usi ng Law -Davi s Vang ua rd 54 Enforce me nt Process I Ca liforni a Depa rtm ent of Ho using a nd Community Deve lopme nt 55 A ppea ls Co urt Ord ers Hunt in gto n Beac h to Com ply wit h State Ho usin g Law -Dav is Vangua rd 56 Appea ls Co urt Ord e rs Hunt in gto n Beac h to Com ply with State Ho usin g Law -Da vi s Va ngua rd 57 Index of /prog ram s-s urveys/popest/tab les Page 20 o f 67 Orange County Gra nd Jury 20 25-2 026 131 California State Housing Manda tes capacity, high construction and labor costs, community acceptance, and capital formation. Capital formation for housing development in Orange County faces significant challenges. The cost of capital remains high, and the long timeline required to entitle, build, and eventually generate revenue increases financial risk for developers. Interest-rate volatility further complicates financing, affecting both equity investment and construction loan terms. At the same time, affordable housing projects often struggle to qualify for limited government subsidies, leaving many developments financially infeasible . These pressures are intensified in Orange County, which has some of the highest land and construction costs in California, making lower-income housing especially difficult to deliver without substantial public support. 58 59 60 61 Most parts of Orange County are already built out, leaving limited land available for new development. Substantial portions of the remaining undeveloped areas are further constrained by coastal regulations, floodplains, wildfire-prone zones, steep hillsides , protected open space, and other environmentally sensitive lands . These physical and regulatory barriers significantly reduce the amount of land that can realistically be developed . At the same time, the County faces substantial infrastructure limitations ­ including constraints on water and sewer systems, road capacity and traffic circulation, parking availability, schools , parks and recreation space, transit corridors, and even utilities such as electricity and natural gas . Taken together, these constraints sharply limit how much additional housing can be accommodated, even when zoning or Housing Mandates call for higher densities. High construction costs remain a major obstacle to new housing production, driven by escalating prices for essential building materials such as lumber, steel, concrete, and electrical components. Persistent labor shortages across skilled trades further compound these costs, as limited labor supply leads to higher wages and project delays . Appliance costs have also risen significantly, especially for energy-efficient or higher-end models now commonly required by building codes or market expectations. Additionally, the desired level of luxury or finish, such as premium flooring , countertops , fixtures, and community amenities, can substantially increase overall project budgets, making even modest hous ing developments expensive to deliver. Reports indicate it cost approximately $500,000 to $800,000 to build a one-bedroom low-income rental unit in Orange County. Low Income units require rental subsidies. 58 Turn er Ce n ter UC Be rk eley Developme nt M ath 59 Interest Rates Impact Construction Proj ect Fundin g 60 CHP State Hous ing Nee ds Report 6 1 Th e High Cos t of Produc in g Mu lt ifam ily Hous in g in Cali forn ia : Ev idence a nd Po li cy Reco mm end ations I RAND Page 21 of 67 Orange County Grand Jury 2025-2026 132 California State Housing Mandates With declining federal, state, and local funding subsidies, it is difficult to build affordable housing. Developer interest therefore is focused on market rate housing production. In short, Housing Mandates are legally binding, yet remain extraordinarily difficult for many cities to achieve . Wl:me While RHNA serves a key role as a planning tool, requiring cities to zone for additional housing and align local policies with statewide objectives, meeting the full scale of assigned housing targets, especially for lower-income households, is often unrealistic without sustained public funding, expanded infrastructure, and ongoing State support. In practice, the Housing Mandates alone do not produce homes. Achieving HCD/SCAG goals in Orange County ultimately depends on market-responsive policies, and complementary funding strategies. It is not simply higher numerical requirements or punitive measures. In practice , Housing Mandates alone do not build homes . One Size Does Not Fit All California's statewide Housing Mandates are intended to address a persistent and perceived shortage of housing.62 However, the OCGJ found that the uniform statutory framework governing the RHNA process can function as a blunt instrument when applied across jurisdictions with widely differing conditions. City leadership consistently noted that a one-size-fits-all approach may not fully account for the unique character, environmental, infrastructural, economic, demographic, and geographic circumstances facing individual communities. Several stakeholders noted that the RHNA process does not adequately differentiate among jurisdictions with varying levels of infrastructure capacity, longstanding physical or environmental constraints , or distinct development patterns. In particular, it fails to account for older, largely built-out cities-such as Garden Grove, Westminster, La Habra, and Fountain Valley, where available land is minimal and new housing can occur primarily through infill development. In these contexts, construction is typically more complex and costly, further challenging feasibility. As a result, some local governments face disproportionate burdens in accommodating housing allocations that do not fully reflect on-the-ground constraints and local conditions. The OCGJ notes that perspectives on this issue varied considerably. Interviewees from fast-growing or infrastructure-rich areas were more likely to support uniform standards, arguing that consistent requirements prevent jurisdictions from avoiding their fair share of housing obligations. Others expressed the view that Housing Mandates are necessary to overcome decades of underproduction and local resistance to growth . 62 Cal ifornia Department of Housing and Community Deve lopment J Ca lifornia Department of Ho usi ng and Com munity Deve lopme nt Pa ge 2 2 of 67 Ora nge County Gra nd Jury 2025-20 26 133 California State Housing Mandates Ultimately, comments on the adequacy and fairness of California's uniform approach depended heavily on local context and a jurisdiction's capacity to absorb additional housing. 11111111111111111111111111111111111111111111~ : Hou sing Units from RHNA Allocation and City Plan (Cycle 6th) ■ I 60000 ■ ■ 50000 ■ ~ ■ C: ■ :> 40000 ' ■ C, C ■ (I) :, 30000 ■ 0 ■ l'. 20000 ■ ■ ■ 10000 I 0 ■ RHNA All ocation ■C ity Plan • -- ■ • • • • • • • • • ■ • • • ■ ■ MJ lf"li SA Oran CM MV BP NB Tu1t YL UJ LH FV Plac C11ir Brea RSM SJC DP SB LB LP I ■ ■ RHN,\/.Jlocation 1745323610 3137 3936 11760 2217 8919 4845 6782 24 15 1207 804 4839 4374 3936 2365 680 1054 530 1243 3.9-1 802 1 ,c~yPlan 27847570004500 5168170002447 104098 174 8138 2497 1922 11232 5168 4398 4320 133 11 704 1763 728 1773 788 20.11 I ■ ■ ' • ■ Cities • •••••••••••••••••••••••••••••••••••••••••••••• Data source: Cities' responses to the 2526 Grand Jury's survey California and Orange County Population Trends Over the past three decades, California has undergone a profound demographic shift. After more than a century of rapid population expansion (growing from under 20 million in 1970 to nearly 40 million by 2020) the State's growth has slowed dramatically, and in recent years has turned negative.63 According to the Public Policy Institute of California, California lost 322,000 residents between July 2020 and July 2022 due largely to emigration, declining births, and reduced immigration.64 And although modest growth resumed between 2022 and 2025, the overall trend remains flat and well below historical norms. As previously noted, this validates the California State Auditor's criticism of HCD , and its projections based on population. 63 CSUF -Center for Demographic Research 64 California 's Populat ion -Public Policy Institu te of Ca li forn ia Page 23 of 67 O range Cou nty Gra nd Jury 2 025-2 026 134 California State Housing Mandates By Jonat h an Lansn•r and Jeff G oertzen I SOUTH ERN CALIFORNIA NEW S GROUP Comings and goings Hc,r dft tnf' StdU:.., ;., th Uw-l irt-,~t , •t rr P,J.tt>cn rna4 _,y.., LJ f orr J ill X •ll. Tt:41:i. &<>l I~ 'lli. c.l net Cul f ,.·. f,cmC.. fO<llJ r ~ Go'4JM ~ale·~ 1.vr;,-•-;1,.. r 11'1.f o .~ \-..clS frc,nl _., lo It • , 31,n, Outbound Source Orange County Register 6 5 Inbound Historically, one of California's fastest-growing regions, Orange County, exhibits similar trajectori e s -population stagnation and decline. The U.S . Census Bureau has documented recent population de creases, noting that Orange County's long-standing growth pattern began to reverse in th e early 2020's due in part, to an aging population, and reduced international migration and increased outm igration.66 These trends challenge long -held assumptions about continuous growth in Orange County and suggest that future planning should incorporate demographic stabilization rather than expansion . Despite these emerging realities, population proj ections used during the 5th Cycl e (2021 -2029) relied on pre -pandemic models that assumed continued growth.67 HCD's 5 th Cycle regional determination began with population forecasts from the Department of Finance and applied upward adjustments for overcrowding, cost burden, and vacancy­ factors that significantly inflated the region's housing need calculation . However, by 2020-2025, many of these underlying drivers shifted in the opposite di rection as 65 l nfog rap hic: A re peop le lea vin g Ca liforni a? Here's wh at th e num be rs show us -O ra nge Co unty Reg ister 66 l nfog rap hi c: Are peo ple leavin g Ca liforni a? Here's w hat th e numbe rs show us -Ora nge Co unty Reg ister 67 Presentation: Overview of Reg iona l Growt h Forecasti ng. Modeling Task Force May 25, 2022 Meet ing Page 24 of 67 Orange County Grand Jury 2025-2026 135 California State Housing Mandates California entered a period of population decline, raising questions about the accuracy of the assumptions embedded in the 5th Cycle projections. SCAG has acknowledged concerns from stakeholders regarding the appropriateness of the population and household growth assumptions used during the 5th Cycle and has initiated discussions with HCD to reform the methodology.68 Looking ahead to the 7th Cycle, California's demographic outlook is markedly different from the 5th Cycle. The Department of Finance's newest long-range projections (2024 baseline) show significantly slower statewide and county-level growth through 2070, with some regions, including Orange County, projected to experience prolonged stagnation or decline .69 These updated projections, combined with post-2020 population losses, underscore the necessity for HCD and SCAG to recalibrate their methodologies so that the next RHNA Cycle reflects a more accurate and data-driven assessment of true housing need. Without incorporating the State's new demographic trajectory, RHNA risks overestimating future household growth and imposing planning obligations disconnected from both California's and Orange County's actual population reali t ies . •••••••••••••••••••••••••••••••••••••••••••••• ■ • ■ Orange County Cities Population In 2020 and 2025 ■ ■ ■ ■ 3.iOOOO ))0000 ' ■ 250000 ■ 5 ■ ~ NOOOO ■ - 2020 OC Population: 3,188,326 2026 OC PopulaUon: 3,176,427 OC Population Decline: 12,899 ■Ye ar 2 020 ■Ye ar 2025 • • ■ • • ■ • • ■ ■ [ 150000 / 0 ■ Q. 100000 / ■ ■ ■ 5000 0 0 11111111111111 ■■••-~ ■ ■ Ara I Irv SA Orai Cf1 t-1\' B? hB luit \L 111 I..H FY Pb: Cy~1 Brei I RS.~ S,C O? S8 LB LP ■ ■Ve.v2>n0 31 8 11 6'1CWl83100W<W'9112t 83 93n7 ~~o e.1796 !1!316 63'l ll 64318 52855 1 57 195 51ns ~314 ~37311.iC03 ~857 :<3!98 25349 2:;(.Q I 1511)3 ■ ■ • ■ ■VaYN25 3 11 773:l 1 £talJI S32$w9i ~t11)32l91 7~0 62(67 8200-I iK'26 65bl 7 ~,57 61202 ffiff,O 53~2 i&m 47000J~11 3>329 :<17JO moo 22i63 15110 ■ ■ • Cities ■ • •••••••••••••••••••••••••••••••••••••••••••••• Data source: Orange County Progress Repo,t 2025 Notes: This cha,t includes only cities, who responded to the 2526 Grand Jury's survey. 6 th Cycle (2021-2029) Housing Allocations in OC California's Housing Element Law requires every city and county to plan for its share of regional housing need. For the 5th Cycle (October 2021-October 2029), SCAG 68 Powe rPo int Tem plat e tor SCAG Pre senta t ions 69 Eroiec tions I Californi a Depa rtment of Fina nce Oran ge County Grand Jury 2025-2026 Page 25 of 67 136 California State Housing Mandates assigned the Orange County subregion a total of 183,861 housing units, allocated across four income categories: Very Low, Low, Moderate, and Above Modera te. 70 While RHNA establishes the minimum number of units each jurisdiction must plan for, this OCGJ finds that cities seeking to meaningfully expand affordable housing production must adopt local housing targets that exceed their RHNA assignment. This is largely because the cost of constructing deed-restricted affordable units-often approaching $700 ,000 per unit-is rarely economically feasible without substantial public subsidy, layered financing , and other creative development strategies. As a result, cities increasingly rely on density bonus incentives , allowing developers to build additional market-rate units in exchange for providing affordable units, to help close funding gaps and meet lower-income housing obligations. The RHNA process begins with the HCD determining the amount of housing needed for each region, including affordability levels, and continues with a regional agency (here, SCAG) dividing that need among counties and cities. SCAG's final 6th Cycle plan assigns Orange County jurisdictions a combined 183,861 total units for 2021 -2029.71 SCAG's allocation plan further distributes Orange County's total to each city (and to the County 's unincorporated area). The largest allocations go to major employment and population centers , with substantial totals assigned to, among others: City Irvine Garden Grove Anaheim Units 23,610 19,168 17,453 City Huntington Beach Costa Mesa OC Unincorporated Units 13,368 11,760 10,340 These totals reflect the regional policy judgment-guided by state objectives-that jurisdictions must plan for additional housing capacity across income categories. In summary, RHNA 6 th Cycle allocations establish minimum planning obligations , but they do not , by themselves, overcome the structural feasibility barriers that constrain low -income housing delivery. This higher target is justified by (1) the anticipated attrition between zoning capacity and constructed projects, and (2) the necessity of leveraging private development to be incentivized to build affordable housing in a market where restricted rents cannot reliably support new construction without layered public assistance. 70 Reg io na l Hou sing N ee ds Assessme nt I So uthern Ca lifo rni a A ssoc iati on of Gove rn me nts 71 Reg io na l Hou sing N eeds A ssessmen t I So uth ern Ca lifo rn ia A ssoc iati o n of Gove rnme nts Page 26 of 67 Orange County Gra nd Jury 2025-2026 137 California State Housing Mandates City Challenges California's increasingly prescriptive Housing Mandates have placed substantial pressure on local governments in Orange County, requiring cities to plan for significantly higher levels of housing capacity. The cumulative effect has been added local government costs, uncertainty in interpreting evolving state requirements, inequities among jurisdictions, and escalating tension between state directives and the longstanding expectation of local control over planning and zoning. While the State has articulated policy goals and methodology behind its Housing Mandates, the top-down framework often overlooks the essential role of local communities in electing officials to ensure that planning and zoning decisions reflect the values and priorities of the electorate-the very reason most cities incorporated in the first place. This disconnect has contributed to considerable tension, community frustration, and political instability in many Orange County cities, not to mention the constituents ' lack of confidence that their elected officials are representing their interests. To successfully meet the requirement of the Housing Mandates cities must file a Housing Element with HCD every eight years to meet the aggressive targets being mandated. Many local cities lack the internal expertise and staff time to draft such housing submissions and thus must hire costly external consultants to prepare appropriate legal documents. As previously noted, the costs to cities have been between $100,000 and over $1,000,000 for some of the larger cities. With 34 cities in Orange County and the County also required to provide a housing plan, the administrative costs are in the millions of dollars just to comply. With many local cities having budgetary challenges, this administrative burden is just another unfunded liability. These taxpayer dollars are spent to comply with the law and have no commensurate direct beneficial outcome for the community. In Orange County, the Housing Mandates have substantially narrowed local land use discretion while increasing administrative, legal, and compliance risks for cities . Although framed as a planning requirement, the Housing Mandates have expanded residential density and embedded enforceable state oversight into what were traditionally local planning functions. As a result, compliance and enforcement mechanisms have begun to reshape municipal governance and materially influenced developmental patterns across the county. The result of these impacts in Orange County includes but are not limited to the following: • Reduced local land-use authority • Administrative and staffing burdens • Financial expense • Infrastructure limitations Page 27 of 67 Ora nge County Gra nd Jury 2 025-2026 138 California State Housing Mandates • Increased legal exposure • Political and community conflict • Unfair RHNA housing allocations across the cities Each city in Orange County has had a variety of challenges based upon differences in geography, fiscal capacity, land availability, funding availability, development interest and conditions, local policy decisions and community responses. The impact of the Housing Mandates has had dramatic impacts and cannot be ignored . For example: Anaheim: As the largest (population) city in Orange County, Anaheim has a strong fiscal base, including significant tourist-based revenue, and has already permitted and constructed a large number of housing units especially in light of their massive OC Vibe residential , retail and entertainment district. This is not to say, however, that they do not have their challenges with developers pushing to increase density within Anaheim Hills and the City's concern of density and building into a designated high -fire risk area. Due to its population of over 300,000, unlike most Orange County cities, Anaheim does have access to state and federal dollars, to assist in meeting the affordable housing requirements . Costa Mesa: Costa Mesa is one of only three Orange County cities still without a compliant Housing Element. Its continued effort to defend local regulations on sober living homes-rules that HCD does not formally recognize -has already cost the city access to certain state low-income housing funding. The situation worsened when one of the City's largest developers withdrew all of his properties from Costa Mesa's Housing Element inventory, slashing projected housing capacity from roughly 17,000 units to the bare minimum of about 11,750 units needed to meet state requirements . 72 This leaves the City with virtually no buffer to achieve compliance. Fountain Valley: Fountain Valley is largely built out, with approximately 90% of its land already utilized. Limited available land and constrained financing capacity present major hurdles in Fountain Valley ever being able to meet the state requirements . Huntington Beach : Huntington Beach has adopted a totally different strategy to address the Housing Mandates. They have aggressively pursued litigation in an effort as a "charter city" to preserve local land-use authority. This approach has resulted in substantial legal costs and financial exposure for the City for noncompliance. The City's 72 Planning Commission Bo mbs hell : Ho using Elem ent Update Cri sis in Costa Mesa Page 28 of 67 Oran ge County Grand Jury 2 025-2026 139 California State Housing Mandates legal challenges have all been denied including a final appeal to the US Supreme Court.73 Consequences for non-compliance are pending. Irvine: Irvine's response to the Housing Mandates differs from other Orange County cities. Being very progressive with available land currently under development, and two major developers active, the master planned community of Irvine has substantial flexibility. They have submitted to the State committing to build 56,000 additional units even though their allocation is approximately 26,000 units, the highest in Orange County. The original vision of Irvine being a residential community with commercial and residential balance runs the risk of being seriously eroded with high density apartments being vigorously constructed. This suggests Irvine might ultimately be more of an urban versus suburban community in the future. Residents are starting to be concerned as to the impact on traffic, parks, and schools. Furthermore, the current City council's recent move to rezone past open space commitments has created voter activism and resistance. Newport Beach: Newport Beach has faced difficulty implementing the Housing Mandates due the concerns regarding community character, coastal constraints, and local values, contributing to resistance to higher density residential development. While elected officials worked hard at engaging and educating the community on the Housing Mandates, as development projects started to come on-line, major public resistance ensued. A recent ballot initiative was just approved to push back on the City's approved Housing Element. 74 Mission Viejo: In March 2026, hundreds of Mission Viejo residents rallied in opposition to a proposed expansion of the Vista Del Lago apartment complex off Marguerite Parkway. The developer's plan called for demolishing 68 existing units and replacing them with 418 new units, resulting in a net increase of 350 units, as well as constructing a new parking structure. The expansion would bring the total number of units on the 33-acre property to 958 units, dramatically increasing density in an area surrounded primarily by single-family homes. After hours of heated public testimony and debate, the City Council voted 3-2 to advance the project. A majority of councilmembers stated they felt they had no choice but to approve the development due to the Housing Mandates, which require cities to zone and plan for significantly higher housing densities regardless of local neighborhood opposition. 75 73 A tto rney Ge nera l Bonta Ce leb rates U.S. Supreme Court 's Denial of Huntin gton Beach's C ha ll enge to State Housin g Laws I State of Californ ia -Departme nt of Justice -Office of the Attorn ey General 74 Newpo rt Beach may dump state ma nd ate as resid ents p rep to vote on plan for far fewe r housing units I LAist 75 Editori al: Miss ion V iejo's need less a ngst over apa rtm e nts -Orange Co unty Reg iste r Page 29 of 67 Ora nge County Grand Jury 2025-2026 140 California State Housing Mandates San Juan Capistrano : Due to its historical significance and geographic characteristics, the City has been challenged to meet the Housing Mandates. It is a tale of two communities -residents of great wealth and a large lower socioeconomic population requiring the need for more affordable housing. To date, City leadership appear to have built partnerships with low-income developers to build projects that maintain the community's heritage and meet the needs of the City. As high -end development takes place, a "fee in lieu" is assessed that generates funds for affordable housing. Superb planning and design have led to across-the-board community support for well designed, low-income redevelopment projects completed or underway. Santa Ana: Santa Ana is already considered by HCDs' RHNA process to be a densely populated, lower socioeconomic community, and it has the lowest housing target in Orange County with only 3,137 units . Like Anaheim due to its population size, it has access to more federal and state housing dollars to meet its low-income housing compliance obligations. The County of Orange: The County also has a RHNA requirement for its unincorporated areas. The County struggled to obtain certification of its Housing Element in 2025; it required multiple revisions due to the nature of small pockets of unincorporated areas it serves. Its largest development area in South Orange County, Rancho Mission Viejo of over 6,000 acres was entitled by the County before the Housing Mandates became law -few were affordable units. In addition, the largest track of undeveloped land is owned by the Federal Government (Cleveland National Forest) and not available for development. The impacts of the Housing Mandates have disrupted governance and local control. In some communities it has created fierce resistance . The loss of local control impacts the traditions and norms within many Orange County cities . Community heritage, rightly or wrongly, is being seriously eroded . The one -size -fits -all Housing Mandates has serious repercussions economically and politically only now coming into focus for the voters of Orange County as the implementation goes forward. Community p olitical activis m h as in creased as housing proj ects mo ve fro m appro val to co n struction, but this engagement i s often narrowly focu sed on individ ual de velopmen ts ra th er th an broade r p olicy impacts. Cities sho uld tak e a m ore proactive ro le in engagi ng reside nts in a comp rehensive discussion about how RHNA implementation i s affecting ne ig h bor hoo d character, infrastru ctu re, and social cohesi on . In addition , loca l el ected offici al s ha ve a respo nsibility to c lea rly communica te ho w sta te-direc te d hou sing polic ies, o rigin a ting in Sacr am ento, shap e l oca l land -u se decisions and limit munic ip al discre tion. Page 30 of 67 Orange County Grand Jury 2025-2026 141 California State Housing Mandates 7th Cycle (2029-2037) Concerns The 7th Cycle of the RHNA planning process has already started, addressing the period from 2029-2037 . The OCGJ identified significant concerns related to transparency, data integrity, governance, and Orange County's ability to competitively represent itself within the broader SCAG region. These concerns stem from documented issues in the 5th Cycle, particularly the lack of clarity of the allocation methodology, the complexity of the decision-making structure, and inadequate procedural safeguards to ensure that Orange County's unique conditions are fully acknowledged. The 5th Cycle methodology relied on numerous questionable inputs-including projected population, transit accessibility, job growth, vacancy adjustments, cost burden, and subjective social equity factors-derived from HCD and SCAG's adopted methodology.76 These inputs were published but remained difficult for local jurisdictions to interpret due to their subjectivity, complexity and technical nature and the failure of HCD to clearly identify their methodology.77 Given these findings, Orange County cities face a recurring risk , because the statewide RHNA determination feeds directly into SCAG allocations, any methodological deficiencies at the state level immediately cascade into subregional planning and ultimately influence the allocations assigned to Orange County jurisdictions. Experiences from the 5th Cycle highlight several issues that continue to shape Orange County's concerns heading into the 7th Cycle. The previous allocation process was marked by complexity, questionable data, late-stage modifications, and an overall lack of transparency. For example, SCAG's 5th Cycle allocation was adopted in March 2021 and then modified only a few months later78, fueling confusion about how final numbers were determined. The process felt unfair to many local jurisdictions because the appeals window was extremely compressed, the methodology was difficult to replicate, and the relationship between data inputs-such as overcrowding, cost burden, or future transit accessibility-and final allocations was not easily understood. The appeals process was also futile and was not open to cities concerns. Governance also played a role. SCAG and OCCOG rely on a large network of committees, working groups, and advisory bodies, which ensures broad participation but diffuses responsibility. With so many entities involved, accountability for data accuracy, timely inputs, and interpretation of the methodology becomes fragmented, making it difficult for any single entity to ensure the process is both rigorous and transparent. 76 SCAG Final RHNA Methodology, March 5, 2020 77 Best Pr act ices fo r A lloca tin g & Evaluating R HNA 1-. 78 Reg io na l Ho using Need s Assessme nt l So uthe rn Ca lifo rni a Assoc iatio n of Gove rn me nts Pa ge 31 of 67 Orange County Gra nd Jury 2 025-2026 142 California State Housing Mandates The upcoming 7th Cycle is expected to be even more data-intensive.79 New state guidance calls for clearer and more prescriptive methodology factors, improved appeals procedures, new income categories, and stronger alignment with greenhouse -gas and transportation planning .80 Transit definitions are also being standardized statewide, meaning all Orange County Transportation Authority (OCTA) transit routes , frequencies, and hub locations must be fully validated and published early in the process. Without early coordination, the County risks being disadvantaged compared with regions that already have well-organized transit datasets. Transparency remains a central concern . Orange County jurisdictions need access to all datasets used to calculate their allocations , ranging from growth projections to transit accessibility metrics , and must be able to replicate the calculations that lead to their assigned numbers. The California State Auditor has previously flagged gaps in how HCD documented its factors, reinforcing the need for a system that jurisdictions can audit and verify. CONCLUSION "We shap e our buildings; th e rea fter th ey s hap e U S. II (Winston C/Jurchi/1) Housing Mandates and the RHNA allocation process are highly consequent ial for Orange County jurisdictions, particularly because the construction of low-income housing is rarely feasible without substantial subsidy. Interviewees consistently reported that funding streams to support deed-restricted housing remain limited, leaving cities responsible for planning large numbers of units that may never be financially viable without additional state or federal assistance. This gap between planning obligations and realistic development capacity has heightened local concern about the fairness and practicality of the current RHNA framework not to mention wasted tax dollars . Against this backdrop, a recurring theme in interviews was the need for stronger regional coordination. Per the Joint Powers Agreement , OCCOG members pay dues to support operations, based on a 2009 adopted formula tied partly to each city's share of the county population. However, dues have not been adjusted in many years, leading several stakeholders to question whether current funding levels adequately support OCCOG's ability to coordinate subregional planning, respond to SCAG, and represent Orange County interests on matters as significant as RHNA. SCAG likewise uses population factors in its own dues structure, meaning jurisdictions with growing populations carry greater financial responsibility. Stakeholders noted that the overall 79 Cal ifornia's Housing Future 2040: Th e Next Regional Housing Nee ds Alloca tion I Ca liforn ia Depart ment of Hou sin g and Com munity Pevelopm.enl. so Ca liforni a's Housing Future 2040: Th e Next Regional Housing_N_e__e_d_s_ Allocat ion I Cali forn ia Department of tio..Y.s.i.ng and com rn u n ily ...P..e.v.elo.p Page 32 of 67 Oran ge County Gra nd Jur y 2025 -2026 143 California State Housing Mandates resource base may still be insufficient for the level of technical engagement required. Many jurisdictions expressed that increased support for OCCOG, both financial and participatory, would improve transparency around RHNA inputs and allow for more robust review of the assumptions that drive housing allocations. The OCGJ believes that OCCOG is an underutilized regional asset that could play a significantly larger role in promoting equity, transparency, and public understanding of the RHNA process. Interviewees emphasized that consistent, proactive participation by city and county representatives in OCCOG and SCAG meetings is critical, especially early in the methodology-setting phase, when data inputs, assumptions, and distribution formulas are still in development. Without regular engagement, jurisdictions risk losing opportunities to influence decisions that later become binding obligations. Several interviewees suggested that cities consider enhancing their financial contributions so OCCOG can expand its analytical capacity, conduct independent research, and engage more effectively in SCAG's technical and policy committees and at the state level. As work begins on the 7th Cycle, the need for collaboration is more urgent than ever. Cities cannot afford to be passive observers. Even if cities cannot directly change the final numbers issued by HCD or SCAG, their active involvement is essential to ensuring that Orange County's unique circumstances are understood and represented. Meaningful engagement can also help jurisdictions align their local planning strategies, clarify shared concerns, and coordinate responses to proposed methodological changes before they become final. A more empowered and better-resourced OCCOG would strengthen Orange County's collective voice, improve regional planning outcomes, and ensure local governments are not navigating the California's housing requirements in isolation. Finally, the OCGJ notes that collaboration must extend beyond government agencies to the residents they serve. As Sacramento lawmakers continue to enact significant housing legislation , much of it with direct consequences for zoning, density, local control and neighborhood character development standards , the public must be informed and involved. Cities, working through OCCOG and SCAG, have an important role in educating residents about new laws, explaining their local impacts, and encouraging constituents to register their views with State Representatives . Improving public awareness not only strengthens transparency and trust but also ensures that community perspectives are included in shaping future housing policy. By working together, jurisdictions, regional agencies, and the public, Orange County can more effectively navigate the challenges of Housing Mandates and advocate for a clearer, more equitable, and more locally responsive RHNA process. Page 33 of 67 Orange Cou nty Gra nd Jury 202 5-202 6 144 California State Housing Mandates FINDINGS In accordance with California Penal Code §933 and §933.05, the 2025-2026 Orange County Grand Jury requires (or, as noted , requests) responses from each agency and city affected by the "Findings" presented in this section. Responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation "California Housing Mandates" the 2025-2026 Orange County Grand Jury has arrived at 22 findings as follows: F1 In recent years, the California Legislature has enacted an unusually large and burdensome volume of housing-related laws intended to strengthen compliance with State Housing Mandates. F2 Housing Mandates are implemented through a RHNA process that often lacks transparency and relies on complex methodologies that are difficult for local officials and the public to understand or meaningfully challenge . F3 OCCOG coordinates RHNA regional planning in partnership with the SCAG for Orange County. OCCOG lacks adequate influence with SCAG. F4 Meaningful participation by Orange County cities in both OCCOG and SCAG meetings is critical to ensuring that local perspectives are represented during the development and implementation of Housing Mandates policies. FS SCAG's 61h Cycle RHNA assigned Orange County a questionable total of 183,861 housing units for the 2021 -2029 planning period , with higher allocations concentrated in cities with major population and employment centers. F6 RHNA allocations are unrealistic and not attainable within the current planning cycle due to limited available land, built-out urban conditions, infrastructure constraints, environmental factors, and public health and safety requirements. F7 Residents in Orange County consistently express a desire for local planning decisions to reflect community priorities, including but not limited to neighborhood character, safety considerations , the environment and open-space preservation. F8 California's regulatory construction costs (i.e. permitting fees) present substantial challenges for private housing developers-particularly those delivering affordable units . Page 34 o f 67 Orange County Grand Jury 2025 -2026 145 California State Housing Mandates F9 The cost of constructing a single affordable housing unit in California typically ranges from approximately $500,000 to $800 ,000 per unit when fully complying with current state regulations . New low-income housing is generally not financially feasible without public subsidy. F10 Prior to their dissolution in 2012, redevelopment agencies served as a primary mechanism for cities and counties to finance affordable housing and related infrastructure . The loss of redevelopment has reduced cities' ability to support construction of affordable units. F11 Because public subsidy is limited and highly competitive, cities seeking to produce meaningful quantities of low-income housing must rely in part on private development incentives, often resulting in higher overall development densities and unit counts than the RHNA allocation. F12 The 6th Cycle RHNA methodology included numerous technical inputs published by SCAG and HCD; however, these inputs were highly complex and difficult for cities to interpret or independently verify. F13 The California State Auditor's 2022 review found significant deficiencies in HCD's regional determination process-including inadequate documentation, data-entry errors, and insufficient justification for key assumptions-raising concerns that similar issues may affect the 7th Cycle process. F14 OCCOG's current resources and organizational structure are insufficient to fully advocate for Orange County jurisdictions during RHNA methodology development, especially when compared with larger or more heavily resourced regional councils of governments that also influence SCAG. F15 Demands on HCD are anticipated to materially alter methodology for the 7th Cycle, but Orange County jurisdictions have not yet received clear guidance on how these allocations will be translated into SCAG policy or local impacts. F16 The reliance on transit accessibility as a major RHNA consideration requires high-quality, early-released datasets from OCTA; however, these datasets are not currently consolidated or formally adopted for use in the 7th Cycle methodology. F17 The large number of committees, subcommittees, and advisory groups involved in SCAG and OCCOG's RHNA processes promotes broad participation but diffuses accountability, making it difficult to determine who is responsible for specific analytic inputs or process decisions. Page 35 of 67 Orange County Grand Jury 2025-2026 146 California State Housing Mandates F18 The City of Huntington Beach has been unsuccessful in its attempts to contest Housing Mandates. To date, Huntington Beach lacks an approved General Plan Housing Element related to RHNAAllocation . F19 The City of Irvine has been progressive in submitting a housing plan that calls for twice the number of units mandated (56,000). However, this threatens the historical nature of a master plan community with substantial infrastructure challenges. F20 Cities and other stakeholders encounter difficulty explaining RHNA outcomes to elected officials and the public due to a lack of clear, consolidated documentation describing how allocation decisions are derived from the underlying data. F21 The absence of a clearly articulated and easily understandable description of the RHNA allocation algorithm contributes to perceptions that discretionary or political considerations may influence outcomes, even when allocations are made in compliance with state housing laws . F22 Improved transparency and communication regarding RHNA methodology would enhance public confidence in the process and reduce misunderstandings among member jurisdictions. RECOMMENDATIONS In accordance with California Penal Code §933 and §933.05, the 2025-2026 Orange County Grand Jury requires (or, as noted, requests) responses from each agency and city affected by the "Recommendations" presented in this section. Responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation described herein , the 2025-2026 Orange County Grand Jury makes the following 20 recommendations : R1 OCCOG should expand its technical-assistance and training programs, by September 30, 2026, to ensure that all Orange County jurisdictions understand RHNA methodology, statutory obligations, and the implications of noncompliance. (F1, F2, F3, F4) R2 OCCOG should coordinate a countywide review of sites identified in local Housing Elements, by December 31, 2026 , to evaluate whether each site meets state requirements for realistic capacity and development feasibility, supported by a standardized, version -controlled change log. (F3, F4) Page 36 of 67 Orange County Grand Jury 2025-2026 147 California State Housing Mandates R3 OCCOG should develop and publish a comprehensive RHNA Inputs Catalog, by April 30, 2027 , prior to drafting the 7 th Cycle methodology, documenting all datasets used, their sources, methodological assumptions, and a version-controlled record of changes . (F3 , F4) R4 OCCOG should create a public-facing RHNAAccountability Dashboard, by April 30, 2027, displaying deadlines, responsible agencies, dataset readiness, and upcoming SCAG decision points, to ensure transparency and timely action by jurisdictions. (F16) R5 OCCOG should request that SCAG and HCD, by December 31, 2026, provide written guidance explaining how HCD's recommendations will be applied in shaping the 7 th Cycle RHNA methodology so that jurisdictions can prepare proactively. (F16) RS OCCOG should convene a 7th Cycle Technical Working Group, by December 31, 2026, composed of planners, data analysts, and transit experts to pre-evaluate methodology scenarios and deliver unified, countywide recommendations to SCAG. (F3, F6, F15) R7 OCCOG, all Orange County cities and the County of Orange should reassess the current dues structure, by September 30 , 2026, to ensure that OCCOG has the resources necessary to effectively represent Orange County jurisdictions in SCAG processes, including RHNA methodology development and appeals. (F3, F15) R8 By December 31, 2026, the Orange County Board of Supervisors should partner with cities to evaluate countywide infrastructure capacity­ including water, wastewater, flood control, transportation, and public-safety systems-and develop a coordinated regional plan capable of supporting the level of housing growth required under state law. (F6) R9 By September 30, 2026, the Orange County Board of Supervisors should strengthen its engagement with OCCOG and increase staff support to develop a shared, countywide database of potential housing sites and key development-feasibility factors. (F15) R1 O By June 30, 2027, the Orange County Board of Supervisors should evaluate whether the County should pursue its own independent Metropolitan Planning Organization (MPO) des ignation for purposes of regional housing planning . (F5, F6, F7, F15) Page 37 of 67 Orange County Grand Jury 2025-2026 148 California State Housing Mandates R11 The County of Orange and each city should ensure consistent participation in SCAG and OCCOG committees by September 30, 2026 , including the Technical Advisory Committee (TAC), to strengthen regional representation during RH NA-methodology development. (F3, F4, F15) R12 The County of Orange and each city should designate a single technical representative, by September 30, 2026, along with an alternate, for all RHNA-related SCAG and OCCOG committees to ensure continuity of participation and eliminate gaps in representation across multiple decision-making bodies. (F4) R13 OCTA should provide an official, data-frozen countywide transit dataset (GTFS + GIS), by September 30, 2026, to meet OCCOG's analytical needs for 7 th Cycle RHNA planning. (F17) R14 By April 30, 2027, the County of Orange and each city should publish annual monitoring dashboards showing (a) entitlement pipeline conditions, (b) realistic site yield, (c) assembled funding sources for affordable units, and (d) conversion rates from planned capacity to issued permits and completed units, ensuring that County and city -determined capacity assumptions remain aligned with actual production. (F13) R15 By September 30, 2026, and ongoing, the County Board of Supervisors and all city councils should make a coordinated and sustained effort to educate their constituents about the RHNA process-its requirements, its impact on local planning and community character, and the role residents can play in shaping outcomes. Public education efforts should also include guidance on how community members can effectively engage with the California Legislature and advocate for more realistic , data-driven housing policies . (F1, F7) R16 By December 31, 2026, all cities should look to enhance their relationships with not-for-profit affordable housing developers to increase the opportunity to develop more affordable housing. (F8, F10, F12) R17 By September 1, 2026, the City of Huntington Beach should evaluate submitting an appropriate Housing Element to reduce potential exposure to HCD penalties. (F18) R18 By September 1, 2026, the City of Irvine should ascertain the level of community support for its housing element submission and its impact on the character of its master plan. (F19) Page 38 of 67 Orange County Grand Jury 2025-2026 149 California State Housing Mandates R19 By September 1, 2026 , SCAG should conduct a formal review of its RHNA allocation methodology and clearly document, in understandable language, the inputs, assumptions, weighting , and decision points used in the allocation algorithm . This documentation should be publicly released and designed to improve transparency, reduce perceptions of political influence, and enhance public understanding of how allocations are determined . (F21) R20 By September 1, 2026, SCAG should revise its RHNA appeals process to improve procedural transparency and responsiveness by clearly defining appeal criteria , documenting staff analyses and recommendations, providing written explanations for appeal decisions, and ensuring jurisdictions have meaningful opportunities to present and respond to staff findings . (F22) Page 39 of 67 Orange County Gra nd Jury 2025-2026 150 California State Housing Mandates RESPONSES CODE The following excerpts from California Penal Code provide the requirements for public agencies to respond to the Findings and Recommendations of this Grand Jury's report: Penal Code §933 (c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and every elected county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations . All these comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impaneled grand jury, where it shall be maintained for a minimum of five years. Penal Code §933.05. (a) For purposes of subdivision (b) of Section 933, as to each grand jury finding, the responding person or entity shall indicate one of the following : (1) The respondent agrees with the finding. (2) The respondent disagrees wholly or partially with the finding; in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) For purposes of subdivision (b) of Section 933, as to each grand jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future , with a timeframe for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of Pa ge 40 of 6 7 O ra nge Cou nty Gra nd Jury 20 25-20 26 151 California State Housing Mandates the public agency when applicable. This timeframe shall not exceed six months from the date of publication of the grand jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor. (c) However, if a finding or recommendation of the grand jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the board of supervisors shall respond if requested by the grand jury, but the response of the board of supervisors shall address only those budgetary or personnel matters over which it has some decision­ making authority The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. RESPONSES The Orange County Grand Jury requires (or, as noted, requests) the following responses: OCCOG Findings Recommendations County of Orange, Board of Supervisors Findings Recommendations OCTA Findings Recommendations SCAG Findings Recommendations City of Aliso Viejo Findings: Recommendations: City of Anaheim Findings: Recommendations: City of Brea Orange County Grand Jury 2025-2026 90 Day Response Required F3, F4, F5, F12, F13, F14, F15, F17 R1,R2,R3,R4,R5,R6,R7,R9,R11,R13 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8,R9,R10,R11,R12, R14,R15,R16 90 Day Response Required F16 R13 90 Day Response Required F3, F4, F5, F12, F13, F14, F15, F17, F20, F21, F22 RS, R11, R19, R20 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8,R9,R11,R12,R14,R15,R16 90 Day Response Required F1, F2, F4, F5, F6,F7, F8, F9, F10, F11, F12 R7,R8, R9,R11, R12, R14,R15, R16 90 Day Response Required Page 41 of 67 152 California State Housing Mandates Findings: Recommendations: City of Buena Park Findings: Recommendations: City of Costa Mesa Findings: Recommendations: City of Cypress Findings: Recommendations: City of Dana Point Findings: Recommendations: City of Fountain Valley Findings: Recommendations: City of Fullerton Findings: Recommendations: City of Garden Grove Findings: Recommendations: City of Huntington Beach Findings: Recommendations: City of Irvine Findings: Recommendations: City of La Habra Findings: Recommendations: City of La Palma Findings: Recommendations: Page 42 o f 67 F1, F2 , F4, F5, F6, F7,FB, F9, F10, F11, F12 R7,RB,R9,R11,R12,R14,R15,R16 90 Day Response Required F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7,RB,R9,R11,R12,R14,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7,RB, R9, R11, R12, R14, R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7,RB,R9,R11 ,R12,R14,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7,FB, F9, F10, F11, F12 R7, RB,R9,R11,R12,R14,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7, RB,R9, R11, R12, R14, R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7,RB,R9,R11,R12,R14,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6,F7,FB, F9, F10, F11, F12 R7,RB,R9,R11,R12,R14,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12, F1B R7, RB, R9, R11,R12, R14, R15,R16, R17 90 Day Response Required F1, F2, F4, F5, F6,F7, FB, F9, F10, F11, F12, F19 R7, RB,R9, R11 , R12,R14, R15,R16,R1B 90 Day Response Required F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7, RB, R9, R11, R12,R14, R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, FB, F9, F10, F11, F12 R7, RB,R9, R11, R12,R14, R15,R16 O range Cou n t y Grand Jur y 2 025-2026 153 City of Laguna Beach Findings: Recommendations: City of Laguna Hills Findings: Recommendations: City of Laguna Niguel Findings: Recommendations: City of Laguna Woods Findings: Recommendations: City of Lake Forest Findings: Recommendations: City of Los Alamitos Findings: Recommendations: City of Mission Viejo Findings : Recommendations: City of Newport Beach Findings: Recommendations: City of Orange Findings: Recommendations: City of Placentia Findings: Recommendations: California State Housing Mandates 90 Day Response Required F1, F2, F4, F5,F6, F7,F8, F9, F10, F11, F12 R7, R8, R9, R11 ,R12,R14, R15,R16 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8, R9,R11, R12,R14, R15, R16 90 Day Response Required F1, F2, F4, F5, F6,F7, F8, F9, F10, F11, F12 R7,R8, R9,R11, R12,R14, R15, R16 90 Day Response Required F1, F2, F4, F5, F6,F7,F8, F9, F10, F11, F12 R7,R8,R9,R11,R12,R14,R15,R16 90 Day Response Required F1, F2, F4, F5, F6,F7,F8, F9, F10, F11, F12 R7,R8,R9,R11, R12,R14,R15, R16 90 Day Response Requested F1, F2, F4, F5, F6, F7,F8, F9, F10, F11, F12 R7, R8, R9, R11,R12,R14,R15,R16 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8, R9,R11, R12,R14,R15, R16 90 Day Response Required F1, F2, F4, F5, F6,F7,F8, F9, F10, F11, F12 R7,R8, R9,R11,R12,R14, R15, R16 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8,R9,R11, R12,R14, R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8, R9,R11, R12,R14,R15, R16 City of Rancho Santa Margarita 90 Day Response Required Findings: F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 Recommendat ions: R7 , R8, R9, R11, R12, R14, R15, R16 Page 43 o f 67 Orange County Grand Jury 2025-2026 154 California State Housing Mandates City of San Clemente Findings: Recommendations: City of San Juan Capistrano Findings: Recommendations: City of Santa Ana Findings: Recommendations: City of Seal Beach Findings: Recommendations : City of Stanton Findings: Recommendations : City of Tustin Findings: Recommendations: City of Villa Park Findings: Recommendations: City of Westminster Findings: Recommendations: City of Yorba Linda Findings: Recommendations: Page 44 of 67 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8, R9,R11, R12,R14 ,R15, R16 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10 , F11, F12 R7, R8,R9, R11, R12, R14, R15, R16 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7, R8,R9, R11, R12, R14, R15, R16 90 Day Response Requested F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8,R9,R11,R12,R14,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6 , F7, F8, F9, F10, F11, F12 R7,R8 ,R9,R11,R12,R14,R15,R16 90 Day Response Required F1, F2, F4, F5, F6, F7, F8, F9, F10, F11, F12 R7,R8,R9,R11,R12,R14 ,R15,R16 90 Day Response Required F1, F2, F4, F5, F6 , F7, F8, F9, F10, F11, F12 R7,R8,R9,R11,R12,R14 ,R15,R16 90 Day Response Requested F1, F2, F4, F5, F6, F7 , F8, F9, F10 , F11, F12 R7, R8, R9,R11, R12,R14, R15 ,R16 90 Day Response Required F1, F2, F4, F5, F6, F7 ,F8, F9, F10 , F11 , F12 R7, R8, R9,R11, R12,R14, R15,R16 Ora n ge County Gra nd Jury 2025-2026 155 California State Housing Mandates GLOSSARY AND ACRONYMS ADU Builder's Remedy Charter City COG Deed-Restricted Deed-in-Lieu Density Bonus Incentives Equity Component Accessory Dwelling Unit (ADU) is a secondary, independent housing unit located on the same lot as a primary residence . ADUs are sometimes called granny flats, in-law units, casitas, or backyard homes. Builder's Remedy is a provision in California's Housing Accountability Act (HAA) that limits a city or county's ability to deny certain housing projects when the jurisdiction does not have a State-compliant Housing Element. Charter City is a city governed by its own locally adopted charter rather than solely by California general law. Under the California Constitution, charter cities have greater authority over municipal affairs , including land use and zoning. However, this authority may be limited when the State determines that a matter, such as housing, is of statewide concern and subject to state law. Council of Governments (COG) is a regional planning body made up of elected officials from cities and counties within a defined geographic area. Deed-Restricted refers to a property that is subject to legally recorded limitations or conditions placed on its use, occupancy, or resale. In the housing context, deed restrictions are commonly used to ensure long-term affordability by limiting resale pr ices, rental rates, or eligible occupants based on income thresholds for a specified period , often several decades or longer. Deed-in-Lieu (of foreclosure) is a voluntary transaction in which a property owner transfers ownership of a property to a lender to satisfy a mortgage debt and avoid foreclosure. While commonly used in the private lending context, the term may appear in discussions of property disposition, distressed assets, or redevelopment-related transactions. Density Bonus Incentives are benefitting that California law (primarily Government Code § 65915) provides to housing developers in exchange for including affordable housing units within a residential or mixed-use project. These incentives make it easier and financially feasible to build affordable housing by allowing developers flexibility beyond local zoning limits. Equity Component is the requirement that housing need to be allocated in a way that promotes socioeconomic equity, reduces Page 45 o f 67 Oran ge County Grand Jury 2025-2026 156 California State Housing Mandates Fee-in-Lieu Federal Clean Air Act GIS Grand Jury Green State GTFS General Plan HAU Pa ge 46 o f 67 segregation, and balances disproportionate household income distributions across jurisdictions. Fee-in-Lieu refers to a payment made as an alternative to fulfilling a low income housing requirements. Federal Clean Air Act (CAA) is the primary U.S. federal law that regulates air pollution to protect public health and the environment. It authorizes the federal government, principally the U.S. Environmental Protection Agency (EPA), to set and enforce standards that limit harmful air pollutants from industrial facilities, power plants, and motor vehicles. Geographic Information System (GIS) is a type of software and data system used to map, analyze, and visualize geographic information. Examples: ArcGIS, QGIS which integrates layers of spatial information such as: Parcels, Zoning maps, Transit lines (often imported from GTFS), Flood zones, Environmental constraints, Income and demographic data, RHNA site inventories. Grand Jury (GJ) is a legal body empowered to conduct official proceedings to investigate potential criminal conduct and determine whether criminal charges should be brought. Green State generally refers to a government or jurisdiction, often a U.S . state, that prioritizes environmental protection, sustainability policies, and climate-focused governance. The term is descriptive , not legal. General Transit Feed Specification (G T FS) is a standardized, machine-readable data format used to describe public transit systems, including Bus routes, Rail lines, Station and stop locations, Service schedules. In California, a city General Plan is a comprehensive, long -term policy document that serves as the legal and policy foundation for all local land-use and development decisions within a city. Adopted by the city council pursuant to California Government Code§ 65300 et seq., the General Plan expresses the community's vision for physical development and conservation over time and guides zoning, public investment, and regulatory actions. Housing Accountability Unit (HAU) is a specialized enforcement and oversight unit within the California Department of Housing and Community Development created to ensure local governments comply with state housing and homelessness laws and to hold Orange County Grand Jury 2025-2026 157 HCD Housing Element Law (65580-65589.11) Joint Powers Authority Layered Financing Ministerial approval MPO OCGJ OCTA RHNA California State Housing Mandates jurisdictions accountable for meeting their Husing Element commitments. Housing and Community Development (HCD) is California state agency responsible for housing policy, building standards, and the administration of affordable housing and community development programs . It operates under the California Business, Consumer Services and Housing Agency (BCSH). Housing Element Law is California's foundational land-use law requiring every city and county to plan for the housing needs of all economic segments of the community. It is part of each jurisdiction's General Plan and must be regularly updated on a state-mandated cycle. A Joint Powers Authority (JPA) is a legal structure used in California (and some other states) that allows two or more public agencies to jointly exercise their powers through a separate, shared entity. Layered Financing (sometimes called capital stacking) is a funding approach in which a project-most commonly a real estate or affordable housing development-is financed through multiple sources of capital, each with different requirements, risk levels , repayment terms, and priorities. Ministerial approvals are a type of land -use or development approval in which a government agency must issue the permit automatically once an application meets all the objective, pre-established standards. Because the approval is non-discretionary, officials do not exercise judgment or interpretation , hold public hearings, or evaluate subjective criteria such as neighborhood character or compatibility. Metropolitan Planning Organization (MPO) is a regional transportation-planning agency required by federal law in every urbanized area with 50 ,000 or more people. Orange County Grand Jury (OCGJ) refers 2025-2026 Orange County Grand Jury. Orange County Transportation Authority (OCTA) is the county transportation planning commission, responsible for funding and implementing transit and capital projects for a balanced and sustainable transportation system. Regional Housing Needs Allocations (RHNA) works with the California Department of Housing & Commun ity Development (HCD) to allocate each jurisdiction's share of required housing across income levels. Page 47 of 67 Orange County Grand Jury 2025-2026 158 California State Housing Mandates RTP State Housing Mandates scs Vacancy Factor Rates 5th Cycle, 6 th Cycle, 7 th Cycle Page 4 8 of 67 Regional Transportation Plans (RTP) are utilized to coordinate regional transportation, land-use planning, and climate -related planning (e .g., reducing vehicle miles traveled). Data , forecasts, and long-range planning . They provide demographic fo recasts , economic analyses, and collaborative regional policies. State Housing Mandates (Housing Mandates) are legal requirements specifically the Housing Element Law in California , obligating local governments (cities/counites) to adopt plans facilitating the construction of housing across all income levels. These mandates require compliance with Regional Housing Needs Allocation (RNHA) targets forcing localities to zone for rather than necessarily build . In California, a Sustainable Communities Strategy (SCS) is a regional land-use , housing, and transportation planning framework prepared by a Metropol itan Planning Organization as part of its Regional Transportation Plan . Required by Senate Bill 375 (2008), the SCS is designed to integrate transportation investments, housing patterns, and land-use policies in a way that reduces greenhouse gas emissions from passenger vehicles while supporting economic development and public health. Vacancy Factor Rates refer to the percentage of housing units within a defined geographic area that are assumed to be vacant at any given time . In state housing planning , vacancy rates are used as an analytical adjustment to account for normal turnover in the housing market and to ensure availability for new households . Assumed vacancy rates directly affect housing need calculations and can influence required housing production targets. The 5th , 6th , and 7th Cycles refer to sequential eight-year planning periods of the Regional Hous ing Needs Allocation (RHNA) process mandated by California housing law. • The 5th Cycle generally covered the period from 2013 to 2021 (with timing varying by region). • The 6th Cycle generally covers the period from 20 2 1 to 2029 and includes significantly higher housing allocations statewide. • The 7th Cycle will be th e next allocation period following the 6th Cycle and is expected to further shape long -term housing planning requ irements for cities and counties. Ea c h cycle establishes projected housing needs that jurisdictions must plan for through their Housing Elements . Ora nge County Gra nd Jury 2025-20 26 159 California State Housing Mandates BIBLIOGRAPHY ABAG. "The "Builder's Remedy" and Housing Elements". Association of Bay Area Governments -Technical Assistance for Local Planning Housing, accessed on May 14, 2026. 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South Coast Air Quality Management District, accessed on May 14, 2026. So uth Coast A ir Q ua lity Management Distr ict -CEQA Tilden, Michael S . "Regional Housing Needs Assessments". Auditor of the State of California, March 17, 2022. Report 2021-125 Pa ge 53 o f 67 Orange County Grand Jury 2025-2026 164 California State Housing Mandates The Editorial Board (2026, March 11 ). Editorial: Mission Viejo's needless angst over apartments. The Orange County Register, online. Ed it oria l: Mi ss ion Viejo's need less angs t ove r apartme nts -Ora nge Co unty Reg ister Trachtman, Samuel. "Fixing California's housing shortage requires new policy and new politics". BES/ -Berkeley Economy & Society Initiative, April 22, 2025. Fixing Ca li forn ia's h ou s in g s hortage requ ir es new po li cy a nd new po liti cs -Be rke ley Economy & Soc iety Initiative Uhler, Brian. "LAO Housing Publications". 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Nat io na l Low In co me Hou s ing Coa li ti on -La nd Use Restri ction s a nd Affordab le Hou s in g Page 54 of 67 O range Co unt y Gran d Ju ry 2025-2 0 26 165 California State Housing Mandates APPENDIX APPENDIX A: Major Housing Laws & What They Tried to Do 81 Surplus Land Act (1968: strengthened by AB 1486 in 2019) Problem addressed: Local agencies often disposed of valuable public land without prioritizing affordable housing . Solution: The Surplus Land Act requires local agencies to offer surplus sites to affordable housing developers first; AB 1486 (2019) expanded who must comply, added reporting, and created enforceable penalties. HCD now issues binding guidelines and may impose fines. Role: A siting tool that converts public land near jobs/transit into affordable housing at scale (HCD reports thousands of units proposed/approved under SLA). Housing Element Law & RHNA (1969: RHNA made mandatory by 1980 AB 2853: repeatedly strengthened) Problem addressed: Cities historically under-planned for growth or zoned exclusionary, constraining supply across income levels. Solution: Every city/county must adopt an 8-year Housing Element showing adequate, zoned sites to meet its RHNA allocation by income tier; HCD issues regional need determinations and certifies elements . Enforcement has tightened (HCD's Housing Accountability Unit; fines; referrals to the AG). Role: The spine of California housing policy-other laws (HAA, SB 35, SB 330, AFFH) enforce or operationalize these plans. Density Bonus Law (1979: expanded often, incl. AB 1287 in 2023) Problem addressed: Mixed-income projects often do not pencil without zoning flexibility. Solution: Grants extra units, incentives/waivers , and reduced parking in exchange for deed-restricted affordable homes; AB 1287 (2023) added a "stackable" bonus on top of the 50% base, enabling up to ~100% bonus with additional very-low/moderate units. Role: A ubiquitous feasibility lever to deliver affordability in market-rate projects. Housing Accountability Act (HAA) (1982: strengthened 2017-2019) Problem addressed: Cities used subjective discretion (e.g., "neighborhood character") to deny otherwise compliant housing. Solution: Limits denial, density reduction, or infeasible conditions for projects meeting objective standards, unless the city makes specific, evidence-based health/safety findings . 2017-2019 updates raised the burden of proof, added fees/attorney's fees, and clarified "objective standards." Role: A litigation-backed guardrail ensuring code-compliant housing moves forward-the State's classic "anti-NIMBY" tool. Redevelopment Agencies (RDAs): Termination and Loss of Local Affordable Housing Funds (2011-2012) Problem addressed (pre-2012): RDAs used tax-increment financing with a 20% housing set-as ide to fund affordable housing; the State later sought budget relief. Solution: The Legislature passed ABx1 26 (2011 ); the California Supreme Court affirmed dissolution 81 Hou sing Statutes were summarized Microsoft Co-Pilot May 2025 version Page 55 of 67 Orange County Grand Ju ry 2025-2026 166 California State Housing Mandates effective Feb 1, 2012, shifting property-tax increment, and creating successor agencies to wind down obligations. Role: Ended a major local funding stream, increasing reliance on density bonus, public land, tax credits, and state programs. SB 375 (2008) & SB 743 (2013; statewide VMT implementation 2020) Problem addressed: Sprawl drove VMT and GHGs; CEQA's Level of Service (LOS) metric discouraged infill. Solution: SB 375 requires Sustainable Communities Strategies (SCS) aligning land use and transportation to cut GHGs; SB 743 replaced LOS with VMT in CEQA, favoring infill and multimodal access, with statewide implementation by 2020. Role: Climate + housing siting framework; housing near jobs/transit faces fewer CEQA hurdles than sprawl. ADUs (2016-2025 waves): Legalizing "Gentle Density" Problem addressed: Single-family-only rules and local barriers (parking, minimums) impeded backyard cottages/garage conversions near jobs. Solution: Successive bills created 60-day ministerial approval, broad parking relief, and standardized rules; HCD's 2025 ADU Handbook consolidates guidance and updates. Role: A distributed, lower-cost production engine-large, scalable homeowner-led supply statewide. HCD Law §16884.01 (2017): Establishes Housing Element Compliance Consequences and State Enforcement Authority Problem addressed: For decades, many cities and counties failed to adopt or maintain HCD-compliant Housing Elements, resulting in chronic under-production of housing, exclusionary zoning practices, and resistance to RHNA obligations. Prior housing law lacked clear, enforceable consequences for noncompliance, allowing jurisdictions to delay, obstruct, or ignore housing planning requirements with minimal risk . This undermined statewide housing policy, fair housing objectives, and public accountability. Solution: HCD Law §16884.01 clarifies and operationalizes the legal consequences of Housing Element non-compliance, explicitly linking failure to adopt or implement a compliant Housing Element to loss of local land-use discretion and enhanced state oversight. The law affirms HCD's authority to make formal findings of noncompliance and triggers statutory remedies under related housing laws, including limits on down-zoning, exposure to the Housing Accountability Act, and eligibility for "builder's remedy" projects when required conditions are met. It strengthens the enforceability of Housing Element Law by making compliance legally consequential rather than aspirational. Role: A state enforcement backbone for California's housing planning system, §16884.01 functions as a compliance-triggering provision that gives real effect to RHNA and Housing Element Law. It shifts housing policy from a negotiation-based model to a rule-of-law framework , ensuring that local governments that refuse to plan for housing face predictable, uniform consequences while compliant jurisdictions retain local control. The statute is central to California's modern "Yes In My Backyard" enforcement regime. SB 35 (2017): Streamlined Ministerial Approval Problem addressed: Lengthy discretionary review and CEQA litigation stalled production, especially where jurisdictions lagged RHNA. Solution : Creates a ministerial (CEQA-exempt) pathway in cities not meeting RHNA progress for qualifying infill projects that meet objective standards, affordability, and labor provisions; HCD issued binding guidelines. Pa ge 56 of 67 Orange County Grand Jury 2025-2026 167 California State Housing Mandates Role: A fast lane that translates zoning into approvals within 90-180 days; HCD publishes which jurisdictions are subject. AB 686 (2018): Affirmatively Furthering Fair Housing (AFFH) Problem addressed: Persistent segregation and unequal access to opportunity despite fair-housing statutes. Solution: Requires all public agencies to affirmatively further fair housing and adds new Housing Element duties (analysis of segregation, access to opportunity, displacement risk , equitable siting). Role: Embeds civil-rights obligations into RHNA/Housing Elements, pushing lower-income housing into high-opportunity areas. SB 330 (2019; extended by SB 8 to 2030): Housing Crisis Act Problem addressed: Moving goalposts (new subjective standards), downzoning, unlimited hearings, and loss of protected units increased entitlement risk. Solution: Freezes new subjective design rules , caps hearings, creates preliminary application vesting , and requires replacement/relocation when protected units are impacted. Role: Stabilizes entitlements, preserves capacity, and protects renters. SB 9 (2021): Duplexes & Urban Lot Splits Problem addressed: Large single-family parcels constrained capacity; owners lacked simple legal paths to add units. Solution: Requires ministerial approval of up to two units on most single-family lots and allows urban lot splits (with guardrails). Implementation and litigation have been mixed , but SB 9 continues to operate statewide. Role: Incremental densification in high-opportunity areas (uptake has been modest vs . ADUs). SB 10 (2021): Local Rezoning for "Missing Middle" Housing Problem addressed: CEQA-exposed rezonings and voter-approved limits made modest upzoning slow and risky. Solution: Voluntary tool letting cities zone up to 10 units/parcel on transit-rich or urban infill sites with the rezoning action itself exempt from CEQA ; may override local initiative restrictions with a 2/3 council vote. Role: A local-option upzoning mechanism ; note it does not streamline the project approvals that follow. AB 2011 (2022): Affordable Housing and High Road Jobs Act Problem addressed: Vast commercially-zoned land sat underused while housing faced discretionary review and CEQA. Solution : Creates ministerial, CEQA-exempt approvals for qualifying multifamily on commercial corridors via two paths : 100% affordable or mixed-income meeting corridor, site, and labor standards . Effective July 1, 2023. Role: A production-focused pathway converting retail/office/parking sites into housing statewide. SB 6 (2022): Middle Class Housing Act (Companion to AB 2011) Problem addressed: Housing often not allowed on commercial parcels absent a rezoning. Solution: Allows residential use in many commercial zones (by right as a permitted use) with labor standards ; not ministerial/CEQA-exempt on its own (but can combine with other tools). Effective July 1, 2023. Role : Opens more sites to housing when AB 2011 is not available. Page 57 o f 67 Orange County Grand Jury 2025 -2026 168 California State Housing Mandates AB 2097 (2022): Eliminating Parking Minimums Near Transit Problem addressed: Mandatory parking minimums near transit raised costs and reduced housing feasibility. Solution: Prohibits minimum parking requirements for most projects within½ mile of a major transit stop (with narrow exceptions); HCD issued a 2025 Technical Advisory for implementation . Role: Lowers costs and removes a common barrier to infill housing . SB 423 (2023): Extends & Expands SB 35 Through 2036 Problem addressed: SB 35's 2026 sunset and exclusions (e.g., much of the Coastal Zone) limited reach ; many cities still failed RHNA or lacked certified elements. Solution: Extends SB 35 to 2036, applies streamlining to more jurisdictions and sites (incl. parts of the Coastal Zone), ties eligibility to Housing-Element compliance , and updates affordability/labor standards; allows DGS to administer on State-owned land. Role: A statewide production accelerator, making the SB 35 fast lane broader and longer-lived. SB 131 + AB 130 (2025): CEQA & Housing Streamlining (Budget Trailer Bills) Problem addressed: Infill housing still faced CEQA delays, litigation risk , and inconsistent timelines. Solution: Establishes new CEQA exemptions for qualifying infill housing (e .g., up to 20 acres, or 5 acres for builder 's-remedy sites), streamlined review, and -via the broader package-a temporary freeze on code updates to improve predictability. Effective June 30, 2025. Role: A modernized CEQA framework that complements HAA/SB 330/SB 35 to speed compliant housing . Builder's Remedy under HAA (codified/updated 2024-2025) Problem addressed: Some cities delayed or adopted non -compliant Housing Elements to preserve restrictive zoning. Solution: AB 1893 (2024) and AB 1886 (2024) formalize and clarify the Builder 's Remedy: where a jurisdiction lacks a certified element, qualifying projects with required affordability may proceed (with new standards and protections effective Jan 1, 2025). Role: A blunt enforcement backstop-if a city does not plan properly, it loses discretion to reject compliant affordable projects. SB 79 (2025): Overrides Local Zoning to Enable Higher-Density Housing Near Transit Problem addressed: Local zoning caps on height and density near transit stops prevented production of transit-oriented housing even in regions with extensive rail and bus networks. Solution: Preempts local zoning within½ mile of qualifying transit stops to legalize multi-story multifamily housing, allowing substantially greater height and density. Creates a statewide TOD framework that can be combined with SB 35 , SB 330, the Housing Accountability Act, and the State Density Bonus Law to streamline approvals at lower affordability thresholds. Role: A land-use preemption tool establishing "as-of-right" higher density near transit so state streamlining laws (e.g., SB 35) can actually deliver buildable transit-oriented projects. It operationalizes California's TOD objectives and supports pro-housing production goals. AB 507 (2025): Establishes Adaptive Reuse as Use-by-Right With Streamlined Approval Problem addressed: High commercial vacancy rates and slow, discretionary local approval processes mad e it difficult to convert underutilized office/retail buildings into housing-despite acute statewide housing shortages. Pa ge 58 of 67 Orange County Gra nd Jury 2025 -2 026 169 California State Housing Mandates Solution: Declares adaptive reuse a use-by-right in all zones except non-residential industrial areas and provides ministerial, streamlined approval for eligible projects in existing buildings (generally <50 years old or meeting historic-preservation requirements). Requires income-restricted units (e.g., 8% very low+ 5% extremely low, or 15% lower-income for rentals) and allows mixed-use conversions if ~50% of floor area is residential. Waives parking for portions of buildings without existing on-site parking . Role: A conversion-focused production tool enabling rapid , CEQA-bypassed adaptive reuse of commercial buildings into housing. Pairs with local incentive programs (e.g., tax-increment-funded Adaptive Reuse Investment Funds starting FY 26-27) to subsidize affordability and unlock large-scale urban reuse. AB 648 (2025): Exempts Community College Housing from Local Zoning Problem addressed: Community college districts (CCDs) face severe barriers building student, faculty, and staff housing because local zoning ordinances-unlike UC/CSU-block or delay projects, worsening housing insecurity for the 2M+ community college students, over half of whom experience housing instability. Solution: Exempts CCD-built student, faculty/staff, and university housing projects on CCD-owned or leased property from local city/county zoning regulations. Requires certain projects with faculty/staff units to include extremely low-and lower-income affordable units. Declares the exemption a matter of statewide concern applying to all cities, including charter cities. Role: A state-level preemption tool enabling rapid production of student and workforce housing on community college land, eliminating local zoning barriers and aligning CCD authority with UC/CSU to address student homelessness and workforce affordability. AB 1021 (2025): Expands and Streamlines Workforce Housing on School District Property Problem addressed: High housing costs prevent school districts from recruiting and retaining teachers and staff; thousands of acres of school-owned land remain underutilized due to zoning barriers, procedural hurdles, and limits on allowable uses . Solution: Revises and expands the law deeming workforce housing an allowable use on any property owned by a local educational agency (LEA). Requires qualifying projects (~10 units) to prioritize renting to school employees and the public under a set hierarchy, with a majority of units deed-restricted for lower-or moderate-income households. Applies Housing Accountability Act protections, enables density bonuses, and extends the program to 2036. Role : A major workforce-housing production tool that cuts red tape, activates school district land for affordable educator housing, and strengthens school staffing stability-particularly in high-need communities where housing costs drive turnover. AB 253 (2025): Creates a Private Pathway to Speed Up Residential Permit Plan-Checking Problem addressed: Local building departments often take more than 30 days to complete residential plan checks, creating permitting backlogs that slow housing production, increase project costs, and leave small-scale infill projects stalled. Solution: Establishes the California Residential Private Permitting Review Act, requiring cities/counties to publish residential permit fee schedules and provide applicants with estimated plan-check timelines. If the estimated timeframe exceeds 30 business days (or if no determination is provided within 30 days), applicants may hire a licensed private professional ("private professional provider") to perform the plan check. Applies to 1-10 unit projects ~40 ft tall and allows private reviewers to certify compliance via affidavit. Page 59 o f 67 Orange County Gran d Jury 2025-2026 170 California State Housing Mandates Role: A post-entitlement acceleration tool that cuts through municipal bottlenecks by letting homeowners and builders use certified private reviewers, moving small-scale housing through permitting faster while maintaining local agency oversight. AB 1308 (2025): Imposes an Inspection "Shot Clock" and Allows Private Inspectors Problem addressed: Unpredictable and months-long delays in final inspections-framing, electrical, plumbing, final occupancy sign-off-prevent newly built or renovated homes from being occupied, increasing holding costs and slowing the delivery of small-scale housing. Solution: Requires local building departments to conduct inspections for 1-10-unit projects (:540 ft) within 10 business days after receiving notice of completion. If the estimated inspection window exceeds 30 days-or no inspection occurs within 30 days-applicants may hire a licensed private professional inspector to complete the inspect ion and submit an affidavit attesting to code compliance. Also requires cities/counties to post residential permit fee schedules. Role: A post-entitlement enforcement and delivery tool that ensures housing is not delayed at the final inspection stage. Speeds up occupancy, adds accountability to local inspection offices, and allows builders to default to vetted third-party inspectors when jurisdictions are too slow. AB 712 (2025): Strengthens Enforcement of State Housing Laws Against Noncompliant Cities Problem addressed: Local agencies routinely delay, obstruct, or illegally deny housing projects despite state housing reform laws; enforcement is weak, costly for applicants, and slow, enabling jurisdictions to continue violating State Mandates without consequence. Solution: Creates a robust enforcement framework requiring courts to award attorney's fees and costs to prevailing housing applicants and to impose mandatory fines on violating local agencies. Extends statutes of limitation by 60 days when applicants issue a notice of intent to sue, and bars agencies from requiring applicants to indemnify them for litigation arising from the agency's own violations. Defines "housing reform law" broadly to cover laws protecting housing applicants or limiting local discretion . Role: A statewide compliance tool that finally gives housing applicants meaningful remedies-and gives local governments financial and legal consequences for ignoring state housing law, thereby enabling real enforcement of the State's pro-housing framework. SB 808 (2025): Fast-Tracks Judicial Review of Housing Permit Denials Problem addressed: Cities continue denying compliant housing projects, forcing applicants into a slow judicial review process where litigation delays-often lasting years-kill projects, escalate costs, or allow permits to expire. Solution: Establishes an expedited writ-of-mandate process for housing permit denials. Requires: • Local agencies to compile and certify the administrative record within 15 days. • Courts to set hearings within 45 days and issue decisions within 30 days of submission (or 75 days from filing, whichever comes first). • Priority scheduling for appeals. Allows the applicant , Attorney General, or HCD to file the petition; authorizes temporary judicial assignments to meet deadlines. Role: A litigation-acceleration tool that prevents local agencies from using procedural delay to kill housing projects, ensuring that California housing laws have immediate, enforceable consequences . Complements AB 712 by enforcing housing rights on t he judicial side. Page 60 of 67 Ora nge County Grand Jury 202 5-20 26 171 California State Housing Mandates SB 786 (2025}: Clarifies Housing Element Law and Strengthens Court Remedies Against Noncompliant Cities Problem addressed: Conflicts between General Plan elements, vague housing-element rules, and slow litigation processes create uncertainty for cities, courts, and developers-leading to delays, stalled rezoning, and litigation bottlenecks that block housing production. Solution: Establishes clear hierarchy rules: when General Plan elements conflict-including quantified development standards-the most recently adopted , HCD-certified Housing Element controls. Tightens judicial timelines in Housing-Element challenges: • Limits continuances to 60 days, • Requires temporary relief whenever continuances occur, • Requires HCD to conduct substantial-compliance reviews when local jurisdictions miss required Housing-Element deadlines, • Extends rezoning compliance timelines to 120 days and mandates sanctions if jurisdictions fail to comply. Applies general-plan challenge rules to charter cities. Role: A statewide governance-and-compliance tool ensuring that Housing Elements actually function as the controlling document, reducing litigation gamesmanship , and compelling jurisdictions to implement rezoning and Housing-Element obligations on enforceable timelines. Complements AB 712 and SB 808 as part of the Attorney General 's statewide enforcement strategy. SB 340 (2025): Expands Emergency Shelter Requirements in Housing Elements Problem addressed: Emergency shelter planni ng requirements were outdated and limited , failing to reflect modern shelter models (e.g ., navigation centers, recuperative care) and the full range of onsite supportive services needed for effective homelessness response. Solution: Updates the definition of "emergency shelter" to require housing with supportive se,vices (not minimal services) and requires Housing Elements to account for all onsite services consistent with written, objective standards. Imposes new obligations on cities/counties in shelter planning and broadens the Emergency Housing and Assistance Program definition. Role: A homelessness-response modernization tool ensuring jurisdictions plan realistically for service-rich shelter models within their Housing Elements and zoning designations. AB 610 (2025): Requires Disclosure of New Local Governmental Constraints in Housing Elements Problem addressed: Cities and counties were adopting new land-use constraints (fees , ordinances, zoning rules) during Housing-Element cycles without disclosure, undermining RHNA compliance and increasing barriers to housing production. Solution: Requires a governmental constraints disclosure statement in each Housing Element (7th Cycle onward), identifying all new or amended constraints adopted since the last Housing Element. Prohibits adoption of new constraints unless they were disclosed and the jurisdiction has completed all required programs to remove past constraints (except when mandated by state/federal law). Applies to charter citi es. Role: A transparency and anti-backsliding tool ensuring local governments cannot quietly increase barriers to housing once RHNA obligations are set. AB 670 (2025): Allows Converted Affordable Units to Count Toward RHNA Reporting Problem addressed: Cities lacked credit in their Annual Progress Reports (APRs) for preserving or converting multifamily buildings into long-term deed-restricted affordable housing, despite this being a major preservation strategy. Page 61 of 67 Orange County Grand Jury 2025-2026 172 California State Housing Mandates Solution: Expands APR reporting starting in 2027 to allow units converted to affordable housing-with 55-year covenants for low, very low, extremely low, or acutely low income households-to count toward a jurisdiction's RHNA-creditable progress, if they meet specified criteria. Includes detailed new reporting requirements for demolitions, replacement units, and affordable conversions. Role: A preservation-credit tool aligning RHNA reporting with long-term affordable housing conversion strategies, encouraging cities to preserve expiring-affordability stock. AB 726 (2025): Allows Cities to Count Substantial Rehabilitation of Affordable Units in APRs Problem addressed: Deeply affordable older units (often 15+ years old) need major rehabilitation but cities receive zero RHNAIAPR credit for investing in repairs-causing cities to prioritize new construction instead of preserving aging stock. Solution: Allows jurisdictions to include substantially rehabilitated deed-restricted affordable units (;::15 years old, :545% AMI average affordability, ;::$60k local investment per unit) in APRs. These units cannot be counted toward eligibility for streamlining under SB 35. Updates references to the Office of Land Use and Climate Innovation. Role: A preservation-incentive tool enabling cities to earn APR credit for rehabilitating deeply affordable units, helping maintain long-term housing quality and prevent affordable-stock losses . AB 1275 (2025): Extends RHNA Timelines and Aligns Housing Needs with Transportation Plans Problem addressed: Regional Housing Needs Determinations (RHND) were rushed due to tight timelines (2-year lead time), leading to disputes, insufficient data review, and disconnects between transportation planning and housing allocations. Solution: Extends RHND timeline from 2 to 3 years before a Housing -Element update (with special rules for 2027-2029 cycles), requires earlier consultation between HCD and councils of governments (COGs), and mandates that RHNA methodology be informed by Sustainable Communities Strategy (SCS) patterns in regional transportation plans. Strengthens integration of job-housing balance, mobility patterns , and fair housing objectives. Role: A regional-planning alignment tool ensuring RHNA allocations better reflect transportation, climate , and job-housing realities, improving the planning accuracy of future housing cycles. SB 233 (2025): Requires Earlier State -Regional Consultation for RHNA Determinations Problem addressed: During prior RHNA cycles, HCD provided regional housing need numbers too late (26-month timeline), leaving councils of governments (COGs) and cities with insufficient time to plan, contributing to widespread late Housing-Element adoption. Solution: Requires HCD to meet and consult with each COG at least 38 months before a Housing-Element revision (one year earlier than prior law), with special rules for the 7th Cycle. Ensures earlier agreement on RHNA assumptions, methodologies, and data inputs. Role: A regional-planning coordination tool that expands the planning window for local governments , reducing delays, improving RHNA accuracy, and increasing likelihood of timely Housing-Element compliance. AB 920 (2025): Requires Centralized Online Portals for Housing Permit Applications Problem addressed: Local permitting processes were opaque, slow, and inconsistent across cities ; applicants could not easily track housing development permits, resulting in delays , confusion , and high administrative burdens. Solution: Requires cities/counties with populations ;::150,000 to create a centralized online application portal for housing development projects, allowing electronic submissions and real-time status tracking. Page 62 o f 67 Orange County Grand Jury 2025 -2026 173 California State Housing Mandates Jurisdictions may delay implementation until 2030 only if they begin procurement by 2028. Applies to charter cities. Role: A statewide digital-permit modernization tool that increases transparency, reduces processing delays, and standardizes how applicants navigate housing approvals. SB 358 (2025): Reduces Traffic Impact Fees for Transit-Oriented Housing Problem addressed: Traffic impact fees-often 20% of project cost-were applied using outdated auto-trip assumptions, inflating costs for infill and transit-oriented housing that generates fewer vehicle trips. Solution: Reforms the Mitigation Fee Act to: • Require at least 50% fee reductions for qualifying transit-oriented housing, • Update eligibility criteria (parking maximums, proximity to <!3 amenities, transit-priority locations), • Require fee-denial findings to be supported by substantial evidence, • Remove outdated convenience-retail requirements and proportional-fee provisions. Role: A cost-reduction and TOD-incentive tool that aligns traffic fees with actual impacts, supporting infill and climate-oriented housing production. AB 752 (2025): Makes Child Daycare Centers in Multifamily Housing a Use-by-Right Problem addressed: Cities treated daycare centers co-located with multifamily housing as commercial uses-triggering zoning barriers, business license fees, CEQA review, and inconsistent local requirements , reducing childcare capacity near where families live. Solution: Makes daycare centers co-located with multifamily housing or community amenities a residential use by right; prohibits business license fees; exempts such centers from CEQA; bars stricter standards on them than those applied to the co-located housing or amenity. Maintains all California licensing and safety requirements. Role: A childcare-access and land-use integration tool that reduces barriers to collocated daycare centers, supporting housing-adjacent amenities and family-serving communities. SB415 (2025): Refines Statewide Warehouse & Logistics Development Standards (Not a housing production bill but affects land-use and zoning environments related to freight-adjacent communities.) Problem addressed: AB 98 (2024) established statewide warehouse standards but included ambiguous definitions and inconsistent requirements, creating confusion for local governments, developers, and environmental-justice communities in logistics-heavy regions . Solution: SB 415 clarifies key definitions ("logistics use development," "sensitive receptor"), narrows exemptions, updates siting and truck-route standards, refines buffer requirements, and ensures 21st-century warehouses meet applicable sustainable-design standards at permit issuance. Also clarifies where warehouse concentration regions apply. Role: A land-use-governance and environmental-mitigation tool improving clarity and enforceability of statewide logistics-facility regulations-reducing conflicts between freight operations, housing, and community health. AB 98 (2024-2025): Establishes Statewide Design, Siting & Environmental Standards for Logistics Facilities Problem addressed: Warehouse and logistics developments-especially in the Inland Empire-were producing severe air-quality, noise, traffic, and public-health impacts on nearby residential areas, schools, and other sensitive receptors , while local regulations were inconsistent or ineffective. Page 63 o f 67 Orange County Grand Jury 2025-2026 174 California State Housing Mandates Solution: Creates California's first statewide design, siting, and operational standards for logistics facilities, including: • Mandatory buffers (500-900 feet) from sensitive receptors, • Truck-route and loading-bay orientation requirements , • Anti-idling measures and cold-storage plug-ins, • Title 24-level building efficiency standards (solar, EV-readiness), • 2:1 replacement requirement for recently occupied affordable units demolished, • Applicability to large new facilities and expansions ~20% of floor area. Compliance required for applications submitted after Sept. 30, 2024, with most standards fully effective Jan. 1, 2026. Role: A statewide environmental-mitigation and freight-land-use tool aimed at protecting communities while aligning logistics growth with sustainability and public-health goals. AB 98 is foundational to later cleanup legislation (SB 415). AB 1007 (2025): Cuts Responsible-Agency Permit Deadlines in Half Problem addressed: Even after cities approved housing projects, state and regional "responsible agencies" (e.g., air districts , water boards) could take months to issue secondary permits, causing ballooning timelines and costs. Shot-clocks for these agencies (90 days) were much longer than those for lead agencies. Solution: Amends the Permit Streamlining Act to require responsible agencies to approve/disapprove residential, mixed-use, supportive, or farmworker housing permits within 45 days of project approval or application completeness-cutting the prior 90-day deadline in half. Applies statewide, including charter cities. Role : A permitting -acceleration tool ensuring faster post-entitlement approvals and reducing interagency delays that frequently stall housing construction. AB 1050 (2025): Allows Removal of Private Covenants Blocking Housing on Commercial Properties Problem addressed: Commercial parcels often have old CC&Rs and reciprocal easement agreements (REAs) that prohibit residential uses or limit density, preventing commercial-to-housing adaptive-reuse projects-even when allowed under State housing laws like AB 2011. Solution : Expands existing restrictive-covenant-modification law (previously limited to affordable housing) to all qualifying housing developments located on commercial sites, allowing developers to: • Invalidate covenants that restrict residential use, density, unit count, or occupancy, • Apply the process to REAs as well as CC&Rs, • Record a Restrictive Covenant Modification Document after county counsel review. Does not authorize projects inconsistent with state housing laws. Role: A statewide barrier-removal tool enabling adaptive reuse of commercial corridors and shopping centers into housing by preempting private land-use restrictions. SB 92 (2025): Closes Loopholes in the Density Bonus Law for Mixed-Use Projects Problem addressed: Developers exploited the Density Bonus Law to exceed commercial FAR and build oversized hotel-heavy or visitor-serving mixed-use projects with minimal housing (e.g., San Diego "Project Vela"). Solution: Reforms Density Bonus Law by: • Limiting commercial FAR increases under DBL to ~2.5>< base zoning , • Prohibiting incentives/waivers for transient lodging (hotels, motels, B&Bs) except residential hotels, Page 64 o f 67 Ora n ge C o unty Gra nd Jury 2025-2026 175 California State Housing Mandates • Requiring '?:.2/3 of mixed-use square footage to be residential to qualify, • Maintaining full affordability thresholds for bonus eligibility. Effective Jan. 1, 2026 (with grandfathering for pre-application projects). Role: A guardrail tool ensuring Density Bonus Law is used to build actual housing-not oversized hotel or commercial space leveraged through affordable-unit "tokenism.• AB 87 (2025): Prevents Density Bonus Incentives for Hotel Components of Mixed-Use Projects Problem addressed: Developers were using DBL concessions (height, FAR, parking waivers) to benefit hotel components of mixed-use projects, diluting the Slate's housing incentives and enabling visitor-serving developments that undermined local zoning. Solution: Clarifies that DBL incentives may not be applied to hotel/motel/visitor-serving portions of a mixed-use project. Makes parallel conforming amendments to align with SB 92 if both bills are enacted. Applies statewide, including charter cities. Role: A housing-priority tool reinforcing that density bonuses are for residential production -not for hospitality or tourism development. APPENDIX B: Orange County Housing Mandate.Survey Questions Q1 What is your city's 6th-cycle RHNA allocation, and does your Housing Element plan exceed that number? If so, by how much, and what factors influenced the decision to exceed the allocation? Q2 If the RHNA mandate were not in place, how would your housing plan differ? Would it still meet the demand for low-income housing? Q3 What strategies has your city used to inform and engage residents about the state housing mandate? How do you measure the effectiveness of these outreach efforts? Q4 Whal are the implications of recent stale legislation on R-1 single-family zoning for your city's land-use policies and community character? Q5 What are the most significant challenges your city faces in meeting RHNA requirements? In what ways has OCCOG supported your efforts to overcome these challenges? Q6 Do you anticipate achieving your approved Housing Element goals by the end of the 6th cycle in 2030? What factors will most influence your success or shortfall? Q7 What additional information would you like to provide us regarding this topic? APPENDIX C: Responsibilities Responsibilities of OCCOG Mission Statement: The Orange County Council of Governments (OCCOG) convenes jurisdictions throughout Orange County to collaboratively address land use, housing, mobility, energy, air quality, and water issues, and lo ensure that Orange County is effectively represented in regional and state decision-making. Through sound governance, impartial analysis, and regional coordination, OCCOG delivers value to its member agencies and the residents of Orange County. Core Responsibilities: 1. Sub-Regional Planning and Coordination a . Serves as Orange County's official sub-regional planning organization within the six-county SCAG region . Page 65 of 67 Orange County Grand Jury 2025-2026 176 California State Housing Mandates b. Leads the preparation of required regional and sub-regional planning documents that allow Orange County jurisdictions to compete for state and federal funding . (occog .com], [occog.com] 2. Regional Representation and Advocacy a. Ensures Orange County's interests are represented in regional policy development by coordinating the county's representation on the SCAG Regional Coun cil and committees . b. Works to align countywide perspectives on policy issues affecting transportation, housing, sustainability, and infrastructure. 3. Housing, Transportation, and Sustainable Communities Planning a. Supports housing and transportation planning coordination, including RHNA-related activities and implementation discussions. b. May serve as the lead agency for a sub-regional Sustainable Communities Strategy if Orange County elects to pursue one under SB 375 , consistent with SCAG's Regional Transportation Plan . 4. Technical Analysis, Studies, and Data Support a. Conducts countywide and sub-regional studies , prepares technical reports, and provides data -driven analysis to support policymaking by member agencies. b. Develops best-practice guidance (e.g., Complete Streets, mobility and infrastructure tools) for voluntary adoption by cities and the County. 5. Intergovernmental Collaboration and Consensus-Building a. Functions as a forum for cooperation among cities, the County, and special districts on issues of shared concern. b. Facilitates coordination on funding strategies, infrastructure planning , and policy alignment without supplanting local land-use authority.82 Responsibilities of SCAG Mission Statement The Southern California Association of Governments (SCAG) serves as the regional planning agency for Southern California , coordinating among local, regional, state, and federal partners to advance transportation, housing, land-use , and environmental planning that supports sustainable growth, economic vitality, social equity, and improved quality of life for the region's diverse communities. SCAG's mission is to lead collaborative regional planning by developing and implementing integrated transportation, housing, and sustainability strategies; allocating regional housing needs; ensuring compliance with state and federal planning requirements ; and providing data, technical assistance, and policy guidance to its member jurisdictions to address Southern California's long -term growth challenges. 83 Responsibilities of HCD Mission Statement (Primary) The California Department of Housing and Community Development (HCD) works to ensure safe, affordable, and sustainable housing opportunities for Californians by administering housing programs , 82 Orange County Counc il of Governments 83 Home I So uth ern Californ ia Association of Governments Page 66 of 67 Ora nge County Gra nd Jury 20 25-20 26 177 California State Housing Mandates shaping statewide housing policy, and enforcing housing laws to promote equity, environmental quality, and community stability across the state. HCD's mission is to lead and implement California's housing policy by determining regional housing needs, reviewing and enforcing Housing Element compliance, administering state and federal housing funds, and holding local jurisdictions accountable for fulfilling their obligations under state housing law. 84 84 Californ ia Department of Housing and Community Pevel op.JIUillt Page 67 of 67 Orange County Grand Jury 2025-2026 178 r:r~r-w I . I' • ,· ' ni-,\l7i ~r -1r ; 'r; I I I ~ I'' I I , : I I '. Department of Community Development Office: (714) 536 – 5271 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov July 2, 2026 Honorable Sheila F. Hanson Presiding Judge of the Superior Court 700 Civic Center Drive West Santa Ana, CA 92701 RE: response to Orange County Grand Jury Report, California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods Dear Judge Sheila F. Hanson, The City of Huntington Beach has reviewed the Orange County Grand Jury Report, California Housing Mandates, The Unintended Reshaping of Orange County Neighborhoods. In compliance with California Penal Code Sections 933.05(a) and (b), the City has responded to each of the findings and recommendations directed to the City in this report. Each finding and recommendation is listed below, followed by the City’s response. Findings F1: In recent years, the California Legislature has enacted an unusually large and burdensome volume of housing-related laws intended to strengthen compliance with State Housing Mandates. The City agrees with this finding. F2: Housing Mandates are implemented through a RHNA process that often lacks transparency and relies on complex methodologies that are difficult for local officials and the public to understand or meaningfully challenge. The City agrees with this finding. F4: Meaningful participation by Orange County cities in both OCCOG and SCAG meetings is critical to ensuring that local perspectives are represented during the development and implementation of Housing Mandates policies. The City agrees with this finding. F5: SCAG's 6th Cycle RHNA assigned Orange County a questionable total of 183,861 housing units for the 2021-2029 planning period, with higher allocations concentrated in cities with major population and employment centers. 179 CITY OF r. HUNTINGTON BEACH Office: (714) 536 – 5271 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov The City agrees with this finding. The complexities of the RHND/RHNA statutes, their respective processes, and politicization of those processes significantly contribute to the generalization that the total RHNA for Orange County was questionable. SCAG provided data and input during HCD’s RHND process regarding multiple factors and filed a written objection with HCD contending that HCD violated state law in developing the RHND. HCD rejected SCAG’s objection, which resulted in a significantly higher RHND for the region than previous planning periods. SCAG then allocated the RHND units to each jurisdiction in the region via its regional housing needs assessment (RHNA) methodology process. Throughout the RHNA process, the City raised multiple issues regarding the development of the draft RHNA methodology, including requesting that SCAG’s Regional Council reject the substitute motion RHNA methodology brought forward by former Riverside Mayor Rusty Bailey that was not part of the extensive public outreach and engagement that SCAG’s three other draft RHNA methodologies were subject to. This alternative was submitted extremely late in the RHNA process, demonstrated that the process can be politically manipulated, and the Regional Council’s adoption of this methodology ultimately resulted in a significant shift in RHNA units from Riverside County to Orange County and Los Angeles County. The City found flaws in several RHNA methodology factors, including those related to population projections and jobs centers. Specific information regarding each RHNA methodology factor is available in the City’s RHNA appeal submitted to the SCAG Regional Council RHNA Subcommittee. F6: RHNA allocations are unrealistic and not attainable within the current planning cycle due to limited available land, built-out urban conditions, infrastructure constraints, environmental factors, and public health and safety requirements. The City partially disagrees with this finding, noting that these issues exist along with significant economic and market factors cities cannot predict or control. F7: Residents in Orange County consistently express a desire for local planning decisions to reflect community priorities, including but not limited to neighborhood character, safety considerations, the environment and open-space preservation. The City agrees with this finding. F8: California's regulatory construction costs (i.e. permitting fees) present substantial challenges for private housing developers-particularly those delivering affordable units. The City partially disagrees with this finding, noting that the City lacks knowledge and sufficient information to reach this conclusion. Land acquisition and construction (labor and materials) costs are among the most significant costs for developing in the City of Huntington Beach. F9: The cost of constructing a single affordable housing unit in California typically ranges from approximately $500,000 to $800,000 per unit when fully complying with current state regulations. New low-income housing is generally not financially feasible without public subsidy. The City partially disagrees with this finding, noting that the City lacks knowledge and sufficient information to reach this conclusion as it pertains statewide. 180 CITY OF HUNTINGTON BEACH Office: (714) 536 – 5271 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov F10: Prior to their dissolution in 2012, redevelopment agencies served as a primary mechanism for cities and counties to finance affordable housing and related infrastructure. The loss of redevelopment has reduced cities’ ability to support construction of affordable units. The City agrees with this finding. F11: Because public subsidy is limited and highly competitive, cities seeking to produce meaningful quantities of low-income housing must rely in part on private development incentives, often resulting in higher overall development densities and unit counts than the RHNA allocation. The City partially disagrees with this finding, noting that the City lacks knowledge and sufficient information to reach this conclusion. F12: The 6th Cycle RHNA methodology included numerous technical inputs published by SCAG and HCD; however, these inputs were highly complex and difficult for cities to interpret or independently verify. The City agrees with this finding. The City found flaws in data it was able to independently verify. Specific information for each RHNA methodology factor is available in the City’s RHNA appeal submitted to the SCAG Regional Council RHNA Subcommittee. F18: The City of Huntington Beach has been unsuccessful in its attempts to contest Housing Mandates. To date, Huntington Beach lacks an approved General Plan Housing Element related to RHNA Allocation. The City partially disagrees with this finding, noting that the City Council has approved a “General Plan Housing Element related to RHNA Allocation.” Recommendations R7: OCCOG, all Orange County cities and the County of Orange should reassess the current dues structure, by September 30, 2026, to ensure that OCCOG has the resources necessary to effectively represent Orange County jurisdictions in SCAG processes, including RHNA methodology development and appeals. The City is willing to participate in any discussions held by the County or OCCOG on this issue. R8: By December 31, 2026, the Orange County Board of Supervisors should partner with cities to evaluate countywide infrastructure capacity— including water, wastewater, flood control, transportation, and public-safety systems—and develop a coordinated regional plan capable of supporting the level of housing growth required under state law. The City is willing to participate in this process with the County and other cities on this topic if feasible based on the availability of financial and staff resources. More importantly, HCD, in determining the regional housing need, should consider the availability and capacity of 181 CITY OF HUNTINGTON BEACH Office: (714) 536 – 5271 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov infrastructure systems within the region’s jurisdictions. Aligned action by the state could also assist supporting the level of housing growth required under state law. Increased funding for infrastructure improvements commensurate with the RHNA for each subregion would lower development costs and meaningfully assist in the production of new housing. Additionally, SCAG, in developing the RHNA methodology, should consider the availability and capacity of infrastructure systems as provided in state law. Instead, during the 6th cycle RHNA process, SCAG consistently recommended denial of RHNA appeals submitted by jurisdictions based on the lack of available water and sewer capacity. R9: By September 30, 2026, the Orange County Board of Supervisors should strengthen its engagement with OCCOG and increase staff support to develop a shared, countywide database of potential housing sites and key development-feasibility factors. The City is willing to provide data and input to the County and OCCOG in support of this effort. R11: The County of Orange and each city should ensure consistent participation in SCAG and OCCOG committees by September 30, 2026, including the Technical Advisory Committee (TAC), to strengthen regional representation during RHNA-methodology development. This recommendation is partially implemented. City staff regularly attends OCCOG TAC meetings. During the 6th cycle RHNA process, the City participated in SCAG public meetings and processes and regularly provided input and comment letters during the RHNA methodology process. The City also submitted input and comment letters during SCAG and HCD’s separate RHNA Reform public comment periods. The City intends to be an active participant in the 7th cycle. R12: The County of Orange and each city should designate a single technical representative, by September 30, 2026, along with an alternate, for all RHNA-related SCAG and OCCOG committees to ensure continuity of participation and eliminate gaps in representation across multiple decision-making bodies. This recommendation is partially implemented. The City already assigns a single staff person to participate in OCCOG TAC meetings. City staff with relevant subject matter knowledge provide support to the City Council SCAG representatives on various SCAG related topics. The City will assign a staff person for participation in RHNA-related SCAG meetings. R14: By April 30, 2027, the County of Orange and each city should publish annual monitoring dashboards showing (a) entitlement pipeline conditions, (b) realistic site yield, (c) assembled funding sources for affordable units, and (d) conversion rates from planned capacity to issued permits and completed units, ensuring that County and city-determined capacity assumptions remain aligned with actual production. This recommendation is partially implemented. The City currently has this information publicly available through various sources, including in the adopted (June 2026) General Plan Housing Element and the Housing Element Annual Progress Report. The City will consolidate this information into a monitoring dashboard when feasible based on the availability of financial and staff resources. 182 CITY OF HUNTINGTON BEACH Office: (714) 536 – 5271 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov R15: By September 30, 2026, and ongoing, the County Board of Supervisors and all city councils should make a coordinated and sustained effort to educate their constituents about the RHNA process—its requirements, its impact on local planning and community character, and the role residents can play in shaping outcomes. Public education efforts should also include guidance on how community members can effectively engage with the California Legislature and advocate for more realistic, data-driven housing policies. This recommendation is partially implemented. During the 6th cycle RHNA process, City staff provided regular status updates and presentations on the RHNA methodology during public City Council meetings. The City will provide public updates and education during the 7th cycle RHNA process. R16: By December 31, 2026, all cities should look to enhance their relationships with not- for-profit affordable housing developers to increase the opportunity to develop more affordable housing. This recommendation is partially implemented. City Housing Division staff maintain communication with non-profit affordable housing developers with projects in the City. The City will continue to maintain and enhance these relationships on an ongoing basis particularly when the City has funding available for affordable housing development opportunities. R17: By September 1, 2026, the City of Huntington Beach should evaluate submitting an appropriate Housing Element to reduce potential exposure to HCD penalties. This recommendation is already implemented. Please reach out if you have any questions on the contents of this letter. Sincerely, Travis Hopkins City Manager 183 CITY OF HUNTINGTON BEACH City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-377 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Ashley Wysocki, Director of Community & Library Services PREPARED BY:Kristin Martinez, Community & Library Services Manager Subject: Approve and authorize execution of a Memorandum of Understanding (MOU) and License to Utilize Certain Space between the City of Huntington Beach and Hoag Memorial Hospital Presbyterian Statement of Issue: Hoag Memorial Hospital Presbyterian (HOAG) and the City wish to continue the long-standing partnership between the two entities by approving a new five-year MOU for services and programs at the Senior Center in Central Park to enhance the quality of life for Huntington Beach residents. Financial Impact: There is no financial impact on the General Fund. Per the terms of the MOU, HOAG will provide an annual donation of $100,000 for sponsorship of the HOAG Health and Wellness Pavilion for five consecutive years, for a total donation of $500,000. Upon receipt of the annual donation, funds will be appropriated to Donation Fund 103, account 10345507. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the “Memorandum of Understanding and License to Use Certain Space Between the City of Huntington Beach and Hoag Memorial Hospital Presbyterian.” Alternative Action(s): Do not approve the recommended actions and direct staff accordingly. Analysis: The City of Huntington Beach began collaborating with HOAG in 1999 to provide funding for the City’s “Seniors on the Go” transportation program. In 2014, HOAG donated $2,000,000 for construction of the new center with an additional $1,775,000 for ongoing human services programs, including $500,000 for Hoag Health and Wellness Pavilion programs and services. City of Huntington Beach Printed on 7/15/2026Page 1 of 2 184 File #:26-377 MEETING DATE:7/21/2026 Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. RCA Contract Agreement Summary 2. Memorandum of Understanding between the City of Huntington Beach and Hoag Memorial Hospital Presbyterian 3. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 2 of 2 185 RCA Contract Agreement Summary CITY OF HUNTINGTON BEACH VENDOR NAME + TYPE OF SERVICE CONTRACT INFORMATION GENERAL INFORMATION TYPE OF AGREEMENT (Professional Services, Service Agreement) PROCUREMENT SCOPE OF WORK TOTAL COMPENSATION TERM OF CONTRACT/AGREEMENT OTHER: Bonds, Special Contract Terms, Emergency DATE PRESENTED REQUESTING DEPARTMENT STAFF CONTACT(S)INSURANCE STATUS 5/19/2026 Current expires 7/1/2026 Community & Library Services Ashley Wysocki and Kristin Martinez City to receive $100K per year for 5-years 5-years Hoag Memorial Hospital Presbyterian Memorandum of Understanding with Hoag Memorial Hospital Presbyterian for five (5) years of programs and services associated with the Hoag Health and Wellness Pavilion at the Senior Center. Not applicable. The City obligations will be to provide use of a fitness suite to assist in the development and maintenance of comprehensive contract array of exercise, fitness, and wellness offerings. Not applicable. 186 LO CITY OF rD HUNTINGTON BEACH 187 MEMORANDUM OF UNDERSTANDING AND LICENSE TO USE CERTAIN SPACE BETWEEN THE CITY OF HUNTINGTON BEACH AND HOAG MEMORIAL HOSPITAL PRESBYTERIAN THIS MEMORANDUM OF UNDERSTANDING AND LICENSE TO USE CERTAIN SP ACE (this "MOU") is made and entered into on July 1, 2026, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafte r referred to as "City "), and HOAG Memorial Hospital Presbyterian, a California corporation (hereinafter referred to as "HOAG"). The City and HOAG are sometimes each referred to herein as a 'Party" and collectively, as the "Parties." WHEREAS, beginning in 1999 , the City entered into various affiliations with HOAG, with the goal of providing life enhancing programs and serv ices to seniors who reside in the City or who otherwise receive services from the City; and WHEREAS, HOAG began serving the Citizens of Huntington Beach as a member of the HBCOA Board of Directors in 2004, t o enhance quality of life for Huntington Beach Seniors; WHEREAS, HOAG made a significant impact on the community with a 3.775 million dollar donati on toward s the opening of th e Senior Center in Central Park in 20 16; and WHEREAS, HOAG wishes to renew an agreement with C ity to maintain their level of support to the Huntington Beach Community; and WHEREAS, HOAG has licensed the area of the Senior Center as the HOAG Health and Wellness Pavilion since 2016 and w ishes to continue this support, NOW, THEREFORE, HOAG and the City of Huntington Beach agree as follows: 1 26-17952 / 4 l l 953 188 SECTION 1. TERM & TERMINATION This MOU will become effective on the date it is approved by the City Council and shall be for a term of five (5) years. Either party may terminate this Memorandum of Understanding, with or without cause, by providing 120 days written notice. SECTION 2. OBLIGATIONS OF CITY The City will make available to HOAG, a fitness suite and other areas as described below and on Exhibit A, attached hereto and incorporated herein by this reference ("Licensed Areas"). Subject to the terms of this MOU, the City hereby licenses to HOAG , and HOAG hereby accepts the license from the City, the Licensed Areas. In addition to HOAG's right to use and occupy the Licensed Areas as provided by the MOU, HOAG shall also have non-exclusive rights to all areas and facilities outside the Licensed Areas open to public use. The City agrees to provide all maintenance, janitorial services, heating , ventilation, air conditioning, r easo nable amounts of electricity and other utilities for HOAG' s intended uses, water for reasonable and normal drinking and lavatory use in connection ·with HOAG's intended uses for the Licensed Areas. During the term of the MOU, the City will provide s taff to assist in the development and maintenance of a comprehensive contracted array of exercise, fitness and wellness offerings. The City will work with HOAG to develop an "Annual Program Plan" that supports HOAG's strategic objectives, including the exclusive right to provide clinical services, and to provide and di stribute clinical information and related HOAG services at the Licensed Areas. The Parti es will also work together to develop and adopt a sustainability plan that will support these programs for the long term . 2 26-17952 / 4 I I 953 189 The City sha ll provide prominent signage indicating the 'HOAG Health and Wellness Pavilion' entry area and signage in the fitness center. HOAG shall approve this signage. The City acknowledges and agrees that it will use the Funding exclusively for the purposes set forth in this MOU and that the City may not use any portion of the Funding for any other use without the prior written approval of HOAG, in particular, the Funding and services provided by HOAG shall be used in furtherance of charitabl e purposes w ithin the meaning of 50l(c)(3) of the Internal Revenue Code, as amended in and response to a community need. In particular, the City, agrees to repay any portion of the Funding which is not used for the purposes set forth in this MOU and accordance with the terms of this MOU. The City agrees to provide annual or more frequent ly, if requested by HOAG, written reports to HOAG accounting for the expenditure of the Funding and the progress made to accompli shing the purposes set forth in this MOU, including demonstration that such Funding is being used for charitable purposes in accordance with the provisions of 501 ( c )(3) of the Internal Revenue Code, as amended and in fu r therance of a community need. Further, the City agrees that the HOAG's representatives shall have the right to inspect and make copies of all other applicable records relating to the City's use of the Funding, upon written request and during normal business hours. SECTION 3. OBLIGATIONS OF HOAG HOAG shall provide City with the following: I. Annual Donation of $100,000.00 to the City of Huntington Beach for sponsorship of the HOAG Hea lth and Wellness Pavilion for five consecutive years . 2. Annual meeting with Senior Services Staff to determine program schedu le. 3 26-17952 / 411953 190 SECTION 4. ACCESS TO CITY MARKS AND LOGOS HOAG shall have the right to use the official Huntington Beach City logo, surfboard logo, and City's "Surf City Huntington Beach" trademark with the prior written approval of City's Director of Community and Library Services before using any of these logos or trademark, which approval shall be at the sole discretion of the Director. Note: The surfboard logo is not the property of the City. Neither logo will be used by HOAG for commercial purposes. SECTION 5. HOLD HARMLESS "Each party (the "Indemnifying Party") shall defend, indemnify, and hold harmle ss the other party and its officers, officials, employees , and agents (the "Indemnified Party") from and against any and all liability, loss, damage, expenses, and costs (including, without limitation, reasonable attorneys ' fees and costs of litigation) to the extent arising out of or related to the Indemnifying Party's performance of this MOU or its failure to comply with its obligations under this MOU, including the negligence or wi ll fu l misconduct of the Indemnifying Party or its officers, officials, employees, agents, or subcontractors. The Indemnifying Party shall have the right to control the defense and settlement of any such claim, provided that (i) the Indemnified Party promptly notifies the Indemnifying Party of the claim, (ii) the Indemnified Party reasonably cooperates in the defense at the Indenmifying Party's expense, and (iii) the Indemnifying Party shall not settle any claim in a manner that imposes liability, admission of fault , or other obligation on the Indemnified Party without the Indemnifi ed Party's prior written consent, which shall not be umeasonably withheld. Notwithstanding the foregoing, each party's indemnification obligations shall not apply to the extent such li ability, l oss, or damage is caused by the negligence or willful misconduct of the Indemnified Party. Each party shall require its subcontractors to ,.,vaive subrogation ri ghts against the other party to the same extent required herein." 4 2 6-17952 / 411 953 191 SECTION 6. GENERAL LIABILITY INSURANCE In addition to the workers' compensation insurance and HOAG covenant to indem nify City, HOAG sha ll obtain and furnish to City, a policy of general public liability insurance. Said policy shall indenrnify HOAG, it s officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount: combined single limit bodily injury and prope1ty damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a desi gnated general aggregate limit , the aggregate limit must be no less than $1,000,000. Said policy shall name City, its agents, its officers, employ ees and volunteers as Additional Insured , and sha ll specifically provide that any other insura nce coverage which may be applicable shall be deemed excess coverage and that Foundation's insurance sha ll be primary. Under no circumstances shall the above-mentioned insurance contain a self-insured retention, or a "deductible" or any other similar form of limitation on the required coverage . SECTION 7. ASSIGNING AS BREACH Neither party sha ll encumber, assign, or otherwise transfer th is MOU, or any right or interest in thi s MOU, without the express v,1ritten consent of the other party. A consent by a party to one assig1rn1ent or transfer to another person shall not be deemed to be a consent to any s ubsequent assigmnent or transfer to another person. Any e ncumbrance, assigmnent or transfer, without the prior written consent of the other party, whether it b e voluntary or involuntary, by operation of law or otherwise, is void and shall , a t the option of the other party , terminate this MOU. 5 26-17952 / 411953 192 SECTION 8. TERMS BINDING ON SUCCESSORS All the terms, covenants and conditions of this MOU shall inure to the benefit of and be binding upon the parties and their successors and assigns . The provisions of this Section shall not be deemed as a waiver of any of the conditions against assignment hereinbefore set forth. SECTION 9. CONFLICT OF INTEREST A Party shall not employ an officia l, director, or officer or emp loyee of the other Party in the work performed pursuant to this MOU. No officer, director or employee of a Par ty shall have any financ ial interest in this MOU in violation of the appl icab le provisions of the California Government Code or HOAG's conflict of interest policy . SECTION 10. PHOTOGRAPHY City may grant permits to persons engaged in the production of sti ll and motion pictures, television programs, advertising and related activities, to take photographs and/or motion pictures of Senior Center activities. However, consistent with good safety practices, City w ill endeavor to give 24-hour advance notification of s uch activities to HOAG. SECTION 11. NONDISCLOSURES/PRESS RELEASES HOAG shall consult ,;vith City prior to issuing any press releases or otherwise making any public statements with respect to this MOU, the transactions contemplated herein, or matters arising herefrom. SECTION 12. CUMULATIVE REMEDIES The remedies given to the parties in this MOU shall not be exclusive but shall be cumu lative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this MOU. 6 26-1 79 52 / ,t 11953 193 SECTION 13. WAIVER OF BREACH The waiver by City of any breach by HOAG of any of the provisions of this MOU, irrespective of the length of time for which such failure continues, shall not constitute a wa iver of such breach or a waiver of any subsequent breach by HOAG either of the same or another prov is ion of this MOU. SECTION 14. FORCE MAJEURE -UNAV OIDABLE DELAYS Should the performance of any act required by this MOU to be performed by e ither City or HOAG b e prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or reg ulations , or any other cause ( except financial inability) not the fault of the party required to perform the act , the time for performance of the act will be extended for a period e quival ent to the period of d e lay and performanc e of the act durin g the p eriod of delay will be excused. SECTION 15. NOTICE Any written notice , g iven under the terms of this MOU, shall be e ither delivered person ally or mailed , certified mail , po stage prepaid, addressed to the party concerned, as follows: City Director of Conrnrnnity & Library Services City of Huntington Beac h 20 00 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Phone: (714) 536-5291 HOAG Director Franchise Marketing & Communications HOAG Memorial Hospital Presby teri an 510 Superior A venue , Suite 290 Newport Beach, CA 92663 direct 949/76 4-8452 I fax 949/764-5820 If a party desires to ch ange the add ress for notices se t fo rth here in , sa id party w ill provid e 30 clays advance written notice to the o ther party of any such change. 7 26-17952 / 4 I I 953 194 SECTION 16. ATTORNEYS' FEES In the event suit is brought by either party to enforce the term s and provisions of this MOU or to secure the performance hereof, each party shall bear its own attorney's fees. The prevailing party shall not be entitled to recover its attorney's fees from the non-prevailing party. SECTION 17. CONTROLLING LAW AND VENUE The rights and liabilities of the parties, and the interpretation and construction of this MOU, s hall be determined in accordance with the lavvs of the State of California. Any controversy arising out of or under this MOU, if litigated, shall be adjudicated in a court of competent jurisdiction in Orange County, California. SECTION 18. SECTION TITLES The section titles in this MOU are inserted on ly as a matter of convenience and for reference, and in no way define, limit or describe the scope of intent of this MOU or in any way affect this MOU. SECTION 19. TIME OF ESSENCE Time is of the essence with respect to all provisions of this MOU in which a definite time for performance is spec ified including, but not limited to , the expiration of this MOU. SECTION 20 . SURVIVAL OF INDEMNITIES Termination of this MOU shall not affect the right of City to enforce any and all indemnities given or made by HOAG under this MOU, nor shall it affect any provision of thi s MOU that expressly states that the provision shall survive termination thereof. 8 26-17952 I 41 1953 195 SECTION 21. NONLIABILITY OF CITY OFFICIALS, EMPLOYEES OR AGENTS No elective or appointed City or City affiliated board, commission or member thereof, or officer, official, employee or agent of City shall be personally liable to HOAG, its succ essors and assigns, of any default or breach by City under this MOU or for any amount which may become due to HOAG, its successors and assigns, under thi s MOU or for any obligation of City under this MOU. SECTION 22. MOU IN WRITING This MOU contains and embraces the entire agreement between the parties hereto and neither it nor any part of it may be changed, altered, modified, limited or extended orally or by any other agreement between the parties unless such agreement be expressed in writing, sig ned and ack nowl edged by Ci ty a nd HOAG, or their successors in interest. SECTION 23 . PARTIAL INVALIDITY Should any provision of thi s MOU be h eld by a court of competent jurisdiction to be either invalid, void, or unenforceab le , the remaining provisions of this MOU sha ll remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties h ereto are no t materially impaired. SECTION 24. NO TITLE INTEREST No title interest of any kind is hereby g iven and HOAG shall never assert any claim or title to Senior Center in Central Park or any other public property. Any use of Senior Center in Central Park by HOAG is non-exclusive. REST OF PAGE NOT USED 9 26-17952 / 41 1953 196 SECTION 25. ENTIRETY The foregoing sets forth the entire agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed by and through their authorized officers the day, month and year first above written. HOAG MEMORIAL HOSPITAL PRESBYTERIAN, a nonprofit public benefit corporation: Robert Braithwaite print 1 ITS: (circle one) Clrn innai Vice President ~ By:_1----,LJ.--------- Andrew Guarni print nam e------ lTS: (circle one) Secretary hicf rinancinl Officer ssl. Secretary -Treasurer REVIEWED AND APPROVED: City Manager 26-17952/41 1953 10 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney INITIATED AND APPROVED: Director of Community & Library Services 197 SECTION 25 . ENTIRETY The foregoing sets forth the entire agreement between the parties . IN WITN E SS WHEREOF , the parties hereto have cau sed this MOU to be executed by and tlu·ough their authorized officers the day , month and year first above written. HOAG MEMORIAL HOSPITAL PRESBYTERIAN, a nonprofit public benefit corporation: By: _____________ _ print name ITS: (c ircle one) C ha innan/President/V ice Preside nt AND By : ___________ _ pr int name ITS: (c ircle o ne) Secretary/Chief Financial Officer/A sst. Sec retary -T reasurer REVIEWED AND APPROV ED: City Mana ger 26-17952 f ,t 11 953 CITY OF HUNTINGT ON BEACH, a municipal corporation of the State of Ca liforni a Mayor ATTEST: C ity C lerk APPROVED AS TO FORM: C ity Attorney !NITTA TED AND APPROV ED: 198 EXHIBIT A LICENSED AREAS The area licensed hereunder are described as a portion of the HOAG Health and Wellness Pavilion, located in the Senior Center in Centra l Park. a. One 100 sq . ft. office within the Pavilion which will be ava ilabl e for HOAG or an affi liate to provide direct care to patients. Office will be used to provide for a variety of clinical services from preventative care and education to health services. b. The City will operate space within the fitness area for City contracted classes, including dance, exercise and strength training for groups or individuals. HOAG may also use this space to provide its own classes not in conflict with the City's classes. The Consu ltation spaces for personal training or the development of individualized fitness plans will be ava il able for contracted trainers and HOAG service providers or affiliates of HOAG. Further, during the Term , the City ,,vill provide HOAG with the first refusal to provide any other health , fitness or wellness services that are not in conflict with City contracted classes. c. If available, th e City will make available to e ducators and physicians of HOAG and HOAG 's affiliates, spaces within the Center equipped with audio and visual teclmology to enable state -of-the-art teaching to improve health and wellbeing for large and small groups. d. The City acknowledges and agree s that in the provision of health care services that employees or agents of HOAG Medical Group or another affiliate of HOAG will provide such medical services , as may be required under app li cable law, and that when such services are being provided, HOAG or its affiliates shall have exclusive use of the applicab le port ion of the Licensed Areas . 11 26-17952 / 4 I I 953 Memorandum of Understanding and License to Use Certain Space Between the City and Hoag Memorial Hospital Presbyterian Community & Library Services Department July 21, 2026 199 Background •1999: City of Huntington Beach began collaborating with Hoag in 1999 to provide funding for the City’s “Surf City Seniors on the Go” transportation program. •2014: HOAG donated $2,000,000 for construction of the new senior center with an additional $1,775,000 for ongoing human services programs, including $500,000 for Hoag Health and Wellness Pavilion programs and services. •2021: Hoag renewed its commitment for another five-year partnership supporting the Health and Wellness Pavilion. 200 •Provide HOAG with designated “Licensed Areas” within the Wellness Pavilion, including a100 sq. ft. office and shared use of the fitness and consultation spaces •When available, provide additional instructional spaces in the senior center equipped with audio and visual technology. Hoag may offer classes when not in conflict with City-contracted programs and will receive first refusal for additional wellness services. for direct care, including preventative care, health education, and related clinical services. •Provide staff to assist in the development and maintenance of an array of exercise, fitness, and wellness offerings. Obligations of the City 201 •Provide all maintenance, janitorial services, heating, ventilation, air conditioning, reasonable amounts of electricity and other utilities for HOAG’s intended uses, water for reasonable and normal drinking and lavatory use in connection with HOAG’s intended uses for Licensed Areas. •Collaboratively develop an “Annual Program Plan” that support Hoag’s strategic objectives, including the exclusive right to provide clinical services and distribute clinical information and related services at Licensed Areas. Parties will also work together to develop and adopt a sustainability plan that will support programs long term. Obligations of the City 202 •Provide prominent signage indicating “Hoag Health and Wellness Pavilion” at entry area and signage in the fitness center •Use funding for purposes set forth in this MOU and may not use funding for any other use without prior written approval of HOAG. •Provide annual written reports to Hoag accounting for the expenditure of the Funding and the progress made to the accomplishments set forth in the MOU. Obligations of the City 203 •Provide an annual donation of $100,000 to the City for sponsorship of the Hoag Health and Wellness Pavilion for five consecutive years •Attend an annual meeting with Senior Services Staff to determine program schedule. Obligations of HOAG 204 Financial Impact Hoag will provide an annual donation of $100,000 for sponsorship of the Hoag Health and Wellness Pavilion for five consecutive years, for a total donation of $500,000. There is no financial impact on the General Fund. 205 Approve and authorize the Mayor and City Clerk to execute the ‘Memorandum of Understanding and License to Use Certain Space Between the City of Huntington Beach and Hoag Memorial Hospital Presbyterian.” Recommended Action 206 Questions? 207 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-621 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Ashley Wysocki, Director of Community & Library Services PREPARED BY:Ashley Wysocki, Director of Community & Library Services Subject: Approve the Design Concept and Placement of a Memorial Plaque Honoring Kolby Aipa on Tower Zero of the Huntington Beach Municipal Pier Statement of Issue: This is the follow-up from Councilmember Item 26-411 from the May 5, 2026 City Council meeting. Financial Impact: There is no financial impact to the City of Huntington Beach. Private funding will be used to produce and install the memorial plaque. Recommended Action: Approve the design concept and placement of a memorial plaque honoring Kolby Aipa on Tower Zero of the Huntington Beach Municipal Pier. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: On May 5, 2026, the City Council set aside Resolution No. 2017-25 and directed staff to work with the Aipa family and return to City Council within 90 days to present a proposal for a public memorial at Tower Zero honoring Kolby Aipa. Kolby Aipa was a cherished member of the Huntington Beach ocean community, known not only for his deep connection to the water but also for his kindness, humility, and support for those around him. His presence on and around the Pier left a lasting impact on lifeguards, surfers, beach visitors, and countless residents. Kolby embodied the spirit of Huntington Beach through his commitment to ocean safety, his passion for surfing, and his ability to forge strong personal connections across generations. City of Huntington Beach Printed on 7/15/2026Page 1 of 3 208 File #:26-621 MEETING DATE:7/21/2026 , Duke and Val shared the following words: Kolby lived with a quiet kindness that made people feel seen, valued and loved. Northside Legend, a true Ambassador of Aloha, and a humble servant to his beloved Huntington Beach community, Kolby was a fisher of men and showed us that true strength is found in humility, in showing up, and in choosing fearless, truthful love. A life cut short yet fully lived. Below is his creed. Remember these words and share them with your friends, your family and in this way, you carry the legacy of Aloha, just as Kolby did. Be humble. Respect all. Do good deeds daily. Be there for one another. Choose compassion. Become a better version of yourself so you can help humanity rise. Live and love like there’s no tomorrow and always find Joy in God’s Creation. #IAMKOLBY The request to honor him at Tower Zero reflects the deep respect held for him by Huntington Beach and the surfing community. Following Council direction, staff collaborated with the Aipa family to create a plaque concept that appropriately reflects Kolby’s legacy. The proposed plaque: ·Utilizes durable, coastal appropriate materials. ·Aligns aesthetically with existing plaques on Tower Zero ·Features design elements chosen by the family to represent Kolby’s values, connection to the ocean, and contribution to Huntington Beach. Kolby was a graduate of Huntington Beach High School, renowned surfer and a member of the Huntington Beach Board Riders Club. Following his untimely passing in August 2025, he was inducted posthumously into the Surfer’s Hall of Fame on September 18, 2025, and on September 20, 2025, the community honored his life with a paddle out on the north side of the pier. The City of Huntington Beach adopted Resolution 2026-01, establishing September 18 as Kolby Aipa Day. In collaboration with the Aipa family, a ceremony to dedicate the plaque on Tower Zero will take place on Friday, September 18, 2026. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): City of Huntington Beach Printed on 7/15/2026Page 2 of 3 209 File #:26-621 MEETING DATE:7/21/2026 City of Huntington Beach Printed on 7/15/2026Page 3 of 3 210 To Know Kolby... Romans 8:6 “The mind of the Spirit is life and peace.” KOLBY AIPA Share Aloha #IAMKOLBY 211 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-583 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Eric McCoy, Fire Chief PREPARED BY:Kevin Justen, Senior Management Analyst Subject: Approve response letter to the 2025-2026 Orange County Grand Jury Report “Wildfires Hit Home” and forward to the Presiding Judge Statement of Issue: Transmitted for City Council consideration is a response letter to the 2025-2026 Orange County Grand Jury Report entitled “Wildfires Hit Home,” and authorize the Mayor to sign the attached transmittal letter to The Honorable Sheila F. Hanson, Presiding Judge of the Orange County Superior Court. Pursuant to California Penal Code Section 933.05, the City must respond to the Grand Jury’s findings and recommendations within 90 days of publication (by August 18, 2026). Financial Impact: There is no fiscal impact associated with this action. Recommended Action: A) Approve the City’s response letter with findings and recommendations to the Orange County Grand Jury Report entitled “Wildfires Hit Home”; and B) Authorize the Mayor to submit the response letter to the Presiding Judge of the Orange County Superior Court. Alternative Action(s): The City Council may take the following alternative action: Amend the response letter prior to submitting it to the Presiding Judge. Pursuant to state law, the City must submit a response within 90 days. Analysis: In 2025-26, the Orange County Grand Jury prepared the report “Wildfires Hit Home” (Attachment 1). City of Huntington Beach Printed on 7/15/2026Page 1 of 2 212 File #:26-583 MEETING DATE:7/21/2026 ·The increasing frequency and severity of wildfires in Orange County, especially in wildland urban interface areas ·The designation of a High Fire Hazard Severity Zone (HFHSZ) within Huntington Beach ·The importance of defensible space inspection programs, community outreach, and participation in countywide wildfire prevention initiatives ·Recommendations for increased community engagement, annual wildfire prevention fairs, and promotion of programs, such as Safer from Wildfires and AB 888 As required by California Penal Code Section 933.05, the City’s formal responses must be reviewed and approved by the City Council. The proposed responses are shown in Attachment 2 and address the findings and recommendations, demonstrating agreement with the Grand Jury’s concerns. They also outline ongoing and planned actions to mitigate wildfire risk and enhance community resilience. Report instructions state that a transmittal letter with the City’s responses is required to be submitted to The Honorable Sheila F. Hanson, Presiding Judge of the Orange County Superior Court (Attachment 3). A PowerPoint presentation is included as Attachment 4. Approval of the responses to the Grand Jury report will ensure the City’s compliance with statutory requirements and reaffirm Huntington Beach’s proactive stance on wildfire risk reduction. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Orange County Grand Jury Report “Wildfires Hit Home” 2. City Council Responses to the 2025 Grand Jury Report 3. Transmittal Letter from Mayor McKeon to the Honorable Sheila F. Hanson 4. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 2 of 2 213 Wildfires Hit Home Orange County Grand Jury 2025-2026 214 This page left intentionally blank so the first page starts to the right 215 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 3 of 74 TABLE OF CONTENTS SUMMARY ...................................................................................................................... 5 BACKGROUND .............................................................................................................. 6 REASON FOR STUDY ................................................................................................... 9 METHOD OF STUDY ...................................................................................................... 9 INVESTIGATION AND ANALYSIS ................................................................................ 10 FINDINGS ..................................................................................................................... 31 RECOMMENDATIONS ................................................................................................. 32 COMMENDATIONS ...................................................................................................... 33 REQUIRED RESPONSES ............................................................................................ 34 Acronyms ...................................................................................................................... 41 Glossary ........................................................................................................................ 43 Bibliography .................................................................................................................. 45 Appendix A .................................................................................................................... 50 Appendix B .................................................................................................................... 53 Appendix C .................................................................................................................... 55 Appendix D .................................................................................................................... 56 Appendix E .................................................................................................................... 58 Appendix F .................................................................................................................... 61 Appendix G ................................................................................................................... 63 FIGURES Figure 1 Map of Eaton and Palisades Fires in January 2025 ......................................... 7 Figure 2 Shared responsibility for risk reduction in wildland-urban interface areas ...... 11 Figure 3 WUI and suburban conflagration fire disaster chain of events. ...................... 13 Figure 4 Example of an Orange County City LRA Fire Hazard Severity Zone Map ..... 16 Figure 5 Board of Forestry and Fire Protection Defensible Zones 0, 1, and 2 .............. 18 Figure 6 Total FAIR Plan Dwelling and Commercial Policies Have Increased, September 2023 to September 2025 ............................................................. 20 Figure 7 City Area Reported in Fire Hazard Severity Zones ......................................... 26 Figure 8 Cities Reporting Achieved, Applied for, or Plan to Apply for a Community- Level Wildfire Risk Mitigation Designation ..................................................... 27 216 Wildfires Hit Home Page 4 of 74 Orange County Grand Jury 2025-2026 Figure 9 Cities Reporting Outreach Program to Provide Information and Guidance to Property Owners on Wildfire Risk Mitigation Measures and/or Grants .......... 28 Figure 10 Cities Reporting Their Outreach Program Refers to Orange County Fire Authority Outreach Programs and Resources ............................................. 29 Figure 11 Top 20 Deadliest California Wildfires ............................................................ 50 Figure 12 Top 20 Most Destructive California Wildfires ................................................ 51 Figure 13 Large Fires 300 Acres and Greater - State and Contract Counties Direct Protection Area ............................................................................................ 52 Figure 14 Orange County Wildfires by Size ................................................................. 52 Figure 15 Safer from Wildfires Flyer, Page 1 ................................................................ 53 Figure 16 Safer from Wildfires Flyer, Page 2 ................................................................ 54 Figure 17 Fire Hazard Severity Zone Map of Orange County ...................................... 55 Figure 18 Fire Hardening and Defensible Space Disclosure, Page 1 .......................... 56 Figure 19 Fire Hardening and Defensible Space Disclosure, Page 2 .......................... 57 Figure 20 California Property and Casualty Insurance Company Homeowners Premium and Loss ....................................................................................... 58 Figure 21 FAIR Plan Data for Orange County Zip Codes 90620 - 92679 ..................... 59 Figure 22 FAIR Plan Data for Orange County Zip Codes 92680 – 92899 .................... 60 Figure 23 Orange County Fire Authority Covered Cities .............................................. 61 Figure 24 Orange County Fire Jurisdictions ................................................................. 62 Figure 25 Ready, Set Go! Flyer for Immediate Zone .................................................... 63 Figure 26 Ready, Set, Go! Flyer on Defensible Space ................................................. 64 Figure 27 Ready, Set, Go! Flyer for Home Hardening, Page 1 .................................... 65 Figure 28 Ready, Set, Go! Flyer for Home Hardening, Page 2 .................................... 66 Figure 29 Ready, Set, Go! Flyer on Vegetation Management ...................................... 67 Figure 30 Ready, Set, Go! On Be Ember Aware .......................................................... 68 Figure 31 Ready, Set, Go! Flyer on Home Assessment ............................................... 69 Figure 32 Ready, Set, Go! Flyer on Wildfire Home Risk Assessment, Page 1 ............. 70 Figure 33 Ready, Set, Go! Flyer on Wildfire Home Risk Assessment, Page 2 ............. 71 Figure 34 Zone 0 At-A-Glance, Page 1 ........................................................................ 72 Figure 35 Zone 0 At-A-Glance, Page 2 ........................................................................ 73 217 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 5 of 74 SUMMARY Wildfires have become a fact of life in California. Persistent drought conditions and accelerated warming have led to an increase in wildfires throughout the state. Of the twenty most destructive wildfires in California history, fifteen have occurred in the last ten years (see Appendix A). From the Camp Fire, also referred to as the Paradise Fire, in Northern California to the Palisades and Eaton Fires in Los Angeles and the Airport Fire in Orange County, the tragic loss of life and the destruction of thousands of homes and structures have upended homeowners’ lives and rocked the insurance industry with billions of dollars in claims just in the last few years. These conditions have made home insurance unaffordable or unavailable for many Orange County residents. The State of California has attempted over recent years to mitigate the impact on ratepayers and insurers and has provided tougher regulations for hardening homes and property. Both the California legislature and the California Department of Insurance have issued recent laws and regulations to address these issues. Significant for this report are Safer from Wildfires (2022), California Fair Access to Insurance Requirements (FAIR) Plan (1968, revised 2025), Assembly Bill 888 (2025) and California Wildland-Urban Interface Code (2025). The California FAIR Plan was established in 1968 to provide basic insurance for property owners who could not obtain fire coverage through the traditional insurance market due to being in high-risk fire areas. The FAIR Plan is not a state agency, and it receives no taxpayer funding. It is a syndicated fire insurance pool made up of all insurers licensed to write property/casualty insurance in the state. The FAIR Plan is intended to be the insurer of last resort and is meant to be a temporary safety net helping property owners until they can transition back to the traditional insurance market. The numerous fires over the last few years coupled with private insurers leaving the California market or no longer insuring homes in high-risk areas, have resulted in the FAIR Plan being financially strained with the number of policies more than doubling since September 2023.1 The State Legislature and Department of Insurance both responded with strategies to rebalance this problem requiring insurers to increase the number of policies issued in high-risk areas and to change the way rates are established, however, insurance companies, using loopholes in the legislation, have so far largely avoided meeting the goals set for them.2 The Safer from Wildfires regulation was issued by the Insurance Commissioner after development in partnership with California Department of Forestry and Fire Protection (CAL FIRE) and the Governor’s Office of Emergency Services. The regulation mandates 1 Key Statistics & Data. The California FAIR Plan. https://www.cfpnet.com/key-statistics-data/ 2 The New York Times, California Promised Insurance Relief, But Delivered Loopholes, Nov. 2, 2025. 218 Wildfires Hit Home Page 6 of 74 Orange County Grand Jury 2025-2026 that insurance companies provide rate discounts for various actions that property owners take to create defensible space and harden their homes against wildfires (see Appendix B). AB888, the California Safe Homes Grant Program, aims to reduce wildfire losses, improve insurability and resilience of vulnerable communities, and support home hardening efforts to help residents qualify for insurance premium incentives. It provides grants to aid qualifying residents and communities to complete wildfire risk mitigation measures. The California Wildland-Urban Interface Code (CWUIC) refers to the California Building Standards Code, Title 24, Part 7. Effective in January 2026, the CWUIC requires fire- resistant and ignition-resistant construction in Fire Hazard Severity Zones or the wildland-urban interface. Requirements were also established for vegetation and hazard mitigation in the same areas. Studies have definitively shown that implementing these home hardening and defensible space requirements, including retrofitting existing homes, will greatly reduce ignition and fire spread, thereby reducing damage and resulting claims. Compliance with the 2015 International Wildland-Urban Interface Code (IWUIC) could save $4 for every $1 invested and retrofitting structures to the IWUIC could provide from $2 to as much as $8 in benefits for each $1 invested.3 Home hardening and defensible space measures that align with wildland-urban interface codes and Safer from Wildfires regulations will help save homeowners and insurance companies from catastrophic loss. The 2025-2026 Orange County Grand Jury found evidence that clearly shows Safer from Wildfires home hardening and defensible space measures protect homes and communities, saving homeowners, local governments, and fire authorities as well as insurance companies from catastrophic loss while also providing discounts for homeowners’ insurance premiums. BACKGROUND California’s Wildfire Crisis and Insurance Impact California faces an escalating wildfire crisis fueled by accelerated warming, prolonged droughts, increasingly windy conditions, and expanded development into fire-prone areas. Between 2015 and 2025, 15 of the 20 most destructive wildfires in state history 3 National Institute of Building Science, Natural Hazard Mitigation Saves. 2019. https://nibs.org/wp- content/uploads/2025/04/NIBS_MMC_MitigationSaves_2019-1.pdf. Accessed March 3, 2026. 219 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 7 of 74 occurred, including the Palisades and Eaton Fires in 2025. These events have caused loss of life, devastated communities, destroyed thousands of homes, and resulted in billions in insured losses (see Appendix A). The Eaton Fire in January 2025, spread through the suburbs of Pasadena destroying 9,413 structures and burning 14,021 acres. It became Los Angeles County’s most destructive and second deadliest fire with 19 fatalities (see Appendix A). On the same day in January 2025, the Palisades Fires swept through Pacific Palisades, Topanga, and Malibu, consuming 6,833 homes and 23,707 acres. It became Los Angeles County’s third-most destructive fire and third deadliest with 12 fatalities (see Appendix A). Both fires were fueled by strong Santa Ana winds of between 80-100 mph, extremely dry conditions, and dense vegetation, creating what officials called a "perfect storm" for wildfire spread.4,5 Figure 1 Map of Eaton and Palisades Fires in January 2025 The most destructive California wildfire listed by CAL FIRE is the November 2018 Camp Fire in Butte County which burned 153,336 acres, destroyed 18,804 structures, and resulted in 85 deaths. The CAL FIRE list of the Top 20 Most Destructive California Wildfires can be viewed in detail in Appendix A. Data for Orange County wildfires for the period 2008 through 2024 can be viewed in Appendix A. Orange County’s 2024 Airport Fire that started in Trabuco Canyon burned 23,500 acres and destroyed 160 structures. The fire raged for nearly a month, prompting a state of 4 Andrea Thompson, How the Ferocious Santa Ana Winds are Fueling the Palisades Fire, Scientific American, Accessed January,8, 2026, http://www.scientificamerican.com 5 Julia Jacobo and Ginger Zee, A perfect storm of weather and climate conditions led to the severity of the California fires, ABC News, Accessed January 8, 2026, http://www.abcnews.com/US/perfect-storm- weather-climate-conditions-severity-california-fires/story?id=117468072 220 e Monro-.,aPHk Wildfires Hit Home Page 8 of 74 Orange County Grand Jury 2025-2026 emergency and millions of dollars in claims. This fire and others not only caused property loss, but also damaged ecosystems, water resources, and impacted air quality. Post-fire soil degradation and the expansion of invasive, non-native plants has further hindered recovery.6 In California, wildfires have strained the private insurance market. Many insurers, facing frequent and unsustainable financial exposure and constraints on rate hikes caused by Proposition 103 have withdrawn from high-risk areas, or stopped issuing new policies altogether. Some insurers have even withdrawn from the state completely. California homeowners in high-risk wildfire areas report premiums ranging from $5,000 to $12,000 annually.7 Orange County, California’s fifth most expensive housing market as of the 4th quarter 2025,8 faces challenges that are different than the statewide market. With an average home price of $1.2 million,9 rising insurance costs further threaten housing affordability. A recent survey found that 43% of Orange County seniors worry most about housing costs and financial security.10 Among the hardest hit by insurance premium increases and policy nonrenewal are retirees, renters, and owners of condominiums, townhomes, and mobile homes. The Safer from Wildfires regulation requires insurers to offer discounts to homeowners who take proactive steps to reduce wildfire risk. Discounts are based on both achieving community-level designations, which assess the collective mitigation efforts of neighborhoods, and property-level improvements such as installing fire-resistant roofing, ember-resistant vents, and clearing defensible space.11 Reducing wildfire risk in the wildland-urban interface helps ensure that insurance coverage remains accessible. California’s wildfire and insurance crisis demands coordinated action from local governments and fire authorities, communities, and homeowners to reduce risk of wildfire. 6 Mashall A. Hayrikian, Engineering and Environmental Implications of the LA wildfires: Eaton and Palisades Fire, Marshall Geoscience – Geotechnical Engineering, Laboratory Services, http://www.marshallgeo.com/geotechnical-engineering/engineering-and-environmental-implications-of-la- wildfires-eaton-palisades-fires/ 7 Merlin Law Group. Fire Insurance in California: A Complete Guide. https://www.merlinlawgroup.com/fire- insurance-california-guide/. Accessed March 6, 2026. 8 California Association of Realtors®, Median Prices of Existing Single Family Homes. Accessed March 8, 2026. https://www.car.org/marketdata/data/housingdata 9 O.C. CA Real Estate and Property Data, ATTOM, October 2025 10 Gabriel San Roman, New report on aging in Orange County outlines key concerns among seniors, Los Angeles Times, June 21, 2024, https://www.latimes.com/socal/daily-pilot/entertainment/story/2024-06- 21/aging-in-orange-county-report 11 California Code of Regulations, Title 10, Section 2644.9, Consideration of Mitigation Factors; Wildfire Risk Models. https://regulations.justia.com/states/california/title-10/chapter-5/subchapter-4-8/article- 4/section-2644-9/ 221 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 9 of 74 REASON FOR STUDY Wildfires have become an increasingly severe threat to residential communities in Orange County, particularly those in high-risk fire zones. The frequency and intensity of wildfires has escalated due to prolonged droughts, rising temperatures, and development encroachment into wildland-urban interface areas. Catastrophic losses from these wildfires have resulted in a continuing insurance crisis. This study aims to (1) identify the shared responsibilities of local governments and fire service agencies, communities and homeowners to reduce the risk of wildfire in the wildland-urban interface, (2) investigate the status of actions taken by the California legislature and Department of Insurance to provide relief to policyholders, and (3) inform communities and homeowners on home hardening, defensible space, insurance risk reduction, and wildfire safety awareness. METHOD OF STUDY The investigation reviewed the efforts of Orange County local governments, local fire departments, and homeowner associations to better understand and provide an independent look at the above concerns and possible solutions. To achieve a clear picture of the wildfire problem in the Orange County wildland-urban interface and its impact on insurance rates, the 2025-2026 Grand Jury has done the following:  Reviewed studies and academic papers  Issued a Fire Hazard Severity Zone survey to all Orange County cities  Examined the 2025 California Wildland-Urban Interface Code  Observed a demonstration at a Yorba Linda Water District Heli-Hydrant™  Visited Firewise USA Site designated communities  Conducted literature review of previous statewide Grand Jury reports  Interviewed California Department of Insurance staff, reviewed Department website and pertinent regulations  Visited Orange County Fire Authority facilities to better understand their training, procedures, and preparedness  Conducted multiple interviews with city, county, and fire officials, as well as homeowners association staff and residents regarding wildland-urban interface wildfire risk reduction 222 Wildfires Hit Home Page 10 of 74 Orange County Grand Jury 2025-2026 Orange County Fire Authority helicopter approaching Yorba Linda Water District Heli-HydrantTM Source: Orange County Grand Jury 2025-2026 INVESTIGATION AND ANALYSIS The 2025-2026 Grand Jury investigated the risk of wildfire in Orange County wildland- urban interface areas, the insurance industry’s response to this risk, actions taken by fire prevention authorities to reduce the risk of damage and destruction of homes by wildfire, and the state legislature and California Department of Insurance (CDI) response to the insurance crisis. The Grand Jury also investigated actions homeowners should take to share the responsibility to reduce community wildfire risk, and by doing so, potentially reduce their insurance costs. The Grand Jury investigation included evaluation of CDI initiatives, the Safer from Wildfires insurance regulation,12 and other regulations related to wildfire and insurance risk reduction. The investigation also included examination of recent changes to Fire Hazard Severity Zone mapping, the 2025 CWUIC, and pending amendments to the ember-resistant Zone 0 regulations that comprise defensible space requirements. Shared Responsibility for Reduction of Wildfire and Insurance Risk There is a broad scope of shared responsibility for risk reduction in wildland-urban interface areas. State legislators, CDI, state and local fire prevention authorities, counties and cities, community-level organizations, and homeowners all share responsibility for taking actions necessary to prevent wildfires in wildland-urban interface areas and thereby reduce insurance risk and policy rates. Figure 2 below illustrates the shared responsibility. 12 California Code of Regulations, Title 10, Section 2644.9 223 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 11 of 74 Figure 2 Shared responsibility for risk reduction in wildland-urban interface areas The conclusion of this report focuses on the responsibilities of local governments and fire prevention authorities to provide homeowners the information and guidance needed to reduce property-level wildfire and insurance risk and thereby reduce these risks across entire communities. Wildland-Urban Interface Wildland-urban interface (WUI) is where urban development meets or intermixes with undeveloped natural areas. The term “wildland-urban interface” refers most often to areas where houses are located within or adjacent to relatively larger areas of natural vegetation. The U.S. Forest Service refers to WUI simply as “areas where human development meets natural landscapes.13 WUI is at greatest risk of wildfire in 13 Forest Service, U.S. Department of Agriculture. Wildland-Urban Interface. https://research.fs.usda.gov/nrs/fire/wui. Accessed January 12, 2026. Source: RanchoMissionViejo.com 224 Shared Responsibility for Risk Reduction in Wildland-Urban Interface Areas Insurance Companies Organize ·ons 1 C".,,,,.,.,...,.... □,.. .... ,..t-,,...AA;,...,..;,......,\/i ,...i ,... ,...,........,. Wildfires Hit Home Page 12 of 74 Orange County Grand Jury 2025-2026 California, where we have led the nation in both WUI growth and wildfires for 30 years.14 The Wildland-Urban Interface Fire Problem The current National Fire Protection Association (NFPA) Firewise USA program was developed out of the 1986 Wildfire Strikes Home conference principally organized by the U.S. Forest Service and the NFPA. This initiative was the initial fire management response to the home destruction problem related to wildfires nationally recognized in 1985 which has since become known as the WUI fire problem.15 By the middle of this century, many Orange County residents may have a dramatic experience with wildfire due to increasingly drier, hotter conditions. Research that examined wildfires during the period from 1959 through 2009 predicts that in the next 25 years Southern California will see increased wildfires during months when fall winds occur and also during the warmer, summer months. It is estimated that by the mid-21st century there will be a 64% increase in acreage burned during higher intensity fall winds, and a 77% increase during summer winds due to warmer and drier climate. A greater concern is the estimated 20% increase in structures destroyed due to fires during fall winds and estimated 74% increase in structures destroyed due to fires during summer winds in warmer, drier conditions.16 Orange County development that continues into the WUI should expect to face these predictions. This Orange County Grand Jury report focuses on the implications for increased wildfire and insurance risk and our concern that most homes in WUI areas are not prepared to resist ignition and destruction by wildfire. Wildland-Urban Interface Fire Disaster and Suburban Conflagration WUI fire disasters and suburban conflagrations occur during extreme fire conditions when numerous houses ignite and burn simultaneously, overwhelming the capabilities of firefighting resources.17 If enough homes are ignition-resistant, many homes do not ignite during extreme fire conditions and fire protection is not overwhelmed by the 14 Center for Critical Urban and Environmental Studies. University of California, Santa Cruz. Wildland Urban Interface (WUI) Research for Resilience: Addressing California’s Climate, Conservation & Housing Crises. https://criticalurbanenvironments.ucsc.edu/projects/wildland-urban-interface-wui-research-for- resilience/ 15 Jack Cohen. The Wildland-Urban Interface Fire Problem: A Consequence of the Fire Exclusion Paradigm. Forest History Today. Fall 2008: 20-26. https://www.fs.usda.gov/rm/pubs_other/rmrs_2008_cohen_j002.pdf. Accessed March 25, 2026. 16 Yufang Jin, et al. Identification of two distinct fire regimes in Southern California; implications for economic impact and future change. Environmental Research Letters, Volume 1, Number 9. IOP Science, September 8, 2015. https://iopscience.iop.org/article/10.1088/1748-9326/10/9/094005. Accessed January 9, 2026. 17 Cohen, The Wildland-Urban Interface Fire Problem, 22. 225 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 13 of 74 homes that do ignite; the ignition-resistant homes can survive without firefighter protection, and an extreme wildfire can occur without becoming a WUI fire disaster 18 or suburban conflagration. Suburban conflagrations occur when fire spreads from the wildlands into the WUI and suburban environment. Suburban conflagration follows the conceptual WUI fire chain of events in Figure 3.19 Once a structure in a community ignites, the probability of its complete destruction is high and the risk to the rest of the community increases as the burning structure produces significant heat and embers.20 Effective prevention of structure ignitions through home hardening and defensible space measures can break the WUI fire chain of events. Figure 3 WUI and suburban conflagration fire disaster chain of events.21 Home Ignition Zone and Home Ignition Potential The home ignition zone refers to a home and its immediate surroundings within 100 to 200 feet. The home ignition zone principally determines the potential for WUI fire disasters. Research shows that a home’s ignition potential during extreme wildfires is determined by the characteristics of its exterior materials and design, their response to 18 Cohen, The Wildland-Urban Interface Fire Problem, 23. 19 Ian M. Gammanco, et al. The Return of Conflagration in Our Built Environment. Insurance Institute for Business and Home Safety. September 2023. https://ibhs.org/wp- content/uploads/Suburban_Wildfire_Conflagration_WhitePaper.pdf. Accessed March 20, 2026. 20 Gammanco, The Return of Conflagration, 22. 21 Gammanco, The Return of Conflagration, 14. 226 Wildfires Hit Home Page 14 of 74 Orange County Grand Jury 2025-2026 burning objects within 100 feet, and their response to embers. Most destroyed homes in residential areas ignite from smaller flames and firebrands (lofted embers), not surrounding vegetation.22 Reducing home ignition potential is the key to preventing WUI fire disaster. Reducing Home Ignition Potential Can Prevent Wildland-Urban Interface Fire Disaster and Suburban Conflagration During extreme WUI fires, homes ignite and burn and sustain the requirements for combustion both indirectly and directly: Indirectly from radiation and convection heating from flames, and directly from ember spot ignitions on a house. Computational modeling and laboratory and field experiments show that large flames of burning shrubs and tree canopies must be within 100 feet to ignite a home’s wood exterior, while most destroyed homes ignite from smaller flames and directly from burning embers.23 These research results suggest that addressing the conditions in the home ignition zone to significantly reduce home ignition potential can prevent WUI fire disaster. Reducing home ignition potential means addressing the ignitability of the structure rather than the immediate surroundings. Source: Patrick T. Fallon / Agence France-Presse / Getty Images An analysis of CAL FIRE data and Butte County property records shows that about 51% of the 350 single-family homes built after 2008 in the path of the Camp Fire were undamaged. By contrast, only 18% of the 12,100 homes built prior to 2008 escaped damage.24 The homes built after 2008 were required to conform to 2008 Title 24, Chapter 7A of the California Building Standards Code which focused on construction of new buildings located within WUI and Fire Hazard Severity Zones. These 2008 wildfire risk mitigation requirements for new homes included materials such as fire-resistant 22 Cohen, The Wildland-Urban Interface Fire Problem, 23. 23 Cohen, The Wildland-Urban Interface Fire Problem, 24. 24 Dale Kasler and Phillip Reese. In Camp Fire, Newer Houses Were Much Less Damaged. The Sacramento Bee. April 11, 2019, updated January 9, 2024. https://www.kqed.org/science/1940012/newer- %D8%8Cuses-much-less-damaged-in-camp-fire. Accessed March 4, 2026. 227 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 15 of 74 roofs and siding, and construction methods for exterior wildfire protection. These wildfire risk mitigation requirements for new construction directly reduce home ignition potential and help homes constructed to the new standards survive undamaged. Benefits of Reducing Home Ignition Potential Can Exceed Costs The benefits of reducing home ignition potential through compliance with new construction requirements can exceed costs, with 90% of the benefits estimated from reduced property losses and insurance costs. The benefit-cost ratio (BCR) for complying with the 2015 International Wildland-Urban Interface Code (IWUIC) has been calculated by the National Institute of Building Science for a number of representative counties with moderate to extreme fire risk. Total benefits were calculated at $3 billion and total costs at $800 million, suggesting a BCR of approximately 4:1 or $4 saved for every $1 of additional construction and maintenance cost.25 A national average BCR for retrofitting typical 2,000 square-foot existing homes plus nearby non-residential buildings (stores, schools, etc.) to 2018 IWUIC ignition-resistant construction and defensible space was also calculated. Benefits of retrofit exceed costs, with 93% of the benefits estimated from reduced property losses. Total benefits were calculated at $430 billion and total costs at $240 billion, equivalent to a national average BCR of 2:1 or $2 saved for every $1 of retrofit and maintenance costs.26 The per-house retrofit cost is highly uncertain. The lowest average per-house retrofit cost would imply a much higher benefit-cost ratio, perhaps as high as 8:1, equivalent to an average of $8 saved for every $1 of retrofit cost.27 Office of the State Fire Marshal Fire Hazard Severity Zone Mapping California laws now require Fire Hazard Severity Zone (FHSZ) mapping.28,29,30 The need for FHSZ mapping arose from repeated occurrence of major destructive fires. The FHSZ maps are developed using a science-based and field-tested model that assigns a hazard score based on the factors that influence fire likelihood and fire behavior. There are three levels of hazard score: Moderate, High, and Very High. Many factors are 25 National Institute of Building Science, Natural Hazard Mitigation Saves. 63 26 National Institute of Building Science, Natural Hazard Mitigation Saves, 114. 27 National Institute of Building Science, Natural Hazard Mitigation Saves, 115. 28 California Public Resources Code 4201-4204. https://law.justia.com/codes/california/code-prc/division- 4/part-2/chapter-1/article-9/ 29 California Government Code 51175-89. https://law.justia.com/codes/california/code-gov/title-5/division- 1/part-1/chapter-6-8/section-51175/ 30 California Code of Regulations Title 14, Section 1280. https://regulations.justia.com/states/california/title-14/division-1-5/chapter-7/subchapter-3/article-1/section- 1280/ 228 Wildfires Hit Home Page 16 of 74 Orange County Grand Jury 2025-2026 considered such as fire history, existing and potential fuel (natural vegetation), predicted flame length, blowing embers, terrain, and typical fire weather for the area. FHSZ maps evaluate hazard, not risk. “Hazard” is based on the physical conditions that create a likelihood and expected fire behavior over a 30- to 50-year period without considering mitigation measures such as home hardening, recent wildfire, or fuel reduction efforts. “Risk” is the potential damage that a fire can do to the area under existing conditions, accounting for any modifications such as fuel reduction projects, defensible space, and ignition resistant building construction.31 FHSZ mapping began with the State Responsibility Area (SRA), defined as a designated area in California where the state has primary responsibility for fire prevention and suppression. The SRA FHSZ mapping went into effect in April 2024. Since then, the Office has also been mapping Local Responsibility Areas (LRA), defined as a portion of land where local agencies, such as city or county fire departments, are responsible for wildfire protection. All Orange County FHSZ maps are accessible at the CAL FIRE website.32 Figure 4 shows an example of an Orange County city FHSZ map. Appendix C shows a screenshot of Orange County FHSZs using the CAL FIRE Find Your Fire Hazard Severity Zone viewer accessible at this CAL FIRE web address:33 31 CAL FIRE. Office of the State Fire Marshal. Fire Hazard Severity Zones. Explore Fire Hazard Severity Zones. . https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and-mitigation/fire-hazard- severity-zones. Accessed March 20, 2026. 32 CAL FIRE. Office of the State Fire Marshal. Fire Hazard Severity Zones in Local Responsibility Area. Phase 4. Orange County. https://calfire.app.box.com/s/wahuw9ny7cgn89xpxh7092ur50r1pwvj/folder/312669458215 . Accessed March 12, 2026. 33 CAL FIRE. Office of the State Fire Marshal. Fire Hazard Severity Zones. https://osfm.fire.ca.gov/what- we-do/community-wildfire-preparedness-and-mitigation/fire-hazard-severity-zones . Accessed March 12, 2026. Figure 4 Example of an Orange County City LRA Fire Hazard Severity Zone Map 229 CITY OF NEWPORT BEACH -ORANCE COUNTY i Local Responsibility Area Asldenlitiedbythe Sbte Fire MiilJ'Shal Fire Hazard Severity Zones •. c ....... . ;::- ,.;: ·················•:: -./· § ""'-.....,.z-cnaz, .. LocM~ _(UlA). __ .,....,. .. , ... ,..._, ,.._,,_.,.z-.. ,_,._,,._..,,_ ClltAJ.m.c1troe_,..J..202• r._1 ---0. CJ --- ,._ • ..__1', ----.-aun ___ ,.. _______ .,.,.._.._. ..,. _____ , __ _ ____ ,. .. ___ ,... --·-··-·--..... -'"" ..... ---..... --.. ----__ ... _. .... ___________ .__ ... t.11 __ .,._ .... , .. .,_. __ _ .. ____ .. _____ --------:-.. :::=-.:==:.-==-___ .., __ .,. ___ .,. _____ _..,._.__...._.. :..=::--===...::.;:-::-:= ::=:.:-...:.."=...-:::.:=-::==::.-:-...,-:::, __ _ Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 17 of 74 https://experience.arcgis.com/experience/5065c998b4b0462f9ec3c6c226c610a9 . Homeowners can enter their address in this viewer to find whether their property is located within a specific FHSZ. How Fire Hazard Severity Zone Maps Impact Homeowners FHSZ maps have no direct impact on insurance coverage. The CDI states that the FHSZ maps are intended to drive local planning decisions, not insurance decisions, and that FHSZ maps have nothing to do with insurance rating.34 Though not used directly for insurance rating, FHSZ mapping does have significant indirect impacts. Properties located in High or Very High FHSZs are subject to certain legal requirements. New state building code requirements effective January 2026 for homes within a FHSZ or a WUI area include fire-resistant materials and construction methods. Buildings in these areas are subject to defensible space requirements. If you sell a home located in these areas, you are required to disclose fire risk and compliance to potential buyers using a specific form. These regulations are in place to increase fire-resistance of communities and ensure property owners are aware of the risks involved in living in a wildfire-prone area. California Wildland-Urban Interface Code Effective January 1, 2026 Title 24, Part 7 of the California Building Standards Code, also referred to as the 2025 California Wildland-Urban Interface Code (CWUIC),35 became effective January 1, 2026. Title 24, Part 7, Chapter 5, Special Building Construction Regulations establishes minimum standards to locate, design and construct buildings and structures or portions thereof for the protection of life and property, to resist damage from wildfires, and to mitigate building and structure fires from spreading to wildland fuels.36 Chapter 5 requirements for construction within a FHSZ or a WUI area include:  Specifications for fire-resistance-rated construction and non-combustible materials  Ignition-resistant construction and material  Replacement or repair of roof coverings 34 California Department of Insurance. CAL FIRE Hazard Maps Do Not Affect Insurance Rates or Availability. https://www.insurance.ca.gov/0400-news/0102-alerts/2025/CAL-FIRE-hazard-maps-do-not- affect-insu.cfm. Accessed March 6, 2026. 35 2025 California Wildland-Urban Interface Code, Title 24, Part 7, 2024 IWUIC Amended, Effective Date: Jan 01, 2026. https://codes.iccsafe.org/content/CAWUIC2025P2. Accessed January 22, 2026. 36 2025 California Wildland-Urban Interface Code, Title 24, Part 7, 2024 IWUIC Amended, Effective Date: Jan 01, 2026. https://codes.iccsafe.org/content/CAWUIC2025P2. Accessed January 22, 2026. 230 Wildfires Hit Home Page 18 of 74 Orange County Grand Jury 2025-2026 Defensible Space Requirements and the New Ember-Resistant Zone 0 The State Board of Forestry and Fire Protection is responsible for the existing defensible space regulations37 for buildings or structures located in the SRA or in Very High FHSZ in the LRA. If you have a home or building in the SRA or in the Very High FHSZ in the LRA, you are responsible for ensuring that your property complies with defensible space requirements to protect structures from wildfire. The Board of Forestry and Fire Protection webpages include an illustration of existing Defensible Space Zones 0, 1, and 2 (Figure 5), and links to Zones 0, 1, and 2 resources.38 Figure 5 Board of Forestry and Fire Protection Defensible Zones 0, 1, and 2 It is important to note that “ember-resistant Zone 0” does not mean all vegetation, including trees, within 0-5 feet must be removed. New ember-resistant Zone 0 37 California Public Resources Code Division 4 - Forests, Forestry and Range and Forage Lands Part 2 - Protection of Forest, Range and Forage Lands Chapter 3 - Mountainous, Forest-, Brush- and Grass- Covered Lands Section 4291. https://law.justia.com/codes/california/code-prc/division-4/part-2/chapter- 3/section-4291/. Accessed January 14, 2026. 38 State of California Board of Forestry and Fire Protection. https://bof.fire.ca.gov/projects-and- programs/defensible-space-zones-0-1-and-2. Accessed January 14, 2026. 231 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 19 of 74 vegetation options will be finalized later in 2026. The next public workshop meeting is scheduled for April 23, 2026. New ember-resistant Zone 0 requirements enhance existing defensible space requirements in High and Very High FHSZs in the LRA to create an ember-resistant zone within 0 to 5 feet of a building. 39 Compliance with existing or enhanced defensible space requirements addresses home ignition potential and reduces home ignitability. Reducing the ignitability of enough homes can break the WUI fire chain of events and help more homes escape destruction or survive undamaged. AB38 Defensible Space Compliance Documentation and Disclosure AB38 became effective in 2021, requiring sellers of property located in a High or Very High FHSZ to provide buyers with documentation stating the property complies with state defensible space requirements or local vegetation management ordinances, as applicable. The law provides that if documentation demonstrating compliance cannot be obtained by the close of escrow, a written agreement may be executed showing that the buyer agrees to obtain documentation of compliance within one year of the close of escrow. 40 The law also requires a Defensible Space Disclosure be provided by sellers of property located in a High or Very High FHSZ to buyers of homes constructed before January 1, 2010. The Disclosure must include specified information and a copy of a final inspection report, or information on where the report may be obtained. A sample Defensible Space Disclosure notice is reproduced at Appendix D. California Homeowners Insurance Crisis Devastating property losses and casualties resulting from numerous wildfires in California WUI areas and other natural disasters beginning in 2018 have precipitated a continuing homeowners insurance crisis. Beginning in 2022 and 2023, insurers began dramatically raising California homeowners fire insurance premiums in what were considered wildfire risk areas, and some insurers began to stop issuing policies in high- risk areas or withdraw from the California homeowners’ insurance market altogether. Like many homeowners throughout the state that are severely impacted by the insurance crisis, many Orange County homeowners are also impacted. 39 Board of Forestry and Fire Protection. Summary of October 2025 Draft Zone 0 Regulation Language. https://34c031f8-c9fd-4018-8c5a-4159cdff6b0d-cdn-endpoint.azureedge.net/-/media/bof-website/projects- and-programs/defensible-space-zones-0-1-2/october-zone-0-summary-and-rule- plead.pdf?rev=927f9551dc7b4f15b8263671cca15ef2&hash=F80F2C5451370BB3C855E38CCCC516D4. Accessed February 17, 2025. 40 Assembly Bill 38, Wood. Fire safety: low-cost retrofits: regional capacity review: wildfire mitigation. Approved October 2, 2019. California-2019-AB38-Chaptered 232 Wildfires Hit Home Page 20 of 74 Orange County Grand Jury 2025-2026 Actions have been taken by the state legislature and the CDI during the last three years to strengthen the property insurance market, increase insurer commitments to write more policies in wildfire-distressed areas, and provide a framework to support homeowners in securing premium reductions from insurers when they take specific actions to reduce their community- and property-level wildfire risk.41 Despite these actions, many homeowners remain vulnerable to dramatic policy premium increases, nonrenewal, or the inability to secure traditional insurance coverage. A recent New York Times article42 cites a 2023 California Association of Realtors survey wherein “nearly 7 percent of realtors surveyed…said that they had deals fall out of escrow that year because buyers couldn’t find adequate, affordable coverage.” As further cited in the article: “The percentage of realtors reporting that they had deals fall through for lack of insurance has more than doubled since 2023, to 16.6 percent.” Unabated Growth of the California FAIR Plan The continuing statewide insurance crisis is further demonstrated by the unabated growth in California FAIR Plan residential insurance policies. The FAIR Plan provides basic fire insurance coverage for eligible high-risk properties when such coverage is demonstrated by the applicant to be unavailable in the traditional insurance market.43 FAIR Plan coverage is limited, relatively expensive, and is the insurer of last resort for these properties. During the period from September 2023 to September 2025, the number of FAIR Plan residential dwelling policies in force (PIF) increased from 320,581 to 625,033 as shown at 41 California Department of Insurance. Sustainable Insurance Strategy. https://ains.assembly.ca.gov/system/files/2023-12/insurance-commissioner-ricardo-lara-california- sustainable-insurance-strategy-presentation-to-assembly-insurance-committee-12-13-2023.pdf. Accessed January 29, 2026. 42 New York Times.California Promised Insurance Relief, But Delivered Loopholes. November 1, 2025. https://www.nytimes.com/2025/11/01/us/los-angeles-california-fire-insurance-regulations.html. Accessed March 25, 2026. 43 The California FAIR Plan. https://www.cfpnet.com/. Accessed March 25, 2026. Figure 6 Total FAIR Plan Dwelling and Commercial Policies Have Increased, September 2023 to September 2025 233 464 ,900 330,275 09/23 09/24 ■ Dwelling PIF Over Time 645,987 20,954 13,101 09/25 Commercial PIF Over Time Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 21 of 74 Figure 6.44 FAIR Plan data for Orange County residential policies in 2022 is shown in Appendix E. The FAIR Plan is a syndicated fire insurance pool comprised of all insurers licensed to conduct property and casualty business in California. The FAIR Plan was established by statute45 in August 1968 as an insurance placement facility and all licensed property/casualty insurers that write basic property insurance are required to be members of the FAIR Plan. The FAIR Plan issues policies on behalf of its member companies, and each member company participates in the profits, losses, and expenses of the FAIR Plan in direct proportion to its market share of business written in the state. The FAIR Plan is not a state agency or public entity; it does not receive public or taxpayer funding. As the total number of FAIR Plan policies continues to grow unabated, so does the financial strain on the overall FAIR Plan fire insurance pool. Insurance Relief for Homeowners: Safer from Wildfires Insurance Regulation The first of the wildfire safety regulatory incentives was the Safer from Wildfires regulation enacted in fall 2022.46 Safer from Wildfires requires insurers to offer premium discounts based, in part, on mandatory factors including community-level wildfire risk mitigation designations and property-level wildfire risk mitigation efforts. Every action taken under Safer from Wildfires qualifies applicants and policyholders for insurance discounts. Safer from Wildfires: Community-Level Wildfire Risk Mitigation There are two examples of community-level wildfire risk mitigation designations listed in the Safer from Wildfire regulation: 1) Fire Risk Reduction Community Listing 47 approved by the Board of Forestry and Fire Protection, and 2) Firewise USA Site Designation 48 approved by the National Fire Protection Association. Other examples of community- level wildfire risk mitigation designations include local Fire Safe Council supported by the California Fire Safe Council, Community Wildfire Protection Plan supported by the 44 Key Statistics & Data. The California FAIR Plan. https://www.cfpnet.com/key-statistics-data/. Accessed March 25, 2026. 45 California Insurance Code sections 10090 et seq. https://law.justia.com/codes/california/code- ins/division-2/part-1/chapter-9/section-10090/. Accessed April 21, 2026. 46 California Code of Regulations, Title 10, Section 2644.9 47 Fire Risk Reduction Community listed by the Board of Forestry and Fire Protection pursuant to Public Resources Code Section 4290.1. https://bof.fire.ca.gov/projects-and-programs/fire-risk-reduction- community-list. Accessed February 10, 2026. 48 Firewise USA program managed by National Fire Protection Association (NFPA). https://www.nfpa.org/Education-and-Research/Wildfire/Firewise-USA. Accessed April 21, 2026. 234 Wildfires Hit Home Page 22 of 74 Orange County Grand Jury 2025-2026 U.S. Fire Administration, and the Wildfire Prepared Neighborhood™ Pilot Program 49 being launched by the Insurance Institute for Business & Home Safety (IBHS). Safer from Wildfires: Property-Level Wildfire Risk Mitigation Safer from Wildfires also requires insurers to offer premium discounts based, in part, on the reduced wildfire risk resulting from each and every property-level wildfire risk mitigation action. These individual property-level wildfire risk mitigation efforts include measures addressing the immediate surroundings of a building and building hardening. The IBHS offers homeowner guidance based on its research,50 and a property-level Wildfire Prepared Home™ designation51 that recognizes mitigation measures addressing both immediate surroundings and home hardening. Safer from Wildfires: Property-Level Measures Addressing Immediate Surroundings - Defensible Space The following measures are specified in Safer from Wildfires to address the immediate surroundings of a building. Each of these actions qualifies for insurance discount: a. Clearing of vegetation and debris from under decks b. Clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects from the area within five (5) feet of the building c. Use of only noncombustible materials in any improvements to the property, including fences and gates situated within five (5) feet of the building d. Removal or absence of combustible structures, including sheds and other outbuildings, from the area within thirty (30) feet of the building or as much of such area as is under the control of the applicant or policyholder e. Whether the property upon which the building is situated complies with state or local defensible space requirements, as applicable Safer from Wildfires: Property-Level Building Hardening Measures The following building hardening measures are specified in Safer from Wildfires. Each of these actions qualifies for insurance discount: a. Class-A fire rated roof b. Enclosed eaves 49 Institute for Business & Home Safety. Wildfire Prepared Neighborhood Pilot Program. https://wildfireprepared.org/wildfire-prepared-neighborhood-pilot-program/. Accessed March 19, 2026. 50 IBHS Research. Wildland Fire Embers and Flames: Home Mitigations That Matter. April 2023. https://ibhs1.wpenginepowered.com/wp-content/uploads/Home-Mitigations-that-Matter-FINAL.pdf . Accessed February 10, 2026. 51 Institute for Business & Home Safety. Wildfire Prepared Home: Take Proven Steps to Reduce Your Risk. https://wildfireprepared.org/. Accessed March 19, 2026. 235 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 23 of 74 c. Fire-resistant vents d. Multipane windows, including dual pane windows, or functional shutters, which when closed, cover the entire window and do not have openings e. At least six (6) inches of noncombustible vertical clearance at the bottom of the exterior surface of the building, measured from the ground up Safer from Wildfires: Optional Factors The Safer from Wildfires regulation also incorporates other optional factors that are substantially related to risk of wildfire loss. These optional factors may include, but are not limited to: fuel, slope, access, aspect, structural characteristics, wind, and other community-level or property-level mitigation efforts, or designations as recommended by a state or local fire safety agency or organization as reducing wildfire risk. Reducing Wildfire and Insurance Risk: AB888 The California Safe Homes Grant Program AB888 established the California Safe Homes Grant Program in October 2025 to be developed and administered by the Department of Insurance for the purpose of achieving the following goals: (1) Reducing local and statewide wildfire losses (2) Improving insurability and resilience of vulnerable communities (3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the department’s rules. Eligible California Safe Home Grant Program applicants include qualifying individuals and qualifying cities, counties, and special districts. For individuals, grant funds may be awarded if the following criteria are met: (1) The property of the applicant is covered by an admitted insurer or the California FAIR Plan (2) The property of the applicant is in a ZIP Code that overlaps with a High or Very High FHSZ. (3) The income of the applicant is no higher than the low-income limit for the county in which they reside 236 Wildfires Hit Home Page 24 of 74 Orange County Grand Jury 2025-2026 As of January 1, 2026, the Department of Insurance was developing the grant application portal and planned to begin accepting California Safe Homes Grant applications in spring 2026.52 Our Shared Responsibilities Orange County Fire Authority (OCFA) OCFA serves all unincorporated areas of Orange County and its 23 Orange County member cities. The OCFA Board of Directors is made up of elected officials from the County and its member cities. The 11 Orange County cities that are not served by OCFA have their own city fire departments, i.e., their own fire service agencies having jurisdiction. The list of OCFA member cities and other Orange County fire service agencies is included at Appendix F. OCFA education and outreach programs are comprehensive. Online materials and event scheduling is accessible at their website. and a staff of seven community education specialists and a community education supervisor are available to coordinate and attend events. The Wildfire Preparedness53 webpages cover multiple topic areas including:  Ready, Set, Go!  Home Assessment  Defensible Space Disclosure Inspection  Pest Control (tree pests management)  Immediate Zone  FHSZ Maps  Insurance  Contractors (specializing in wildfire preparedness) OCFA takes a systematic approach to mitigating risk through its Community Risk Reduction Department (formerly Fire Prevention). OCFA Community Risk Reduction (CRR) staff identifies community risks, collaborates with developers, agencies, and residents to build and maintain safe communities.54 In addition to the extensive Wildland Preparedness webpages, the CRR department webpages include a section on Wildland & Vegetation with specific information for homeowners in wildland interface areas. The CRR department supports homeowners’ risk reduction efforts by providing an online 52 CalMatters. California homeowners could qualify for grants for new roofs and fire safety. January 1, 2026. https://calmatters.org/economy/2026/01/california-safe-homes-grants/. Accessed February 17, 2026. 53 Orange County Fire Authority. Wildfire Preparedness. https://ocfa.org/ready-set-go/. Accessed February 24, 2026. 54 Orange County Fire Authority. About Us. Departments. https://ocfa.org/about- us/departments/community-risk-reduction/. Accessed February 24, 2026. 237 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 25 of 74 home assessment tool55 that covers the basics of both home hardening and defensible space principles. The online assessment tool guides the homeowner through a series of questions and ends with the opportunity to receive an emailed report providing recommendations for fire mitigation strategies. Before beginning the online questionnaire, homeowners are given the option to request an in-person home assessment with an OCFA Fire Prevention Specialist. Fire Hazard Severity Zone Survey Results - Local Governments and Fire Service Agencies This investigation included a survey of Orange County cities to gather information about their efforts to reduce risk of wildfire in WUI areas and their outreach programs for homeowners. The Grand Jury invited 34 Orange County cities to respond to the survey and received 28 responses. Of these 28 responses, 20 were from various city departments, and eight were from city fire departments. The Orange County cities that responded to the survey reported having from zero to 100% of their city land area within Moderate, High, or Very-High FHSZs. Reported land areas may not match each individual city’s FHSZ map. A summary of the survey results for city area reported in FHSZs are shown at Figure 7: 55 Orange County Fire Authority. Home Assessment Tool. https://ocfa.org/ready-set-go/home- assessment/. Accessed February 24, 2026. 238 Wildfires Hit Home Page 26 of 74 Orange County Grand Jury 2025-2026 City Area Reported in Fire Hazard Severity Zones % of Responding Cities # of Responding Cities No area in FHSZ 21% 6 Some area in FHSZ (not quantified) 14% 4 2% to 25% in FHSZ 25% 7 26% to 50% in FHSZ 18% 5 51% to 75% in FHSZ 11% 3 76% to 100% in FHSZ 11% 3 Figure 7 City Area Reported in Fire Hazard Severity Zones 11 of 28 responding cities reported having achieved or have applications pending approval for community-level wildfire risk mitigation designations. Achievement of community-level wildfire risk mitigation designations is a significant way local governments, local fire departments, unincorporated areas, and special districts can reduce wildfire and insurance risk for their residents. A summary of the survey results for cities that have achieved or applied for community-level wildfire risk mitigation designation are shown at Figure 8. 21% 14% 25% 18% 11% 11% City Area Reported in Fire Hazard Severity Zones No area in FHSZ Some area in FHSZ (not quantified) 2% to 25% in FHSZ 26% to 50% in FHSZ 51% to 75% in FHSZ 76% to 100% in FHSZ 239 City Area Reported in Fire Hazard Severity Zones ■ No area in FHSZ ■ Some area in FHSZ (not quantified) ■ 2% to 25% in FHSZ ■ 26% to 50% in FHSZ ■ 51 % to 75% in FHSZ ■ 76% to 100% in FHSZ City Area Reported in %of # of Responding Responding Fire Hazard Severity Zones Cities Cities No area i n FHSZ 21 % 6 Some ar ea i n FHSZ (not quant ified) 14% 4 2% to 25 % in FHSZ 25 % 7 26 % to 50 % i n FHSZ 18% 5 51 % to 75 % i n FHSZ 11% 3 76 % to 100% in FHSZ 11% 3 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 27 of 74 Achieved, Applied for, or Plan to Apply for a Community-Level Wildfire Risk Mitigation Designations % of Responding Cities # of Responding Cities Yes 39% 11 No 61% 17 In progress 0% 0 Figure 8 Cities Reporting Achieved, Applied for, or Plan to Apply for a Community-Level Wildfire Risk Mitigation Designation 16 of 28 responding cities reported having an outreach program that provides information and guidance to property owners on wildfire risk mitigation measures and grant programs. A summary of the survey results on cities reporting whether they have these outreach programs in place are shown at Figure 9. These outreach programs are needed to help homeowners achieve awareness and ability to plan and take actions required to reduce individual and community wildfire and insurance risk. 39% 61% 0% Cities That Have Achieved, Applied for, or Plan to Apply for a Community-level Wildfire Risk Mitigation Designation Yes No In progress 240 Cities That Have Achieved, Applied for, or Plan to Apply for a Community-level Wildfire Risk Mitigation Designation ■ Yes ■ No ■ In progress Achieved, Applied for, or Plan to Apply %of # of for a Community-Level Wildfire Risk Responding Responding Mitigation Designations Cities Cities Yes 39 % 11 No 61 % 17 In progress 0 % 0 c=:,..., .......... o ,,...:J.: ......... n .............. .,..J.:.,..,,... A ..... i...: ..... , 1,....;-J A ......... 1: ..... ,.,1 " ..... .,. ..... .,. n,,.., .... 4,,... A ......... ,.,,.& ..... .,. ..... Wildfires Hit Home Page 28 of 74 Orange County Grand Jury 2025-2026 Outreach Program to Provide Information and Guidance to Property Owners on Wildfire Risk Mitigation Measures and Grants % of Responding Cities # of Responding Cities Yes 57% 16 No 29% 8 In progress 14% 4 Figure 9 Cities Reporting Outreach Program to Provide Information and Guidance to Property Owners on Wildfire Risk Mitigation Measures and/or Grants 11 of the 16 cities reported having their own outreach programs, are Orange County Fire Authority (OCFA) member cities, and referred to one or more of OCFA’s comprehensive programs and resources (see Figure 10). While OCFA member cities’ use of OCFA outreach programs and resources is efficient and beneficial to their residents, the availability of a direct local contact at the city who is knowledgeable and can provide even a minimum of information and guidance on wildfire mitigation resources would help remove barriers to homeowners’ actions to reduce wildfire risk. 57%29% 14% Cities That Have an Outreach Program to Provide Information and Guidance to Property Owners on Wildfire Risk Mitigation Measures and/or Grants Yes No In progress 241 Cities That Have an Outreach Program to Provide Information and Guidance to Property Owners on Wildfire Risk Mitigation Measures and/or Grants ■ Yes ■ No ■ In progress Outreach Program to Provide Information %of # of and Guidance to Property Owners on Responding Responding Wildfire Risk Mitigation Measures and Cities Cities Grants Yes 57 % 16 No 29 % 8 In progress 14% 4 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 29 of 74 Outreach Program Refers to Orange County Fire Authority Programs and Resources % of Responding Cities # of Responding Cities Yes 55% 11 No 45% 9 Figure 10 Cities Reporting Their Outreach Program Refers to Orange County Fire Authority Outreach Programs and Resources Orange County Homeowners Associations Play an Important Role According to the California Community Managers Association, there are 4,927 homeowners associations (HOA) in Orange County, and 82% of Orange County residents live in HOAs.56 These HOAs communicate directly with their residents, and thus have the ability to mobilize people and resources to effectively achieve and maintain community-level wildfire risk mitigation designations and reduce their residents’ homeowner insurance premiums. HOAs are the local contact for their residents, and through their architectural and landscape standards can effectively communicate information on home hardening and defensible space requirements. HOAs often host community leaders and local fire service agencies for fire prevention workshops and other outreach events for HOA residents. Their local contact function can also provide information and organize opportunities to volunteer and support local fire prevention overall through activities such as Citizens Brigade57 and Bike Brigade.58 These HOA-hosted workshops, outreach 56 California Association of Community Managers. Estimated number of residents living in HOAs based on average of 2010-2014 Census reports of 3.04 persons per household. www.cacm.org. 57 Weathered: After the LA Firestorm. PBS, KCET, 2026. 58Ellis, Rebecca. Los Angeles Times. January 10, 2026. Topanga Canyon felt abandoned. So residents are banding together to fight fire. https://www.latimes.com/california/story/2025-01-10/topanga-canyon- felt-abandoned-so-residents-are-banding-together-to-fight-fire. Accessed March 6, 2026. 55% 45% Cities With an Outreach Program That Refers To OCFA Programs and Resources Yes No 242 Cities With an Outreach Program That Refers To OCFA Programs and Resources ■ Yes ■ No Outreach Program Refers to Orange %of # of County Fire Authority Programs and Responding Responding Resources Cities Cities Yes 55 % 11 No 45 % 9 Wildfires Hit Home Page 30 of 74 Orange County Grand Jury 2025-2026 events, and local contact functions are effective means to help homeowners achieve awareness and ability to plan and take actions necessary to reduce wildfire and insurance risk. HOAs often have significant responsibility for large open space areas of Orange County that can total hundreds of acres of fuel modification zones. The HOAs’ collaborative role with local fire service agencies in managing these fuel modification zones is as important as their role with HOA residents in the shared responsibilities for wildfire and insurance risk reduction. Homeowners are Responsible for Reducing Home Ignition Potential Fire science research has demonstrated that ignition-resistant homes can survive wildfire without firefighter protection.59 Where there are enough ignition-resistant homes, the WUI fire chain of events can be broken to prevent fire disasters, and these homes can escape destruction or survive undamaged. Taking the actions necessary to make homes ignition resistant to windborne embers is the responsibility of homeowners. The role of the homeowner is critical in the shared responsibilities for reducing wildfire and insurance risk in WUI areas. Homeowners need support from local governments and fire service agencies to achieve the awareness and ability to plan and take actions necessary to make homes ignition resistant. This support is most effectively delivered through local outreach programs ; effective communications in outreach programs have been found to be the more local, personalized efforts such as one-on-one consultation with fire experts, townhall events, small workshops, tours, and demonstrations.60 For example, provision of in-person or online home assessments that result in written recommendations to homeowners for specific wildfire risk mitigation actions. Documentation of the recommended actions taken can then be presented to homeowners’ insurers for the insurance discounts required by Safer from Wildfires. Safer from Wildfires home hardening and defensible space measures protect homes and communities, save homeowners, local governments, and fire authorities as well as insurance companies from catastrophic loss while also providing discounts for homeowners’ insurance premiums. Reducing wildfire risk in the wildland-urban interface helps ensure that insurance coverage remains accessible. California’s wildfire and insurance crisis demands coordinated action from local governments and fire authorities, communities, and homeowners to reduce risk of wildfire. 59 Cohen, The Wildland-Urban Interface Fire Problem, 23. 60 Gammanco, The Return of Conflagration, 34. 243 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 31 of 74 FINDINGS In accordance with California Penal Code Sections 933 and 933.05, the 2025-2026 Orange County Grand Jury requires (or, as noted, requests) responses from each agency affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation “Wildfires Hit Home” the 2025-2026 Orange County Grand Jury has arrived at the following six findings: F1 More frequent and severe wildfires driven by increasingly hotter, drier, and windier conditions in the Orange County wildland-urban interface are escalating impacts on financial and non-financial resources. Among the financial costs are dramatic increases in homeowners’ insurance premiums, nonrenewals, and inabilities to obtain insurance. F2 Actions that address conditions in the home ignition zone to significantly reduce ignition potential can prevent a community wildland-urban interface fire disaster or suburban conflagration. F3 Expanded engagement with the community to raise awareness and provide support regarding home hardening and defensible space will increase effectiveness of wildfire risk mitigation and insurance risk reduction efforts. F4 Achievement of community-level and property-level wildfire risk mitigation designations (such as Firewise USA Site, Fire Risk Reduction Community or Insurance Institute for Business and Home Safety certification) lessens wildfire risk and helps reduce insurance premium costs. F5 All county residents should be made aware that Safer from Wildfire regulation requires insurers to provide discounts to homeowners and communities that implement home hardening and defensible space measures regardless of whether a property is located within a Fire Hazard Severity Zone. F6 AB888, California Safe Homes Grant Program, provides financial assistance to eligible homeowners, cities, counties, and special districts for home hardening and defensible space measures. Applying for and using these grant funds will reduce wildfire losses and improve insurability and resilience of vulnerable communities. 244 Wildfires Hit Home Page 32 of 74 Orange County Grand Jury 2025-2026 RECOMMENDATIONS In accordance with California Penal Code Sections 933 and 933.05, the 2025-2026 Orange County Grand Jury requires (or, as noted, requests) responses from each agency affected by the recommendations presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court. Based on its investigation described herein, the 2025-2026 Orange County Grand Jury makes the following recommendations: R1 By December 31, 2026, the Orange County Board of Supervisors should plan to host a county-wide annual wildfire prevention fair for the County and all cities and fire service agencies, including Orange County Fire Authority, to showcase respective wildfire outreach programs, and for the first annual wildfire prevention fair to be scheduled no later than December 31, 2027. [F1, F2, F3, F4, F5, F6] R2 By December 31, 2026, cities and fire service agencies, including Orange County Fire Authority should commit to participation in a county-wide annual wildfire prevention fair planned by the Orange County Board of Supervisors to showcase wildfire prevention outreach programs. [F1, F2, F3, F4, F5, F6] R3 By December 31, 2026, cities, unincorporated areas, special districts, and fire service agencies in High and Very-High Fire Hazard Severity Zones should initiate planning activities to achieve community-level wildfire risk mitigation designations and/or establish a local Fire Safe Council within one year. [F4, F5, F6] R4 By December 31, 2026, to ensure city residents are engaged and aware of wildfire risk reduction resources, OCFA member and non-member cities should provide information, develop their own outreach program, and establish a direct contact person(s) for their residents. This is in addition to whatever referrals or references made to OCFA outreach programs. [F1, F2, F3, F4, F5, F6] 245 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 33 of 74 COMMENDATIONS Yorba Linda Water District The 2025-26 Orange County Grand Jury extends its special thanks to the Yorba Linda Water District (YLWD) for providing two tours of its facilities, including their non-portable Heli-Hydrants™. The YLWD with foresight and planning installed three Heli-Hydrant™ facilities. One of the tanks was the first to be installed in Southern California. These innovative tanks enable fire department helicopters to access water more quickly and efficiently, improving helicopter firefighting capabilities in areas where wildland vegetation and human development intersect, such as in the Yorba Linda service area. Newport Beach Fire Department The 2025-2026 Orange County Grand Jury acknowledges and recognizes the Newport Beach Fire Department for their outstanding and continuing efforts to lead the Southern California region in dedication and adherence to the highest level of fire protection and safety. They are a role model for other cities in Orange County and elsewhere. In 2024, the Insurance Services Office honored Newport Beach Fire Department as a Top Tier Class 1 fire agency through its Public Protection Classification Program Newport Beach Fire Department shares the Top Tier Class 1 designation with only about 1% of the top fire departments nationwide. The Grand Jury particularly commends Newport Beach Fire Prevention leadership, who generously dedicated time and expertise to share insights from their extensive knowledge of fire science. Source: 2025-2026 Grand Jury 246 Wildfires Hit Home Page 34 of 74 Orange County Grand Jury 2025-2026 REQUIRED RESPONSES California Penal Code Section 933 requires the governing body of any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the governing body. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court). Additionally, in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official (e.g., District Attorney, Sheriff, etc.), such elected County official shall comment on the findings and recommendations pertaining to the matters under that elected official’s control within 60 days to the Presiding Judge with an information copy sent to the Board of Supervisors. The following excerpts from the California Penal Code provide the requirements for public agencies to respond to the Findings and Recommendations of this Grand Jury report: §933 (c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and every elected county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All of these comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impaneled grand jury, where it shall be maintained for a minimum of five years. §933.05. (a) For purposes of subdivision (b) of Section 933, as to each grand jury finding, the responding person or entity shall indicate one of the following: 247 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 35 of 74 (1) The respondent agrees with the finding. (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons, therefore. (b) For purposes of subdivision (b) of Section 933, as to each grand jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six months from the date of publication of the grand jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation, therefore. (c) However, if a finding or recommendation of the grand jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the board of supervisors shall respond if requested by the grand jury, but the response of the board of supervisors shall address only those budgetary or personnel matters over which it has some decision-making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. The Orange County Grand Jury requires the following responses: Orange County Board of Supervisors 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R1, R2, R3 248 Wildfires Hit Home Page 36 of 74 Orange County Grand Jury 2025-2026 Orange County Fire Authority Board of Directors 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3 City of Aliso Viejo 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Anaheim 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Brea 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Buena Park 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Costa Mesa 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Cypress 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 249 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 37 of 74 City of Dana Point 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Fountain Valley 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Fullerton 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Garden Grove 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Huntington Beach 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Irvine 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of La Habra 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 250 Wildfires Hit Home Page 38 of 74 Orange County Grand Jury 2025-2026 City of La Palma 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Laguna Beach 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Laguna Hills 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Laguna Niguel 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Laguna Woods 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Lake Forest 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Los Alamitos 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 251 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 39 of 74 City of Mission Viejo 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Newport Beach 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Orange 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Placentia 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Rancho Santa Margarita 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of San Clemente 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of San Juan Capistrano 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 252 Wildfires Hit Home Page 40 of 74 Orange County Grand Jury 2025-2026 City of Santa Ana 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Seal Beach 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Stanton 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Tustin 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Villa Park 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 City of Westminster 90 Day Response Requested Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R4 City of Yorba Linda 90 Day Response Required Findings: F1, F2, F3, F4, F5, F6 Recommendations: R2, R3, R4 253 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 41 of 74 Acronyms AB Assembly Bill B Brush BCR Benefit Cost Ratio CAL FIRE California Department of Forestry and Fire Protection CAL OES California Governor’s Office of Emergency Services CC Contract Counties CDI California Department of Insurance CRR Community Risk Reduction CWUIC California Wildland-Urban Interface Code FAIR Fair Access to Insurance Requirement FEMA Federal Emergency Management Agency FHDS Fire Hardening and Defensible Space FHSZ Fire Hazard Severity Zone G Grass HOA Homeowners Association IBHS Insurance Institute for Business & Home Safety ® IWUIC International Wildland-Urban Interface Code LRA Local Responsibility Area NFPA National Fire Protection Association OCFA Orange County Fire Authority P&C Property and Casualty PIF Policies in Force SB Senate Bill SRA State Responsibility Area USDA United States Department of Agriculture 254 Wildfires Hit Home Page 42 of 74 Orange County Grand Jury 2025-2026 USFS United States Forest Service WRAP Wildfire Risk Reduction and Asset Protection WUI Wildland-Urban Interface YLWD Yorba Linda Water District 255 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 43 of 74 Glossary Aspect Compass direction that a slope or terrain surface faces, influencing sunlight exposure, temperature, and vegetation. Catastrophic loss A sudden, severe, and often, widespread event resulting in extreme financial, loss of life, or permanent injury. Class-A roof Highest fire resistance classification for a roof assembly, signifying its effectiveness against severe fire exposure. Conflagration A particularly large and destructive fire; in the built environment, this may describe a fire that spreads via structure to structure. Defensible space Buffer zone created and managed between buildings and surrounding wildland area to protect buildings from embers, flames, or heat, slow or stop wildfire spread, and help ensure safety of firefighters. Ember Small piece of burning or glowing fragment from a fire. Ember-resistant Refers to features that reduce the risk of ignition from embers. Ember spot ignition Refers to one of the principal ways homes can ignite during extreme WUI fires, by embers directly on a house. Firebrands Refers to airborne embers; pieces of burning wood. Firewise USA Program administered by NFPA® and co-sponsored by the USDA Forest Service and the National Association of State Foresters. Fuel modification zone Designated area where vegetation is managed to reduce wildfire risk for protection of homes and communities. Fuel reduction Management of vegetation to reduce risk of wildfires. Heli-Hydrant™ Patented rapid-fill water tank system for helicopter firefighting operations. Home hardening Utilizing building materials, construction methods and maintenance practices to increase resistance to ignition from fire exposure. Home ignition potential Susceptibility of a home and its immediate surroundings within 100 feet (thirty meters) to ignite during a wildfire. Home ignition zone A home and its immediate surroundings within 100 feet (thirty meters). 256 Wildfires Hit Home Page 44 of 74 Orange County Grand Jury 2025-2026 Ignition Process leading to the onset of a sustained combustion reaction ; “start of a fire.” Ignition-resistant Refers to materials and construction methods designed to resist ignition or sustained flaming combustion; difficult to catch fire when exposed to direct flame or heat. Wildland fuels Burnable plant materials that can act as fuel during wildfires, including grasses, shrubs, trees, dead leaves, and fallen pine needles. Zone 0 Ember-resistant defensible space within the first five feet around a structure, required for properties in State Responsibility Area or Very High Fire Hazard Severity Zone in the Local Responsibility Area. 257 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 45 of 74 Bibliography 2025 California Wildland-Urban Interface Code, Title 24, Part 7, 2024 IWUIC Amended, Effective Date: Jan 01, 2026. Accessed January 22, 2026. https://codes.iccsafe.org/content/CAWUIC2025P2. 2025 California Wildland-Urban Interface Code, Title 24, Part 7, 2024 IWUIC Amended, Effective Date: Jan 01, 2026. Accessed January 22, 2026. https://codes.iccsafe.org/content/CAWUIC2025P2/chapter-6-fire-protection- requirements. Artemis. “Golden Bear Re Ltd. (Series 2026-1).” Artemis Deal Directory. Accessed February 1, 2026. https://www.artemis.bm/deal-directory/golden-bear-re-ltd-series-2026- 1/. 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Accessed March 8, 2026. https://www.cfpnet.com/key-statistics-data/ Thompson, Andrea. How the Ferocious Santa Ana Winds are Fueling the Palisades Fire. Scientific American. Accessed January 7, 2026. http://www.scientificamerican.com United Policyholders – WRAP Resource Center and Safer from Wildfires Initiative U.S. Fire Administration. What is the WUI? Accessed November 25, 2025. https://www.usfa.fema.gov/wui/what-is-the-wui/ Weathered: After the LA Firestorm. Directed by Trip Jennings. Presented by Maiya May. PBS, 2026. 56 min. Wildland-Urban Interface. Forest Service, U.S. Department of Agriculture. Accessed January 12, 2026. https://research.fs.usda.gov/nrs/fire/wui. Yufang, Jin, et al. Identification of two distinct fire regimes in Southern California: implications for economic impact and future change . Environmental Research Letters, Volume 1, Number 9. IOP Science, September 8, 2015. Accessed January 9, 2026. https://iopscience.iop.org/article/10.1088/1748-9326/10/9/094005. “ZIP Codes in Orange County, California.” Felt.com. Accessed November 11,2025. https://felt.com/map/ZIP-Codes-in-Orange-County-California- GX3e19BKrS5uwCICY3r5gFD?loc=33.6408,-117.7804,9z . 262 Wildfires Hit Home Page 50 of 74 Orange County Grand Jury 2025-2026 Appendix A CAL FIRE Wildfire Data Source: CalFire Redbook Data Figure 11 Top 20 Deadliest California Wildfires 263 Top 20 Deadliest California Wildfires FIRE NAME (CAUSE) DATE COUNTY 1 CA1\1P F IRE {Powerlines) November 2018 Butte GRIFFITH PARK (Unknown) October 1933 Los Angeles 3 TUNNEL -Oakla nd Hills (Rekindle) October 1991 Alameda 4 TUBBS (Electrical) October 20 17 Napa & Sonoma 5 EATON (Under I nvestigation)* January 2025 Los Angeles 6 NORTH COMPLEX (Lightning) August 2020 Butte, Plumas, & Yuba CEDAR (H uman Related) October 2003 San Diego 8 RATTLESNAKE (Arson) July 1953 Glenn PALISADES (Under Investigation)* January 2025 Los Angeles 10 LOOP {Unknown) November 1966 Los Angeles 11 HAUSER CREEK (Human Related) October 1943 San Diego 12 INAJ A (Hu man Related) November 1956 San Diego 13 IRON ALPS COMPLEX (Ligh tning) August2008 Trinity 14 REDWOOD VALLEY (Power Lines) October 201 7 Mendocino 15 HARRIS (Undetermined) October 2007 San Diego 16 CANYON (Unknown) August 1968 Los Angeles 17 CARR {Human R elated) July 2018 Shasta County, Trinity 18 LNU Lightning Comp lex (L ightning I Arson) August 2020 Na pa/SonomaNolo/Stanislaus/ Lake 19 ATLAS (Powe rline) October 20 17 Napa & Solano 20 OLD {Human Related) October 2003 San Bernardino ** Fires with the same death count are listed by most recent. Several fires ha\'e had 4 fatalties, b u t only t he most recent are listed. ***This list does not include fire jurisdiction. These are the Top 20 regardless of whether t h ey were staie, federal, or local responsibilit y ACRES 153,336 47 1,600 36,807 14,02 1 318,935 273,246 1,340 23,707 2,028 13,145 43,904 105,855 36,523 90,440 22,197 229,65 1 363,220 5 1,624 91,28 1 STRUCTURES 18,804 0 2,900 5,643 9,413 2,352 2,820 0 6,833 0 0 0 10 544 548 0 1614 1,491 781 1,003 DEATHS 85 29 25 22 19 15 15 15 12 12 11 11 10 ~ ~ 7/2512025 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 51 of 74 Source: CalFire Redbook Data Figure 12 Top 20 Most Destructive California Wildfires 264 Top 20 Most De structive California Wildfires FIRE NAME (CAUSE) DATE COUNTY ACRES STRUCTURES DEATHS I CAMP (Po werlines) November 2018 Butte 153,336 18,804 85 2 EATON (Under In vestigation)* January 2025 Los Angele s 14,02 1 9,413 19 3 PALISADES (Under In vestigation)* January 2025 Los Ange les 23,707 6,833 12 4 TUBBS (Electrical) October 2017 Napa & Sonoma 36,807 5 ,636 22 5 TUNNEL -Oakland Hills (R ekindle) Octobe r 1991 Alameda 1,600 2,900 25 6 CEDAR (Human Related) October 2003 San Diego 273,246 2,820 15 7 NORTH COMPLEX (Lightning) August, 2020 Butte, Plumas, & Yuba 3 18,935 2,352 15 ' VALLEY (E lectrical) September 2015 Lake, Napa & Sonoma 76,067 1,955 4 9 WITCH (Powerlines) October 2007 San Diego 197,990 1,6 50 2 10 WOOLSEY (Electrical) November 2018 Ventura 96,949 1,6 43 3 II CARR (H uman R elated) July 2018 Shasta County, Trinity 229,65 1 1,614 8 12 GLASS (Undetermined) September 2020 Napa & Sonoma 67,484 1 ,52 0 0 13 LNU LIGHTNING COM PLEX August 2020 Napa, Solano, Sonoma, Yolo, 363,220 1,491 6 (Liphtninp I Arson) Lake, & Colusa 14 CZU LIGHTNING COMPLEX (Lightning) August 2020 Santa Cruz, San Mateo 86,509 1,4 90 15 NUNS (Powerline) October 2017 Sonoma 54,382 1,355 3 16 DIXIE (Powerline) July 2021 Butte, Plumas, Lassen, & Tehama 963,309 1,311 17 THOMAS (Powerline) December 2017 Ventura & Santa Barbara 281,893 1,063 2 IS CALDOR (Under I nvestigation) September 2021 Alpine, Amador, & El Dorado 221,774 1,003 19 OLD (H uman R elated) October 2003 San Bernardino 91 ,281 1,00 3 6 20 JONES (Undetermined) Octobe r 1999 Shasta 26,200 954 "Structures" include homes, outbuildings (barns, garages, sheds, etc) and commercial properties destroyed. ' This list does not include fire jurisdiction. These are the Top 20 regardless of whether they were state, federal, local or tribal responsibility. *Numbers not final *DIXS Disclaimer: These numbers are preliminary based on aerial assessments dedicating heat sources which can include chicken coops, outbuildings, sheds, water containers, etc. *Validated inspections are cun-ently being ground-verified by Damage Assessment Teams. 7/25/2025 Wildfires Hit Home Page 52 of 74 Orange County Grand Jury 2025-2026 Figure 13 Large Fires 300 Acres and Greater - State and Contract Counties Direct Protection Area Figure 14 Orange County Wildfires by Size 265 Date Incident# ORC-127883 CNF-405 ORC-136890 ORC-121612 ORC-121364 CNF-2664 ORC-110494 ORC-1478 CNF-2873 ORC-045067 Notes: B • Brush G• Grass County ORANGE RIVERSIDE ORANGE ORANGE ORANGE ORANGE ORANGE RIVERSIDE ORANGE ORANGE ORANGE ORANGE Fire Na me Start AIRPORT 9/9/24 JIM 3/2/22 BOND 12/2/20 BLUE 10/26/20 RIDGE SILVERADO 10/26/20 HOLY 8/6/18 CANYON2 10/9/17 CANYON 9/25/17 SILVERADO 9/12/14 CARBON 7nt11 CANYON CC · Contract Counties USFS • United States Forest Service Source: CalFire Redbook Data Year County 2024 Orange 2023 Orange 2022 Orange 2021 Orange 2020 Orange 2019 Orange 2018 Orange 2017 Orange 2016 Orange 2015 Orange 2014 Orange 2013 Orange 2012 Orange 2011 Orange 2010 Orange 2009 Orange 2008 Orange 2008-2024 Annualized Fire Name Airport - Jim - Bond, Blue Ridge, Silverado Holy Canyon , Canyon 2 - - Silverado - Carbon Canyon - - - Conta ine d 10/5/24 3/9/22 12/11/20 11 /7/20 11 /7/20 9/14/18 10/17/17 10/3/17 9/20/14 7/8/11 Total 39 28 30 7 45 46 57 71 42 3 8 13 19 10 7 10 8 26.1 Direct Protection Acre s Area Burn ed cc 23,526 USFS 553 cc 6,686 cc 13,694 cc 12,466 USFS 23,025 cc 9,217 cc 2,662 USFS 985 CALFIRE/CC 508 A B <0.25 0.26-9.99 Acres Acres 31 5 18 10 23 4 5 2 33 7 36 7 49 5 56 12 33 4 2 1 6 1 12 1 16 2 9 0 1 5 6 0 6 2 20.1 4.0 Yellow highUght signifies named fires including fires that spa n both Orange and Riverside counties Source: Calfire Redbook Data Structu res Fata lities Vegetation Ca use Typ e Destroyed Da m age d Firefighters Civilians B,G EQUIPMENT 160 34 B,G HUMAN B,G STRUCTURE 31 21 B,G UNDETERMINED 1 12 B,G UNDER 5 11 INVESTIGATION B,G ARSON 24 18 B,G MISCELLANEOUS 25 55 B,G MISCELLANEOUS 7 B UNDETERMINED B UNDETERMINED C D E F G 10 -99 100-299 300 -999 1000-4999 >5000 Acres Acres Acres Acres Acres 1 1 0 0 1 0 0 0 0 0 0 2 1 0 0 0 0 0 0 0 2 0 0 0 3 2 1 0 0 0 0 2 0 0 1 1 0 0 1 1 5 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 1 0 0 0 0 3 1 0 0 0 0 0 0 0 0 0.9 0.4 0.2 0 .1 0.4 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 53 of 74 Appendix B Safer from Wildfires Flyer Figure 15 Safer from Wildfires Flyer, Page 1 266 Being • • Saler from W1ldf1res Can Help With Your Insurance Safer from Wildfires is a ground-up approach to wildfire resilience with three layers of protection - for the structure, the immediate surroundings, and the community. Following these achievable steps can help you save money on your insurance. , ... ~} ••. (i) ;:•"::,. ~ ·~· ""-." CalOES -............ ,,,,c, Public Utilities Commission ., u,u,uc• HIIVICU Safer from WildfJres was created by an interagency partnership between Insurance Commissioner Ricardo Lara and the emergency response and readiness agencies in Governor Gavin Newsom's administration. Learn more at insurance .ca .gov Wildfires Hit Home Page 54 of 74 Orange County Grand Jury 2025-2026 Figure 16 Safer from Wildfires Flyer, Page 2 267 3 Ways to Get Started with Safer from Wildfires Don't know where to start? Here are 3 low-cost steps you can take today. Keep embers out Installing 1/16 to 1/8 inch noncombustible, corrosion-resistant metal mesh screens over attic vents can keep wind-blown embers out of your house. Do more, save more Clear the first 5 feet Removing greenery and replacing wood chips with stone or decomposed granite 5 feet around your home prevents fire from getting a foot in the door. Every action under Safer from Wildfires will qualify you for an insurance discount. By doing more, you can save more. Class A fire-rated roof 5-foot ember-resistant zone around the structure Noncombustible 6 inches at the bottom of walls Ember-and fire -resistant vents Double pane windows or added shutters Enclosed eaves Cleared vegetation and debris from under decks Move sheds and outbuildings at least 30 feet away Trim trees and remove brush in compliance with state and local defensible space laws Neighborhoods can form a Firewise USA community Cities, counties, and local districts can become certified as a Fire Risk Reduction Community Be safer together With Firewise USA, communities as smal l as 8 dwelling units or as big as 2,500 can create an action plan and start being sa fer together. Firewise USA is a nationally recogn ized program with proven results, sponsored by the National Fire Prevention Association. Scan to find more resources Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 55 of 74 Appendix C Fire Hazard Severity Zone Map of Orange County Figure 17 Fire Hazard Severity Zone Map of Orange County 268 erton r-:===~:!,::== -=I Anahe im 7 a a in Valley Huntington Beach :Fire Hazard Sever ity Z.an,es (FHS:Z) in lo,c:a l Respa·ras ib ility Area (URA), as Identified by t ile~ Fii1:e iMa111ba l fi re Ha zard Seve~ity Zones in state Res;po1N1ibllity Area (SRA), Effeclrn! Ap ril 1, 2024 od3'Sl=e I ~ Wildfires Hit Home Page 56 of 74 Orange County Grand Jury 2025-2026 Appendix D Figure 18 Fire Hardening and Defensible Space Disclosure, Page 1 269 4 -~ CALI F OR N L\. • ASSO CI ATIO N •-e OF REALTORS® ~ FIRE HARDENING AND DEFENSIBLE SPACE rnsCLOSUREANDADDENDUM (C.A .R. For m FHDS, Revised 6/25) This is a disclosu e and adde ndum to the Purchase Agreement, O R □ Other ________________ ("Agreement"), dated-----~ on property known as ("Property"), in whic h -------------------------------------is referred to as Buyer, and _______________________________________ isreferredtoasSeller. 1. LAW APPLICABILITY : If this property does not meet the conditions stated in paragraph 1 A or 1 B, there is no requirement to complete the subsequent applicable paragraphs . A. Home Fire Hardening Disclosure: The Notice and disclosure of vulnerab ilit ies in paragraph 2 are only required for sellers of residential properties if: (i ) the Property conta ins one to four un its; (ii ) the seller is requ ired to complete a Transfer Disclosure Statement (C.A.R. Form TD S or MHTDS); (ii i) the Property is located in either a high or very h igh fire hazard severity zone ; and (iv) the improvement(s) on the Prope rty were constructed before January 1, 2010 . IF AN Y OF THES E FOU R CON DITIONS IS NOT MET , SELLER DO ES NOT HAVE TO ANSWER THE QUESTIONS IN PARAGRAP H 2B AND 2C . B . Defensib le Space Compliance: The disclosures and requi rements specified in paragraph 3 are on ly requi red for sellers of residential properties if : (i) the Property conta ins one to four units; (ii ) the seller is requ ired to complete a Transfer Disclosure Statement (C.A.R. Form TDS or MHTDS); and (ii i) the Property is located in either a high or very high fire hazard severity zone . IF ANY OF THESE THREE CONDITIONS IS NOT MET, PARAGRAP H 3 DOES NOT HAV E TO BE COMPLETED . C. Fire Hazard Severity Zone St atus : It may be possible to determ ine if a property is in a hi gh or very h i gh fire hazard severity zone by consulti ng with a natural hazard zone diselosure company or reviewi ng the company's report. Th is information may also be available th rough a local agency where this information should have bee n filed. Cal Fire has a "Fire Hazard Severity Zone Viewer" where you can input the Property address to determine which fire hazard zone , if any, that the Property is located in . A li nk to the viewer can be found on Cal Fire's website at https ://www.f ire.ca.gov/dspace/. 2. FIRE HARDENING DISCLOSURE (D Property is built on or after January 1, 2010 . Parag raphs 2B and 2C do not have to be co mpleted): A. FI RE HARDENING ST ATUTORY NOTICE : "T HIS HOM E IS LOCAT ED IN A HIGH O R VERY HIGH FIRE HAZAR D SEVERITY ZON E AND TH IS HOM E WAS BUil T BE FORE THE IMPLEMENTATION OF THE WILD FIRE URBAN INT ERFAC E BUILDI NG CO DES WHICH HEL P TO FIRE HARDE N A HOM E. TO BETT ER PROTECT YOUR HOM E FRO M WI LDFIRE, YOU MIGHT NEED TO CONS IDER IMPROVEM ENTS. INFOR MATIO N ON FIRE HA RDE NING , INCLUDING CUR RE NT BUILDING STANDARDS AN D IN FORMATI ON ON MINIMUM ANNUAL VEGETAT ION MANAG EMENT STANDA RDS TO PROTE CT HOMES FRO M WILDF IRE S, CAN BE OBTAIN ED ON TH E IN TER NET WEBSITE HTTP J/WWW.R EADY FORW ILD FIRE.ORG". B . FI RE HARDEN IN G VU LN ERABILITIES : Are you (Se ller) aware of the follo wing features that may make the home vulnerab le to wil dfire and fly ing embers (Se ller is not obligated to explain or clarify their responses to questions 26 (1 )-2 6 (6), whether they answer "yes" or "no ." Voluntary exp lanation/clarification is permitted but not requ ired). (1) Eave, soffit , and roof ve ntilation where the vents have openings in excess of one-eighth of an inch or are not flame and ember resistant.. ........................................................................................................................... D Yes D No (2) Roof coverings made of untreated wood shingles or shakes ............................................................................... □ Yes □ No (3) Combustible landscaping or other materials within five feet of the home and under the footp ri nt of any attached deck ...................................................................................................................................................... □ Yes □ No (4) Single pane or non -tempered glass wi ndows ...................................................................................................... D Yes D No (5) Loose or missing bird stopping or roof flash ing ................................................................................................... D Yes D No (6) Rain gutters without metal or noncombustible gutter covers ............................................................................... □ Yes □ No Explanatio n/Clarification: ------------------------------------- C. LIST OF LOW COST RETROFITS: The follo wi ng is a list of low cost retrofits developed and li sted by the California Department of Forestry and Fire Protection (CAL FI RE) and the Californ ia Governor's Office of Emergency Services (OES). More information on home harden ing is avail ab le at readyfo rwil dfire .org . A li st of low cost ret rottts with dynamic links can be fou nd at https:// read yforwildfire .org/wp-contenVuploads/2025/04/Low-Cost-Retrofit-Flyer-Handout •.pdf . Have you (Seller) complet ed any of the fo ll owi ng low -cost retrofits d u ring the time you have owned the property? (If the r etrofi t w as parti ally completed or only app li ed t o a po rti on of the identified f eature , or if similar w o r k w as perf ormed , or if your response below needs clarification , provide t he explanatio n/clarification below. If you are unsure if the retrof it item w as completed or sat isfied t he co nditions specified , check "No",and provide any ex planatio n/clarifi cation below.) (1) Roof replaced with Class A fire•rated roof ........................................................................................................ D Yes D No (2) Spaces between roof coveri ng and sheath ing blocked with non•combusti ble materials (bird stops) ................... □ Yes D No (3) Installation of noncombustible gutter cover on gutters to prevent the accumulation of leaves and debris in the gutter .................................................................................................................................................................... □ Yes D No (4) Covered chimney and stovep ipe outlets with a noncombustible corrosion•resistant metal mesh screen (spark arrestor), with 3/8 inch to ½ inch open ings ...................................................................................................... □ Yes □ No (5) Install ember and flame -resistan t vents ............................................................................................................. □ Yes D No (6) Cau lk and plug gaps greater than 1 /8•inch around exposed rafters and blocking l o prevent ember intrusion into the attic or other enclosed spaces ............................................................................................................. □ Yes D No (7) Inspect exte ri or sid ing for dry rot, gaps , cracks , and warping . Caul k or plug gaps greater than 1/8-inch in siding and replace any damaged boards , including those with dry rot. .................................................................... .□ Yes D No (8) Install weather-stripping to gaps greater than 1/8•inch betwee n garage doors and door frames to prevent ember intrusion . The weather•stripping must be comp li ant with UL Standard 1 oc .................................. , ........... o Yes □ No (9) Rep lace wi ndows with mu lti•paned wi ndows that have at least one pane of tempered glass ..................... □ Yes D No (10) Rep lace siding or deck us ing compliant noncombustible , ignttion-res istant, or other OSFM Wild land Urban Interface (WU I) Products ................................................................................................................................. .□ Yes □ No © 2025, Californ ia Association of REALTORS®, Inc. FHDS REVISED 6/25 (PAGE 1 OF 2) Buyer's Initials ____ / ____ Sel ler's Initials FIRE HARDENING AND DEFENSIBLE SPACE DISCLOSURE AND ADDENDUM (FHDS PAGE 1 OF 2) isl EQUALHWSltt8 DPPDATUNITT Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 57 of 74 Figure 19 Fire Hardening and Defensible Space Disclosure, Page 2 270 (11) Cover openings to operable skyli ghts with a noncombustible metal mesh screen with openings in the screen not to exceed 1/8 inch ....................................................................................................................................... □ Yes D No (12) Install a min imum 6-inch meta l flashing , applied vertically on the exterior of the wall at the deck-to-wall intersection to protect the combustible siding material.. ................................................................................... □ Yes □ No Explanation/C larification: 3. DEFENSIBLE SPACE DISCLOSURE AND ADDENDUM: (Paragraph 3 is only required to be completed if all three conditions in paragraph 1 B are met ; the Defensible Space Decisi on Tree (C .A.R. Form DSDT) may be consulted for additional information on how to complete this paragraph): A. LOCAL COMPLIANCE REQUIREMENTS: The P roperty (□ IS, Dis NOT) subject to a local vegetation management ord inance requiring defensible space around an imp rovement on the Property. (Paragraphs 3B and 3C must be completed regardles s of the answer to paragraph 3A if the conditions in paragraph 1 Bare met.) B. SELLER REPRESENTATION OF PROPERTY COMPLIANCE with the app licab le State defensible space requirement or local vegetation management ordinance (hereafter, State or local defensible space law) at the time of Se ller signature: (1) Seller is UNAWARE of whether the Property is in compliance with the applicable State or local defens ible space law . Seller does NOT have a report prepared by an Authorized Defensible Space Inspector. OR (2) D Property IS in compliance with State or local defensib le space law, whichever is applicable . If ONLY State law applies , Seller must have obtained compliance within the last 6 months. Seller shall Deliver to Bu yer documentation of compliance within 3 (or __ ) Days after Seller's execution of this FHDS form or the time spec ifi ed in paragraph 3N(1) of the Agreement, whichever occurs last. If this parag rap h is checked , also check paragraph 3C(5) below . OR (3) □ Property is NOT in compliance with State or local defensible space law, whichever is applicable . If Seller has , or agrees to obtain, a report prepared by an Authorized Defensi ble Space Inspector, Se ller shall De liver such report to Buyer with in 3 (or __ ) Days after Seller's execution of this FHDS form or the time spec ifi ed in paragraph 3N(1) of the Agreement, whichever occurs last. C. BUYER AND SELLER AGREEMENT REGARDING WHICH PARTY SHALL OBTAIN COMPLIANCE WITH APPLICABLE STATE OR LOCAL DEFENS IBLE SPACE REQU IREME t,JTS : (1) BUYER RESPONSIBILITY -NO LOCAL ORDINANCE. Buyer shall obtain documentation of compliance with the State defensible space law within one year of Close Of Escrow .• OR (2) □ BUYER RESPONSIBILITY -LOCAL VEGETATION MANAGEMENT ORDINANCE IN EFFECT which requires compliance as a result of a sale of the Property. The local ordinance allows either Seller or Buyer to obtain documentation of compliance. Buyer shall comply with the requirements of the ordinance after Close Of Escrow. OR (3) □ BUYER RESPONSIBILITY -LOCAL VEGETATION MANAGEMENT ORDINANCE IN EFFECT which does NOT require compliance as a result of a sale of the Prope rty. Buyer shall obtain documentation of compliance with the State defensible space law within one year of Close Of Escrow,* or if applicable comply with the local requirement after Close Of Escrow . OR (4) □ SELLER RESPONSIBILITY -LOGAL VEGETA.TION MANAGEMENT ORDINANCE IN EFFECT wh ich requ ires compliance as a result of a sale of the Property. The local ordinance requires Seller to obtain documentation of compliance prior to Close of Esc row . Seller shall obtain docu mentation of comp liance prior to the t ime fo r Buyer's f inal verification of condition. OR (5) □ SELLER RESPONSIBILITY -STATE OR LOCAL COMPLIANCE ALREADY COMPLETE. If ONLY state law applies , Seller has obtained documentation of compliance with State defensible space requ irement wit hin the last 6 months . For either State or loca l law, Selle r shall Del iver documentati on of compliance to Buyer; OR (6) □ SELLER RESPONSIBILITY -AGREEMENT TO OBTAIN STATE COMPLIANCE. Seller shall obtain documentation of compliance and Deliver to Buyer prior to the time for Buyer's final verification of cond ition. D. The local agency from which a copy of the documentation in paragraph 36(2), 36(3), 3C(4), 3C(5), or 3C(6), as applicable, may be obtained is ____________________________________ , which may be contacted al ______________________________________ _ * The req uireme nt to provi de documentati on of compliance with State defensible space requirements only applies if there is a state or local agency, or other governmental entity , o r qualified non-profit entity in the jurisdiction where the Property is located that is authorized to inspect the Property and provide documentation of comp liance ("Authorized Defe nsib le Space Ins pector"). 4. □ FINAL INSPECTION REPORT DISCLOSURE: The Property was newly constructed , or was rebuilt following damage by a fire and the construction required a permit , and Seller has obtained a f inal inspection report addressing compliance with home fire hardening recomme nded bu ildin g standards as described in Government Code § 5 1182. Seller has a copy of the report , and it is attached, or □ Selle r does not have a copy of the report and Buyer may obtain a copy at _____________ _ Seller represents that Seller has provided the answers on paragraphs 2B and 3B of this form based on Seller's awareness on the date of Seller's signature below, and the answers on paragraph 2C are accurate. Seller acknowledges receipt of this Fire Hardening and Defensible Space Disclosure and Addendum and agrees to the applicable terms in paragraph 3C. Sell er ______________________________________ Date _____ _ Sell er Date _____ _ By signing below, Buyer acknowledges that they have received a copy of this Fire Hardening and Defensible Space Disclosure and Addendum , and they have read and understand the form and agree to the terms in paragraph 3C. Buyer ______________________________________ Date _____ _ Buyer Date _____ _ © 2025, California Association of REALTORS®, Inc. United States copyright law (Title 17 U-8. Code) forbids the unauthorized distribution, display and reproduction of this form , i~~'g~~i'iN1~?i~1T~hi~~0~b ~':cct~:s~~XT1ii'~'1f~'¾'J,i~1b'1~i"tt~t'.'~~~'g~~~lb0~~~c~~~ f~~~R'6~fs~5~~~~t:g~f ~,g,}i?t~1~ REAL ESTAT E BROKER ISTHE PERSON OUALIFlEDTO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. G) Publ~hed and Distributed by· REALESTATE BUSINESS SERVICES, LLC a subsidiwyof the Cadotria Asscdalioo of REAL TORS' - FHDS REVISED 6/25 (PAGE 2 OF 2) - FIRE HARDENING AND DEFENSIBLE SPACE DISCLOSURE AND ADDENDUM (FHDS PAGE 2 OF 2) fQUALll)US~8 OPPORTUNITY Wildfires Hit Home Page 58 of 74 Orange County Grand Jury 2025-2026 Appendix E California Department of Insurance Data Figure 20 California Property and Casualty Insurance Company Homeowners Premium and Loss 271 199 1-2024 CALIFORNIA P&C HISTORICAL PRE MIUM AND LOSS Li ne of Bus iness : HO MEOWNERS MUL TI PLE PE R IL [04) YEAR WRITTEN PREMI UM %Chg. Co.Count EARNE D PREMI UM INCU RRED LOSS LOSS RATI O 1991 2,398,651 ,496 191 2,349,924,901 2,79 1,008,371 118.77% 1992 2,555,745,940 6.5% 188 2,468,835,484 1,980,200,380 80.21% 1993 2,669,536,350 4.5% 179 2,588,229,132 2,260,932,154 87.35% 1994 2,757,073,066 3.3% 176 2,688,902,970 1,957 ,548,203 72.80% 1995 2,934 ,990,317 6.5% 180 2,828,528,558 2,170,026,959 76.72% 1996 3,090,172,058 5.3% 157 2,992,922,532 1,536,204,414 51 .33% 1997 3,219,673,063 4.2% 156 3,128,673,253 1,493,329,331 47.73% 1998 3,445,849,365 7.0% 153 3,358,899,095 1,758,TT5,892 52 .36% 1999 3,560,100,595 3.3% 163 3,476,827,465 1,663,998,077 47.86% 2000 3,740,477,538 5.1% 161 3,676,266,079 1,908,291 ,220 51.91% 200 1 3,992 ,960,925 68% 166 3,866,932,308 2,474,244,352 63.98% 2002 4,565,626,156 14.3% 152 4,211 ,592 ,936 2,476,270,849 58.80% 2003 5,296,194 ,308 16.0% 148 4,935,892 ,774 3,647,291 ,668 73.89% 2004 5,843,429 ,606 10.3% 125 5,560,574,064 1,715,301,749 30.85% 2005 6,305,176,422 7.9% 113 6,065,178,507 2,063,072,529 34.02% 2006 6,591 ,912 ,516 4.5% 111 6,436,870,073 2,147,266,579 33.36% 2007 6,453,088 ,200 -2.1% 111 6,568,857 ,449 4,675,914,725 71.18% 2008 6,355,980 ,869 -1.5% 113 6,386,251,776 3,452,898,028 54.07% 2009 6,513,371 ,686 2.5% 115 6,391 ,096,439 2,209,791 ,955 34.58% 2010 6,758,183 ,845 3.8% 114 6,612,865,838 2,870,059,793 43.40% 2011 6,896,796,197 2 1% 112 6,832,454,959 2,890,230,414 42.30% 2012 7,018,043,553 1.8% 116 6,962,824,501 3,076,419,837 44.18% 2013 7,033,097 ,194 0.2% 117 7,038,071,457 3,189,727,981 45.32% 2014 7,202 ,319,845 24% 116 7,031 ,937,018 3,35 1,846,286 47.67% 2015 7,409,994 ,305 2.9% 117 7,248,990,918 4 ,230,850,026 58.36% 201 6 7,645,677 ,515 3.2% 107 7,475,784,553 4 ,047 ,329,931 54.14% 2017 7,761 ,932 ,830 1.5% 108 7,664,490,935 15,418,577 ,650 201 .17% 201 8 8,266,332 ,994 6.5% 112 7,983,075,132 13,5TT,455,112 170.08% 2019 9,004 ,847 ,173 8.9% 117 8,631 ,287,540 2,818,562,833 32 .66% 2020 9,767 ,233,243 8.5% 118 9,362,270,255 3,539,955,749 37.81% 202 1 10,912 ,068,287 11 .7% 118 10,298,463 ,872 4 ,753,166,698 46.15% 2022 12,084 ,613,385 10.7% 111 11 ,480,004,192 6 ,333,910,318 55.17% 2023 13,218 ,555,040 9.4% 105 12,615,427,773 7,990,111 ,685 63.34% 2024 14,516 ,380,112 9.8% 101 13,749,361 ,196 6 ,760,543,067 49.17% 16,000,000,000 14,000 ,000,000 12,000 ,000,000 10,000 ,000,000 8,000,000,000 6,000,000,000 4,000 ,000,000 2,000 ,000,000 PREMIUMS COMPANY CO UN T 200 ~--======-----. ... , .,.. -.... -WRITTEN PREMIUM INCURRED LOSS 20,000,000,000 ~-----------~ 16,000,000,000 +----------~-----< 12 ,000,000,000 +----------+-t-----< 8,000,000,000 +----------+--+--..i 4,000,000,000 -i------,,--,,..-,-=----'--1 0 -H-++-t+t-++-H-++-t+t-++-H-++-t+t++-H-++-1-H Colifomia Deportment of Insurance Note: This report includes only California licensed comp1mies with written premium greater than zero . LOSS RATIO Rate Specialist Bureau -April 30, 2025 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 59 of 74 Note: P. O. Boxes are excluded from this list. Data is for calendar year 2022 and includes homeowners (excluding condominium), mobile home, dwelling fire owner- and tenant-occupied insuring structures with four or less units. Source: California Department of Insurance Figure 21 FAIR Plan Data for Orange County Zip Codes 90620 - 92679 272 Fire Hazard CDI Wildfire Residential Dwellings Residential Percentage of Zip Code Severity Zone Distress Area City Vanity City or Location Insured by Voluntary Dwellings Insured Residentia l Dwellings Market by FAIR Plan Insured by FAIR Plan 90620 None Buena Park 10 ,826 20 0.2% :111111n .... Buena Park Los Coyotes cc 3,863 19 0.5% 90623 None La Palma 3 ,701 7 0.2% 90630 None Cypress 10,692 22 0 .2% e 906M lff.K.~;" La Habra westrielgecc 12 ,999 274 2 .1% 90680 None Stanton 3,591 9 0 .3% 90720 None Los Alamitos 5,821 4 0.1% 90740 None Seal Beach 4,741 6 0.1% 90742 None Huntington Beach Sunset Beach 303 4 1.3% 90743 None Seal Beach Surfside 139 2 1.4 % 111B12 ·· wt.l( llt,iNilnif Irvine Loma Ridge 5 ,755 23 0.4% -~ '!IJ\,t\ ,t4: 'Mt Irvine Turtle Rock , Shady 4,115 20 0.5% Canyon 92604 None Irvine 4,660 3 0 .1% 92606 None Irvine 3 ,195 1 0.0% A1!1i10 7 ~~l(llilllle', Lake Forest Foothill Ranch 2,996 41 1.4% 92612 H, M,None Irvine William R. Mason 1,574 1 0.1% Reqional Park 92614 None Irvine 3 ,102 4 0 .1% 92617 M , None Irvine UCI 993 0 0.0% --~I(-Irvine Laguna Altura , Borrego 9 ,789 17 0 .2% .=§. ;,-.. ,~.,·-----. 3-, Canyon -liHtf. M.,<Nmllt: Irvine Stonegate 12,171 11 0 .1% 92624 H, M,None Dana Point Capistrano Beach 2,255 4 0.2% .--WK/fl,,11.J!fmi~l Newport Beach Corona Del Mar 4,423 7 0.2% 92626 None Costa Mesa 8,8 17 4 0.0% 92627 H, M,None Costa Mesa Talbert Reg ional Park 9,748 14 0.1% .,-Dana Point Crown Valley Pkwy. 7,229 8 0.1% ,_ l12(1:lD ,: vt:1.'l:f. Lake Forest Saddleback Chu rch 14,090 24 0.2% _, wt.ff. M.,1Ralle Laguna Woods Laguna Canyon 545 0 0.0% 92646 None Huntington Beach 14,923 11 0.1% 92647 None Huntington Beach 11,451 14 0 .1% 92648 None Huntington Beach 8 .997 6 0.1% 92649 H, M, None Huntington Beach Brightwater Dr., 8 ,363 6 0.1% Oceanridge Dr. ;; .. ,.~~--·-Laguna Beach 8,760 459 5.0% Laguna Hills North Laguna Hills 6 ,266 13 0.2% 92655 None Unincorporated OC Midway City 1,408 1 0.1% -~, M:Ot, Aliso Viejo Wood Canyon Dr. 7,537 37 0.5% Newport Beach Newport Coast 3,133 100 3.1% 92660 H, M,None Newport Beach Newport Ridge 7 ,209 15 0.2% Clubhouse 92661 None Newport Beach Balboa Peninsula 1,683 4 0 .2% 92662 None Newport Beach Balboa Is land 1,367 1 0.1% 92663 M , None Newport Beach Canyon Pa rk 5,479 10 0.2% ~I MR·M;:~· San Clemente 8,901 37 0.4% -~lt1Nifiif ; San Clemente 7,804 42 0.5% San Juan Capistrano 8,415 58 0.7% .Bl!lfflt w ,,.._ Unincorporated OC Si lverado 156 550 77 .9% .., ~~I(~ Laguna Niguel Pacific Is land Dr., Salt 14,861 112 0.7% Creek Open Space ' ·--Unincorporated OC Trabuco Canyon 16 15 48.4% ~ ~~M ,_ Unincorporated OC Trabuco Canyon , Coto de 8 ,0 19 1,052 11 .6% . -Caza , Dove Canyon Wildfires Hit Home Page 60 of 74 Orange County Grand Jury 2025-2026 Note: P. O. Boxes are excluded from this list. Data is for calendar year 2022 and includes homeowners (excluding condominium), mobile home, dwelling fire owner- and tenant-occupied insuring structures with four or less units. Source: California Department of Insurance Figure 22 FAIR Plan Data for Orange County Zip Codes 92680 – 92899 273 Fire Hazard CDIWildfire Residential Dwellings Residentia l Percentage of Zip Code Severity Zone Distress Area City Vanity City or Location Insured by Voluntary Dwellings Insured Residential Dwellings Market by FAIR Plan Insured by FAIR Plan 92683 None Westminster 16,837 20 0.1% _., /l'f;i\~ffile: Rancho Santa Margarita 7,872 52 0.7% l :92891 ,u1,_r,,;,._:, Mission Viejo Wi lderness Glen Park 11 ,920 10 0.1% ,·-~-'M..MiNilrii:: Mission V iejo 12,832 26 0.2% ~ .. ,.w __ Unincorporated oc Laclera Ranch 7,453 42 0.6% 92697 None Irvine UCI 0 0 0.0% 92698 None Aliso Viejo 0 0 0.0% 92701 None Santa Ana 3,818 77 2.0% 92703 None Santa Ana 7,396 97 1.3% 92704 None Santa Ana 10,533 82 0.8% ,~ ~~M.llt..._, Santa Ana Cowan Heights , Peters 9,699 34 0 .3% canyon 92706 None Santa Ana 5,507 6 0.1% 92707 None Santa Ana 7,554 77 1.0% 92708 None Fountain Valley 13,293 9 0.1% 92780 None Tustin 7,315 2 0.0% -"""'""· W:-ffiilli, Tustin Pioneer Road Park 4,483 12 0.3% 92801 None Anaheim 6,802 20 0.3% 92802 None Anaheim 4,421 15 0.3% 92804 None Anaheim 11 ,474 22 0.2% 92805 None Anahe im 8,7 15 24 0 .3% 92806 None Anahe im 5,357 11 0.2% tiliidi ~.fl.lot~ Anaheim Walnut Canyon Reservoir 9,178 67 0.7% -.....-:~ U:'.Hbiie'i'I Anahe im Anaheim Hills 4,648 34 0.7% 92809 None Anaheim 0 0 0.0% I :<!l'IJl2\I •• m·:~..,, Brea 8,838 64 0.7% . ._ Brea Carbon Canyon Rd. 1,380 55 3.8% ~-lytf.M. llt M ; Fullerton Panorama Nature 5,326 11 0.2% P reserve 92832 None Fullerton 3,846 7 0.2% •~-· l'Rff;•·-Fullerton Ralph B. Clark Park 10,168 22 0.2% . ~tt.~~; Rolling Hills Park , ~--Fullerton Laguna Lake Park 6 ,157 11 0.2% 92840 None Garden Grove 8,946 6 0.1% 92841 None Garden Grove 6,013 2 0.0% 92843 None Garden Grove 6,064 9 0.1% 92844 None Garden Grove 2,763 1 0.0% 92845 None Garden Grove 4,808 1 0.0% ;9211111 VK:.'tt M:.-'NiillitJ Villa Park 1,964 2 0.1% .a= ....-,:u -u Unincorporated oc Black sta r canyon 6 0 0.0% 92865 None orange 4,257 10 0 .2% 92866 None orange 3,048 1 0.0% :-, ~J\M;fblec Orange Santiago Oaks Reg ional 9,943 12 0.1% Park 92868 None Orange 2,776 3 0.1% ~ 11/K.,,._ lit: ttile'.~ Orange El Modena Open Space 8,215 25 0.3% 92870 None Placentia 10,759 15 0.1% ... !MJ:t,.a.;:~, Yorba Linda Black Gold GC 13,587 82 0.6% ll'l8t7 :!illJ.\ff;,·111'. Neil&a'•I Yorba Linda Box Canyon Park 5,210 217 4.0% 92799 None Santa Ana Distribution Center 0 0 0.0% 92850 None Anaheim 0 0 0.0% 92899 None Anahe im Dist ribution Center 0 0 0.0% Totals 588 ,062 4,387 0 .7% Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 61 of 74 Appendix F OCFA and Covered Cities Figure 23 Orange County Fire Authority Covered Cities 274 It~ OCFA COVERAGE 0. OM"U)t..\ tfe~ OIM Oc,..-y.0Cf4 wo, 10 u.~th~'°"10. c..rtv aTYlf AUSOYUI EmllWBClffl EmllualAlmU. EmUISSIIUIJII Em •SUIITIII EmlflWNII art•IIIWNII Emlllffll cm•ua1A1111S EmllUIIIISAlfll IUICAaTA dl EmlfSMIJUI WISTIAlm EmlflESDaffll EmlflJNUIA EmlllJIIfaST EmllSMIClBIITE Emlf SUI.IUCII cm•mullaA EmllllWPllal EmllllSAl»ITIS EmllSAlfllAIIA EmlfllSlll ca!YIIIIAINI Wildfires Hit Home Page 62 of 74 Orange County Grand Jury 2025-2026 Figure 24 Orange County Fire Jurisdictions 275 Orange County Fire Jurisdictions 201 01 na 714-765-4000 B • rtment 1 ircle B 714-990-7 00 Fire Department Dr. 9262 Foun Department 10200 12 Full 714 Pia 7 ,1 Huntington Beach ire Department 2000 ain t. Huntington B ach 9264 714-5 -5411 nt 505 Laguna B ach 9265 I 949-497-11 949-644-104 ra 714 Department 2663 nt Orang County Fire uthority I Fire uthority Road Irvin 92 02 714-57 -000 nt The O FA pro,'idesfire en'i es/or the following citi : Aliso l'iqo • 811 no Pork • Cypn • Dano Point • Gorden Gro,·e • /nine • Laguna /1,//s • lag11no Ni 11e/ • Laguna Woods • lake Forest • la Po/mo • Los Alamitos • Mission Viejo • Rancho nto Morgonto •Son lemente • n J11on oplSlrono • nto Ano • Seal Bea h • ton ton • T11s11n • Vi/lo Parle • We tminster • Yorba Lmdo • and nin orporoted Areas of Orange 011nty DIAL 911 FOR EMERGE CY SERVICES Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 63 of 74 Appendix G Ready, Set, Go!, Zone 0 At-A-Glance and Links Figure 25 Ready, Set Go! Flyer for Immediate Zone 276 Changes made to the Immediate Zone can make a big impact in reducing structure loss during a wildfire Use hardscape like gravel, pavers, concrete and other noncombust ible material. No combustible bark or mulch Remove all dead and dying weeds, grass, plants, shrubs, trees, branches and vegetative debris (leaves, needles, cones, bark, etc.); Check your roofs, gutters, decks, porches, stairways, etc. Remove all branches within 10 feet of any ch imney or stovepipe outlet Limit plants in this area to low growing (below 2 feet), nonwoody, properly watered and maintained plants Limit combustible items (outdoor furniture, storage, planters, etc.) on top of decks Relocate firewood and lumber 30 feet away from buildings Replace combustible fencing, gates, and arbors attached to the home with noncombustib le alternatives Consider relocating garbage and recycling containers outside this zone Consider relocating boats, RVs, veh icl es and other combustible items outside this zone Immediate Zone For more information, p lease visit the OCFA website or call (714) 573-6n4 to schedule a Wildfire Home Assessment. Regulations for wildfire safety are dynamic and new requirements may be enacted by the State of California and its regulatory agencies at any time . Projects must comply with all state requirements for vegetation management and wildfire safety, in addition to the requirements in this guideline, in place at the time of plan submittal. Where a conflict between this guideline and other applicable regulations exists, the more stringent or specific requirement will apply. Wildfires Hit Home Page 64 of 74 Orange County Grand Jury 2025-2026 Figure 26 Ready, Set, Go! Flyer on Defensible Space 277 In order to offer wildfire protection, Defensible Space should reach at least 100 feet from the house, garage, and other buildings on the property, or to the property line . In many cases, Defensible Space is simp ly the front, side, and back yards of your home. Guidelines for Vegetation Management within 100 feet of your home include : • Remove all dead and dy i ng plants • Recommend removal of vegetation found on the Undesirable Plant List and replant using drought-tolerant, fire-resistive plants • Trim or remove plants to create the recommended vertical and horizontal separation between them • Remove dry leaves, twigs, pine needles, etc. from the yard, roof, and rain gutters • Install hard surfaces, reduce vegetation, and eliminate combustible mulch wi t hin 5 feet of home It 's not necessary to remove al l vegetation around your home, but creat i ng Defensible Space will give firefighters a better chance of keeping wildfire from spreading to your home. Mowing, weeding, pruning, thinning, spacing, and careful plant selection can make the difference between surviva l and losing your home during a wi ldfi re. Consu lt a geo logist prior to beginning maintenance if you have slope stability issues. For more informat ion, please visit the OCFA website or call (714) 573-6774 to schedu le a W il dfire Home Assessment. Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 65 of 74 Figure 27 Ready, Set, Go! Flyer for Home Hardening, Page 1 278 All new homes built in the Wildland Urban Interface (WUI) are requ ired to meet the minimum standards for the protection o f life and property by increas ing the home's abi lity to resist ember intrusion, d irect flames, and radiant heat. Homes can be retrofitted to these new building requ irements using the recommendations listed below: 1 . Roof -Ember-resistant material. Gaps are filled with ignition-resistant material. No loose roof flashing. 2. Eaves -Eaves are maintained with all gaps filled with caulking and painted over. 3. Vents -1/8-inch m et al mesh screen or ember proof vents. 4. Chimney -1/2-inch spark arrestor screen. C lear t ree branches and/or vegetation at least 10 feet away from opening. 5 . Gutters -Insta ll gutter guards. Remove combustib le debris on a regular basis. 6 . Exterior Siding -Exterior sid ing is maintained wi t h all gaps fi lled with caulki ng and painted over. 7 . Doors -Weather-stripping around door frames and doors adjusted fo r a "tigh t f it" w ith i n the frame. 8. Windows -Mul t i-pane w i ndows, w ith at least one pane being tempered, and metal framing. 9 . Fences -Non-combust ible or ignition-resistan t materia l. Ma intain fencing by keep ing vegetation clear. 10. Patio Covers -Ignition-resistan t material. Fill a l l gaps and crevices. Instal l meta l flashing bet ween the patio and outside wa l l. 11. Balconies & Decks -Ignition -resis t an t materia l. Fi ll all gaps between the deck and outside wa ll with cau lk ing or m et al flashing. Remove or replace combustib le it ems st ored above and below. 12. Immediate Zone -No woody vegetat ion loca t ed w ithin 5 feet of t he home. No combust ible items located within 5 feet of the home (trash bins, patio furniture, storage, mu lch, etc.) Refer to the California Wild/and Urban Interface Code (CWUIC) for permits and specific requirements. For more infor m ation, please visi t the OC FA websi te or ca l l (714) 573-6774 t o schedule a W ildfire Home Assessment. Wildfires Hit Home Page 66 of 74 Orange County Grand Jury 2025-2026 Figure 28 Ready, Set, Go! Flyer for Home Hardening, Page 2 279 1. Roof 2. Eaves 3. Vents 4. Chimneys 5. Gutters 6 . Exterior Siding 7 . Doors 12 8. Windows 9. Fences 10. Patio Covers 11 . Balconies & Decks 12. Immediate Zone Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 67 of 74 Figure 29 Ready, Set, Go! Flyer on Vegetation Management 280 Removal: Remove all dead and dying plants within 100 feet of your home Identify and remove plants found on OCFA's Undesirable Plant List Remove dry leaves , bark and pine needles from the yard , roof , and rain gutters Reduction: Prune and thin plants within 100 feet of your home , including your plants within 100 feet of your neighbor's home Provide 6 feet vertical separation between shrub tops and lower tree branches to reduce "ladder fuels " Use Horizontal Separation Guidelines for plants over 2 feet in height (15 feet minimum or 3 times the tallest plant) Keep all shrubs within 1 O feet of your home trimmed to 2 feet or lower Prune or remove plants near windows Remove all tree branches or plants within 10 feet of chimney outlets Move wood piles at least 30 feet from your home , or to the property line Keep annual grasses and weeds cut to 4 inches or less Replacement: Replace fire-prone plants with fire-resistant and drought tolerant plants. See the OCFA Planting Guide for recommendations When putting in new plants , leave enough space for them to grow to mature size Any vegetat ion ove r 2 feet cannot be w ith in 15 fee t of a t ree canopy Use fire-resistant plants whenever possible Keep in mind that even plants listed on the Planting Guide must be maintained using Spacing Guidelines for both vertical and horizontal separation. Plant separation is an important part reducing wildfire threat For more information , please visit the OCFA website or call (714) 573-6774 to schedule a wildfire home assessment. Wildfires Hit Home Page 68 of 74 Orange County Grand Jury 2025-2026 Figure 30 Ready, Set, Go! On Be Ember Aware 281 Once they're picked up by strong w inds, embers can travel as muc h as five miles in front of the active front of a wil d fi re . Befo re flames get anywhere near your home, embers can land in dry or fl ammable vegetation or small ope n spaces on your roo f or wal ls, and ignite, threatening your home . If embers fal l on and ignite nearby plants , the radiant heat created by the fire can burn combustible siding, doors, or window fr ames. Rad iant hea t can also cause wi ndows to break, creating openi ngs that allow flames and embers to enter your home . Once the home is o n f i re, it will create more embers that can be picked up by winds, trave l to other homes and neigh b orhoods , and increase fire damage for t he entir e community. Embers create a huge threat duri ng a wi ldfire . It's the steps you take now to make your home and landscaping more ember-res istant t hat will protect your family, your home , and your community during the next wildfire . Take responsibility! For more i nformation , please visit t he OCFA website or ca ll (714) 573-6 774 t o schedu le a W ild fire Home Assessment. Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 69 of 74 Figure 31 Ready, Set, Go! Flyer on Home Assessment 282 Experts can't tell you w h en the next w i ldfire wil l happen, but t hey do know that w il dfires ca n happen at any time in Southern Californ i a. Many residents have not taken the most basic steps t o protect their families , homes and neighborhoods from Orange Count y's #1 fire risk. During yo u r FREE Wildfire H ome Assessment, t he o uts ide o f your home and property, a long with other r isk fact ors, wil l be evaluated. T hen, you'll be g ive n specific steps you can take to reduce yo u r home's vulnerab i l ity to wi ldfire . Many proven tips to help your home su rv ive a wi ldfi re are availab le 24/7 at oda.org, incl ud i ng: .. .. --~ I • • . . . . ., .. Plant Selection Balconies & Decks Ember Awaren ess Spacing Chimneys As Wildfire Approaches Separation Fences Wildfire Evacuation Dead & Dying Pla nts Garages If You Get Trapped Fuel Modification Pat io Covers Disaster Kits & Gol Bags Creating Defensible Space Rain Gutters Red Flag Warnings Vegetation Management Roofs, Eaves, & Vents Walls and Sid ing Windows H omes survive w il dfires because o f what you do to prepare for them ahead of t ime, not by fate or lu ck. No ma tt er where you live, or how much m oney you can spend, there are things th at yo u can do righ t now to help prot ect your home. To schedu le your FREE Home A ssessment: Wildfires Hit Home Page 70 of 74 Orange County Grand Jury 2025-2026 Figure 32 Ready, Set, Go! Flyer on Wildfire Home Risk Assessment, Page 1 283 Wildfire Home Risk Assessment Are You READY? wer each question using assigned point values as it applies to the home. If the question does not The home has all non-combustible siding (brick, stucco , metal) The home has some vinyl siding .,_-----------------------<Replace siding with non-combustible material The home has some wood siding The roof material is non-combustible (metal , composition , tile) with no areas for fire embers to intrude (i.e . has bird sto s , flashin at valle s , and blockin ) The roof has wood shakes or areas for fire embers to Replace wood shake with Class A roof assembly with intrude a roved "blocki n • material. Eliminate intrusion areas All chimneys have spark arresters Some chimneys do not have spark arresters Install spark arresters with 1 /2" non-combustible mesh 1 All gutters and roof are clear of combustible debris Clear all combustible debris from roof and gutters. Install Some gutters and/or roof have combustible debris present screens on gutters to reduce the accumulation of combustible debris 1 All eaves are boxed to prevent ember collection underneath Some eaves are not boxed Plug openings in open-eave areas with durab le caulk . Install a non -co mbustibl e covering over blocking to eliminate openings All windows are dual pane with durable frame (one pane is tempered). Some windows are single pane or have wood frames or do Replace wi th dual pane windows with a durable frame . One not have any tempered glass pane should be tempered All eave and cornice vents are baffled. All other vents are protected with 1/8" non -combustible mesh Some eave vents and cornice vents are present and are not baffled or some vents are not protected by 1/8" non ­ combustible mesh Replace eave and cornice vents with approved baffled vents . Protect all other vents with 1/8" non-combustible mesh. Keep t he areas around the vents clear of vegetation Patio cover is constructed or covered with non-combustible material (brick, stucco, metal) or is not w ithi n 1 0' of home Patio cover is constructed with uncovered combustible material and is within 1 0' of home Replace wi th non-com bustible material or cover wit h non­ combustible material (brick, stucco , metal) All balconies are constructed or covered with non-combustible material (brick, stucco , metal, ti le, etc .). Undersides are protected to prevent ember accumu lation Some balconies are constructed with combustible material Replace with non-combustible material or cover with non - or combustible material is exposed or undersides are combustible material. Protect undersides unprotected All decks are constructed with non -co mbustible material (composite, tile, brick , etc.) Some decking is constructed with combustible material (un-approved vinyl , wood , etc .) Replace wi th non-combu stible material or cover with non ­ combustible material The undersides of all raised decks are constructed or covered with non-co mbustible material (brick, stu cco , metal , tile , etc.) The undersides of some raised decks are constructed with R 1 •th b !'bl d k ·th combustible material and not covered with non -ep ace _w1 non-co m us I e ec or cover w1 non- combustible material (brick , stucco, metal , tile, etc.) combustible material (bnck, stucco, metal , tile , etc.) All fences , gazebos , and trellis's are 1 0' or more from the hom e or are constructed with non-combustible material Some fencing , gazebos or trellis's are less than 1 O' from Replace fencing , gazebo or trellis with non-combustible the home and constructed with combustible material material within 1 o· from the house 0 5 10 0 20 0 5 0 5 0 5 0 5 0 10 0 5 0 5 0 10 0 10 0 5 Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 71 of 74 Figure 33 Ready, Set, Go! Flyer on Wildfire Home Risk Assessment, Page 2 284 Some vegetation is dead or not drought or fire resistant All shrubs are at least 5' from structures Some shrubs are within 5' of structures Remove ALL dead vegetation and replace with fire res istant planti ng material. Visit www.ocfa.org for recom mendations Replace shrubs with low lying vegetation or thin shrubs to 50%density All overhanging limbs are at least 10' above roofs and at least 10' away from structu res So me overhanging Ii mbs are less than 1 0' fro m roofs and structures Remove all limbs within 1 O' from structures 1 All taller vegetation is pruned and separated from underbrush and separated from trees. Separation between shrubs and trees is at least 3 times height of shrubs . Separation between low lying vegetation and shrubs is at least 3 times height of low lying vegetation. Spacing between shrubs is at least three times width of shrubs Some taller vegetation hangs over underbru sh creati ng a "fuel ladder" that can carry fire up and toward the home Provide separation between low lying vegetation and shrubs. Provide separation between shrubs and trees. All outbu i ldings and secondary structu res are at least 20' from the home or constructed with non-co mbustible material Some outbuildings and seco ndary structures are within 20' Replace with non-combustible material or cover wit h no n- of the home and constructed with combustible mate rial combustible mate rial Home has at least 100' of brush clearance around it or is protected by a formal and compliant "fuel modification· program Home has 30' -1 00' of defensible space Remove dead or dying vegetation within 100' of homes . t-------------------------<Remove native vegetation within 30' of home. Thin native Home has less than 30' of defensible space vegetation 50% density within 30' to 1 00' of home 1 All firewood and other combust ible materials are stored at least 30' from the home So me firewood or other combustible materials are stored against or within 30' of home For follow up questions regarding this risk assessment, please contact: Move firewood and other combustible storage at least 30' away fro m home' ITOTAL SCORE SCORING : 10 0 10 0 5 0 10 0 5 0 5 10 0 10 During a wildfire , firefighters are better able to protect homes that have low Consultation Performed by : scores. Firef ighters may not be able to protect homes that have higher scores. Name : 0 : Your home has the greatest potential for survivability during a hostile wildfire. Phone : ____________ _ 5-20 : Your home has been identified as a low risk. Recommendations indicated Date: on this checklist should be addressed to increase the survivability of your home during a hostile wildfire. 25-40: Your home has been identified as a moderate risk . Survivability of your home will be an issue during a hostile wildfire . Recommendations indicated on this checklist should be completed. 45 an d above : Your home has been identified as a high risk . The survivability of your home is low. Your home may be in extreme danger during a hostile wildfire. Recommendations indicated on this checklist are strongly enco uraged to be completed. For additional information on how to increase the chance your home will survive a wildfire , please visit the Orange County Fire Authority's Safety and Education page at www.ocfa.org and the State Fire Marshal's wildland urban interface products page at http://osfm.fire.ca.gov/licensinglistings/licenselisting bml searchcotest . If you walk your property without an OCFA inspector and have questions afterwards feel free to contact us at 714-573-6774 or rsgoc@ocfa.org 1 For some homeowners , these recommendations may be requirements of the fire code. If the property is near a wildland area and is subject to a Defensible Space inspectk>n. this is not just a recommendation , but a requirement and subject to a W ildland Inspection Notice. Wildfires Hit Home Page 72 of 74 Orange County Grand Jury 2025-2026 Figure 34 Zone 0 At-A-Glance, Page 1 285 ZONE OAT-A-GLANCE I Wind-driven embers during wildfires are a leading cause of homes being destroyed , including in the 2025 Los Angeles fires. Californians can protect their homes by removing items that can ignite from these dangerous embers around the first five feet of their homes . In 2021 state leaders passed a law that requires statewide guidelines that protect the area immediately adjacent to homes , which is knows as "Zone 0". Since then , several cities have already adopted Zone 0 requirements on their own and the California Department of Insurance has established the Safer form Wildfires Program to enable home insurance discounts for implantation of these protective measures . Zone 0 is the first five feet surrounding your home, decks, and attached structures . This area is called the ember-resistant zone and is critical to wildfire defense. The goal is simple : keep this zone completely free of combustible materials so embers or flames cannot ignite your home. ZONE O GUIDELINES • Use pavers , concrete, or other hardscape materials instead of combustible mulch . • Clear dead weeds , grass , and debris ; check roofs , gutters , and outdoor areas . Keep branches trimmed 10 feet away from chimneys and stovepipes . • Minimize combustible items like furniture and planters on decks. • Move firewood and lumber to Zone 2 for safety. • Replace combustible fencing and gates with fire-resistant materials . Shift garbage and recycling containers to a safer area outside this zone . • Relocate boats , RVs , and vehicles away from this zone to reduce fire risks . • Plants can be added just outside Zone 0 as a way to maintain vegetaition around the home . Wildfires Hit Home Orange County Grand Jury 2025-2026 Page 73 of 74 Figure 35 Zone 0 At-A-Glance, Page 2 286 ZONE OAT-A-GLANCE I THE SCIENCE BEHIND ZONE 0 In an ongoing collaboration , CAL FIRE -Office of the State Fire Marshal (OSFM) and the Insurance Institute for Business & Home Safety (IBHS) continue to conduct live burn demonstrations using a mitigated and nonmitigated structure . The demonstrations provide a controlled environment to study how specific structural and landscape modifications mitigate wildfire risk , thereby offering data-driven insights into fire behavior and prevention . Research has concluded that removing flammable materials within the first five feet of a structure prevents embers from start ing a fire , greatly reducing the risk of ignition to exterior walls , eaves , and gutters-areas where wildfire embers can easily take hold. Keeping this area clear is one of the best protection measures you can take to protect your home . • Zone O Landscaping -Non-mitigated wood mulch , plants , and a wooden fence within five feet , acting as a wick for flames. The mitigated home used gravel , ha rdscaping , and a metal fence , removing fuel for embers. • Vents -Standard vents let embers enter and ignite the attic . Ember-res istant vents on the mitigated home blocked them . • Siding -Flammable siding to the ground allowed flames to climb . The mitigated home used noncombustible material at the base . • Gutters -Debris-filled plastic gutters fueled ember ignition . The mitigated home had clean metal gutters with noncombustible gutter guards to prevent debris accumulation. • Furniture -Flammable outdoor furniture on the non-mitigated home ignited from embers. The mitigated home used noncombustible furniture , preventing ignition . MO RE RESOURCES ~ ~·· SCIENCE VIDEOS AND MORE... --~ Wildfires Hit Home Page 74 of 74 Orange County Grand Jury 2025-2026 Links Immediate Zone https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2025/12/Immediate- Zone-2025.pdf Defensible Space https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2025/03/OCFA-RSG- Defensible-Space-1-1.pdf Home Hardening https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2025/12/Home- Hardening-2025.pdf Vegetation Management https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2026/01/OCFA-RSG- Vegetation-Management.pdf Be Amber Aware https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2025/07/OCFA-RSG- Be-Ember-Aware-688b04d7e4fb9.pdf Home Assessment https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2025/12/Home- Assessment-2025.pdf Wildfire Home Risk Assessment https://storageocfaprod001.blob.core.windows.net/blobocfaprod01/2025/07/OCFA-RSG- Home-Assessment-Form-688b05b09d57e.pdf Zone 0 At-A-Glance https://34c031f8-c9fd-4018-8c5a-4159cdff6b0d-cdn-endpoint.azureedge.net/- /media/calfire-website/prepare/zone-0-at-a-glance.pdf 287 Required Response to the Grand Jury Findings and Recommendations in “Wildfires Hit Home” Background The City of Huntington Beach is impacted by wildfires and, with the release of updated Local Responsibility Area (LRA) maps in 2025, now contains a designated High Fire Hazard Severity Zone (HFHSZ) within its jurisdiction. This zone includes 217 parcels, primarily consisting of single-family homes and a small number of condominium-style apartments, all of which must comply with HFHSZ requirements. To meet the mandates imposed on HFHSZs and reduce wildfire risk to the community, the Huntington Beach Fire Department (HBFD) conducted a robust public engagement and comment process. We subsequently issued a non-codified ordinance adopting the CalFire maps (Ordinance No. 4336). Following adoption of the maps, the HBFD developed a defensible space inspection program to document findings and issue reports as required by Civil Code 1102.19. The purpose of these inspections is to assess compliance with home hardening and defensible space standards. While current regulations do not require property owners to implement the recommendations, the inspection reviews defensible space conditions and home-hardening measures that can reduce the risk of wildfire loss and educates affected property owners of the interventions to reduce risk. A significant portion of the HFHSZ is in the Brightwater neighborhood on the bluffs above the Bolsa Chica wetlands. In 2020, a brush fire occurred in the wetlands near the Brightwater development, burning 62 acres and advancing toward the Brightwater community. Prior to annexation in 2020, Brightwater was under OCFA jurisdiction, which required a fuel modification plan to protect the development. In 2016, the Fire Department reissued the OCFA fuel modification permit, and it is now enforced by HBFD. This fuel modification, in combination with the rapid response of our firefighters, is credited with preventing the destruction of homes in the area. The city’s response to the Grand Jury’s request for agreements on the findings is based on a general knowledge of the impact of wildland fires in our State and County. Having a relatively small HFHSZ and no VHFHSZs, Huntington Beach homeowners have significantly less hazard compared to other Orange County cities with Very High Fire Hazard Severity Zones (VHFHSZ). We remain engaged with our community and will continue to ensure that our residents have the knowledge and resources to reduce fire risk and maintain robust wildfire prevention interventions to combat the rising costs of insurance. 288 Findings Finding F1 More frequent and severe wildfires driven by increasingly hotter, drier, and windier conditions in the Orange County wildland-urban interface are escalating impacts on financial and non-financial resources. Among the financial costs are dramatic increases in homeowners’ insurance premiums, on renewals, and inability to obtain insurance. City Council Response: Agree The City is aware of reports indicating that homeowner’s insurance premiums are increasing for properties located within High Fire Severity Zones in California. After consulting with members of the Brightwater HOA, which comprises the largest part of the HFHSZ, we are not currently aware of specific homeowners experiencing increased premiums due to the wildfire hazards. Finding F2 Actions that address conditions in the home ignition zone to significantly reduce ignition potential can prevent a community wildland-urban interface fire disaster or suburban conflagration. City Council Response: Agree The City agrees that proper maintenance of the Home Ignition Zone can significantly reduce the potential for a home to ignite during a wildland fire event. The HBFD will continue to enforce the Brightwater Fuel Modification Plan, which incorporates a fire-safe home ignition zone requirements, and will continue providing wildland safety information to residents city-wide. Finding F3 Expanded community engagement to raise awareness and provide support regarding home hardening and defensible space will increase the effectiveness of wildfire risk mitigation and insurance risk reduction efforts. City Council Response: Agree Community education and engagement are essential components of wildfire risk reduction, empowering homeowners to harden their homes, maintain defensible space, and improve the overall resilience of their properties. The HBFD maintains educational materials on the City’s web site and will continue expanding outreach efforts through public events, fairs and community meetings such as HOA gatherings to directly engage affected residents. 289 Finding F4 Achieving community-level and property-level wildfire risk mitigation designations (such as Firewise USA Site, Fire Risk Reduction Community, or Insurance Institute for Business and Home Safety certification) reduces wildfire risk and helps lower insurance premiums. City Council Response: Agree The City agrees that community-level wildfire mitigation efforts have the potential to reduce risk and, in turn, may contribute to lower insurance premiums. The HBFD permitted Brightwater Fuel Modification Plan already includes a community requirement to maintain defensible space adjacent to the homes bordering the Bolsa Chica Nature Preserve. The HBFD will continue to promote community-wide mitigation in our outreach. Finding F5 All county residents should be aware that Safer from Wildfire regulations require insurers to offer discounts to homeowners and communities implementing home-hardening and defensible-space measures, regardless of whether the property is located in a Fire Hazard Severity Zone. City Council Response: Agree The City concurs that insurers should offer discounts to homeowners that implement home- hardening and defensible-space measures. The City has already provided this information to the Brightwater HOA and will further promote Safer from Wildfire regulations to the broader community, particularly homeowners in the HFHSZ. Finding F6 AB 888, the California Safe Homes Grant Program, provides financial assistance to eligible homeowners, cities, counties, and special districts for home-hardening and defensible-space measures. Applying for and using these grant funds will reduce wildfire losses and improve insurability and resilience in vulnerable communities. City Council Response: Agree The City agrees that AB 888 represents a valuable tool for reducing wildfire risk through targeted investments in home hardening and defensible space improvements. We will continue sharing grant information with our community through various communication channels including print materials, social media, Orange County wildfire fairs, and HOA presentations. 290 Recommendations Recommendation R2 By December 31, 2026, cities and fire service agencies, including the Orange County Fire Authority, should commit to participation in a countywide annual wildfire prevention fair planned by the Orange County Board of Supervisors to showcase wildfire prevention outreach programs. [F1–F6] City Council Response: Will be implemented HBFD, the lead department, is prepared to participate in a countywide annual wildfire prevention fair in the near future. We will encourage all residents—especially those living in the HFHSZ—to attend. Recommendation R4 By December 31, 2026, to ensure city residents are engaged and aware of wildfire risk reduction resources, OCFA member and non-member cities should distribute information, develop their own outreach programs, and establish a direct point of contact for residents, in addition to providing referrals to OCFA programs. [F1–F6] City Council Response: Will be implemented HBFD created a Wildland Fire Hazard Severity Zone webpage on the department’s website. The page provides information on defensible space requirements, home hardening strategies, building requirements within the HFHSZ, and instructions for requesting a defensible space inspection from HBFD staff. In addition to the website, HBFD staff maintain direct contact with affected target residents such as the Brightwater HOA to ensure residents are aware of the hazards associated with the nearby severity zone. Staff have not yet established formal outreach for other areas within the HFHSZ, and the HBFD will continue to improve their outreach. HBFD staff also regularly engage with individuals concerned about brush fires in open-space areas with heavy fuels—such as Central Park South—even when those areas fall outside the HFHSZ. HBFD’s Community Risk Reduction Division is responsible for this outreach. The goal is to expand outreach beyond the Brightwater HOA to all single-family homes, condominiums, and apartment communities in the HFHSZ to provide education on defensible space, home hardening, and wildfire risk reduction best practices. Since the law does not require home hardening or individual property defensible space in the current law for HFHSZs, we provide information on options to reduce the risk of wildfire damage using proven techniques and technologies. 291 Casey McKeon | Mayor Office: (714) 536 – 5237 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov July 21, 2026 Sheila F. Hanson Presiding Judge Orange County Superior Court Office of the Grand Jury 700 Civic Center Drive West Santa Ana, CA 92701 RE: HUNTINGTON BEACH RESPONSE TO GRAND JURY REPORT Honorable Sheila F. Hanson, On behalf of the City Council and with the support of the Huntington Beach Fire Department, I am pleased to submit Huntington Beach’s formal response to the Orange County Grand Jury’s report, “Wildfires Hit Home.” The attached document, reviewed and approved by the City Council, addresses each finding and recommendation as required. We recognize the Grand Jury’s concerns regarding the increasing frequency and severity of wildfires in Orange County, particularly in wildland-urban interface areas. With the release of updated Local Responsibility Area maps, Huntington Beach now includes a designated High Fire Hazard Severity Zone (HFHSZ). While our city faces a lower wildfire hazard compared to other Orange County communities, we remain vigilant and proactive in our approach. The Fire Department has implemented a defensible space inspection program and maintains robust community outreach program. We are committed to expanding outreach to all affected residents and participating in countywide wildfire prevention initiatives. We agree with the Grand Jury’s findings and support recommendations for increased community engagement, participation in annual wildfire prevention fairs, and promotion of programs such as Safer from Wildfires and AB 888. Huntington Beach will continue to provide residents with the knowledge and resources needed to reduce fire risk and maintain resilient communities. 292 CITY OF r. HUNTINGTON BEACH Office: (714) 536 – 5553 | 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov Thank you for the opportunity to respond. We look forward to continued collaboration and communication to protect Huntington Beach and Orange County residents. Sincerely, Casey McKeon Mayor Enclosure: Huntington Beach’s Required Responses from “Wildfire Hits Home” cc: Orange County Grand Jury Orange County Board of Supervisors City Council City Manager Fire Chief 293 CITY OF HUNTINGTON BEACH Response to Grand Jury Report: Wildfires Hit Home Fire Chief Eric McCoy 294 Purpose of the Report •The Grand Jury convened to address increasing challenges for homeowners living in the fire hazard severity zones. •Goal to: •Identify shared responsibilities of local governments, fire service agencies, communities, and homeowners to reduce wildfire risk in the wildland-urban interface. •Investigate actions taken by the California legislature and Department of Insurance to provide relief to policy holders. •Inform communities and homeowners about home hardening, defensible space, insurance risk reduction and wildfire safety awareness. 295 PC833.05 Response •For Each Finding: •Must state Agree or Disagree (wholly or partially) •If disagreeing, must specify which part and explain the reasons 296 PC833.05 Response •For Each Recommendation: •Must choose one of the following: •Implemented (include a summary of actions taken) •Will be implemented (provide a timeline) •Requires further analysis (explain scope and provide timeline) 297 Background & Context How Huntington Beach became home to a Fire Hazard Severity Zone In 2025, updated Local Responsibility Area maps designated the City's first High Fire Hazard Severity Zone (HFHSZ). The City adopted the CalFire maps by Ordinance No. 4336 following a robust public engagement process, then launched a defensible- space inspection program under Civil Code 1102.19. Lower hazard than our neighbors. With a relatively small HFHSZ and no Very High zones, Huntington Beach homeowners face significantly less hazard than Orange County cities that contain VHFHSZs. 217 Parcels in the new HFHSZ Mostly single-family homes 2025 First HFHSZ designated Via updated LRA maps No. 4336 Ordinance adopting CalFire maps After public engagement 1102.19 Civil Code inspection basis Defensible-space program 298 4t Findings and Responses 299 Grand Jury Findings • F1–F3 The City Council response to all six findings is AGREE F1 Wildfires are driving up insurance costs Premium increases, non-renewals, and inability to obtain coverage are escalating in the wildland-urban interface. AGREE City response: Brightwater HOA — the largest part of the HFHSZ — reports no owners currently facing increased premiums. F2 Home ignition zone actions prevent disaster Reducing ignition potential in the home ignition zone can prevent a wildland-urban interface conflagration. AGREE City response: HBFD enforces the Brightwater Fuel Modification Plan and shares wildland safety info city- wide. F3 Community engagement increases effectiveness Outreach on home hardening and defensible space improves both wildfire and insurance-risk mitigation. AGREE City response: Educational materials are online; outreach is expanding through events, fairs, and HOA gatherings. 300 Grand Jury Findings • F4–F6 Mitigation designations, insurer discounts, and state grant funding F4 Mitigation designations reduce risk & premiums Firewise USA, Fire Risk Reduction Community, and IBHS certifications lower wildfire risk and can lower premiums. AGREE City response: The Brightwater Fuel Modification Plan already requires community defensible space; HBFD will keep promoting designations. F5 Safer from Wildfire requires insurer discounts Insurers must offer discounts for home-hardening and defensible-space measures — regardless of hazard zone. AGREE City response: Already shared with the Brightwater HOA; HBFD will promote these regulations to the broader community. F6 AB 888 grant funding aids resilience The California Safe Homes Grant Program funds home-hardening and defensible-space work for eligible owners. AGREE City response: HBFD will share grant information via print, social media, OC wildfire fairs, and HOA presentations. 301 Recommendations • R2 & R4 Both recommendations: WILL BE IMPLEMENTED by December 31, 2026 R2 Countywide Wildfire Prevention Fair Commit to participating in the annual wildfire prevention fair planned by the OC Board of Supervisors to showcase prevention outreach. WILL BE IMPLEMENTED •HBFD, is prepared to participate in the near future. •Residents — especially those in the HFHSZ — will be encouraged to attend. R4 Resident Outreach & Direct Contact Distribute information, develop local outreach programs, and establish a direct point of contact for residents. WILL BE IMPLEMENTED •Launched a Wildland Fire Hazard Severity Zone webpage. •Direct contact maintained with the Brightwater HOA. •Community Risk Reduction Division leads and is expanding outreach. 302 • e ( ___ ) G ( ___ ) W H E R E W E G O F R O M H E R E Actions Underway HFHSZ Webpage Defensible-space and home-hardening guidance, building requirements, and inspection requests. Inspection Program Defensible-space inspections documenting findings under Civil Code 1102.19. Direct Engagement Ongoing contact with the Brightwater HOA and residents near open-space fuels. Expanding Reach From Brightwater to every home, condo, and apartment community in the HFHSZ. Our commitment. HBFD will continue to ensure residents have the knowledge and resources to reduce fire risk — and to maintain robust wildfire prevention that helps combat the rising cost of insurance. Huntington Beach Fire Department • Community Risk Reduction Division 303 Recommended Action 304 Staff Recommendations •Approve transmittal letter with formal response •Authorize the Mayor to sign and submit the response to the Presiding Superior Court Judge •Direct staff to ensure continued compliance with Grand Jury recommendations 305 Alternative Action •Do not approve the formal response, and direct staff accordingly. 306 Questions? 307 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-596 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Eric Parra, Chief of Police PREPARED BY:Lt. Brian Schreiber Subject: Annual Military Equipment Use Report (AB 481) Statement of Issue: California Government Code Chapter 12.8, “Funding, Acquisition, and Use of Military Equipment ,” in part requires that the City review the Ordinance 4255 (Attachment 1, Exhibit 3), which approved the funding, acquisition, or use of military equipment at least annually and, vote on whether to renew the ordinance at a regular meeting. In addition, the City is required to determine, based on the annual military equipment report submitted as part of this annual process, whether each type of military equipment identified in that report has complied with the following standards for approval: 1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. 2. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. 3. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. 4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. If the City determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth above, the City shall either disapprove a renewal of the authorization for that type of military equipment or require modifications City of Huntington Beach Printed on 7/15/2026Page 1 of 3 308 File #:26-596 MEETING DATE:7/21/2026 Financial Impact: The estimated ongoing annual maintenance and equipment replacement costs total is approximately $75,000 per unit annually. Sufficient funds are budgeted each year for the Police Department out of the General Fund to cover these costs. Recommended Action: A) Approve report and renew Ordinance No. 4255, authorizing the continued use of the listed military equipment by the Police Department; and B) Find that each type of military equipment identified in that report attached hereto as Attachment 1 complies with the following standards for approval: 1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. 2. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. 3. Any future purchased equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. 4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. Alternative Action(s): Do not renew Ordinance and direct staff accordingly. Analysis: The HBPD possesses and uses a wide variety of military equipment to assist in safely achieving the furtherance of its mission, i.e. to provide the highest level of service to our residents, businesses, visitors and the public through a partnership with our community to preserve and improve the quality of life in Huntington Beach. While the inventory of military equipment varies, the mere possession of the equipment does not warrant the use for every incident. The inventory is detailed in Attachment 1, Exhibit 4 of this Request for Council Action. Per HBPD Policy 707 the use of military equipment is restricted to certain instances as controlled by the HBPD Policy on Use of Force, and in some cases only by certain units and personnel. City of Huntington Beach Printed on 7/15/2026Page 2 of 3 309 File #:26-596 MEETING DATE:7/21/2026 Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Goal 8 - Public Safety, Strategy B - Bolster City's emergency management preparedness and response plans to ensure seamless public safety response during crisis events. Attachment(s): 1. HBPD Annual Military Equipment Use Report (AB 481), including Exhibits 1-4. 2. AB 481 PPT 2026 City of Huntington Beach Printed on 7/15/2026Page 3 of 3 310 311 EXHIBIT 1 312 @ STATE Of CAllrORNIA l 1n i..:m l AUTHENTICATED Sl<t.t...i.• fUCTIOMUc.A.LMAluiAl Assembly Bill No. 481 CHAPTER406 An act to add Chapter 12.8 (commencing with Section 7070) to Division 7 of Title I of the Government Code, relating to military equipment. [Approved by Governor September 30, 2021. Filed with Secretary of State September 30, 2021.] LEGISLATIVE COUNSEL'S DIGEST AB 481, Chiu. Law enforcement and state agencies: military equipment: funding, acquisition, and use. Existing law designates the Department of General Services as the agency for the State of California responsible for distribution of federal surplus personal property, excepting food commodities, and requires the department to, among other things, do all things necessary to the execution of its powers and duties as the state agency for the distribution offederal personal surplus property, excepting food commodities, in accordance with specified federal law. Existing law, the Federal Surplus Property Acquisition Law of 1945, authorizes a local agency, as defined, to acquire surplus federal property without regard to any law which requires posting of notices or advertising for bids, inviting or receiving bids, or delivery of purchases before payment, or which prevents the local agency from bidding on federal surplus property. Existing federal law authorizes the Department of Defense to transfer surplus personal property, including arms and ammunition, to federal or state agencies for use in law enforcement activities, subject to specified conditions, at no cost to the acquiring agency. This bill would require a law enforcement agency, defined to include specified entities, to obtain approval of the applicable governing body, by adoption of a military equipment use policy, as specified, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill would also require similar approval for the continued use of military equipment acquired prior to January l, 2022. The bill would allow the governing body to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The bill would require the governing body to annually review the ordinance and to either disapprove a renewal of the authorization for a type, as defined, of militaiy equipment or amend the military equipment use policy if it determines, based on an annual military equipment report prepared by the law enforcement agency, as provided, that the military equipment does not comply with the above-described standards for approval. The bill would specify these provisions do not preclude a county or local municipality from implementing 92 313 Ch. 406 -2 - additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies. This bill would also require a state agency, as defined, to create a milita1y equipment use policy before engaging in certain activities, publish the policy on the agency's internet website, and provide a copy of the policy to the Governor or the Governor's designee, as specified. The bill would also require a state agency that seeks to continue use of military equipment acquired prior to January 1, 2022, to create a military equipment use policy. This bill would also include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. By adding to the duties of local officials with respect to the funding, acquisition, and use of military equipment, this bill would impose a state-mandated local program. The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) The acquisition of military equipment and its deployment in our communities adversely impacts the public's safety and welfare, including increased risk of civilian deaths, significant risks to civil rights, civil liberties, and physical and psychological well-being, and incurment of significant financial costs. Military equipment is more frequently deployed in low-income Black and Brown communities, meaning the risks and impacts of police militarization are experienced most acutely in marginalized communities. (b) The public has a right to know about any funding, acquisition, or use of military equipment by state or local government officials, as well as a right to participate in any government agency's decision to fund, acquire, or use such equipment. (c) Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public's welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input. 92 314 -3 -Ch. 406 ( d) Legally enforceable safeguards, including transparency, oversight, and accountability measures, must be in place to protect the public's welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used. (e) The lack of a public fornm to discuss the acquisition of military equipment jeopardizes the relationship police have with the community, which can be undermined when law enforcement is seen as an occupying force rather than a public safety service. SEC. 2. Chapter 12.8 (commencing with Section 7070) is added to Division 7 of Title 1 of the Government Code, to read: CHAPTER 12.8. FUNDING, ACQUISITION, AND USE OF MILITARY EQUIPMENT 7070. For purposes of this chapter, the following definitions shall apply: (a) "Governing body" means the elected body that oversees a law enforcement agency or, ifthere is no elected body that directly oversees the law enforcement agency, the appointed body that oversees a law enforcement agency. In the case of a law enforcement agency of a county, including a sheriff's department or a district attorney's office, "governing body" means the board of supervisors of the county. (b) "Law enforcement agency" means any of the following: (I) A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. (2) A sheriff's department. (3) A district attorney's office. (4) A county probation department. (c) "Military equipment" means the following: (I) Umnanned, remotely piloted, powered aerial or ground vehicles. (2) Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this subdivision. (3) High mobility multipurpose wheeled vehicles (HMMWV), c01mnonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision. (4) Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion. (5) Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. (6) Weaponized aircraft, vessels, or vehicles of any kind. (7) Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, 92 315 Ch. 406 -4- or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision. (8) Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subdivision. (9) Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision. (10) Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency. ( 11) Any firearm or fireann accessory that is designed to launch explosive projectiles. (12) "Flashbang" grenades and explosive breaching tools, "tear gas," and "pepper balls," excluding standard, service-issued handheld pepper spray. (13) Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD). ( 14) The following projectile launch platforms and their associated munitions: 40mm projectile launchers, "bean bag," rnbber bullet, and specialty impact munition (SIM) weapons. (15) Any other equipment as determined by a governing body or a state agency to require additional oversight. ( 16) Notwithstanding paragraphs (1) through (15), "military equipment" does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency. (d) "Militaty equipment use policy" means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses, at a minimum, all of the following: ( l) A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. (2) The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment. (3) The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. (4) The legal and procedural mies that govern each authorized use. (5) The training, including any course required by the Conunission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public's welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy. (6) The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight 92 316 -5-Ch. 406 authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. (7) For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner. (e) "State agency" means the law enforcement division of every state office, officer, department, division, bureau, board, and commission or other state body or agency, except those agencies provided for in Article IV ( except Section 20 thereof) or Article VI of the California Constitution. (f) "Type" means each item that shares the same manufacturer model number. 7071. (a) (1) A law enforcement agency shall obtain approval of the governing body, by an ordinance adopting a military equipment use policy at a regular meeting of the governing body held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M . Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable, prior to engaging in any of the following: (A) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code. (B) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (C) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. (D) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. (E) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (F) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. (G) Acquiring military equipment through any means not provided by this paragraph. (2) No later than May 1, 2022, a law enforcement agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall commence a governing body approval process in accordance with this section. If the governing body does not approve the continuing use of military equipment, including by adoption pursuant to this subdivision of a military equipment use policy submitted pursuant to subdivision (b), within 180 days of submission of the proposed military equipment use policy to the governing body, the law enforcement agency shall cease its use of 92 317 Ch. 406 -6- the military equipment until it receives the approval of the governing body in accordance with this section. (b) In seeking the approval of the governing body pursuant to subdivision (a), a law enforcement agency shall submit a proposed military equipment use policy to the governing body and make those documents available on the law enforcement agency's internet website at least 30 days prior to any public hearing concerning the military equipment at issue. (c) The governing body shall consider a proposed military equipment use policy as an agenda item for an open session of a regular meeting and provide for public conunent in accordance with the Bagley-Keene Open Meeting Act (Article 9 ( conunencing with Section 11120) of Chapter I of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 ( commencing with Section 54950) of Part I of Division 2 of Title 5), as applicable. ( d) ( 1) The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following: (A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties. (C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. (D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconfonning uses and ensure future compliance. (2) In order to facilitate public participation, any proposed or final military equipment use policy shall be made publicly available on the internet website of the relevant law enforcement agency for as long as the military equipment is available for use. ( e) (I) The governing body shall review any ordinance that it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (2), vote on whether to renew the ordinance at a regular meeting held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable. (2) The governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the standards for approval set forth in subdivision ( d). If the governing body detennines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth in subdivision (d), the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modifications 92 318 -7 -Ch. 406 to the military equipment use policy in a manner that will resolve the lack of compliance. (f) Notwithstanding subdivisions (a) to (e), inclusive, if a city contracts with another entity for law enforcement services, the city shall have the authority to adopt a military equipment use policy based on local community needs. 7072. (a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval , and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall , at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment: (1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. ( 4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. (b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the ammal military equipment report and the law enforcement agency's funding, acquisition, or use of military equipment. 7073. (a) A state agency shall create a military equipment use policy prior to engaging in any of the following: (1) Requesting military equipment made available pursuant to Section 2576a ofTitle 10 of the United States Code . (2) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (3) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing . 92 319 Ch. 406 -8 - ( 4) Collaborating with a law enforcement agency or another state agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. (5) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (6) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, or to apply to receive, acquire, use, or collaborate in the use of, military equipment. (7) Acquiring military equipment through any means not provided by this subdivision. (b) No later than May 1, 2022, a state agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall create a military equipment use policy. (c) A state agency that is required to create a military equipment use policy pursuant to this section shall do both of the following within 180 days of completing the policy: (I) Publish the military equipment use policy on the agency's internet website. (2) Provide a copy of the military equipment use policy to the Governor or the Governor's designee. 7074. The Legislature finds and declares that ensuring adequate oversight of the acquisition and use of military equipment is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities and shall supersede any inconsistent provisions in the charter of any city, county, or city and county. 7075. Nothing in this chapter shall preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies. SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Chapter 12.8 (commencing with Section 7070) to Division 7 of Title I of the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings: Requiring local agencies to hold public meetings prior to the acquisition of military equipment further exposes that activity to public scrutiny and enhances public access to information concerning the conduct of the people's business. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would 92 320 -9 -Ch. 406 result from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution. 0 92 321 EXHIBIT 2 322 Policy Huntington Beach Police Department 707 Huntington Beach PD Policy Manual Military Equipment 707.1 PURPOSE AND SCOPE The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072). 707.1.1 DEFINITIONS Definitions related to this policy include (Government Code§ 7070): Governing body -The elected or appointed body that oversees the Department. Military equipment -Includes but is not limited to the following: • Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram. Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition. • Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms. • Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray. Area denial electroshock devices, microwave weapons, water cannons, long-range acoustic devices (LRADs), acoustic hailing devices, and sound cannons. • Kinetic energy weapons and munitions. • Any other equipment as determined by a governing body or a state agency to require additional oversight. Copyright Lexipol, LLC 2026/01/07, All Rights Reserved. Published with permission by Huntington Beach Police Department Military Equipment -1 323 Huntington Beach Police Department Huntington Beach PD Policy Manual Military Equipment 707.2 POLICY It is the policy of the Huntington Beach Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 707.3 MILITARY EQUIPMENT COORDINATOR The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to: (a) Acting as liaison to the governing body for matters related to the requirements of this policy. (b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body. (c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Huntington Beach Police Department (Government Code § 7071 ). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include: 1. Publicizing the details of the meeting. 2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment. (f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072). (g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. 707.4 MILITARY EQUIPMENT INVENTORY The following constitutes a list of qualifying equipment for the Department: [Insert attachment here] 707.5 APPROVAL The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071 ). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code§ 7071 ): Copyright Lexipo!, LLC 2026/01/07, All Rights Reserved. Published with permission by Huntington Beach Police Department Military Equipment - 2 324 Huntington Beach Police Department Huntington Beach PD Policy Manual Military Equipment (a) Requesting military equipment made available pursuant to 10 USC§ 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. (d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing militaryequipmentfor a purpose, in a manner, or by a person not previously approved by the governing body. (f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment. (g) Acquiring military equipment through any means not provided above. 707.6 COORDINATION WITH OTHER JURISDICTIONS Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. 707.7 ANNUAL REPORT Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072). The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 707.8 COMMUNITY ENGAGEMENT Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment. Copyright Lexipol, LLC 2026/01/07, All Rights Reserved. Published with permission by Huntington Beach Police Department Military Equipment -3 325 EXHIBIT 3 326 UNCODIFIED ORDINANCE NO. 4255 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A MILITARY EQUIPMENT USE POLICY CONSISTENT WITH ASSEMBLY BILL NO. 481, AND MAKING A FINDING OF EXEMPTION UNDER CEQA WHEREAS, the City of Huntington Beach is a charter city and municipal corporation duly created and existing under a charter pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs. WHEREAS, the California Legislature passed, and the Governor signed, Assembly Bill 48 l (AB 481 ), which requires City Council approval, via adoption of a "military equipment use policy" by ordinance, prior to the funding, acquisition, or use of "military equipment," as defined in the Legislation, by May I, 2022. WHEREAS, the Huntington Beach Police Department (HBPD) is in possession of certain items of equipment that qualify as "military equipment" under AB 481 and further intends to acquire and use other items of military equipment as critical tools to safeguard the public's health, welfare, safety, civil rights, and civil liberties. WHEREAS, the HBPD's ability or inability to use its "military equipment" has the potential to impact the health, safety, and welfare of residents in the City, particularly as to its ability to prevent and address crime in the City. As such, and notwithstanding any argument concerning the applicability of AB 481 to charter cities, the City Council finds that there is a need to adopt a military equipment use policy in order to protect the public health, safety, and welfare to ensure that the HBPD is unable to utilize its own vital resources. WHEREAS, the HBPD has submitted and proposed a military equipment use policy consistent with AB 481, and has made the proposed policy available on the HBPD website for at least 30 days prior to the public hearing concerning the military equipment at issue. WHEREAS, all other legal prerequisites prior to the adoption of this Ordinance have occurred. The City Council of the City of Huntington Beach does hereby ordain as follows; SECTION I Mandatory Findings. The City Council finds that: A. The military equipment inventoried in proposed HBPD Policy 706 attached hereto and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objectives of officer and civilian safety. B. The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties. C. The equipment is reasonably cost effective compared to available alternatives that can achieve the same objectives of officer and civilian safety. 327 Ordinance No. 4255 SECTION 2. Military Equipment Use Policy Adopted . HBPD Policy 706 is hereby approved and adopted. SECTION 3. Annual Council Review. The HBPD shall submit an annual military equipment rep011 consistent with the information required by Government Code Section 7070 et. seq , and the City Council shall thereafter determine whether each type of military equipment therein complies with the standards for approval. The City Council shall, on an annual basis, review this Ordinance and vote on whether to renew its approval until such time that the Council approval provision required by AB 481 is amended, overturned , or revoked. SECTION 4. CEOA. This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act ("CEQA"), the State CEQA Guidelines, and the environmental regulations of the City. The City Council hereby finds and determines that the Ordinance is exempt from CEQA under the general rule in CEQA Guidelines Section 15061 (b )(3) that CEQA applies only to projects which have the potential for causing a significant effect on the environment and because it can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment. SECTION 5. Effective Date. This Ordinance shall become effective 30 days after its passage. SECTION 6. Sevcrability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, 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 remainder of this ordinance and shall not affect other provisions of this Ordinance which can be given effect without the invalid provision or application , and to this end, the provisions of this Ordinance are severable. The City Council hereby declares 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 sections, subsections, subdivisions, sentences, clauses, phrases , or portions thereof be declared invalid or unconstitutional. SECTION 7. Ce11ification and Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published in the manner required by law. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the !?"-'day of "?no/ , 2e;. • --~ ATTEST: APPROVED AS TO FORM : City Clerk 2 328 Ordinance No. 4255 REVIEWED AND APPROVED: -~~ City Manager 3 329 Uncodified Ord. No. 4255 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Counpil of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a Regular meeting thereof held on May 3, 2022, and was again read to said City Council at a Regular meeting thereof held on May 17, 2022, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick NOES: None ABSENT: None ABSTAIN: None I, Robin Estanislau, CITY CLERK of the City of Huntington Beach and ex--officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Wave on May 27, 2022. In accordance with the City Charter of said City. Robin Estanislau. City Clerk Deputy City Clerk ' City Cieri<: and ex-officio Clerk of the City Council of the City of Huntington Beach, California 330 EXHIBIT 4 331 1. UNMANNED AIRCRAFT SYSTEM (UAS}: An unmanned aircraft along with the associated equipment necessary to control it remotely. a. Description, Quantity, Capabilities and Purchase Cost i. OJI MAVIC 3 -Cost: $2,049 each; quantity: 1. UAS that weighs approximately 895 grams and has video recording capabilities with approximately 40 minutes of flight time. ii. OJI MAVIC ENTERPRISE DUAL-Cost: $2,500 each; quantity: 1. UAS that has a color and thermal camera as well as audible speaker and light, capable of video recording and weighs 899 grams with approximately 30 minutes of flight time. iii. OJI MAVIC 2 ENTERPRISE-Cost: $2,495 each; quantity: 12. UAS that has a color zoom camera as well as audible speaker and light, capable of video recording and weighs 899 grams with approximately 30 minutes of flight time. iv. OJI MAVIC ENTERPRISE ADVANCED -Cost: $6,500 each; quantity: 4. UAS that has a color and thermal zoom camera as well as an audible speaker and light, capable of video recording and weighs 909 grams with approximately 31 minutes of flight time. v. OJI MAVIC 3 THERMAL-Cost: $5,498 each; quantity: 2. UAS that weighs approximately 920 grams and has thermal and video recording capabilities with approximately 40 minutes of flight time. vi. OJI MAVIC PRO -Cost: $1,500 each; quantity: 1. UAS that weighs approximately 899 grams and has color video recording capabilities with approximately 25 minutes of flight time. vii. OJI Avata -Cost: $1,000 each; quantity 1. UAS that weighs approximately 41 O grams and has an FPV color camera with approximately 18 minutes of flight time. viii. OJI Avata 4-Cost: $1,100 each; quantity 1. UAS that weighs approximately 377 grams and has an FPV color camera with approximately 23 minutes of flight time. ix. Skydio X10-Cost: $16,000 each; quantity 3. UAS that weighs approximately 2 kilograms and has day and night color/thermal cameras with zoom capabilities with approximately 40 minutes of flight time. 332 b. Purpose. Small Unmanned Aerial Systems are to be deployed when their view would assist officers or incident commanders with the following situations, which include, but are not limited to: i. Major traffic collision investigations ii. Evidence collection iii. Search for missing persons/swimmers iv Crime scene photography v. Natural disaster management vi. Situational awareness during major incidents vii. SWAT, tactical or other public safety and life preservation missions viii.In response to specific requests from local, state or federal fire authorities forfire response and/or prevention. c. AuthoJized Use Only assigned UAS team members who have completed the required training and hold a valid FAA Part 107 license, shall be permitted to operate any UAS during approved missions. d. !;_ii;pJtcted Life Span All UAS equipment, approximately 3-5 years. e. Fiscal Impact Estimated annual maintenance and battery replacement cost is $30,000. For 2024 that cost was approximately $26,000. f. Training All department UAS operators are licensed by the Federal Aviation Administration for UAS operation under FAA Regulation 14 CFR Part 107. In addition, each operator must attend initial department or POST-certified training and participate in ongoing training. Training costs for 2024 were approximately $4,500. g. Legal and Procedural Rules FAA Regulation 14 CFR Part 107 and the Huntington Beach Lexi pol Policy section 463 {UAS Policy). It is the policy of the Huntington Beach Police Department to utilize UAS only for official purposes and in a manner that respects the privacy of our community pursuant to State and Federal law. 333 2. ROBOT: A remotely controlled, unmanned machine that operates on the ground, which is utilized to enhance the safety of the community and officers. a. Descrip.tion, .. Quantity~wiJ:tilities_and Purchase Cost i. TRANSCEND VANTAGE TACTICAL ROBOT -Cost: $26,000; quantity: 1. A remotely operated, tactical robot providing officers with the ability to observe the interior of a structure without entering. This capability increases the safety of community members, officers and suspects by providing the operator with the ability to observe and locate subjects without the risk of a face-to-face confrontation. Additionally, the remote, two-way communication capability allows operators to de-escalate situations by negotiating the surrender of barricaded subjects. ii. RECON THROWBOT TACTICAL ROBOT -Cost: $15,000; quantity: 2. A throwable micro-robot platform that enables operators to obtain instantaneous video and audio reconnaissance within indoor or outdoor environments. This capability increases the safety of community members, officers and suspects by providing the operator with the ability to observe and locate subjects without the risk of face-to-face confrontation. This robot is portable and able to be easily carried by officers. b. Pur_pose To be used during tactical incidents to safely search a structure without exposing officers and/or community members to the risk of face-to-face confrontation. c. Authorized Us .. e Tactical robots shall only be deployed by Department personnel trained in their use. d. E..KJlected Life Span All robots, approximately 8-1 O years. e. FisJ;allrnpact Estimated annual maintenance and battery replacement costs of $3,000. For 2025, there were was no maintenance cost. t. Training All operators shall receive initial training before deploying the robots in the field. 334 There were no specific training costs for 2025. g. Legal and Procedural Rules The Department shall only utilize the robots for official law enforcement purposes, pursuant to State and Federal Law. 3. ARMORED VEHICLES: Commercially produced, ballistically protected, wheeled vehicles designed for law enforcement purposes. a. Description, Quantity, Capabilities and Purchase Cost i. LE NCO BEAR -Cost: $293,745; quantity: 1. The Lenco Bear is an armored rescue vehicle that seats 10-12 personnel with open floor plan that allows for rescue of down civilians and personnel. It can stop various projectiles which provides greater safety to civilians and officers beyond the protection level of shields and personal body armor. ii. TERRADYNE GUHRKA-Cost: $353,653; quantity: 1. The Terradyne Guhrka is an armored vehicle that seats 7-8 personnel with open floor plan that allows for rescue of down civilians and personnel. It can stop various projectiles which provides greater safety to civilians and officers beyond the protection level of shield and personal body armor. In addition, it is equipped with Advanced Lifesaving Equipment, at the level of an ambulance, to provide injured persons with an immediate, advanced level of medical treatment increasing the likelihood of reduced long-term injury or death. b. Purpose To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, assist in resolving critical incidents, and provide immediate, advanced lifesaving medical treatment. c. Authorized Use Armored vehicles shall only be deployed by personnel trained in their use and in a manner consistent with Department policies and procedures. d. Lifespan All vehicles have an estimated lifespan of 25 years. 335 e. Fiscal Impact Estimated annual maintenance costs of $10,000. For 2025, that cost was approximately $7,500. f. In11ning All drivers/operators shall attend formalized instruction in vehicle operations, practical driving instruction and deployment procedures. There were no specific training costs for 2025. g. Legal and Procedural Rules The Department shall only utilize armored vehicles for official law enforcement purposes, pursuant to State and Federal law. 4. MOBILE COMMAND POST VEHICLE (MCP): A vehicle used as a mobile office that provides shelter, a communications center, access to Department computer systems and restroom facilities during extended events. a. Description, Quantity, Capabilities and PurchaseC_ost FREIGHTLINER MT55 CHASSIS (custom built by LDV) VEHICLE -Cost: $191,000; quantity: 1. The MCP can also be utilized for SWAT/CNT and other critical incidents; preplanned, large events; searching for missing persons; natural disasters; and community events. b. Purpose To be used based on the specific circumstances of a given critical incident, large event, natural disaster or community event that is taking place. c. Authorized Use Only officers trained in their deployment and operations, in a manner consistent with Department policy, are authorized to operate the MCP. Only officers who have completed the California State Class B Commercial driving school and become properly licensed will be allowed to drive the MCP. d. Lifespan Estimated lifespan of 20 years on chassis and vehicle. Annual IT upgrades will be necessary. 336 e. Fiscal Impact Estimated annual maintenance costs of $7,500. For 2025, that cost was $5,826.00 to purchase an upgraded toilet. f. Training The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Driver/operators shall also undergo California Department of Motor Vehicles commercial vehicle testing (Class B). There were no specific training costs in 2025. g. Legal and Procedural Rules The Department shall only utilize the vehicle for official law enforcement purposes in accordance with California State law regarding the operation of motor vehicles. 5. CRISIS NEGOTIATION TEAM (CNT) VEHICLE: A vehicle used as a mobile crisis negotiations team office that provides shelter, access to Department computer systems, and a communications center on extended events. a. Description. Quantity. Capabilities aJJJ;LPurchase Cost FORD TRANSIT VAN (custom built) VEHICLE -Cost: $115,000; quantity: 1. The CNT vehicle can be utilized with SWAT/CNT callouts. b. Purpose To be utilized for critical incident callouts. c. Authorized Use The CNT vehicle will be used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a valid California driver's license. d. Lifespan Estimated lifespan of 30 years on chassis and vehicle. e. Fiscal Impact Estimated annual maintenance costs of $600. There were no annual maintenance costs for 2025. 337 f. Training To be used by officers and staff who have been properly trained in the safe handling of the vehicle. The driver of the vehicle shall have a valid California driver's license. There were no specific training costs in 2025. g. Legat Procedural Rules The Department shall only utilize the vehicle for official law enforcement purposes in accordance with California State law regarding the operation of motor vehicles. 6. LONG RANGE ACOUSTIC DEVICE (LRAD): Long Range Acoustical Device (LRAD) is a high intensity, directional acoustic array for long-range, crystal-clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device. a. Description, Quantity, Capabilities _and Purchase Cost LRAD 1 00X MAG-HS WIRELESS KIT -Cost: $16,586; quantity: 1. Self-contained, portable, and featuring an extended voice broadcast range out to 600 meters, the LRAD 100X ensures voice messages are clearly heard and understood. LRAD's optimized driver, waveguide, and power efficiency technologies enable the LRAD 1 00X to provide several hours of clear, continuous communication from a single battery charge. b. Purpose To be used to issue dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, evacuations, and police incidents (e.g., missing persons, perimeters for wanted suspects, K9 deployments, etc.). The LRAD may also be used to issue a warning tone. c. Authorized Use LRADs shall only be used by personnel trained in its deployment and used in a manner consistent with State and Federal law. d. Lifespan Estimated lifespan of 25 years. 338 Estimated annual maintenance costs of $400. There were no annual maintenance costs for 2025. f. Trainin_g All operators will receive training prior to operating the LRAD in the field. There were no specific training costs in 2025. g. Legal and Pr_ocedural Rules The Department shall only utilize the LRAD for official law enforcement purposes, pursuant to State and Federal law. 7. 40MM LAUNCHERS AND ROUNDS: 40mm launchers are utilized by Department personnel as a less-lethal tool to deploy less-lethal impact munitions and chemical munitions. a. Description. Quan1ity, Capabilities and Purchase Cost i. LMT TACTICAL SINGLE SHOT LAUNCHER, #1425 -Cost: $1,000; quantity: 57. The 40mm Single Launcher is a tactical single-shot launcher that features an integrated stock and an adjustable, integrated front grip with a top rail. It will fire standard 40mm less-lethal ammunition up to 4.8 inches in cartridge length. It will launch a 40mm less-lethal round up to 131 feet. ii. PENN ARMS, #1377, 40mm MULTI-LAUNCHER -Cost $2,890; quantity: 1. The 40mm Multi-Launcher is a tactical pump advance multi-shot (6) launcher that features an integrated stock with a top rail. It will fire standard 40mm less-lethal ammunition up to 4.8 inches in cartridge length. iii. DEFENSE TECHNOLOGY, 40mm EXACT IMPACT SPONGE, #6325 -Cost: $20; quantity: 270. A less lethal 40mm lightweight plastic and foam projectile fired from a single or multi-round purpose-built 40mm launcher with a rifled barrel at 345 FPS. The 30-gram foam projectile delivers 120 ft/lbs of energy on impact. The40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target. It is designed as a less-lethal option for violent people actively engaging in criminal behavior. Only members of the Department who have completed training by a POST-certified less-lethal instructor are authorized to deploy the 40mm round. 339 iv. DEFENSE TECHNOLOGY, 40mm EXACT IMPACT INERT & MARKING SPONGE, #6323 -Cost: $20; quantity: 185. A less lethal 40mm lightweight plastic and foam projectile fired from a single or multi-round purpose-built 40mm launcher with a rifled barrel at 305 FPS. The 3.8-gram foam projectile delivers 120 ft/lbs of energy on impact with inert marking agent. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target. It is designed as a less-lethal option for violent people actively engaging in criminal behavior. The marking feature is effective in identifying people who are in crowds, have the ability to flee, or who may attempt to flee from apprehension. Only members of the Department who have completed training by a POST-certified less-lethal instructor are authorized to deploy the 40mm round. v. DEFENSE TECHNOLOGY, FERRETT 40mm LIQUID BARRICADE PENETRATOR ROUND, #2262-Cost: $23; quantity: 42. A less lethal 40mm round used to penetrate barriers such as windows, hollow core doors, wallboard and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle. In a tactical deployment situation, the 40mm Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent or dangerous subjects. vi. COMBINED TACTICAL SYSTEMS, 4090-50 40mm AERIAL FLASH BANG. Cost: $48; quantity 65. A launched, less-lethal distraction device that travels outward and then bursts overhead, producing a very loud bang and intense flash of light. This combination causes temporary sensory overload-disorientation, distraction, and loss of situational awareness for a few seconds. vii. DEFENSE TECHNOLOGY, RUBBER BALL 1098 or RUBBER BALL 1098SC with SAFETY CLIP. Cost: $63.89; quantity 20. A handheld, less-lethal diversionary devices designed to create a loud report without producing a blinding flash or explosive fragmentation. Commonly used by law enforcement for crowd management and tactical operations, these devices function as "noise distraction" tools rather than impact munitions. b. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. 340 c. Authorized Us.e Situations for use of the less lethal weapon systems may include, but are not limited to: i. Self-destructive, dangerous and/or combative individuals ii. Riot/crowd control and civil unrest incidents iii. Circumstances where a tactical advantage can be obtained iv. Potentially vicious animals v. Training exercises or approved demonstrations vi. Tactical situations involving the deployment of the Department's SWAT Team d. Litespan LMT Single Shot Launcher: 25 years Penn Arms Launcher: 25 years All listed munitions: 5 years e. Fiscal Impact Annual maintenance cost is $50 for each launcher. For 2025, that cost was approximately $2,500. f. Training Personnel deploying less lethal or chemical agents will be trained in their use and deployment before using them in the field. A POST-certified less lethal or chemical agent instructor will conduct all training. Training costs for 2025 were approximately $1,500. g. Legal and Procedural Rules The Department shall only utilize 40mm launchers and rounds during critical incidents for official law enforcement purposes, pursuant to State and Federal law. 341 8. COMBINED SYSTEMS LC5 TACTICAL LAUNCHING CUP: Cups attach to 12-gauge, less-lethal shotguns allowing officers to launch canisters of chemical agents or smoke. a. Description, Quantity, Capabilities and Purchase Cost COMBINED SYSTEMS LC5 40mm LAUNCHING CUP-Cost: $435; quantity: 2. The LC5 Launching Cups are designed for the 5200 series grenades. The cups can be attached to virtually any 12-gauge shotgun and the munition launched with our model 2600 launching cartridge. b. PurposJ~ To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. c. Authorized Use Situations for use of the less-lethal weapon systems may include, but are not limited to: i. Self-destructive, dangerous and/or combative individuals ii. Riot/crowd control and civil unrest incidents iii. Circumstances where a tactical advantage can be obtained iv. Potentially vicious animals v. Training exercises or approved demonstrations vi. Tactical situations involving the deployment of the Department's SWAT Team d. Lifespan Estimated lifespan: 25 years e. Fiscal Impact There were no annual maintenance costs for 2025. f. Training Officers utilizing the launching cups are trained by POST-certified chemical agent instructors. There were no annual training costs for 2025. 342 g. Le!Slal and Procedural Rules The Department shall only utilize 40mm launching cups for official law enforcement purposes, pursuant to State and Federal law. 9. NOISE FLASH DIVERSIONARY DEVICES (NFDD): A device used to distract or divert a dangerous person's attention. a. Description. Quantity. Capabilities and Purchase.Cost i. COMBINED TACTICAL SYSTEMS, 7290-2 FLASH-BANG -Cost: $70; quantity: 15. A non-bursting, non-fragmenting, multi-bang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. ii. COMBINED TACTICAL SYSTEMS, 7290-3 FLASH-BANG -Cost: $107; quantity: 5. A non-bursting, non-fragmenting, multi-bang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. iii. COMBINED TACTICAL SYSTEMS, 7290-9 FLASH-BANG -Cost: $149; quantity: 5. A non-bursting, non-fragmenting, multi-bang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. iv. COMBINED TACTICAL SYSTEMS, 7290M MINI FLASH-BANG -Cost: $49 quantity: 25. The 7290M Flash-Bang exhibits all the same attributes of its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces, the new 7290M is approximately 30% lighter than the 7290 but still has the same 175 db output of the 7290 and produces 6-8 million candelas of light. v. DEFENSE TECHNOLOGY, 8933 LOW-ROLL RELOADABLE DIVERSION-ARY DEVICE -Cost: $78.89; quantity: 30. A non-bursting, non-fragmenting flashbang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. 343 vi. DEFENSE TECHNOLOGY, 8922CI LOW ROLL 2CI RELOADABLE DIVERSIONARY DEVICE -Cost: $102.49; quantity: 10. A non-bursting, non­ fragmenting flashbang device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. vii. DEFENSE TECHNOLOGY, 8901 RELOADS -Cost: $39.95; quantity: 40. The 12-Gram Distraction Device reload utilizes an M201A1 fuse that was designed for use with the Distraction Device reloadable steel body. b. Purpose A diversionary device is used to distract dangerous suspects during assaults, hostage rescue, room entry, or other high-risk arrest situations. Producing atmospheric overpressure and brilliant white light and, as a result, can cause short-term (6-8 seconds) physiological/psychological, sensory deprivation to give officers a tactical advantage. c. .11,uthorized Use Diversionary Devices shall only be used: i. By officers who have been trained in their proper use ii. In hostage and barricaded subject situations iii. In high risk warrant (search/arrest) services where there may be extreme hazards to officers iv. During other high-risk situations where their use would enhance officer safety v. During training exercises d. Lifespan Until used. e. Fiscal Impact There were no annual maintenance costs for 2025. f. Trainin_g Prior to use, officers must attend divisionary device training conducted by POST­ certified instructors. Training costs for 2025 were approximately $900. 344 g. Legal and Procedural Rules The Department shall only utilize NFDDs for official law enforcement purposes, pursuant to State and Federal law. 10. RIFLES AND AMMUNITION: Shoulder-fired firearms, with long, spirally grooved barrels, intended to cause projectiles to spin, improving accuracy over a long distance. a. Description, Quantity, Capabilities and Purchase Cost i. DANIEL DEFENSE DDM4 V7 223/5.56 PATROL RIFLE equipped with an Aimpoint optic, tactical light, and sling -Cost: $2,555; quantity: 58. The DDM4 V7 AR15-style firearm features M-LOK attachment technology with the Daniel Defense MFR 15.0 rail. Built around a cold hammer forged, 16- inch barrel, the V7 has a DD improved flash suppressor to reduce flash signature. The mid-length gas system provides smooth and reliable cycling under any condition and reduces both perceived recoil and wear on moving parts. With the M-LOK attachment points that run along 7 positions and an uninterrupted 1913 Picatinny rail on top, the V7 has adjustable back up iron sights. The independently ambi GRIP-N-RIP charging handle accommodates left-and right-handed shooters. This rifle also comes with the ergonomic Daniel Defense buttstock and pistol grip. ii. DANIEL DEFENSE SOCOM-MK18 223/5.56 SWAT RIFLE equipped with an Aimpoint optic, tactical light and sling -Cost: $2,600; quantity: 18. The SOCOM-MK18 AR15-style firearm features a quad-rail system, cold hammer forged 10.3-inch barrel. The MK18 delivers optimal maneuverability, reliability, accuracy and terminal ballistics using a wide variety of ammunition. Its carbine length gas system provides smooth and reliable cycling under harsh conditions and reduces perceived recoil. With the quad-rail attachment points that run along 7 positions and an uninterrupted 1913 Picatinny rail on top, the MK-18 has plenty of room for sights, optics, and accessories the user may require. Pairing a 10.3-inch barrel and the quad-rail also ensures compatibility with a wide variety of muzzle devices and sound suppressors. The independently ambi GRIP-N­ RIP charging handle accommodates left-and right-handed shooters. This rifle also comes with the ergonomic buttstock and pistol grip. iii. BUSHMASTERAR15 223./5.56 PATROL RIFLE equipped with Trijicon ACOG sight, tactical light and sling -Cost: $2,500; quantity 4. The AR15-style firearm features the Picatinny rail cage with Bushmaster 16" barrel and mid-length gas tube system. The Picatinny rail system allows attachments of the tactical light with pressure switch, adjustable iron sights and the Trijicon ACOG 4x32 model sight system. 345 iv. BUSHMASTER AR15 223./5.56 PATROL RIFLE equipped with iron sights and a sling, used strictly for the Ceremonial Detail. Cost: $1,000, quantity 8. The AR15 rifle is in an M4 configuration with a carry handle and fixed rifle stock. v. GEISSELE SUPER DUTY RIFLE CHF #08-392 equipped with an Aimpoint optic, tactical light, Surefire Suppressor and sling -Cost $3,400, quantity 90. Geissele SSA Triger, Bolt Carrier group -5.56 modular rail MK16 M­ LOK, Geissele A22 rifle grip. Surefire CTN Warcomp flash hider. Surefire second generation SoCom suppressor for 5.56. T1 Lower. Aim point Micro T-2 optic. Folding front and rear sights. vi. ACCURACY INTERNATIONAL AT308 RIFLE, cost: $4,700, quantity: 6 .. 308 Winchester (short action) 5.8kg (12.8lb) with empty magazine, no scope, 24" barrel, no muzzle brake. Fixed stock, standard adjustable cheek piece, fixed butt pad with spacers, pistol grip, flush cup spring attachment points, 20 MOA STANAG 4694/Mil Std 1913 action rail, double chamber standard muzzle brake. vii. REMINGTON 700 COMPACT TACTICAL RIFLE .308 -Cost: $2,000; quantity: 1. Remington's Model 700 Compact Tactical Rifle features a 416 stainless steel-barreled action with externally adjustable trigger. viii. WINCHESTER.223/5.56 TRAINING AMMUNITION -Cost: $466 per case of 1000; quantity: 95 cases. Winchester ammunition features a lead core 55- grain full metal, non-magnetic jacket. Non-corrosive boxer primer and new virgin brass casings can be reloaded up to seven times. ix. WINCHESTER 223./5.56 RANGER BALLISTIC SILVERTIP DUTY AMMUNITION #RA223BSTA -Cost: $898 per case of 1000; quantity 25 cases. Winchester Ranger is the highest line quality intended for law enforcement. Winchester Ranger 223 Remington has a muzzle velocity of 3240 feet per second and muzzle energy of 1262 feet pounds. Winchester Ranger ammo is reloadable, features new virgin brass casings and boxer primers. This ammunition is non-corrosive. x. FEDERAL TACTICAL TRU .308 168GR RIFLE ROUND -cost: $630 per case of 500; quantity: 1 O cases. The tactical ballistic tip bullet's polymer tip provides excellent accuracy, while tapered jackets allow rapid, yet controlled, expansion. The ammunition utilizes low flash propellants; the best Federal brass and crimped primers. This Federal 308 WinchesterTRU ammo features brass cases, boxer primer and is non-corrosive and 100% reloadable. It features a 168-grain ballistic tip. 346 xi. FEDERAL TACTICAL PREMIUM .308168 GR BONDED RIFLE ROUND-cost: $350 per case of 200; quantity: 5 cases. Federal Cartridge .308 Win Tactical Bonded Tip 168 Grain Duty Ammunition is made exclusively for law enforcement and achieves accuracy and terminal performance unmatched by any other ammunition. Designed to defeat the toughest barriers with minimal deflection. Federal Cartridge .308 bonded has a muzzle velocity of 2700 feet per second and muzzle energy of 2719 feet pounds. b. &!rpose To be used as precision weapons to address threats that exceed the capability of the Department's standard-issue handgun. c. Authorized Use Only members POST-certified in the use of the rifle are authorized to deploy them in the field. d. Lifespan Listed .223/5.56 caliber rifles have a 10-15 year lifespan. Listed .308 caliber rifles have a 10-15 year lifespan. Listed ammunition is good until used. e. fiscal Impact The Department budgets approximately $110,000 annually for all Department firearms ammunition. Annual maintenance cost for 2025 was approximately $8,000. f. Training Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. All members that operate any rifle are required to pass a range qualification two times a year. Annual training cost for 2025 was approximately $50,000. g. Legal and Procedural Rules The Department will only utilize rifles for official law enforcement purposes, pursuant to Department Policy and State and Federallaw. 347 11. CHEMICAL AGENT AND SMOKE CANISTERS: Canisters that contain chemical agents that are released when deployed. a. Description, Quantity, Capabilities and Purchase Cost i. DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER, oc, #1030 -Cost: $51; quantity: 12. The design of the Tri-Chamber Flameless OC Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is designed primarily for indoor, tactical situations to detect and/or dislodge a barricaded subject. The Tri­ Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals' effectiveness via heat and vaporization, while minimizing or negating the chance of fire to the structure. ii. DEFENSE TECHNOLOGY, RIOT CONTROL CONTINUOUS DISCHARGE GRENADE, CS, #1082 -Cost: $32; quantity: 25. The Riot Control CS Grenade is designed specifically for outdoor use in crowd control situations with a high-volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 inches by 2.35 inches and holds approximately 2.7 ounces. of active agent. iii. DEFENSE TECHNOLOGY, SPEDE-HEAT CONTINUOUS DISCHARGE CANISTER, CS, #1072 -Cost: $37; quantity: 13. The Spede-Heat'" CS canister is a high volume, continuous burn. It expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side, and one on the bottom. This launchable canister is 6.12 inches by 2.62 inches and holds approximately 2.9 ounces. of active agent. iv. DEFENSE TECHNOLOGY, POCKET TACTICAL CANISTER, CS, #1016 -Cost: $30; quantity: 10. The Pocket Tactical CS Canister is small and lightweight. The 0.9 ounces of active agent will burn approximately 20-40 seconds. At 4.75 inches by 1.4 inches in size, it easily fits in most tactical pouches. Though this device is slightly over four inches in length, it produces a smoke cloud so fast it appears to be an enveloping screen produced by a full-size 348 tactical canister. V. DEFENSE TECHNOLOGY, oc VAPOR AEROSOL GRENADE, #1056 -Cost: $55; quantity: 10. The Defense Technology OC Vapor Aerosol Grenade is for Law Enforcement and Corrections use to deliver a high concentration of Oleoresin Capsicum (OC) in a powerful mist. The grenade is designed for indoor use in confined areas and once deployed, inflames the mucous membranes and exposed skin resulting in an intense burning sensation. The incapacitating effect of the OC Vapor on the subject is dramatic with minimal decontamination needed. Removing the subject from the affected area to fresh air will resolve respiratory effects within minutes. The OC Vapor Aerosol Grenade is ideal for cell extractions or barricade situations where the use of pyrotechnic, powder or liquid devices is not practical or desired. vi. DEFENSE TECHNOLOGY, OC AEROSOL GRENADE 1.3% FOGGER, 6 OUNCE, #56854 -Cost: $22; quantity: 10. The 6-ounce OC Aerosol Grenade will deliver its payload of 1.3% MC% OC in 20-25 seconds. This is an anatomized mist which enhances the pungent 1.3% OC formulation. Ideal for area denial; areas like attics, garages, etc. This device has minimum cleanup. The canister may also be hand held to direct the spray pattern. This product is designed to provide room clearing ability with minimum cleanup requirements. vii. DEFENSE TECHNOLOGY RED SMOKE GRENADE #1067 -Cost $49; Quantity: 5. The Maximum Smoke Grenade is designed specifically for outdoor use in crowd control situations with a high-volume continuous burn that expels its payload in approximately 30-40 seconds through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable colored smoke grenade is 6.0 in. by 2.35 in. and holds approximately 2.9 ox. of active agent. viii. DEFENSE TECHNOLOGY POCKET TACTICAL GRENADE (RED) #1017R; Cost $39; Quantity 10. The Pocket Tactical Sat-Smoke Grenade is small and lightweight. The Sat-Smoke will burn approximately 20-40 seconds. At 4.75 in. by 1.4 in. in size, it easily fits in most tactical pouches. This launchable grenade, however, is normally used as a signaling or covering device. ix. COMBINED TACTICAL SYSTEMS INDOOR 52 SERIES BAFFLED GRENADE #5210B; Cost $68; Quantity 20. The Baffled Grenade can be used indoors with very minimal risk of fire. The 521 OB delivers a very high volume of white smoke. It is an excellent indoor option when the situation requires escalation of force. 349 x. COMBINED TACTICAL SYSTEMS BAFFLED CANISTER GRENADE, PYRO, LOW FLAME POTENTIAL #5230B; Cost $61; Quantity 15. Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire. xi. COMBINED TACTICAL SYSTEMS, CS CANISTER GRENADE #5230. Cost $45; Quantity 8. Large diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. Specifically for outdoor use and should not be deployed on rooftops, in crawl spaces or indoors due to potential fire hazard. Can be hand thrown or launched. Discharge duration can reach up to 40 seconds. b. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to: i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents. iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals. v. Training exercises or approved demonstrations. vi. Tactical situations involving the deployment of the Department's SWAT Team. c. Authorized Use Only officers who have received POST certification in the use of chemical agents are authorized to use chemical agents. d. Lifespan 5 years from manufacturing date. e. fiscal Impact There were no annual maintenance costs for 2025. 350 f. Training Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors. There were no annual training costs for 2025. g. Legal and Procedural Rules The Department shall only utilize explosive Chemical Agent and Smoke Canisters for official law enforcement purposes, pursuant to State and Federal law. 12. EXPLOSIVE BREACHING TOOLS: Tools that are used to conduct an explosive breach. a. nasJ:ription, Quantity, Capabilities and Purch_11se Cost i. PRIMACORD REINFORCED DETONATING CORD -Cost: $1 per foot; quantity: 2000 feet. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 mis, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives. ii. ORICA EXEL MS 40' SHOCK TUBE -Cost: $19 each; quantity: 60. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetra nitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 mis, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives. iii. ORICA EXEL MS 80' SHOCK TUBE -Cost: $28 each; quantity: 60. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 mis, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives. iv. BLASTING CAP -Cost: $12; quantity: 100. A blasting cap is a small, sensitive primary explosive device generally used to detonate a larger, more powerful and less sensitive secondary explosive such as TNT, dynamite or plastic explosive. Blasting caps come in a variety of types, including non-electric caps, electric caps, and fuse caps. v. BOOSTERS (Alpha Explosives) 10 GRAM UNCRIMPED -Cost: $5.73 each; quantity: 150. A high-power explosive, made of a highly safe pentolite 351 charge (a blend of TNT and PETN) for the initiation of blasting agents. Its main purpose is to provide an energetic pulse high enough to rapidly achieve an optimum velocity of detonation of the explosive. vi. FLEXSHEET PETN BASE C-1, SHEET EXPLOSIVE -Cost $450 per pound; quantity: 20 pounds. Used in conjunction with detonating cord and blasting caps to gain entry into a fortified structure. vii. FLEXSHEET PETN BASE C-2, SHEET EXPLOSIVE -Cost $450 per pound; quantity: 40 pounds. Used in conjunction with detonating cord and blasting caps to gain entry into a fortified structure. viii. FLEXSHEET PETN BASE C-3, SHEET EXPLOSIVE -Cost $450 per pound; quantity: 1 O pounds. Used in conjunction with detonating cord and blasting caps to gain entry into a fortified structure. ix. ROYAL ARMS RDI ROYAL DUAL INITIATOR SHOCK TUBE IGNITER, NSN# 1375-01-533-5362 -Cost: $590; quantity: 6. Mechanical initiator for explosive breaching operations. x. REMINGTON 870 BREACHING SHOTGUN w/ Royal Arms International Barrel -Cost: $500; quantity: 1. This weapon allows breachers to safely utilize shotgun breaching rounds to destroy deadbolts, locks and hinges. The stand-off that is attached to the end of the barrel allows for positive placement of the gun into the correct position and vents gases to prevent overpressure. This weapon can also defeat windows and sliding glass doors with a flash bang round. A less lethal 2.4 inch, 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). xi. ROYAL ARMS TESAR-SF GREEN CAP CUSTOM SOFT COPPER FRANGIBLE BREACHING ROUND 12 GAUGE -Cost: $6 per round; quantity: 25. The round is fired from a breaching shotgun and is used to destroy deadbolts, locks and hinges. xii. ROYAL ARMS HP CUTTER 12 GAUGE PURPLE CAP SOLID STEEL HOLLOW POINT CUTTER BREACHING ROUND -Cost: $8 per round; quantity: 25. The round is fired from a breaching shotgun and is used to cut rebar, penetrate security glass, car doors and can penetrate engine blocks. b. Purpose To safely gain entry into a fortified structure. c. Authorized Use 352 Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field and during training exercises. Breaching Shotgun: 25 years Shock Tube: 25 years Blasting Caps: 1 O years Boosters: 10 years Detonating cord: 1 O years Sheet Explosive: 1 O years Breaching Rounds: 5 years e. Fiscal Impact Estimated annual maintenance cost is $50. For 2025, that cost was approximately $100. f. Training All officers who use explosive breaching tools shall attend at least 40 hours of explosive breaching instruction and must additionally receive quarterly training for explosive operations. Training costs for 2025 were approximately $3,000. g. J,.egal and Procedural Rules The Department shall only utilize explosive breaching for official law enforcement purposes, pursuant to State and Federal law. 13. PEPPERBALL LAUNCHER: A less-lethal device that discharges irritant projectiles. a. _Description, Quantity, Capabilities and Purchase Cost i. PepperBall FTC, #720-01-0002 -Cost: $589; quantity 31. The Full Tactical Carbine System (FTC) is a compressed air-powered launcher designed to fire non-lethal PepperBall projectiles. The PepperBall FTC is a gravity feed system with a hopper containing up to 180 .68 caliber projectiles at one time, which is designed for use with high-pressure air. ii. PepperBall INERT Powder Projectiles -Cost: $1 per projectile; quantity: 4,500 projectiles. Inert projectiles used for training purposes. iii. PepperBall LIVE-X PAVA (OC) -Cost: $3 per projectile; quantity: 7,600 projectiles. LIVE-X contains a concentrated amount of PAVA pepper powder. One round of LIVE-X'" contains the equivalent to 10 LIVE 353 PepperBall rounds. This projectile is best for direct impact or area saturation. Discharged from a PepperBall Launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 150 feet and an area of saturation of 390+ feet. b. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but are not limited to: i. Self-destructive, dangerous and/or combative individuals ii. Riot/crowd control and civil unrest incidents iii. Circumstances where a tactical advantage can be obtained iv. Potentially vicious animals v. Training exercises or approved demonstrations vi. Tactical situations involving the deployment of the Department's SWAT Team. c. Authorized Use Only those officers who have been trained in the use of PepperBall launchers are authorized to use the PepperBall launchers. d. Lifespan PepperBall Launchers have a 20-year lifespan. PepperBall projectiles have a 3-year lifespan. e. Fiscal Impact Estimated annual maintenance cost is $50 for each launcher. For 2025, that cost was approximately $3,000. f. Training Sworn members utilizing PepperBall launchers and projectiles are trained in their use by POST-certified less lethal and chemical agent instructors. Training costs for 2025 were approximately $5,000. g. Legal and Procedural .. Rules The Department shall only utilize PepperBall launchers for official law enforcement purposes, pursuant to State and Federal law. Assembly Bill 481 – Military Equipment Funding, acquisition, and use. July 21, 2026 354 'JON tfll'_, ._____~ •7< <~ ---... ~~ ~ : <' a POLICE Assembly Bill 481 (Exhibit 1) •Requires Law Enforcement Agency to: •Obtain approval of City Council for •Funding, acquisition, and use of specified military equipment •Adoption of a military equipment use policy (Ordinance #4255 – Exhibit 3) •Create a policy for use (Lexipol – Exhibit 2) •Requires City Council to: •Annually: •Review the Ordinance •Review military equipment use report completed by Law Enforcement Agency •Approve continued use 355 ncy Assembly Bill 481 •No 1033 Equipment •Necessary to be properly prepared to respond to emergent situations •Consistent with that possessed by similar sized agencies •Used for official purposes and in a manner that is consistent with State and Federal law •Complaint procedures – PSU contact info on PD website / WC •Per AB481 - Report addresses (Exhibit 4): 1. Description 2. Purpose 3. Fiscal Impact / Associated Costs 4. Training 356 Notable Information: •During calendar year 2025, force was used seventy-two (72) times, while handling approx. 78,000 calls (less than once per thousand calls handled) •Military equipment in the form of projectiles were only deployed during two (2) of those incidents (Approx. once every 39,000 calls handled) •UAS (Drone) deployments continue to support our law enforcement efforts with 77 uses in 2025. •The Department’s Drone as First Responder (DFR) program logged 1,274 flights with over 206 hours of flight time during the 4th quarter of the year. •This capability has provided us the ability to more expeditiously respond to emergency calls for service, even arriving prior to patrol officers. 357 Questions? 358 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-571 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Chau Vu, Director of Public Works PREPARED BY:Chris Davis, Senior Management Analyst Subject: Approve and Authorize the Execution of a Professional Services Contract with Partners In Control, Inc. DBA Enterprise Automation in the Amount of $2,500,000 for On-Call Engineering Services for the Public Works Utilities Division Supervisory Control and Data Acquisitions (SCADA) Systems for a Three-Year Term Statement of Issue: Submitted for City Council approval is a Professional Services contract with Enterprise Automation to provide on-call services for the Public Works Utilities Division SCADA systems, which monitor and control the City’s water, storm water and wastewater systems. Financial Impact: The City’s approved Fiscal Year (FY) 2026-2027 Budget includes adequate funds to cover the Enterprise Automation contract for FY2026-2027. Funding for FY 2026-2027 has been identified as follows: Fund Business Unit Amount 00,000 Additional funds will be used from specific projects included in the approved Capital Improvement Program (CIP) Budget, for Well 14, the On-site Chlorine Generation and the McFadden Sewer Lift Station projects. Funding for future years will be included in the respective business units as part of the City’s annual budget approval process. Recommended Action: Approve and authorize the Mayor and City Clerk to execute a $2,500,000 Professional Services City of Huntington Beach Printed on 7/15/2026Page 1 of 3 359 I I i ' ' l - I 1 J File #:26-571 MEETING DATE:7/21/2026 . Alternative Action(s): Do not approve the Professional Services Contract and direct staff accordingly. Analysis: The City’s Supervisory Control and Data Acquisition (SCADA) system is the operational backbone of the Utilities Division. It continuously monitors and controls the City’s drinking water, wastewater, and stormwater facilities, including wells, reservoirs, booster stations, sewer lift stations, and flood control facilities. The system enables operators to remotely monitor and control equipment, receive alarms, collect operational data, and respond quickly to system issues, improving reliability while reducing the need for manual field operations. Over the next three (3) years, the Utilities Division will continue implementing numerous Capital Improvement Program (CIP) projects that require integration into the City’s SCADA system, including water treatment improvements, well upgrades, sewer lift station improvements, and other infrastructure modernization projects. The projects require specialized SCADA programming, control system design, testing, commissioning, cybersecurity support, and ongoing maintenance. Because of the highly specialized nature of these systems, these services cannot be effectively performed using existing City staff alone. On March 26, 2026, the City’s Purchasing Division issued a Request for Proposals (RFP) for On-Call Engineering Services for Water and Wastewater SCADA Systems. Two (2) qualified firms submitted proposals, Enterprise Automation and ACET Solutions, LLC. An evaluation committee consisting of Utilities Division staff and representatives from the Information Services Department and Public Works Engineering independently reviewed each proposal using the evaluation criteria established in the RFP. Evaluation categories included: • Compliance with RFP requirements • Understanding of the project • Experience performing similar work for public agencies • Qualifications and experience of proposed staff • Cost • References • Local responsiveness Following the evaluation process, Enterprise Automation received the highest overall score and was determined to be the best overall value to the City of Huntington Beach. While both firms demonstrated technical qualifications and submitted responsive proposals, Enterprise Automation distinguished itself in several key areas that are critical to the City’s long-term operational success. Enterprise Automation demonstrated a comprehensive understanding of the City’s existing SCADA infrastructure and future operational needs. Their proposal specifically addressed Huntington Beach’s City of Huntington Beach Printed on 7/15/2026Page 2 of 3 360 File #:26-571 MEETING DATE:7/21/2026 Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. RCA Contract Agreement Summary 2. Professional Services Agreement 3. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 3 of 3 361 RCA Contract Agreement Summary CITY OF HUNTINGTON BEACH VENDOR NAME + TYPE OF SERVICE CONTRACT INFORMATION GENERAL INFORMATION TYPE OF AGREEMENT (Professional Services, Service Agreement) PROCUREMENT SCOPE OF WORK TOTAL COMPENSATION TERM OF CONTRACT/AGREEMENT OTHER: Bonds, Special Contract Terms, Emergency DATE PRESENTED REQUESTING DEPARTMENT STAFF CONTACT(S)INSURANCE STATUS July 21, 2026 Approved and attached Public Works Stewart Griffin 2,500,000 3 years Enterprise Automation - On Call SCADA Engineering Services for Water and Wastewater Professional Services Bid in accordance with HBMC Chapter 3.02 Provide on-call SCADA Engineering Services for the City's Water and Wastewater systems. 362 LO CITY OF rD HUNTINGTON BEACH 363 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND PARTNERS IN CONTROL, INC. DBA ENTERPRISE AUTOMATION FOR ON-CALL ENGINEERING SERVICES FOR WATER AND WASTEWATER SCADA SYSTEMS THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and PARTNERS IN CONTROL, INC., dba ENTERPRISE AUTOMATION, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to provide On-Call Engineering Services for Water and Wastewater Scada Systems; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULT ANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Marshall McElroy who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSUL TANT in the performance of this Agreement. 26-18235/417175 1 of 11 364 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSUL TANT are to commence on .JIJL>{ \~-f , 201.-h (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit t1At1 shall be completed no later than three (3) years from the Commencement Date. The time for performance of the tasks identified in Exhibit t1At1 are generally to be shown in Exhibit t1A.t1 This schedule may be amended to benefit the PROJECT ifml1tually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit t1B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000.00). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit t1At1 or changes in the scope of services described in Exhibit t1 A,t1 CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSUL TANT shall be paid pursuant to the terms of Exhibit t1B. t1 26-18235/417175 2 of 11 365 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULT ANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULT ANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS A. CONSUL TANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSUL TANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULT ANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSUL TANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULT ANT. B. To the extent that CONSULTANT performs "Design Professional Services" within the meaning of Civil Code Section 2782.8, then the following Hold Harmless provision applies in place of subsection A above: 26-l 8235/417175 3 of 11 366 "CONSULT ANT hereby agrees to protect, defend, indemnify and hold harmless CITY and its officers, elected or appointed officials, employees, agents and volunteers, from and against any and all claims, damages, losses, expenses, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) to the extent that the claims against CONSULT ANT arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT. In no event shall the cost to defend charged to CONSULTANT exceed CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more other defendants to the claims and/or litigation is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, CONSULTANT shall meet and confer with CITY and other defendants regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in California Civil Code Section 2782.8. C. Regardless of whether subparagraph A or B applies, CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULT ANT. 9. PROFESSIONAL LIABILITY INSURANCE CONSULT ANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSUL TANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not contain a self-insured retention without the express written consent of CITY; however an insurance 26-18235/417175 4 of 11 367 policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims-made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (inclnding subsequent policies purchased as renewals or replacements). B. CONSUL TANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSUL TANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSUL TANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. If CONSULT ANT fails or refoses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement. Such termination shall not effect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULT ANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance su~ject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: 26-18235/417175 A. B. provide the name and policy number of each carrier and policy; state that the policy is currently in force; and 5 of 11 368 C, shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten(] 0) days' prior written notice in the event of cancellation for nonpayment of premium. CONSUL TANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULT ANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULT ANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. INDEPENDENT CONTRACTOR CONSULT ANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULT ANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSUL TANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULT ANT as provided herein. In the 26-18235/417175 6 of 11 369 event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSUL TANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULT ANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: 26-18235/417175 7 of 11 370 TO CITY: City of Huntington Beach ATTN: Director of Public Works 2000 Main Street Huntington Beach, CA 92648 17. CONSENT TO CONSULTANT: Partners In Control, Inc., dba Enterprise Automation ATTN: Marshall McElroy 9050 Irvine Center Drive, Suite 200 Irvine, CA 92618 When CITY's consent/approval 1s required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive plu·ases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or 26-18235/417175 8 of 11 371 neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that purstiant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSUL TANT. 26, 18235/417175 9 of 11 372 24. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which arc not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this 26-18235/417175 10 of 11 373 Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, PARTNERS IN CONTROL, INC, dba ENTERPRISE AUTOMATION print nam-e ____ ITS: (circle one) Chairman Presidcn Vice President By(\~-•• ~\c\'1et(1 p,!;a:mmOYJ ITS: (circle one) ec1:ctari hief Financial Officer/ Asst. Secretary -Treasurer i(J.. if ,t';?!c,\e,x\+- CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk Director of Public Works REVIEWED AND APPROVED: City Manager APPROVED AS TO FORM: p _,,t., y? v·~ /'-City Attorney 26-18235/417175 11 of 11 374 A. B. C. D. EXHIBIT "A" STATEMENT OF WORK: (Narrative of work to be performed) SEE ATTACHED EXHIBIT A CONSULTANT'S DUTIES AND RESPONSIBILITIES: CITY'S DUTIES AND RESPONSIBILITIES: WORK PROGRAM/PROJECT SCHEDULE: EXHIBIT A 375 Prepared for: On: Prepared by: Marshall McElroy City of Huntington Beach April 27, 2026 Client Account Manager McKenna Anderson Automation Sales Associate VTScada ADVANCED CERTIFIED SOLUTION PROVIDER Aiiiance Master Endorsed Operate CSia CERTIFIED 376 City of Huntington Beach 19001 Huntington St. Huntington Beach, CA 92648 Attention: Stewart Griffin Utilities Technology Supervisor ENTERPRISE AUTOMATION A TETRA TECH COMPANY Subject: On-Call Engineering Services for Water and Wastewater SCADA Systems Thank you for this opportunity to present the following Proposal tor On-Call SCAD A Services for the City of Huntington Beach (the City). As we understand it, the City is seeking the services of a qualified control systems integrator to provide as-needed design, integration, and programming assistance with all aspects of their SCA DA system. Enterprise Automation (EA) is the City's current on-call SCADA Systems Integrator and has delivered exceptional value and state-of-the-art solutions to the City since 2012. Over the course of our relationship, we have acted as an extension of the City's staff to implement protocols, best practices, and standards that have reduce operating costs, eliminated SCADA system failures, increased cybersecurity, and significantly enhanced visibility and control over the City's water and wastewater assets. Our history with the City, and the fact that we surpass the City's desired qualifications and critical vendor certifications with AVEVA, VTScada, and Schneider Electric, makes us an ideal candidate to provide the City with on-call SCADA services. Additionally: Our understanding of the City's vision for their SCAD A assets will allow us to continue implementing projects that will strengthen system resiliency and emergency readiness (see B.2.3 for more details). We have consistently demonstrated an ability to complete projects on or under budget, only having exceeded project budgets 4 times (totaling $2,931) over the couse of 14 years and 109 projects. We enjoy working with the City, as your team's focus on uncompromising quality and progress makes the City of Huntington Beach a leader in water systems technology in Southern California and strongly aligns with our values as an integrator. We are excited to compete for your business once again and hope to continue providing best­ in-class service with a commitment to fiscal responsibility and efficiency. As Enterprise Automation's Client Account Manager, I hereby submit our proposal which includes this cover letter, our vendor application form, required proposal sections, and fee proposal. This proposal is valid tor a 180-day period from the date of submittal. ~~/-Gebo~~ Marshall McElroy Luke Stephenson, PE, PMP, MBA Client Account Manager President PROPOSAL CONTACT Marshall McElroy Client Account Manager (803) 640-3788 marshall.mcelroy@eaintegrator.com 377 Vendor Application Form TYPE OF APPLICANT: REQUEST FOR PROPOSAL VENDOR APPLICATION FOR~! □NEW ~ CURRENT VENDOR Legnl Contrn.cttml Name of C'o1poratio11; Partners in Control, Inc. Contact Per<;on for Agreement: _L_u_k_e_S_t_e_p_h_e_n_s_o_n ______________ _ C01pornk I\failing Address: 9050 Irvine Center Dr., Suite 200 City. State and Zip Code: Irvine, CA 92618 E :tvf .1 A:l l luke.stephenson@eaintegrator_com -at L c res-s.: __________ _ Phone: (949) 769-6000 Fax: (949) 769-6005 Contact Person for Proposals: Marsl1all Mc Elroy ---------------------- Title: Client Account Manager E-Mail Address: marsha!!.mce!roy@eaintegrator.com Business Telephone: (949) 769-6000 Business Fax: (949) 769-6005 Yeru· Business was Established: _19_9_8 ____ _ Is your business: (check one) 0 NON PROFIT CORPORATION ~ FOR PROFIT CORPORATION Is your business: (check one) ~ CORPORATION 0 INDIVIDUAL 0 PARTNERSHIP 0 LIMITED LIABILITY PARTNERSHIP 0 SOLE PROPRIETORSHIP 0 UNINCORPORATED ASSOCIATION 1 of2 378 Nmnes & Titles of Corporate Board Members (Alc,o list Names & Titles of persons ·with written authorizatioru'resolntion to sign contrricts) Names Title Phone Luke Stephenson President (949) 769-6000 X 118 Derrick Malcolm Finance Director (949) 769-6000 X 103 Federnl Tax Iclentificntion Number: 20-5546755 City of Huntington Beach Business Liceme Number: A286224 (If none, you must obtain n Huntington Beach Business Liceme upon nward of contract.) City of Huntington Bench Bminess License Expiration Date: 03/31/2027 2 of2 379 Table of Contents Vendor Application Form ............................. . Table of Contents ... B. Background and Project Summary..... .. .................................................................. .4 B.1 Tetra Tech.............................. .. .............. ..4 B.2 Project Summary.. .. ............. 5 B.3 Known Future Projects... .. ........ 6 C. Methodology... . ..................................................................... 7 C.1 Project Methodology............................. . ..................................................................... 7 C.2 Support Contract.................................... .. ................ 10 C.3 Digital Transformation........................... .. ........................................ 14 D. Staffing.. .. .. 15 D.1 Key Personnel...... .. ................................... 16 E. Qualifications .......................................................................................................................................... 17 E.1 Company Certifications ................................................................................................................ 18 E.2 Required Vendor Certifications.............................. .. ................ 19 Appendix A: Resumes....... .. ................ 1 Appendix B: Project Profiles....... .. ............ 2 Appendix C: Certifications ... .. ... 7 Appendix D: Draft FY26-27 Support Contract......... .. ............. 8 380 • ' Huntington Beach On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 ENTERPRISE AUTOMATION A TETM T<CH COKrAN'f B. Background and Project Summary Enterprise Automation (EA) is a full-service integration and automation consulting firm located in Irvine, California, less than 30 minutes from the City. Over the past 28 years, our staff has grown to 67 individuals, the majority of whom are full-time, degreed engineers. EA serves a variety of process-driven industries but specializes in systems that monitor and control the treatment, distribution, and storage of water and wastewater. EA focuses on providing relationship-based and client-centric integration and on call services, and our traditional systems integration services (including upgrading, maintaining, and replacing SCADA and PLC systems) are complemented by a suite of consulting services including but not limited to on call services, SCADA and OT network audits, master planning, cybersecurity, and budget management. Our experience, project management systems, and bandwidth to complete multiple projects or task orders in parallel on an as-needed, on-call basis. We also have a long history of providing reliable, timely services and designing and implementing SCADA platforms and PLC hardware that deliver lasting value, are easy to maintain, and experience minimal unexpected downtime. [.,l22-30 min 1:::.a+rnile;1 'Ne•Nport Beach '~ ''""'"' \ ~0} ~\ ENTERPRISE AUTOMATION A TETM T[Cll CCKrANV Our Irvine headquarters, the primary office location for EA's staff members, is approximately 19 miles from the City's facilities, allowing our engineers to respond to emergency support calls quickly. Additionally, this proximity allows EA and the City to have more frequent in-person meetings which, in our experience, significantly improves rapport and builds trust, two essential factors in maintaining a long-term and successful consultant-client partnership. 8.1 Tetra Tech ~ Tetra Tech is a global leading provider of water-focused consultant ~ TE_TR~ TECH and engineering services that has 60 years of experience in the Digital Sy 5 cems Group engineering industry. EA was acquired by Tetra Tech in 2021 and is a leader Tetra Tech's Digital Systems Group (DSX), an operating unit dedicated to providing integration and automation consulting services to clients with complex control systems across the nation. Tetra Tech strengthens our suite of services with their global presence and turnkey engineering services. Backed by Tetra Tech's 25,000 employees across 500 offices and 7 continents, we can provide our clients with unmatched expertise and have unprecedented access to specialists in cybersecurity, water and wastewater design, renewable energy, and hundreds of other disciplines. 9050 Irvine Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949-769 6000 Fax 949 769 6005 Section Background and ProJect Summary ~ Page Number 4 of 19 381 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 ENTERPRISE AUTOMATION A TETRA HCH CO>\PIIHY We leverage the combined strength of the DSX group to deliver high quality projects in any industry and in any location. Within Tetra Tech and DSX, EA still operates as our own brand with independent management, and we maintain our focus on personal relationships that create long term value for our clients. B.2 Project Summary The City of Huntington Beach is a core city in Orange County and has an renowned stretch of beach. Home to over 200,000 Americans (including some of our engineers), the City has an enormous responsibility to effectively operate the water utility, flood control, and wastewater collection system serving its citizens, Understanding the importance of the City's responsibilities, EA has provided on-call services that have allowed the City serve their citizens to the fullest capacity, and we have reliably done so for 14 years. EA will support the City and their wells, reservoirs, booster stations, feeder facilities, flood control facilitiies, and lift stations by continuing to provide the following services: 1. As-needed SCADA integration and general ongoing, and 24x7 emergency support through a support contract a. To ensure the City has access to 24/7 emergency support, we developed a virtualized test platform for the City and host it at our office (see Section C.1.5 for more information). Though the City is only 20-30 minutes from our headquarters in Irvine, we understand immediate response is crucial to maintain system operations and leverage the test platform to provide that support. 2. Collection, planning, and execution of non-urgent change requests (CRs) a. We developed the City's change request process. We want to make sure the City is well equipped to make requests, receive support and maintain their SCADA system. 3. SCADA platform maintenance and upgrades a, We created the City's controls system standards and have regularly maintained them during project work and routine maintenance. We have proceduralized the routine maintenance we conduct for the City to ensure their systems remain reliable and optimized (see Section C.2.5 for more information). 4. Design, implementation, and commissioning for C_IP projects for new Sewer Lift Stations & Flood Station upgrades a. EA is aware of the City's ongoing and planned projects, which are described in B,3, EA staff have spent 24,000+ hours becoming experts with the City's SCADA •, System 9050 Irvine Center Drive, lrvme, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949-769-6005 Section Background and ProJect Summary ~ Page Number 5 of 19 382 On·Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 8.3 Known Future Projects ENTERPRISE AUTOMATION J>, TSTM T£CH C<>MPAH'f Because the RFP does not detail specific tasks or projects, this proposal does not contain a defined "project schedule" or "description of specific tasks [EA] will require from City staff" as requested in section 4.C of the RFP. Instead, we will review the some of City's upcoming projects to demonstrate our understanding of the City's needs and goals. Through our most recent master planning conversations with City staff and several ongoing upgrades, EA anticiaptes the City will pursue the following projects (and more) over the course of this upcoming on call engineering professional services agreement B.3.1 Critical Site Upgrades and PLC Standardizations The City has sites with aging PLC infrastructure that have continued to pose reliability issues. To proactively avoid full controller failure and to standardize the PLC programs and technologies across their sites, the City will continue implementing new PLCs and programs at each of their sites, including lift stations, flood stations, and turnout sites. The City will additinally upgrade their reservoir booster station sites in the same way. EA has successfully completed the legacy Murphy controller replacements with Mod icon M340s at many of the City's sites. Through the lift station, turnout, and flood station upgrade projects, we have a streamlined an efficient approach to the design and implementation of new PLCs at each of the City's sites, This approach has proven a reduction in risk through rigorous hardware and software testing and standardized deployment procedures. B.3.2 Well 07/13/04 On-Site Chlorine Generation Construction The City has moved forward with the design and implementation of on-site chlorine generation (OSG) at various water wells and booster pump stations. The City is actively implementing OSG as Wells 7, 13, and 4, which are the first sites to host this system. EA is playing a critical role in this implementation, as we are designing and integrating the OSG systems into the City's SCADA system to provide them with monitoring and control abilities. The City will need an integrator who can cost effectively implement OSG across their sites, as they are going to coninue adding OSGs. EA is an advantageous partner because we can use our specific experience with the City's system as well as our template designs and programs to minimize the effort needed to complete this process for future sites, thus reducing costs and enabling the City to utilize budget for other projects. B.3.3 Well 03A PFAS Design and Implementation The City is hiring an engineering design consultant to design a PFAS treatment system at Well 03A and will need an integrator with proven experience integrating PFAS controls into SCADA. EA has integrated PFAS treatment for several other municipalities, including neighboring Santa Ana, and we will leverage our experiences from those projects to work more efficiently for the City. EA will be involved throughout the project, including designing how the PFAS treatment system will operate from a controls standpoint, developing program updates based on the new signals coming from the PFAS system, and aiding contractors during commissioning to ensure the site's control system is operating as intended. 9050 Irvine Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949 769-6000 Fax 949 769 6005 Section Background and ProJect Summary ~ Page Number 6 of 19 383 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 C. Methodology C.1 Project Methodology ENTERPRISE AUTOMATION EA will leverage the project methodology that we have successfully used with the City for over a decade. This methodology, established and honed since 1998, has consistently led to successful projects that meet or improve our clients' budgets, schedules, and satisfaction. C.1.1 Project Proposal The project proposal is a cornerstone of the project that sets expectations for both EA engineers and the City through a detailed description of deliverables and the proposed path to accomplish those deliverables, This document also includes initial design requirements, project assumptions, and risks. It is critically reviewed to ensure the highest probability of project success and customer satisfaction. C.1.2 Project Management Enterprise Automation assigns a dedicated project manager (PM) for each client, enhacing continuity for our cients and visibilty over all ongoing projects. For every project, the project manager develops a detailed schedule based on the tasks identified in the project proposal and then assigns tasks to engineers on the project team. The PM will also coordinate a project kickoff meeting for the internal team that will execute the project and a subsequent kickoff with the City, During the kickoffs, EA and the City will establish project expectations and coordinate the execution plan for the project (e.g. assumptions, responsibilities, risks, key team members, etc.) Kickoff meetings are key factors in establishing and maintaining trust as well as ensuring open communications between all team members (City and EA). Throughout the project, the PM routinely tracks progress against the project schedule and prepares project status reports. The project manager also ensures that all hardware, software, and other services, as may be required for the project, are procured to meet project scheduling deadlines, The PM will contact the City's main point of contact a minimum of once every two weeks for project status updates. C.1,3 Comprehensive Design For each project, Enterprise Automation typically conducts an analysis of clients systems and conducts workshops with them to ensure we have a thorough understanding of their needs before we start designing their controls system, EA then develops the designs and proposed solutions, which may be in the form of functional specifications, network design documents, panel designs, flowcharts, standards, and sample screens and object templates as needed. 9050 lrvIne Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949 769 6005 Section Methodology ~ Page Number 7 of 19 384 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 C.1.4 Workshops ENTERPRISE AUTOMATION A THM T<Cll COMrAN'f As necessary, and often on a weekly or bi-weekly basis, EA facilitates workshops with the City to review and discuss open deliverables and project progress. These workshops ensure the final deliverables are approved by the City and meet their unique needs, The general goals of the workshops are to: • Transfer knowledge between EA and the City • Demonstrate product feature sets to the City • Present designs to the City and solicit feedback • Review and document significant decisions • Collaborate on the design of system elements where both Enterprise Automation and City expertise is required • Plan project testing or deployments C.1.5 Test platform Enterprise Automation currently hosts a City of Huntington Beach test platform our their office in Irvine, which we developed in 2014 and have upgraded and maintained since. It consists of a City owned server and miscellaneous PLC hardware along with all software required to replicate the City's on-site configured SCADA system. The test platform is a vital tool that we use to mitigate risk and support the City. The test platform enables us to provide faster and more effective remote support when the City requires it, and the primary advantage is that with a replica of the City's on-site SCAD A platform, we can implement changes in a controlled environment where issues cannot affect safety or production. 9050 lrvme Center Dnve, lrvme, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949 769 6005 Section Methodology ~ Page Number 8 of 19 385 q On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 C.1.6 In-house Testing and Factory Acceptance Testing (FAT) ENTERPRISE AUTOMATION A TETAA TECH CQl-lrAn\" While most integrators just provide clients with an FAT, we conduct internal testing first. Where immediate FA Ts result in numerous errors and waste client time, we conduct internal testing to catch over 90% of errors beforehand. That way, clients can focus on the look and feel of the system during FAT rather than be constantly interrupted by errors. Internal testing ensures that the programs, configurations, and panel designs are thoroughly validated prior to deployment. We take testing seruiosly, as experience has taught us that the success or failure of an industrial automation project directly correlates with the amount and quality of testing performed during that project. Before we conduct internal testing, we develop a detailed set of ITCs (Inspection Test Checklist) that we send to the clients for approval. Once approved, two engineers conducting testing to ensure accountability and thoroughness. Any non-conformances are documented, corrected, and then re-tested. The testing engineers, Lead Engineer, and Project Manager assigned to that project must sign off on internal testing before deployment can begin. All test results are available to the City on a per-request basis. As required, Enterprise Automation will also host a Factory Acceptance Test (FAT) with the clients at our office, which the City has attended many times. The FAT is designed to provide our clients the opportunity to review EA's testing process and get valuable hands-on experience with the final product prior to deployment. Once the FAT is complete, our clients must sign off on the FAT before deployment can begin. C.1.7 Commissioning and Site Acceptance Testing After testing is complete, EA will schedule the deployment, Site Acceptance Testing (SAT), and final commissioning with the City. As with testing, the team will develop a highly detailed set of procedures and checklists to guide the deployment process. We are meticulous with deployment planning, as years of experience have proven that change orders, deployment delays, and commissioning mistakes are guaranteed to happen when planning is not emphasized. When necessary, EA will develop work orders so that City employees or subcontracted parties can execute work according to our and the City's stanards. C.1.8 Training As necessary, Enterprise Automation will conduct operator training. This will include preparing training laptops, presentations, and training manuals as needed to provide the training, either in-house or on-site as may be required. EA can accommodate a variety of shift schedules and personnel experience to provide highly customized courses. C.1.9 Final closeout During this phase, Enterprise Automation will compile all relevant documentation and present it to the City. Enterprise Automation will hold a project closeout meeting with the customer to review the deliverables, discuss the final project, and ensure the City's satisfaction. 386 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 C.2 Support Contract ENTERPRISE AUTOMATION A TETRA HCH COH>AtiY The City's SCADA system occasionally presents alerts, notifications, and bugs that require troubleshooting, The City currently averages about one call per month for mostly minor issues. The quantity of support calls has greatly reduced over the course of our relationship with the City, The following deliverables and services will be provided under an annual maintenance and support contract. We've included a detailed draft version of the FY26-27 support contract in Appendix 0. C.2.1 Server software updates and audits EA established a Windows Server Update Services (WSUS) server during the virtualization project we completed for the City in 2013. WSUS enables a more efficient management of the distribution of updates and hotfixes released by Microsoft for their operating systems. Since implemetnting WSUS, EA has executed updates for it no less than twice a year, C.2,2 SCADA software upgrades EA routinely monitors the City's SCADA software vendors for new version releases, patches, and service packs. EA will conduct an evaluation of these updates on EA's test platform before they are deployed to the City's live system. The upgrade procedure EA developed for the City also requires EA to develop a fallback plan for the system during upgrades. This way, the system can be recovered to a stable condition if an update has unexpected effects on the system. C.2,3 Manufacturer support renewal The City's SCADA platform consists of a wide variety of hardware and software components that should be tracked, maintained, and supported by the manufacturers due to the mission critical nature of the City's system. If selected, EA will continue to maintain and update the electronic 'Mantis' tracking system EA implemented to automatically track the City's software and hardware support renewals. The City maintains support contracts for the following software. Green checks indicate that EA manages the support contracts for the City. • Dell server next day business support • Schneider Electric EcoStruxure Control Expert support • VMware vCenter Server technical support ✓ VTScada technical support • Veeam technical support ✓ AVEVA Reports technical support This wide variety of components and manufacturers results in a complex annual renewal schedule, which requires a systematic schedule and reminder system to manage successfully, The City should ensure the selected SCADA consultant is willing and able to track their software and support contracts. 9050 Irvine Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949-769-6000 Fax 949 769 6005 Section Methodology ~ Page Number 1Oof19 387 ill On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 C.2.4 Change Requests (CRs) ENTERPRISE AUTOMATION I< nm,A T<CH COMPAl<Y A critical component of the City's support system is their formal change control system that EA implemented. This system tracks change requests and work orders, which are typically non-urgent and smaller projects that do not require significant coordination or budgets. EA established the documented change control system for the City in 2014 and has since logged and addressed almost 300 total CRs. CRs are assessed with City staff on a regular basis and prioritized to ensure City budget is used in a responsible manner. Less critical CRs or nice-to-have features may be logged simply as conceptual ideas or get rolled into future projects when little or no additional budget is required to address them. When implemented correctly, as EA and the City have done, change control allows engineers to log requests, develop a proposed solution, obtain authorization to implement the change, and log notes, all within a single interface. The database also includes features to assign tasks, log notes, and send automated notifications, making it extremely valuable for tracking and organizing complex work order backlogs. Without a trusted change control management system, it is difficult to prevent ad-hoc SCADA modifications, which typicall are made without documenting the nature of the changes, the reason for the change, or who authorized the changes. This vital tool has been used to address a wide range of issues from computer memory usage and performance degradation to wastewater cellular communication failures. EA will continue to maintain the City's Mantis BT based Source Control database and address CRs through ongoing collection, routine check-ins, and annual planning meetings. o.ite ',\ !' 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Slit, I"" <an idrnt,ly 1h~ hlsto,y Olccl 111'1 Is <<'<H,pled n,,sCR is l~<o"t~,! l'/,,niJ,,,w,re,upport and,.,., II tho daca t,:,x;, ,.,,, U rn .. euetl, >I re,, n ',hmilo be,klc\~,r 9050 Irvine Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949 769 6005 Section Methodology ~ Page Number 11 of 19 388 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 C.2.5 Scheduled maintenance ENTERPRISE AUTOMATION A THRA ncH COHPAHY EA will continue providing routine scheduled maintenance for the City's SCADA system to ensure its components-PLCs, OITs, servers, virtualization software, networking devices, etc.-are properly maintained. This includes inspecting alarm and event logs, confirming correct component operation, installing firmware updates, and updating system documentation as required, EA developed and leverages five maintenance procedures, customized for the City's Assets: 1. "CHB Master Maintenance Procedure" 2. "CHB Computer Maintenance Procedure" 3. "CHB PLC Maintenance Procedure" 4, "CHB Server Maintenance Procedure" 5. "CHB Test Platform WSUS Procedure" Over the past six years, EA has performed these seNices at least twice a year. CHS Master Maintenance Procedure Project No.: Engineers: Comp!ellon O~lo: " CHECK LIST· (T!ia Er,g'n~r /Mia/,; tile approplial~ box a/fer /he~""' has been correcl/y compleled/ Item I CHB Server Malnte.nance Procodure -::;- 11 ~!:•:~1::,e:Jif.s responsible tor lnll!illlng and 1 Server:jCHBESX,01 I i:iate:I I 1 In Office Prep.1r<1tlon I hclllty:IUtilrfy Yard I llupe~ted By;I I 11 ltil~ malnlaMnce vis~ will be uJ')d the test pl.l!forni \Wondeiware aoo Inspection Notes I procedure: ,. OOW!Jl()ad lhe lalest oen □ CPU /oole foln/ and used in \'Center Swe1) CHB PLC Maintenance Procedure u a -needed '· lnsl..il firmware on !h& t~ __[]_ Memoiy (note Iola/ and u~ed in vcenter Server/ ' lJs~ Upda1e Manager In Olsk PLC: MJstcrPLC(M&l0) I Oo!e:I ,. 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Passwo!ds (no/a el>llorma!itiesJ /~n UXaJJBOJR/0 l>!i, aillf'r;]llmtlon, noo, ,.. ,. Conlrolled PLC p19llf,1111 □ □ lw&knmmunicat:fflmOd,i/9 emirs) ,. USll table tor PLC coon ' Un~y-,. Dell ~eNer firmware ('1 ~ NOEINOC Mo1M~ SIMIISll.oo Ma!nten~nee (open NOE In l>!r.l mn"t,urnli<m, {JO lo ,lehl,~ lab, .. Toos D oote almcm,~bes) ,. Sactric dusblr llnd dear !nslaH Firmwarn Update• (ainrnict to NOC In DTM Browsw, ngbt <;lkk and ga "· Caml!fil □ (If applfa,/J/e for /his main/Mance vi•it) Jo o,w/ce Me1111"' D/agll!Mia, noledinwmat11it,a/ ~ SCADA Alarm log Install ES)(l Upda1es //i4e, N~INI' l'r!l PLC, nole ebf/0/'™'1/iell) D (if applicable for this maintenance Vitti/ □ Ha,dw~re Checkout D (e)(le(lor and i/llelior, btow oot d~al) D Hot Sl.mdby il.3lUs (rt app/a;ab.'e, 00~ clJn/m/lern wnnir,(J am1eq1"'1) Other Notes Mi!.lntenanee N<1tes Proo,om Match □ ,,"'1lmlledVffS/OI! maJdi//!/ 00/Jlla \le"'""", 'JIW•d program 11mk;-m~tch fl1f" /NJd;Up) Memory llldllp □ //J{JIQ/1/J WJta to me rone/poinl backup) Other Notes 9050 Irvine Center Dnve, Irvine, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949 769 6005 Section. Methodology ~ Page Number 12 of 19 I I 389 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 ,0.0 C.2.6 Urgent Support 24x7 urgent support has, and will continue to be provided as follows: Phone Support C.2.7 long term planning c;J --Remote Support ENTERPRISE AUTOMATION IITETMTlCl-lCOM>AN'I" Onsite Support Enterprise Automation believes that the best approach to ensure our clients' needs are met is to establish a multi-year master plan that provides a clear, actionable roadmap to achieving their desired results. This master plan also sets long term financial expectations and ensures that each project undertaken is consistent with the overall goals. Annually, EA has conducted one or more planning meetings with the City to review scheduled and suggested projects on a five-year timeline. This procmis has IJr,mn a critical co111pone11t ol' Hie City'" grnclual. progrmmion towards a sl:andardiz,,d mid rnliatit,:: ,,G/\DA pl.alJorrn withotii: lH.Klgel: or scl1cKlule ovnr nms. 390 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 ENTERPRISE AUTOMATION A THRA ncH COMPAtiY C.3 Digital Transformation Over the past decade, the City has continually moved towards stability, security, and standardization with its SCADA assets, Because of this long-term commitment, the City is in ideally positioned to advance to the next level of their Industrial Automation Digital Transformation. Digital Priority Pyramid Advanced toolsets Smart asset management, advanced diagnostics, digital twins, Instantaneous data Insights Data & Reporting Access!ble, hol!stlc datasets securely connected to Intuitive visuals in automated reports SCADA "--, _, High performance HMI, r!J scalable, accurate, user-friendly _ PLC Documented, high functioning, and under manufacturer support Networking Secure, managed, and high-performance throughput Based on our knowledge of and experience with the City's system, the City is well suited for tiers 4 and 5. The City's progression to universal standardization through efficient and paced investments has given the City an opportunity to expand their capabilities, as Al can be used more effectively now than ever before. There are many new tools that can bring immense value with minimal effort. For example, • New artificial intelligence (Al) systems can be used to analyze the historical data being collected to predict future issues before they happen • Paperless rounds systems can allow operators to perform maintenance rounds, transmit the data automatically to the SCADA historian, and be presented with SOPs and drawings in case they find an issue, all from a mobile device in the field • Machine learning engines can analyze equipment operational data (e.g. pump runtimes, pump start stops, power usage, flow, pressure) to better predict maintenance intervals and prevent equipment failures The tools described above, and many more, are meant to show a direct return on investment. They should give City staff better information to make smarter operation decisions. Staff should get time back which can be used to complete other projects the City needs to accomplish. 9050 Irvine Center Drive, Irvine, CA 92618 USA Tel 949-769-6000 Fax 949-769-6005 www.eainte rator.com RFQ Response Section: Methodology Page Number: 14 of 19 391 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 ,,. , .. ,,10 ENTERPRISE AUTOMATION D. Staffing Enterprise Automation has experienced, highly motivated staff available to ensure project tasks are executed consistently and meet our quality standards. The following personnel will be assigned to the City's projects as required. Additional staff are available and can be allocated if needed. EA will contact the City for approval of any staff augmentations. Detailed resumes are provided in Appendix A Resumes. II THM f[CH COH>ANY 9050 Irvine Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949 769 6005 Section Staffing ~ Page Number 15 of 19 392 II On~Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, v1 .0.0 D.1 Key Personnel The key personnel assigned to Huntington Beach have all completed numerous projects for the City. Below is a snapshot into their qualifications and experience. Clarence Go, PMP Alex Coker, PE, GICSP Steven Drooz, PE Eric Krueger Senior Project Manager Automation Architect Proj. Technical Lead Project Engineer Qualifications 9 years of 12 years of 5 years of 3 years of experience experience experience experience • PM P certified Professional Eng. 1· Professional Eng. BS, Mechanical BS, Chemical Eng. BS, Chemical Eng. BS, Chemical Eng. Eng, UC San Diego Cal Poly Pomona UCLA UC Irvine GICSP certified i> EcoStruxure ;' EcoStruxure DHS ICS Control Expert Control Expert Cybersecurity c VTScada trained certified Experience with the City of Huntington Beach 4 years with the City 12 years with the 5 years with the City 3 years with the City 38 projects City PTL for 32 of the I PTL for 2 recent City ' managed for the PTL for 12 City City's projects projects City, all on or under projects and the 3,348 hours on City Project engineer for budget architect for many projects 7 other City projects Clarence has been more Murphy controller J-, 1,247 hours on City the City of i'• 2,060 hours on City replacements with projects. Huntington Beach projects M340s Slater M340 project manager for h Platform Platform upgrade upgrade everyone on the vi rtua lization Reporting I• DKOC35 M340 team Tech. selection & enhancements upgrade VTScada upgrade Cybersecurity enhancements 9050 lrvme Center Dnve, Irvine, CA 92618 USA RFQ Response Tel 949-769·6000 Fax 949 769 6005 Section Staffing ~ Page Number 16of 19 393 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 E. Qualifications ENTERPRISE AUTOMATION A 1"TM TECH (OHM.HY Enterprise Automation currently provides services similar to that described in the City's RFP to the following clients. Please see Appendix B for a set of detailed project profiles. SCADA Professional Services Agreement Sweetwater Authority Term: 2005 -2026: 4x 5-year contracts & 1-year extension EA provides 24x7 on-call support, bi-annual maintenance, software support renewals, as-needed integration services (SCADA + PLC), SCADA consultant, SCADA master planning, test platform management, extension of staff, emergency support, and annual budgeting and planning. SCADA Master Services Agreement Encina Wastewater Authority Term: 2017 -2030: 5-year contract+ 2-year extension, just re-awarded another 5 year contract EA provides 24x7 on-call support, bi-annual maintenance, software support renewals, as needed integration services (SCADA + PLC), SCADA consultant, SCADA master planning, test platform management, extension of staff, emergency support, and annual budgeting and planning. SCADA Professional Services Agreement City of Newport Beach Term: 2019 -2029: 2x 5-year contract EA provides bi-annual maintenance, software support renewals, as­ needed integration services, test platform management, extension of staff, emergency support, and annual budgeting and planning. SCADA Professional Services Agreement City of Fresno Term: 2010 -2026: 4x 5-year contracts & 1-year extension EA provides annual as needed support, CIP design and integration projects, three facility SCADA overhauls, test platform management, and hardware and software evaluations. Client Canta.ct. Justin Brazil (619) 409-6802 jbrazil@sweetwater.org EA Personne.l • Alex Coker, PE, GICSP Steven Drooz, PE l(evin Kasner, PE, CISSP Brandon Blischak Client Cont.let: Scott McClelland (619) 929-9977 smcclelland@encinajpa.com EA PeJ','LOll□fll Alex Coker, PE, GICSP Steven Drooz, PE Kevin l(asner, PE, CISSP Brandon Blischak Atticus Binder Clie.nl.CJl.Dtam: Brent Millard (949) 714-3414 bmillard@newportbeachca.gov EA Personnel Alex Coker, PE, GICSP , Steven Drooz, PE GliBJlte_onJ:act Michael Treas (559) 621-5342 michael.treas@fresno.gov EA PernQJ1lli;)j Alex Coker, PE, GICSP Kevin Kasner, PE, CISSP Clarence Go, PMP ·, Atticus Binder ,, Kaylee Halliday 9050 Irvine Center Dnve, Irvine, CA 92618 USA RFQ Response Tel 949 769 6000 Fax 949 769 6005 Section Qualif!cat1ons ~ Page Number 17 of 19 394 1111 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 ENTERPRISE AUTOMATION SCADA Professional Services Agreement City of Compton Client Contact: Christian Fuentes (424) 486-2783 cfuentes@comptoncity.org Term: 2010 -2026: 4x 5-year contracts & 1-year extension EA provides 1 0x5 emergency on-call support, annual as needed support, SCADA Master Plan project implementation, CIP design and integration projects, test platform management, and hardware and software evaluations. SCADA Master Services Agreement Sentinel Peak Resources Term: 2019 -2026: 7x 1-year contract EA has provided SCADA audit and master planning, SCADA platform design and implementation, well site controls upgrades, standards development, change requests, and as needed support. E.1 Company Certifications E.1.1 VTScada Advanced Certified Solution Provider EA was the first integrator in California to receive the VTScada Advanced Certified Solution Provider title and is the only Southern California integrator with this certification, which is the highest certification EA_Personnel Alex Coker, PE, GICSP Kevin l(asner, PE, CISSP Steven Drooz, PE Clarence Go, PMP Client Contact· Sean Sullivan (661) 395-5489 ssullivan@sentinelpeakreso urces.com EA Persr.l!JRm Alex Coker, PE, GICSP • Steven Drooz, PE VTScada ADVANCED CERTIFIED SOLUTION PROVIDER available. EA designed and implemented the City's VTScada system and can offer the highest tiers of technical support due to our close relationship with Trihedral. E.1.2 Schneider Electric Alliance Master Partner Enterprise Automation is proud to be the first and one of only two Schneider Electric Master Alliance Integration Partner in the USA and one of only 14 in the world. The Master Alliance Partner status is the highest Schneider Electric offers and validates our significant experience with Mod icon M340 and M580 PLCs. E.1.3 AVEVA Reports EA has worked with a wide range of AVEVA/Wonderware products for over 25 years. In 2020, AVEVA awarded EA the exclusive Endorsed System Integrator title, placing us in the top 1 % of AVEVA systems integrators in the world. In 2021, Partner Ecosystem Alliance Maste1- System Integrator EA completed a project to implementAVEVA Reports to replace the City's legacy and largely manual Excel-based tool. The new system allows staff to produce 13 fully automated reports with key metrics for the water and wastewater systems. 9050 lrvme Center Dnve, Irvine, CA 92618 USA RFQ Response Tel 949-769 6000 Fax 949 769 6005 Section Quahf1cat1ons ~ Page Number 18of19 395 On-Call Engineering Services for Water and Wastewater SCADA Systems RFQ Response, vl .0.0 E.2 Required Vendor Certifications ENTERPRISE AUTOMATION fl TETltl\ HCH COH!'AN'f Enterprise Automation currently meetsorexceedsall the City's required vendor credentials: Description City EA Requirement Certifications VTScada -Advanced Configuration Certified 1 6 Schneider Networking Certified Professionals 1 6 Palo Alto Accredited Configuration Engineer (ACE) 1 1 VMware Certified Professional 5 -Data Center 1 1 Virtualization EcoStruxure Control Expert Certified Professionals 4 11 Control System Engineer PE in the State of 1 11 California Electrical Engineer PE in the State of California 0 1 Global Industrial Cybersecurity Professional 1 1 (GICSP) certification Certified Information Systems Security Professional 0 1 (CISSP) AVEVA Reports 0 4 Copies of every certification listed above are available in Appendix D Certifications. VTScada ':iu(l\'/dllc' lu!' MUIHIUl'lll~j 6 LP!I\IU) ADVANCED CERTIFIED SOLUTION PROVIDER Boarci for Professlonal Engineers, Land Survevors, & Geoloqlsts Alliance Master· • CISSP. i:, J Partner Ecosystem System Integrator 9050 Irvine Center Drive, Irvine, CA 92618 USA RFQ Response Tel 949-769 6000 Fax 949 769 6005 Section Qualif1cat1ons ~ Page Number 19 of 19 396 EXHIBIT "B" Payment Schedule (Hourly Payment) A. Hourly Rate CONSULT ANT'S fees for such services shall be based upon the following hourly rate and cost schedule: B. Travel. Charges for time during travel are not reimbursable C. Billing I. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month's bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A copy of memoranda, letters, reports, calculations and other documentation prepared by CONSULTANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfacto1y completion. 4. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's film that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULT ANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULT ANT in writing of the reasons for non-approval and the schedule of performance set fmih in Exhibit II A II may at the option of CITY be suspended until the parties agree that past perfo1mance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. Surfnet Exhibit B hourly 1 397 5. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be umeasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. Surfnet Exhibit B hourly 2 398 Prepared for: On: City of Huntington Beach April 27, 2026 Prepared by: Marshall McElroy Client Account Manager McKenna Anderson Automation Sales Associate VTScada ADVANCED CERTIFIED SOLUTION PROVIDER FEE PROPOSAL Endorsed Operate CSiarj/ CERTIFIED 399 FV26 CHB Engineering Rates Engineering Rates Rate Classification 1 Admin Engineering Intern l&C Technician 1 * l&C Technician 2* Electrical Engineer 2* Electrical Engineer 3* Drafting Automalion Specialist 1 Automation Specialist 2 Automalion Specialist 3 Project Technical Lead Project Manager 1 Project Manager 2 Automation Architect Principal Standard Rate $105.00 / hr. $105.00 / hr. $150.00 / hr. $190.00 / hr. $190.00 I hr. $225.00 I hr. $161.00 / hr. $206.00 I hr. $232.00 I hr. $266.00 I hr. $281.00 I hr. $231.00 I hr. $281.00 I hr. $288.00 / hr. $345. 00 I hr. ENTERPRISE AUTOMATION A TETRA TECH COMPANY *Through Tetra Tech 1 Rate classifications charged are based on a project role/responsibility basis, not title, and could be adjusted during a project's duration if meaningful staff changes occur with prior notification. Service Calls Service calls covered by an Enterprise Automation service contract are prioritized while all other service requests are dependent on existing schedules and the availability of engineering staff. Overtime Item Description Time and a half Double lime Outside of normal business hours (8am-5pm) or time in excess of 10 hours per day (unless otherwise arranged) Saturday, Sunday, and holidays (unless otherwise arranged) General Item Description Travel time Charged at engineering rates Vehicle mileage As per the published IRS mileage rate (if applicable) Travel expenses At cost (if applicable) Meals and incidentals GSA established per diem rate (if applicable) Payment terms Net 30 days Materials, Subcontractors, Etc. 20% markup (if applicable, unless otherwise arranged) Note-All jobs will be billed at EA's standard municipal rates for a given year. Note that rates are subject to standard yearly escalations, which go into effect on January 1st of each year. Rate escalations are projected to be between 3-5% yearly. Rates effective 1/1/2026 through 12/31/2026 9050 Irvine Center Dr, Irvine CA 92618 USA Tel 949-769-6000 Fax 949-769-6005 www.eainte rator.com V 1.0.0 CA Professional Services Agreement with Enterprise Automation City Council July 21, 2026 400 Enterprise Automation • Supervisory Control and Data Acquisitions (SCADA) Engineering • Three Year Agreement for $2,500,000 • SCADA monitors and controls City’s water and wastewater infrastructure • Bid in accordance with HBMC Chapter 3.02 • If not approved, new RFP will be needed. 401 Questions? 402 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-585 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Chau Vu, Director of Public Works PREPARED BY:Michael Aguas, Capital Projects Administrator Subject: Accept Lowest Responsive and Responsible Bid and Award Construction Contract to Living Water Industries, LLC., in the amount of $34,750.00 for the Abandonment of Old Pirate Drive Private Water Well Project, CC-1624 Statement of Issue: On May 14, 2026, the City opened electronic bids via PlanetBids for the Abandonment of Old Pirate Drive Private Water Well Project. City Council action is requested to award the construction contract in the amount of $34,750.00 to Living Water Industries, LLC., the lowest responsive and responsible bidder. Financial Impact: The total estimated project cost, including 20% contingency and supplemental cost, is $51,700.00. Item Amount .00 Total Project Cost:$51,700.00 Staff recommends awarding the construction contract to Living Water Industries, LLC. in the amount of $34,750.00. Funding for this project is available in the Water Enterprise Fund, Account No. 50691049.82100, and the State Water Resources Control Board (SWRCB) Fund, Account No. 130291001.82100. Recommended Action: A) Accept the lowest responsive and responsible bid submitted by Living Water Industries LLC in the amount of $34,750.00; and, City of Huntington Beach Printed on 7/15/2026Page 1 of 3 403 - _J ' I I - ' ' L 1 J File #:26-585 MEETING DATE:7/21/2026 Alternative Action(s): Do not award the contract, reject all bids, and provide an alternative direction to staff. Analysis: The Engineering and Utilities Division identified the need to permanently abandon the existing non- operational private water well located on Old Pirate Drive. The project includes removal of the well pump, pressure grouting the existing 6-inch well from its total depth of approximately 150 feet to within 5 feet of the ground surface, removal and capping of the upper portion of the well casing, removal of the approximately 2,000-gallon water tank and concrete support pad, removal of the electrical service pole serving the well, and proper disposal of all associated equipment and site improvements. This project is supported through a State Water Resources Control Board (SWRCB) grant. In accordance with grant requirements and City purchasing policies, City Council authorization is necessary to award the construction contract. On May 14, 2026, bids were opened with the following results: Bidder’s Name Bid Amount ,. Staff reviewed the bid submitted by Living Water Industries, LLC. and determined it to be the lowest responsive and responsible bid. The total estimated project cost is $51,700.00, which includes the construction contract, 20% contingency, and supplemental costs for construction support services. Environmental Status: This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1 - Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the project consists of the abandonment and removal of an existing non- operational private water well and associated improvements, involving negligible or no expansion of the existing use. Strategic Plan Goal: Non-Applicable For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. RCA Contract Agreement Summary City of Huntington Beach Printed on 7/15/2026Page 2 of 3 404 File #:26-585 MEETING DATE:7/21/2026 City of Huntington Beach Printed on 7/15/2026Page 3 of 3 405 RCA Contract Agreement Summary CITY OF HUNTINGTON BEACH VENDOR NAME + TYPE OF SERVICE CONTRACT INFORMATION GENERAL INFORMATION TYPE OF AGREEMENT (Professional Services, Service Agreement) PROCUREMENT SCOPE OF WORK TOTAL COMPENSATION TERM OF CONTRACT/AGREEMENT OTHER: Bonds, Special Contract Terms, Emergency DATE PRESENTED REQUESTING DEPARTMENT STAFF CONTACT(S)INSURANCE STATUS 07/21/2026 Pending review with RM/CAO Public Works Michael Aguas, Capital Projects Administrator $34,750.00 Construction Contract Living Water Industries, LLC. - CC1624 Abandonment of Old Pirate Drive Private Water Well Construction Contract On 5/14/2026, bids were received for the Abandonment of Old Pirate Drive Private Water Well project via Planet Bids. Lowest responsive & responsible Bid was submitted by Living Water Industries, LLC. The project consists of removing pump, pressure grouting the existing / abandoned 6” private water well from the bottom of total depth of 150’ to 5’ from surface, remove and cap top 5’, removing the approximate 2,000 gallon water tank and concrete support pad(s), and removing the power drop pole. Certification of Insurance is in review with Risk Management and the City Attorney's Office. Bonds are pending the award of the construction contract by City Council. 406 LO CITY OF rD HUNTINGTON BEACH 407 CITY FUNDED CONSTRUCTION CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND LIVING WATER INDUSTRIES, LLC FOR ABANDONMENT OF OLD PIRATE DRIVE WATER WELL, CC 1624 THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and ----""L"'-IV-'--'I""N..:..:G"---'W-"A~T"'Ec,.:R'-'I"-N'-"Dc..:U"'S""''T,_,I~UseEe.sSe1., -"'L"'L'""C"-. _ _,, a California corporation, hereinafter referred to as "CONTRACTOR." WHEREAS, CITY has solicited bids for a public works project, hereinafter referred to as "PROJECT," more fully described as ABANDONMENT OF OLD PIRATE DRIVE PRIVATE WATER WELL, CC1624 in the City of Huntington Beach; and CONTRACTOR has been selected to perform said services, NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged the parties covenant and agree as follows: 1. STATEMENT OF WORK: ACCEPTANCE OF RISK CONTRACTOR shall complete and construct the PROJECT pursuant to this Agreement and the Contract Documents ( as hereinafter defined) and furnish, at its own cost and expense, all labor, plans, tools, equipment, supplies, transportation, utilities and all other items, services and facilities necessary to complete and construct the PROJECT in a good and workmanlike manner. CONTRACTOR agrees to fully assume the risk of all loss or damage arising out of the nature of the PROJECT, during its progress or prior to acceptance by CITY, from the action of the elements, from any unforeseen difficulties which may arise or be encountered in the I 16-5195/City Funded Construction Contract.docx -revised 04/2016 408 prosecution of work, and for all other risks of any description in connection with the work, including, but not limited to, all expenses incurred by or in consequence of the suspension or discontinuance of work, except such as are herein expressly stipulated to be borne by CITY, and for well and faithfully completing the work within the stipulated time and in the manner shown and described in this Agreement, and in accordance with the requirements of CITY for the compensation set fmth in the accepted bid proposal. 2. ACCEPTANCE OF CONDITIONS OF WORK; PLANS AND SPECIFICATIONS CONTRACTOR acknowledges that it is fully familiar with all the terms, conditions and obligations of this Agreement and the Contract Documents (as defined below in this Section), has inspected the location of the job site, and the conditions under which the work is to be performed, and that it enters into this Agreement based upon its thorough investigation of all such matters and is relying in no way upon any opinions or representations of CITY. It is agreed that the Contract Documents are incorporated into this Agreement by this reference, with the same force and effect as if the same were set fmih at length herein, and that CONTRACTOR and its subcontractors, if any, shall be bound by the Contract Documents insofar as they relate in part or in any way, directly or indirectly, to the work covered by this Agreement. "Contract Documents" as defined herein mean and include: A. This Agreement; B. Bonds covering the work herein agreed upon; C. The CITY's standard Plans and Specifications and special contractual provisions, including those on file in the office of the Department of Public Works of CITY, and any revisions, amendments or addenda thereto; 2 16-5195/City Funded Construction Contract.docx -revised 04/2016 409 D. The edition of Standard Specifications for Public Works Construction, published by Builders' News, Inc., I 0801 National Boulevard, Los Angeles, CA 90064, and all amendments thereto, written and promulgated by the Southern California chapter of the American Public Works Association and the Southern California District Associated General Contractors of the California Joint Cooperative Committee as specified in the particular Plans, Specifications, Special Provisions and Addendum applicable to the Project; E. Bid documents including the Notice Inviting Bids, the Special Instructions to Bidders and the CONTRACTOR's proposal, (which is attached hereto as Exhibit "A" and incorporated herein by this reference); F. The particular Plans, Specifications, Special Provisions and Addenda applicable to the PROJECT. Anything mentioned in the Specifications and not indicated in the Plans or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of a discrepancy between any Plans, Specifications, Special provisions, or Addenda, the matter shall be immediately submitted by CONTRACTOR to the Director of Public Works of CITY or his or her written designee (hereinafter referred to as "DPW"), and CONTRACTOR shall not attempt to resolve or adjust the discrepancy without the decision ofDPW, save only at its own risk and expense. Should there be any conflict between the terms of this Agreement and the bid or proposal of CONTRACTOR, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid or proposal which is in conflict herewith. 3 l 6-5195/City Funded Construction Contract.docx-revised 04/2016 410 3. COMPENSATION CITY agrees to pay and CONTRACTOR agrees to accept as full compensation for the faithful performance of this Agreement, subject to any additions or deductions made under the provisions of this Agreement or the Contract Documents, a sum not to exceed Thirty Four Thousand Seven Hundred Fifty and 100/100 Dollars ( $34,750.00 ), as set forth in the Contract Documents, to be paid as provided in this Agreement. 4. COMMENCEMENT OF PROJECT CONTRACTOR agrees to commence the PROJECT within ten (10) working days after the Notice To Proceed is issued and diligently prosecute the PROJECT to completion within ---'T""E"', N'-'--__ (,_""10~) Working days from the day the Notice to Proceed is issued by DPW, excluding delays provided for in this Agreement. 5. TIME OF THE ESSENCE The parties hereto recognize and agree that time is of the essence in the performance of this Agreement and each and eve1y provision of the Contract Documents. CONTRACTOR shall prepare and obtain approval as required by the Contract Documents for all shop drawings, details and samples, and do all other things necessmy and incidental to the prosecution of its work in conformance with the progress schedule set forth in the Contract Documents. CONTRACTOR shall coordinate its work with the work of all other contractors, subcontractors, and CITY forces working on the PROJECT in a manner that will facilitate the efficient completion of the PROJECT and in accordance with the terms and provisions of this Agreement. CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time and order in which the various portions of the work shall be performed and the priority of the work of other contractors, 4 16-5195/City Funded Construction Contract.docx -revised 04/20 I 6 411 subcontractors and CITY forces and, in general, all matters concerning the timely and orderly conduct of the work of CONTRACTOR on the premises. 6. CHANGES CONTRACTOR shall adhere strictly to the plans and specifications set forth in the Contract Documents unless a change therefrom is authorized in writing by DPW. CONTRACTOR agrees to make any and all changes, furnish materials and perform all work necessary within the scope of the PROJECT as DPW may require in writing. Under no condition shall CONTRACTOR make any changes without the prior written order or acceptance ofDPW, and CITY shall not pay any extra charges made by CONTRACTOR that have not been agreed upon in writing by DPW. When directed to change the work, CONTRACTOR shall submit immediately to DPW a written cost proposal reflecting the effect of the change. Should DPW not agree to such cost proposal, the work shall be performed according to the changes ordered in writing by DPW and the proper cost thereof shall be negotiated by the parties upon cost and pricing data submitted by CONTRACTOR; thereupon, CITY will promptly issue an adjusted change order to CONTRACTOR and the contract price will be adjusted upward or downward accordingly. 7. NOTICE TO PROCEED No work, services, material, or equipment shall be performed or furnished under this Agreement unless and until a Notice to Proceed has been given to CONTRACTOR by CITY. CITY does not warrant that the work will be available on the date the Notice to Proceed is issued. In the event of a delay in commencement of the work due to unavailability of the job site, for any reason, relief to CONTRACTOR shall be limited to a time extension equal to the delay due to such unavailability. 5 l 6-5195/City Funded Construction Contract.docx revised 04/2016 412 8. BONDS Only bonds issued by California admitted sureties will be accepted. CONTRACTOR shall, prior to its performance of this Agreement, furnish the following two (2) bonds approved by the City Attorney: One in the amount of one hundred percent ( 100%) of the contract price to guarantee the CONTRACTOR's faithful performance of the work, and one in the amount of one hundred percent of the contract price to guarantee payment of all claims for labor and materials furnished. In addition, CONTRACTOR shall submit to CITY a bond in the amount of one hundred percent (100%) of the final contract price, including all change orders, to wanant such performance for a period of one (I) year after CITY's acceptance thereof within ten (10) days of filing of the Notice of Completion. 9. W ARRANTTES CONTRACTOR unconditionally guarantees all work done under this Agreement including, but not limited to, any workmanship, installation, fabrication, material or structural facilities constructed. CONTRACTOR, within ten (10) days after notice by CITY of any defect in the work, shall have the option to make appropriate repairs or replace the defective item or items. Upon expiration of such ten (I 0) day period, CITY may then make appropriate repair or replacement at CONTRACTOR's risk and own cost and expense. 10. INDEPENDENT CONTRACTOR It is understood and agreed that CONTRACTOR is, and shall be, acting at all times hereunder as an independent contractor and not an employee of CITY. CONTRACTOR shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll 6 16-5195/City Funded Construction Contract.docx -revised 04/2016 413 deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services performed hereunder. 11. LIQUIDATED DAMAGES/DELAYS It is agreed by the parties hereto that in case the total work called for hereunder is not in all parts and requirements finished or completed within the number of calendar days as set forth herein, damage will be sustained by CITY; and that it is, and would be, impractical and extremely difficult to ascertain and determine the actual damage which CITY would sustain in the event of and by reason of such delay. It is, therefore, agreed that CONTRACTOR will pay to CITY, as liquidated damages and not as a penalty, the sum of -----'"O~n,.,e~T,..,h""o"-'u""s"'ae,n-"'d-"a"'n"'d'--'0"-'0"-/""10"-'0"---_( $1,000) per each calendar day's delay in completing the work in excess of the number of working/calendar days set forth herein, which represents a reasonable endeavor by the parties hereto to estimate a fair compensation for the foreseeable damages CITY would sustain in the event of and by reason of such delay; and CONTRACTOR agrees to pay these damages herein provided, and further agrees that CITY may deduct the amount thereof from any monies due or that may become due to CONTRACTOR hereunder. CONTRACTOR will be granted an extension of time and will not be assessed damages for any portion of the delay in the completion of the work due to unforeseeable causes beyond the control and without the fault or negligence of CONTRACTOR, including, but not limited to, acts of God or of the public enemy, fire, floods, epidemics, quarantine restrictions, strikes, unsuitable weather, or delays of subcontractors due to such causes. CONTRACTOR shall, within fifteen (15) days from the beginning of any such delay (unless DPW shall grant a further period of time), notify DPW in writing of the cause of the 7 16-5195/City Funded Construction Contract.docx -revised 04/2016 414 delay and CITY shall extend the time for completing the work if, in its judgment, the findings of fact thereon justify the delay; and the decision of DPW shall be conclusive on the pmiies hereto. Should CONTRACTOR be delayed in the prosecution or completion of the work by the act, neglect or default of CITY, or should CONTRACTOR be delayed by waiting for materials required by this Agreement to be furnished by CITY, or by damage caused by fire or other casualty at the job site for which CONTRACTOR is not responsible, or by the combined action of the workers, in no way caused by or resulting from default or collusion on the pmi of CONTRACTOR, or in the event of a lockout by CITY, then the time herein fixed for the completion of the work shall be extended by the number of days CONTRACTOR has thus been delayed, but no allowance or extension shall be made unless a claim therefor is presented in writing to CITY within fifteen (15) days of the commencement of such delay. No claims for additional compensation or damages for delays, irrespective of the cause thereof, and including without limitation the furnishing of materials by CITY or delays by other contractors or subcontractors will be allowed and an extension of time for completion shall be the sole remedy of CONTRACTOR. 12. DEMANDS FOR ADDITIONAL TIME OR MONEY. A. Definitions. (1) "Change Order" means a document signed by the CONTRACTOR and CITY which authorizes an addition, deletion or revision in the work, or an adjustment in the Compensation under Section 3, or the Completion Time specified at Section 4. (2) "Demand" means a written demand for a Change Order by the CONTRACTOR for any of the following: (a) A time extension; 8 I 6-5195/City Funded Construction Contract.docx -revised 04/2016 415 (b) Payment of money or damages arising from work done by, or on behalf of, the CONTRACTOR pursuant to this Agreement and payment of which is not expressly permitted pursuant to Section 3 of this Agreement; ( c) Payment of an amount the CITY disputes; ( d) Any disputes and other matters relating to the acceptability of the work performed or the interpretation of the Contract Documents; ( e) A request for a time extension or additional payment based upon differing site conditions, such as subsurface or latent physical conditions at the job site differing materially from those indicated in this Agreement or the Contract Documents, or unknown physical conditions at the job site, of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent to work of the PROJECT; or (f) A request for a time extension or additional payment based upon acts of neglect by CITY or due to fires, floods, labor disputes, epidemics, abnormal weather conditions or acts of God. B. A Demand for a time extension or payment of money or damages may only be granted by a Change Order. C. No Change Order may be granted except where the Contractor has submitted a Demand to the DPW ( or his or her written designee ). All Demands shall be submitted promptly, but in no event later than thitiy (30) days after the occurrence of the event giving rise to the Demand. The Demand shall be in writing and include all documents necessary to substantiate the Demand. The DPW shall act on the Demand within fifteen (15) days after receipt, including by requesting additional information from the CONTRACTOR to determine whether to approve the Change Order the Demand seeks. The DPW shall act on the Demand within fifteen (15) days 9 16-5195/City Funded Construction Conu·act.docx -revised 04/2016 416 after receipt of the additional information or within a period of time no greater than the time the CONTRACTOR took to produce the additional information requested, whichever is greater. D. Notwithstanding the thi1iy (30) days to submit a Demand under Subparagraph C, m the case of differing or unknown site conditions, immediately upon encountering the conditions, CONTRACTOR shall notify the DPW in writing of the conditions, so that the CITY may promptly investigate the conditions. E. If the CONTRACTOR disputes the DPW's written response on the Demand, or the CITY fails to respond within the time prescribed, the CONTRACTOR may so notify the City Engineer, in writing, either within fifteen ( 15) days of receipt of the City Engineer's response or within fifteen (15) days of the DPW' s failure to respond within the time prescribed, respectively, and request an informal conference to meet and confer for settlement of the Demand. Upon the CONTRACTOR's request, the DPW shall schedule a meet and confer conference within thi1iy (30) days to seek to resolve. F. CITY and CONTRACTOR shall execute appropriate Change Orders covering changes to the time or price by executing the Change Order by mutual agreement. If the CITY and CONTRACTOR are unable to reach a mutual agreement, then the City Engineer shall issue a written decision on the claim within a reasonable time. G. Following the meet and confer conference, if the Demand remains m dispute, the CONTRACTOR may file a claim with the City as provided in Chapter 1 ( commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the CONTRACTOR submits his 10 16-5195/City Funded Construction Contract.docx -revised 04/2016 417 or her Demand until the Demand is denied as a result of the meet and confer process, including any period of time utilized by the meet and confer process. 13. V ARIA TIO NS IN ESTIMATED QUANTITIES The quantities listed in the bid schedule will not govern final payment. Payment to CONTRACTOR will be made only for the actual quantities of contract items used in construction of the PROJECT, in accordance with the plans and specifications. Upon completion of the PROJECT, if the actual quantities used are either more than or less than the quantities listed in the bid schedule, the bid price shall prevail subject to the provisions of this Section. DPW may, at its sole discretion, when warranted by the facts and circumstances, order an equitable adjustment, upwards or downwards, in payment to CONTRACTOR where the actual quantities used in construction of the PROJECT are in variation to the quantities listed in the bid schedule. No claim by CONTRACTOR for an equitable adjustment in price or time for completion shall be allowed if asserted after final payment under this Agreement. If the quantity variation is such as to cause an increase in the time necessary for completion, DPW shall ascertain the facts and circumstances and make such adjustment for extending the completion date as in its sole judgment the findings warrant. 14. PROGRESS PAYMENTS Each month DPW will make an estimate in writing of the work performed by CONTRACTOR and the value thereof. From each progress estimate, five percent (5%) will be deducted and retained by CITY and the remainder of the progress estimate, less the amount of all previous payments since commencement of the work, will be paid to CONTRACTOR. When CONTRACTOR has, in the judgment of DPW, faithfully executed fifty percent (50%) or more of the value of the work as determined from the bid schedule, and ifDPW finds that satisfact01y progress has been and is being made, CONTRACTOR may be paid such 11 I 6-5195/City Funded Construction Contract.docx -revised 04/20 I 6 418 sum as will bring the payments of each month up to one hundred percent (100%) of the value of the work completed since the commencement of the PROJECT, as determined in its sole discretion by DPW, less all previous payments and less all previous retained amounts. CITY's final payment to CONTRACTOR, if unencumbered, or any part thereof unencumbered, shall be made thirty-five (35) days after the acceptance of the work and the filing of a Notice of Completion by CITY. Provided, however, that in the event of a dispute between CITY and CONTRACTOR, CITY may withhold from the final payment an amount not to exceed 150 percent of the value of any disputed amount of work. Payments shall be made on demands drawn in the manner required by law, each payment to be accompanied by a ce1tificate signed by DPW, affirming that the work for which payment is demanded has been performed in accordance with the terms of the Agreement and that the amount stated in the certificate is due under the terms of the Agreement. Partial payments on the contract price shall not be considered as an acceptance of any part of the work. WITHHELD CONTRACT FUNDS SUBSTITUTION OF SECURITIES At the request and at the sole cost and expense of CONTRACTOR, who shall retain beneficial ownership and receive interest, if any thereon, CITY shall permit the substitution and deposit therewith of securities equivalent to the amount of any monies withheld by CITY to ensure performance under the terms of this Agreement. 16. AFFIDAVITS OF SATISFACTION OF CLAIMS After the completion of the work contemplated by this Agreement, CONTRACTOR shall file with DPW its affidavit stating that all workers and persons employed, all firms supplying materials and all subcontractors working upon the PROJECT have been paid in full and that there are no claims outstanding against the PROJECT for either labor or material, except certain items, if any, to be set fmth in CONTRACTOR's affidavit covering disputed claims, 12 16-5195/City Funded Construction Contract.docx revised 04/2016 419 or items in connection with Notices to Withhold, which have been filed under the provisions of the statutes of the State of California. 17. W AIYER OF CLAIMS The acceptance by CONTRACTOR of the payment of the final certificate shall constitute a waiver of all claims against CITY under or arising out of this Agreement. A. The CITY has ascertained from the Director of Industrial Relations of the State of California the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Agreement, and the same has been set forth by resolution on file in the office of the City Clerk of CITY. CONTRACTOR and any subcontractor under it shall pay not less than said prevailing wage rates to all workers employed on this public works Agreement, as required by California Labor Code Sections 1771 and 1774. In accordance with the provisions of Section 3 700 of the California Labor Code, CONTRACTOR agrees to secure payment of compensation to every employee. B. Pursuant to this Agreement and in accordance with Section 1774 and 1775 of the California Labor Code, CONTRACTOR shall, as penalty to CITY, forfeit twenty-five dollars ($25) for each calendar day or portion thereof for each worker paid ( either by CONTRACTOR or any of its subcontractors) less than the prevailing wage rate established for that particular craft or type of work. 18. CALIFORNIA PREVAILING WAGE LAW A. The CITY has ascertained from the Director of Industrial Relations of the State of California the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Agreement, and the same has been set forth by 13 I 6-5195/City Funded Construction Contract.docx -revised 04/20 l 6 420 resolution on file in the office of the City Clerk of CITY. CONTRACTOR and any subcontractor under it shall pay not less than said prevailing wage rates to all workers employed on this public works Agreement, as required by California Labor Code Sections 1771 and 1774. In accordance with the provisions of Section 3700 of the California Labor Code, CONTRACTOR agrees to secure payment of compensation to every employee. B. Pursuant to this Agreement and in accordance with Section 1774 and 1775 of the California Labor Code, CONTRACTOR shall, as penalty to CITY, forfeit twenty-five dollars ($25) for each calendar day or portion thereof for each worker paid ( either by CONTRACTOR or any of its subcontractors) less than the prevailing wage rate established for that particular craft or type of work. 19. CALIFORNIA EIGHT-HOUR LAW A. California Labor Code, Sections 1810 et seq, shall apply to the performanee of this Agreement; thereunder, not more than eight (8) hours shall constitute one day's work and CONTRACTOR and each subcontractor employed by its hereunder, shall not require more than eight (8) hours of labor per day or forty ( 40) hours per week from any one person employed by it hereunder, except as stipulated in California Labor Code Section 1815. CONTRACTOR and each subcontractor employed by it hereunder shall, in accordance with California Labor Code Section 1812, keep an accurate record, open to inspection at all reasonable hours, showing the name and actual hours worked each calendar day and each calendar week by each worker employed in connection with the PROJECT. B. Pursuant to this Agreement and in accordance with California Labor Code Section 1813, CONTRACTOR shall, as a penalty to CITY, forfeit twenty-five dollars ($25) for each worker employed hereunder by CONTRACTOR or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one 14 16-5195/City Funded Construction Contract.docx -revised 04/2016 421 (1) calendar day or forty ( 40) hours in any one (]) calendar week in violation of California Labor Code Section 1815, 20. PAYMENT OF TRAVEL AND SUBSISTENCE ALLOWANCE Section 1773.8 of the California Labor Code, regarding the payment of travel and subsistence allowance is applicable to this PROJECT. 21. EMPLOYMENT OF APPRENTICES Section 1777 .5 of the California Labor Code, regarding the employment of apprentices is applicable to this PROJECT. 22. PAYROLL RECORDS CONTRACTOR agrees to keep accurate payroll record showing the name, address, social security number, work classification, straight time and ove1iime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice or worker employed by it in connection with the PROJECT and agrees to require each of its subcontractors to do the same, CONTRACTOR further agrees that its payroll records and those of its subcontractors, if any, shall be available at all reasonable times to the CITY, and the employee or his representative, and the Division of Labor Standards Enforcement and the Division of Apprenticeship Standards, and to comply with all of the provisions of California Labor Code Section 1776, in general. 23. INDEMNIFICATION, DEFENSE, HOLD HARMLESS CONTRACTOR hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents, and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands, defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to CONTRACTOR's employees and damage to CONTRACTOR's property, 15 16-5195/City Funded Construction Contractdocx -revised 04/2016 422 ansmg directly or indirectly out of the obligations or operations herein undertaken by CONTRACTOR, caused in whole or in pat1 by any negligent act or omission of the CONTRACTOR, any subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concmTent active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the CITY, its officers, elected or appointed officials, employees, agents, and volunteers. CONTRACTOR will conduct all defense at its sole cost and expense and CITY shall approve selection of CONTRACTOR's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR. 24. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE Pursuant to California Labor Code Section 1861, CONTRACTOR acknowledges awareness of Section 3700 et seq. of this Code, which requires every employer to be insured against liability for workers' compensation; CONTRACTOR covenants that it will comply with such provisions prior to commencing performance of the work hereunder. CONTRACTOR shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. CONTRACTOR shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. CONTRACTOR shall furnish to CITY a ce11ificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and CONTRACTOR shall similarly require all subcontractors to waive subrogation. 16 16-5195/City Funded Construction Contract.docx -revised 04/2016 423 25. INSURANCE In addition to the workers' compensation and employer's liability insurance and CONTRACTOR's covenant to defend, hold harmless and indemnify CITY, CONTRACTOR shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage covering the PROJECT. This policy shall indemnify CONTRACTOR, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and prope1ty damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this PROJECT. This policy shall name CITY, its officers, elected or appointed officials, employees, agents, and volunteers (the "Additionally Insured Paities") as Additional Insureds, and shall specifically provide that ai1y other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONTRACTOR's insurance shall be primary and non-contributmy with any other valid and collectible insurance or self-insurance available to the Additionally Insured Parties. Any available insurance proceeds in excess of the minimum coverage amount specified herein shall be available to the Additionally Insured Parties. All coverage available to CONTRACTOR shall also be available to the Additionally Insured Parties. Under no circumstances shall said above-mentioned insura11ce contain a self-insured retention without the express written consent of CITY; however an insurance policy "deductible" of Five Thousand Dollars ($5,000.00) is permitted. CONTRACTOR shall be responsible for causing all Subcontractors to maintain the same types and limits of insurance coverage as that required of CONTRACTOR by this Agreement. 17 16-5195/City funded Construction Contract.docx-revised 04/2016 424 26. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY ce1iificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; the cc1iificates shall: 1. Provide the name and policy number of each carrier and policy; 2. State that the policy is currently in force; and 3. Promise to provide that such policies will not be canceled or modified without thiiiy (30) days' prior written notice of CITY. CONTRACTOR shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverages shall not derogate from the CONTRACTOR's defense, hold harmless and indemnification obligations as set f01ih under this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all the policies of insurance. CONTRACTOR shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. CONTRACTOR shall provide a separate copy of the additional insured endorsement to each of CONTRACTOR's insurance policies, naming CITY, its officers, elected and appointed officials, employees, agents and volunteers as Additional Insureds, to the City Attorney for approval prior to any payment hereunder. 27. NOTICE OF THIRD PARTY CLAIM Pursuant to Public Contracts Code §9202, CITY shall provide notice to CONTRACTOR of receipt of any claim filed with CITY or a comi of competent jurisdiction which arises out of performance of this agreement within ten (10) days ofreceipt of such claim or claims. 18 16-5195/City Funded Construction Contract.docx -revised 04/2016 425 28. DEFAULT AND TERMINATION If CONTRACTOR fails or refuses to prosecute the work hereunder with diligence, or fails to complete the work within the time specified, or is adjudged bankrupt or makes an assignment for the benefit of creditors or becomes insolvent, or violates any provision of this Agreement or the Contract Documents, CITY may give CONTRACTOR notice in writing of its intention to terminate this Agreement. Unless the violation is cured within ten (10) days after such Notice of Intention has been served on CONTRACTOR, CITY may, without prejudice to any other remedy it may have, terminate this Agreement upon the expiration of that time. Upon such default by CONTRACTOR, CITY may elect not to terminate this Agreement; in such event CITY may make good the deficiency in which the default consists and deduct the resulting costs from the progress payments then or to become due to CONTRACTOR. If it is subsequently determined by a court of competent jurisdiction that CITY's termination of this Agreement under this Section was wrongful, such termination shall be converted to a termination for convenience under Section 29 and any damages shall be assessed as set forth in Section 29. 29. TERMINATION FOR CONVENIENCE CITY may terminate this Agreement for convenience at any time with or without cause, and whether or not PROJECT is fully complete upon seven (7) calendar days written notice to CONTRACTOR. In the event of termination, under this Section CITY shall pay CONTRACTOR for value of work in place on the PROJECT through the termination period less all such payments already made. In case of such termination for convenience, the CONTRACTOR shall be entitled to receive payment for work executed, and costs incurred by reason of such termination. In no event shall CONTRACTOR be entitled to recover overhead, profit or CONTRACTOR's fee on work not performed. Such payment by CITY shall be CONTRACTOR's 19 16-5195/City Funded Construction Contract.docx -revised 04/2016 426 sole and exclusive remedy for termination by CITY for its convenience and CITY shall have no further obligation to CONTRACTOR. 30. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONTRACTOR agrees that upon completion of the work to be performed hereunder, or upon expiration or earlier termination of this Agreement, all original plans, specifications, drawings, reports, calculations, maps and other documents pertaining to this Agreement shall be delivered to CITY and become its sole prope1iy at no further cost. 31. NONASSIGNABILITY CONTRACTOR shall not sell, assign, transfer, convey or encumber this Agreement, or any part hereof, or any right or duty created herein, without the prior written consent of CITY and the surety. 32. CITY EMPLOYEES AND OFFICIALS CONTRACTOR shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the California Government Code. 33. STOP NOTICES· RECOVERY OF ADMINISTRATIVE COSTS CITY shall be entitled to all reasonable administrative costs and necessary disbursements arising out of the processing of Stop Notices, Notices to Withhold, or any similar legal document. This obligation shall be provided for in the labor and materials payment bond required of CONTRACTOR. CITY may charge an administrative fee of One Hundred Dollars ($100) for every Stop Notice filed in excess of two (2), regardless of whether or not CITY is named in an action to enforce such stop notices. CITY may set off any umeimbursed cost or expense so incu1Ted against any sum or sums owed by CITY to CONTRACTOR under this Agreement. 20 16-5195/City Funded Construction Contract.docx -revised 04/2016 427 34. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONTRACTOR's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below; provided that CITY and CONTRACTOR may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, reputable overnight carrier or U. S. certified mail-return receipt requested: TO CITY: City of Huntington Beach ATTN: Michael Aguas , Public Works 2000 Main Street Huntington Beach, CA 92648 35. SECTION HEADINGS TO CONTRACTOR: Living Water Industries, LLC. ATTN: Tanner Torell 2475 Dunn Rd. Merced, CA 95340 The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of maters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the pmiies or affect the construction or interpretation of any provision of this Agreement. 21 16-5195/City Funded Construction Contract.docx -revised 04/2016 428 36. IMMIGRATION CONTRACTOR shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of United States Code Section 1324a regarding employment verification. 37. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subconh·actor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach City Chmier Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 38. ATTORNEY'S FEES In the event suit is brought by either pmiy to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bem its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non-prevailing party. 39. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an mbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the 22 16-5195/City Funded Construction Contract.docx -revised 04/2016 429 context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 40. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 41. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 42. CONSENT Where CITY's consent/approval 1s required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be consent/approval to any subsequent occurrence of the same or any other transaction or event. 43. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement shall so survive. 44. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 23 16-5195/City Funded Construction Contract.docx -revised 04/2016 430 45. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 46. ENTIRETY The pmiies acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The patiies also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that patiy or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that pmiy has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached Exhibit "A", contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 24 I 6-5195/City Funded Construction Contract.docx -revised 04/2016 431 IN WTTNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and tlu·ough their authorized officers on ]-/ t) ,20 2p CONTRACTO R: By:d&~ /'1 . c i..1,L,/ foreJ I~ (p rint name) AND CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Ca lifornia Mayor City Clerk INITIATED AND APPROVED: By: ~ Director of Public Works .3v: ~ t-6 ~ ~ :Torv\ I (p rint name) REVIEVlED AND APPROVED: ITS: ~/ Ch ief Financ ia l Officer / Asst. Secreta ry / Treasurer (circle one) City Manager APPROVED AS TO FORM: :e:~~ 25 16-5195/City Funded Construction Contract.docx -revised 04 /20 16 ft, City Attorney 432 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on ________ , 20 __ . CONTRACTOR: By :---------------- (print name) ITS: Chairman/ President / Vi ce-Pre sident {circle one) AND By: _____________ _ CITY OF HUNTINGTO N BEACH, a municipal corporation of the State of California Mayor City Clerk INITIA~ Director of Public Works (print name) REVIEWED AND A PPROV ED: ITS: Secretary / Chief Financial Officer / Asst. Secreta ry / Treasu re r (circle one) City Manager APPROVED AS TO F ORM: fvL-~ 25 16-5195/C ity Fu nded Co nstru ction Contract.docx -rev ised 04/20 16 ft--City Atto rney 433 26 16-5195/City Funded Construction Contract.docx "" revised 04/2016 Abandonment of Old Pirate Drive Private Water Well Project - CC1624 July 21, 2026 City Council Meeting 434 Background The Engineering and Utilities Division identified the need to permanently abandon the existing non-operational private water well located on Old Pirate Drive. The project includes removal of the well pump, pressure grouting the existing 6-inch well from its total depth of approximately 150 feet to within 5 feet of the ground surface, removal and capping of the upper portion of the well casing, removal of the approximately 2,000-gallon water tank and concrete support pad, removal of the electrical service pole serving the well, and proper disposal of all associated equipment and site improvements. 435 Abandonment of Old Pirate Drive Private Water Well CC1624 •Removal / pulling pump •Cap well 5 feet from surface •Remove 2,000-gallon tank •Dispose of all existing equipment •Remove power drop pole Projects 436 Abandonment of Old Pirate Drive Private Water Well CC1624 •Site Restoration •New Landscaping •Installed new City Water Mainline •Increased long-time Water Utility service life •Potential community safety hazard eliminated Projects 437 Funding and Schedule Current Funding: •No additional funding required Schedule: •Design Phase Completed •Construction/Engineering – To Begin Late Summer FY 26/27 438 Questions? 439 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-598 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Chau Vu, Director of Public Works PREPARED BY:Frank Drevdahl, Capital Projects Administrator Subject: Accept Lowest Responsive and Responsible Bid and Award Construction Contract to R.E. Schultz Construction, Inc. in the amount of $397,299.00 for the Drew Park and Robinwood Park Playground Improvements, CC1859 and CC1823 Statement of Issue: Bids for Drew Park and Robinwood Park Playground Improvements, CC1859 and CC1823 were publicly opened on June 23, 2026. Staff reviewed the bid submissions and determined that R.E. Schultz Construction, Inc. submitted the lowest responsive and responsible bid. City Council action is requested to award the construction contract to R.E. Schultz Construction, Inc. in the amount of $397,299. Financial Impact: The total project cost for Drew Park and Robinwood Park Playground Improvements, CC1859 and CC1823, including 10% contingency, and supplemental expenses is $442,028.19. The project cost breakdown is provided below: Item Amount Total Construction Cost:$442,028.19 Funding for the project is available in Account No. 22645016.82900 (Drew Park) and in Account No. 22845033.82900 (Robinwood Park). City of Huntington Beach Printed on 7/15/2026Page 1 of 3 440 I' j I ' ' I L 1 _J File #:26-598 MEETING DATE:7/21/2026 Recommended Action: A) Accept the lowest responsive and responsible bid submitted by R.E. Schultz Construction, Inc. in the amount of $397,298.35; and, B) Authorize the Director of Public Works to approve change orders up to ten percent (10%) of the contract amount in potential construction change orders; and, C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Alternative Action(s): Reject all bids and provide staff with direction. Analysis: The City’s Fiscal Year (FY) 2025-2026 Capital Improvement Program (CIP) Budget included the playground improvements for both Drew Park, CC1859 and Robinwood Park, CC1823. These facilities are also included in the Park Playground & Equipment Replacement List. At Drew Park, scope elements include replacing the play structure, removing existing swings, installing a new swing in a revised location, and adding poured-in-place surfacing to both the play and swing areas. At Robinwood Park, work includes replacing two play structures, installing partial poured-in-place surfacing, and replenishing sand in the adventure play area. All playground equipment carries manufacturer warranties ranging from five years to lifetime depending on the component, along with a one-year maintenance bond. Staff reached out to locally qualified, licensed contractors, and advertised the project in the Huntington Beach Wave, and on PlanetBids. A job walkthrough was publicly advertised for June 2, 2026, with twenty (20) firms were in attendance. The engineer’s estimate for the project was $560,000. Bids were publicly opened on June 23, 2026. Staff received five (5) bids ranging from $397,298.35 to $589,300.71. Bidder’s Name Submitted and Verified Bid ... . R.E. Schultz Construction, Inc. submitted the lowest responsive and responsible bid. Staff reviewed all required contractor qualifications, licensing, and references and confirmed the firm’s ability to successfully complete the project. Staff recommends awarding the construction contract to R.E. Schultz Construction, Inc. in the amount of $397,298.35, along with a 10% contingency to address unforeseen field conditions or necessary modifications during construction. The total project cost of $442,028.19 includes the City of Huntington Beach Printed on 7/15/2026Page 2 of 3 441 File #:26-598 MEETING DATE:7/21/2026 . Environmental Status: This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Class 2 - Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the project consists of replacing existing playground equipment and associated improvements at existing public parks with new facilities serving substantially the same purpose and capacity. Strategic Plan Goal: Non-Applicable Attachment(s): 1. RCA Contract Agreement Summary 2. Construction Contract City of Huntington Beach Printed on 7/15/2026Page 3 of 3 442 RCA Contract Agreement Summary CITY OF HUNTINGTON BEACH VENDOR NAME + TYPE OF SERVICE CONTRACT INFORMATION GENERAL INFORMATION TYPE OF AGREEMENT (Professional Services, Service Agreement) PROCUREMENT SCOPE OF WORK TOTAL COMPENSATION TERM OF CONTRACT/AGREEMENT OTHER: Bonds, Special Contract Terms, Emergency DATE PRESENTED REQUESTING DEPARTMENT STAFF CONTACT(S)INSURANCE STATUS July 21, 2026 Pending Public Works Frank Drevdahl, Capital Projects Administrator $397,299 Construction Contract (90 Working Days) R.E. Schultz Construction, Inc. - Drew Park and Robinwood Park Playground Improvements, CC1859 and CC1823. Project includes playground and poured-in-place surfacing. Construction Contract Notice of Inviting Bids, Formal Procurement (PlanetBids and Local Paper) Playground installation and poured-in-place surfacing installation at two (2) parks (Drew Park and Robinwood Park) Bid Bond, Performance Bond, Payment Bond, Maintenance Bond. 90 Working Days from Notice to Proceed contract terms. Standard Construction Contract. 443 LO CITY OF rD HUNTINGTON BEACH 444 CITY FUNDED CONSTRUCTION CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND R.E. SCHULTZ CONSTRUCTION, INC. FOR DREW PARK PLAYGROUND IMPROVEMENTS, CC1859 ROBINWOOD PARK PLAYGROUND IMPROVEMENTS, CC1823 THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State o f California, hereinafter referred to as "CITY," and ______ R_.E_. -=-S-=-C-=-H-=--U=--=-L-=--T-=--Z--=C:_O:_N_S __ T_R_U_C_T-'l--"-O-=-N_,__,...:....IN----'C_. ______ , a ______________ corporation, hereinafter referred to as "CONTRACTOR." WHEREAS , CITY has solicited bids for a public works project, hereinafter referred to as "PROJ ECT," more fully described as DREW At~D ROBINWOOD PARKS PLAYGROUND ..c::I.:..:.M=P"-'R=O'-V'-'E===-◄ .:..:.M=E:::;◄ N:....:....::Tc...::S:i, -"C"----'C=1=8=5:cc:9__,A'-=---N=D::........::Cc:....:C=1=8=2=3'------in the City of Huntington Beach; and CONTRACTOR has been selected to perform said services, NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged the parties covenant and agree as fo llows: 1. STATEMENT OF WORK; ACCEPTANCE OF RISK CONTRACTOR shall complete and construct the PROJECT pursuant to this Agreement and the Contract Documents (as hereinafter defined) and furnish, at its own cost and expense, all labor, plans, tool s, equi pment, s upplies, transportation, utilities and all other item s, se rvices and facilities necessary to complete and construct th e PROJECT in a good and \Vorkmanlike manner . CONTRACTOR agrees to fully assume the ri sk of all loss or damage arising out of th e nature of the PROJECT, durin g its progress or prior to acceptance by CITY, from the action of the elements, from any unforeseen difficulties v,1hich may arise or be encountered in th e 16-5 195/City Funded Const ructi on Co ntract.docx -revised 04/20 16 445 prosecution of work , and for all other risks o f any description in connection w ith the wo rk , incl uding, but not limited to, all expe nses incurred by or in co nsequence of the s us pen s io n or discontinuance of wo rk, except such as are herein express ly stipulated to be borne by CITY, and for well and faithfully completing the work within the stipulated t ime and in th e m a nner shown and desc ribed in thi s Agreement, and in accordance w ith the requ ire ments of CITY fo r the compensatio n set forth in the accepted bid proposal. 2. ACCEPTANCE OF CONDITIONS OF WORK; P LANS AND SPECIFICATIONS CONTRAC TOR acknowled ges that it is full y familiar with all the terms, co nditi ons and obl igat ions of thi s Agreement and the Co ntract Documents (as defined be low in thi s Section), has in specte d the locat io n of the job s ite, and th e conditions under w hich the wo rk is to be performed, and that it enters into this Agreem e nt based up on its thorough investi gation of a ll suc h matters a nd is re ly in g in no way upo n any opinions or repre sen tation s o f CITY. It is agreed that the Contract Documents a re in corporated into this Agreement by thi s refere n ce, w ith the same force and effect as if t he sa me were set forth at length herei n, a nd th at CONTRACTOR and it s s ub contracto rs, if any, s h a ll be bound by the Co ntract D oc ume nt s insofar as th ey relate in part or in a n y way, directl y or indirectly, to the work cover e d by this Ag reemen t. "Co ntract Documents" as d efi n ed herein mean and include: A. This Agreement; B. Bond s cove rin g t he work h e re in agreed upon; C. T h e CITY's sta ndard Plans a nd Specifications and spec ial co ntractu a l provis ion s, in c luding t hose on file in the office of the Depa rtment of Public Works of CITY, a nd a ny re visions, amend me nts o r addenda thereto; 2 16 -5 195/Ci ty Fu nd ed Constru ction Co nt ract.docx -rev ised 0 4/20 16 446 D. The edition of Standard Spec(ficafions for Public Works Construction, published by Builders' News, Inc., 1080 I National Boulevard, Los Angeles, CA 90064, and all amendments thereto, written and promulgated by the Southern California chapter of the American Public Works Association and the Southern California District Associated General Contracto rs of the California Joint Cooperative Committee as spec ified in the particular Plans, Specifications, Special Provisions and Addendum applicable to the Project; E. Bid documents including the Notice Inviting Bids, the Special In structio ns to Bidders and the CONTRACTOR's proposal, (which is attached hereto as Exhibit "A" and incorporated herein by thi s reference); F. The particular Plans, Specifications, Special Provisions and Addenda applicable to the PROJECT. Anything mentioned in the Specifications and not indicated in the Plans or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and menti oned in both. In case of a discrepancy between any Plans, Specifications, Special provisions, or Addenda, the matter sha ll be immediate ly s ubmitted by CONTRACTOR to the Director of Public Works of C ITY or his or her written designee (hereinafter r eferred to as "DPW"), and CONTRACTOR shall not attempt to reso lv e or adjust the discrepancy wi th out the decision of DPW, save o nly at its own ri sk and expense. Should there be any conflict between the terms of th is Agreement and th e bid o r proposal of CONTRACTOR, the n this Agreement shall control a nd nothing herein shall be considered as a n acceptance of the terms of the bid or proposa l w hich is in conflict herewith. 3 16-5 195/C ity Fu nd e d Co nstruction Contract.docx -revised 04/2016 447 3. COMPENSATION CITY agrees to pay and CONTRACTOR agrees to accept as full compensation for the faithful performance of this Agreement, subject to any additions or deductions made under the provisions of this Agreement or the Contract Documents, a sum not to exceed THREE HUNDRED NINTY-SEVEN THOUSAND TWO HUNDRED NINTY-Nl1' Dollars ($ ____ 3_9_7_,2_9_9 __ ~), as set forth in the Contract Documents, to be paid as provided in this Agreement. 4. COMMENCEMENT OF PROJECT CONTRACTOR agrees to commence the PROJECT within ten (10) ,,vorking days after the Notice To Proceed is issued and diligently prosecute the PROJECT to completion ,:vithin _______ N_I_N_T_Y _______ ( 90 ) consecutive Working days from the day the Notice to Proceed is issued by DPW, excluding delays provided for in this Agreement. 5. TIME OF THE ESSENCE The parties hereto recognize and agree that time is of the essence in the performance of this Agreement and each and every provision of the Contract Documents. CONTRACTOR shall prepare and obtain approval as required by the Contract Documents for all shop drmvings, details and samp les, and do all other things necessary and incidental to the prosecution of its 'Nork in conformance with the progress schedule set forth in the Contract Documents. CONTRACTOR shall coordinate its work with the work of all other contractors, subcontractors, and CITY forces working on the PROJECT in a manner that will facilitate the efficient completion of the PROJECT and in accordance with the terms and provisions of this Agreement. CITY shall have complete control of the premises on which the ,.vork is to be performed and shall have the right to decide the time and order in which the various portions of the work shall be performed and the priority of the work of other contractors, 4 16-5195/City Funded Construction Contract.docx -revised 04/2016 448 subcon tractors a nd C ITY fo rces and, in general , a ll matters concernin g the tim e ly and o rde rl y co nduct of the v,1ork of CONTRACTOR on the premi ses . 6. CHANGES CONTRACTOR s hall adhere s trictl y to the plan s a nd s pec ifi cat io ns set fort h in the Contract Do cume nt s unl ess a chang e there from is authorized in writ in g by DPW. CONTRACTOR agrees to make a n y and a ll changes, furnish material s and perform all work nec essa ry within th e scope of the PROJECT as DPW may require in w ritin g. U nd er no condition shall CONTRACTOR make any changes w ithout the prior v,1ritten order or acceptance of DPW , and CITY s hall not pay any extra charges mad e by CONTRACTOR th at have not been agreed upon in w ri t in g by DPW. When directe d to change the work, CONTRACTOR shall submi t immedia te ly to DPW a w ritten cost proposa l reflectin g the effect of the change . S h ou ld DPW not agree to suc h cost proposal , the wo rk sh all be perform ed according to the c ha n ges o rdered in writ in g by DPW and th e proper cost thereof s h a ll be negot iated by t he parties upon cost and pricing data su bmitted by CONTRACTOR; thereupon , CITY wi ll promptly iss ue an adjusted change o rd e r to CON TRACTOR and the contract pri ce w ill be adjusted upwa rd or dow nwa rd accordingly. 7. N OTICE TO PROCEED No work, service s, mater ia l, or e quipm ent s hall be p e rfo rm e d or furnished under th is Agreement unless and un til a Notice to Proceed has been give n to CONTRACTOR by CITY. CITY does not warrant that the work w ill b e avai lab le o n the d ate t he N ot ice to Proceed is issued. In the event of a de lay in co mm ence ment of the work clue to unavailabi li ty of the job si te, for a n y rea so n, re li ef to CONTRACTOR s h all be limi ted to a t im e extensio n eq ua l to the del ay due to s uc h unavailability. 5 I 6 -5 195/City Fu nd ed Co nstruct ion Co ntract.docx -rev ised 04/20 I 6 449 8. BONDS Only bond s iss ued by California admitted s ureties will be accepted. CONTRACTOR shall, prior to its performance of thi s Agreement, furnish the following two (2) bonds approved by the City Attorney: One in the amount of one hundred percent (100%) of the co ntract price to guarantee the CONTRACTOR's faithful performance of the work, and one in the amount of one hundred percent of the contract price to guarantee payment of all claims for labor and materials furnished. In addition, CONTRACTOR s hall submit to CITY a bond in th e amount of one hundred percent (I 00%) of the final contract price, including all change orders, to warrant such performance for a period of one (I) year after CITY's acceptance thereof within ten ( l 0) da ys of filing of the Notice of Comp letion. 9. WARRANTIES CONTRACTOR unconditionally guarantees all work done under this Agree ment including, but not limited to , any workmanship, in stallati o n, fabrication, material o r stru c tural facilities constructed. CONTRACTOR, within ten ( I 0) days after notice by CITY of any defect in the work, shall have the option to make appropriate repairs or replace the defective item or item s . Upon exp iration of s uch ten (I 0) day period, CITY may then make appropriate repair or replacem e nt at CONTRACTOR's ri sk a nd own cost and expense. 10 . INDEPENDENT CONTRACTOR It is understood and agreed that CONTRACTOR is, and s hall be, acting at all times hereunder as an independent c on tractor and not an employee of CITY. CONTRACTOR shall secure at its own cost and expense, and be res ponsible for any and all payment of all taxes, social security, state disability in surance compensation, unemployment compensation and oth e r payroll 6 I 6 -5 195/Ci ty Funded Construction Contrac t.docx -revised 04/2 016 450 d edu cti o ns for C O N TRA C T O R and its officers, agents and e mpl oyees a nd a ll bus iness li cense s, if a ny, in connecti o n w ith the PROJECT and /or th e services per fo rm ed he re und er. ll. LIQU ID A T E D DA MA GES/DELA Y S It is ag reed by the pa rti es hereto th at in case t he tota l work called for he re unde r is n ot in a ll parts a nd r e quir em e nts fin is hed or compl e ted w ithin t he numb er of c a le nda r days as set fo rth h e re in, d amage w ill be sus ta ined by CITY; a nd tha t it is, and wo uld be, impract ica l and extrem e ly diffi c u lt to ascerta in and d etermine the act ua l da mage w hi c h C ITY wo ul d s ustai n in th e even t o f a nd by rea so n of s uc h d e lay . It is, th er efo re , agreed th at CONTR ACTOR w ill pay to CITY , as liquid ate d dam ages a nd not as a p e na lty, t he s um of _______ F_IV_E_H_U_N_D_RE_•_D_D_O_L_L_A_R_S _______ ($ _ ________:_5....:...0..:....0 _~) per each ca lenda r d ay 's delay in co m p le ting the wo rk in excess of th e num ber of wo rk ing/c al en d ar d ays set forth h erei n, w hi c h re presen t s a re aso n ab le e nd eavor by th e pa rti es he r e to to est im ate a fa ir co mpensat io n for t he foreseeab le d a m ages CITY w o u ld sus ta in in t he event of a nd by reaso n o f s uc h d e lay; a nd C ONTRACTOR agrees to pay these d a m ages h e rein prov id ed, a nd f u rther agr ees t hat CITY may deduct the a m o unt th e reof fro m a ny m o ni e s du e o r th at ma y b eco me du e to CON T RACTOR he re under. C ONTRA CTOR wi ll be gra nte d an ex te nsio n of t im e a nd w ill not be a ssesse d d a m ages fo r a n y po rt ion of th e de lay in the co mplet io n of th e ,:vo rk du e to u nfo reseeab le causes b eyon d the co ntro l a nd ·w it ho ut t he fa u lt o r neg li ge nce o f CONT RACTOR, inc luding, bu t not li m ite d to, act s of God o r of th e pub li c e ne m y, fir e, floo d s , ep id e mi cs, qu ara nt ine rest ri c ti o ns, st ri kes, un s ui tab le weath e r, o r de lays of s ubcontracto rs d ue to s uc h ca uses. CON TRACTOR s ha ll , within fiftee n (1 5) days fro m th e begi nnin g o f any s uc h de lay (un less DP W s h a ll gra nt a furt her pe ri od of tim e), noti fy DPW in wr it ing of th e cause of t he 7 16-5 19 5/C ity F unded Co nst ru ct io n Co ntract.docx -rev ised 04/2 0 16 451 delay and CITY shall extend the time for completing the work if, in its judgment, the findings of fact thereon justify the delay; and the decision of DPW shall be conclusive on the parties hereto. Should CONTRACTOR be delayed in the prosecution or completion of the work by the act, neglect or default of CITY, or should CONTRACTOR be de layed by waiting for materials required by this Agreement to be furnished by CITY, or by damage caused by fire or other casualty at the job site for ,-vhich CONTRACTOR is not responsible, or by th e combined action of the workers, in no way caused by or resulting from default or collusion on the part of CONTRACTOR, or in the event of a lockout by CITY, then the time herein fixed for the completion of the work shall be extended by the number of days CONTRACTOR has thus been delayed, but no allowance o r extension s hall be made unless a claim th erefor is presented in writing to CITY within fifteen (15) days of the commencement of s uch delay. No claims for additional compensation or damages for delays, irrespective of the cause thereof, and including without limitation the furnishing of materials by CITY or del ays by other contractors or subcontractors will be allowed and an extension of time for completion shall be the so le remedy of CONTRACTOR. 12 . DEMANDS FOR ADDITIONAL TIME OR MONEY. A. Definitions. (1) "Change Order" means a document signed by the CONTRACTOR and CITY which authorizes an addition, deletion or revision in the work, or an adjustment in the Com pensation under Section 3, or the Completion Time specified at Sect ion 4. (2) "Demand " means a written demand for a Change Order by the CONTRACTOR for any of the following: (a) A time extension; 8 16-5195/City Funded Construction Contract.docx -revised 04/2016 452 (b) Payment of mo ney o r damages arising from work d one by , or on behalf of, the CONTRACTO R purs ua nt to this Agreement and paym en t of w hich is not express ly permitted pursuant to Section 3 of this Agr eemen t ; (c) Payment of a n amount the CITY di sp utes; (d) Any di sputes a nd ot h e r m a tters re latin g to the acceptab ility of the work performed or the interpretation of the Contract D ocumen ts; (e) A r equ est for a time extens ion o r additional payment ba sed up on differin g s ite condit io ns, s uch as s ubsu rface or latent phys ica l co nditi o ns at th e job s ite diffe rin g materially from those indicated in thi s Agreement or t he Con tract D ocuments, o r unknown physical conditi o ns at the job s ite, of an unu s ual n ature, differing materia lly from those o rd in a ri ly enco unte red a nd genera ll y recogni zed as inherent to work of th e PROJ ECT; o r (f) A request for a tim e extens io n or additi o na l payment based u po n acts of ne g lect by C ITY or due to fire s, floods , labor d is putes, ep id em ics, abnormal weather co nditi o ns o r acts of God. B. A Demand fo r a time extension o r payment of m o ney o r d a m ages m ay o nl y be gra nted by a C h ange Order . C. No C hange Order ma y be gra nte d except w he re t he Contrac tor has submi tted a Demand to th e DPW (or hi s or her written desi g nee). A ll Demands s ha ll be s ubmitted p ro mptl y, but in no even t late r than thirty (30) days after the occurrence of the event g ivin g ri se to the Demand. T he De ma nd sha ll be in wr itin g a nd in c lude all d ocume nts necessary to s u bsta nti ate the Demand. The DPW s h a ll act on t he De m a nd within fift een (15) days after recei pt, includin g by reques tin g additional information from the CONTRACTOR to determine whether to approve the C ha n ge Order the Dema nd seeks. The DPW s hall act on the Demand ,vi thin fift een ( 15) days 9 16-5 195/C ity Funded Co nstruction Contract.docx -rev ised 0 4/2 016 453 after receipt of the additional information or within a period of time no greater than the time the CONTRACTOR took to produce the add itiona l information requested, wh ichever is greater. D. Notwithstanding the thirty (30) days to submit a Demand under Subparagraph C, 111 the case of differing or unknown site co nditions, imm ediately upon e n counter in g the conditions , CONTRACTOR shall notify the DPW in writin g of the conditions, so that the C ITY may promptly investigate the conditions. E. If the CONTRACTOR disputes the DPW's written response on the Demand, or the CITY fa il s to respond withi n the time prescribed , th e CONTRACTOR may so notify the City Eng ineer, in w ri ting, either within fifteen ( 15) clays of receipt of the City Engineer's response or within fiftee n (15) days of the DPW's fai lu re to respond within the time prescribed , respectively, and request an in forma l conference to meet and confer for settlement of the Demand. Upon the CONTRACTOR's request, the DPW shall sch edule a meet and confer conferen ce within thirty (30) days to seek to resolve. F. CITY and CONTRACTOR shall execute appropriate Change Orders covering changes to the time or price by executing the Change Order by mutua l agreement. If the CITY and CONTRACTOR are unable to reach a mutua l agreement, then the City Engineer shall issue a written decision on the c l a im within a reasonable time. G. Following the meet and confer conference, if t he Demand remains 111 dispute, the CONTRACTOR may file a c la im with the City as provided in Chapter I (commencing ,v ith Section 900) and C h apter 2 (commenc ing with Section 910) of Part 3 of Division 3.6 of Ti t le I of th e Government Code. For purposes of those provisions, the running of t he per iod of time with in wh ic h a cla im must be filed shall be tolled from the time the CONTRACTOR submits h is 10 16-5 195/City Funded Construction Contract.docx -revised 04/2016 454 or her Demand until the Demand is denied as a result of th e meet and confer process, in c luding any period ohime utilized by the meet and confer process . 13. VARIATIONS IN ESTIMATED QUANTITIES The quantiti es li sted in the bid sc hedule w ill not govern final payme nt. Payment to CONTRACTOR will be made only for the actual qua ntities of contract item s used in construction of the PROJECT, in accordance with the plans and spec ifi ca tion s . Upon completion of the PROJECT, if the actual quantities used are e ither more than or le ss than the quantities listed in the bid schedule, the bid price shall prevai l s ubj ect to the provi s io ns o f this Section. DPW may, at its so le di sc retion, when warranted by the fact s and circumstances, order an equitable adjustment, upwards o r do w nward s, in payment to CONTRACTOR ,v h e re the actual quantities use d in construction of the PROJECT are in variation to th e quantiti es li sted in th e bid schedule. No claim by CONTRACTOR for a n e quita ble adjustment in price or t im e fo r completion s hall be all owe d if asserted after final pay ment under this A g reement. If the quantity variation is s uch as to cause an increase in th e time necessary for completion, DPW s hall ascertain the fact s and circumstances and make such adjustment for extending the completion date as in its so le judg ment the findings ,,varrant. 14. PRO GRESS PAYMENTS Each m onth DPW will make an estimate in writing of th e work pe rformed b y CONTRACTOR and t h e value thereof. From each prog ress esti mate, fi ve percent (5%) w ill b e deduc ted and retain ed by CITY and the remainder o f the prog ress est imate, less the amou nt of all previous p ay ments s ince commencement of the work, will be paid to CONTRACTOR. Whe n CONTRACTOR h as, in the judgment of DPW, faithfully executed fifty percent (50%) o r more of the va lue of t he work as determined from the bid schedule, and if DPW finds that satisfactory progress ha s been and is be ing made, CONTRACTOR ma y be paid suc h I I 16-5195/C ity Funded Constru c tion Cont ra ct.docx -rev ised 04/2016 455 sum as will bring the payments of each month up to one hundred percent ( I 00%) of the value of the work completed since the commencement of the PROJECT, as determined in its sole discretion by DPW, less all previous payments and less all previous retained amounts. CITY's final payment to CONTRACTOR, if unencumbered, or any part thereof unencumbered, shall be made thirty-five (35) days after the acceptance of the work and the filing of a Notice of Completion by CITY. Provided, however, that in the event of a dispute benveen CITY and CONTRACTOR, CITY may withhold from the final payment an a mount not to exceed 150 percent of the value of any disputed amount of work. Payments shall be made on demands drawn in the manner r eq uired by law, each payment to be accompanied by a certificate signed by DPW , affirming that the work for which payment is demanded has been performed in accordance with the term s of the Agreement and that the amount stated in the certificate is due under the terms of the Agreement. Partial payments on the contract price sha ll not be considered as an acceptance of any part of the work. 15. WITHHELD CONTRACT FUNDS, SUBSTITUTION OF SECURITIES At the requ est and at the so le cost and expense of CONTRACTOR, who s hall retain beneficial ownership and receive interest, if any thereon, CITY s hall permit the substitution and deposit therewith of securities equivalent to the amount of any monies withheld by CITY to ensure performance und er the term s of this Agreement. 16. AFFIDAVITS OF SATISFACTION OF CLA IMS After th e completion of the work contemplated by this Agreement, CONTRACTOR shall fil e with DPW its affidavit stat ing th at all workers and persons emp loyed, all firms s upplyin g materials and a ll subcontrac tors v,1orking upon the PROJECT have been p a id in full and that there are no claims outstanding against the PROJECT fo r ei th er lab o r or material , except certain item s, if any, to be set forth in CONTRACTOR's affidavit covering di sputed claims, 12 16 -5 195/City funded Const ru ctio n Con tract.clocx -revised 04/2016 456 or items in connection with Notices to Withhold, 'vvhich have been filed under the provisions of the statutes of the State of Ca li fornia . 17. WAIVEROFCLAIMS The acceptance by CONTRACTOR of the payment of the final certificate shal l constitute a waiver of al I c laim s against CITY under or arising out of this Agreement. A. The CITY has ascertained from the Director of Indu strial Relations of the State of California the general prevai lin g rate of per diem wages and the general prevailing rate for legal holiday and overtime ,:-.1ork in the locality in which the work is to be performed for each craft or type of work needed to execute this Agreement, and the same has been set forth by resolution on fi le in the office of the City Clerk of CITY. CONTRACTOR and any subcontractor under it shall pay not less than said prevailing wage rates to all workers employed on this public works Agreement, as required by California Labor Code Sections 1771 and 1774. Jn accordance with the provisions of Section 3700 of the California Labor Code, CONTRACTOR agrees to secure payment of compensation to every emp loyee. B. Pursuant to this Agreement and in accordance with Section 1774 and 1775 of the California Labor Code, CONTRACTOR sha l l, as penalty to CITY, forfeit twenty-five dollars ($25) for each ca lendar day or portion thereof for each worker paid (either by CONTRACTOR or any of its subcontracto rs) less than the prevailing wage rate established for that particular craft or type of work. 18. CALIFORNIA PREVAILING WAGE LAW A. The CITY has ascertained from the Director of Industrial Relations of the State of California the general prevail ing rate of per diem wages and the genera l prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Agreement, and the same has been set forth by 13 16-5 195 /City Funded Con struction Contract.do cx -revi sed 04/2 016 457 resolution on file in the office of the City Clerk of CITY. CONTRACTOR and any subcontractor under it shall pay not less than said prevailing wage rates lo all workers employed on this public works Agreement, as required by California Labor Code Sections 1771 and 1774. In accordance with the provisions of Section 3700 of the California Labor Code, CONTRACTOR agrees to secure payment of compensation to every employee. B. Pursuant to this Agreement and in accordance with Section 1774 and 1775 of the California Labor Code, CONTRACTOR shall, as penalty to CITY, forfeit twenty-five dollars ($25) for each calendar day or portion thereof for each worker paid (either by CONTRACTOR or any of its subcontractors) less than the prevailing wage rate established for that particular craft or type of work. 19. CALIFORNIA EIGHT-HOUR LAW A. California Labor Code , Sections 1810 et seq, shall apply to the performance of this Agreement; thereunder, not more than eight (8) hours shall constitute one day's work and CONTRACTOR and each subcontractor employed by its hereunder, shall not require more than ei g ht (8) hours of labor per day or forty (40) hours per week from any one person employed by it hereunder, except as stipulated in California Labor Code Section 1815. CONTRACTOR and each subcontractor employed by it hereunder shall , in accordance with California Labor Code Section 1812, keep an accurate record, open to inspection at all reasonable hours, showing the name and actual hours worked each calendar day and each calendar week by each worker employed in connection with the PROJECT. B. Pursuant lo this Agreement and in accordance with California Labor Code Section 1813, CONTRACT OR shall, as a p e nalty to CITY , forfeit twenty-five dollars ($25) for e ach worker employed hereunder by CONTRACTOR or any subcontractor for each calendar day durin g which such worker is required or permitted to work more than eight (8) hours in any one 14 16-5 195/City funded C onstruction Contract.do cx -revised 04/20 I 6 458 (I) ca lendar day or forty ( 40) hou rs in any one (I) ca lendar week in v iolat ion of Ca li fornia Labor Code Section 1815. 20. PAYMENT OF TRAVEL AND SUBSISTENCE ALLOWANCE Sect ion 1773.8 of the California Labor Code, regarding the pa y ment of travel and subsistence a llowance is app li cab le to thi s PROJECT. 2 1. EMPLOYMENT OF APPRENTICES Section 1777.5 of t he Ca lifornia Labor Code, regard in g the emp loyment of appr ent ices is appli ca ble to this PROJECT. 22. PAYROLL RECORDS CONTRACTOR agrees to keep accurate payro ll record show in g t he name , address, soc ial sec urity number, wo rk c lass ifi cat ion, st raight time and overtime hours worked each day a nd week, and the actu a l per diem wages paid to each journeym a n, appren tice or ,;,,1o rker employed by it in connecti on with the PROJECT and agrees to require each of its su bcontractors t o do the same. CONTRACTOR furth e r agrees that its payroll record s and those of its subcontractors, if any, s hall b e availab le at al I reaso nable times to t he CITY, and the e mployee o r hi s representative, and the Division of Labor Stand a rd s Enfo rcement and the D iv is io n of Appren ticesh ip Stand ards, and to comply w ith a ll of the provisions of Ca li fornia Labor Code Section 1776, in genera l. 23 . JNDEMNIFICA TION , DEFENSE, HOLD HARMLESS CONTRACTOR hereby agrees to protect, defend, ind e mnify and hold harmless C ITY , its officers, e lected or appo in ted o fficial s, employees , agents , and vo lunteers from and against any a nd a ll c la ims , d a ma ges, lo sses, expenses, judgments, demands, defense costs, and consequential damage o r li a bility of any kind or nature, however ca used, in c ludi ng th ose res ul t ing from de ath o r injury to CONTRACTOR's em p loyees a nd damage to CONTRACTOR's property , 15 16-5 195/City Funded Const ru ction Contract.docx - revised 04/2016 459 ansmg directly o r indirectly o ut of the obl igations or operat ions herein undertake n by CONTRACTOR, ca used in whole or in part by a ny negligent act or omissio n of the CONTRACTOR, any subco ntractors, anyone directly or indirect ly emp loyed by any of th em or anyone for whose acts any of them may be liab le, including but not limited to concurrent act ive o r passive neg ligence, except where caused by the active neg li gence, sole neg li gence, or w ill ful misconduct of the C ITY, its officers , e lected or appo inted officia ls, emp loyees , agents , and volunteers . CONTRACTOR will conduct al l defe nse at its so le cost and expense and CITY shall a pprove select ion of CONTRACTOR's counsel. Thi s indemnity sha ll app ly to al l c la ims and li ab ility rega rdl ess of whet her any insurance p o li cies are app li cable. The policy limits do n ot act as a limitation upon the a m ou nt of ind emni fi cat io n to be provided by CON TRACTOR. 24. WORKERS ' C OMPENSATION AN D EMPLOYER'S LIABILITY INSURANCE Purs uant to Ca li forn ia Labor Code Sect ion 1861 , CONTRACTOR acknowledges aware ness of Secti on 3700 e t seq. of t hi s Co de, w hic h requires eve ry emp loyer to be ins ured agai nst li ability fo r workers' compens a ti on; CONTRACTOR covena nts that it w ill com ply w ith s uch provisio ns pri or to commencing pe rformance of the ,-vork hereunder. CONTRA CTO R sh a ll o btain a nd furni s h to C ity worke rs' compensation and e mployer's liabil ity ins urance in an am ou nt of not less t han the State statutory limits . CONTRACT OR s hall require a ll s u bcontracto rs to provide such workers' co m pensation a nd e mployer's liability in s urance for a ll of the subcontra cto rs ' employees. CONTRA CTO R s hall furni sh to CITY a certificate of waive r of s u brogatio n under the terms of the wo rke rs' compensation and empl oye r's li ab ility in su rance a nd CON TRACTOR s hall s imil a rl y re quire a ll s ub co ntractors to waive subrogat io n. 16 16-5 195/C ity Fu nd e d Constru c tio n Cont rac t.docx -revi sed 04/20 16 460 25. INSURANCE In addition to the workers' compensati o n and employer's liabilit y in s urance and CONTRACTOR's covenant to defend , ho ld harmless and indemnify CITY, CONTRAC TOR s hall obta in and furnish to CITY, a policy of ge neral public liability insurance , including motor ve hicl e coverage covering the PROJECT . This policy shall indemnify CONTRACTOR, its officers, e mpl oyees a nd agents ,.v hil e acting within the scope of their duties, aga in st any and all claims a ri s ing o ut or in connection with the PROJECT , and shall prov ide coverage in not less than the fol lm-ving amount: co mb in e d single limit bodily injury and property d a ma ge, inc lu din g produ c ts/co mpleted operations liability and b lanket contractual liability, of One Million Do llars ($1,000,000) per occurrence. If coverage is provided under a form which includes a d esignated gen e ral agg rega te limi t , the aggregate limit must be n o less than One Mi lli on Dollars ($1,000,00 0) fo r this PROJECT. This poli cy shall name C ITY, its offic ers, el ected o r appointed officials, employees, agents, and volunteers (the "Additiona ll y In su red Part ie s") as Additiona l In sured s, and shall spec ificall y provide that any o ther insurance coverage w hich may b e app li cab le to the PROJECT s ha ll be de emed excess coverage and that CONTRACTOR's ins urance s hall be primary and non-con tributory w ith a ny o the r va li d and co ll ect ible insurance or se lf-in sura nce available to t he Additionally In s ured Parties . A ny ava ilabl e insu ran ce proceeds in excess of the minimum coverage amount s pec ified herein shall b e available to the Additionally In s ured Parties. All coverage avai lab le to CONTRA CTOR shal l a lso b e availab le to the Additionally Insme d Parties . Under no circumstances s hall sa id above -menti o ned in surance contain a se lf-in su re d retenti o n w ithout the express written consent of CITY; howeve r an in s uran ce p olicy "d educt ible " of Five T housand Do ll ars ($5 ,000 .00) is permitted. CONTRACTOR sha ll be responsi bl e for causin g a ll Su bcontra ctors to ma intain th e sa m e types and limits o f ins urance covera ge as that required of CONTRACTOR by thi s Agreement. 17 I 6-5 I 95 /Ci ty Fund e d Construction Contract.docx -revised 04/2016 461 26. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMEN TS Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY certificates of insurance s ubject to approval of the City Attorney evidencing the foregoing in sura nce coverages as required by thi s Agreement; the certificates sha ll: 1. Provide the name and policy number of each carrier and policy; 2. State that the policy is currently in force; and 3. Promise to provide that s uch pol icies will not be canceled o r modified without thirty (30) days' prior written notice of CITY . CONTRACTOR shall maintain the foregoing insurance coverages in force unt il the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverages s hall not d erogate from the CONTRACTOR's defense, h o ld harmless and indemnification obligations as set forth under thi s Agreement. CITY o r its representative sha ll a t a ll times have the right to demand the or igi nal or a copy of all the policies of in sura nce. CONTRACTOR s hall pay, in a prompt and timely manner, the premiums on all ins urance hereinabove required. CONTRACTOR shall provide a separate copy of the add iti o nal insured endorsement to each of CONTRACTOR's in surance policies, nam ing CITY, its officers , e lected and appointed officia ls, empl oyees, agents and volunteers as Additional Insur eds, to the City Attorney for approval prior to any payment h ereunder. 27. NOTICE OF THIRD PARTY CLAIM Pursuant to Public Co ntracts Code §9202, C ITY s hall provide not ice to CONTRACTOR ofreceipt of any c laim filed with CITY or a co urt of competent jurisdiction which arises out of performance of this agreement within ten ( I 0) clays of receipt of such c laim or cla ims . 18 16-5 195/C ity Fu nd ed Construction Co ntract.docx -revised 04/2016 462 28. DEFAULT AND TERMINATION If CONTRACTOR fails or refuses to prosecute the work hereunder with diligence, or fails to complete the work within the time specified, or is adjudged bankrupt or makes an assignment for the benefit of creditors or becomes insolvent, or violates any provision of this Agreement or the Contract Documents, CITY may give CONTRACTOR notice in writing of its intention to terminate this Agreement. Unless the violation is cured within ten (10) days after such Notice of Intention has been served on CONTRACTOR, CITY may, without prejudice to any other remedy it may have, terminate this Agreement upon the expiration of that time. Upon such default by CONTRACTOR, CITY may elect not to terminate this Agreement; in such event CITY may make good the deficiency in which the default consists and deduct the resulting costs from the progress payments then or to become due to CONTRACTOR. If it is subsequently determined by a court of competent jurisdiction that CITY's termination of this Agreement under this Section was wrongful, such termination s hall be converted to a termination for convenience under Section 29 and any damages shall be assessed as set forth in Section 29. 29. TERMINATION FOR CONVENIENCE CITY may terminate this Agreement for convenience at any time with or without cause, and whether or not PROJ E CT is fully complete upon seven (7) calendar days written notice to CONTRACTOR. In the event of termination , under this S ection CITY shall pay CONTRACTOR for value of \.Vork in place on the PROJECT through the termination period less all such payments already made. In case of s uch termination for convenience, the CONTRACTOR shall be entitled to receive payment for work executed, and costs incurred by reason of such termination. In no event shall CONTRACTOR be entitled to recover overhead, profit or CONTRACTOR's fee on work not performed. Such payment by CITY shall be CONTRACTOR's 19 16-5195/City Funded Con s tru ction Contract.docx -revised 04/2 016 463 sole and exclusive remedy for termination by CITY for its convenience and CITY shall have no further ob li gation to CONTRACTOR. 30. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONTRACTOR agrees that upon comp letion of the work to be performed hereunder, or upon expiration or earlier termination of this Agreement, all original plans, specifications, drawings, reports , calcu lations, maps and other documents pertaining to thi s Agreement shall be delivered to CITY and become its sole property at no further cost. 3 1. NONASSIGNABILITY CONTRACTOR shall not sell, assign, transfer, convey or encumber this Agreement, or any part hereof, or any right or duty created herein , without the prior written consent of CITY and the surety . 32. CITY EMPLOYEES AND OFFICIALS CONTRACTOR shall employ no CITY officia l nor any regular CITY employee in the work performed purs uant to this Agreement. No officer or employee of CITY sha ll have any financial in terest in this Agreement in violation of the California Government Code. 33 . STOP NOTICES; RECOVERY OF ADMINISTRATIVE COSTS CITY sha ll be entitled to al l reaso nable administrative costs and necessa ry disbursements arising out of the processing of Stop Notices, Notices to Withhold , or any similar legal document. This obligation shall be provided for in the labor and materials payment bond required of CONTRACTOR. CITY may charge an administrative fee of One Hundred Dollars ($100) for every Stop Notice filed in excess of two (2), regardless of whether o r not C ITY is named in an action to enforce s u ch stop no tice s. CITY may set off any unreimbursed cost or exp ense so incurred against any sum or s um s owed by CITY to CONTRACTOR und er this Agreement. 20 16-5 195/C ity Funded Cons truc tion Con tract.d ocx -rev ised 04/2016 464 34 . NOTICES Any notices, certificates , or other communications hereunder shall be given either by personal delivery to CONTRACTOR's agent (as designated in Section I hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sea led envelope, postage prepa id, and depositing the same in the United States Postal Service, to the addresses specified below; provided that CITY and CONTRACTOR may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, re putable overnight carrier or U.S. certified mail-return receipt requested: TO CITY: City of Hunt in gton Beach A TIN: Director of 2000 Main Street , Public Works Huntington Beach , CA 92648 35. SECTION HEADINGS TO CONTRACTOR: R.E. SCHULTZ CONSTRUCTION, INC. A TIN: Richard Schultz 1767 North Batavia Street Orange, CA, 92865 The titles , captions, section, paragraph and subject headings, and descriptive phrases at the beginn in g of the various sections in this Agreement are mere ly descriptive and are included sole ly for convenience of reference only and are not representat ive of ma ters included or excluded from such provisions, and do not interpret, define, limit or describe , or con strue the intent of th e part ies or affect th e construction or interpretation of any provis ion of this Agreement. 2 1 16-5195/City runded Co nstru ction Contract.docx -revised 04/2016 465 36. IMMIGRATION CONTRACTOR shall be respon sib le for full compliance with the immigration and naturali zat ion laws of th e Un ited States and shall, in particular , comply with the provisions of United States Code Section 13 24a regarding employment verification. 37. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liabl e for payment of any subcontractor work involving legal se rvi ces, and that s uch legal se r v ices are expressly o utsi de the scope of se rvices contemplated h ereunde r. CONTRACTOR understand s that pursuant t o Huntington Beach City Charter Section 309, the City Attorney is the excl usive lega l counsel for CITY; and CITY s hall not be liable for payment of any lega l se r v ice s expenses incurred by CONTRACTOR. 38. ATTORNEY'S FEES In th e event su it is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement o r to secure the performance hereof, each party shall bear its own attorney's fees, suc h that the prevailing party shall not be entit led to recover its attorney's fees from the non-prevailing party. 39 . INTERPRETATION OF THIS AGREEJvIENT The language of all parts of this Agreement sha ll in all cases be const rued as a v,1l10le, accordin g to its fair meaning, and not str ictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforc eab le, void, ill egal o r invalid , su ch holding s hall not invalidate or affect the remaining covenants and provis ions of this Agreement. No covenant or provision s hal l be deemed dependent upon any other unl ess so expressly provided here . As used in this Agreement, th e masculine o r neuter ge nd e r and singu lar or plural number sha ll be deemed to include the other whenever the 22 16-5 195/C ity Funded Con struction Contract.docx -revised 04/2 016 466 context so indicates or requires. Nothing contained herein shall be construed so as to require the co mmi ssio n of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necess ary to brin g it within the requireme nts of t he law. 40. GOVERNING LAW This Agreement shall be governed and construed in accorda nce with the laws of the S tat e of Ca lifornia. 41. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and s igned in counterparts as duplicate originals, each of which so executed shall, irrespect ive of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an o ri g in a l instrum ent as against any party who has signed it . 42. CONSENT Where CITY's consent/approval 1s required under this Agreement, its co nsent/ap prova l fo r o ne transaction o r event sh a ll not be deemed to be consent/approval to any subseq uent occmrence of the same or any other transaction or event. 43. SURVIVAL Te rms and conditions of this Agreement, v,,hich by their sense and context s urv ive the expirat ion o r termination of t his Agreement s hall so sur vive. 44. MODIFICATION No waiver or m odificat io n of any language in thi s Agreement sha ll be valid unless in writ ing and duly executed by both parties. 23 16-5 195/City Fund ed Construction Contract.docx -revised 04/2016 467 45. SIGNATORIES Eac h undersigned repr esent s and warrants th at its signature hereinbelow has the powe r, authority and r ight to bind their respect ive parties to each of the terms of thi s Agreement , and shall ind e mnify CITY full y for any injuries or d amages to CITY in the event that suc h authority or power is no t, in fact, held by th e s ig natory or is w ithdraw n. 46 . ENTIRETY T he parties ack n ow ledge and agree that they are entering into thi s Ag reement freely and voluntarily following extensive arm 's le ngt h n egot iatio n, a nd th at each has had the opportunity to co ns ul t w ith lega l counsel prior to executin g this Agreement. The parti es a lso acknowledge a nd agree that no re prese ntation s, inducements , promi ses, agreements or warranties, oral or oth er w ise, have been made b y that party o r anyone acting o n that party's b ehalf, w hi c h a re not embodied in this Agreement, and that that party has not executed t hi s Agreement in re lian ce o n any representation, inducem e nt , promi se, agreement, warra nty, fact or c ircum sta n ce not express ly set forth in this Agreement. T hi s Agreement, and th e a ttac hed Exhibit "A", conta in the entire agreem e nt b en:veen the parties resp ect in g th e subj ect m atter o f this Agreement , and s upersede all prior understandings and agreements whether ora l o r in w riting between the parties res pectin g the subj ect m a tter hereof. 24 16 -5 195/C ity Funded Cons trnction Con tract.do cx -rev ise d 04/2016 468 IN WITNESS WHEREOF, the parties hereto have caused th is Agreeme nt to be executed by and through their a utho ri zed officers o n ________ ,. 2 0 __ CONTRACTOR: By:---------------­ Rich ar d Schultz (print nam e) ITS: Cha irm an/ Pres ide nt / Vice-President (circle one) AND By: _______________ _ CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Cal iforn ia Mayor City C lerk (p rint name) REVIEWED AND APPROVED: ITS: Secretary / C hi ef Financial Officer / Asst. Sec retary / Treasurer (circle one) City Manager APPROVED AS TO FORM: 25 16-5195/C ity Fund ed Co nstruct io n Contract.docx -rev ise d 04/2016 C ity Attor ney ~ 469 IN WITNESS WHEREOF, the parties hereto have caused thi s Agreement to be executed by and throu gh their authorized officers on ________ , 20 __ ITS: Chairman/ President/ Vice-President (circle one) AND By: _______________ _ CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk INITIATED AND APPROVED: Director of Public Works (print name) REVIEWED AND APPROVED: ITS: Secretary / Chief Finan c ial Officer / Asst. Secretary/ Treasurer (circle o ne) City Manager APPROVED AS TO FORM: 25 I6-5 195/C ily rundcd Co nslruclion Conlract.docx -re v ised 04/20 16 City Attorney ~ Drew Park and Robinwood Park Playground Improvements CC-1859 & CC-1823 July 21, 2026 City Council Meeting 470 Project Overview •In the CIP FY 2025/26 List of Projects, the playgrounds for both Drew Park, CC1859 and Robinwood Park, CC1823, were approved for replacement. These parks are also both included in the Park Playground & Equipment Replacement List. •The proposed project for Drew Park will include, the removal and replacement of the play structure, removal of the swings and the installation of a new swing in a new location, and poured-in-place surfacing in both the play area and swing area. •The proposed project for Robinwood Park will include, the removal and replacement of both play structures, partial poured- in-place surfacing, and sand replenishment for the adventure portion of the play structure. 471 Analysis •The playgrounds offer varying warranty packages ranging from 5-year to lifetime specific part warranties, and a 1-year Maintenance Bond. •Staff reached out to local, qualified, and licensed contractors, advertised the project in the Huntington Beach Wave, and advertised and managed proposals on PlanetBids. A job walkthrough was publicly advertised for June 2, 2026, with twenty (20) firms in attendance. 472 Funding $ 397,298.35 $ 39,729.84 $ 5,000.00 $ 442,028.19 $ 291,470.11 $ 265,214.38 $ 556,684.49 Construction Costs •R.E. Schultz Construction, Inc. Bid: •Construction Contingency (10%) •Supplemental Costs: Current Funding •Park Improvements (226) Fund: •Park Development (228) Fund: 473 Questions? 474 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-599 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Chau Vu, Director of Public Works PREPARED BY:Frank Drevdahl, Capital Projects Administrator Subject: Accept Lowest Responsive and Responsible Bid and Award a Construction Contract to Universal Coatings, Inc. in the amount of $97,000 for the Oak View Branch Library Roof Restoration, CC1912 Statement of Issue: Bids for Oak View Branch Library Roof Restoration, CC1912 were publicly opened on June 16, 2026. After reviewing all bid submissions, staff recommends that the City Council award the construction contract to Universal Coatings, Inc., the lowest responsive and responsible bidder in the amount of $97,000. Financial Impact: The total project cost for the Oak View Branch Library Roof Restoration is $107,790.35, as itemized below: Item Amount .00 .00 Total Construction Cost:$107,790.35 Funding for this project is available in the Infrastructure Fund, Account No. 31440013 .82200. Recommended Action: A) Accept the lowest responsive and responsible bid submitted by Universal Coatings, Inc. in the amount of $97,000; and, B) Authorize the Director of Public Works to approve construction change orders within the approved City of Huntington Beach Printed on 7/15/2026Page 1 of 3 475 I I I ' ' I I I 1 J File #:26-599 MEETING DATE:7/21/2026 Alternative Action(s): Reject all bids and provide staff with direction. Analysis: The Oak View Branch Library is a temporary facility consisting of nine portable units located on Oak View Elementary School property. Replacement of the Library’s four heat pump package units was scheduled for FY 2025 ‑ 2026 but deferred due to leaks and deterioration in the existing roof system. The proposed project includes removal of the existing roof coating, sealants, deteriorated wood, and peeling paint; installation of new wood where needed; full recoating of the 5,400 square foot roof; installation of new gutters; rerouting of condensation lines; and application of new sealants to create a cohesive, long ‑ lasting system. Completion of the roof restoration will allow staff to proceed with the planned installation of new HVAC units. The roof recoating system provides a 10 ‑ year installation warranty, a 2 ‑ year manufacturer inspection warranty, and a 1 ‑ year maintenance bond. Staff conducted targeted outreach to qualified, licensed roofing contractors, advertised in the Huntington Beach Wave, and managed the bidding process through PlanetBids. A publicly advertised job walkthrough was held on May 26, 2026, with eighteen firms in attendance. The engineer’s estimate for the project was $110,000. Bids were publicly opened on June 16, 2026. Staff received eight (8) bids ranging from $97,000 to $174,670.40. Bidder’s Name Submitted and Verified Bid Universal Coatings, Inc. submitted the lowest responsive and responsible bid in the amount of $97,000. Staff reviewed the bid submission, contractor qualifications, licensing, and references and determined that Universal Coatings, Inc. is capable of successfully performing the work required under the contract. Therefore, staff recommends awarding a construction contract to Universal Coatings, Inc. in the amount of $97,000. Staff also recommends a construction contingency of ten percent (10%) to address unforeseen field conditions and necessary modifications that may be City of Huntington Beach Printed on 7/15/2026Page 2 of 3 476 File #:26-599 MEETING DATE:7/21/2026 Environmental Status: This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1 - Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the project consists of repair and restoration of an existing public facility involving negligible or no expansion of the existing use. Strategic Plan Goal: Non-Applicable Attachment(s): 1. RCA Contract Agreement Summary 2. Construction Contract City of Huntington Beach Printed on 7/15/2026Page 3 of 3 477 RCA Contract Agreement Summary CITY OF HUNTINGTON BEACH VENDOR NAME + TYPE OF SERVICE CONTRACT INFORMATION GENERAL INFORMATION TYPE OF AGREEMENT (Professional Services, Service Agreement) PROCUREMENT SCOPE OF WORK TOTAL COMPENSATION TERM OF CONTRACT/AGREEMENT OTHER: Bonds, Special Contract Terms, Emergency DATE PRESENTED REQUESTING DEPARTMENT STAFF CONTACT(S)INSURANCE STATUS July 21, 2026 Pending Public Works Frank Drevdahl, Capital Projects Administrator $97,000 60 Working Days (from NTP) Universal Coatings, Inc. - Oak View Branch Library Roof Restoration, CC1912 Construction Contract Notice of Inviting Bids, Formal Procurement (PlanetBids and Local Paper) Roof restoration which includes HVAC wind screens, some siding, and painting. Bid Bond, Performance Bond, Payment Bond, Maintenance Bond. 60 Working Days from Notice to Proceed contract terms. Standard Construction Contract. 478 LO CITY OF rD HUNTINGTON BEACH 479 CITY FUNDED CONSTRUCTION CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND UNIVERSAL COATINGS, INC. FOR OAKVIEW BRANCH LIBRARY ROOF RESTORATION, CC1912 THIS AGREEMENT ("Agreement") is made and e ntered into by and between the C ity of Huntin gton Beach , a municipal corporation of the State o f Ca li forn ia, hereinafter referred to as "CITY," and UNIVERSAL COATINGS, INC. , a ----------------------'----------- ______________ corporation, herei nafter referred to as "CONTRACTOR." WHEREAS, CITY has so licited bids for a public works project, hereinafter referre d to as "P R.OJ ECT," more fu ll y described as -------"O'--'-A=I=('-V-=IE=i --'-W-'--=B-=RA=-=N--'-C==H=L=l=B=RA=R=-ccY---'R=-=0 ---=0=F'-• __ RESTORATION, CC1912 in the City of Huntin gto n Beach; and ~~~~~-~~~~----------- CONTR ACTOR has been selected to perform said services, NOW, THEREFORE, in consideration of the promises and ag reements hereinafte r made a nd exc ha nged the parties covenant and agree as follows: 1. STATEMENT or WORK; ACCEPTANCE OF RISK CONTRACTOR s hall complete and co ns truct the PROJECT pursuant to this Agreement and the Contract Documents (as here inafter defined) and furnish , at its own cost and ex pense, all labo r, plans, tool s, equipment, s upplies, tran s portatio n, ut ili ties and a ll other item s, serv ices and facilities necessa ry to complete and constrnct the PROJECT in a good and workmanlike manner. CON TRACTOR ag rees to fully assume the risk of all loss or damage arising out of th e nature of the PROJ ECT, during its progress o r prior to acceptance by CITY, from the action o f the e le men ts, from any unforeseen difficulties which may arise o r be encountered in th e 16-5 195/Ci ty Funded Construction Co ntrnct.do cx -r evised 04/2016 480 prosecution of work, and for a ll ot her risks of any d esc ription in co nn ect io n w ith the work, incl uding, but not lim ited to, al l expenses incurred by o r in cons equence of the suspens ion o r dis continuance of ,,.,or k, except s uch a s are herein express ly stipulated to be bo rn e by C ITY, and for well and faithfully co mpleting th e wo rk within th e st ipul ated time and in th e mann er sh ow n and d esc ribed in thi s Agree me nt , and in acco rd ance with the require m ents of CITY for th e compensation set fo rth in the accepted bid proposa l. 2. A CCEPTANCE OF COND ITI ONS OF WORK; PLANS AND SPECIFICATIONS CONTRA CTOR ackn owledges th at it is fully fa mili ar with a ll th e terms, co nditi o n s a nd ob li ga tion s of thi s Agreem e nt and th e Co ntract D ocu me nts (as defined bel ow in this Section), has in spected th e locatio n of the job s ite, an d the condit ions under which th e work is to be performed, and that it e nters into this A g ree ment based up o n its t horo ug h in vestiga tion of a ll s uch ma tters and is rel y ing in no wa y upon any o pinions o r re presentat ions of CITY. It is agreed that the Co n tract Docume nt s a re inco r porated into t hi s Agreement by thi s refe renc e, with the sa me fo rce and effect as if th e sa m e were set fo rth at le ng th h e rei n, a nd that CONTRACTOR a nd its sub contractors, if a ny, sha ll be bound b y th e Contract Docu m e nts insofar as the y re late in part or in an y way, directl y o r indirect ly, to the work cove red by th is Agreement. "Co ntract Documents" as defined he re in mean and in c lud e: A. T hi s Agree ment; B. Bonds covering t he wo r k h erei n agreed upo n; C. The C ITY's s tandard Pl a ns and Specifications a nd spec ial contractua l provisions, including th ose on fil e in the o ffice of th e Depa rtme nt o f Publi c Works of C ITY, a nd any rev is io ns, ame ndment s o r adde nda thereto; 2 16-5 195/City Fu nded Co nstru c tion Contract.d ocx -rev ised 04 /201 6 481 D. The edition of Standard Specifications for Public Works Cons trnction, publi s hed by Builders' News, Inc., I 080 I Natio nal Boul eva rd, Lo s Ange les, CA 90064 , and a ll a me n d me nts the ret o , ·written a nd pro mul gated by the So uthern Ca lifornia ch apter of the Ameri ca n Public Works Assoc iation and th e So uth ern Ca li fo rni a D is trict Associated Ge n e ral Co ntractors of th e Ca li forn ia Jo int Coo pera ti ve Com mi ttee as specified in the parti c ul a r P la ns, Spec ificat ions, Special Provisions and Addendum app li ca ble to the Project; E . Bid docum e nts in c luding the Not ice Inviting Bids, t he Spec ial Instruct io ns to Bidders and the C ONTRACTOR's proposa l, (v,1hi ch is attac hed hereto as E xhibit "A" and incorporated h e re in b y this refere nce); F. The pa rt ic ul a r Pl a ns, Spec ifications , Specia l Provisi o ns and Addend a applicable to the PROJ ECT. Anything m e nt io ned in the Specifications a n d not ind icated in the Pla ns o r indica ted in t he Plans a nd not men t io ned in th e Specificat io n s, s ha ll be of like effec t as if indicate d and mentioned in bot h. In case of a di sc repa ncy betwee n any Plans, Spec ifi cat io ns, Specia l prov is ion s, or Addend a, the matte r sh al l be im medi ate ly submitted by CONTRACTOR to the Director of Publi c Works of CITY or hi s o r he r vlritte n designee (hereinafte r referred to as "DPW"), and C ONTRACTOR s ha ll not a tte mpt to resolve o r adj us t the discrepancy without th e d ec is io n of DPW, sav e o nl y at its own risk a nd expe nse . Sho u ld th e re be a ny co nflict between the terms of t hi s Agreem e nt and the bid o r proposa l o f CONTRACTOR, then thi s Agreeme nt s ha ll contro l a nd nothing here in s ha ll be co nsi d e r ed as an acce pta nce of th e term s o f the bid o r proposa l vv hi c h is in conni ct h erew ith. 3 16-5 195/City Funded Co nstructi on Co ntract.docx -revised 04/2016 482 3. COM PENSATION C ITY ag rees to pay and CONTRACTOR agrees to accept as full compensat ion for the fa ithfu l performance of thi s Agreement, subject to any add iti o ns or ded u ct ions made under the prov is ions of this Agreemen t o r the Contract Doc um e nts, a s um not to exceed NIN ETY-SEVEN THOUSAND Dollars ($ ____ 9_7_,_0_00 ___ ~), as se t fort h in the Contract Documents, to be paid as provided in thi s Agreement. 4. COMlvJENCEMENT O F PROJECT CONTRACTOR agrees to co mm ence the PROJECT w ith in ten ( I 0) work in g days after the Notice To P roceed is issued and d iligently prosec ute th e PROJ ECT to comp letion w ithin _______ S_I_X_T_Y _______ ( 60 ) consecutive Working days from the day th e Notice to Procee d is issued by DP W , exc ludin g de lays prov id ed for in thi s Agreement. 5. T IME OF T H E ESSENCE The parties hereto recognize and agree that time is of the essence in th e performance o f this Agreement a nd eac h and eve ry provision of the Contract Docu m ent s. CONTRACTOR sha ll prepare a nd o b tain a pp rova l as requ ired by the Co n tract Docume n ts for all s hop drawi n gs, details and sa mples, and do al l ot her th ings necessary and i nc ide ntal to the prosecut io n of its ,;,,1o rk in co nfo rm a nce w ith t he progress sc hedule set forth in the Co ntract Docum en ts. CONTRACTOR s ha ll coordin ate its wo rk w ith th e wo rk of a ll o th e r co ntra ctors, sub contracto rs, and C ITY forces work ing o n th e PROJECT in a manner that w ill fac ilitate the effic ie nt co mpl etion of the PROJECT a nd in acco rd ance with t he terms and provisions of this Agreeme nt. C ITY s ha ll have comp lete co nt ro l of the premi ses o n wh ic h t he work is to be performed a nd s hal I have the right to d ecide t he time a nd o rd er in w hich the va ri ous po rtion s o f th e work s h a ll be performed a nd the prio ri ty of the work of o th e r contractors, 4 16-5 195/City Fu nded Co nstruction Contract.docx -revised 04/20 I 6 483 subcon tra ctors and C ITY forces and , in genera l, a ll m atte rs concernin g the timely and order ly co ndu ct of the wo rk of CONTRACTOR on the premises. 6. CHANGES CONTRACTOR s hall adhe re stri c tl y to the plans and spec ifi cations set fo rth in the Contract Docum ents unl ess a c ha nge therefrom is authori ze d in wri tin g by DPW. CONTRACTOR agrees to make a ny a nd al l changes, furnish m aterials and perform all work necessa ry with in th e scope of the PROJECT as DPW may require in v,1rit in g. U nder no co ndi tion shall CONTRACTOR make a ny changes with o ut t he pri or written o rder o r acceptance of DPW , an d CITY s hall not pay any extra charges made by CONTRACTOR that have not been agreed upon in writ ing by DPW. When directed to change the vvork, CONTRACTOR s hall s u bmit immedia tely to DPW a w ritte n cost proposal reflecting the effect of t he c hange. Shou ld DPW not agree to such cost proposal, the work s hall be perfo rmed according to the c hanges ordered in writing by DPW and the proper cost thereof sha ll be negotiated by t he parties upon cost and pricing data s ubmitted by CONTRACTOR; thereupon, CITY w ill promptly issue an adjusted change o rder to CONTRACTOR and the contract pri ce w ill be adjusted upward o r dow nwa rd accord in gly. 7. NOT ICE TO PROCEED No wor k, serv ices, mater ial, o r equipment s h a ll be per formed o r furnished under thi s Agreement unless and until a Notice to Proceed has been given to CONTRACTOR by CITY. C JTY does not warrant that th e work ,.vi ii be ava il able on t he elate the Not ice to Proceed is issu ed. In the event of a delay in co mmencement of t he work due to u navailab il ity of the job site, for any rea so n, relief to CONTRACTOR s hall be limited to a t im e extension equal to the delay d ue to such unava il ability. 5 16-5 195/C ity Funded Const ruction Contract.docx -revised 04/2016 484 8. BONDS Only bonds issued by Ca li fo rnia adm itted s ureties will be acce pted. CONTRACTOR sha ll , prior to its performance of this Agreement, furni sh the fo ll owing two (2) bonds approved by the City Attorney: One in the amount of one hundred percent ( I 00%) of the contract p rice to guarantee the CONTRACTOR's faithful performance o f the work, and one in the a m ount of one hundred percen t of the contract price to g uarantee payment of all c laims fo r labor and m ater ia ls furnished. ln addition , CONTRACTOR s hall sub mit to CITY a bond in the amou nt of o ne hundred percent ( I 00%) of the final co ntract pri ce, including all change orders, to warrant such performance for a period o f one (I) year after C ITY's acceptance thereof within ten ( I 0) days of filing of the Notice of Completion . 9. W ARRANTIES CONTRACTOR unconditionally guarantees all work done under th is Agreement includin g, but not limited to, any workmanship, installation, fabrica ti on, m ater ial o r structu ral facili ti es constructed. CONTRA C TOR, wi thin ten ( I 0) days after notice by CITY of any d efect in th e wo rk, sha ll have the option to make appropriate repa irs o r replace the defecti ve item or items. Upon expiration of such te n ( I 0) day period , C ITY m ay then m ake appropriate repair or replacement at CONTRACTOR's r isk and own cost and expen se. I 0. INDE PENDENT CONTRACTOR It is und e rs tood and agreed that CONTRACTOR is, and s ha ll be, acting at all t im es he re unde r as an independent co ntracto r and no t an emp loyee of CITY. CONTRACTOR s ha ll sec ure at it s own cost and ex pense , and be respon s ible for any and a ll pay ment of all taxes, soc ia l sec urity, s tate disability insurance compensation, un employme nt compe nsatio n and ot h e r payroll 6 I 6-5 195/City Funded Co nst ructi on Co nt ract.docx -revised 04/20 I 6 485 deductions for CON TRA CTOR and its officers, agents and employees and all business licenses, if any, in con nectio n with the PROJECT and/or the serv ices performed hereunder. 11 . LIQUIDATED DAMAG ES/DELAYS It is agreed by the parties hereto that in case the total ,-vork called fo r hereunder is not in a ll parts and requirement s fini shed or com pl eted within the number of cale ndar days as set forth herein, damage will be susta ined by CITY ; and t hat it is, and would be, impra ctical and extremely difficult to ascertain and determine the actual da mage \.v hi ch CITY would s ustain in the event of and by reaso n of s uch delay. It is, therefo re, agreed th at CONTRACTOR w ill pay to CITY, as liquidated damages and not as a penalty, the s um of _______ F_•I_V_E_• _H_U_N_D_RE_•_D_D_O_L_L_A_R_S ______ ($ __ 5_00_~) per each ca lend ar day 's de lay in co mpl eting the work in excess of the numb er of work in g/ca lenda r days set fort h herei n, which represents a reasonable endeavo r by the pa rt ie s hereto to estimate a fair compensation fo r the foreseeab le damages C ITY would sustain in the event of and by reason of such delay; and CONTRACTOR agrees to pay these damages herein provided, and furt her agrees that CITY ma y deduct the amount th ereof from any mo ni es due o r th at may become due to CONTRACTOR hereund er. CONTRACTOR wi ll be gra nted an exte nsion of time and will not be assessed damages for any portion of the delay in the complet ion of the ,:-.1o rk due to unforeseeable ca uses beyond the control and w ithout the fault o r neg li ge nce of CONTRACTO R, including, but not limited to, acts of God o r of the public enemy, fire , floods, epidemics, quarantine restrictions, strikes, unsuitable weather, or de lays of s ubcontractors due to s uch causes. CONTRACTOR sha ll , with in fifteen ( 15) cla ys from the beginning of any such delay (unless DPW shall gra nt a further period of time), notify DPW in wr itin g of the cause of the 7 I 6-5195/C ity Funded Co nstruction Contrnct.docx -revi sed 04/20 I 6 486 delay and C ITY s hall extend the time for co mpl et ing the wo rk if, in its judgment, the findings o f fact thereon just ify the delay; and the decision of DPW shall be conclus ive o n the parties hereto . S hou ld CONTRACTOR be delayed in the prosecution o r comp le ti o n of the wo rk by the act, neg lect or default of C ITY, or shou ld CONTR ACTOR be delayed by waiti ng for m ater ia ls req uired by this Agreement to be furni s hed by C ITY, or by damage caused by fire or other casu a lt y at the j ob s ite for which CONTRACTOR is not responsib le, o r by the combi ned action of the workers, in no way caused by or res ulti ng from default o r collusio n o n the part of CONTRACTOR, o r in th e eve nt of a lockout by CITY, then the time her e in fixed for t he co mpl et io n of the \>Vork s hall b e exte nd ed by the number of days CONTRACTOR has thu s been delayed, but no allO\:vance or exte nsion shall be made unless a cl aim therefor is presented in writing to C ITY v,1 ithin fifteen (15) days of the com mencemen t of s u ch de lay. No c laims for additi ona l compensatio n o r da m ages fo r delays, irrespect ive of the cause thereof, and including without limitatio n the furnishing of materials by C ITY or del ays by other contracto rs or s ubcontractors wi ll be a ll owed and an exten s ion of time for completion s ha ll be the sole remedy of CONTRACTOR. 12 . DEMANDS FOR ADDITIONAL TIME OR MONEY . A. Defi ni t io ns. ( 1) "Change O rder" means a docume nt s igned by th e CONTRACTOR a nd C ITY vv hi ch autho ri zes an ad diti o n, delet ion or revisio n in the work, o r an adjustm ent in the Compe nsat io n und e r Sect ion 3, or the Co mpletion T im e specified at Secti o n 4. (2) "Dema nd" mea ns a written dema nd fo r a C hange Orde r by the CONTRACTOR for any of the fo llow ing: (a) A t im e extens io n; 8 16-5 195/C ity Funded Co ns tructio n Contract.docx -revised 04/2016 487 (b) Paym e nt of m o ney or dama ges arising from ,vork done by, or o n behalf of, the CONTRAC TOR pursuant to thi s A g ree ment and pa yment of which is no t ex press ly permitted pursuant to S ec tion 3 of this Agreement; (c) Paym e nt of a n amount the CITY dispute s; (d) Any di s putes and o ther matt e rs re lating to th e acceptability of the work pe rform ed o r th e interpretation of the Co ntract Documents; (e) A request fo r a t ime ex ten s io n or addit io na l payment based upon differing si te conditions, s uch as sub surfa c e or latent phys ica l conditions at the job site differing materiall y from those indicate d in thi s Agreement or the Contract Documents, or unknown physical conditions at th e j o b s ite, of an unu s ual nature, differi ng materi a lly fro m those o rdin a ril y encountered and genera lly reco g ni z ed as inhere nt to ,,vork of the PROJECT; or (f) A req uest for a time exten sio n o r additional payment based up o n a cts of neglect by CITY o r du e to fires , floods, labor disputes , e pidemics, a bnorm a l weather co ndition s or acts of God. B. A Demand for a tim e extension or paym e nt o f money or dama ges may o nly be gra nted by a C ha nge Order. C. No C ha nge Order ma y be granted exce pt whe re the Co ntractor has s ubmitted a Demand to the DPW (or hi s o r her written d esignee). All D e mands s hal l be s u b mitted promptl y, but in n o event la ter than thirty (30) days after the occurrence of the event giving rise to th e Demand . T he Demand shall be in wr iting and include all doc ument s necessa ry to s ubsta nti a te t he Demand . T h e DPW s ha ll act o n th e De mand within fi ftee n ( 15) d ays after rece ipt, includin g by reques ting additional information from the CONTRACTOR to dete rmine ,vhe ther to approve t he Change O rd e r the Demand seeks . Th e DPW s hall act o n the Demand within fifteen ( 15) cla ys 9 I 6-5 195/Ci ty Funded Co nstru ct io n Co ntract.d ocx -revi sed 04 /2 016 488 afte r receipt of the additio nal in formation or wi thin a period of time no g rea ter than the time the CONTRACTOR took to produce the additio na l information requ es ted , whichever is greater. D . Notwit hsta ndi ng the th irty (30) days to s ubmit a De mand under Subparagraph C, in the case of diffe rin g or unkno\.vn s ite conditions, immediate ly upon enco un te ring th e conditions, CONTRACTOR s hall noti fy the DPW in wr itin g of the condit ions, so that the CITY may promptly invest igate the conditions. E . If the CONTRACTOR disputes the DPW's written response on th e Dema nd , or the C ITY fa il s to res pond w it hi n the time prescr ibed, the CONTRACTOR may so notify t he City Eng inee r, in writing, either within fifteen (15) days of receipt of the City Eng ineer 's res ponse o r within fifteen (15) days of the DPW's failure to respond with in th e time prescribed, respective l y, and request a n informal conferen ce to meet and confer for sett lem en t of the Demand. Upon the CONTRACTOR's request, the DPW s hall schedule a meet and confer conference w ithin thirty (30) days to seek to resolve. F. CJTY and CONTRACTOR shall execute appropri ate Change Orders covering c han ges to th e time or price by executin g the C hange Order by m u tua l agreement. If the C ITY and CONTRACTOR are unable to reach a mutual ag reement, then the C ity Engineer shall issue a written dec ision o n the cla im with in a reasonab le time. G. Fo ll O\;ving t h e meet and confer confe re nce, if t he Demand rema ins 111 d is pute, th e CONTRACTOR may fi le a claim w ith the C ity as provid ed in C hapte r I (commencing with Sect ion 900) and Chapte r 2 (commenc in g w ith Sectio n 910) of Pa rt 3 of Divi sio n 3.6 of T itl e I of the Gove rnm e nt Code. For purposes of th ose prov isions, th e running of the period of time within which a claim must be tiled sha ll be tolled from the time the CONTRACTOR s ubmits his IO 16-5 195 /C ity ru ndcd Consl rncti on Con tract.docx -revised 04 /2 016 489 or her Demand until the Demand is denied as a result of the meet and confer process, including any period of time utili zed by the meet and confer process. 13. VARIATlONS 1N ESTIMATED QUANTITIES The quantit ies listed in the b id sc hedule will not govern final payment. Payment to CONTRACTOR wil l be made only for the actual quantities of contract items used in construction of the PROJECT, in accordance with the plans and specifications. Upon completion of the PROJECT, if the actual quantities used are either more than or less than the quantities listed in the bid schedu le, the bid price shall prevail subject to the provisions of this Section. DPW may, at its so le discretion, when warranted by the facts and circumstances, ord er a n equ ita ble adjustme nt, upward s o r downwards, in payment to CONTRACTOR where th e actual quantities used in construction of the PROJECT are in variation to the quantities li sted in the bid schedule. No claim by CONTRACTOR for an equitable adjustment in price or time for completion sha ll be al lowed if asserted after final payment und er this Agreement. ff the quantity variation is such as to cause an increase in the time necessary for completion, DPW shall ascertain the facts and c ircum stances and make such adjustment for extending the completion date as in its so le judgment the findings warrant. 14 . PROGRESS PA Yiv!ENTS Each month DPW v,1ill make an estim ate in writing of the work performed by CONTRACTOR and th e value thereof. From eac h progress estimate, fiv e percent (5%) will be deducted and retained by CITY and the remainder of the progress estimate, less the amount of all prev ious payments since commencement of the work, w ill be paid to CONTRACTO R. When CONTRACTOR ha s, in the judgment of DPW, faithfully executed fifty percent (50%) o r more of the value of the work as determined from the bid schedule, and if DPW finds that satisfactory progress ha s been and is being made, CONTRACTOR may be paid such 11 16-5 195/C ity funded Co ns truction Co ntract.docx -revised 04/2016 490 s um as ,:viii bring the payments of each mo nth up to o ne hund red percent ( I 00%) of the value of the work compl eted s in ce the com m enceme nt of the PROJ ECT, as determined in its so le di scr e ti o n by DP W, less all previous pa yments a nd less all previou s retained a m o unts. C ITY's final payment to CONTRACT OR, if unencumbered, o r a ny part thereof une ncu mbered , shall be m ade thirty -five (35) clays after th e acceptance of th e work a nd the filin g of a Not ice of Compl etio n by CITY. Provided , hov,1eve r, that in th e event of a di s put e be twee n C ITY and CONTRACTOR, CITY may w ithh o ld from th e fi nal payment an a mount no t to excee d 150 percent of the va lue of a ny di s puted a mo unt of work. Payments s hall be ma de on demands dra wn in the m ann er requi red by law, each paym e nt to be acco mp an ied by a cert ificate s ig ned b y DPW, affirmin g th at the work for which paym e nt is de manded has been pe rformed in accordance w ith the te rm s of the Agreem e nt a nd that th e a mount stated in th e certificate is due under th e term s of the Agreement. Pa rti al payme nts o n th e con tra c t price shall not be considered as an acceptance of any part of th e work. 15. WITHHELD CONTRACT FUNDS, SUBSTITUTION OF S ECU RITIES At the request a nd at t he so le cost and expe nse of CONTRACTOR, who sha ll retain beneficial ow ners hip and rece ive interest, if a ny thereon , CITY s ha ll permit th e s ub stitu tio n and depo s it therewit h o f securiti es equiva le nt to the amo unt o f any monie s w ithh eld by C ITY to ensure perform ance und e r the te rm s of thi s A g reeme nt. 16 . AFrIDAVITS OF SATISFACT ION OF CLAIMS A ft er the completion of the ,,vork conte mpl ated by th is A gr ee m e nt , CONTRA C TOR s ha ll file with DPW its a ffid av it s tat in g tha t a ll w o r kers a nd pe rsons employed , a ll firm s s uppl yi n g m ateri a ls and a ll s ubco ntractors workin g upon th e PROJECT have bee n paid in full and th at there a re no cla ims o utstandi ng a ga ins t th e PROJ ECT fo r e ither la bor o r material , except certa in item s, i f a ny, to be se t fo rth in CONTRA CTO R 's affidavit coverin g di spu ted c lai ms, 12 16-5 195/C ity Funded Co nstruction Co nt ra ct.docx -rev ised 04 /2016 491 or item s in connection with Notices to Withhold, which have bee n filed under the provi sio ns of the statutes of the State of California . 17. WAIVER OF CLAIMS The acceptance by CONTRACTOR of the payment of the final certificate sha ll constitute a ,vaiver of all claims against CITY under or arising out of this Agreement. A. The CITY has ascertained from the Director of Industrial Re lations of the State of California the general prevai li ng rate of per diem \o\1ages and the genera l prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Agreement, and the same has been set forth by reso lution on file in th e office of the City C lerk of CITY. CONTRACTOR and any subco ntractor under it s hall pay not less than sa id prevailing wage rates to al l workers employed on thi s publ ic works Agreement, as required by California Labor Code Sect ions 1771 and 1774. In accordance with the provi sio ns of Section 3700 of the Cal iforn ia Labor Code, CONTRACTOR agrees to secure payment of compensation to every employee . B. Pursuant to thi s Agreement and in acco rdance with Section 1774 and 1775 of the California Labo r Code, CONTRACTOR s hall, as penalty to C ITY, forfeit twenty-five dollars ($25) for each ca le ndar clay or portion thereof for each \-Vorker paid ( ei th er by CONTRACTO R or any of its s ubcontra ctors) less than the prevai ling v,1age rate established for that particular craft or type ohvork. 18. CALirORN IA PREVA ILING WAGE LAW A. The CITY ha s ascerta in ed from the Director of Industrial Re lations of the State of California the genera l prevailing rate of per diem wages and t he genera l prevailing rate for legal ho li day a nd overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute th is Agreement, and the sa me has bee n set fort h by 13 16-5 195/City Pundcd Construct ion Contract.docx -revised 04/2016 492 reso luti on on file in the office of the City Clerk of CITY. CONTRACTOR and any subcon tra c tor under it shall pay not less than sa id prevailing 'vvage rates to all workers emplo yed on this public works Agreemen t, as required by Ca li fornia Labo r Code Sect ions 177 1 and 1774. In accordance with the provisions of Section 3700 of the Californ ia Labor Code, CONTRACTOR agrees to secure payme nt of compensation to every employee. B. Pursuant to thi s Agreement and in acco rd ance with Section 1774 and 1775 of the Ca li fornia Labor Code, CONTRACTOR sha ll , as penalty to CITY, forfei t twenty -five dollars ($25) for each calendar day or portion th ereof for each worker paid (either by CONTRACTOR or any of its s ubcontractors) less than the prevai lin g wage rate estab lis hed fo r that particular craft o r type of work. 19. CA LI FORNIA EIGHT-HOUR LAW A. Ca li fo rni a Labor Code, Sections l 8 10 e t seq, sha ll apply to the performance of thi s Agree ment ; the reu nder, not more than e ight (8) ho urs s hall constitute one day's wo rk and CONTRACTOR and each subcontractor em pl oyed by its hereunder, shall not require more than e ight (8) hours of labor per day or forty ( 40) hours per week from any one person employed by it he reund e r, except as stipu late d in California La bor Code Section 18 15 . CONTRACTO R and each subcontractor e mplo yed by it hereunder s hal l, in accorda nce with California Labor Co de Section 1812, keep an accura te reco rd , open to inspect ion at al I reasonable hours, show in g the name and ac tual hours ,vorked eac h ca lendar cl ay and eac h calendar week by each worker empl oyed in co nn ect ion with t he PROJ ECT. B. Pursuant to this Agreement and in accordance with Ca li forn ia Labor Code Sectio n 181 3, CONTRACTOR sha ll , as a penalty to CITY, forfe it twent y-five dollars ($25) fo r eac h worker employed hereunder by CONTRACTO R o r any su bco ntra cto r for each calendar day during whi ch suc h worker is required o r permitted to wo rk more th an e ight (8) hours in any one 14 16-5 195/Ci ty Funded Co nst ru c ti o n Co ntract.docx -revised 04/2016 493 (I) calendar day or forty (40) hours in any one (1) ca lendar week in violation of California Labor Code Sect ion I 815. 20. PAYMENT or TRAVEL AND SUBSISTENCE ALLOWANCE Section 1773.8 of the California Labor Code, regard ing the payment of travel and subs istence al lowance is appl icab le to this PROJECT. 21. EMPLOYMENT OF APPRENTICES Sect ion 1777.5 of the California Labor Code, r egard in g the employment of apprentices is applicable to th is PROJECT. 22. PAYROLL RECORDS CONTRACTOR agrees to keep accurate payroll record s howing the name , address, soc ial sec urity number, work classification, s traight time and overtime hours worked each day and week, and the actua l per diem wages paid to each journeyman, apprentice or worker employed by it in connection with the PROJECT and agrees to require each of its subcontractors to do the same. CONTRACTOR further agrees that its payroll record s and those of its subcontractors, if any, s hall be avai lable at all reaso nable times to the CITY , and the emp loyee o r hi s representative, and th e Division of Labor Standards Enforcement and the Divi s ion of Apprenticesh ip Standards, and to comply with all of the provision s of Ca lifornia Labor Code Section 1776, in general. 23 . INDEMNI FI CATION, DEFENSE, HOLD HARMLESS CONTRACTOR hereby agrees to protect, defend, indemnify and hold harmle ss CITY, it s officers, elected or appointed officials, employees, agents, and volunteers from and against any and a ll claims, damages, losses , expenses, judg ments, d e mand s, defen se costs, and consequentia l damage or liability of any kind or nature , hO\,vever caused, includin g those res ulting from death or injury to CONTRACTOR's e mployees and damage to CONTRACTOR's property, 15 16-5 195/C ity Funded Co ns tru ction Contract.docx -revised 04/2016 494 aris in g directly or indirectly out of the obligations or operations herein undertaken by CONTRACTOR, caused in '"'hole or in part by any negligent act or omission of the CONTRACTOR, any s ubcontractors , anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent act ive or passive negl igence, except where caused by the active neg li gence, sole negligence, or willful misconduct of the CITY, its officers, elected or appointed officials, employees, agents, and volunteers. CONTRACTOR will conduct all defense at its sole cost and expense and CITY shall approve se lection of CONTRACTOR's counsel. This indemnity sha ll app ly to al l c laims and liability regardless of whether any insurance policies are a pplic ab le . The policy limit s do not act as a limitatio n upon the amount of indemnification to be provided by CONTRACTOR. 24 . WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE Pursuant to Ca li fornia Labor Code Section 1861 , CONTRACTOR acknow ledges awareness of Section 3700 et seq . of this Code, which requires every employer to be ins ured against liability for workers' compensation; CONTRACTOR covenants that it will comply w ith s uch provisions prior to commenci ng performance of th e work hereunder. CONTRACTOR shall obtain and furni sh to C ity wo rkers ' compensatio n and employer's liability in surance in an amount of not less than the State statutory limits. CONTRACTOR sha ll require al l subcon tra ctors to provide such workers ' compensation and employer's liabili ty insurance for al l of the subcontracto rs' employees. CONTRACTOR shall furnish to CITY a certificate of waiver of subrogat ion under the term s of the workers' compensat ion and employer's li ability in surance and CONTRACTOR sha ll simi larly require all subco ntract ors to waive sub rogation. 16 16-5195/City Funded Constructio n Co ntract.docx -revised 04/2 016 495 25. INSUR ANCE In ad d it io n to th e workers' co m pensa ti o n and e mp loyer's li abi li ty in sura n ce and CONTRACTOR's covena nt to defen d, ho ld h ar ml ess a nd ind e mn ify CITY, CONTRACTOR sha ll obta in a nd fu rn is h to CITY, a po li cy of genera l pub li c li a bilit y ins ura nce, in c ludin g m otor veh ic le cove ra ge co v e rin g th e PRO J ECT. Thi s po li cy s hall ind e mnify CONTR ACTO R , its officers, empl oyees a nd agent s w hi le act in g .v it h in the scope of t he ir du ti es, aga in st any a n d a ll c laims ar is in g out o r in co nnecti o n with the PROJECT, a nd s ha ll p rovi d e coverage in n ot less t ha n th e fol lowi ng a mo unt: co mbin ed s in g le limit bod il y inju ry a nd p rope rty d a m age, in c ludi ng produ c ts/co mpl ete d operati ons li abi lit y a nd blanket co ntractu a l liab ility, of One Mi lli o n D o ll ars ($1,00 0,000) per occu r rence. If coverage is p rovided u nd e r a fo rm w h ic h inc lu des a des ignated general aggrega te limi t, t he aggregate limit must be n o less tha n One M illio n Do ll ars ($1,00 0,000) fo r thi s PROJ ECT. Thi s p o li cy sh a ll na me C ITY, its o ffi ce rs, e lecte d or a ppo inted officia ls, e mpl oyees, age n ts, an d vo lun teers (th e "Add iti o nal ly In s ured P a rties") as Add iti o na l I ns u reds, and s h all spec ifica ll y prov ide that a ny othe r ins urance coverage w h ich may be app licab le to the P ROJ ECT s ha ll be dee med excess coverage a n d t hat CONTRACTO R's in su ra nce s ha ll be primary a nd no n-co ntr ib uto ry w it h any o ther va li d a nd co ll ecti b le ins u ra nce o r se lf-in s urance ava ila bl e to th e Add iti ona ll y Ins ure d Pa rti es. Any availab le ins u rance proceeds in excess of th e m inim um coverage a m o u nt sp ecified herein s h a ll be availab le to the Addi t iona ll y In sured Part ies . A ll coverage av ail a bl e to CONTR ACT OR sh a ll al so be ava il a bl e to th e Ad di t io na ll y In s ured P arti es. Und er no c irc um sta n ces s hal l said above-me nt ioned insu ra nce co n ta in a se l f-insu red rete n t io n w ith o ut the ex p ress w ritt en co nsent of C ITY; however a n insu rance policy "deductible" of Five Thousa n d Do ll a rs ($5 ,000.0 0 ) is permitt ed. CONT RACTOR s ha ll be resp on si bl e fo r causi n g a ll S ub co nt racto rs to ma intai n the sa m e types and limits of in s ura nce coverage as tha t requ ired of CONTRACTOR by this Agreeme n t. 17 16-5 195/C ity F unded Cons trnc tion Contract.docx -rev ised 04/20 16 496 26. CERT IFI CATES OF IN SURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commenci n g performance of the work hereund er, CONTRACTOR sha ll furnish to C ITY certificates of insurance subject lo approval of t he City Attorney ev idencing the foregoing ins urance coverages as required by this Agreement; the certificates shall: I. Provide the name a nd policy number of each carrier and policy; 2. State that the policy is currentl y in force; and 3. Promise to provide that such policies will no t be cance led o r modified without thirty (30) days ' prior written n otice of C ITY. C ONTRACTOR s hall maintain the foregoing ins urance coverages in force until the ,:vork under this Agreement is fully completed and accepted by CITY. The requirement for ca rr yi ng the fo regoing insurance coverages shall not derogate from the CONTRACTOR's defense , hold harml ess and indemnification ob li gatio ns as set fort h under thi s Ag reement. CITY or its representative shall at all times have the ri g ht to d e mand the o riginal or a copy of a ll the policies of in surance . CONTRACTOR sha ll pay , in a prompt and timely manner, the premiums on a ll ins urance h e re inabove required. C ONTRACTOR shall provide a separate co py of t he add itional insured endorsement to each of CONTRACTOR's insura nce policies, naming C ITY, it s o fficer s, elected and appo inted offic ials, emp loyees, agents and vo lunteers as Additional In su reds, to the C ity Attorney for approval prior to any payment hereunder. 27. NOT ICE OF THIRD PARTY CLA IM Purs uant to Public Co ntracts Code §92 02 , ClTY s hall provide notice to CON TRA CTOR ofreceipt of any c laim filed with C ITY or a court of competent ju ri sdi ct ion whic h ar ises out of performance of thi s agreement within ten ( I 0) days of receipt of suc h cla im o r c laim s. 18 16-5195/C ity Funded Construction Co ntract.docx -revise d 04/2016 497 28. DEFAULT AND TERJvlJNATION If CONTRACTOR fails or refuses to prosecute the work hereunder w ith dil igence, or fai ls to comp lete the work within the time specified, or is adjudged bankrupt or makes an assignment for the benefit of creditors or becomes insolvent, or vio lates a ny provis ion of this Agreement or the Contract Documents, C IT Y may g ive CONTRACTOR notice in writing of its intention to terminate this Agreement. Un less th e violation is cured within ten (I 0) days after such Notice of Intention has been served on CONTRACTOR, CITY may, without prejudice to any other remedy it may have , terminate this Agreement upon the exp iration of that time. Upon such default by CONTRACTOR, CITY may elect not to terminate this Agreement; in such event CITY may make good the deficiency in which the default consists and deduct the resulting costs from the progress payments then or to become due to CONTRACTOR. If it is subsequen tl y determined by a court of competent jurisdiction that CITY's termination of this Agreement under this Section ,.vas wrongfu l, such termination sha ll be converted to a termination for convenience under Section 29 and any damages shall be assessed as set forth in Section 29. 29. TEIUv:lINATION FOR CONVENIENCE CITY may terminate thi s Agreement for convenience at any time w ith o r without cause, and whether or not PROJECT is fully comp lete upon seven (7) calendar days written notice to CONTRACTOR . In the event of terminati o n , under this Section CITY sh all pay CONTRACTOR for va lu e of work in place on the PROJECT through the termination period less all such paym e nt s already made. In case of such ter mination for convenience, the CONTRACTOR s hall be entitled to rece ive payment for work execu ted , and costs incurred by reason of such termination. In no event s hall CONTRACTOR be ent itl ed to recover overhead , profit or CONTRACTOR's fee on work not performed. Such payment by CITY shall be CONTRACTO R's 19 16 -5 195/Ci ty Fu nd ed Co nstruction Co ntract.docx -revised 04/20 16 498 so le and exclus ive remedy for terminat ion by CITY for it s convenience and C ITY sha ll have no further obligation to CONTRACTOR. 30. DISPOSITION OF PLANS, ESTIMATES AND OTH E R DOCUMENTS CONTRACTOR agrees that upon completion of the work to be p erformed hereunder, o r up on expiration or earlier terminatio n o f thi s Ag reement, all origina l pl a ns, spec ifi cations, drawin gs, repo rts, calcu latio ns , maps and other documents pertaining to this Ag reement sh a ll be d e li vered to CITY and become its so le property at no furth er cost. 31 . NONASSIGNABILITY CONTRACTOR sh a ll not se ll , assig n, tran s fer , convey or encumber thi s Agree me nt , o r any part hereof, o r any ri g ht or duty created herein , without th e pri o r written co nsent of CITY and the s urety. 32. C ITY EMPLOYEES AND OFFICIALS CONTRACTOR s hall e mpl oy no CITY offic ia l nor a ny regul ar CITY empl oyee in the work performed purs uant to this Agree me nt. No officer o r e mpl oyee of CITY s hall have a n y financia l inte rest in thi s Agreeme nt in vio lation of the Ca li fornia Government Code. 33. STOP N OTICES; RECOVERY OF ADMINISTRATIVE COS TS CITY s hall be e ntitled to a ll reasonab le admi ni strative costs and necessary disbursem e nts a ri s in g out of the process in g of Stop Notic es, Notices to Withho ld , or a n y simi la r lega l doc um e nt. Th is ob li gatio n sha ll be provid ed for in t he labor and mate ri a ls payment bon d re quired of CONTRACTOR. CITY m ay c harge a n a dmini s t rative fee of One Hund re d Dollars ($100) for every Stop Notice fil ed in excess of two (2), rega rd less of v,ih e th er or not CITY is named in a n act ion to e nforce s uch s top notices. CITY m ay set off a ny unre im bursed cost or expe nse so incurred agai nst any s u m o r s um s owed b y C ITY to CONTRACTO R under thi s Agreement. 20 16-5 195/City Fu nd ed Co nstruct ion Contract.clocx -revised 04/20 16 499 34. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal de li very to CONTRACTOR's agent (as des ignated in Secti o n I hereinabove) or to CITY as the s ituation shall warrant, or by enclosing the sa me in a sea led envelope, postage prepaid , and depo s iting the same in the United States Postal Service, to the addresses specifi ed below; provided that CITY and CONTRACTOR may designate different addresses to which s ubsequent notices, certificates o r other commun ications ,:viii be sent by notify ing the other party via personal de li very, reputab le overnight carri er or U.S. certified mail-return rece ipt requested: TO CITY: C ity of Huntin gto n Beac h A TI'N: Director of 2000 Main Street , Public Works Huntington Beach, CA 92648 35. SECTION HEADINGS TO CONTRACTOR: UNIVERSAL COATINGS, INC. ATTN: Kim Nulick 5191 E. Dakota Avenue Fresno CA 93727 The t itl es, captions, section, paragraph and subject headings, and des criptive phrases at the beginnin g of the variou s sections in thi s A g reem e nt are merely descriptive a nd are included so lely for convenience of referenc e only and are not re presentative of maters included o r exc lude d from s uch provi s ions, and do not inte rpret, define, limit o r describ e, o r construe the inte nt of the parties or affect the construct ion o r interpretation of a n y provisi o n of thi s Ag reement. 21 16-5195/C ity Funded Co nstruc ti on Contract.clocx -revi sed 04/2016 500 36. IMMIGRATION CONTRACTOR shal l be responsible for full compliance with the immi grat ion and naturali z ation laws of the United States a nd s ha l l, in particular, comply with the p rovis ions of United States Code Section I 324a regard in g employment verification. 37 . LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree th at C ITY is not li ab le for payment of any su bcontractor work involving legal serv ices, a n d that such legal services are expressly o utside the scope of se rv ices contemplated hereu nd er . CONTRACTOR und ersta nds that pursuant to Huntington Beach City Cha rter Section 309, the City Attorney is the exc lus ive lega l counsel fo r CITY; and CITY sha ll not be liable for paymen t of any legal services expe nses in c urred by CONTRACTOR. 38. ATTORNEY'S FEES In the eve n t suit is brought by e ither party to construe, interpret a nd/o r e n fo rce the terms a nd/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shal l not be entitled to recover it s attorney's fees fro m th e non-prevailing party. 39. INTERPRETATION or THIS AGREE MENT T he language of all parts of th is Agreement sh all in all cases be constrned as a who le, according to its fair m ea ning, and n ot strictl y for or agai n st any of the parties. Jf any prov isio n of thi s Agreement is he ld by an arbitra tor o r court of competent jurisdiction to be unenforceable, vo id, ill ega l or invalid , s uch ho ld ing sha ll not invalidate or affect the rema ini ng covenants and prov is ions of this Ag reement. No covenant or provision sha ll be deemed dependent up on any ot he r unl ess so expressly provided h e re. As use d in th is Agreement, the m ascu lin e o r neuter ge nd er and s ing u la r o r plural numb er s h a ll be deemed to include the other whenever the 22 16-5195/C ity Funded Construct io n Contract.cl ocx -revised 04/20 16 501 co n text so ind icates o r req uires. Nothin g co nta in ed he re in s ha ll be co ns trued so as to requ ire the co m m iss io n of any act contrary to law, and w hereve r th e re is any con fli ct between an y prov ision co nta ined h ere in a nd a n y presen t or future statute, law, ord inance or regul at ion contrary to wh ich the parties have no ri ght to contract, t he n the latter s ha ll prevai l, and th e prov is ion of thi s Ag ree m e n t w hi c h is he re b y affected s ha ll be c urta il ed a nd li m ited o nl y to th e ex te nt n ecessa r y to bring it wi th in the req u iremen ts of th e law. 40. GOVERN LNG LAW This Agree m e n t sha ll be govern ed and co nstrued in accordance \.Vith t he laws of the State of Ca li fo rni a. 4 1. DUP LI CATE OR IGINAL The o r igina l of th is Agree ment and one o r more copies hereto have been prepared an d s igned in co un te rparts as du p li cate o r ig ina ls, each of w hi c h so exec u ted s ha ll , irrespecti ve of the d ate of its execu t ion a nd de livery, be deemed a n orig in al. Each d u plicate o ri g inal s ha ll be deemed an o ri ginal inst r umen t as against any party w ho has signed it. 42. CONSENT W he re CITY 's co nse n t/ap p rova l 1s req uired un de r th is Agreeme nt, its co nsen t/approva l fo r one tra nsact io n or even t sha ll not be dee med to be co nsen t/approval to any subseq uent occurrence o f the same o r any o ther transaction or event. 43. SU RVfVAL Te rm s a nd cond it ions of this Agreeme nt , which by th e ir sense and context survive the ex pi rati o n o r te rm inat io n of th is Agreement s ha ll so sur v ive. 44 . MO D IF ICATION No wa ive r o r modificat io n of a n y la n g u age in th is Ag ree m e nt s hall be va lid unl ess in wr it ing a nd d u ly executed by both pa rties. 23 16-5195/C ity Funded Co nstruction Co ntrnct.docx -rev ised 04/2016 502 45. SIGNATORIES Each undersi g ned represents and warrants that its s ignature h e reinbelow has the power, authority and right to bind their respective part ies to each of th e terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not , in fact, held by the signatory or is withdrawn. 46. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement free ly and vo lu ntari ly fol lO'vving extensive arm's length ne go tiation, and that each ha s had the o pportunity to consu lt with legal co unsel prior to executing this Agreement. The parti es a lso acknowledge and agree that no representations, inducements , promi ses, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party ha s not executed t hi s Agreement in reliance on any representation, inducement, promise , agreement, warranty, fact o r circum s tance not expressly set forth in this Agreement. This Agreement, and the attached Exhibit "A", conta in the entire agreement betwee n the parties respectin g the subject matter of thi s Agreement, a nd supersede al l prior under sta ndings and agreements whether oral or in \.Vriting between the parties respecting th e subject matter hereof. 24 16-5195/City r unded Construction Co ntract.docx -revised 04/2016 503 IN WITNESS WHEREOF, th e parties hereto have caused this Agreement to be executed by and through their authorized officers on ________ , 20 __ CONTRACTOR: By:------------- (print name) ITS: Chairman / Pres ident/ Vice-Pres ident (circle one) AND By: _______________ _ CITY OF HUN TINGTON BEACH, a municipa l corporat ion of the State of Ca lifornia Mayor City C lerk INITIATED AN~ ~filOffulilic Works (print name) REVIEWED AND APPROVED: ITS: Sec retary / Chief Financial Officer / Asst. Secretary / Treasurer (c ircle one) Ci ty Manager APPROVED AS TO FORM: " f»~ 25 16-5 195/City Funded Construction Contract.docx -revised 04/20 16 (}-,, City Attorney 504 IN WITNESS WHEREOF, the part ies hereto have caused thi s Agree ment to be executed by and through their aut ho rized officers on , 20 __ ------- Michael Walton (print nam e) ITS: Chairman~ Vice-President (circle one) Kim Nuli ck CITY OF HUNTINGTON BEACH, a muni cipa l corporation of the State of Ca lifornia Mayor C ity Clerk INITIA'~E7 ~ Director of Pub li c Works (prin t name) REVIEWED AND APPROVED: ITS : Secretary / C hi ef Financial Officer / Asst. Sec retary/ Treasurer (circle one) City Manager APPROVED AS TO FORM: " r~~ 25 16-5 195/C ity Funded Construct ion Contract.docx -revised 04/20 16 [!,.,, City Attorney Oak View Branch Library Roof Restoration CC-1912 July 21, 2026 City Council Meeting 505 Project Overview •The Oak View Branch Library is temporary structure comprising nine (9)portable units. The Library’s four (4) heat pump package units were scheduled in the FY 2025/26 list of replacements. The units were not replaced due to the existing condition of the roof, which includes leaks. •The proposed project will include removing the existing roof surface, existing sealants, unrestorable wood, and peeling paint. The entire roof will be recoated, wood replaced, new gutters, condensation lines redirected, and sealants reapplied in a cohesive system. 506 Analysis •Once the roof project is completed the scheduled heat pump package units will be installed. The roof’s recoating system specifies a 10-year installation warranty, a 2-year manufacturer inspection warranty, and a 1-year Maintenance Bond. •Staff directly reached out to local, qualified, and licensed roofing contractors,advertised the project in the Huntington Beach Wave, and advertised and managed proposals on PlanetBids. A job walkthrough was publicly advertised for May 26, 2026, with eighteen (18) firms in attendance. 507 Funding $ 97,000.00 $ 9,700.00 $ 1,090.35 $ 107,790.35 $ 107,790.35 $ 107,790.35 Construction Costs •Universal Coatings, Inc. Bid: •Construction Contingency (10%) •Supplemental Costs: Current Funding •Infrastructure Fund: 508 Questions? 509 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-636 MEETING DATE:7/21/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Travis Hopkins, City Manager VIA:Marissa Sur, Assistant City Manager PREPARED BY:Veronica Navarro-Martinez, Human Resources Manager Subject: Approve the Appointment of Zack Zithisakthanakul to the Position of Chief Financial Officer and Authorize the City Manager to Execute the Employment Agreement Statement of Issue: The Chief Financial Officer position was vacated on August 30, 2024, following the resignation of the former Chief Financial Officer. The position was filled by Interim Retired Annuitant appointments while the City conducted a recruitment process to find a permanent replacement. Zack Zithisakthanakul was appointed Acting Chief Financial Officer in December 2025. Financial Impact: Funding is included in the FY 2026-2027 budget. Recommended Action: Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Zack Zithisakthanakul” for the position of Chief Financial Officer. Alternative Action(s): Do not approve the appointment and direct the City Manager to conduct a new recruitment process. Analysis: The position of Chief Financial Officer has been vacant since August 2024, due to the resignation of the former incumbent. To maintain the integrity of the City’s services and to provide continued executive support to the Finance Department, the position was filled by Interim Retired Annuitant appointments while the City conducted a recruitment process. In December 2025, Zack Zithisakthanakul was appointed Acting Chief Financial Officer. The City Manager recommends City Council approval to appoint Zack Zithisakthanakul to the position of Chief Financial Officer, effective August 1, 2026. City of Huntington Beach Printed on 7/15/2026Page 1 of 2 510 File #:26-636 MEETING DATE:7/21/2026 Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Zack Zithisakthanakul Employment Agreement 2. Zack Zithisakthanakul Resume 3. PowerPoint Presentation City of Huntington Beach Printed on 7/15/2026Page 2 of 2 511 512 EMPLOYMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND ZACK ZITHISAKTHANAKUL THIS AGREEMENT is entered into this __ day of ______ , 2026, between the City of Huntington Beach, a California municipal corporation, hereinafter "City," and Zack Zithisakthanakul, hereinafter "Zithisakthanakul." WITNESSETH WHEREAS, the City Manager has been empowered to appoint and remove department heads; and WHEREAS, the City, through the City Manager, desires to employ the services of Zithisakthanakul as Chief Financial Officer for the City of Huntington Beach; and WHEREAS, the City seeks to provide certain benefits, establish certain conditions of employment, and to set working conditions of Zithisakthanakul; and WHEREAS, the City intends to: (1) Secure, retain and employ the services of Zithisakthanakul; and (2) Zithisakthanakul intends to accept employment as Chief Finance Officer; NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: SECTION 1. DUTIES. The City agrees to employ Zithisakthanakul as Chief Financial Officer for the City to perform the functions and duties of that office as set forth in the Municipal Code of the City of Huntington Beach and the City Charter, and to perform other duties and functions as the City Manager shall from time to time assign. Zithisakthanakul shall devote his full attention and effort to the office and perform the mentioned duties and functions in a professional manner. 1 Zack Zithisakthanakul-Employment Agreement-2026 513 SECTION 2. STATUS AND TERM. (a) Zithisakthanakul shall serve for an indefinite term at the pleasure of the City Manager and shall be considered an at-will employee of the City. (b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Manager to terminate the employment of Zithisakthanakul at any time, subject only to the provisions set forth in Section 6, subparagraphs (a), (b) and (c) of this Agreement, and Section 401 of the Charter of the City of Huntington Beach. ( c) Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Zithisakthanakul to resign at any time from his position with the City, subject only to the provisions set forth in Section 6, subparagraph ( d), of this Agreement. ( d) Zithisakthanakul agrees to remain in the exclusive employ of City for an indefinite period of time and shall neither accept other employment or become employed by any other employer without the prior written approval of the City Manager until notice of Zithisakthanakul 's resignation is given. The term "employed" (and derivations of that term as used in the preceding paragraph) shall include employment by another legal entity or self-employment, however, shall not be construed to include occasional teaching, writing, consulting, or military reserve service performed on Zithisakthanakul's time off, and with the advance approval of the City Manager. SECTION 3. SALARY. City agrees to pay Zithisakthanakul for his services rendered pursuant to this Agreement based upon the Non-Associated Appointed Salary Schedule at Range 272, Step E ($104.013/hourly) of the City's classification and compensation plan or Resolutions or Ordinances from time to time enacted that govern such compensation. 2 Zack Zithisakthanakul-Employment Agreement-2026 514 SECTION 4. OTHER BENEFITS. In addition to the foregoing benefits, Zithisakthanakul shall also receive all such other benefits that are generally applicable to non-associated employees (Department Heads) hired after 12/27/97, as set forth in Huntington Beach City Council Resolution No. 2016-50, entitled ''A Resolution Of The City Council 0/The City Of Huntington Beach lvfod/fj1ing Salary And Benefits For Non-Represented Employees Including The Elected City Attorney, City Clerk, And City Treasurer", a copy of which is attached hereto as Exhibit "A" and incorporated by reference as fully set forth herein. Zithisakthanakul shall also be eligible for a cell-phone stipend (Smaitphone) in the amount of $50.00 per month, paid bi-weekly. The benefits provided to Zithisakthanakul pursuant to this Section may be modified by the City from time to time, upon adoption of a successor Resolution. SECTION 5. ADMINISTRATIVE LEA VE. The City Manager may place Zithisakthanakul on Administrative Leave with full pay and benefits at any time during the term of this Agreement. SECTION 6. TERMINATION AND SEVERANCE PAY. (a) Except as provided in subsection (b), in the event the City Manager terminates the employment of Zithisakthanakul, and during such time that Zithisakthanakul is willing and able to perform his duties under this Agreement, then City shall pay to Zithisakthanakul a severance payment equal to salary payments which Zithisakthanakul would have been receiving over a twelve week period at Zithisakthanakul's current rate of pay in effect on the day prior to the date of termination. In addition, for the lesser of ninety (90) calendar days after the date of termination or the time Zithisakthanakul secures health and medical insurance through comparable employment, the City shall maintain and pay for health, medical, disability, the continuation of retirement benefits and life insurance in such amounts and on such terms as have been received by 3 Zack ZithisakthanakulM Employment AgreementM2026 515 Zithisakthanakul and Zithisakthanakul's dependents at the time of such termination; however, no other or additional benefits shall accrue during this ninety (90) calendar-day period. (b)(l) Notwithstanding subsection (a) above, the following reasons shall constitute grounds to terminate the employment of Zithisakthanakul without severance pay: (i) a willful breach of this agreement or the willful and repeated neglect by Zithisakthanakul to perform duties that he is required to perform; (ii) conviction of any criminal act relating to employment with the City; (iii) conviction of a felony. (2) Prior to the time that the City Manager terminates Zithisakthanakul without severance pay for any of the reasons set forth in Section (b )(I) above, and only in that case, the City Manager shall provide Zithisakthanakul with written notice of proposed termination which will include the reason and factual basis for termination. Within ten days of such notice, Zithisakthanakul may request an opportunity to respond to the reasons and factual basis provided by the City Manager. If such a request to respond is made, the City Manager shall conduct a meeting, which may be informal in nature, that Zithisakthanakul may respond to the notice of proposed termination. At such meeting, Zithisakthanakul may be represented by an attorney of his choice and present evidence or information relevant to the reasons and factual basis set forth in the notice of proposed termination. Subsequently, the decision of the City Manager as to whether reasons set forth in Section (b)(I) exist or do not exist shall be final as between the parties. ( c) In the event the City at any time during the term of this Agreement, reduces the salary of Zithisakthanakul from its current level, except as part of an across-the-board reduction for all Directors of City, or in the event City refuses, following written notice, to extend to Zithisakthanakul any non-salary benefit customarily available to all Directors, or in the event Zithisakthanakul resigns following a suggestion, whether formal or informal, by the City Manager that he resign, then, Zithisakthanakul may, at his option, be deemed to be "terminated". The termination date will occur then at the date of reduction or refusal to extend or such suggestion of 4 Zack Zithisakthmmkul-Employment Agreement-2026 516 resignation within the meaning and context of the severance pay provision in subparagraph (a) above; provided that the option to be deemed terminated is exercised by written notice from Zithisakthanakul and delivered to the City Manager within ten (10) working days of notification of such reduction, refusal to extend, or suggestion of resignation. In that event, the severance payment shall be calculated from the date Zithisakthanakul exercises the option to be deemed terminated. ( d) In the event Zithisakthanakul voluntarily resigns his position, Zithisakthanakul shall give City written notice at least sixty (60) days prior to the last workday, unless the City Manager and Zithisakthanakul otherwise agree. ( e) It is understood that after notice of termination in any form, Zithisakthanakul and the City will cooperate to provide for an orderly transition. Specific responsibilities during such transition may be specified in a written separation agreement. SECTION 7. DISABILITY. If Zithisakthanakul is medically, physically disabled or otherwise unable to perform his duties because of sickness, accident, injmy, mental incapacity or ill health, and has provided proof of the same from a medical professional, he shall be eligible for Disability Leave upon exhausting all accrued sick leave, general leave and executive leave, and duty injmy leave if applicable. Disability Leave shall be unpaid and shall be approved by the City Manager for a time period of up to three (3) months. The length of such time period of the Disability Leave shall be dependent upon the length of the disability as demonstrated by Zithisakthanakul. If Zithisakthanakul is unable to return to work at that time, the City shall have the option to terminate the employment of Zithisakthanakul, subject to the requirements imposed on City by Section 6, paragraph (a). SECTION 8. PERFORMANCE EVALUATION. 5 Zack Zithisakthanakul-Employment Agreement-2026 517 The City Manager shall review and evaluate in writing the performance ofZithisakthanakul at least once annually. That review and evaluation shall be in accordance with specific criteria developed in consultation with Zithisakthanakul and the City Manager. Those criteria may be added to or subtracted from as the City Manager may from time to time determine, in consultation with Zithisakthanakul. SECTION 9. GENERAL AND EXECUTIVE LEA VE Zithisakthanakul shall accrue General Leave in accordance with the General Leave accrual provisions applicable to Department Heads of the City as contained in the Non-Associated Resolution (Exhibit "A") with Zithisakthanakul starting with Fifth through Ninth Year years of service accrual. Zithisakthanakul shall be credited 80 hours of Executive Leave upon his first day of employment. Thereafter, Zithisakthanakul shall be credited 80 hours of Executive Leave on Januaty I of each calendar year. Executive Leave must be used in the same calendar year it is credited; unused Executive Leave may not be carried forward to the next calendar year or cashed out at any time. General Leave shall be accrued in accordance with the appropriate provisions of the Non-Associated Resolution (Exhibit "A"). Zithisakthanakul shall provide the City Manager with reasonable notice prior to taking two (2) or more General Leave or Executive Leave days off. SECTION 10. PROFESSIONAL DEVELOPMENT. The City agrees to budget and pay for Zithisakthanakul' s professional memberships as normally accorded to Department Heads. Zithisakthanakul shall also receive paid leave, plus registration, travel and reasonable expenses for short courses, conferences and seminars that are necessaty for professional/personal development and, in the judgment of the City Manager, for the good of the City, and subject to budget limitations and to established travel policies and procedures. 6 Zack Zithisakthanakul~ Employment Agreement~2026 518 SECTION 11. FINANCIAL DISCLOSURE. Zithisakthanakul shall report to the City Manager any ownership interest in real property within the County of Orange, excluding personal residence. Zithisakthanakul shall also complete and file annually, Financial Disclosure 700 Forms. Also, Zithisakthanakul shall report to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for City or from which City intends to make a purchase. Such reporting shall be made in writing by Zithisakthanakul to the City Manager within ten (I 0) calendar days of the execution of this agreement and within ten (10) calendar days of acquisition of that interest in real property. Additionally, Zithisakthanakul shall report in writing to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for the City or from whom the City intends to make a purchase immediately upon notice of the intended work or purchase. SECTION 12. INDEMNIFICATION. The City shall defend and indemnify Zithisakthanakul against actions, including but not limited to any: tort, professional liability claim or demand, or other non-criminal legal, equitable or administrative action, arising out of an alleged act or omission occurring in the performance of Zithisakthanakul during the discharge of his duties as an employee/officer of the City, other than an action brought by the City against Zithisakthanakul, or an action filed against the City by Zithisakthanakul. The City shall pay the reasonable expenses for the travel, lodging, meals, and lost work time of Zithisakthanakul should Zithisakthanakul be subject to such, should an action be pending after termination of Zithisakthanakul. The City shall be responsible for and have authority to compromise and settle any action, with prior consultation with Zithisakthanakul, and pay the amount of any settlement or judgment rendered on that action. Zithisakthanakul shall cooperate fully with the City in the settlement, compromise, preparation of the defense, or trial of any such action. 7 Zack Zithisakthanakul~ Employment Agreement~2026 519 SECTION 13. GENERAL PROVISIONS. (a) The text herein shall constitute the entire Agreement between the parties. (b) This Agreement shall become effective commencing August 1, 2026. ( c) If any provision, or any portion of any provision, contained in this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or any portion of it, shall be deemed severable, shall not be affected and shall remain in full force and effect. (d) No amendment of this Agreement shall be effective unless in writing and signed by both parties. IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on its behalf by its City Manager, and Zithisakthanakul has signed and executed this Agreement, both in duplicate, the day and year first above written. CITY: ZITHISAKTHANAKUL: Travis Hopkins, City Manager Zack Zithisakthanakul APPROVED AS TO FORM: Michael Vigliotta, City Attorney 8 Zack Zithisakthanakul-Employment Agreement-2026 Zack Zithisakthanakul, CPA Professional License & Education Certified Public Accountant, California #149727 Biola University, Master of Professional Accountancy Relevant Work Experience City of Huntington Beach Huntington Beach, CA Acting Chief Financial Officer December 2025 – Present  Successfully led the development and adoption of the City’s fiscal year 2026/27 operating and capital budget, coordinating with executive management, departments, Finance Commission, and City Council.  Served as a member of the City’s labor negotiations team, leading financial costing and fiscal impact analysis for multiple bargaining units.  Advised the City Manager, executive leadership, Finance Commission, and City Council on fiscal policy, budget strategy, debt management, reserve planning, and other complex financial matters.  Managed the Finance Department’s core operations, including budget, accounting, payroll, accounts payable, procurement, business license, and utility billing.  Oversaw and implemented citywide financial initiatives and policy updates.  Directed Finance Department operations during a period of executive transition while maintaining continuity of financial services and strategic initiatives.  Prepared and presented complex financial analyses, staff reports, and recommendations to the City Council and Finance Commission. Assistant Chief Financial Officer August 2025 – Present  Direct and oversee citywide financial operations including budget, business license, payroll, accounting and financial reporting to ensure compliance with GASB, GAAP, and State/Federal regulations.  Advise the Interim Chief Financial Officer, City Manager, and executive leadership on long-term financial planning, fiscal policy, and strategic use of resources.  Lead the development of the Annual Comprehensive Financial Report (ACFR), budget documents, and financial presentations to Finance Commission.  Manage internal and external audits, coordinate responses to audit findings, and ensure implementation of corrective actions.  Oversee development and monitoring of city-wide financial policies, internal control systems, and process improvements to enhance efficiency and transparency.  Supervise and mentor division managers and processional staff across accounting, budget, payroll, procurement, and accounts payable/receivable division. Finance Manager August 2022 – August 2025  Led the accounting division, supervising a team of seven staff across accounting and accounts payable/receivable staff.  Managed preparation of complex financial reports including the ACFR, PAFR, and State Controller’s Annual Report.  Oversaw journal entries, reconciliation, and accounting for debt issuance, debt refunding, capital assets, and other high-level transactions.  Ensured integrity of the general ledger and monitored modifications to the chart of accounts.  Conducted internal control reviews and collaborated across departments to implement GASB 87 lease accounting. Principal Finance Analyst June 2021 – August 2022  Performed advanced financial analysis, reporting, and audit preparation for the Finance Department.  Supported accounting system integrity and implementation of new reporting standards.  Prepared journal entries, reconciliations, and internal control assessments.  Promoted to Finance Manager in August 2022 for strong performance and leadership. Haskell & White LLP Irvine, CA Experienced Associate, Audit January 2021 – April 2021 Davis Farr LLP Irvine, CA Senior Auditor January 2018 – December 2020 Conrad LLP Lake Forest, CA Junior Audit Associate May 2017 – December 2017 520 Chief Financial Officer Employment Agreement July 15, 2026 521 Contract Overview • Compensation: Placement at Step E of the Non-Associated Executive Management Salary Schedule • Benefits: Benefits available to City’s executive staff, per Non- Associated Resolution 522 Questions? 523 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:26-638 MEETING DATE:7/21/2026 Subject: Item submitted by Councilman Don Kennedy, Mayor Casey McKeon, and Councilman Pat Burns - America 250 Plaque at Pier Plaza Recommended Action: Set aside Resolution No. 2017-25 and direct staff to create the engraving template for review by Councilmembers Kennedy, Burns and McKeon, with final draft brought forward for vote on the August 18th City Council Meeting for the monument in Pier Plaza to commemorate the Huntington Beach America 250 Celebrations. Attachment(s): 1. America 250 Plaque - Kennedy McKeon Burns Memo City of Huntington Beach Printed on 7/15/2026Page 1 of 1 524 City Council Meeting – Council Member Items Report To: City Council From: Councilman Don Kennedy Mayor Casey McKeon Councilman Pat Burns Date: July 21 , 2026 Subject: PROPOSAL FOR INSTALLATION OF COMMEMORATIVE AMERICA SEMIQUINCENTENNIAL PLAQUE AT PIER PLAZA MONUMENT 2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov ISSUE STATEMENT The City of Huntington Beach is Celebrating America’s 250th birthday through many events throughout the year. To properly memorialize the Huntington Beach America Semiquincentennial celebration, we propose engraving one of the black rectangles at the Pier Plaza monument. Inscription to include: The Huntington Beach America 250 Logo near the top. “Huntington Beach celebrates the historic moment of America’s 250th Birthday. A patriotic City proudly honoring and thanking all those who served our great nation, who remind us that Freedom Is Not Free” RECOMMENDED ACTION Set aside Resolution No. 2017-25 and direct staff to create the engraving template for review by Councilmembers Kennedy, Burns and McKeon, with final draft brought forward for vote on the August 18th City Council Meeting for the monument in Pier Plaza to commemorate the Huntington Beach America 250 Celebrations. ENVIRONMENTAL STATUS Not Applicable STRATEGIC PLAN GOAL Non Applicable - Administrative Item 525 CITY OF . HUNTINGTON BEACH